Estimates & Quotes
Not all jobs are created equal. That makes it hard for customers to get an exact price and businesses to provide an accurate quote. With that being said, most businesses provide an estimate and estimates are subject to change.
It’s always satisfying to know that when you visit a grocery store, products have an exact price and you can budget your spending. When you visit the mall, the experience will be just about the same as the grocery store. All goods will have a price tag attached to them. However, when you receive a service from any trade, such as plumbing, the price will vary.
An estimate can cause a customer to get frustrated because they can’t get a solid answer.
Estimates are an approximate price that can change. When estimates are given, it is because no two jobs are the same. Estimates are an educated guess where materials, skill, time, and unforeseen issues need to be factored in. All things considered, a company representative will most likely visit the job site and evaluate the service in great detail to provide an exact quotation. Next, the representative will then write up in depth the details of the project and what is to be expected so there won’t be any disputes in the future. This is done for complete transparency between the customer and service provider.
Quotations are also known as an agreed fixed price. When customers need a price, this is the most favorable. Everyone can appreciate a quick answer that is set in stone and will allow the customer to make a decision on the spot. Quotations are most likely on a price list and the service provider can immediately tell the customer what that price includes with the service. If the customer accepts the price, an appointment will be scheduled for the service they are seeking. If there is an invoice price change, it is most likely because other services were added during the job but the initial price of the service in question stayed the same.
Estimates and quotations are easy to understand but there is a thin line between the two. If there is any miscommunication between the customer and the business, a controversy could arise. A customer should always get a copy of an estimate and the business should always get a customer’s signature.
In summary, an estimate is a rough estimation of the price for the job. Getting estimates is another way to find a company that is within your budget and it allows customers to get an idea of what each company provides. A quotation is a fixed set price. There is little to no wiggle room for a lower price when the price is fixed. It is important to respect the prices of all trades as you would for your gallon of milk.