How to Make a Quotation for Software Project?

Quotation is the first formal document presented by software project service provider to a prospective client. It is very important to get it right. Let us look at how to make a quotation for software project that helps you close deal faster.

Sending the software project quotation at the earliest possible time

Timing of sending quotation to your client plays a great role in moving your name from prospective list of just another vendor to vendor under evaluation. Always try to send the quotation immediately after your first communication with client. Even better would be to share the quote in the same first meeting, if possible. You can be prepared to create quotations instantly based on your client’s requirement if you are equipped with right tools for writing a professional quotation. This brings us to the next key question of choosing a template for creating quotation

Choosing the right software project quote template

It is important to choose or create a template that is customized for your software project business vertical. Please make sure you choose a template that is detailed yet simple to understand. It should have clearly defined sections for providing various details of the quotation. Once you have finalized the template the next step is to include all the information that you need to provide in your quotation so that your client can quickly take a decision.

Include the following in your software project quotation

- Your business name & logo

Include the legal name of your business or your name, in case you are operating as a freelancer. Also include your logo, if you have one.

- Your address

Provide address for communication. In case the address for correspondence is different then please mention it. Along with the address provide other contact information such as your official email and contact number.

- Quotation number

Add a unique quotation number so that the document can be easily referenced in communication with your client.

- Quotation Date

This is the date on which the quotation is created and issued.

- Name & address of your client

Add name of your client along with the address & any tax identification number, if applicable.

- Description of the software project service

This is the most important section, please fill this carefully and double check. Here is where you provide the details of products & services you intend to sell against your client’s requirement. Clearly mention the total price and include any applicable taxes.

- Terms and conditions

Include all the terms and conditions applicable for the quotation. Also provide the validity of the software project quote, example: a quotation could be valid for 2 weeks or 30 days etc.

Please make sure you include all the above listed items when you are writing a quotation. Some of the above information can be prefilled and can be kept ready in a template, which can be reused.

Best time to follow up on software project quote

Give your clients a few days before you follow up on the quotation. At least 3 business days is good. If your client has already promised to revert to you on a certain date then you may send a gentle reminder email a day before the date. Email is generally the preferred channel for reminder or follow ups. You may also make a call if there is no response for your email.

Written approval of quotation is better than verbal consent

When you receive the good news of acceptance of your software project quotation try to formalize the acceptance by requesting your client to send an approval email or get the quotation signed. You can consider the option of e-signature/digital signature, if that is convenient for both you and your client. Make sure you don’t start your work just based on the verbal consent as it will not serve your purpose in case there is arbitration.

Sending a software project quotation is better than sending an estimate

While you can either share a software project quotation or an estimate with client when you are bidding for the job, it is better to share a quote instead of an estimate. To understand why quote is better you have to know the difference between the two. A quotation is an agreed fixed price vs. an estimate is approximate price that may change. With quotation client precisely know what he/she has to spend for the job, so it is always good to share a quote if possible. Only when you are unable to be precise about the cost for a job you may share an estimate.

Conclusion - make a perfect software project quotation that is accepted

Making a quotation may appear to be a simple task however just creating the quote is not enough. As a business owner or service provider you need to make sure your timing is correct when you share the software project quote, ensure timely follow-up and seek a written approval or acceptance of the quote when the deal is closed.