A non-binding quotation is a price estimate that you, as an entrepreneur, can adjust or withdraw without legal consequences. For hospitality and event companies, this offers flexibility in changing circumstances such as seasonal prices, uncertain supplier costs, or complex events where details are still subject to change. It allows you to give an indication of costs without committing yourself definitively to the terms and conditions.
What exactly does a no-obligation quote entail?
A non-binding quotation gives you, as a hospitality entrepreneur, the freedom to adjust your price quotation without legal consequences. Unlike a binding quotation, you can withdraw the price, conditions or even the entire quotation if circumstances change.
From a legal perspective, no contract is formed when a customer accepts a non-binding quotation. You retain the right to revise the terms and conditions, for example, if supplier prices increase or if the customer subsequently requests changes to the menu or schedule.
This is important for catering companies and event agencies because you work with fresh ingredients whose prices fluctuate. Even with complex events, unforeseen costs can arise that you could not estimate in advance.
The difference with a binding quotation is that with a non-binding quotation, you always have the option to negotiate the final terms and conditions before entering into a contract.
When should you use a non-binding quote?
You use a non-binding quotation mainly during initial contact with new customers, when you do not yet know all the details of their requirements. This gives you the flexibility to make adjustments later without any legal issues.
A non-binding quote is useful for seasonal prices. Think of Christmas menus where the price of specific ingredients may still change, or summer barbecues where weather conditions can affect costs.
Complex events involving many uncertainties, such as weddings with a variable number of guests or corporate parties where the location has not yet been finalised, are ideal for non-binding quotations.
Even when working with external suppliers or subcontractors who have yet to confirm their prices, a non-binding quotation protects you against unexpected cost increases.
What is the difference between a non-binding and binding quotation?
The main difference lies in the legal obligations. With a binding quotation, you are obliged to comply with all the terms and conditions once the customer has accepted it. With a non-binding quotation, you retain the option to make changes.
| Appearance | No-obligation quote | Binding quotation |
|---|---|---|
| Legal obligation | No immediate obligation | Fully binding upon acceptance |
| Price adjustments | Possible until final agreement | Not possible without mutual agreement |
| Suitable for | Complex events, initial contacts | Standard catering, set menus |
| Communication with customers | Clearly state “without obligation” | Acceptance period and conditions |
Always clearly communicate to your customers what type of quotation you are sending. Explicitly state “non-binding quotation” in your document and explain what this means for the follow-up process.
How do you create a professional, no-obligation quote?
How do you create a professional, no-obligation quote?
Always include these elements in your quotation:
- Customer details and contact information
- Date and quotation number for administration purposes
- Detailed description of the desired event
- Price quotation per component (catering, staff, materials)
- Validity period of the quotation
- Terms and conditions and what is not included
Utilise professional quotation software to ensure a consistent look and feel. Modern systems assist you in automatically adding the correct elements and maintaining your corporate identity.
Conclude with a clear call to action explaining what the next steps are and when you need final confirmation.
Conclude with a clear call to action explaining what the next steps are and when you need final confirmation.
Flexibility in pricing is the biggest advantage. You can respond to market changes without being tied to a previously agreed price. This is particularly valuable in the hospitality industry, where ingredient prices fluctuate regularly.
You build better customer relationships by being transparent about uncertainties. Customers appreciate honesty about possible changes more than unpleasant surprises afterwards.
You significantly reduce legal risks. You run no risk of having to make a loss on a contract because you are bound by an excessively low price.
You retain room for negotiation until the very last moment. This allows you to adapt to the customer’s wishes and thus secure more orders.
You can respond to enquiries more quickly because you don’t have to figure out all the details perfectly before giving an initial price indication.
How do you ensure that customers take your no-obligation quote seriously?
A professional presentation is essential. Utilise a sleek design, your own corporate identity, and ensure that your texts are error-free. Even if your quotation is non-binding, your professionalism must be convincing.
Communicate proactively about the next steps. Explain when you expect final confirmation and what will happen if the customer agrees to your proposal.
Build trust by mentioning references, showing photos of similar events, and emphasising your experience. Customers should feel confident that you can successfully realise their event.
Follow up promptly with a personal phone call or email. Show interest in their event and offer to answer any questions they may have.
Provide a realistic timeline for when you can prepare a final quote. This demonstrates that you work in a structured manner and are serious about the collaboration.
A no-obligation quote is a valuable tool for any hospitality entrepreneur who wants to remain flexible without scaring customers away. By communicating professionally about what no-obligation means and following up consistently, you build trust and increase your chances of getting business. At Catermonkey, we help entrepreneurs streamline this process with smart templates and automatic follow-up, so you have more time for what really matters: creating unforgettable events.
Ready to optimise your quotation process?
Do you have ideas or questions about how to use non-binding quotes more effectively? Catermonkey is happy to help you figure out how our platform can support your company in streamlining your quotation process. From smart templates to automatic follow-ups, we help you create more time for what really matters.
Plan your brainstorming session with Catermonkey! Click here to schedule a no-obligation brainstorming session and discover how we can take your business to the next level.
