How to quote for new business

Winning new work and clients as a small business can be challenging, especially if you are in an industry with lots of competitors. 

BorisDoes makes the whole process easier, allowing you to respond to tasks started by Customers and provide quotes to Customers who have asked for them. At BorisDoes we’re keen for you to grow your business with us, and outside in the offline world. Out there you’ll need to advertise your business, develop word-of-mouth referrals, and then provide quotes to potential clients in order to win business. 

To start with, there are a few things you should know about business generally - some requirements and some suggestions from us to help you along. 

Numbers game

If you’re going to do business in Australia you’ll need an ABN. That’s the case if you’re working on your own as a sole trader, or providing services as a small business with a couple of contractors or employees (and those contractors will need ABNs too). 

Luckily, getting an ABN is very simple. Head to the Australian Business Register at https://www.abr.gov.au (an Australian Government website), following the instructions there, and you’ll be in business… literally. 

Beyond being required by law, having an ABN gives your business legitimacy. You can provide services to other businesses and those clients can treat your services as a business expense. You can also claim certain business expenses associated with running a business and you should talk to your accountant or tax agent about your options. 

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Build a brand
 

The first step to winning business is being offered an opportunity to provide a quote in the first place. Potential clients need to know you exist to consider asking you for a quote. The best way to ensure you get lots of quote requests (on BorisDoes or in the offline world) is to promote your business and develop a strong brand. 

That might mean promoting your business’ ability to provide a particular service, or it might mean letting people know you have a particular speciality or qualification. On BorisDoes you can let potential Customers know with badges that indicate important things they might be looking for. It’s also a good reason to fill out the About Me section of your profile. 

Offline, you can consider brochures in local letterboxes, advertisements on community noticeboards, sponsorship of a local sporting team, or traditional print or radio advertising. Once people in your area know who you are and what you do, they’ll be far more likely to contact you when looking for a quote for a service you provide. Once you’re being asked to provide quotes, the next step is to close those deals and win those jobs. 

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Mind your own business

It's important to have everything in place so that you can actually conduct business. That means things like finding a good accountant, setting up software like MYOB to help you manage quotes and accounts, and taking out public liability insurance. Business insurance ensures that if you have an accident or make a mistake, your work is covered and you have an appropriate level of legal liability cover for your sake and that of your clients. Depending on your type of business, there might be specific insurance for your industry.

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The best of three

In Australia, there is a healthy tradition of competition between small businesses, especially tradies. Customers are encouraged to “get three quotes” before deciding which contractor or tradie they will engage. In some contexts, like some residential tenancy agreements, getting three quotes before engaging a contractor is a requirement. 

That means that when you’re asked for a quote, you’ll often be competing against at least two other service providers. Each of them will provide a quote based on their costs, the quality of their work, the amount of work they have at the time, and current market rates for the work in question. 

When developing a quote, you should consider the same factors:

1. Your costs.
   How much will it cost you to complete the work? What will your material costs be and do you want to make a profit on the materials you provide (especially if you have access to materials at wholesale prices)? How many hours do you think it will take you to complete the job and what do you believe your labour is worth. Calculate an hourly rate and multiply that rate by the number of hours you estimate it will take to complete the work. Add any ancillary costs like additional travel (to more remote locations), any contractors you will need to hire to assist you, and any clean-up costs like tip fees.
2. Quality of work.
   Customers are often happy to pay a premium for quality. If you have a well-known company and have completed a wide range of work that your previous customers rave about, you might consider adding an additional amount to your quote. If, on the other hand, you have a new business and you don’t have a lot of examples of previous work, it is difficult to justify charging a premium for quality. You might produce great work, maybe even of a quality that surpasses experienced competitors, but potential customers need to know that before they are willing to accept you offer a premium service.
3. Other bookings.
   If you have a lot of work, or you’re in a sought-after industry, you might find yourself with a lot of work. You might have someone in your schedule for each day of the week, and that’s great. If you aren’t looking for additional work but you’re still being asked for quotes, you can afford to set your rates slightly higher than you might otherwise. If someone isn’t willing to pay those rates, well you were booked up anyway. And if they are, you can work out which work to prioritise. On the other hand, you might have a quiet week and quoting for work at lower-than-usual rates might help you win work for a day you might otherwise have had no clients. When you run your own business, you manage your own schedule and can quote accordingly.
4. The Market.
   In some industries there’s a commonly accepted price range for particular services. There might be new businesses offering entry-level prices and experienced service providers charging a premium but generally, most businesses in the industry charge about the same. It’s important to know your industry and understand any generally accepted price ranges. If you’re in an industry where that isn’t the case, it can be valuable to do your research and understand what the average price range is, and then decide if you’re going to set your prices at the high or low end of that range, or right in the middle. 

