A price quotation is a formal statement from a seller to a potential buyer that outlines the prices for specific goods or services. Quotes usually include detailed information about the items or services, pricing terms, quantities, delivery schedules, and payment terms. A price quotation is typically valid for a specified period and allows the buyer to decide whether to proceed with a purchase.

Below, we’ll explain what information a price quotation should include, how to create a professional quote, and how Stripe can help you manage price quotations.

What’s in this article?

• What information should a price quotation include?
  
• How does a price quotation differ from an estimate?
  
• How can you create a professional price quotation?
  
• How should you handle revisions to a price quotation?
  
• How Stripe can help manage price quotations
  

What information should a price quotation include?

Price quotations are generally solicited by potential buyers. The buyers will be looking for particular details to inform their decisions. Include the following:

• Item description: Detailed information about the goods or services

• Pricing: Unit price, total cost, and any applicable discounts or taxes

• Quantity: The amount of goods or scope of services covered

• Validity period: The time frame during which the quoted prices are valid

• Delivery details: Expected timelines and conditions for delivery or completion of services

• Payment terms: Payment methods accepted, due dates, and deposits required

• Other terms: Any special conditions, warranties, or exclusions

How does a price quotation differ from an estimate?

A price quotation and an estimate both provide potential buyers with pricing information, but they serve slightly different purposes in business transactions.

Price quotations are formal, fixed offers that specify the exact cost of goods or services. These numbers are typically binding: once the buyer accepts them, the seller is obligated to deliver the goods or services at the quoted price. The prices offered are precise and based on a thorough understanding of the scope of work or specifications, and the document includes comprehensive terms such as quantities, payment terms, and delivery schedules. Price quotations are best suited to situations where the scope of work or requirements are well defined.

In contrast, estimates are an approximate calculation or rough idea of the cost of goods or services. These numbers are generally non-binding; the final cost might shift based on unforeseen factors or changes in scope. The numbers included are less precise and often based on preliminary or incomplete information, and the document might not include detailed terms. Estimates are commonly used in the early stages, when the project or requirements still need to be fully defined.

How can you create a professional price quotation?

A price quotation should be direct, engaging, and customised to your client. Before you draft a quotation, ensure you understand the client’s goals. For example, if they’re ordering chairs, what’s the priority – style, durability, or price? If you offer a service, what outcome matters most to them? Demonstrate that you understand these preferences in your quotation. For example, you might say:

• “Hi [Client’s Name], thanks for giving us the chance to help with [specific need]. Based on your priorities, I’ve prepared this quotation to meet your needs.”
  

It’s also wise to mention specific details you’ve discussed. For instance, you could write:

• “We selected these materials based on your desire for high durability in a shared workspace.”
  

You should also be willing to adjust your terms and conditions to meet the client’s needs. For example, you could mention:

• “Delivery is included, and you can expect it within five business days after confirmation.”

• “If there’s a specific payment schedule you’d like to discuss, we’re happy to accommodate.”

Use a logical structure to outline the details of the quote. Include a concise, bulleted summary of the key items or services you’re providing, a short note that explains how they solve the client’s specific needs, and a table that breaks down the costs. This is what the structure might look like:

Ergonomic Office Chairs (10): These are designed to boost comfort for long work
hours.

Assembly Service: Our team will handle setup to save you time.

These chairs fit your budget while offering excellent support to meet your team’s wellness goals.

Use the space under your price table to address why your products or services are worth the cost. Here’s an example:

• “This solution not only stays within your budget but also includes a three-year warranty and same-day assembly to minimise downtime.”
  

Finally, when you sign off, avoid generic phrases such as, “Please confirm acceptance.” Instead, make it easier for potential clients to say yes:

• “Let us know if you’d like to move forward by replying to this email or giving me a quick call at [phone number]. We can get started as soon as you’re ready.”
  

If there’s a deadline, frame it as an opportunity:

• “This pricing is valid until [date]. So if you confirm by then, we’ll lock it in for you.”
  

After you send the quotation, offer a value proposition in your follow-up, such as the following:

• “Just wanted to contact you to see if you have any questions about the quotation – happy to walk you through it if needed.”

