How To Write an Effective Price Estimate Letter in 7 Steps

An estimate is a document that gives a potential client an idea of the project’s approximate costs. Even though an estimate isn’t legally binding, you should still include terms and conditions to make certain things, like payment terms, clear. This will ensure that the client is fully informed and prevent any unexpected events in the future.

1. Create a header. …
2. Share a professional greeting. …
3. Write an opening paragraph. …
4. List item price details. …
5. Add a closing paragraph. …
6. Include any enclosure notations. …
7. Proofread closely.

Who uses price estimate letters?

Price estimate letters are used by many professionals across industries, albeit to varying degrees. Contractors, landscapers, electricians, and other service providers frequently provide estimates for projects, whether they are residential or commercial. Another option is for a clothing company to offer a concert merchandise promoter a written estimate for producing a band’s tour accessories and mementos. Price estimate letters are frequently used in the following sectors and industries:

What is a price estimate letter?

A price estimate letter, which lists the estimated price of goods or services, is a formal business document that a company offers to potential clients or customers. It typically includes details such as the name of the item, its style, model number, or color, as well as the precise quantity and price being made available. This information is also provided if a price estimate is valid for a limited period of time, such as a one-month promotion or sale. It’s important to remember that price estimates are rarely legally binding, particularly since they represent an educated guess at the cost and exclude unforeseen circumstances.

What are some qualities of a professional price estimate letter?

Professional price estimate letters often have these basic qualities:

Why is it important to quote an accurate price?

For a number of reasons, it’s crucial to provide a price estimate letter to prospective clients, customers, or other business-to-business (B2B) accounts with an accurate price.

How to write a price estimate letter in 7 steps

When creating your own price estimate letter, think about using these seven steps as a guide:

1. Create a header

Like any business letter, the top of your price estimate letter contains professional information for both parties. Include the recipient’s company name, address, and specific information along with your name, title, and company information, as well as your contact details and the current date. It’s customary to use a specific font typeface, like Times New Roman or Arial, and size, as well as include your logo at the top or bottom of a price estimate. Heres an example of what a header might look like:

Wilson Prendergast
Vice president of sales
Tomorrows Products Today
Seattle, Washington
206-555-0550
[email protected]

August 20, 2021

Penelope Andrews
Executive administrative assistant
Airborne Airways
Seattle, Washington

2. Share a professional greeting

You can address the price estimate letter more effectively if you are sending it to someone you are familiar with. If there is no specific recipient, think about opening with a formal salutation like “Dear,” followed by the position. For example:

3. Write an opening paragraph

Your price estimate letter’s opening sentence may refer to any earlier phone calls, email exchanges, or discussions of particular client needs. Even though it doesn’t have to be long, doing so gives you the chance to personalize the correspondence and strengthen the bonds of friendship and connection. Consider summarizing your thoughts in a sentence or two before moving on to the pricing estimate. For example:

Thank you for calling ABC Construction to discuss remodeling your bathroom. We are pleased to present this price estimate for your home on Bronson Road because we enjoy assisting growing families in our neighborhood design and construct spaces that suit their lifestyle.

4. List item price details

List the products or services being offered, their cost, and then provide a total for the customer to take into consideration in the second paragraph. Think about the best format for the products you sell, whether it be bullet points, a chart with categories, a spreadsheet, or an infographic. Some things to include in your price estimate are:

5. Add a closing paragraph

Summarize the cost estimate in your last paragraph, being careful not to repeat anything from the first paragraph. Consider including that in this section if the price estimate is good until a certain date or if you provide unique discounts, promotions, or savings. Closing the letter with a brief thank you to the client for the potential business opportunity For example:

This bathroom renovation estimate includes our 10% customer referral discount and is valid through September 1, 2021 We appreciate the chance to earn your business and look forward to assisting you in making your home more comfortable, so please contact us if you have any questions. Thank you.

6. Include any enclosure notations

Using enclosure notations at the bottom of your document frequently adds a professional element and tells the reader what to look for and expect because a price estimate letter may include additional documents, such as a complete pricing list, product catalog, or copy of prior correspondence. Although you most frequently use different enclosure notations for physical letters and documents, including them on digital copies, like an email, can let someone know how many or what kind of attachments are included. This can also be useful for determining whether a crucial document was accidentally left off.

7. Proofread closely

A professional letter that has received good feedback can demonstrate diligence and professionalism, possibly leading to a sale, increased client loyalty, or approval of a request for proposals. Even if you are using price estimate letter templates, make sure to carefully proofread each one before sending it to a client or customer. To spot common spelling, punctuation, grammar, and formatting errors, using a computer spellcheck program is a great first step. However, it’s also helpful to review a paper printout copy or read your letter aloud to catch any other errors or awkward phrasing. If you make any changes to your document, think about thoroughly reviewing it to ensure accuracy.

Template of a price estimate letter

Here is a sample price estimate letter you could use as a guide when creating your own:

[Name and title]
[Company name]
[Address]
[Phone number]
[Email address]

[Date]

[Recipient name and title]
[Company name]
[Company address]

Dear [greeting with a specific name or standard professional opening],

[Opening paragraph mentioning ]

[Second paragraph listing items quoted in price estimate letter]

[Third paragraph to summarize offering and close letter]

Sincerely [or another professional closing],
[Full name]

[Enclosure notation]

Sample example of a price estimate letter

Examine this illustration to get ideas for your own price estimate letter:

Darius Matthews
Lead sales manager
Our T-shirt Company
Providence, RI
401-555-5555
[email protected]

June 1, 2021

Sarita Johnson
Production manager
Concert Touring Company
Boston, MA

Dear Ms. Johnson,

It’s exciting to hear that The Carl Richardson Band is returning to the road, and we appreciate you thinking of us for their apparel and merchandise needs.

The price list estimate for various promotional items, including men’s, women’s, and children’s sizing requirements, is provided below and attached.

Baseball hat (one size)100$10 per hat$1,000Baseball sticker in two designs500 per design$2 per sticker$2,000ShippingFlat rate ground shipping$500This price estimate for $12,700 worth of goods is good through August. As mentioned, orders totaling $15,000 or more are eligible for free shipping. If you have any inquiries, changes you’d like to make, or you need help placing the order, kindly let us know. We appreciate our long-standing partnership with you and the band and are eager to see the newest designs. Thanks again for your business.

Sincerely,
Darius Matthews

Enclosure (1)

Sample letter of Price Quotation.

FAQ

How do you ask for a price estimate?

1. [Item with the exact amount you need]
2. [Item with the exact amount you need]
3. [Item with the exact amount you need]
4. [Item with the exact amount you need]

What is an example of estimate?

Verb They estimated the distance at about three miles. We must calculate how much paint we will require for the project. The project’s cost has been estimated at around $10 million. He calculates that oil reserves are currently 20% less than they were a year ago.

What is a written estimate?

A written estimate is a document that includes an estimate of the cost of labor and parts for a particular job.

How do you begin an estimate?

1. Evaluate the Job. Spend some time considering the task at hand.
2. Provide a High-Level Overview. …
3. Present Alternative Estimates for Different Scenarios. …
4. Include Necessary Disclaimers. …
5. Convert Your Estimate to an Invoice.