Learn how to create professional quotes for potential work, what makes them different from invoices, and best practices for pricing.
Quote vs. Invoice: What's the Difference?
Quote (Estimate)
Purpose: Proposal for work not yet done
Characteristics:
- No payment due yet
- Customer must approve first
- Valid for 30-90 days (you set)
- Can be edited anytime
- Not legally binding (usually)
- Shows estimated costs
Use when:
- Customer asks "How much would it cost to...?"
- Diagnostic revealed expensive repairs
- Planning future maintenance
- Bidding on new installation
Invoice
Purpose: Bill for work already completed
Characteristics:
- Payment is due (by due date)
- Work already finished
- Cannot edit after sending (usually)
- Legally binding payment request
- Shows actual costs
Use when:
- Job is complete
- Parts have been installed
- Time has been spent
- Customer owes payment
See: Create Invoice
When to Create a Quote
Scenario 1: Diagnostic Reveals Major Issue
Customer called for: AC not cooling
You found: Compressor failed
Action:
"Your compressor has failed. This is a major repair.
OPTION 1: Replace compressor
- Parts: $1,200
- Labor: 6 hours @ $95/hr = $570
- Total: $1,770 + tax
OPTION 2: Replace entire outdoor unit
- Equipment: $2,800
- Labor: 8 hours @ $95/hr = $760
- Total: $3,560 + tax
(More efficient, 10-year warranty)
Would you like me to send you a quote?"
Create quote immediately so customer has written details.
Scenario 2: Customer Planning Ahead
Customer says: "How much to replace my furnace before winter?"
Action:
- Inspect current furnace
- Measure space requirements
- Discuss efficiency options
- Create detailed quote
- Valid for 60 days (before busy season)
Scenario 3: Competitive Bid
Customer says: "I'm getting 3 quotes for a new AC system."
Action:
- Professional, detailed quote
- Include all costs (no surprises)
- Explain warranty and service
- Highlight your value
- Follow up (see Follow Up on Quotes)
Scenario 4: Maintenance Plan Proposal
After completing repair: "To prevent this from happening again, we offer annual maintenance plans."
Action:
- Quote annual plan: $249/year
- List what's included (2 visits, priority service, 10% off repairs)
- Show value vs. paying per visit
- Valid for 30 days
How to Create a Quote
Step 1: Start New Quote
Three ways to start:
Option A: From a Job
- Open completed diagnostic job
- Click Create Quote button
- Customer info auto-fills
- Equipment info auto-fills
Option B: From Customer Profile
- Navigate to Customers
- Find customer, click to open
- Tab: Quotes
- Click + New Quote
Option C: From Quotes Page
- Navigate to Quotes
- Click + Create Quote
- Search and select customer
- Fill in details
Step 2: Quote Details
Quote Number: Auto-generated
- Format:
QUO-2026-0042 - Sequential numbering
- Cannot be changed
Valid Until: Set expiration date
- Default: 30 days from today
- Adjustable: 14, 30, 60, 90 days
- Or custom date
Why it matters:
- Prices may change
- Parts availability varies
- Protects you from honoring old quotes
Step 2a: Using Job Templates (Optional)
To start a quote from a template:
- In the "Start from Template" section, select a service type
- Line items are automatically added:
- Labor based on template pricing
- Common parts for this service
- Review and adjust prices as needed
- Add or remove items
To clear template selection:
- Click the X button next to template name
- Your current line items are preserved
- You can select a different template or continue manually
To switch templates:
- Select a different template from the dropdown
- Previous line items are replaced with new template items
- All prices remain editable
Tips:
- Templates speed up quotes for common services
- All prices are editable after template loads
- You can mix template items with custom items
- Switching templates replaces all line items
Step 3: Add Line Items
From diagnostic job (easiest):
- System suggests parts found during diagnostic
- Click items to add
- Adjust quantities/prices
Manual entry:
- Click + Add Line Item
- Select category:
- Parts
- Labor
- Equipment
- Subcontractor
- Other
- Enter details:
- Description: "Compressor - 3 ton, R-410A"
- Quantity: 1
- Unit Price: $1,200
- Total: Auto-calculates
- Repeat for all items
Step 4: Labor Costs
Option 1: Flat Rate
Description: "Compressor replacement labor"
Quantity: 1
Price: $570
Option 2: Hourly
Description: "Labor - Technician"
Quantity: 6 hours
Rate: $95/hour
Total: $570
Option 3: Itemized by Task
Line 1: "Remove old compressor" - 2 hrs - $190
Line 2: "Install new compressor" - 3 hrs - $285
Line 3: "Evacuate and recharge system" - 1 hr - $95
Total Labor: $570
Best practice: Flat rate is cleaner for customers.
