Quotes are part of every business relationship. They form the basis for clear agreements between suppliers and customers and play a key role in the smooth running of day-to-day business.

In this article, you will learn what a binding quote should contain – according to the mandatory information – and how to implement this with precise wording in a clear structure.

What’s in this article?

• What is a quote?
  
• What mandatory information should a quote contain?
  
• What does the structure of a quote look like?
  
• Example sentences for the wording of quotes
  
• How Stripe can help you create quotes
  

What is a quote?

A quote is a legally binding declaration and the basis of a potential business relationship. It provides specific goods, services, or benefits under specified terms and conditions and is designed to inform potential customers clearly and unambiguously about prices, services, and terms.

A quote usually contains detailed information about the products or services being offered, their pricing, payment terms, delivery times, and any additional information. It is important that quotes are transparent and unambiguous so there are no misunderstandings.

A quote differs from a simple request or general product description in that it signals a concrete intention to enter into a contract. A non-binding quote merely signals interest in a possible business relationship without any legal obligation to comply with the stated terms and conditions. Such offers are often used to provide guidance and initial information about products, services, prices, and terms. They give you flexibility in uncertain markets and are an official invitation to your business partner to negotiate.

Well-crafted offers help you attract customers and also inspire confidence and professionalism in business communications.

What mandatory information should a quote contain?

A quote must meet certain legal criteria for it to be valid, including completeness and clarity. You should word it as precisely as possible to minimise questions and facilitate the conclusion of the contract. A quote can have a deadline so the recipient must decide within a certain time. If the recipient accepts the quote too late or with changes, you should prepare a new quote. If the recipient accepts without changes, you can create a binding contract.

The required information ensures transparency and legal certainty for you and your customers. Below you will find an overview of what content and mandatory information a quote should contain in Germany:

Addresses of the parties

In business transactions, including offers, a business must provide correct company information, legal form, and registered locations on commercial correspondence. Therefore, your quote should include your full name as well as your address or that of your company. The same goes for your potential customers. You should include the recipient’s full name and address. The General Data Protection Regulation (GDPR) must be observed when collecting and processing the personal data of potential customers.

Description of service or product

Provide accurate specifications for the goods or services you are offering. This includes quantities and additional information such as dimensions, material, or technical details. It is important that this information is as accurate as possible so your customers know exactly what to expect.

Price quotation

Your quote should include both unit prices and the total price of the products or services you are offering. You should make it clear whether value-added tax (VAT) is included or whether it has to be paid separately. According to the Price Indication Ordinance (PAngV), prices must be transparent and include VAT if the quote is directed at individuals. If you want to offer discounts or special conditions to your customers, you should also include this. The same applies to any additional costs such as delivery charges or shipping.

Specification of payment terms

The payment terms are also an important component of your quote. You should consider what payment terms you want to allow. For example, you might want your customer to pay immediately upon delivery or within 14 days. You should also consider what forms of payment you’ll accept. Information about late payment interest or reminder fees is not mandatory, but it adds transparency.

Terms of delivery

To let your customers know when or by when you will deliver your service, specify a delivery period, date, and location. For large products, for example, it is important to state whether the product will be delivered free or picked up at the buyer’s expense. Also include details of shipping costs and conditions.

Quote validity period

Set a clear deadline for the validity of the quote. This will help your prospect make a decision and give you peace of mind. For example, if prices at supplying companies change after the quote has expired, you can include this in a new quote.

Legal notice

If you use general terms and conditions, they must be easily accessible and transparent according to Section 305 of the German Civil Code (BGB). A reference to the terms and conditions should also be included in your quote. If you make offers to customers via distance selling (e.g., via an online shop), you must inform them of their statutory right of withdrawal.

Contact person details

In the interest of better service, it is very helpful to name a specific contact person on the provider’s side. This makes it easier for your potential customers to get in touch with someone who is familiar with the topic if they have questions or are unclear. Ideally, you should include a phone number and email address.

What does the structure of a quote look like?

The structure of a quote is based on the required information. This includes a friendly greeting with a clear introduction. For example, you can thank the client for their interest or, if a conversation has already taken place, for the informative exchange. This shows you want to work together, and you can also briefly explain how your offer can help their customers. The goal is to address the recipient directly in a positive way.

