Should You Quote Rates Over the Phone?
I try to deal with my clients via email, rather than over the phone. It’s not really a question of whether or not I want to chat on the phone. Instead, the way I handle clients makes me more comfortable with setting rates and other tasks in writing. Of course, I’ll take a call to discuss a project — I certainly won’t refuse a call from a prospective client. But I won’t simply blurt out a number over the phone if I am asked. I even try to avoid ball-parking numbers.
Written Estimates, Always
With a phone call, it’s surprisingly easy for you to say one thing and for your client to hear another. You can wind up with a client who heard ‘fifteen’ when you said ‘fifty.’ You can also wind up with a client who heard that a whole list of things were included in your project rate that you don’t recall mentioning. Working in writing allows a freelancer to avoid many of these issues, especially if your estimate lays out very clearly what is covered and what isn’t.
But avoiding estimates over the phone also protects freelancers from ourselves. When we’re actually talking to a client, many of us have a tendency to quote a rate lower than what we might with a computer screen between us and that prospective client. The same holds true for giving estimates in person. The reasons seem to vary: some freelancers just aren’t particularly comfortable with asking for what may seem like a high price when they’re actively talking with the person who will be paying that rate.
There’s also the question of negotiation. For many clients, there’s a psychological difference between hearing you say a number and seeing that same number at the bottom of a formal estimate. Over the phone, there always seems to be more room for negotiation. Unless you’re comfortable quoting even higher prices over the phone and then negotiating your final price, that’s not a great position to put yourself in.
Take A Step Back
One of the other problems that can come from agreeing to projects over the phone or in person is that it’s easy to get excited about a new project. You may not always have your planner in front of you or realize that the amount of time you want to devote to this client will conflict with the clients you already have in place. No one ever wants to have a conversation with a client where it’s necessary to explain that the timeline you’d discussed just won’t work.
Having some time between when you first hear about the project’s scope and the time you send your client an estimate can help you get the distance necessary to make sure you can get the project done in the time allotted.
The Phone Isn’t All Bad
For some freelancers, the phone is the best way to communicate with clients — you may not only enjoy it, but find that you can iron out the details of a project better by talking than by writing. Whether or not you fall into that category, there are some circumstances in which using the phone may be the best option. With many clients, you’ll find that they prefer using the phone to communicate. If that’s the case, having a written estimate can be important, but you still may wind up going over every line of it with the client.
With repeat clients, you may not need a full estimate: a quick phone conversation can get both of you on track to get the project done, especially if you’ve completed other projects at similar price points in the past for this particular client. It’s always a matter of finding out not only what you’re comfortable with, but how your clients will be to work with through different communication tools. If you can’t get a client to open his email, after all, there’s no point in actually emailing him.
How do you prefer to give quotes to your clients?
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I never — repeat, never — give quotes over the phone. There are too many numbers I provide in my estimate as photographer (stylists, prop rental, assistants, usage fees) and by giving my day rate over the phone it only shows a portion of the big picture in terms of estimate.
Estimation is a process that requires time. I explain that to potential clients and I think they appreciate seeing everything written out.
On the flip side I don’t mind asking what their budgets are for a project verbally or over the phone. No sense in preparing an estimate that could never meet the scope of their budget.
Good stuff.
On the other hand, giving clients a ballpark figure either on the phone or in person gives them something to stand on. I’ve wasted time on proposals because the quote is way high, I’ve heard the, “oh, I was thinking $500″, when my quote was $5000. The phone or in-person conversation gives you a chance to educate them, tell them why the ballpark is what it is.
I think you need to assess the situation and go from there.
Good post. I never give quotes out over the phone and avoid one ballparks if at all possible. But writing a full proposal can take time so I will often take a quick look at a project then email a ballpark. If there is no “sticker shock” I know it is then worth my time to write up a full proposal.
I did some estimates over the phone in the past for smaller gigs, however I email a queationaire in which I ask the budget, before I spend an hour on a proposal or a basic estimate.
I don’t give quotes over the phone to first time clients. If a client that I already have wants to quote another job (only those clients who I have had a good relationship with, of course), I will gladly quote them over the phone, but I then send an email immediately with the quote and several upgrades that are possible.
I try to avoid giving quotes over the phone, because it’s simpler for me to divide the whole project into smaller parts and quote them alone and doing this on paper is simpler for me and also for the client to understand.
Moreover, sometimes the phone can be confusing, while written words are there for the future (Latin proverb says: verba volant, scripta manent, that is spoken words fly away, written words stay firmly there)
I do not give a quote or estimate over the phone. An estimate just for clarity sake is a price range that can change a quote is written in stone. Others may interpret it differently.
I have 2 methods of presenting a price quote, but before that I ask them to fill out a questionnaire for the project at hand.
Once I have their information, then i send out a a quick and easy proposal. It outlines my delivery and time line, how long my offer is valid for and total cost. It is one page and can be put together fairly easy.
Once they agree to the price, I then send them the 2 page contract with my clauses and other smaller detail which will take longer for me to assemble. They will then sign and return a copy with their payment.
I don’t think it matters where you give clients quotes. All that matters is the clarity in which you deliver the information.
If we are crystal clear on the frond end, not only on the price but also on the expectations we have of the clients and ourselves throughout the process, things will go significantly smoother.
We use mainly written communication at the beginning of the transaction, because this allows us to spell things out clearly. During the middle and end, there are times when we will communicate verbally because of convenience or whatever, and this helps develop the relationship further with the clients.
Where was I? Oh yeah, clarity is what we strive for throughout our entire web design process. So we give our quotes in black and white.
Although there are times when it’s best not to give quotes over the phone, there are other times when it is.
For example, if I get one of those calls that starts with “How much is this or that service?” then I’m probably dealing with a price shopper. And I don’t compete on price.