The winning bid

Beyond the things you might consider when producing a quote for a potential client, there are a number of things you can do to make your quote stand out. When each competing business is considering the same factors when producing their quotes, doing something a little different can really help your chances of winning new work. Here are some suggestions from us:

1. Listen to the customer.
   Listen to what the customer needs and how they want that service to be provided. Some clients have very specific ideas for their project or task and will be naturally inclined to pick your quote if you show genuine interest in their ideas, can suggest ways they can achieve their goals, and reflect their requirements in your quote. If you provide an itemised quote, reflect some of their language if possible. “Colour-matched paint, using Jane’s family picture frame as a sample.” or “Natural stone garden edge to highlight Mark’s roses and water feature.”
2. Be specific.
   In your quote, define exactly what you will do. Itemised quotes are best as they allow the customer to see the value of each component (and make decisions to suit their budget if necessary). If the client decides to remove particular items because they want to control their project budget, they can better understand what that will look like, rather than guessing. Even if they can’t afford to complete the whole project right now, a client is far more likely to go ahead with 1 or 2 components of their project if your quote allows them that freedom.
3. Offer a discount.
   Discounts are a great way to show you are willing to compromise on price and encourage negotiation, rather than a decision to pick the lowest quote without further discussion. Make sure your discount makes sense, is actually a discount, and is meaningful. Broad-strokes discounts like “10% off on Thursdays” don’t make much sense and might make a potential client query whether you have a professional approach to your work. More effective are discounts like, “15% off any subsequent bookings” or “$100 off when you go ahead with at least 3 quoted tasks”. 

Producing a quote

The standard format for a quote is something in writing, either on paper or by email. Software like MYOB or Xero can help you produce a quote with standard forms, or you can find a wide range of templates online, or simply create your own. Make sure to include all information, your contact details (and ABN), and everything else you think your potential client might need to make a decision. Make it clear that they are welcome to contact you if they have any questions. Email is a great option for getting a quote to a client quickly and easily. Just make sure you have their email address and remember to follow up if you don’t hear back from them in a few days. A paper quote can be a better opinion in some circumstances; it allows you to visit the potential client again, hand them something in person, and answer any questions they might have.

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Negotiations

If a potential client uses the offer of a discount to negotiate some or all of your quote, or simply asks if you are willing to negotiate, it is important to understand what that means. It could be that they are deciding between your quote and one from a competitor and looking for a reason to pick one service provider over the other. It might be that they have a particular budget, and your quote is slightly higher than they are willing to pay. Being a bit flexible could make the project affordable enough for them to go ahead with it. Other potential clients may just want to save as much money as possible and enjoy getting a bargain. Whatever their reasons, listen to what they have to say, decide if it is something you are willing to do, and agree to a further reduction in price or explain carefully why that isn’t possible in this instance. Be clear about your reasons; if a potential client doesn’t want to accept them, it might just not be the job for you.

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Finally

Once you’ve been offered work, make sure you complete it to the best of your ability. Producing good work or providing a great service is the best way to generate word-of-mouth referrals. BorisDoes helps you with this process by encouraging Customers to leave positive reviews for Taskers and Businesses. That’s one of the reasons BorisDoes is among the easiest ways to find new business, engage with potential clients, and get the opportunity to quote for work. If you haven’t registered your business you can do so quickly and easily. Then check out the posted tasks and quote requests from Customers to get started.