• “If there’s anything you’d like adjusted, let me know. I’d be glad to revisit the details.”

This makes the follow-up feel like a continuation of the service you’re already providing.

How should you handle revisions to a price quotation?

Revising a price quotation is a chance to show your client that you’re flexible, attentive, and on their side. Here’s how you should make changes to a quote.

Start with empathy

When a client asks for changes, acknowledge that they’re likely trying to balance their needs, budget, or timeline. Respond with a tone that says, “We’re here to make this work for you.” For example, you might write:

• “Thanks for getting back to me with your feedback. I totally understand that priorities shift, and I’m happy to adjust this quote to better meet your current needs.”
  

This sets a collaborative tone and reassures the client that you’re paying attention.

Clarify the revision

Sometimes, clients aren’t 100% clear about what they want adjusted. It’s your job to get the details. Ask thoughtful, open-ended questions such as the following:

• “Is the change related to the overall budget, specific items, or timing?”

• “Would you like me to explore any cost-saving options or are there any specific add-ons you’re considering?”

This can prevent missteps and demonstrate your investment in crafting a solution that works for the client.

Explain why you’re making changes

If the revisions result in a different price or timeline, explain the reasoning so it feels intentional. Here’s an example:

• “Adding 5 extra units to your order reduces the unit cost by 10%, which brings the new total to £3,250. It’s a better price per unit, although it will extend delivery by an extra two days because of stock lead times.”
  

This makes it clear you’re fine-tuning the deal to benefit them, not arbitrarily adjusting numbers.

Make adjustments stand out

The last thing clients want to do is hunt for changes in a document. Call attention to the revisions you’ve made with bold text, comments, or a short summary at the top of the document, such as the following:

• “Revisions: Updated quantities to 20 units, adjusted total price, and new delivery timeline of 20 December.”
  

Name the file something unmistakable, such as “Quotation-123-Rev2,” so it’s easy to reference and it’s clear that it’s the revised quote.

Turn revisions into opportunities

Revisions are golden opportunities to strengthen the client relationship and upsell (if appropriate). For example, if the client has reduced their order size, you could say:

• “I understand you’ve adjusted the quantity to fit your budget – that makes sense. Just so you know, if your needs grow in the future, we can offer this same discount on repeat orders.”
  

If they’re increasing their order size, you might suggest complementary items or services:

• “Since you’re ordering more, it might be worth considering [additional item]. I’d be happy to include it at a discount.”
  

This shifts the tone from reactive to proactive and shows you’re thinking ahead for their benefit.

Be personable in your communications

Send a personalised update rather than a revised document with a dry “here’s the update” message. For instance, you might say:

• “Hi [Name], here’s the updated quotation based on the changes we discussed. I adjusted the pricing to reflect the larger order and included a faster shipping option since I know timing is tight. Let me know if there’s anything else you’d like me to tweak!”
  

This makes the process feel less transactional and more collaborative.

Follow up with intention

Once you’ve sent the revised quote, follow up with purpose. Instead of saying, “Did you get the update?” try saying:

• “Hi [Name], I wanted to check in to ensure the revised quotation is in line with your needs. If there’s anything else I can clarify or adjust, just let me know. I’m here to help.”
  

This keeps the conversation alive and positions you as a reliable partner.

How Stripe can help manage price quotations

Stripe empowers you to create and manage price quotations. Here’s how it can help your business:

• With Stripe, you can draft detailed pricing quotations and estimates for your customers that include any applicable discounts or taxes for both one-time and recurring charges. Once finalised, these quotes can be sent directly to customers.

• After a customer accepts a quote, Stripe can convert it into an invoice or subscription. This integration creates a smooth transition from proposal to payment.

• You can use Stripe to track the status of each quote, from draft to finalised, accepted, or cancelled. This visibility helps you manage customer interactions and see where each potential sale stands in the process.

• You can customise Stripe quotes with custom headers, footers, and memos to match your brand and address specific customer needs. This adds a personalised touch to your communications.

• Stripe quotes integrate with other solutions, including Billing and Invoicing. This creates a unified platform for managing customer transactions throughout the quote-to-cash process.