What is an Itemized Quote & How Can it Help Your Business?

What is an Itemized Quote & How Can it Help Your Business?

What is an Itemized Quote

These days, when it comes to hiring service professionals, clients have a wide variety of options to choose from to meet their specific needs. From reputation to affordability and quality assurance, there is one thing that all clients are looking for… a service provider they can trust.

One of the best ways to establish trust is through transparent pricing outlined in an itemized quote. Here’s everything you need to know about leveraging itemized quotes to grow your business. Interested in learning more about Housecall Pro’s estimating features? Click here.

What is an Itemized Quote?

An itemized quote is a line-by-line breakdown of the requested service cost. While an itemized quote might not account for every last part and labor mark-up, it should provide enough clarity for the client to understand what they are paying for.

Why is an Itemized Quote Important?

Gone are the days of lump sum pricing. Clients want transparency and the freedom to compare costs. Providing an itemized quote empowers clients to make an informed decision about the professionals they hire. Itemized price quotes are quickly becoming an industry standard, making them essential to stay competitive.

What Should Be Included in an Itemized Quote?

Itemized quotes follow a simple formula, but depending on your profession, you may want to elaborate further. Here are a few examples:

  • Services requested: Document the reason for service to avoid having to decipher that information from the itemized quote in the future.
  • Equipment & materials: List the most relevant materials for the job. Chances are, if you’re working up an itemized quote, your client is not expecting every last tiny component. Listing major parts and equipment is usually sufficient.
  • Installation & labor cost: Oftentimes labor is noted as a lump sum, but you should list additional labor if a second technician or subcontractor is needed.
  • Permits & disposal fees: Any permit fees associated with the job should be included in your itemized quote. Also include any cost related to the removal and disposal of materials, parts, and equipment.
  • Miscellaneous costs: It helps to know what additional work is needed that falls outside the scope of the major parts and labor. This could be code upgrades to pass inspection, refrigerant recapture fees, carpentry related to access, etc.
  • Warranties and Guarantees: Clients want to know how long their service is good for – whether that’s a guarantee on parts and labor or the manufacturer’s warranty for their new appliance.  
  • Upgrades & add-ons: Consider the itemized quote an opportunity to promote a system or service upgrade. Whether it’s tune-up and maintenance service, an extended warranty on parts and labor, or a higher-end model of equipment, let the client know they have options.
  • Call to action: Use this chance to promote your company newsletter or social media accounts. 

How Can an Itemized Quote Help My Service Business?

Clients aren’t the only ones who benefit from itemized quotes—they can also help your business in many ways.

Stay organized – Itemized quotes prevent duplicating work when a client returns to utilize your services.

Ensure consistency – Clients who are satisfied with your services are likely to refer someone they know, and providing an itemized quote guarantees the same experience from one client to the next.

Boost reputation – No one wants to get caught off guard by hidden costs and fees. When a business is straightforward with its services and pricing, you’re likely to make a reputable impression.

Business forecast – When a client agrees to and signs off on an itemized quote, you can anticipate and budget for future business endeavors.

Lead generation – Clients want to work with companies that value their business, and itemized quotes can serve as a way to turn those warm leads into a profit.

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How Can I Create an Itemized Quote?

Not sure where to begin? No problem! There are many resources available to create itemized quotes for your clients.

Itemized Quote Templates 

One way is to use a business estimate template. Housecall Pro offers a free itemized quote template to help get you started today.

Business Quote or Estimating Software

Turn those itemized price quotes into paid invoices with the Housecall Pro customizable service estimate software. Service businesses can keep their estimates in one centralized location and maintain price accuracy easily while in the field using the Housecall Pro field service mobile app.

Trade-specific Software Options 

While most service businesses operate similarly from one company to the next, it helps to have resources that are specific to your business niche. Housecall Pro offers trade-specific HVAC estimating software and plumbing estimating software, making it even easier to deliver quality service to your clients.

Best Practices for Effective Itemized Quotes

While itemized quotes may seem relatively straightforward, here are a few tips for maximizing their potential.

Details, details. Don’t underestimate your clients’ desire to know the facts. Include specifications, dimensions, model numbers, shipping time, you name it. The time it takes to document a thorough explanation is well worth the clients’ satisfaction you’ll receive in return.

Keep it concise and be clear with your descriptions. Try not to use terms or acronyms that only industry professionals would know. It’s important to find a balance between communicating what’s necessary without confusing your client.

Accuracy is key, especially when it comes to pricing. Always ensure your information is current to avoid a pricing pitfall. This also applies to the estimated completion time. If a client gets a quote to replace their air conditioner at the beginning of spring but doesn’t book until mid-summer, the completion time may vary drastically.

Add disclaimers to protect your business. Prices change along with part availability and shipping times. Safeguard your itemized quote by mentioning that information is subject to change and that the quote is based on the service requested in the event something unexpected comes up and falls outside the scope of the requested service.

Get a signature before starting any work to ensure you and your client are on the same page. Just make sure to communicate and include the information on the invoice if additional work is required.

Close the loop with your future clients by following up if they haven’t booked their services yet. Take this opportunity to let them know about any additional maintenance or preventative services to tackle potential problems before they arise.

Expanding your business can feel challenging, but it doesn’t have to be. Show your current and future clients that you value their time and money by providing them with an itemized quote and see how quickly your company grows.

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Housecall Pro
Solutions for your business Whether you need to improve dispatching, reduce paperwork, increase workforce or grow revenue, we have a solution.

Housecall Pro

Solutions for your business Whether you need to improve dispatching, reduce paperwork, increase workforce or grow revenue, we have a solution.