Try these tips to quote more accurately on any project. There are always unknowns that can make it difficult to provide a fixed estimate, especially if you’re working with a new customer. With experience, you’ll learn how to calculate a fair price for your work. Of course, the sooner you learn this skill, the better it is for your business. These guidelines can help you quote accurately and earn a better profit. Weigh the true cost When it comes to quoting, you’ll want to be aware of what others in your industry are billing while keeping in mind what you need to charge in order to meet your financial goals. A major element of quoting is figuring out exactly how long it will take to complete a project. Don’t be afraid to ask questions. Gathering plenty of information up front will allow you to cost out precisely what is required to meet your customer’s needs. Keep in mind that two customers may want the same solution, but your true cost will differ. If you know a customer is a slow payer, quote higher. A project isn’t complete until you’ve been paid. It’s fair to include the time you’ll spend following up. Track your hours A project isn’t just about deliverables. It also includes administrative tasks like bookkeeping and invoicing. Set a timer next time you start an activity related to a job. Keep a log for two weeks so you can refer to your numbers when quoting in future. You may be surprised that, taking everything into consideration, your hourly rate is much less than you thought. Many suppliers find meetings, phone calls, and emails take up more time than expected. Include time in your estimate for communications so you’re covered if your customer wants to touch base frequently. Prepare for surprises You can’t expect the unexpected, which is why suppliers (especially freelancers and independent contractors) are often advised to quote high. For example, your contact at the customer business may leave the company that hired you. Or, the scope of the project may change slightly over time—or change a lot. Quoting high may make you feel a bit anxious. But giving yourself a buffer will allow you to relax when things don’t go according to plan. If you’re conscientious about offering great value for your work, quoting higher than your competitors won’t take you out of the game—it will help you build a sustainable business. Other tips Add quote functionality on your website to give customers a ballpark estimate prior to contacting you for a firm quote. Track your time carefully for large projects to get better at quoting and provide your customers with detailed information when it’s time to invoice. Upgrade to Sage 50 Premium Accounting or Sage 50 Quantum Accounting to easily track project costs so you can quickly determine job profitability.
↧