When you're in a service-oriented business, you need to know how to write a quote for a job in a way that appeals to potential customers. Whether you're bidding on a commercial cleaning contract or a residential landscaping job, your quote is often the first formal point of interaction with a prospective client. The quality of that estimate can determine whether you win the job or lose out to a competitor.
In this article, we will look at how to quote for work in a way in that builds trust and conveys professionalism, and cover the following topics:
By the end, you'll have a solid foundation for creating winning job quotes that can elevate your business. If that sounds good, let's begin.
The Importance of a Good Job Estimate
When you're quoting for work, you're not just giving a price tag - you're providing a detailed proposal that outlines the scope of work, materials, labor, and any unique considerations for a project.
The Benefits of a Good Quote
A good job estimate will:
- Ensure you cover all costs and secure a profit margin
- Manage client expectations with a clear, detailed outline of exactly what will be done
- Enhance your professional image and increase your chance of winning bids
Common Pitfalls of Poor Quoting Practices
Most seasoned tradespeople have felt the impact of a bad quote at one time or another. Common errors include:
- Underestimating, which loses you money and requires uncomfortable conversations with clients about additional costs
- Overestimating, which often puts you out of the running to win the work
- Lack of detail, which leads to misunderstandings and disputes over the scope of the work
They're all miserable situations. Luckily, they're all also avoidable if you have the right processes in place to ensure your quotes are accurate and thorough - so read on.
Components of a Professional Job Estimate
Job quotes consist of several key components, each of which plays a part in conveying professionalism and clarity. Most quotes, regardless of trade or industry, will have some or all of the following common elements:
Business Information
- Your company name and logo.
- Your company address, phone number, email, and website.
- Any relevant licenses, certifications, and/or insurance details.
Client Information
- The name of the person or business receiving the quote.
- The client's address, phone number, and email.
Quote Information
- The unique identifier (number or code) assigned to the quote, either manually or generated through your job management software, for tracking and reference purposes.
- The date when the quote was issued.
Validity Period
- How long the quote is valid (for example, 30 days from the issue date). Don't omit this - remember, over time, your costs and availability can change, and you don't want to be held to an estimate that has become unprofitable or unrealistic.
Scope of Work
- Detailed description of all the tasks and services to be performed.
- Any specific requirements or standards that will be adhered to, and any permits that will be required.
- Key activities or milestones and the estimated time to completion.
Itemized Costs
- List of materials and the cost to the client. (Depending on the nature of the job, you may choose to bundle services and materials together so you don't overwhelm your client with the minutiae. Bundling is also a great way to ensure you don't overlook consumables.)
- Breakdown of labor costs, including hourly rates and estimated hours.
- Any additional fees, such as travel, disposal, permits, or special equipment required.
Terms and Conditions
- Specify payment terms, including any deposit requirements and payment milestones.
- Detail any guarantees or warranties on work and materials.
- Provide a cancellation policy describing the terms under which you or the client can cancel the contract.
Acceptance and Next Steps
- Provide a space for the client to sign and date the quote to indicate acceptance.
- Thank the client for the opportunity to provide the quote.
- Instructions on what happens next should the client accept the quote.
- The name and contact details of the individual within your company who will serve as the client's key contact.
Quote Elements That Vary By Trade
Depending on your field, you may want to create an additional section such as Notes to capture:
- Contingency plans in the case of schedule impacts such as inclement weather or delays in permits.
- Any environmental or safety issues that must be resolved, or permits required, before work can begin.
- A follow-up schedule for recurring jobs or jobs that can only be completed in phases.
- What you are not responsible for to avoid future disputes.
You know your business best, so give it some thought as you set up your quote template.
Tip: When you're using quoting and invoicing software like ServiceM8, it's very easy to customize templates - and all of those elements are included for you.
Building Your Quote
Effective quoting begins with gathering accurate and comprehensive information. This involves thorough client consultations and, if needed, site assessments.
Gathering Information
Start by asking all the right questions to gather all of the necessary details.
- What are the job specifics?
