What is an Estimate Template?

An estimate template is a pre-designed framework. It is used to efficiently prepare professional as well as well-structured estimates.

The estimate presents estimated prices for products or services. It also lists project items which are largely based on the business acumen and judgment of the preparer.

Each listed item in the estimate, is given in terms of quantity and cost. This is then used in the final calculation to come to the total for the specific job under consideration.

This document is generally used in situations where the cost of the job, product, or service cannot be predicted accurately. This estimate document, is created and a flexible document (estimate) is used to predict and communicate the expected costing or selling price to the customer.

Who Uses an Estimate Template?

Users of estimate templates are sellers. They use this template when they need to generate an estimate. Customers usually request estimates, in situations where they would like some reasonable costing idea about the product or service which they would like to purchase or the project they want the seller to work on.

Estimate templates are widely used in the construction industry. It allows the communication of the estimated cost of construction. It can also be used in other project-based businesses.

It is interesting to note, that it is normal to have a variance when comparing the estimated cost with the final price of the project.

Why Use an Estimate Template?

There are several benefits of using an email template to generate estimates. This will now be discussed.

• Improved Clarity

  By having a structured layout and detailed listing, it creates ease and clarity, in terms of reading the estimate. When generating an estimate using a template, it is ideal for the business to list the cost components of the project. This makes it clear for the user to understand the proposed costing structure.

• Easily Customizable

  Estimate templates are designed in such a way that information can be easily customized. For this reason, estimate templates are a quick and efficient choice, when it comes to generating the estimate.

• Enhanced Consistency

  In terms of design and structure, there are limited or no variations in the actual estimate document which is produced using a template. This, however, is not a disadvantage. This is because, the comparison of different estimates and the analysis of past data, becomes easier when the same template is used for all the estimates.

• Enhanced Efficiency

  The time and effort to produce an estimate is greatly reduced by using a template. This is due to the fact that you are not required to create a design or input data from scratch. The only requirements are to update some essential information and then process it.

• Higher Accuracy and Completion

  With the use of an estimate template, higher accuracy is expected. Businesses only need to carefully update a few essential details (which are transaction specific). The rest of the information is already in the template. This means that, there is less chance of missing any essential information in the estimate.

• Enabling Users to Get Reliable and Organized Project Details

  Enhanced usability and value can be expected when using an estimate template. This is because a reliable, accurate, and organized list can be produced when the estimate is prepared using a template.

• Consistent Documentation

  It is easy to track and organize the records as well as having consistent documentation. This is largely due to the fact that estimates are expected to look the same, when using a template to generate the estimate.

• Professional Impression

  The estimates generated by an estimate template are easy to use and comes across as trustworthy. This makes it more professional and organized. Hence, higher professionalism is expected when using a template.

• Higher Conversion to Sales

  This is important to the business, as estimates can be converted into actual sales. This is due to the enhanced efficiency, professional impression, and ease of use of the estimate produced. It is beneficial to see that customers generally would like to work with professional and efficient businesses, that respond quickly in their business dealings.

  Hence, all these above points show that using an estimate template is a wise move on the part of the business. It helps to keep things in control while also adding value in terms of user experience.

How to Create a Professional Estimate Using a Template?

The following method, which will now be outlined, is generally used when creating professional estimates, using templates.

1. Select an Appropriate Template

   The first step involves the selection of an appropriate estimate template which is in line with your business requirements. While selecting the template, consideration of aspects, such as the extent of details required, the color theme of the template, size, file types, and other details is vital. In simple words, the template must be aligned with your brand voice.

2. Personalize the Template

   The next step involves personalizing the template with your business details, logo, payment details and other standard information. The remaining fields can be left blank. Then this personalized template can be saved on the device of choice. By doing this, there is no need to go through step 1 again. As the template can be used again and again to generate the estimates for next time.

3. Add an Estimate Clause and Essential Data

   This is a general clause which states that the estimate is based on judgment. The actual invoice can and may be different from the estimated amounts. Here, it is necessary to clearly write the estimate number, issue date and customer details and so forth.

4. Enlist Estimate-Specific Information

   The list should contain items that form part of the estimate. Each item should have a description, quantity, rate, and total sum.

5. Discounts Applicable on the Estimate

   If the business is giving the customer a discount, it is prudent to record the discount in the estimate.

6. Tax Rate(s) and Total Amount

   It is important to mention the tax rate(s) applicable to the service which you are intending to provide or if products are being sold.

7. Expiry Terms

   Recording the expiry date, helps to develop time validity, in which the estimate will remain valid for. Subsequently, the customer can place the order within the given terms.

8. Warranty Clause

   If applicable, mention the warranty period related to products and services.

9. Add Call to Action

   Write words which encourage customers to contact you. Use encouraging and friendly advice asking them to reach out and ask questions, if they need further clarification on the estimate. This will help to foster good business relations between the parties.

The estimate should be customized in the formatting, design, and color theme. This helps to ensure alignment with your brand styling and appearance. Further, it is professional to follow up and stay in touch with the customer. By doing this, it will certainly help to enhance the estimate conversions to sales invoices. This can be thought of as the prime purpose of the estimate template.

Conclusion

An estimate template is a document which is designed to be used, when generating an estimate. By using the template, it will enhance efficiency, accuracy, completeness, as well as consistency.

The estimate is generated or issued by the seller and is sent to the customer. It is expected to contain detailed, organized, formatted, and reliable information in regards to the rate, quantity, taxes, total amount, and so on, for the project under consideration.

For professional consistency, the template should be customized to align with your brand theme. The customization can include color, presentation, layout, design, among other aspects.

There are various benefits of using a template to generate the estimate. These benefits include, higher accuracy, completeness, consistency, enhanced efficiency, professional impression, and a higher rate of the estimates converting to actual sales invoices.

1. PDF Estimate Templates
2. HTML Estimate Templates
3. Word Estimate Templates / Google Docs
4. Excel Estimate Templates / Google Sheets