Quoting not only means estimating profits

Quoting

We have already spoken about how to define prices in service companies. Within this topic, this article will focus on quotes.

A quote is the value which results from calculating the costs for rendering a service.

There are fixed quotes, in which the price approved by the client cannot be changed, and flexible quotes, in which the total amount to be paid can be adjusted based on elements already agreed-on with the client.

In a market which is more competitive every day, the difference you can pose with your competitors is now focused on elements that in the past could be seen as details.

This is why we herein give you some advice for quoting works within your service company:

Presentation

It’s important that you prepare good presentations when sending quotes. These are some ways in which you can improve the quality of your quotes: describing each service, using an outline which turns it easier to read, adding visual elements which make the message more attracting, attaching references.

Make detailed estimates

The fact of having an estimate will help you to know the exact profit margin, hence allowing you to correct the quote so as to make it more competitive and attractive to the client.

Know the service performance

The project’s performance is vital for estimating the costs of rendered services. It’s common for service companies to generate low profits or even incur in losses due to bad estimates.

Metrics control

The relation between approved quotes and rejected quotes is one of the metrics you should consider important. We suggest you carry out surveys among your clients in order to know why quotes are rejected. The fact of identifying common elements will help you to improve strategies and increase profits.

Speed up when sending and forwarding

In times in which time is vital, you cannot delay when sending quotes. A client may ask for quotes to different companies, included yours; hence, you should make sure to implement necessary tools for keeping fluent contact with your clients.

 

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