Overview
Quotations are price estimates provided to customers before performing work. They detail the cost of parts, labor, and other charges, allowing customers to approve or decline the proposed work before you proceed.Always get customer approval on quotations before performing non-emergency work. Quotes protect both you and the customer by establishing clear expectations about cost.
When to Use Quotations
Create quotations when:- Diagnostic work reveals repairs needed - Quote the repair cost after finding the problem
- Customers request estimates - Before scheduling any non-contract work
- Additional work discovered - Found during scheduled maintenance
- Large or expensive jobs - Installations, major repairs, or system replacements
- Non-warranty work - Any work not covered by service contracts
- Customers require written approval - Corporate clients or purchase order requirements
Quotation Information
Each quotation displays:| Field | Description |
|---|---|
| Quote ID | Unique identifier for this quotation |
| Work Order | Associated work order or service request |
| Customer | Customer receiving the quote |
| Quote Date | When the quotation was created |
| Status | Current status (Pending, Approved, Declined, Expired) |
| Total Amount | Total quoted price including all charges |
| Valid Until | Expiration date for quoted prices |
| Created By | Technician or user who created the quote |
Quotation Statuses
| Status | What It Means | Next Action |
|---|---|---|
| Pending | Quote sent, awaiting customer decision | Follow up with customer |
| Approved | Customer accepted the quote | Schedule and perform the work |
| Declined | Customer rejected the quote | Document reason, close quotation |
| Expired | Validity period passed | Contact customer, create new quote if still interested |
| Converted | Turned into work order | Proceed with approved work |
Creating Quotations
From Service Requests
Direct Creation
Quotation Line Items
Types of Charges
Labor:- Hourly rates by technician skill level
- Flat-rate pricing for specific tasks
- Emergency or after-hours rates
- Travel time charges
- Individual parts with part numbers
- Materials and supplies
- Equipment or system costs
- Shipping and handling
- Trip charges or service call fees
- Equipment rental (lifts, generators, etc.)
- Permit or inspection fees
- Disposal fees
- Taxes
Item Details
For each line item, specify:| Field | Description |
|---|---|
| Description | What the item is or service being provided |
| Part Number | Part or item identifier (if applicable) |
| Quantity | How many units needed |
| Unit Price | Cost per unit |
| Discount | Any applicable discount percentage |
| Total | Extended price (quantity × unit price - discount) |
| Notes | Additional details or options |
Pricing Strategies
Standard Pricing
- Use predefined labor rates
- Apply standard parts markup
- Follow company pricing policy
- Consistent across all quotes
Competitive Pricing
- Research competitor pricing
- Adjust for market conditions
- Consider customer relationship value
- Balance profitability with competitiveness
Value-Based Pricing
- Price based on value to customer
- Consider urgency and impact
- Emergency work vs. routine service
- Critical equipment vs. non-essential
Many organizations maintain price books with standard rates for common services, parts, and labor categories.
Managing Quotations
Sending Quotations
By Email:- Generate PDF from system
- Send to customer email address
- Include payment terms and validity period
- Request confirmation or questions
- Print quotation
- Deliver in person or mail
- Get customer signature on copy
- Keep signed copy for records
- Post to customer online portal
- Customer can review and approve online
- Automatic notifications
- Digital approval process
Following Up
Handling Approvals
When Approved:
When Declined:
Quotation Best Practices
Provide Detailed Breakdowns
Provide Detailed Breakdowns
Itemize labor, parts, and other charges separately. Customers appreciate transparency and detailed explanations.
Include Clear Descriptions
Include Clear Descriptions
Explain what work will be done in plain language. Avoid technical jargon customers won’t understand.
Set Validity Periods
Set Validity Periods
Quotes should expire after 30-90 days. Prices can change, and you need to protect your pricing.
Offer Options
Offer Options
Provide good/better/best pricing options when appropriate. Gives customers choice and control.
Explain Payment Terms
Explain Payment Terms
State payment methods accepted, when payment is due, and any deposit requirements.
Document Everything
Document Everything
Keep records of all quotes sent, customer responses, and approval methods. Protects against disputes.
Follow Up Promptly
Follow Up Promptly
Contact customers within 2-3 days of sending quote. Shows attentiveness and professionalism.
Use Professional Format
Use Professional Format
Ensure quotes are well-formatted, free of errors, and include your company branding.
Common Questions
How long are quotations valid?
How long are quotations valid?
Typically 30-60 days, but varies by organization and industry. Set validity periods based on how volatile your costs are.
Can I modify a quote after sending it?
Can I modify a quote after sending it?
Yes, create a revised quote with new pricing. Clearly mark it as “Revised” and reference the original quote.
What if actual costs exceed the quote?
What if actual costs exceed the quote?
You must absorb the difference unless you get customer approval for additional charges. Always quote conservatively.
Do I need quotes for contract work?
Do I need quotes for contract work?
Not usually. Contract work is pre-approved and pre-priced. Only quote work outside the contract scope.
Can customers negotiate quoted prices?
Can customers negotiate quoted prices?
Depends on your company policy. Some allow negotiation, others have firm pricing. Be consistent.
What if a quote is approved but the customer delays?
What if a quote is approved but the customer delays?
The quote may expire. Contact the customer, and if still valid, honor the original pricing. If expired, create new quote with current pricing.
Should I quote for diagnostic work?
Should I quote for diagnostic work?
Many organizations charge a diagnostic fee upfront, then quote the repair. Others offer free diagnostics but quote the full repair cost.
How do I handle quote rejections?
How do I handle quote rejections?
Document the reason for future reference. Follow up later if appropriate. Use data to identify pricing or service issues.
Related Documentation
Work Orders
Creating and managing work orders
Material Requests
Requesting parts and materials
Service Requests
Managing customer service requests
Invoicing
Generating invoices from approved work