Quotations commit you to the price you specify, so they are usually used when:
- the work you're quoting for has clear requirements - in terms of time, labour, materials, etc
- your costs are stable
- you're confident the work won't turn out to be more complicated than expected
It's good practice to give your customers a written quotation. This should include the:
- overall price
- breakdown of the components of the price, indicating what is covered and what is not
- period the quotation is valid for
- schedule for when the work will be done or products delivered
- full contact details of your business
- payment terms or schedule
- how any modifications or changes the customer requests will be controlled and priced once the project is underway
It's also advisable to get your customer's written confirmation that they're happy with the price you have quoted and the work that this includes. This should be done before you carry out the work, or provide the goods or services.
If the job changes substantially after you start work, it's a good idea to revise your quotation and get it agreed before you finish the job.
Computer software can be used to help you determine the costs involved in any work for which you're drawing up a quotation.
Know your legal responsibilities
- Do you need a licence?
- Get the right business insurance
- Comply with the law when providing goods and services
- Know your customers' rights
- Distance and online selling rules
- Understand pricing legislation
- Buying goods from outside NI
- Selling goods outside NI
- GDPR compliance checklist
- Pay your business rates
- Understand staff contracts and your responsibilities
- Taking on contractors and subcontractors
- What you need to do about health and safety
- Know your legal obligations on pensions
Understand tax and VAT
Sell and market your products or services