What Is an Estimate? A Simple Guide for Home Service Providers

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How often do you send accurate estimates to potential clients? It may seem like a lot of administrative work, but estimates are an easy way to convert leads into paying customers.
Keep reading to learn how estimates can help your home service business grow and how estimate software is the key to this success.
What is an estimate?
An estimate is an outline of the expected cost of a job. If a client wants to know roughly the cost, send them an estimate.
Some services have a fixed price, so it’s easier to provide an estimation. These are often sent for free. Others need research and approximate calculations for a more accurate estimate. Consider charging for it if it takes a lot of time or resources to put it together.
Home service providers use “Estimate” and “quote” interchangeably. An estimate is legally binding only if it includes a cost breakdown, terms and conditions, and signatures. They’re also different from proposals and bids.
How estimates benefit your home service business
1. Plan and budget more accurately
Estimating costs helps assess the overall project scope and finances. Even a rough estimate allows you to predict material costs, labor costs, and accurate timelines. Project management becomes more manageable. Over time, you can calculate a project’s overhead cost against your profit margins.
Not sure how to calculate an accurate quote? Jobber’s Free Service Price Calculator can help!
2. Set clear expectations
An approximate cost sets clear expectations for what a client can expect to pay. It provides relevant information so they can make informed decisions. They may stick with the base quote or upgrade it with optional add-ons. These details are why an itemized quote is important.
3. Show transparency in pricing
A detailed estimate shows you’re a transparent provider. No hidden fees or surprise costs are popping up. This commitment to openness improves trust in your business and overall reputation.
4. Land more clients
Sending automated quotes is a quick and easy way to communicate job details with prospective clients. Providing valuable information lets them decide if they want to hire you.
Your estimates become jobs, generating more revenue for your home service business once work is completed and invoices are paid.
What to include in an estimate
Not sure what kind of information to include? Let’s review this example:

Based on this example, include the following when you write your quote:
- Your business name and contact information, including address, phone number, email address, and website
- The client’s name and personal information, including address and contact information
- An estimate or quote number
- The date the estimate was originally sent
- A detailed breakdown of products and services with costs for each—include what the client requested and other items for upselling
- A total cost, including a tax breakdown
- A deposit amount to secure the estimate/quote
- Terms and conditions (also called an estimate disclaimer)
- Space for signatures (from both the home service provider and the client)
Use your original estimate as a template for future clients. It’s easy to swap out information and add new sections as needed.
Don’t send a deliberately low quote. Tricking potential customers into thinking a project will cost less is frowned upon, and you’ll lose credibility and trust in clients. Always send an approximate calculation and communicate realistic project costs.
How does estimate software help home service businesses?
Estimate software improves your workflow and smooths business operations. You’re busy enough trying to run a business, so let software like Jobber help with the following:
1. Send estimates fast and efficiently
Send quotes automatically via email or text. Fill out the information, add optional line items, and quickly follow up if you haven’t heard back. Once a client approves the quote, you can schedule the job and send notifications back to the client.
2. Keep project details organized
Need to pull up an invoice number? Does a client want to know what optional add-ons you quoted them for six months ago? No problem. With estimate software, project details are recorded and organized.
3. Provide better customer service
Your customer service should be as good as your work. Customers can easily view their quotes, approve or request changes, see scheduled work, and make payments.
4. Get paid on time
Automating your workflow means fewer late payments. There’s no waiting for checks in the mail, countless manual follow ups processing credit cards, or following up in person. Payment options are direct, quick, and simple to manage.
For more information on how to put together effective estimates, check out these industry guides:
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