After you have wrapped up a great sales presentation with a potential prospect, the next step is them asking you for a sales quote. A moment every business eagerly awaits. This can be the next step in the process by closing the deal or losing it completely. How?

How well you prepare the quotation can influence what happens next. A confusing quotation can create more questions, while a clear one gives the buyer something they can evaluate, negotiate, and approve.

What is a sales quotation?

A sales quotation is also commonly called a sales quote, quote, price quotation, or business quotation.

What are the components of a sales quotation?

To deliver an impactful sales presentation, your quotation must include the following elements:

1. Company details

Start with your company’s name, address, contact details, and tax registration number. This is the first step in building trust and helping the client recognize your brand.

2. Customer information

Address the buyer by name and include their company, contact person, and billing address. Customize the sales quote to meet their individual requirements based on the pain points you uncovered in discovery.

3. Product/service you are offering

The product or service you provide should be clearly stated and explained. Emphasize its benefits, features, customization options, and ways in which it solves the customer's issues.

For a product, this could include specifications, quantity, model, or variant. For a service, include the scope, deliverables, duration, or other relevant details.

4. Pricing breakdown

Provide a full breakdown of the expenses associated with each product or service. List the unit pricing, quantities, and totals. Be honest about any additional charges or fees. This part is essential for building credibility and creating a strong foundation for a long-term relationship with the client. Show the currency, and list taxes and shipping separately.

5. Discounts (If any)

Everyone loves a good deal! So if you’re offering special discounts, mention them clearly and state the conditions in your sales quotation. 

For example: “10% discount on orders above $5,000.”

6. Payment terms

Clearly specify the allowed payment methods (credit card, bank transfer, etc.), payment schedule, and due dates. This helps to manage expectations and ensures timely payments. 

7. Terms & conditions

Include information about warranties, return policies, delivery dates, and other legal requirements. This provision functions as a safety net for both parties. Typical terms of sale also cover delivery and shipping, cancellation, and liability.

Sales quotation format

A clear layout makes a quotation easy to read and approve. Put your company details and the quote number at the top, the buyer’s details below, then the line-item table and totals, and finish with the terms, validity period, and acceptance line. Keep it to one page where you can. Build it in Word or Excel, export it as a PDF, or generate it from a CRM, and use the same layout for every quote so buyers always know where to look.

What is the importance of a sales quotation?

In a sales presentation, a sales quotation is more than just a price list. It is a powerful tool in your sales deck. Here’s why:

It fosters transparency and trust

By explicitly stating all associated expenses, a comprehensive sales quotation eliminates any possibility of misunderstandings or unpleasant surprises down the road. This increases your potential customer's trust.

It documents the terms of your offer

By having well-defined terms and conditions, a sales quotation records the terms of your offer. Once the buyer accepts, it becomes the basis for an order or contract. It safeguards both parties in case of any disagreements. How a quote is treated legally varies by location, so check with your legal team.

It’s a basis for negotiation

A well-structured sales quotation serves as a starting point for negotiation. It allows both parties to discuss and adjust the terms, if necessary, and arrive at a mutually agreeable deal.

Examples of sales quotation

Let's take a look at some examples of quotations your sales deck should have for both product- and service-based businesses:

1. Product-based example

Quote number and date: Q-1042, dated [date]

Company Details: Furniture Retailer

Customer Details: Hotel

Product: 10 Dining Chairs (with specifications)

Unit Price: $150

Total: $1,500

Delivery Fee: $50

Tax: Added at the applicable rate (GST/VAT, if relevant)

Valid until: 30 days from the quote date

Total Amount: $1,550 (before tax)

T&C

2. Service-based example

Quote number and date: Q-2087, dated [date]

Company Details: Digital Marketing Agency

Customer Details: Rebel Foods

Service: SEO Optimization (3-month contract)

Cost Per Month: $1,000

Discount: $200 for upfront payment

Total Amount: $2,800 (before tax)

Valid until: 30 days from the quote date

T&C

What are the benefits of using digital sales quotation tools?

In today’s digital age, there are a number of tools available to help you create professional and effective sales quotations. Sales quoting is the full process of building, approving, sending, and tracking quotes, and software helps most when several people send quotes or prices change often.

Time-saving

Focus more of your time on growing your business and let the repetitive and mundane tasks be left to automation tools. Not only does this retrieve better results, it takes away the burden from your plate.  

Improved efficiency and accuracy

With pre-filled templates and automated calculations, errors are minimized, ensuring professional and precise quotes.

Real-time updates

Make real-time changes and track revisions so your clients always have the most current version.

Examples: Tools such as a CRM can build quotes from your deal data. Superleap CRM offers a range of features, including customizable templates, electronic signatures, and payment integration.

What to look for in quoting software

• Reusable templates
• Automatic calculation of totals, discounts, and taxes
• Approval workflows for discounts
• Version history
• Electronic signature
• CRM sync, so buyer and deal data flow into the quote

Larger teams with complex products often use configure, price, quote (CPQ) software, which builds quotes from product rules and price lists.

What are the mistakes to avoid in sales quotations?

Even the best sales pitch can be derailed by a poorly crafted quotation.

Omitting critical details

Ensure your sales quotation is thorough, covering all details like product features, quantity, cost, payment conditions, and relevant terms. Do not omit any details. This might lead to back-and-forth communication, eventually leading to lost interest.

Vague language

Never use ambiguous language that could lead to misunderstandings in the future or give rise to too much confusion. Be clear and concise in your descriptions. For example, avoid “approximately” or “as required” where the buyer needs a firm figure or date.

Inaccurate pricing

Double-check your calculations to ensure the pricing is accurate. Even the smallest errors can damage your credibility and you could possibly lose the sales.

No validity period

If there are any deadlines associated with the sales quotation, make sure to clearly state them. An expiry date also stops the buyer from accepting an outdated price later.

Sending it late

A delayed quotation can result in lost opportunities. So send your client a quote as soon as possible, to remind them of the deal among the many they might have been offered.

Conclusion

A well-prepared sales quotation turns interest into a decision. You may improve the process by carefully preparing your quotation, focusing on what the buyer genuinely wants, following up promptly, and employing the appropriate tools.

To create, send, and track quotations from your deal data, see how Superleap AI CRM supports your sales team.