Knowing how to position your business in the market puts you in a much stronger position to attract customers. It is fundamentally what makes your business stand out from the rest. What follows, is an ability to achieve highly effective and efficient communication channels with customers. This is particularly useful when it comes to winning contracts and writing better service quotes that foster rapid payment.
Business on the whole, tend to provide a service quote based on a previous work estimate. The latter simply gives the client guidance on what needs to be done and roughly how much it’ll cost them. On the other hand, a value-based quote can be seen as a persuasive document that presents detailed costs for the job, acknowledging any specific problem areas or concerns.
According to a study, the average quote has a 47% chance of winning new business, which is 12% higher than what estimates are found to do. Given this statistic, as a business owner, you would be well advised to consider your professional quoting process as one of the key factors in achieving business growth. Read on to learn more about how you can write better service quotes for your business!
Present the process
The first tip on writing better service quotes is to show your customers how you are going to solve their problem, including the when exactly, what your plan is, and potentially the equipment you’ll need to use. A good quote usually revolves around giving clients a clear understanding of how their specific problem is going to be resolved systematically. In turn, a detailed quote will persuade a customer to conduct business with you as you have laid out clear expectations of the project’s scope, involvement and outcome.
Moreover, by presenting the process in a quote, clients will be able to track the progress of the work easily, should they want to. Intelligent technology can help you do this. Field based service businesses, such as landscaping, cleaning and plumbing companies for example, would be well advised to look into software options like the one offered by Jobber. Here, clearly laid out and fully customizable templates prompt you to include all required information which is effective at eliminating any uncertainty and garnering transparency and trust with your customers.
Check the market before setting your prices
In order for you to set the prices right, you need to evaluate the market’s current conditions for your service. You’ll regularly need to determine if the market is improving or declining. What’s the demand for your specific service now? Are there legal conditions, like labor shortages, new tax laws, or increased material costs? Will these considerations affect the prices for your service? (2)
By answering these questions, not only will it help you create better service quotes, but it’ll also help you identify the right pricing model for your company and ensure you are quoting accurately. Thus, you can make sure that the price you set isn’t too expensive. Too high a price can keep prospects away. Too low, and you’re ruining your business’s cash flow.
Identify the job costs
A job cost refers to the total cost to complete a job. In addition to your company’s reputation and employee’s skills, clients should also have to pay for the materials, your time, and any other resources.
Here’s a quick breakdown of each cost that the client should pay:
- Materials: Any materials required to complete the job.
- Labor: Thecost of labor refers to the amount of time it’ll take for you and/or your employees to complete the work.
- Transportation: Depending on the agreement or the distance, you may bill the transportation costs to your client.
Of course, the final factor to help you find the right quote for your client is the size of the job. If the project is large, such as building a new house, it’ll naturally cost more than a smaller project. This is because a large project means more workers, equipment, and materials to complete.
Generate a written estimate
After communicating with the client and agreeing a price, it’s then time to write a thorough breakdown of the costs. The purpose of the breakdown is to give your customer as much information as possible regarding the job. It should have the following elements:
- The total cost of the estimate
- The components of the price
- The proposed work schedule
- The terms and conditions of the work (3)
Essentially, a good service quote should be the gateway for you to increase your company’s profit and transform an ordinary customer experience into a remarkable one. Fortunately, with these tips, creating better service quotes is already within your reach.
Also, never underestimate the power of technology that can help you generate better, and more effective quotes. Doing so won’t only make the manual process much easier, but it’ll also help you create more professional and visually appealing ones, which further increase the chances of enticing prospects to sign a deal with you.
- “5 Tips on How to Write an Effective Quote”, Source: https://www.mosspaper.com/blog/5-tips-on-how-to-write-an-effective-quote
- “How to Write a Quote for a Service Job”, Source: https://www.joblogic.com/blog/writing-a-service-quote/
- “How to Write a Great Service Quote for Your Customers”, Source: https://www.vonigo.com/write-great-service-quote-customers/