Estimate vs quote: what's the difference and which to send

Short answer: an estimate is your best guess at what a job will cost, and the final price can change. A quote is a fixed price for a clearly defined job, usually valid for a set time. Send an estimate when you can't see the whole problem yet, and a quote when you can.

What an estimate is

An estimate is an informed guess based on what you can see: the visible damage, the symptoms, your experience with similar jobs. It protects you when something you couldn't see changes the job: a rusted fitting behind the wall, a bent frame behind the bumper.

A good estimate gives either a range or a clear number with a rule for changes: "If we find more damage, we'll call you with the price before we do any extra work."

What a quote is

A quote is a fixed price for a defined scope. The customer knows exactly what they will pay, and you carry the risk if it takes longer than you thought. Quotes work for jobs you've done many times: replacing a water heater, installing a mini-split, painting three bedrooms, a deep clean of a 2,000 square foot house.

Always put an expiry date on a quote. Material prices move, and you don't want to honor an eight-month-old price.

And bids and proposals?

A bid is a quote submitted to win a job against other contractors, often for larger or commercial work. A proposal is a longer document that explains the approach, the options and the schedule along with the price. For most residential service work, you'll send estimates and quotes.

Is an estimate legally binding?

Neither one is a contract by itself. A quote the customer signs usually is. But some states and trades have specific rules.

One example: in California auto repair, Business and Professions Code section 9884.9 requires the shop to give a written estimate for parts and labor, and it can't charge more than the estimate without the customer's consent. That consent has to come after the shop finds the estimate is too low and before the extra work is done, and an oral OK has to be recorded on the work order with the date, the time, the person's name and the phone number called. Other states have their own rules, especially for auto repair and home improvement contracts.

This isn't legal advice. Check your state's rules for your trade, and get approvals for changes in writing whenever you can.

Which one to send

What to put on an estimate or a quote

• your business name, license number (if your trade has one) and contact details,
• the customer's name, phone and job address, or the vehicle (year, make, model, VIN),
• the date, and how long the price is valid,
• what you'll do, in plain words,
• line items: labor, parts or materials, fees,
• tax and the total,
• what's not included,
• how changes are approved ("we'll call you with the price before any extra work"),
• payment terms and any deposit,
• photos of the problem when you have them,
• a place to approve and sign.

A simple example

Smith Plumbing · Estimate 1042 · Valid 30 days

Not included: drywall repair if the old unit leaked into the wall. Payment: 25% deposit on approval, balance on completion.

(Example prices only.)

How to get more estimates approved

1. Send it the same day. An estimate that arrives three days later competes with two others that arrived the same afternoon.
2. Give options. Good, better and best lets the customer choose how much to spend instead of whether to spend.
3. Show photos. A photo of the corroded valve explains the price better than a paragraph.
4. Write in plain words. "Replace the cracked heat exchanger" beats a part number.
5. Let them approve on their phone with a signature, without printing anything.
6. Ask for the deposit at approval, while they're ready to say yes.
7. Follow up: call after two days and again after a week. An estimate nobody follows up on is often lost by default. A fast first response matters too (see speed to lead).

When the job is done, the approved estimate becomes the invoice. Our guide on how to ask a client for payment covers the rest.

How QuickVOC handles estimates

In QuickVOC the estimate lives on the lead, next to the calls and messages that led to it:

• Build it from your own rates and templates, with line names that fit your trade.
• The customer opens a link, sees the lines and photos, and approves and signs on their phone. The signature, the name and the time are saved with the estimate.
• Collect a deposit at approval when online payments are connected.
• Turn the approved estimate into an invoice in one click when the job is done.
• Send the AI to follow up on an estimate in a short phone call when the customer goes quiet.

See estimates, invoices, online payments and QuickVOC for auto body shops.

Sources

• California Legislative Information: Business and Professions Code section 9884.9