Small businesses in India can poach clients if they know how to make quotation that works for their business. Not many business owners realize that the way they create quotations can cost them business. They fail to follow-up on quotes or turn them around faster, which results in loss of revenue.
Healthy cash flow and converting invoices into payment are some of the top financial challenges faced by the SME’s. Working efficiently on the quotation processes can immediately rid businesses of the delayed client’s acceptance. Simultaneously it helps businesses get paid faster, improving the cash flow.
So, having your hands-on with creating quotation which your clients accept can make all the difference. Imprezz.in, the best accounting software in India, can help you create captivating, professional quotes that your clients can’t ignore.
In this article, we coupled a comprehensive guide on how to make a quotation which your clients accept.
What is a Quotation?
A quotation is a document that businesses send clients to offer their goods and services at a specified rate and conditions. Alternately, quotes provide an estimation for projects.
Quotations aren’t a legally binding document unless they are specified as an official part of a contract. However, once the client accepts the quote, they are committed to that particular sale at specified rates.
When Should Businesses Send a Quotation?
Usually, businesses are asked to send quotations by clients interested in knowing about the goods or services precisely before purchasing them.
It is crucial to send quotations within a few hours from the requested time. Customers interested in buying a particular product, request quotes from several businesses—the one to send quotes at the earliest wins.
At the same time, businesses must be quick enough to calculate costs and profit margins accurately. Automate quotation processes to avoid sending faulty sales quotes to your clients. Do not offer unrealistic prices as a quote is not a legally binding document.
How to Make Quotation which Your Clients Accept – 8 Simple Steps
A quotation can either be a document with specified rates or a verbal proposal. Creating quotes and effectively managing quotation processes is vital for businesses to land on potential clients.
By automating quotation processes, you can quickly generate new businesses. It can stimulate the overall business growth. Here are 8 simple steps to create a quotation that clients accept.
1. Select an Imposing Template
Creating quotations is a learning process. Using a standardized quotation format makes it more professional and impressive. You can make comprehensive quotations, customize details with templates that your clients will love.
There are several sales quotes templates available on an online quotation creator. Mostly businesses in India use bookkeeping or online accounting software to generate sales quotes.
You can also send estimates with approximate prices through accounting software. Imprezz offers an estimating feature that enables you to generate estimate quotations in the cloud. You can directly send it to clients via email. The Feature allows your clients to approve quotes automatically.
2. Add Client Information
A detailed quote provides a better understanding of your products and services. You need to include the following information to make your quotes look more professional.
- Business Name
- Company Address
- Contact Number
- Fax Number (If any)
- Email Address
- Contact Name and Title
That said, do not forget to mention your contact details in the quotation.
3. Add Quote Number
If you use accounting software for creating quotations, it automatically generates a quotation number for you. However, the software must provide features to edit the quote number when required.
4. Enter the Date of Issue
The date of the issue specifies the date on which you send the quotation to your client. Including the “date of issue” is vital since a quote is usually valid for a limited time.
You can also mention the validity of your quote. However, you can extend or decrease the quoted time if you prefer doing it.
5. Include Your Products and Services
Enter the products or services you are quoting under “line items”. It is always ideal to describe the items, product number, quantity, unit price, and total amount per item.
Divide the products and services concerning the different stages of a project. You can also separate labor and material charges. Imprezz offers you quotation templates that are specific to your industry.
The image below demonstrates the pre-build Imprezz quotation templates that are uniquely designed concerning the different industry-types.
Organize the cost breakdown. Do not include any information irrelevant to the project. Sum up the costs and add your subtotal. Not to forget, add tax amount on the total if applicable.
6. Mention the Terms and Conditions
Mentioning terms and conditions allows you to specify possible variations of a project. As a freelancer or a small business, you need to explain the additional charges applicable to the product. Explain the conditions under which additional charges are applicable.
Mention how and when you want to be paid for the project. Add payment modes and details. Mention in prior if you expect an advance deposit for the project. You can specify if you’d like full payment on completion or half up front, and a half after the project is completed.
