What is IT and Software Quotation?
As per Business Dictionary, a quotation is a formal document presenting the list of services requested by a potential client along with their respective price estimates, terms of sale and payment, and warranties. It is usually a response to a request for a quotation and must not be confused with an Invoice. Furthermore, the amount and quantity may be subject to changes when agreed by both parties.
How to Create an IT and Software Quotation
A quotation serves as your company's proposal to a client. Hence, ensure to create one that will lead to client acceptance following the simple steps below:
1. Ensure to Address the Request of Your Client
It would be best if you specifically answer the demands of the client. For example, if the client wanted to have Management Software, you must list the applications, tools, and other services related to the needs of the client. However, you may also provide suggestions and alternatives if you believe it is perfect for the client’s needs.
2. Add Various Modes of Payment
Let the client choose his preferred payment method. You must indicate in your project quotation template that you will accept various modes of payment, such as debit or credit cards, checks, bank transfers, and cash. This will provide the client with an easy way to pay for your services, hence a higher chance of acceptance of the quotation.
3. Do Not Forget the Terms of Sale and Payment
Make sure that you let the client know regarding the terms and conditions of your services before the commencement of the project to prevent future disputes and conflicts. This will also make things clear regarding the payment terms and scope of services.
4. Keep the Format Organized and Presentable
You should keep your format and design minimal and professional, as this is a formal document that will surely have an impact on your company’s branding. If you have other Business Document templates, such as an invoice template, you may design the quotation similarly to have brand consistency.
What Is the Difference Between a Quotation and an Invoice?
A quotation presents the price estimates and does not reflect the final products or services ordered by the client. An invoice, on the other hand, presents the final list of the products or services as per client request and serves as a form of demand for payment.
What Is the Difference Between a Quotation and a Receipt?
A quotation is served to the client before the occurrence of the sales transaction, while a receipt is issued after the services have been rendered and the client pays the amount due.
When Do You Send a Quotation?
You send a quotation after the client sends you a request, specifying his need for certain products and/or services.
What Is the Main Purpose of a Quotation?
A quotation is used to let the client know the price of the products or services that he is requesting. Additionally, this will also include the terms and conditions and payment terms.
Who Prepares a Quotation?
The seller, vendor, or service provider prepares the quotation and sends it to a potential client.