What is the difference? and does it really matter ? Well, yes actually it does, but luckily for you, we've made it simple. So what are the differences between an electricians' Quote and an electricians estimate?
Estimates
What is it? It's basically a guestimate of price done with knowledge and skill, usually fairly accurate to what you will eventually charge.When do I use it? Usually done before or during a first visit to size up a job.What should it look like? - Very informal and loose, can often just be a price given verbally, but sometimes customers like it written down so they can compare between competitors.Anything else I need to know? Can't be used as a legal standpoint for price, but you need to cover yourself with any unexpected costs that may come from the job. So try and account for this in the estimate that you give, by giving examples of possible increases in workload and how this might affect the price.
Quotes
What is it? It's whats drawn up after you've gone over to look at the job giving an exact price for how much you will charge.This would be an almost absolute price that wouldn't deviate unless there are circumstances out of your control or the customer changes the job.When do I use it? Done after sizing up the job and getting all the information from the customer.What should it look like? A quote is formally presented to the customer, it's never given verbally, but instead drawn up like a contract.Anything else I need to know? Can be used as a legal standpoint for customers disputing a price so try to be honest and clear as possible to avoid this.
So now you know the difference, here are some tips for when you're giving out an estimate to customers.
Make sure you're customer knows that they're getting an estimate and not a quote!
If you're giving an estimate written down make sure you make a distinction somewhere on your estimate that it's not a quote, and therefore the final price could and probably would change.
Think about making a set pricing structure for each of the elements of your job, so your estimates can be consistent.
Another nice touch that works for gaining repeat work or recommendations is lower the price that was provided as an estimate if the work itself does come out less than expected.
Remember an estimate can often be the first thing that your customers want to know about and see. So make them look professional and you'll be winning the work in no time.
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