Quotation format, with an example
A quotation needs your details, the customer's, a quote number and date, a clear description of the work or goods with quantities and prices, the total with any tax, how long the price stands, and your terms. Most quotes that lose, lose on vagueness rather than price.
The Quotation Generator follows this format and produces the PDF. Quotation Generator
Writing a quotation
- Head it Quotation, with your business name and contact details.
- Add the customer's name, the date and a unique quote number.
- Describe each item or stage precisely, with quantity, unit price and amount.
- Show the subtotal, any tax and the total.
- State how long the quote is valid, commonly 30 days.
- Add payment terms, what is excluded, and how to accept.
A worked example
A decorator quoting for a living room might list preparation and filling, one item, 180; two coats of emulsion to walls and ceiling, 22 square metres at 9, 198; and gloss to the skirting and door, one item, 120. Subtotal 498, VAT at 20 per cent 99.60, total 597.60, valid for 30 days, paint supplied by the decorator and furniture moved by the customer.
Every line can be checked, the exclusion is written down, and the customer knows exactly what the total buys. That is the whole format.
Validity and price changes
A quote with no end date can be accepted months later at a price you can no longer honour. Thirty days is typical; where material prices move quickly, shorter. If something could change the price, say what.
A covering email
Keep it short: thank them for the enquiry, say the quotation is attached, name the total and how long it stands, and say what happens next.
For example: Thank you for asking us to quote for the work at 12 Mill Lane. Our quotation is attached, totalling 597.60 including VAT, and it is valid for 30 days. To go ahead, reply to this email and we will confirm a start date.
Quote or estimate?
A quotation is a fixed price for defined work. An estimate is an informed guess that can move. Use the word that matches what you are promising, because in many places a customer can hold you to a quotation.
Questions people ask next
Is a quotation legally binding?
A quotation is an offer. Once the customer accepts it, it usually forms a contract at the quoted price, which is why the scope and the validity date matter.
What is the difference between a quotation and an invoice?
A quotation comes before the work and states the price. An invoice comes after and asks for payment.
Can I make a quotation in Excel or Word?
Yes. Put the fields above in a table, and in Excel let formulas work out the amounts and totals. Save the result as a PDF before you send it.