Itemized Quotes: A Guide for Service Business Owners
Getting new leads feels great, but it doesn’t mean you’ve landed a contract. You still need to convince potential customers that you have what it takes to get the job done for a reasonable price.
Itemized quotes break down materials, labor, and costs to show clients what a project entails, helping them understand exactly what they’ll be paying for. Plus, they position you as a professional and knowledgeable service business, giving a stellar first impression.
Learn how to add itemized quotes to your quoting process and boost your chances of turning leads into contracts with this guide.
Using itemized quotes in your service business:
What is an itemized quote?
Itemized quotes (sometimes called itemized quotations) break down the materials, labor, and costs of a job into individual line items to show the price of each item separately instead of as a lump sum.
For example, on the roofing quote below, line items show each part required for the installation, as well as quantities and prices. Descriptions underneath each line item help the potential client understand why the parts they’re paying for are necessary for the job.
While they still include the total price at the end, an itemized quote helps potential clients see how that amount has been calculated, giving them more insight into why a job costs what it does.
They can also include:
- Relevant cross-sells and upsells
- Additional service options or packages
- Discounts or promotional offers
This lawn care quote uses line items to let the customer add optional services to their monthly maintenance package and visualize how these services would enhance their lawn:
What to include in itemized quotes
Itemized quotes are more detailed than lump sum quotes, and can include:
- Installation costs
- Product descriptions and/or images
- Recommended add-ons
- Tiered pricing options
- Product warranties
- Material and labor costs
- Notes or special client requests
- Deposit information and payment terms
- Relevant disclaimers
- Taxes, fees, or discounts
- The total cost of the job
- The quote date and when it expires
Each itemized quote should be unique to the client and job, so not all of them will have the same line items. For example, a simple appliance repair job may not have any relevant upsells. Or you may not need to ask for an upfront deposit from a client you’ve worked with before.
It’s also important to remember that, unlike estimates, quotes are set prices, not ballpark numbers. If your quote is dependent on square footage or jobsite conditions, visit the location and compare pricing from comparable jobs before sending it to a customer.
READ MORE: Quote, estimate bid, and proposal: How are they different?
How to create itemized quotes
When it comes to creating your quotes, you have two options. You can make them yourself or use software like Jobber to do it for you.
Making itemized quotes manually
If you decide to make by hand, create a grid in a document that includes columns for:
- Item descriptions
- Quantity
- Unit cost
- Total
Bonus points for quotes that include your logo, options for upsells, and product images.
When drafting your quotes, be sure to take your time. Manual quotes are subject to human error, and if you give a client the wrong price or list the incorrect service, they won’t be impressed.
Double-check your pricing, service details, and any client information before sending it along to ensure there aren’t any mistakes.
Pro Tip: Save an empty template on your computer so you don’t have to create a new document every time.
READ MORE: How to write a quote for a job
Making itemized quotes with Jobber
If manually drafting quotes sounds like too much work, use Jobber to create a more accurate quote instead.
Jobber’s quoting software makes it easy to create an itemized breakdown with unique line items to suit any job. All you need to do is enter a product or service name, add a description, and set a price in the quote builder, and our software will turn it into a line item.
Here’s an example of an itemized quote made in Jobber that includes an image of the client’s property. It clarifies the trees an arborist is being hired to remove, ensuring they have the correct information and preventing them from making a costly mistake.
Or, you can include optional line items for upsells and cross-sells that increase your quote totals by up to 35%.
Plus, highlight any tiered pricing packages by allowing clients to choose which option they prefer:
Why are itemized quotes important?
Itemized quotes come with a ton of top-notch benefits for your service business. Especially when you use software like Jobber to make them. Here’s what you can expect to get by adding them to your quoting process:
1. They set clear expectations
Adding individual service prices, descriptions, and quantities makes it easy for clients to see what they’re being charged for. When you and your client are on the same page, the job goes more smoothly.
They can also prevent disputes and concerns down the road since they help you to communicate important information to the client from the get-go.
