Quoting can be considered a bit of a dark art, but if you do it thoroughly and well your conversion rate should go up. Here are some pointers:
- Think about pricing
Because a price quote is legally binding, think carefully about every quote you supply. Here are some points to consider when it comes to pricing strategies:
- Do you fully understand the requirements?
If you have any doubts, go back and talk to the client. Make sure you know exactly what’s involved. Otherwise you can’t price it properly.
- Can you meet the deadlines?
If the work must be done in a specific time period, do you have the resources? Don’t over-commit yourself or your staff, or you may have to pay extra for temporary workers.
- Are your prices up to date?
Check your fixed and variable costs, including materials and labour. Remember to take everything into account, including currency exchange rates. These can and do change, which might affect your prices.
- Have you included a fair profit margin?
You’re in business to make money, so your quotes need to take that into account. You wouldn’t make this obvious, of course, but your pricing should include a sensible profit margin.
- Ensure your quote is properly constructed
Make a good impression. Keep it clear, professional and comprehensive. Maybe surprise your client by adding a bit more value than they expect. Include a call to action at the end, with a simple acceptance process. The better your quote is constructed, the more likely you are to make the sale – the first time.
- Send your price quotes within 24 hours
Strike while the iron is hot! If a customer asks for a quote, get it to them quickly to reinforce their decision. Consider using cloud accounting software to quickly prepare and send your quote after a sales meeting.
- Use a quote engine on your website
Why not do business while you’re asleep? You can’t always be available to respond to customers, so adding a tool to your website can save you time. This works best for simple, fixed-cost quotes.Follow up within two to three days.
- There’s no perfect time to follow up. It depends on your line of business. But it doesn’t hurt to be prompt. Send a quote by email, then follow up with a phone call after a day or two to check that it arrived. You can use this call to find out if there are any issues or queries. Doing this will keep you in your client’s mind. It shows that you’re keen and improves your chances.
- If you’re not converting quotes to sales, find out why
Ask questions! If a customer rejects your quote, ask them politely for the reasons. Use that knowledge to improve your sales and quoting processes.
You can use quality accounting software to measure this part of your business. Track the quotes you send, find out what proportion are accepted, and analyse the ones that aren’t.
- And finally, make sure you quote for every enquiry. The more you quote the more you will convert!