Quotation

A quotation is not a casual price list; it is a critical legal weapon. It is a formal, binding proposal where you dictate the rules of engagement: from price and timeline to the fine print that protects you against non-payment.

In practice, we often see confusion with an 'estimate' or 'budget'. This is a dangerous mental error. A quotation is a definitive offer: the moment the client says "agreed", you are legally bound to your price and promises. A strong quotation is therefore your first line of defense and your most powerful sales instrument.

The Anatomy of a Winning Quotation

Most entrepreneurs view quotes as administrative work. The successful 1% view it as the "closing argument" of their sales pitch. A professional quotation doesn't just contain numbers; it builds trust and authority.

Legal Essentials (The 'Must-Haves')

To prevent disputes later—and to stand strong legally—your quotation must contain at least the following elements:

1. Exact Description: What will you do, but more importantly: what will you not do? (Defines your scope).
2. The Price (Fixed vs. Estimate): Is this a fixed contract price or a target price? Inclusive or exclusive of VAT?
3. Planning: When does the work start and end? (Prevents 'eternal' projects).
4. Validity Period: "Valid until [date]". Essential in markets with fluctuating material prices.
5. General Terms & Conditions: Do not just refer to them; send them along. Otherwise, they are often legally invalid.

The Psychology of Price: Quotation vs. Estimate

This is where it often goes wrong. You must be crystal clear about the nature of your price, otherwise your margin is vulnerable.

Feature	The Quotation (Fixed Price)	The Estimate (Budget)
Legal Status	Binding offer. Price is fixed.	Non-binding approximation (often based on actual costs).
Risk	Risk lies with the contractor (setbacks are at your expense).	Risk lies with the client (pays for actual hours/costs).
Usage	For clear, defined assignments.	For complex renovations or uncertain projects.

Expert Tip: When in doubt, always use an estimate or work with 'provisional sums' for uncertain parts. Giving a fixed price on unknown work is financial suicide.

Is a Verbal "Yes" Binding?

Yes, legally a verbal agreement is binding. But proving you are right in court is a different story. Without written proof, it is your word against the client's. In construction and professional services, the unwritten rule applies: "Not signed, not started."

A simple email stating "I agree to quotation #2024-001" is often sufficient, but a digital signature (e-signing) conveys more professionalism and offers better burden of proof.

Step-by-Step: From Request to 'Golden' Handshake

Do you want to increase your conversion and lower your risks? Follow this process:

1. The 'Diagnosis' (Inventory): Don't just listen to what the client asks, but discover what they really need. Ask questions your competitors dare not ask.
2. The Strategic Calculation: Don't overreach. Include risk contingencies for unforeseen circumstances.
3. The Persuasive Document: Write in the client's language. Avoid jargon where possible. Focus on the result, not just the technique.
4. The 'Follow-up' (Goldmine): 80% of quotations are not followed up on. Call 48 hours later. Don't ask "if they received it", but ask: "What did you think of our proposal for [specific problem]?"

Common Mistakes to Avoid

• Forgetting the Validity Period: Clients agreeing after 6 months, while your purchasing prices have risen by 20%.
• Unclear 'Additional Work' Clause: Define what happens if the client changes wishes during the process. Additional work is profit, provided it is well documented.
• Forgetting VAT: For consumers (B2C), you are required to quote prices inclusive of VAT. If you don't, the consumer may assume the price includes it. An expensive mistake.