2. They make invoicing a breeze
While it might seem like a lot of work, itemizing makes invoicing easy. After a job’s done, all you need to do is take the information from your quote and move it over to an invoice.
If you happen to use Jobber to create quotes, all the information is automatically copied over to an invoice once you confirm a job has been completed.
READ MORE: Quote vs. invoice – what’s the difference?
3. They boost your professionalism
Itemizing your quotes makes you look good and offers a fantastic first impression to prospective clients. They show that you’re on the ball and know what you’re talking about, all while adding to your legitimacy.
All of this combined makes you stand out from the competition, giving you a chance to win more contracts.
For Halli Sanchez from Blutex Pools, it takes more than a low price to stand out against competitors. “We’re finding that customers aren’t just going with the cheapest quote in their inbox,” Halli says.
She noticed a difference when her small business started sending itemized quotations.
“Customers can see the breakdown and value of the cost differences between options we’ve given them, and we’ve seen a good return on customers going with the higher-priced options because of that breakdown and transparency.”
WATCH: The secret to win more work: How to write a professional quote
4. They provide important information to clients
You might be an expert when it comes to your industry and services, but your clients aren’t. Clear product and service descriptions help them understand terms, products, and services related to the job.
5. They’re specific to each job
Simple lump sum quotes work OK for straightforward jobs, but they aren’t the best option for jobs that require a variety of costs.
By calculating line items for each quote, you’ll have more accurate quotes, and, in turn, you’ll be more likely to include a healthy markup to hit your desired profit margin.
6. They turn leads into contracts
With so many service providers to choose from, potential clients can find it hard to decide which one to go with. Itemized quotes look professional, help you stand out from competitors, and offer clear pricing information.
All this works together to turn leads into contracts, growing your client list and increasing profit.
Best practices for itemized quotes
To make the most of your quotes, be sure to:
Include details
The purpose of itemized quotations is to provide details to the client. When relevant, include descriptions, images, quantities, and any other important information. Not only will it give context to your client for the total cost, but it’ll make invoicing easier for you later on.
Be concise
Details are wonderful, but quotes should still be as concise as possible. Keep descriptions short and to the point so that they’re easy to read.
Use software
While you can make itemized estimates or quotes yourself, using software like Jobber is a better option if you have a lot of clients or you tend to take on complicated jobs. It prevents human error, makes the entire quote > invoice > payment process easier, and provides you with a professional paper trail.
Double-check your information
Before hitting send, review your quote carefully to make sure you didn’t make any typos. Run through your prices, quantities, services, and products to make sure they’re all relevant to the job. And don’t forget to ensure the client’s name, address, and contact information are correct.
Include a call to action
Providing a detailed quote is wonderful, but if you don’t tell clients what to do with it, they may not know how to proceed. Be clear about what the next steps are by including instructions in your quote.
For example, if they need to approve the quote, tell them how. Should they email you a confirmation? Or use your CRM to sign off digitally? Tell them exactly what they need to do.
Pro Tip: Always make sure a client signs off on a quote either digitally or in person before starting a job.
Include disclaimers
Disclaimers protect your business from potential legal disputes in the future. For example, payment terms, tax terms, service terms, changes terms, and scheduling terms can all be described in your quotes so that they’re provided to a customer before a job starts.
Follow up
After sending a quote, don’t forget to follow up if the client doesn’t respond within a few days. Your email could have been lost in a flooded inbox or seen but forgotten during a busy afternoon. Reach out once or twice more before moving on to maximize the potential of your quote.
READ MORE: Quote follow-up email templates
Creating comprehensive quotes
Itemizing your quotes isn’t necessary for every job or even every service business. Some argue that they’re time-consuming and can take longer for customers to sign off on.
But Jobber makes it easy to create custom quotes quickly and easily, and clients can review, update, and approve them in minutes through Jobber’s CRM.
If you’re looking to take your service business to the next level, updating your quoting strategy could be a great way to impress leads, streamline your invoicing process, and give yourself a competitive edge.
Originally published in November 2021. Last updated on August 20, 2024.