Free Quote Template

Quote or estimate: the difference matters

People use the words loosely, but customers and consumer regulators do not always. New Zealand's consumer protection guidance explains it neatly: estimates give a rough idea of the cost, while quotes are generally a confirmed maximum price. A quote is an offer to do a job for a specified price, and once the customer accepts it, the provider cannot charge more unless the customer agrees to extra work or the scope changes during the job.

So send a quote when you are confident about the scope and can commit to the price. If there are unknowns, such as what lies behind a wall or how many revisions a client will want, send an estimate instead, or quote the parts you know and estimate the rest. Prima Invoice has a separate estimate template and maker for exactly that.

What every quotation should contain

Start with identification: your business details, the customer, a unique quote number (Prima Invoice uses a QUO prefix), the issue date and the valid-until date. Then the substance: each item with quantity and price, the subtotal, any discount, tax if you charge it, and the total.

Finish with the conditions that make the price work: what is included, what is excluded, assumptions (for example, that the site is accessible and power is available), the deposit required, the payment schedule, the expected timeline, and how the customer accepts. A short, plain list beats a page of legal text that nobody reads.

Setting a validity period

Prices for materials, freight, subcontractors and your own time move. A valid-until date, commonly 14, 30 or 60 days after issue, lets you honour the quote with confidence and requote when circumstances change. The quote maker sets 30 days by default, and you can change it.

If a customer comes back after expiry, check your costs, then either reissue the same quote with a new date or send an updated one. Never quietly honour an old figure that now loses you money.

Options, tiers and alternatives

Offering choices often wins work. You can show good, better and best packages, or a base scope plus optional extras, as the sample does with the contrast-colour island. Mark optional lines clearly so the customer understands they are not included in the total unless chosen. When they accept, convert the quote and keep or remove the optional lines before invoicing.

Tiered quotes are especially effective for services like website builds, cleaning contracts, maintenance plans and photography packages, where buyers compare value rather than a single number.

Getting the quote accepted in writing

A quote becomes far more useful once acceptance is recorded. Ask the customer to reply "accepted" by email, sign and return the PDF, or pay the deposit, and say in the notes which of these counts as acceptance. Keep that confirmation with the quote. If anything changes during the job, write a short variation, priced and accepted the same way, before doing the extra work.

For larger business customers, acceptance often comes as a purchase order. Copy the PO number onto your invoice later; it is how their accounts team will match it.

From accepted quote to invoice

Retyping an accepted quote into an invoice is slow and risks mistakes. In Prima Invoice, open the quote and choose convert to invoice: every line, tax, discount and total carries over exactly, the number changes from QUO to INV, and the due date follows your terms. If you took a deposit, invoice it first, then record it as a payment on the final invoice.

Converted documents keep a reference to the original quote, which makes it easy to show a customer what they agreed to if a question comes up.

A worked example with the sample lines

The sample is a cabinet repainting quote: a $2,800 painting job for 24 doors and frames, 12 hours of preparation at $55 ($660), three gallons of enamel at $79 ($237), 24 new handles at $8.50 ($204), $180 for protection and cleanup, and a $450 optional island in a contrast colour. With the option, the total before tax is $4,531; without it, $4,081.

If you include optional lines in the document, consider putting them on a separate quote or stating clearly that the total includes the option, so there is no doubt about the agreed price. The figures are examples only.

Writing a quotation letter or cover email

A short covering message helps the numbers land. Thank the customer for the enquiry, summarise the scope in two sentences, mention the validity date and how to accept, and offer a call to answer questions. Attach the quote as a PDF rather than pasting prices into the email body; PDFs keep their layout and are easier for the customer to forward to whoever approves spending.

Follow up a few days later if you hear nothing. Many quotes are lost simply because nobody asked.

Responding to a request for quotation

Companies and public bodies sometimes issue a formal request for quotation with their own format, deadline and questions. Follow their structure exactly, answer every question, and price every item they list, even if you add alternatives separately. Late or incomplete responses are often disqualified without being read. Keep your own quote number on the document so you can track it in your records.

How different industries structure quotations

Caterers quote per guest with menu tiers, staffing hours, crockery hire and a minimum headcount. Translators price per source word or per page, with surcharges for certified or urgent work. Printers quote by run length, paper stock, colours and finishing such as lamination or foiling, often with price breaks at 250, 500 and 1,000 units. Event hire companies list marquees, furniture, lighting and delivery windows. Web developers break projects into discovery, design, build, content migration, testing and launch. Wholesale suppliers answer business enquiries with unit prices, minimum order quantities, lead times and Incoterms for shipping.

Borrow the conventions your customers already know. A wedding couple comparing three caterers expects per-head pricing; a procurement officer comparing suppliers expects unit prices and delivery terms. Matching that format makes your quotation easy to compare and therefore easier to choose.

Tracking quotes so fewer go cold

Keep a simple pipeline of open quotes: number, customer, value, date sent, expiry and status (sent, followed up, accepted, declined, expired). Reviewing it weekly reveals which offers need a nudge and, over time, your win rate by type of job. If many quotes lose on price, revisit your positioning; if they lose to silence, tighten your follow-up rhythm. A polite check-in three to five working days after sending, and another shortly before expiry, recovers a surprising share of hesitant buyers.

Pricing presentation: itemised or bundled

Some customers want every component priced; others find long breakdowns intimidating and prefer one figure per phase. A useful middle path is grouping: a handful of clear headline lines, each with a short description of what it covers. Itemise when buyers will compare line by line or need to remove parts. Bundle when you sell outcomes and detailed costing would invite haggling over individual components. Either way, avoid vague catch-alls such as "sundries" or "general expenses", which erode trust faster than a higher but clearly explained price.