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A business estimate is a document from a seller or service provider given to a client. It shows how much a client is expected to pay if he/she purchases the products and services of a seller or service provider. On the perspective of the seller or service provider, a business estimate can also serve as a proposal to entice a client to purchase his/her goods. A business estimate comes in many names depending on the nature of the business. There's engineering estimates, design estimates, medical estimates, labor estimates, cleaning services estimates, poultry farm estimates, and so much more. Both big businesses and small businesses make use of business estimates.
Whether you're a big time business owner or a steady freelancer, a quality business estimate is always essential for you to constantly have clients. With that in mind, we have gathered a few tips in creating an effective business estimate.
Most business estimate sheets only contains a breakdown of expenses. Yes, that's the essence of business estimates. But it's advisable to start it with a welcoming message to give them a good first impression. It could be a message saying thanks to the client for contacting you, or saying how delighted you are to hear from them.
It's likely that a client already has knowledge about your products and services, but it might just be general knowledge, and that's why you should explain it further to them. You can talk to them about the benefits provided by your goods, and other information about it that answers the client's question of "What's in it for me?". Moreover, giving the clients a detailed explanation about your products and services gives them a feeling of assurance that your business is reliable.
This is the most important part of a business estimate because it's the info that a client is looking for. To do this, you need to analyze what your products and services cost you as a provider or seller. Determine how much you've invested for them such as the cost of materials, equipment, tools, rent, utilities, and your efforts (labor). Once you've done that, you can then determine the prices of your goods that can earn you profits. See to it that your prices are reasonable. If it isn't, then the client might decide not to purchase your goods.
In some cases, there might be circumstances that will alter the total price of your products and services. For instance, a client requested that his order should arrive within a week, but the usual arrival time of your products are two weeks. You can grant the client's request, but he has to agree to the additional labor charges for wanting his order to arrive earlier than it's usual arrival time.
Before printing and sending the business estimate to the client, proofread it first from start to finish, especially on the breakdown of expenses. Make sure that your calculations in it are correct, most importantly on the total price of your goods.