Pricing in writing.
WHAT A QUOTATION IS
A fixed price for defined work.
WHAT AN ESTIMATE IS
An approximation, subject to change.
WHY THE DISTINCTION MATTERS
One binds you and one does not.
WHAT TO STATE EXPLICITLY
Which it is.
WHAT TO INCLUDE
What is covered, specifically What is excluded The price, and whether tax is included Payment terms Validity period Assumptions relied on
WHY ASSUMPTIONS MATTER
If they prove wrong, the price changes, and the document should say so.
WHAT EXAMPLES LOOK LIKE
That the client provides content by a date That existing systems work as described That no more than a stated number of revisions apply
WHAT A VALIDITY PERIOD DOES
Prevents acceptance months later at an outdated price.
WHAT TO STATE ABOUT CHANGES
That work outside the scope is quoted separately.
WHY
It is where disagreements occur.
WHAT TO AVOID
Round numbers with no breakdown, for substantial work Prices given verbally Vague scope
WHY VERBAL PRICING FAILS
It is remembered differently.
WHAT TO DO IF ASKED FOR A FIGURE ON A CALL
Give a range, and follow with a written quotation.
WHAT TO KEEP
Every quotation issued.
WHAT TO DO ON ACCEPTANCE
Confirm in writing what was accepted.
