Originally published in September 2020. Last updated on December 4, 2024.
Think quotes and proposals are basically the same thing? Then you could be missing out on winning more jobs.
The main difference between a proposal and a quote is that proposals have flexible pricing that can change based on project scope, material costs, or client preferences while quotes typically feature fixed prices for straightforward services.
For example, a proposal could be sent to a client who wants a unique water feature built in their garden while a quote would work well for mowing a lawn.
If you don’t use the right one at the right time, you risk losing potential clients by not tailoring your strategy to their needs.
Use this guide to learn when and how to use a proposal vs quote to generate more revenue and grow your service business.
Grow your business with quotes and proposals:
What is a quote?
A quote is a document that outlines the total amount due for a specific service.
Most quotes include:
- Company and client information
- A quote number and date
- An expiry date
- A description of each product and service the client will be charged for
- How much each line item costs
- The total due if the quote is approved, including taxes, discounts, and fees
Quotes are best for pricing strategies built around standardized services and one-off jobs where the project scope is clear, like house cleaning, dog walking, or lawn care.
What is a proposal?
A proposal is a comprehensive document service providers use to outline the costs associated with a custom or complex job.
Proposals usually cover:
- A description of the project scope
- A timeline for when the work will begin and end
- What materials, labor, and equipment will be required
- An estimate of how much each product, service, or material will cost
- What the client’s responsibilities are, such as site access
- Disclaimers and payment terms
- Testimonials from previous clients
- Pictures or descriptions of similar work you’ve done in the past
- Clear next steps, like signing off on the proposal or scheduling a meeting
Detailed proposals are used for unique jobs that require in-depth planning, flexible pricing, and longer timelines, like renovation projects, HVAC system installations, or hardscaping.
Who should use a proposal vs a quote?
Many service businesses use both proposals and quotes depending on the client’s needs.
For example, a cleaning business may use a quote for a residential client who needs a straightforward cleaning, but a proposal for a commercial client who wants them to clean an entire office building on a recurring basis.
That being said, some industries use quotes or proposals more than others based on the work they typically do.
Who should use quotes?
In general, quotes tend to work well for:
- Cleaners
- Lawn care specialists
- Pet services
- Window washing
- Pressure washing
- Handyman services
- Painters
- Appliance repair technicians
Who should use proposals?
Proposals work best in industries with varied and unique job scopes, like:
- General contracting
- Landscaping
- Construction
- Custom carpentry or flooring specialists
- Roofing
- Fence installations
- Large electrical and plumbing jobs
What about estimates and bids?
In service industries, estimates and bids are also common. But whether you use them depends on what you offer.
Estimates are rough ballparks of how much a project will cost. For them to be legally binding, they must include specific elements, like a description of each service and its costs as well as a place for the client to sign.
Estimates work well when you want to give a client a price range before you visit a job site so they can decide whether it fits into their budget, or when a client asks you for a number upfront.
For example, if a customer needs a general idea of how much it will cost to have their deck pressure washed before you have a chance to calculate square footage or evaluate its condition.
Any homes over 3,000 square feet, we try and make in-person appointments with. Anything smaller than 3,000 square feet, it’s going to be a remote estimate
Bids are typically only used for competitive commercial or government jobs, like construction or excavation. They include details similar to a proposal but usually include a fixed price.
For example, a general contractor might submit a bid to a commercial client to build a new apartment complex.
Bids are submitted by multiple contractors at a time and the client chooses which one they want to work with based on factors like the price and timeline.
How to make a quote
While you can write a quote yourself using a word processor, quoting software like Jobber is a better option because it reduces human error and ensures your numbers and job details are correct. Jobber quotes include professional designs and custom branding to boost your professionalism and make a great impression.
With Jobber’s quotes, you also have the option to attach photos, add tiered pricing, and get online approvals from clients—saving you time and boosting your chances of winning more jobs.
Quotes should always be sent digitally unless the client doesn’t have access to email. Mail takes longer, is easier to lose, and can be damaged. Plus, digital quotes are typically easier for clients to review and sign off on since they can be accessed from anywhere.
Quote best practices
If you decide a quote is the best option for a job, use these tips to win more jobs:
1. Send quotes on time
Quotes should be sent within 24 hours of visiting a job site. If you send them too late, the client might think you forgot about them and choose a competitor instead.
2. Itemize your products and services
Itemized quotes help clients see exactly what each product or service costs, promoting transparency and trust. It’s also a good way to show them where they can adjust costs if they need it to fit into a specific budget. For example, by choosing more affordable materials.
3. Include different pricing options
Good, better, best pricing shows clients what options they have when it comes to budgeting for your services. That way, they can decide whether to go with the most cost-effective or premium service based on their needs and budget.
I like being able to have an anchor item like ‘Hey, we’re going to wash your house’, and then having optional line items they either choose or not choose. It automatically tallies at the bottom and it’s a very intuitive way to make quotes dynamic. You can turn a $500 job into a $2,000 quote.
4. Follow up
If you don’t hear from a client after sending a quote, don’t write them off just yet. Emails can get lost in overflowing inboxes or junk folders, and clients can get busy and forget to respond.
A simple quote follow-up can be all it takes to get the client to send their approval. With Jobber’s quoting software, you can automate follow-ups so they run on autopilot while you focus on more important tasks, like generating leads.
How to make a proposal
You can make your proposal manually using Microsoft Word or Google Docs, or you can use Jobber’s free proposal template.
You can provide proposals to potential clients either through email, in person, or a mix of both.
What you include in your proposal will depend on the project, the client, and your industry.
Proposal best practices
No matter how you make your proposal, be sure to follow these tips to boost your chances of signing a contract:
1. Customize it
Each proposal you send should be unique to the job and client. Make sure to personalize it as much as possible by referencing their unique pain points and including relevant and similar work you’ve done before.
2. Use a professional layout
To make the best impression, use a professional layout for your proposal. Include a cover page with your logo, a table of contents outlining each section, and your branding colors throughout.
3. Feature flexible pricing options
Proposals aren’t meant to be set in stone. They’re typically used in projects where material costs, labor, and scope are hard to predict, making them challenging for customers to budget for.
To make things easier for them, provide different pricing options. For example, for a major remodel, you could show them pricing for different types of materials, like flooring, from the most to least expensive.
That way, the client can choose what they want based on their needs.
4. Sell yourself
A proposal is an opportunity for you to persuade a client you’re the best contractor for the job. Highlight the expertise you bring to the table and focus on the value you offer as well as the benefits the client can expect from working with you.
5. Send them to the right clients
Not every client needs a proposal. You may want to send one when:
- A client tells you they’re getting quotes from multiple service businesses
- A client asks for a formal proposal after you visit a job site
- You want to win a job and hope a professional proposal will tip the scales in your favor
6. Include the next steps
Tell the client what happens next, whether that means having them sign a contract, meeting to review the proposal, or visiting the job site to go over project details.
Make sure to provide your contact information as well, and encourage them to ask questions if they have any. If they aren’t ready to move forward right away, keeping the lines of communication open will make them more likely to reach out when they are.
Winning more jobs with proposals and quotes
Quotes are perfect for basic, one-off jobs that are already outlined in your service business’s pricing. Proposals, on the other hand, work best for unique jobs or when you’re competing with other businesses to win a contract.
By using both based on the client’s unique needs and the job in question, you have a better chance of winning more jobs and boosting revenue. Make sure to approach each job individually and consider which option is the best fit to turn more leads into customers.
And save time, impress clients, and win more jobs by using field service management software to schedule work, send invoices, and collect online payments once your quotes and proposals get approved.