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How to write a formal quote

A formal quote is a type of document used by businesses of any size to provide a price for a given product or service. Formal quotes typically include a description of the work or service being offered and also has a contract for the recipient to sign.

This article will cover the fundamentals of formal quotes, why they are used, and how to write them for your business.

Why use quotes?

There might be a time where a client or customer needs to hire you immediately. However, there are occasions where you will be in competition with other providers or will need to convince the customer that they actually need the service in the first place. In these situations, a formal, well-designed quote can be what clinches the deal.

The difference between an estimate and a quote

There are a number of similarities between quotes and estimates so it can be a little confusing trying to distinguish between the two. Essentially, they both involve providing a price to a potential client or customer.

However, an estimate is more of an educated guess than a concrete price and is not supposed to be a binding offer. A quote is more formal and provides a far more accurate price based on a proper analysis of what the job will cost. This kind of quote can even act as a legal document or contract if accepted by the quote recipient.

Things to include in your quote

The structure of your quote and the details you include are very important. Here are a few basic elements that form the shell of a good formal quote:

Your company name and contact details

Both the business name and contact details – such as phone number, address, email, and so on – should be clearly stated. The best place for these is at the top of the page so the reader can find them right away.

Pricing breakdown

Your price quote could be presented in a number of ways, but a common and advisable format is a pricing table or price list. You can detail each item or service in its own section of the table and highlight every cost associated with each line item including taxes, total price, discounts, etc., so the reader knows exactly what they need to pay for.

Other information

Depending on your selling style and what the customer has requested, you can add more details and information to make the quote more useful. This includes things like guarantees, a description of the goods or services, optional additional expenses, payment terms, a ready-made legal contract for them to sign, a timeline of the work, and more. Whatever additional details add, make sure they are useful to the quote recipient.

Extras

If you really want to make your price quotation stand out above the competition, add interactive and eye-catching elements.

For example, informative videos, relevant marketing images and photos, interactive checkboxes, electronic signatures and more. Consider also adding brand elements like logos, specific color themes, basically anything that keeps your quote on-brand.

An easier way to write a formal quote

PandaDoc provides quoting software designed to help create, send, sign, and track your quotes and other business documents. PandaDoc is cloud-based and many businesses are up and running within a day. To create a formal quote in PandaDoc, simply:

  1. Choose the “New Document” button in the upper right-hand corner of your PandaDoc dashboard.
  2. Either start a quote from a blank document or choose a quote template from the list to get started.
  3. Take advantage of the robust document editor to make a bespoke quote. Add text blocks and signature fields by dragging and dropping them into your document. Choose from additional blocks like videos, pricing tables, and more to completely customize and tailor the quote to your customer.
  4. Autofill the quote with pre-populated data from your CRM via one of our out-of-the-box integrations.

Start writing quotes that win more deals

A well-designed formal quote can be the difference between a potential customer ignoring you and that same customer agreeing to do business with you. They are detrimental to the sales process, so it’s vital that your business gets them right.

Producing individual quotes for every interested customer can be a time-consuming and daunting task, so why not make it easier?

All-in-one software such as PandaDoc helps companies like yours to build, send, sign, and track professional quotes in a fraction of the time.