Quote / Estimate

Basics

A document providing a customer with expected costs before work begins.

Detailed Explanation

A quote (or estimate) outlines the expected cost of goods or services before the customer commits to purchase. It includes itemized pricing, descriptions, quantities, and any terms or conditions. Quotes can be binding (fixed price that won't change) or non-binding (estimated price that may vary). They help customers compare options and budget for expenses. Once a quote is accepted, it typically leads to a purchase order or contract, followed by invoicing after delivery.

Examples

  • A contractor provides a quote for home renovation work
  • A graphic designer sends a quote before starting a logo design project

Related Terms

Pro Forma Invoice Invoice Purchase Order (PO)

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