Quote vs estimate, do you know what to use and when? Pricing a job can be difficult until you get a firm grasp of the terminology behind it. Before you give a client a quote or an estimate, it’s best to know what either means to avoid any complications.
What is a quote?
Put simply, a quote is an exact price for a job. They’re legally binding, meaning the client is able to provide it as the agreed-upon price if any problems come up.
You might use a quote before a job is started. This is again as it is legally binding when it comes to recalling the price, the work done, and even the timescale.
However, it also means you can deny doing more work for the same price. This keeps the project scope secure and allows you to accurately plan a timeline.
A more common time to use a quote is near the end of a job. You will know exactly what the price is for the whole project, which helps when creating an invoice.
What is an estimate?
As a counterpart to quotes, estimates are a non-specific guess to the price of a job. They are often given at the start and are based on previous experience and project scope.
The benefit of using an estimate before anything else is that they are not legally binding. This means that you can ask for more payment at the end of a job when giving a quote.
In terms of when to invoice using an estimate, you shouldn’t. There is no reason to invoice a client when you don’t know how much to charge. The only exemption to this is when asking for a deposit as in this case, it’s often to cover the costs needed for starting.
Which is better, quote or estimate?
In terms of quote vs estimate, they actually work together well, and should most effectively be used together. You can be given a job brief and offer a project estimate, once you then have more details, it’s a better time to quote them for the final payment.
Once you have your estimates done, and your quote made, you can create an invoice. Why not use the invoice24 invoicing solution that allows for card payments on the spot, making the entire process seamless.