- Are there any site-specific challenges?
- What materials and specifications are required?
- What is the client's budget and timeline?
Of course, this will depend on the job. In some cases, a simple form on a website will give you enough information to let you to proceed with a quote without needing to speak to the prospect directly.
Example 1: A cleaning service business could use an online request-for-quote form to gather customer information and job details. The business could then respond with an initial quote and service options - and even to let them accept and book a time.
Conduct an Onsite Visit
In most cases, though, a little more client consultation will be needed. Conducting a site visit will help you gather important details that might be missed otherwise. Measurements, site conditions, and other on-the-ground realities can significantly influence the scope and cost of the job. (If you have a mobile app that lets you create a quote on the spot, even better!)
Example 2: As an HVAC contractor, visually inspecting the ducts and existing systems will minimize surprises and ensure your quote is as accurate as possible.
Calculating Costs Accurately
Accurate cost calculation is the backbone of a reliable job estimate. You need to:
Source Materials and Obtain Accurate Prices
Maintain a list of preferred suppliers and keep your price lists up to date. Always include a markup when quoting to your client to cover not only the cost of the materials but also handling, storage, and any potential price increases. For example, if a part costs you $20, you might mark it up by 50-100%, charging the client $30-$40 to ensure profitability and cover any unexpected costs. The goal is to stay competitive while maximizing profits.
Calculate Labor Costs Based on Time and Expertise
Calculate labor costs based on the time required and the skill level of your team. High-skilled labor costs more but ensures quality and, potentially, a quicker completion. Factor in all labor-related expenses, such as travel and insurance. For big jobs, a contingency allowance (typically about 10-15% of the total project cost) can cover unexpected expenses, ensuring you’re not caught off guard financially.
Know Your Profit Margins
Get a good handle on your overhead costs like administration, utilities, and rent, and then figure out what profit margins you need to apply across all areas of your quote to ensure profitability.
Presenting a Branded, Polished Quote
Although the content of your job estimate is the most important, don't overlook the importance of presentation. In the service industry, clients typically ask for quotes from multiple suppliers. Your quote needs to be polished, error-free, and visually appealing to reflect your professionalism and attention to detail - otherwise it's easy to get relegated to the bottom of the pile when all bids are similar.
Here are some tips for presenting a professional quote:
- Simple Format, Simple Language
- Use professional quote templates that are aesthetically pleasing and easy to read, with important points highlighted. Avoid jargon and use simple, clear language. Detailed descriptions should be easily understandable by clients so if you have to include industry terms, make sure you define them.
- Brand Consistently
- Brand your quote with your company logo and colors. And, as covered in the previous section about quote elements, make sure you include all business and contact information, making it easy for clients to reach you. A well-branded document projects professionalism and can leave a lasting impression.
- Additional Information
- For certain jobs, it helps to include additional information with your quote to either showcase your work, or to help clarify options for a client. For example, a roofer may want to include a link or brochure that shows the different color options for shingles, while an electrician may want to include a picture of a room marked up where LED downlights will be installed. Little extras show that you've taken the time to consider what the prospective client may need, and you're anticipating their questions.
Enhancing your Estimates with Job Management Software
Incorporating technology into your quoting process can significantly enhance accuracy and efficiency. Job management software like ServiceM8 can not only free up your time, but boost your profits as well.
Benefits of Using Job Management Software
Integrating estimating software into your workflows can have the following benefits:
- Efficiency: When writing a quote, you don't want to prioritize speed over accuracy, but when your software can pull directly from your price lists and client information, you get the best of both worlds. Automating parts of the quoting process can help you get the quote out in a fraction of the time.
- Accuracy: With built-in calculators and bundled services, you can minimize human error and ensure that your quote is both comprehensive and accurate.
- Professionalism: You can have variations of branded templates to choose from, depending on the type of job and client, letting you generate clean, polished quotes quickly and easily.