Your letterhead should typically include your full name, address, company name, legal form, VAT identification number (if applicable), and commercial register entries. Therefore, it is recommended that you print your quotes on letterhead or use Stripe Billing. With Billing, you can create quotes and invoices quickly and easily. Generate custom payment links, and send them directly to your customers. If your quote is accepted, Billing will automatically convert it into an invoice.

The description of your product or service in the quote should be as precise and clear as possible. If you quote several services, it is advisable to present them in a table overview. This improves readability and clarity. This table is also a good place to include unit prices and the total price.

Next, you can include a list of payment and delivery terms as well as the validity period of the quote. It is not mandatory, but highly recommended, to end with a positive and reassuring message.

Example sentences for the wording of quotes

When writing a quote, you can use standardised sentences and phrases. This saves you time and increases the likelihood that all the important information will be included in your quote. Here are some examples:

• “Thank you for your inquiry. We are pleased to provide you with the following quote.”
  This sentence creates a friendly introduction and signals appreciation. A personal reference – such as a phone call that took place – will further enhance this effect. If the customer has purchased from you in the past, this can also be mentioned to build customer loyalty.

• “We advise you on creating a tailor-made marketing strategy customised to your company goals.” or “We supply you with 50 white chairs (model name).”
  Depending on whether you quote a specific product or service, a clear description of the service is required at this point. For example, for creative services, you might want to specify what rights your client will acquire or how many rounds of revisions are included. You should also include the unit price of the product or the hourly rate for your service. For services whose scope can be planned in advance but is not certain, a note is a helpful guide for your customers (e.g., “Additional work will be charged at an hourly rate of £80 plus 19% VAT.”).

• “The total price is £2,500 including 19% VAT.”
  If your quote is directed at individuals, the price must be stated including VAT. Between companies, it is common to quote the price without VAT. In any case, it must be clear to your customers which prices are being charged for which services.

• “Delivery will take place within 10 business days of placing the order.”
  Setting a clear time frame for delivery builds commitment and trust. The deadline should be realistic. Late deliveries damage your reputation as a business partner. Excessive delivery times make you look unattractive compared to the competition.

• “Please note that this quote is valid until 31 December 2025.”
  A clearly communicated deadline puts pressure on your prospects to make a decision. You can also take advantage of the opportunity to contact them again as the deadline approaches.

• “Please pay by bank transfer within 14 days of invoicing.”
  By issuing clear payment terms, you secure your own financial processes. With Stripe Billing, you can also send automatic payment reminders if your customers are in arrears.

• “Have any questions or require further information? Please feel free to contact us by phone or email.”
  This signals openness to communication and interest in the potential customer. It also reinforces their impression of your customer service.

• “Our quote also includes free support for the first three months.”
  If you can or want to quote additional services, this is a good selling point. By highlighting the additional services and clearly documenting them in the quote, you emphasise the added value of working with you.

• “It goes without saying that we apply the highest quality standards for the production of your product/provision of your service.”
  It can be helpful to communicate your commitment to quality and service, especially when customers are first working with you. This lets your customers know what values are important to you in the relationship. In the best case scenario, these values are also important to your partner, which helps ensure a level playing field.

• “For a binding order, please send us your order confirmation by the above date.”
  This clear call to action provides guidance, reassurance, and accelerates decision-making.

These examples are not exhaustive and can be expanded depending on your industry. All in all, they can help make your quote more precise, friendly, and convincing, while at the same time guiding the recipient to a specific decision.

How Stripe can help you create quotes

Stripe helps businesses create quotes through a variety of tools and features that make the process more efficient and professional.

In addition to the benefits mentioned above, Stripe Billing helps you create quotes and offers multiple payment options. These include one-time payments, recurring payments, subscriptions, and instalment payments.

These options can be integrated directly into your offers, allowing you to offer attractive and flexible terms. For a professional look, you can also customise your quotes to match your company’s corporate design.

If you work internationally and have customers abroad, Billing makes your offers even more attractive by supporting over 135 currencies and several payment methods. In this way, Billing simplifies your quote creation and also optimises your entire payment and administration structure, which saves you time and increases customer satisfaction.

You can also use the dashboard in Stripe to monitor the status of payments and pending offers. An alternative to Billing is Stripe Invoicing Plus, an upgrade to Stripe Invoicing that also allows you to create quotes and offers a variety of payment options and benefits.