Price quotations what, why and how

Price quotation are very important for almost any type of business. From the self-employed, a small business or a billion-dollar corporation, everybody uses them in order to set a price for their products or services before any business happens!

What is a quotation?

It is a document that provides a potential client with vital information about a project or job that they have requested. Some businesses will prefer short quotations and others, longer ones. But they all have these key points in common:

• They all include all the products or services in scope
• People like details If possible include all the necessary information and data about the product or service that you provide! (in that way you will avoid misunderstandings and lots of e-mails requesting further information about the products)
• The cost of the products or services that you're offering
• Terms and conditions that may apply
• Tell them about your company. Why not pitch some of your strong points?

Why are price quotations important?

Even though not everybody uses them formally, they are tools that are essential!

Close deals faster

With these documents you can close a deal fast, as a professional and good looking quotation can validate the image of your business, cutting you a lot of time and a more than fair chance to sign a contract with no further fuss.

Have a higher conversion rate

A well-structured quotation stands out on its own! And it also provides your prospect with transparent information about your products and services. If you can include pictures or even links to videos or testimonials will have a massive impact on your conversion rates!

Increase trust with new and existing customers

When making business for the first time with someone there are always a lot of unanswered questions and a certain level of mistrust between the parties. This of course fueled by the fact that a prospect will most certainly have a 2nd or 3rd choice when it comes to purchasing something! So by having a clear and concrete quotation template that is transparent and look professional you may just stepped a couple of stairs above your competition, because you give a feeling of stability and professionalism to them!

How to create the perfect quotation?

It is important to know that your price quotation should be easy to follow for your potential clients in order for them to agree to its contents.

The header

Include yours and theirs business details

• Business name
• Date
• Contact details
• Name of recipient and sender
• Pitch your strong points!

The main body

If you sell products:

• Product title
• Product code/SKU (to avoid any misunderstandings)
• Product picture (make sure it is of good quality)
• Technical specifications (even the 3 most important are fine)
• Product description - how and why is your product better than another one
• Price breakdown - include the list price, discount (if applied), and any other taxes that may be included for that product

If you sell services

• Service name
• Service general scope
• Price breakdown
• Other important information you would like to tell (deadlines or necessary stuff in order to make the service viable)

The summary

Many readers may skip straight to this part. So make sure everything is perfect.

• A thank you message is always appreciated
• Terms and conditions
• Total price
• Total discount (if applied)
• Value added tax (if applied)
• Additional costs or taxes
• A call to action

If you want to have even more conversion, add things like these to your summary:

• A personal photo - that way you can make sure they remember you
• Your company logo and motto
• Your website or link to testimonials for example (build that trust and traffic)

  

A very easy way to create your price quotations

With OptiOffer, it only takes a couple of minutes to create professional-looking quotes and send them to your leads! See our written guide on how to create quotations, or simply watch our five-minute video.