Answers Quotes
What is a quote? The complete guide for caterers
What is a quote, what should be on it, and how binding is it? The complete guide for caterers, from first offer to signed job.
A quote is your first impression with a new client and the basis of every catering job. This guide covers what a quote actually is, what should be on it, how binding it is, and how to stop a good quote sitting unread in your client's inbox.
What exactly is a quote?
A quote is your offer to a client: what you'll deliver, at what price and under what terms. In catering that usually means a breakdown of dishes or packages, guest numbers, staff, equipment and extras such as transport or service.
Once the client agrees, the quote becomes the basis of the job: what's in it is what you deliver.
That makes a quote something different from a price indication you mention over the phone. A quote is a concrete, written offer a client can say yes to, and that you as a caterer can be held to once that happens.
Quote, estimate, invoice or contract: the differences
These four terms get used interchangeably, but they're not the same. A estimate is a non-binding estimate, often without all the details. A quote is more specific, and meant to be signed.
A contract only comes into being once the client accepts the quote: from that moment you're both bound by what's in it. An invoice you send afterwards, to bill for what you delivered based on the quote.
Not sure which of the four applies to a specific request? The in-depth articles go deeper into each difference: quote versus estimate, quote versus invoice and quote versus contract.
Is a quote binding or non-binding?
That depends on what you put in it. In the Netherlands and Belgium a quote is in principle binding once the client accepts it, unless you explicitly state that it's non-binding.
If you don't write anything about the validity or the nature of the quote, you risk a client holding you to an outdated price months later. If ingredients have got more expensive in the meantime, you pay that difference yourself.
So always state clearly on the quote whether it's non-binding or binding, and what happens once a client signs. The full explanation is in how binding is a quote and what is a non-binding quote. Has a client already signed and do you want to know what that means for both of you? Read what happens once you sign a quote.
What must a quote legally include?
A good quote contains at least: your company details and Chamber of Commerce number, a clear description of what you're delivering, the price excluding and including VAT, payment terms, an expiry date and your terms and conditions.
If one of those points is missing, a quote isn't automatically invalid. But you do leave a client room for an argument later, and you'll always have that argument at the wrong moment: once the event has already happened.
You'll find a full overview of what's legally required and what's strongly recommended in what must a quote legally include.
How long is a quote valid?
Most caterers use a validity period of two to four weeks. Short enough to keep your prices current, long enough to give a client time to decide.
Always put that deadline on the quote. Without an expiry date, a client could in theory still claim a price months later that no longer holds up, for instance because your purchase prices have gone up.
Is a quote about to expire without a reply? Send a short reminder rather than letting it lapse quietly. That way you decide yourself when a price becomes open for renegotiation.
Setting the right price and terms
A price that's just a touch too high costs you the job. A price that's too low costs you margin. Besides ingredients and staff, count your fixed costs too, plus transport and a margin for what you didn't see coming.
If you work with food trucks or off-site venues, count the set-up time and the drive there too. Those two are the ones most often forgotten in a first price calculation, and they both sit in your people's hours.
You can read more about building your prices in how do you calculate prices for a catering quote and transport costs in catering quotes. Does the job end up differing from what you budgeted, for instance because of a different guest count? Then read how much can a quote deviate how you handle that without surprising the client.
Sending a quote, following up, and handling replies
Most quotes that don't turn into a job don't fail on price or content. They fail on silence. A client asks for a quote, gets busy for a moment, and forgets to reply.
So always follow up. A short reminder after a few days doesn't feel pushy, it actually shows you're taking the request seriously.
How and how often to follow up, you can read in how to follow up after sending a quote. Does a client find your quote too expensive, or does something no longer add up after you've already sent it? Then what to do when a client finds your quote too expensive and what to do if your quote is wrong help you further.
Quoting faster and more personally
Building every quote from scratch costs you an evening you'd rather spend on the job itself. With a template you set up your company details, terms and layout properly once, and then only adjust the content per client: guest count, menu, date and price.
That way a quote still goes out the same day, and still reads like an offer made for this client. That wins you more jobs than a sharper price, since the caterer who sends something decent first is the one stuck in the client's head first.
You can read how to go about that in how you personalise a quote template. And once a job wraps up, asking for feedback is worth just as much as the quote itself: it gives you the words for writing your next one, as described in gathering customer feedback for future quotes.
Frequently asked questions
Is a quote the same as a contract?
Not quite. A quote is the offer; a contract only comes into being once the client agrees. From that moment, the same rights and obligations apply as with a contract.
Do I need to show VAT separately on a quote?
Yes, always state the amount excluding and including VAT, and the rate applied. That avoids arguments afterwards, especially with business clients who reclaim VAT.
Can I still change a quote after a client has agreed?
Only by agreement. Once a client signs, the quote has become a contract. If you want to change something, for instance because of a different guest count, record that in writing as an addition rather than quietly changing the original quote.
How fast should I respond to a quote request?
Within a day or two gives you the best chance at the job. Caterers who respond fast and fully get picked more often than caterers who are cheaper but slow to answer.
What do I put on a quote when the guest count isn't fixed yet?
Name a price per guest and a guest count you're basing it on, and state the date up to which the client can still adjust that number. Then you both know where you stand, and you don't have to redo the quote four times.
Do I ask for a deposit on a signed quote?
That's common for bigger jobs, especially if you buy in stock or book staff in advance. Put the amount and when it's due in the quote itself, and it's no longer a separate conversation once the client signs.
Building quotes, following them up and turning them into a job all belong together. Catermonkey builds your quote from your own dishes and prices, keeps track of which ones are still open, and turns a signed quote into the job and the invoice without you typing the amounts in again.
Try it for freeCatermonkey works this out for you while you build the quote.
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