Frequently asked questions and answers on the subject of preparing quotations in the skilled trades sector
Can Tradesmen and craftswomen subsequently change or withdraw their offer?
Yes, in principle it is possible to subsequently change or completely withdraw the offer. However, this only applies as long as no contract has come into force, i.e. the customer has not yet accepted the offer. If the contract has already come into effect, it can be revoked under certain circumstances.
Is a craftsman's offer binding?
Yes. The offer is binding with regard to the described scope of services and the price for the specified period.
How long is a craftsman's offer valid?
Tradesmen and craftswomen themselves decide on the period of validity of their offers. Most often, the period is between one and three months.
Even though prices are shown in both documents, the offer and estimate differ significantly1:
- Binding nature: While the price noted on the offer is binding, this does not apply to the cost estimate.
- Costs: A quotation is always free of charge for the client, but a cost estimate can be charged after prior consultation.
- Service items: Unlike a cost estimate, a quotation does not have to include a detailed breakdown of all individual services.
Quotation and cost estimate are therefore not identical. But what else do you have to pay attention to when preparing a quotation?
Now it's time to get down to business! When preparing a quotation, it is important to convince your customers. The best way to do this is to go into as much detail as possible about your services and/or products and to show prices transparently. In addition, there are important formalities, compliance with which immediately identifies you as a professional. These include:
- Company and customer address
- Current date
- Offer number
- Validity period of your offer
- Positions, services, quantity and/or hourly effort
- Prices, discounts and total
- Taxes
- Execution time and payment terms
- Release clauses
Important: According to GoBD(principles for the proper keeping and storage of books, records and documents in electronic form as well as for data access), you are obliged to keep offer letters for at least six years!
Company and customer data
Even if you send the offer by e-mail: In the letterhead, include your company address and contact details as well as those of the customer. This helps with the assignment and makes it easier to contact you.
Important: It is also imperative that you state your VAT identification number and commercial register number - if available. This is required by law.
Offer number
There is no obligation to display an offer number. Nevertheless, it helps to clearly allocate your offers. You are free to create corresponding numbers, but the combination of year and a consecutive three-digit number has become established.
Example: The offer number of the 23rd offer in 2022 would accordingly look like this: 2022023.
Current date and validity period
Don't forget to note the current date as well as the validity period of your offer. This way, your customers will know at a glance how long they have to make their decision before the offer expires.
Services
The main part of your offer is the service description. So that potential customers know exactly what they are buying from you, it is essential to go into as much detail as possible about the services and goods (including quantities!). In this way, you avoid misunderstandings and create transparency, which in turn ensures trust.
Prices, discounts, taxes
Of course, the price of your services and products is particularly important for customers, but also for your balance sheet. Therefore, show the costs specifically and make sure that it is clear which quantities, hours or for which period of time the prices apply. Travel costs are also included here!
If you grant discounts, please show them separately. The same applies to the sales tax, which you must also indicate if you are subject to sales tax. Finally, state the total amount in gross and net.
Execution time and payment terms
When will you execute the Job? And when do you want to be paid? Your customers will certainly ask themselves these questions. It is best to answer them directly in the offer letter and thus ensure (legal) clarity - for both sides!
Release clause
From a legal point of view, a quotation is a declaration of intent (unlike a cost estimate) and is therefore binding. You should therefore mark non-binding offers with a liability or release clause.
Note: More information on this topic can be found on the website of the Federal Agency for Civic Education.
What happens after you have sent your offer? Hopefully with a new Job!
Your customer has confirmed the Job to you. Congratulations! Now you can finally get started! The Meisterwerk app will help you master the Job just as professionally as you did the offer letter. Everything you need to know about business organization in the trades can now be done easily in one application on your tablet or smartphone:
- Scheduling & dispatching
- Exchange of information between employees and office
- Time tracking
This way, you always know what is being done, when and by whom, and can directly create the next offer for your clientele in the time saved.
