QuoteMan | Quotation making software | Quotation Management: Best Practices for Small Business

There are some practical practices for quotation management for small ventures that are realistic and easy to implement.

1. Create Clear and Transparent Pricing

Vague pricing is a silent deal-breaker. Customers want to be able to understand clearly what they are paying for. If they don’t understand, they cannot enter a deal with certainty.

Best way to avoid such ambiguity is to:

a) Break costs into clear line items.
b) Avoid lump-sum pricing.
c) Avoid hidden charges at all costs. Make all costs visible.
d) Provide clear item specifications & description with images and technical specification and graphs.
e) Clearly mention the terms and conditions such as:

(i) Taxes,
(ii) Discounts,
(iii) Delivery charges,
(iv) Installation charges,
(v) Product warranty & guarantee,

(vi) Maintenance charges,

(vii) Renewal charges,

(viii) Packing & forwarding charges,

(ix) Quotation validity,

(x) Delivery period,

(xi) And others that may need to be added

With a clear pricing, building trust gets easier. Confusing quotes leave your customer in doubt and mistrust. One should also mention the contact details in the quote to give way for future communication.

2. Standardizing your Quotation Format

A common mistake by businesses is sending different looking quotes frequently. Changed layout, format, font style and even the mode can make your business look unprofessional. All the quotations sent out should have your business logo, company name, GSTIN and contact details, along with client’s business name, contact person name, address, list of products/ services, validity period, payment terms, taxes, discounts and total amount. Everything should be mentioned from the get go.

A standard quotation format helps in making your business look:

a) Professional and credible.
b) Consistent across all customer interactions.
c) Like you are avoiding missing even the smallest details.

3. Setting a Defined Approval Process

It is not uncommon in small businesses for quotations to be created by different people. This often leads to pricing errors, incorrect discounts or poor commitments.

It is best for a company to pre-set:

a) Quotation format
b) Set structure of item details.
c) Another person to approve it. (To double-check)
d) Discount limits for each role.

4. Tracking every Quotation

Knowing what happened to each quotation helps in reigning in the businesses many-folds. The gap of not knowing what happened to the quotation is business loss.

Tracking quotations helps in:

a) Following up at the right time
b) Identifying the pricing
c) Tracking customer behavior
d) Measuring sales team efficiency
e) Closing deals faster

5. Follow-up But Don’t Intrude

Sending a quote and waiting silently is not the right way, but calling up too often or following up too closely may also annoy the potential clients.

The best practice is to:

a) Send a gentle follow-up in 2-3 days with the reference number and other details clearly mentioned.
b) Also asking if they need any clarifications or modifications.
c) Following up on the customer-designated date and time
d) Building a rapport doesn’t hurt in the longer run

6. Define Quotation Validity Clearly

Prices change and quotes fluctuate. This is often not considered by small business owners. Such negligence either leads to loss in business or the loss of a potential client that could have been avoided has the details been mentioned clearly.
Mentioning the validity date or period protects margins and avoid discrepancies later.

7. Learn From Past Quotation Data

Your past quotations are goldmines of business insights. Reviewing them frequently can help you.

a) Understand your products/ services better – what converts most, which one doesn’t.
b) Understand the seasonal trends. So you can be better prepared next time.
c) Understand customer behavior – who takes quotation for rate comparison and who is actually interested.
d) Gauge your team’s efficiency.

8. Take Help of Technology where it Makes Sense

A small business may not need to invest in a high-end business software. But depending solely on manual systems may not be the best idea too. A quotation management software like QuoteMan can

a) Help you in reducing manual errors
b) Store, track and manage your quotes centrally
c) Auto-generate professional quotes

The right tool saves time, improves accuracy, and allows small business owners to focus on growing their business rather than chasing endless paperwork.

Conclusion

A Quotation Management Software is not just another software. It is a sales enablement engine. It is the foundation to a long lasting and fruitful client relationship. If managed the right way, it crates clarity, builds trust, and increases the conversion rate. For small businesses, these are healthy practices to bring into routine early on to prevent chaos and loss of business. It is true, that every quotation that you send is a part of a bigger story. So it is important to share the snippets right.

Quotation Management: Best Practices for Small Business

1. Create Clear and Transparent Pricing

2. Standardizing your Quotation Format

3. Setting a Defined Approval Process

4. Tracking every Quotation

5. Follow-up But Don’t Intrude

6. Define Quotation Validity Clearly

7. Learn From Past Quotation Data

8. Take Help of Technology where it Makes Sense

Conclusion

If you think about it, a Quotation Management System is not a luxury, but a necessity, and in the long run, it’s more economical and beneficial to have it on board.

Calculate the cost now!

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