A professional quotation tells a customer what you propose to supply, how much it will cost, what assumptions the price depends on, and how to accept or ask for a change. It is useful when the customer needs to compare options, obtain approval, or agree the scope before work begins. The goal is a document that both sides can refer to later, not a decorative price list.
The exact format depends on the type of business and transaction. Use the checklist below to make the scope, price, timing, and next step easy to understand. For a quote already sent, see how to follow up on a pending quotation. If the customer asks for a change, keep the original and use a clear quotation revision process.
Quote, estimate, invoice: choose the right document
Businesses use these terms differently, so state clearly what your document does. A quotation usually presents a proposed scope and price for the customer to accept. An estimate signals that an amount is expected but may change when assumptions are checked. An invoice requests or records payment for supplied goods or services. Neither a quote nor an invoice, by itself, proves that money was paid.
If the scope is uncertain, label the price accordingly and explain what could change it. Do not make a tentative estimate look like a fixed offer. When a quote is accepted and the work is completed or a payment milestone is reached, follow the appropriate invoicing process. The handover is covered in converting an accepted quote to an invoice.
Details every useful quotation should make clear
| Section | What to record | Why it matters |
|---|---|---|
| Parties and reference | Your business and contact details, customer name, quotation number, issue date | Helps both sides identify and retrieve the document |
| Scope | Products or work, quantities, specifications, and service included | Reduces disagreement about what the price covers |
| Exclusions and assumptions | Delivery, installation, site access, materials, or customer-provided inputs not included | Shows where extra cost or time could arise |
| Price | Unit price, quantity, discounts, charges, and total | Lets the customer check how the amount was calculated |
| Tax treatment | The applicable treatment and information required for the transaction | Prevents a misleading total; verify current obligations |
| Schedule | Expected start, delivery, completion, or milestone dates | Sets realistic expectations and dependencies |
| Terms | Validity period, deposit or milestones, payment due dates, and accepted methods | Makes the commercial conditions visible before acceptance |
| Next step | How to accept, ask a question, or request a revision | Gives the customer a simple way to respond |
Some businesses also include a project contact, delivery address, purchase-order reference, or warranty terms. Include those details when they are relevant, and avoid collecting personal details that are not needed for the transaction.
Describe the scope so it can be checked
Use a line for each materially different item, service, or milestone. Name the product or task in words the customer will recognize. Add a model, size, material, finish, location, or other specification when it changes what is being supplied. State the unit of measure: pieces, hours, visits, metres, or another clear unit.
For services, describe the deliverable rather than writing only a broad label such as “consulting” or “installation.” You might identify the number of site visits, the report or work product, and what information the customer must provide. For goods, say whether assembly, delivery, configuration, or removal of old equipment is included.
Be explicit about dependencies. If a final price depends on a site inspection, a measured quantity, customer approval, or a supplier lead time, record that condition. If the customer asks for optional work, show it as a separate option so it is not mistaken for an included item.
Make the arithmetic auditable
Show quantity multiplied by unit price for each line, then show any discount, delivery charge, other fee, tax treatment, and final amount in a consistent order. Make clear whether a discount applies to one line or the whole quotation. If the work is billed by milestones, show each milestone and its amount or calculation.
For example, a repair shop might quote for two replacement parts at KES 2,400 each, three hours of labour at KES 1,000 per hour, and a KES 500 collection charge. The quoted subtotal before any applicable tax would be KES 8,300. The important point is not the sample price; it is that each quantity and charge is visible and the tax treatment is not left for the customer to guess. Confirm current tax-invoice and eTIMS requirements with KRA's eTIMS guidance where they apply.
Check that line totals add up, that the unit and currency are consistent, and that the amount in words (if used) matches the figures. If a third party must approve the work, include a reference field for their purchase order or internal request.
Set terms that match the real agreement
Give the quotation a validity period that reflects supplier pricing, stock availability, and how long you can honor the offer. Avoid arbitrary urgency. If you need a decision by a date because stock is reserved or a project slot is available, explain that condition and confirm it is accurate.
State whether a deposit is required, what it reserves, and when the balance is due. For phased work, tie each payment to an identifiable milestone. Explain what happens if the customer changes the scope, delays an approval, or requests work outside the agreed list. Make sure your written terms match the discussion and any contract that governs the transaction.
Do not promise a delivery date you cannot control. If a date depends on stock, access, or customer approval, label it as an estimate and say what must happen first. If multiple options are available, separate their prices and service levels instead of presenting one total that combines them ambiguously.
Example quotation structure
For a small office installation, the quote could be organized as follows:
- Reference: quotation number, issue date, customer and site.
- Scope: six workstations, assembly, cable management, and one installation visit.
- Exclusions: electrical work and extra visits, priced separately if requested.
- Price: itemized equipment, labour, delivery, applicable tax treatment, and total.
- Schedule: target installation date after site access and written approval.
- Terms: offer validity, deposit, balance milestone, and payment methods.
- Acceptance: customer name, approval date or written confirmation, and contact for questions.
This structure can be shortened for a simple retail order, but the customer should still be able to identify what is included and how to proceed.
Before sending: a five-minute review
- Does the customer name, project, address, and reference match the request?
- Can someone unfamiliar with the conversation understand each line?
- Are quantities, units, specifications, exclusions, and optional work clear?
- Do the line calculations, discount, fees, tax treatment, and total reconcile?
- Are the expiry date, schedule, deposit, and payment terms realistic?
- Is the document readable on a phone and easy to save or forward?
- Does the message explain how to approve or request a revision?
Keep the final copy and note when and how it was sent. Store supporting measurements, supplier prices, or customer instructions with the quote if they explain an important assumption. A saved copy is especially useful if a customer asks later why the amount changed.
Common quotation mistakes
A single unexplained total. Customers cannot compare options or identify a mistaken quantity. Itemize the important components.
Vague scope. “Supply and install” may hide whether delivery, setup, cabling, or cleanup is included. Name the boundary of the work.
Terms copied from another job. Old dates, payment schedules, tax language, and customer names can create confusion. Review the whole document for each new quote.
Unclear validity. A quote with no expiry can be mistaken for a price you will honor indefinitely. State a reasonable date or explain the relevant condition.
Unrecorded changes. A message or phone call can alter quantities or timing without updating the document. Record the change and make the current version obvious.
Premature invoicing. A quotation is not proof of delivery or payment. Confirm acceptance and the relevant supply or milestone before creating the next document.
Professional quotations work because they make decisions easier to check. A clear scope and consistent record help with follow-up, revisions, and billing; continue with the guides on pending quote follow-up, revisions, and quote-to-invoice handover.