Step 5: Multiple Options (Recommended)
Give customer choices:
Example: AC Repair Quote
OPTION A: Repair Current System
- Replace compressor: $1,200
- Labor: $570
- Refrigerant recharge: $150
- Total: $1,920 + tax
- Warranty: 3 years parts, 1 year labor
OPTION B: Replace Outdoor Unit
- New 3-ton condenser: $2,800
- Labor: $760
- Total: $3,560 + tax
- Warranty: 10 years parts, 2 years labor
- Energy savings: ~$30/month
OPTION C: Replace Entire System
- New outdoor + indoor unit: $5,200
- Labor: $1,200
- Total: $6,400 + tax
- Warranty: 10 years parts, 2 years labor
- Energy savings: ~$50/month
- Recommended for systems 12+ years old
Benefits:
- Customer feels in control
- Shows you're not upselling
- Different budgets accommodated
- Professional presentation
Step 6: Add Notes & Details
Include:
Scope of Work:
"This quote includes:
- Remove existing failed compressor
- Install new 3-ton scroll compressor (Brand X Model Y)
- Replace compressor contactor
- Evacuate system and recharge with 8 lbs R-410A
- Test system operation
- 1-year labor warranty, 3-year parts warranty"
Exclusions (important!):
"This quote does NOT include:
- Electrical upgrades (if needed, additional $200-400)
- Ductwork modifications
- Thermostat replacement
- Permit fees (if required by city)"
Terms:
"50% deposit due upon acceptance
Balance due upon completion
Quote valid for 30 days
Pricing subject to change after expiration"
Step 7: Calculate Tax
Tax settings:
- Uses default rate from Settings
- Typically 7-10% (varies by location)
- Applied to parts (usually) and labor (depends on state)
Override tax:
- Customer has tax exemption certificate
- Check box: "Tax Exempt"
- Attach certificate photo/PDF
Result:
Subtotal: $1,920.00
Tax (8.5%): $163.20
Total: $2,083.20
Step 8: Preview & Send
Preview the quote:
- Click Preview button
- See customer's view
- Check for errors:
- ✅ Spelling/grammar
- ✅ Correct customer name/address
- ✅ All line items included
- ✅ Math adds up correctly
- ✅ Professional appearance
- ✅ Company logo/info visible
Send options:
Option A: Email (most common)
- Customer receives PDF attachment
- Link to view online
- Can accept online (if enabled)
Option B: Print & Hand Deliver
- Professional when meeting in person
- Customer can review with family
- Include business card
Option C: Text/SMS
- Link to view quote online
- Good for tech-savvy customers
- Include brief message
Option D: Save as Draft
- Not ready to send yet
- Need manager approval
- Waiting for exact part pricing
Quote Status Tracking
Status Flow
DRAFT → SENT → VIEWED → ACCEPTED → CONVERTED
↓
DECLINED
↓
EXPIRED
DRAFT:
- Just created
- Not sent yet
- Can edit freely
SENT:
- Email delivered to customer
- Awaiting response
- Can still edit (sends update)
VIEWED:
- Customer opened quote
- Shows engagement
- Good sign!
ACCEPTED:
- Customer approved quote
- Ready to convert to job
- Action required: Schedule work
DECLINED:
- Customer said no
- Mark reason for tracking
- Can follow up later
EXPIRED:
- Past valid-until date
- Auto-marked expired
- Can extend or recreate
Professional Quote Tips
1. Be Detailed
❌ Vague:
"AC repair: $2,000"
✅ Detailed:
"AC Repair - Compressor Replacement
- Copeland 3-ton scroll compressor (ZP36K5E-PFV-130)
- Includes: removal, installation, evacuation, recharge
- 8 lbs R-410A refrigerant
- New compressor contactor
- System testing and startup
- 3-year parts warranty, 1-year labor warranty
Total: $2,083.20"
Customer knows exactly what they're getting.
2. Include Photos
From diagnostic:
- Attach photo of failed part
- Show rust, wear, damage
- Visual proof justifies cost
Before/after examples:
- Show your prior work
- Demonstrate quality
- Build trust
3. Explain Warranties
Parts warranty:
"Compressor: 5 years manufacturer warranty
All other parts: 1 year"
Labor warranty:
"All labor: 1 year from installation
If anything goes wrong due to our workmanship,
we'll fix it free."
Reassures customer.
4. Show Your Value
Don't compete on price alone:
"What's Included in Our Service:
- ✅ Licensed & insured technicians
- ✅ 24/7 emergency service
- ✅ Same-day service (usually)
- ✅ 100% satisfaction guarantee
- ✅ No hidden fees
- ✅ Clean job site - we respect your home"
Why customers choose you over cheaper competitors.
5. Make It Easy to Accept
Include:
- Clear call-to-action: "Click to Accept Quote"
- Online acceptance (e-signature)
- Multiple payment methods listed
- Your direct phone number
- Office hours for questions
Remove friction = higher acceptance rate.