So, in order to get rid of these people, I name my price and poof! they’re gone.
I only skimmed the post, and quickly read the responses, but I thought it was finally time for me to throw in my 2 cents.
I think the major point we are missing here is the steps that take place before the actual quote. A “quote” in itself should always be in written form, but the last step taken. When you send a quote over, the only thing the lead should be doing is signing it and sending it back.
Before you send over a quote though I think it’s in your best interest to talk on the phone unless you’d rather meet in person. Yes everyone has different requirements, but lets be honest, have you not built enough websites that you can’t give a ball park figure? And are you quoting so low with such little room that you fear losing out and working for peanuts?
I think one thing most Web Designers lack is a basic price structure. A price list they can refer to.
What if your client has never experienced the process of developing a website, and has no idea what it should cost. Don’t you think it would be much easier to deal with price in person or over the phone?
But the bottom line is what works for you. If you’ve been very successful just emailing out quotes, then keep it up.
I never give prices over the phone. As others have stated, email leaves a paper trail, and I have yet to find a customer with better memory than me, so i want everything written.
Well said!
I really believe our clients benefit when we do not give ballpark prices and time commitments quickly by phone. If we haven’t had the time to check calendars and properly take into account research time and subcontractors, nobody is going to end up happy.
I agree with Matt, you can’t give a good estimate in five seconds
First off, I have to say that I love your name – Thursday! Around here, we’d have to call you pre-Friday
I hate giving estimates over the phone. I much prefer to work out a project plan with milestones, payment due dates for each significant completion date, etc. And since it’s all in writing, there is no dickering about it later. It makes for a much better LONG TERM customer relationship.
I normally give a rough quote over the phone, then make sure to follow up and confirm the quote through email. It gives the client a ballpark figure and allows them to make a decision, but allows me to have a written record of it.
I give ballpark figures over the phone – then after a good conversation and brief gathering – I will provide a written quote that I shoot to them via email. Quick and easy without any fuss.
Interesting. I think phone calls are nice to establish that rapport which can help you win a deal. Still, when money is involved, it’s always wise to have everything in black and white. At least, when something goes wrong, you will always have a document to backup your claim.
I have never really thought about it but all very valid points. I have only provided estimates to small projects that were more to build my portfolio than my wallet.
But at the same time I don’t think I would have hesitated to quote someone on the phone. I am always very eager and excited for new projects so the rate would definitely be less over the phone that if I waited to send a proposal via email. Great post…will definitely put these thoughts into action!
Great advice. I generally meet in person with a new client and give my base rate and then say, “and I’ll get back to you with a full proposal” with a monthly estimate for the project. And generally, after a pretty big phone convo, it can be good to send an email with a “recap” so you’re guaranteed to be on the same page.
I like this discussion very much. I think the idea of a verbal price quote depends on the type of work one is quoting about.
I actually have several lines of work and although I always say that I prefer to present an estimate in writing so that both the client and I are in agreement not only about the work to be performed, but all the details; depending on what a potential client wants me to do, I will give them a range to see if they panic or to gauge a budget. Like someone above said, a lot of folks have no idea what it costs to write an article, design a website, create a logo, create a web application, etc.
If I’m asked my hourly rate, I’ll give it over the phone with a caveat of when I charge by the hour and when I work for fixed fee. In addition, I’m running an experiment at present. I’ve listed a basic breakdown of my prices on my website and I find that if folks are coming to me from there, they know that I don’t compete on price either. So far, listing ranges of prices and offering descriptions of the project that can be purchased doesn’t seem to make a difference.
Bottom line: the phone is for beginning discussions of requirements, wishes, and a sort of dance between the potential client and myself as to price — the actual quote is always in writing.
I do like phone calls, as it opens up a real personal dialogue between a client and myself, that helps me assess their requirements. However if you don’t insist on a paper trail, you leave yourself wide open.
I have a set base pricing structure for websites. If someone is early in the buying cycle, I will give them ballpark numbers over the phone. If they are serious and ready to do business, then a face to face meeting is crucial.
I couldn’t agree more with you on this.
Writing a project proposal, or some sort of brief is the best you can do. It’ll serve you as a shield to cover your back from sudden misunderstandings.
When things are written on paper in a way everyone understands and agrees, everybody will definitely be happy.
What a brilliant post. Thanks for sharing.
You’re right on target. My estimates are always detailed, line item estimates, and you can’t do that over the phone. In the photography business, there are lots of variables than can add up, and I’d hate to get started on a job over a telephoned quote and wind up eating, or having to explain, unforeseen expenses. Quoting over the phone makes it too easy to leave money on the table.
I’d rather negotiate my rate through email for more clarification than quoting it over the phone. Writing leads to understanding and better agreement.
I give ballpark estimates, too – now more than ever. Mostly, it helps eliminate potential clients who are looking for the lowest price around, and aren’t well educated. Sounds harsh, but it saves me lots of time in wasted estimates for people who’d never consider my services anyway.
And after 15 years, I can be fairly accurate with my quotes – I usually shoot higher than I expect the project will cost, since projects almost always expand over time.
I don’t like giving prices on the phone, except for some occasions. Usually I like to present the offer by email. It’s true I had clients who contacted me via phone and we did have a good long relationship, so this is not a “no no” in itself. Depends I think on the person you’re talking to.
By just reading the title of this article, it makes me answer “NO” though Im not into formal business of giving quotations to clients. It would be professionally approprite when quotes are given through emails rather than telephone conversations. In case a client would really insist to know the estimated cost of his project, then say it but never forget to mention that details should be sent along.
I much prefer to give out quotes by email rather than over the phone. I feel pressured over the phone and, you’re right, I usually quote less over the phone. If a client insists, I’ll do it, but I’d much rather quote via email.