Quotations commit you to the price you specify, so they are usually used when:
– The work you are quoting for has clear requirements in terms of time, labour, materials, etc;
– Your costs are stable;
– You are confident the work won’t turn out to be more complicated than expected;
It’s good practice to give your customers a written quotation. This should include:
– Overall price;
– Breakdown of the components of the price, indicating what is covered and what is not;
– Period the quotation is valid for;
– Schedule for when the work will be done or products delivered;
– Full contact details of your business;
– Payment terms or schedule;
– How any modifications or changes the customer requests will be controlled and priced once the project is underway.
It’s also advisable to get your customer’s written confirmation that they are happy with the price you havequoted and the work that this includes. This should be done before you carry out the work, or provide the goods or services. If the job changes substantially after you start work, it’s a good idea to revise your quotation and get it agreed before you finish the job.
Computer software can be used to help you determine the costs involved in any work for which you
are drawing up a quotation. Specialist software packages include Sage 50 Job Costing, but many other
accounting and spreadsheet packages can be used for this.
– Give written quotation;
– Get written confirmation before you carry out work;
– Always have the option to revise your quotation;
– Agree all changes before you finish the job.