Quote Pricing Strategies
Cost-Plus Pricing
Your costs:
Parts cost: $800
Your time: 6 hours
Overhead: 30% of costs
Desired profit: 20%
Calculation:
Direct costs: $800 + (6 hrs × $45/hr) = $1,070
With overhead (×1.30): $1,391
With profit (×1.20): $1,669
Quote customer: $1,675 (rounded)
Flat Rate Pricing
Published flat rate book:
- Compressor replacement: $1,850 (2-3 ton)
- Same price for every customer
- Regardless of actual time spent
Pros:
- Simple and consistent
- Rewards efficiency
- No surprises for customer
Cons:
- May lose price-sensitive customers
- Doesn't account for complexity
Value-Based Pricing
Consider:
- Emergency vs. scheduled
- Customer type (residential vs. commercial)
- Relationship (new vs. loyal)
- Competition in area
- Seasonality (peak demand = higher)
Example:
Standard quote: $1,850
Peak season (July): $2,050 (+10%)
Emergency (nights/weekends): $2,400 (+30%)
Loyal customer discount: $1,750 (-5%)
Deposits & Payment Terms
When to Require Deposit
Require 50% deposit for:
- Jobs over $1,000
- Special-order equipment
- New customers
- Commercial projects
- Scheduled 2+ weeks out
Why:
- Guarantees commitment
- Covers material costs
- Protects against cancellation
- Industry standard
Payment Terms Options
Option 1: Deposit + Balance
"50% deposit due upon acceptance: $1,041.60
Remaining 50% due upon completion: $1,041.60"
Option 2: Full Payment Upon Completion
"No deposit required.
Full payment due upon job completion.
We accept cash, check, credit card."
Option 3: Progress Payments (large jobs)
"Day 1 (mobilization): $2,000
Day 3 (rough-in): $2,000
Day 5 (completion): $2,400"
Financing Options
If you offer financing:
"Financing Available!
Example: $3,000 system
- 12 months: $260/month (0% APR)
- 24 months: $138/month (4.9% APR)
- 60 months: $64/month (9.9% APR)
Apply online: [link]
Approval in minutes
No prepayment penalty"
Increases close rate - many customers can't pay $3,000 cash but can afford $138/month.
A:
- Default: 30 days
- Adjustable: 14, 30, 60, 90 days
- Protects you from price increases
- Customer loses quote if they wait too long
Q: Can I edit a quote after sending?
A:
- Yes (if status = SENT or DRAFT)
- Customer receives updated quote
- Shows "Revised" with date
- Cannot edit after ACCEPTED
Q: What if customer accepts old quote after expiration?
A:
- Extend expiration date
- Or recreate quote with current pricing
- Up to you to honor or not
Q: Do quotes count toward revenue?
A:
- No - quotes are not revenue
- Only invoices (billed work) count
- Track quote-to-job conversion rate
Q: Can customers pay deposit on a quote?
A:
- Yes! Enable online payments
- Quote shows "Pay Deposit" button
- Auto-converts to job when paid
- See Convert Quote to Job
Templates for Common Quotes
Template 1: AC Compressor Replacement
Quote: AC Compressor Replacement
Parts:
- 3-ton scroll compressor (Brand/Model): $1,200
- Compressor contactor: $45
- R-410A refrigerant (8 lbs): $160
Labor:
- Removal and installation (6 hours): $570
Total: $1,975
Tax (8.5%): $167.88
Grand Total: $2,142.88
Warranty: 5 years parts, 1 year labor
Valid: 30 days
Template 2: New HVAC System Installation
Quote: Complete HVAC System Replacement
Equipment:
- 3-ton heat pump outdoor unit: $3,200
- Air handler with coil: $1,800
- Programmable thermostat: $250
- Line set and electrical: $400
Labor:
- Complete installation (12 hours): $1,140
Permits & Inspections: $150
Total: $6,940
Tax (8.5%): $589.90
Grand Total: $7,529.90
Financing available - $260/month for 36 months
Warranty: 10 years parts, 2 years labor
Valid: 60 days
Troubleshooting
Issue: "Customer says quote is too high"
Solution:
- Break down costs (show parts + labor separately)
- Compare to replacing entire system
- Offer financing options
- Explain warranty value
- See Follow Up on Quotes
Issue: "Quote won't save"
Solution:
- Check required fields (customer, line items)
- Verify math adds up
- Check internet connection
- Try removing special characters from descriptions
Issue: "Customer didn't receive emailed quote"
Solution:
- Verify email address correct
- Check spam folder (ask customer)
- Resend quote
- Or send via text/SMS instead
Best Practices Summary
✅ DO:
- Send quote within 24 hours of diagnostic
- Include detailed descriptions
- Offer multiple options (good/better/best)
- Explain warranties clearly
- Set realistic expiration dates
- Follow up within 3 days
- Make acceptance easy (online)
❌ DON'T:
- Lowball to win bid (you'll lose money)
- Forget to include labor
- Leave out important details
- Make quotes valid forever
- Forget to follow up
- Price match without seeing competitor quote
Related Tasks
- Convert Quote to Job - After customer accepts
- Follow Up on Quotes - Improve close rate
- Create Invoice - Bill for completed work
Need More Help?
- Video: Watch: Creating Professional Quotes
- Role Guide: Owner's Guide
- Contact Support: [email protected]