What is the purpose of Quotes? Does it have any payment obligations or legal viability? Can the invoicing process be done without quotes? If you are having any issues in finding the best possible quote and invoice software for your needs then read on to find out more at Invoice Office.
Let’s take a look and find out what is quoted and what the purpose it is serving?
The quotation is the document that is very similar to the invoice. It will contain the same information as present in the invoice. But the purpose of the quote is different from the invoice. The quote is provided to the customer having a detailed list of the products and the service which have been offered to them before the confirmation.
Quotes are sent before the invoice and they are referred to as the first point of contact in the business to the customer. The better is your quote, the better is the chances of order confirmation of the customer. The quote is the opportunity for converting the inquiry to confirmed order.
How to create the quote
The best way of creating the quote is to understand the proper requirements of the customer. Below is the simple example of a quote that is created in quote and invoice software.
The contents of the quote and invoice would be the same but the labeling makes a huge difference. Below are the fields which are present in quote and invoice templates:
- Your company information
- Customer contact details
- Applicable VAT
- Description of products
- Net and gross price
- Terms of payments
The quote is having commercial purpose and besides this, other criteria are specific to the customer which are put up while creating the quote.
Quotes are always recommended to be transparent and would be able to show the proper details of the products. This is the document that would be first presented to the customer. Avoid all the hidden terms and conditions which would put them off.
The second thing to consider is pricing, be concrete about the pricing of your products. Research properly in the market and calculate all your expenses properly and set the price. After that always stick with them.
Below are the two things which need to think when setting the prices:
- Avoid too low pricing: It seems to be a good idea to set a lower price than the market rate or competitor for getting the business. But sometimes this could create a wrong impression on the customer and they might think your product is of low quality. It also means that you are not capable of covering your costs properly.
- Avoid too high pricing: If it is above the market rate then you need to provide a clear advantage over the competitor’s offers. So don’t do it.
When you are setting your pricing then keep the following thing in mind: pricing of your competitor, what is needed for covering the cost of the labor, materials, time, etc.
If you need any help with a quotation and invoicing then do check out Invoice Office. We provide a complete quote and invoice software to suit any business requirements.