A quote is an offer. You are offering to supply goods or services for a certain price under certain conditions. Before you commit yourself, take into account availability, delivery times, payment options, and quantities ordered.

You can supply your quotes over the phone, by email, or in person. Quotes are usually in writing.

The binding legal contract

Once you submit a quote and make an offer to supply someone with goods or services, they only need to accept your offer to make the quote a binding legal contract.

The better your price and your terms, the more appealing your quote will be to your customers. However, don't undervalue your services or overestimate your ability to provide them.

Good quoting practices

Effective business quoting is professional, timely and accurate. Follow the rules below.

• Provide the products or services in the quantities and timeframe requested.
• Always make a profit on the sale at the quoted price.
• Ensure the price you're quoting the customer is competitive.
• Keep accurate and detailed records of the time you spend on various tasks. It might seem like a hassle at first, but it will quickly become part of your normal routine. The information is invaluable for subsequent quotes and budgeting work.
• When working out the amount of time required for a job, don't guess. Refer to precedents, or earlier comparable jobs. Other people's past work can act as precedents just as easily as your own.
• In some cases, it's appropriate to give your customers different options, such as a flat fee or an hourly rate. Make sure a flat fee option states very clearly the scope of the work and allows you plenty of time. Clients have a tendency to keep adding little bits here and there, or take their time when you've quoted a flat fee.
• Don't be afraid to renegotiate. If you've spent more hours on the job, say so. If you have a good relationship with your client, they will understand.

If you're still unsure of how to quote, download the How to quote correctly fact sheet from the Resources section of the Toolbox.