7. Include Notes
You can include any additional information in the notes. It is an ideal place to add information regarding the time and anticipated completion date. Summarize the scope of your project, thank your client for the opportunity and let them know you are waiting to work with them.
8. Add Optional Details
You may not want to include specific information in your quotations. However, it is a good idea to include some optional details. You can add the following elements in your quotes.
- Purchase Order Number (The one you receive from the client)
- GSTIN – Your Sales Tax Number
Check the spellings and grammatical accuracy of your quotation. Make sure that all your calculations are accurate. Once you have completed all the steps mentioned above, you can email the quote to your client.
The image below demonstrates the mailing feature available on Imprezz.in. Once you complete creating a quotation, you can directly mail it to your client on Imprezz accounting software.
How to Format Quotations
There are no legal regulations to format a quote. However, you can implement some basic formatting while creating a quote. Most businesses prefer using quotation formats similar to their invoice formats.
If your accounting software offers features to create quotations and invoices under the same platform, it is a win-win situation.
The image below demonstrates the single dashboard feature of Imprezz.in where you can create standardized quotations, tailored quotes, and GST ready invoices under the same platform.
It is mandatory to choose a template that specifies “Quotation” or “Quote.” It enables your client to differentiate the quotation from other documents.
It is crucial to have the date, quotation number, customer information mentioned at the top. You can then enter the product details and price. Always have your business information mentioned at the bottom of the quotation template.
Make sure you create quotations that are easy to read, use clear fonts, and layout. Add your company logo to personalize the quotation format. Always remember that your logo must reflect your brand.
Even when you are mailing the quotation, make sure your quotation looks impressive when printed. Some customers might want to keep a printed record. Make sure that your quote fits within an A4 – size sheet. Attach files separately if required.
You can automate all your quotations processes through an online quote maker. It makes it easier to create compelling quotations. Also, it helps you keep track of quotes sent to the customer.
Quotations v/s Proforma Invoices
For any business, it is crucial to understand the difference between a proforma invoice and a quotation. A proforma invoice is a nonofficial document sent to a client before confirming the project’s final details.
Businesses usually use a proforma invoice at the same point in the sales process as that of a quotation. However, a proforma invoice and quotation are set out for different purposes. A quote is generally sent to a client in reply to an inquiry. When a client requests for further details, a proforma invoice is sent.
In a nutshell, quotations are sent to poach clients, and proforma invoice is sent once the client has committed to purchase. Proforma invoices used as businesses cannot send an actual invoice when the sale is still uncertain.
Quick Tips on How to Make Quotation Which Your Clients Accept
- Construct your sales quote precisely
- Send a quote within 24 hours
- Insert a quoting engine on your website
- Follow up frequently after sending a quotation
- Always ask questions to your potential customers and learn from mistakes
Creating Quotes Made Easier with Imprezz.in
Managing your finances through spreadsheets can be stressful. It curbs the business accounting workflow. It is vital to have access to all your financial data at your fingertips.
With Imprezz.in, you can see the summary of quotes in progress. You can see whether it is a draft, sent, accepted, or expired quote. With Imprezz, it is easy to track your quotes, automate the follow-up procedures, and keep your business on track.
You can automate quotation processes on Imprezz.in. Create a quotation in just a few clicks. Worry no more, send standardized quotes with no hassles.
The image below demonstrates the standardized quotation template which includes all the key considerations mentioned in the article above.
Sales is not necessarily a complicated process. Know what is your unique selling point, add an ideal price on your product or services, and sell. It’s that easy!
Never compete with other bids. Try to work out what you need to authenticate your project. Then add your margins accordingly.
We hope that our extensive guide on how to make a quotation that your client accepts has helped you.
Are you looking for accounting software to automate your bookkeeping tasks? Create quotations in no time with Imprezz.in. We offer a 14 days free trial software program for small businesses in India. Start right away!