Where ServiceM8 Stands Out
ServiceM8 quoting and invoicing software is specifically designed to help small businesses to be as efficient and productive as possible when quoting for work:
- Mobile Quote Creation
- For simple jobs, you can create a quote on the spot, right from your phone using the ServiceM8 mobile app. No need to send a quote through in the evening after you've gotten home from the onsite visit - the app makes it easy to create a quote on the fly, share it with the client, and even collect a signature of approval while you're still there!
- Auto-Quote
- ServiceM8 uses AI to analyze information available in the job card, as well as similar jobs in your work history, and then draft a work description and list of items and services for your review. In other words, it writes the quote for you - you just need to approve it before sending! For routine jobs, this is an enormously helpful productivity tool.
- Proposals
- Some jobs require a little more than your standard quote. The Proposals feature in ServiceM8 lets you add multiple choice options and photos and videos to your quotes, giving clients more detail, choice, and control in the buying process.
- Job Costing
- ServiceM8's job costing feature gives you an estimated profit or loss dollar amount on each quote before issuing. It considers the purchase price of all materials, the direct costs of labor, and the hidden costs of administration time. It's a very helpful feature to quickly ascertain which types of jobs are good for your business, and which ones are now.
- Bundles
- This feature lets you streamline your quoting practices by creating predefined packages, known as bundles, of labor, materials, and/or services with a fixed price and a single description for clients to see on your quotes and invoices. For example, a pool service business may include chemicals, test strips, and labor allocated for debris removal and water level adjustment as part of a weekly maintenance package quote.
Following Up With Clients
Once you've sent the quote, your job's not done. Following up shortly after sending the quote shows clients you want to work with them, and also gives you the opportunity to provide any clarification needed to win the business. This level of attentiveness can be the difference between winning and losing a job.
ServiceM8's Quote Follow Up Automation
With the ServiceM8 Automation add-on, you can set it up so that clients receive a quote follow-up email or text within a specific timeframe. You can even build a sequence to follow up, and use the ServiceM8 Smart Writing Assistant to generate the messages for you! For example:
- 4 hours after sending quote - send text to confirm receipt
- 3 days after sending quote - send email asking if any clarification is needed
- 7 and 14 days after sending quote - send a reminder that they have received a quote
- Final reminder that quote is set to expire
Using the follow-up automation is a great way to win more work without having to put in a lot of manual effort.
Reviewing and Improving Your Estimating Process
Quoting is an evolving process - no matter how good you are and how high your win rate may be, continuous improvement should always be the goal.
Gathering Feedback from Clients
Ask clients for feedback on your quoting process, and consider how and if you should adjust your process to account for their input. This can help you align your quotations more closely with client expectations, and to spot any areas in your business that need additional focus to be more competitive. Make sure you ask for feedback regardless of if you won the job or not - understanding why some quotes succeed while others fail can provide valuable insights.
Staying On Top Of Industry Standards and Pricing
Monitor industry standards and regularly review and update your pricing to stay competitive. Here are some actionable steps to help you stay current:
- Join Professional Associations: Becoming a member of trade associations can give you access to valuable resources, including industry reports and networking opportunities with other professionals. Talking with fellow tradies (who aren't in direct competition with you) can be a great help.
- Subscribe to Industry Publications: Sign up for newsletters, magazines, and blogs related to your trade. They often provide insights into current trends, new tools, and pricing benchmarks.
- Monitor Competitor Pricing: Regularly check the pricing of your competitors. This can be done through their websites, advertisements, or even from prospects who went with a competitor instead. (However, be confident in the value of your work and your desired profit margins, too - don't get drawn into a price war where no one ultimately wins. Some jobs, it's ok to walk away!)
The Clear Path to Winning More Jobs
Crafting winning job estimates involves understanding the basics of job estimates, gathering accurate information, calculating costs precisely, and presenting the quote professionally. By implementing these practices, and by leveraging tools like ServiceM8 that can make the quoting process more efficient and accurate, you can write great quotes and significantly improve your success rate in converting quotes to jobs.
The journey to mastering the art of job estimating begins with a single, well-crafted quote. Take the first step with help from ServiceM8 in a free, 14-day trial today.
