Drafting a quotation is essential for outlining proposed costs and services to a potential client, providing clarity and managing expectations.
A professional quotation details the scope of work or products offered, associated costs, and necessary terms. Here are the key components to include when drafting one:
Essential Elements of a Quotation
To effectively draft a quotation, ensure you incorporate the following crucial elements, referencing the client's specific request:
1. Itemized List of Goods and/or Services
Clearly list everything you are providing. This section breaks down the project or product offering into manageable parts.
- Detail: Specify each item or service individually. Avoid vague descriptions.
- Quantity: State the number of units or hours for each item.
- Description: Briefly describe what each item or service entails.
Example Table:
| Item/Service ID | Description | Quantity | Unit |
|---|---|---|---|
| P-101 | Website Design - Homepage | 1 | Project |
| S-205 | Content Writing - 5 pages | 5 | Page |
| L-310 | Project Management - Initial Phase | 10 | Hours |
2. Pricing Breakdown
Provide clear pricing for each item listed. Transparency here builds trust.
- Unit Price: State the price per unit (item, hour, day, etc.).
- Subtotal: Calculate the total cost for each line item (Quantity x Unit Price).
- Labor Costs: If applicable, itemize or include labor costs within the service price. Be specific about what labor is covered.
- Discounts: Clearly show any applicable discounts, either per item or as a total.
- Taxes: Indicate relevant taxes (e.g., sales tax, VAT) and how they are applied (included in unit price or added separately).
Example Pricing:
- Website Design - Homepage: $1,500.00
- Content Writing - 5 pages @ $100/page: $500.00
- Project Management - 10 hours @ $75/hour: $750.00
- Subtotal: $2,750.00
- Discount (10% on Services): -$275.00
- Tax (GST 5%): $123.75
- Total Quote Amount: $2,598.75
3. Scope Disclaimers
Define the boundaries of the product or project. This section protects both parties by setting expectations and clarifying what is not included.
- Inclusions: Briefly reiterate what the quote does cover based on the itemized list.
- Exclusions: Clearly list anything not included in this quote (e.g., additional revisions beyond X, specific software licenses, third-party fees).
- Assumptions: State any assumptions made when preparing the quote (e.g., client provides content by a certain date, site access granted).
- Validity Period: Specify how long the quoted price is valid.
4. Payment Terms and Contact Information
Outline how and when payment is expected and provide contact details for follow-up.
- Payment Schedule: State when payments are due (e.g., 50% upfront, 50% upon completion; Net 30 days from invoice date).
- Accepted Methods: List the payment methods you accept (e.g., bank transfer, credit card, check).
- Late Payment Penalties: Include terms regarding late payments, if applicable.
- Contact Person: Provide the name and title of the person they can contact with questions.
- Contact Details: Include phone number, email address, and physical address of your business.
- Acceptance: Explain how the client can formally accept the quotation (e.g., sign and return, respond by email).
Practical Tips:
- Use a professional template.
- Assign a unique quotation number for easy tracking.
- Date the quotation.
- Address the quotation directly to the client's business name and contact person.
- Review carefully for errors before sending.
By incorporating these elements, you create a clear, professional, and comprehensive quotation that serves as a strong foundation for potential business.
