Providing a quote for a service request is an essential tool in your arsenal when setting yourself apart.
Having an effective process for providing quotes can impact your ability to win new customers and grow your business.
In this article, we will take a dive into the importance of quotes and how you can use them to grow your business.
Avoiding the race to the bottom
It is too easy to fall into the trap of providing low quotes to win a customer’s business, especially when dealing with price-conscious business owners who are on the lookout for the best deal.
And it makes sense: the lower you quote, the more business you will win, right?
While this may be the case now and then, offering low quotes has plenty of disadvantages, the most obvious being that you won’t have any wriggle room should the customer raise any objectives to your pricing. You could be leaving money on the table when dealing with customers who are happy to pay more for trustworthy providers and quality work.
Providing job-winning quotes
The most important thing when providing a quote is to be as detailed and transparent as possible. The level of detail required will depend on the value or complexity of the service request.
For smaller jobs, less is often more. A simple quote with a summary of the job requirements involved is all that is needed here.
For example, if you are a grease hauler providing a quote for cleaning out a grease trap, it is more than enough to give the quote, your availability and a time estimate for the service.
On the other hand, if you have a request to install or replace an existing grease trap, you can set yourself apart by providing a detailed overview of the process and your experience with similar requests.
Depending on the job, you should try offering fixed price quotes as opposed to price-range quotes. Buyers are drawn to fixed price quotes because they know exactly how much they will be spending. When you are dealing with business managers who are working with limited budgets, this is vital.
Of course, providing a fixed price will not always be possible, but for small jobs where the specifics are easy to outline, they are likely to win you more business. As the service grows in size and complexity, a price range or cost plus fee system will be needed.
Optimizing Your Process
You can streamline your process by using templates for specific services you carry out regularly. You could even use a simple checklist when discussing the specifics of the job. The aim is for you to save time while still giving enough detail to win the job.
When it comes to beating the competition for jobs, it can be all about speed. How fast you respond to requests lets the buyer know that you value their patronage.
Be sure to check your job requests every day. If possible, use your tablet or mobile to stay on top of everything whilst out on jobs.
As we already discussed, never fall into the habit of underquoting to win the job. Aside from the fact that you are leaving money on the table, business owners will view a low bid with caution. Price often reflects quality in the mind of the buyer.
Following up on your quotes
When you send over the quote, be sure to let the buyer know that you will follow up in a few days. Business owners can easily forget to complete the service booking with so much else going on, so many will appreciate a follow-up.
Following up on your quote will also show how eager you are for their business and reinforce your professionalism when you do so on time.
When following up, offer as much help as possible and don’t try and force the booking. Business owners will want to know where their money is going, so the more help you can provide the more likely you are to win their business.
Finally, when dealing with a variety of customers it can be easy to get details mixed up. Keep a record of your conversations to avoid any issues down the line.