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Quote vs estimate: what's the difference for your customers?

Customers use the two words as if they mean the same thing. On paper they don't, and the difference is who pays when the job changes.

3 min read

Quote vs estimate: the short answer

An estimate is your best guess at the cost, and it can change if the job turns out different. A quote is a set price for set work, good until a date. Send a quote when you can see everything. Send an estimate when you can't, and say what could change it.

On this page
  1. Estimate vs quote from the customer's side
  2. The difference between a quote and an estimate, with examples
  3. Estimate or quote: which to send for which job
  4. Is a quote a fixed price?
  5. Wording that prevents arguments

Estimate vs quote from the customer's side

The customer hears one number and remembers it. If you sent an estimate and the bill comes in higher, they feel misled, even when you were clear. So say which one it is at the top of the page, in plain words, and say it again when you hand it over.

  • Estimate. "About this much. Here's what could change it."
  • Quote. "This price, for this work, until this date."

The difference between a quote and an estimate, with examples

Same kind of job, two different houses. In the first, you can see every pipe, so you quote it. It's a set price for set work, with a date on it.

Quote

For
Pat Morales, 22 Elm St
The work
Replace the 40-gallon water heater in the basement, haul away the old one
Price
[price], parts and labor
Good until
[date]
Not included
Moving the unit to a new spot

Estimate or quote: which to send for which job

It comes down to what you can see before you start. In the second house the leak is somewhere behind the wall, so you estimate it, and say what could change the number.

Estimate

For
Dan Whitfield, 8 Mill Rd
The work
Find and fix the leak behind the kitchen wall, patch the opening
Estimate
[low] to [high], depending on what's behind the wall
Could change it
Rotted framing, old galvanized pipe, or a second leak
Next step
Once the wall is open, we'll send a quote before we go further
  • Quote it. A water heater swap, a panel replacement, a faucet. You can see the whole job.
  • Estimate it. Old wiring, water damage, anything behind a wall or under a floor.
  • Both. Estimate first, then quote once you've opened things up and know what's there.

Is a quote a fixed price?

Generally, yes, for the work it describes, as long as the customer accepts it before the date on it. If the customer asks for more, or you find something you listed as not included, that's a written change order, agreed before you do the extra work. Rules on estimates vary by state, so check yours if a bill might run well over one.

Wording that prevents arguments

Most arguments about a bill start with a word that meant one thing to you and another to the customer. Put "Estimate" or "Quote" in big letters at the top, say what's not included, and write down every change before you do it. When you send a lot of them, have each one drafted from your site notes, worded the same way every time, and set the prices yourself.

By hand6 steps
  1. Find your site notes
  2. Open an old quote to copy
  3. Decide: estimate or quote
  4. Write what's not included
  5. Add your prices
  6. Email it to the customer

For every visit, usually after dinner.

Set up onceWaiting on you

I turned your notes into an estimate. Add your prices and I'll get it ready to send.

Estimate for Dan Whitfield, 8 Mill Rd: find and fix the leak behind the kitchen wall. Could change if the framing is rotted. Your range on each line, then it's ready to send.

Your notes, turned into a clean estimate or quote. You price it and send it.

See the estimates job →

Questions about quotes and estimates

Something else on your mind? Ask us on the fit call. No pitch, and we'll say if it isn't a fit.

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Usually, yes. An estimate is your best guess at the cost and can change if conditions change. A quote is a set price for set work, valid for a stated period. Many customers use the words interchangeably, so say which one you're giving right on the document.

Generally, a quote is a fixed price for the work it describes, as long as the work doesn't change and the customer accepts within the stated time. Changes the customer asks for, or hidden conditions you list as exclusions, are handled with a written change order.

An estimate is an informed guess at what a job will cost based on what you can see and know before starting. It tells the customer the likely range, not a promise. A good estimate explains what could change the final number, like what's behind a wall.

Usually not in the way a signed quote or contract is, but rules vary by state, and some states limit how far a final bill can go over a written estimate. Put your terms in writing, explain what could change the price, and check your state's rules.

When the work is clear and you can see everything that affects the price, like a water heater swap or a panel replacement. For work with unknowns, like old wiring or water damage, give an estimate and list what could change it, then firm it up once you open things up.

Say which one it is.