Quote template: how to write a sales quote that gets signed (and still makes money)
By the BizDocs Studio team · Updated
- •A quote needs: your details, the customer's, a quote number and date, a valid-until date, each line with SKU, description, unit, qty, unit price and amount, then subtotal, shipping, tax and total, your terms and a place to accept.
- •Price from a list, not from memory. One list price per item with fixed tier discounts (for example wholesale 12% off, distributor 20% off) keeps every customer on the same rules.
- •Check your margin on every line before you send it. A $71.00 list item that costs $46.90 earns 33.9% at retail but 17.4% at a 20% distributor discount.
- •Give every quote an expiry (30 days is common for stocked goods) and log it. Win rate = accepted / (accepted + declined + expired).
Most free quote templates are an invoice with the word QUOTE at the top. They total the lines, but they do not know your prices, they do not know what each line costs you, and nothing reminds you that a quote went out three weeks ago and nobody followed up.
This guide covers what a sales quote should contain, how to price it consistently, how to protect your margin, and how to track quotes once they are sent. The examples come from the sample wholesale supplier in our template: a small foodservice packaging and janitorial distributor quoting a restaurant on wholesale terms.
What every sales quote should include
A buyer should be able to turn your quote into a purchase order without calling you. That means nothing important is left to a phone call.
| Section | What goes in it | Why it matters |
|---|---|---|
| Header | Your business name, address, phone, email, logo | The buyer's accounts team needs to set you up as a vendor |
| Quote details | Quote number, date, valid-until date, prepared by | The quote number is what their PO will reference |
| Customer | Company, contact, billing address, ship-to address | Wrong ship-to means wrong freight and wrong tax rate |
| Lines | SKU, description with pack size, unit, qty, unit price, discount, amount | "Hot cups" is not enough; "12 oz, white, 1,000 ct" is |
| Totals | Subtotal, shipping, sales tax with the rate, total and currency | No surprises when the invoice arrives |
| Terms | Payment terms, lead time, freight terms, returns, what is not included | Most disputes start with terms nobody wrote down |
| Acceptance | Signature, name, date and the customer's PO number | Tells you the quote became an order |
Step 1: price from a list with tiers
If you sell to retailers, restaurants and resellers, you probably already charge them different prices. Write it down once. Keep one list price per item and a fixed discount per tier, so a wholesale customer gets the same rule on every line and every quote.
Keep tiers (who buys) separate from volume deals (how much). A tier is set per customer. A volume deal is a line discount on a specific quote, like 5% off clamshells at 6 cases or more.
| Tier | Discount off list | 12 oz hot cups, 1,000 ct (cost $46.90) | Gross margin |
|---|---|---|---|
| Retail | 0% | $71.00 | 33.9% |
| Wholesale | 12% | $62.48 | 24.9% |
| Distributor | 20% | $56.80 | 17.4% |
Round prices are fine. If you want deli paper at exactly $64.00 wholesale instead of the calculated $65.12, set an override for that item and that tier only. A dated price list for each tier, grouped by category, is what you send when a buyer asks what you carry.
Step 2: check margin, not markup
Markup is profit divided by cost. Margin is profit divided by price. They are not the same number, and confusing them is the most common way small suppliers underprice. A 50% markup is only a 33.3% margin.
Set a minimum margin you will accept (the sample uses 15%) and look at every line against it before the quote goes out. Discounts stack: a distributor price plus a 5% line discount can drop an item under your floor without anyone noticing.
13 catalog lines at wholesale prices, e.g. 4 cases of 12 oz hot cups at $62.48 = $249.92
6 cases of 3-compartment clamshells at $51.92 less 5% = $295.94 (rounded per line)
One free line: logo sleeve setup fee, $85.00, not taxable
Subtotal $2,229.03 + shipping $35.00 + sales tax 7.25% on the taxable $2,144.03 = $155.44
Total $2,419.47, valid until 11/29/2026 (quote date 10/30/2026 + 30 days)
Your cost of goods $1,661.00, gross profit $568.03, gross margin 25.5%. The degreaser line with a 10% discount runs at 17.8%: above the 15% floor, but the lowest line on the quote.
The customer never sees cost or margin. Keep that math beside the quote, not on it.
Quote from your own price list, check your margin before you send it, and track every purchase order until the last case arrives.
Step 3: set terms and an expiry date
Supplier prices, freight and stock change. A quote without an expiry date can be held against you months later. For stocked goods, 30 days is common; for pallet deals or commodity items with moving costs, 15 days is safer. Print the date, not just "valid 30 days".
Spell out payment terms (Net 30 for approved accounts, payment on order for new ones), lead time, freight terms and whether shipping is an estimate. Say that stock is not reserved until you receive a signed quote or purchase order. If you sell to resellers, collect a resale certificate and note its expiry date; check with your accountant how tax-exempt sales work in your state.
Step 4: log every quote and follow up
One row per quote: number, date, customer, total, valid-until date and status. Sent quotes should turn to Expired on their own once the date passes, so the open pipeline only counts quotes that can still close. Add a follow-up date a few days after sending.
Measure win rate on decided quotes only. In the sample log, 12 accepted, 4 declined and 3 expired gives 12 / 19 = 63.2%. Measure it by value too, since winning many small quotes and losing every large one is a pricing problem. Write down why you lost: price, timing or a competitor. After twenty quotes you will see a pattern.
After the yes: purchase orders and the invoice
When a quote is accepted, record the customer's PO number and the decision date. If you need stock, raise a purchase order to your supplier with their part numbers, your cost and a deliver-by date, and log it. Record each delivery against the PO so partial shipments stay visible.
Check the supplier's bill against what arrived, not against what you ordered. In the sample, a PO for $4,677.60 of paper goods arrived one case short (a crushed case of napkins was refused), but the bill was for the full order plus freight. That is $39.70 to claim back, and it only shows up if receipts are logged.
Then invoice from the accepted quote: same lines, quantities, prices, tax and shipping, with their PO number on it.
Mistakes to avoid
- Pricing each quote from memory or from the last quote you sent that customer.
- Discounting a tier price without checking the margin that is left.
- No valid-until date, or one that is never enforced.
- Vague lines ("cups", "cleaning supplies") that the buyer cannot match to their PO.
- Charging sales tax to a reseller with a valid certificate, or skipping it for one whose certificate has expired.
- Sending a quote and never following up. Many quotes are lost to silence, not to price.
Frequently asked questions
What is the difference between a quote and an estimate?
A quote is a fixed price for specific items and quantities, valid until a date. An estimate is an approximate price that may change, common for labor and project work. Suppliers selling stocked goods usually send quotes.
How long should a quote be valid?
Thirty days is common for stocked goods. Use 15 days or less for pallet deals and items whose cost moves often. Always print the actual expiry date on the quote.
Is a signed quote a contract?
Many suppliers treat a signed quote or the customer's purchase order as the order. Whether it is binding depends on your terms and your state's law. This is general information, not legal advice; have a professional review your standard terms.
What should a purchase order include?
PO number and date, your billing and ship-to address, the supplier, each line with your SKU, their part number, description, unit, quantity and unit cost, totals, payment and freight terms, a deliver-by date and an authorized signature.
What is a good quote win rate?
It depends on your trade and how you count. Track yours on decided quotes (accepted, declined, expired), by count and by value, and watch the trend. A falling win rate on large quotes usually points to price or speed of follow-up.
This guide is general information for US small businesses, not legal advice. Rules vary by state and city; have a local attorney review contracts and notices before use.
Quote from your own price list, check your margin before you send it, and track every purchase order until the last case arrives.
