Sent by Jonathan Stark on August 7th, 2019
Sometimes folks will end a sales call by saying to the prospect, “I’ll send you quote” when what they’re really going to do is send an estimate.
A quote (e.g., “I’ll quote you a price”) is not the same thing as an estimate (e.g., “I’ll send you an estimate”).
When you refer to an estimate as a quote, you are encouraging the client to look at your estimate as a price.
An estimate is not a price and if the client is confused about which you are providing, there’s going to be a lot of stress if/when the project goes over your estimate.
Ideally, I’d like it if you were quoting prices for projects, but if you’re still doing hours estimates, it’s better for both parties if you call it what it is.