A customer describes the job over the phone and asks, "What would you charge?" You have about three ways to answer. You can guess a number and hope, you can say "I'll have to come look," or you can quote it properly. The first one is how tradespeople end up working for free. The second is fine, but only if what comes next is a real price. This guide is about that real price: how to work one out, how to word it, and whether to call it a quote or an estimate.
Quote vs. estimate: what's the difference?
The two words are used loosely, and in some places they're treated as interchangeable. In everyday trade talk, though, there's a useful distinction:
| Quote | Estimate | |
|---|---|---|
| What it is | A fixed price for a defined job | Your best judgment of the likely price, often a range |
| Is the number firm? | Yes, unless the scope changes | No, it can move as the work unfolds |
| Who carries the risk of a surprise? | You | Shared, or the customer |
| Best when | The scope is clear and you've done this job before | The scope is uncertain or open-ended |
How a quote or an estimate is treated, including whether you can charge more than you said, depends on your contract and your local rules, and the terms aren't used the same way everywhere. Whatever you call it, write down what it covers and how you'll handle changes, and check what applies where you work.
When to give a quote, and when to give an estimate
Match the document to how much you actually know:
- Give a quote when the scope is clear and the work is familiar. You can see it, you've done it before, and you know the time and the materials. A fixed price is easier for the customer and rewards you for doing it efficiently. This is the same idea as flat-rate pricing.
- Give an estimate when something is genuinely unknown: what's behind the wall, how bad the rot is, what the customer will decide about finishes. A range is honest. A single number would just be a guess wearing a suit.
- Diagnose first when you can't say either. Charge for a look, then quote the fix. See minimum and call-out fees.
How to quote a price for a job, step by step
- Understand the job. Ask questions, get photos, or visit. What's being done, where, what condition is it in, and what does the customer expect the end result to look like? Quoting from a doorway description is where most bad quotes begin.
- Write the scope, and what's not included. Say what you'll do and what you won't. An "exclusions" line stops "I assumed that was included" before it starts.
- Cost it properly. Labor hours at your rate, materials with your markup, travel, overhead, and your target margin. The full method is in how to price a job. A quote is just that number, written down and committed to.
- Add a cushion where there's real uncertainty. An old house or awkward access deserves extra time in the hours, not a hopeful shrug.
- Choose how to present it. One firm price, a range, or a few options at different levels. See good-better-best pricing for the last one.
- Add the terms. How long the price is good for, the deposit and payment schedule (see deposits and payment terms), and how changes are handled (see change orders).
- Send it quickly and follow up. A clear written quote that arrives the same day looks professional, and a short check-in a few days later often gets a reply that silence never would.
A worked example: replacing a bathroom vanity
Say you're replacing a vanity, including a new faucet and supply lines. You expect it to take about five hours. The parts cost you $220 for the vanity, $85 for the faucet, and $45 for supply lines and shutoff valves. You use a $70 labor rate, a 20% materials markup, 15% overhead, and a 20% target margin.
| Labor (5 hours at $70) | $350.00 |
|---|---|
| Materials ($350 at cost, 20% markup) | $420.00 |
| Subtotal | $770.00 |
| Overhead (15% of subtotal) | $115.50 |
| Cost basis | $885.50 |
| Price (cost basis ÷ 0.80) | $1,106.88 |
Illustrative example — figures chosen to show the method, not a quote. How we source figures.
That's the number. Now you decide how to present it. If the job is clear and familiar, you quote it. If the customer might change their mind, or the plumbing behind the old vanity is unknown, you give an estimate range built from a shorter and a longer time on the job, with the parts price held firm:
| Presentation | Hours assumed | What you write |
|---|---|---|
| Quote | 5 | $1,106.88, fixed, for the scope listed |
| Estimate (range) | 4 to 6 | $1,006.25 to $1,207.50, final price depends on what's found |
Illustrative example — figures chosen to show the method, not a quote. How we source figures.
Notice that the range comes from the same math, run twice with different hours. You aren't inventing two numbers. The estimate is honest about the hours you can't yet see, and the quote commits to the hours you expect.
What a good written quote includes
- The customer's name, the address, and the date.
- A plain description of the work, and what's excluded.
- The price, and whether it includes materials, permits, and cleanup.
- How long the price is valid, so a slow reply doesn't hold you to old material costs.
- The deposit and payment terms.
- How you'll handle changes to the scope.
The full nine-part checklist, with a copy-ready template, is in what to put in a job estimate.
Common quoting mistakes
- Quoting sight unseen. A number from a description can't include what you haven't learned yet.
- Vague scope. "Redo the bathroom" can mean five different jobs.
- Forgetting the small costs. Disposal, permits, delivery, and the second trip for a forgotten part.
- No expiry date. Materials move. An open-ended quote becomes a free option for the customer.
- Quoting and disappearing. The job often goes to whoever follows up.
Go from a number to something you can send
In TradeReady you build the price in the pricing calculator, with hours, materials, markup, overhead, and a true margin, then turn it into an estimate you can send to the customer. Reuse the parts and jobs you've saved in your pricebook so your quotes stay consistent, and check the break-even price to make sure a quote never dips below what the job costs you.
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The bottom line
Quote when you can see the whole job and estimate when you can't. Either way, do the real costing first, write down what's included and excluded, put an expiry date and the terms on it, and follow up. A quote isn't a guess you're hoping to win. It's a price you've worked out and are happy to do the job for.
Common questions
What is the difference between a quote and an estimate?
In everyday trade use, a quote is a fixed price for a defined job, while an estimate is your best judgment of the likely price, often given as a range, that can move as the work unfolds. The words are used loosely and are treated differently in different places, so write down what your document covers and check what applies where you work.
How do I quote a price for a job?
Understand the job first, then write the scope and what's excluded, and cost it with labor hours at your rate, materials with markup, travel, overhead, and your target margin. Add a cushion where there's real uncertainty, decide whether to present one price, a range, or options, and include an expiry date and payment terms. Send it promptly and follow up.
Can I charge more than my estimate?
That depends on what you agreed and on local rules, so check what applies to you. As a habit, say in writing how changes will be handled, and use a range or a diagnostic visit when the scope is uncertain. If the scope changes after you've agreed a price, document it as a change order rather than absorbing it or adding a surprise at the end.
How long should a quote be valid?
There's no standard period. Choose a window that reflects how quickly your material prices and your availability change, and state it on the quote. A stated expiry date protects you from being held to old prices if the customer takes a long time to decide.
Should I charge for giving a quote?
That's your call. Many tradespeople quote simple jobs for free, and some charge for a site visit on larger or more complex work, crediting the fee if the customer goes ahead. Decide on a policy, tell customers before the visit, and apply it consistently.
What should a job quote include?
The customer's details and the date, a plain description of the work and what's excluded, the price and what it covers, how long it's valid, the deposit and payment terms, and how changes to the scope will be handled. A copy-ready template is in the job estimate guide.
- The figures above are arithmetic worked through on a sample job using the same true-margin method as the app, to show the same price presented as a quote and as a range. They are not survey data. See how we research these guides.
- How a quote or estimate is treated, whether a price can rise above what was stated, and what must be in writing vary by location, license type, and contract. Confirm what applies in your jurisdiction.
- Product notes describe TradeReady as it works today: price a job in the calculator, reuse pricebook items, see a break-even price, and create an estimate to send to the customer.