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This post covers the estimate letter or you can call it a letter of estimation.
As a businessman or a service provider, you must find a professional way to reach your customers or clients in your dealings especially when it comes to price estimates.
Don’t just call and say ‘hello, 2 anti-seismic plates cost $1,000 and a lot of blah! blah!‘
REMEMBER a customer is always a king.
And the best way to handle your client as a king, when it comes to price estimates is through a well-written letter of estimation.
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Now! what the heck is a letter of estimation?
Relax, here I will guide you on everything you need to know about that including;
- what is an estimate letter
- Why do you need an estimate letter
- how to write an effective estimate letter
- estimate letter template
- estimate letter sample
- estimate letter for construction
Let’s get started
Jump to section
What is an estimate letter?
An estimate letter is a brief statement of facts written by a service provider to his potential client to inform him about the estimated price of the goods or services needed.
Among other things, this letter contains;
- Product or service name.
- Measurements like heights, weight, etc.
Generally, a letter of estimation is not legally binding. It commonly works as a mere offer with no binding effect.
For example, a construction company may write you a letter of price estimation of all materials required for your construction project.
Although this letter can be used by any service provider it is commonly used by;
That service provides uses estimate letters to estimate the cost of the project for their client.
Why do you need an estimate letter?
A letter of estimation offers great benefits both for your business and your customer.
The following is why you need one;
- It is a great business tool to build rapport with your client. A price estimate letter that has been effectively written might assist persuade a potential client that your level of professionalism deserves their business.
- It is a great opportunity to meet your client’s expectations. Much of the information a customer wants to know can be included in your pricing estimate letter.
- It is a good reference point that can help you with business decisions, legal issues, and positive client relations.
- It will help you to protect your revenue and profit.
How to write an estimate letter
A letter of estimation is written in a business letter format. Begin your letter with your address and contact information, followed by a date and the potential client’s address, and state that you are writing to provide a price estimation regarding his/her project. Describe the items and provide the prices. Don’t forget to tell your client to reach you for further queries.
REMEMBER the aim of your price estimate letter is to provide your client with an itemized price estimate for his project.
Therefore the following is how you can write an effective estimate letter for your client;
- Provide your name/organization, address, and contact information
- Include the date of the letter
- Include the recipient’s name, address, and contact information
- Make reference to your previous conversation (call, email, meeting, etc)
- Provide the list of the items and their costs (you can arrange things in the table for better readability)
- Provide the total project costs
- Tell your client if the price is for a specific period, like a one-month promotion or discount.
- Explain any special incentives that you offer alongside the estimates.
- Include all necessary documentation to support your letter
- Be clear and straightforward
- Maintain a professional tone
- Be honest
Estimate letter template
City, State, Zip Code
[Recipient’s Street Address]
[Recipient’s City, State, and Zip Code]
Dear [Recipient’s last name]
Re: Price Estimation for [name of the project]
We appreciate your call to [your company name] to discuss your [name of project].
Through this letter, We are pleased to provide the price estimate for your [name of the project] because we like [outcome of the project eg. assisting expanding families in our neighborhood in designing and constructing rooms that suit their needs.]
The following is a price estimate for your project
|Product||Model||size||Quantity||Price||Labor costs||Shipping costs||TOTAL COSTS|
|Product name||model number||required size||amount needed||price||labor charge||transport cost||Total item costs|
|TOTAL COSTS||Total price for all items||Total costs for labor||Total shipping costs||Total project costs|
This estimate for a [project name] includes a [#] discount for total labor costs valid until [date].
If you have any queries, kindly contact us through our email or phone number above.
We would be honored to work with you and look forward to assisting you in [main activity of the project eg. improving the comfort of your house.]
Estimate letter sample
The following is an estimate letter sample for a home improvement project
Home Deco LLC
2157 Benson Park Drive
Oklahoma City 73105 OK
January 01, 20..
4612 Meadow Drive
Oklahoma City, 73135 OK
Dear Ms. Thomson,
We appreciate your call to Home Deco LLC to discuss your central heating installment project in your house at Meadow Drive.
Through this letter, we are delighted to provide a price estimate for installing central heating in your house since we like assisting our client in creating the best home atmosphere ever that suit their needs at affordable costs.
The following is a price estimate for the whole project
(for the purpose of this post I will only list a few items)
|Installing of boiler (150Kw)||1||$5,000|
(price includes, all accessories and fittings)
|Burner Installation (27 kg/hr) (9) GPH||1||$2,500|
(price includes, all accessories and fittings)
|Radiators Installation capacity (2663) kcal/hr.panel(200*60)CM||1||$200|
|Radiators Installation capacity (22527) kcal/hr.panel(190*60)CM||1||$190|
|Radiators Installation capacity (2676) kcal/hr.panel(180*60)CM||1||$180|
|(PEX-AL-PEX) Pipe 16mm||1||$2|
This estimate for a central heating installment includes a 5% discount for total project costs valid until January 31.
If you have any queries, or proposed changes or you are ready to get started kindly contact us through my email or phone number above.
We would be honored to work with you and look forward to assisting you in the central heating installment.
We enclose a specification and a plan showing the required positions of radiators.