"Send me a proposal."

"Can I get a quote?"

"What's your estimate?"

Clients use these terms interchangeably. But they mean different things—and using the wrong one can cost you money.

Here's when to use each and how to structure them for maximum impact.

Quick Comparison

	Estimate	Quote	Proposal
Purpose	Rough pricing	Fixed pricing	Sell and close
Detail level	Low	Medium	High
Binding	No	Often yes	Yes (when signed)
Includes scope	Minimal	Some	Detailed
Includes value pitch	No	No	Yes
Typical length	1 paragraph	1 page	2-10 pages
Close rate	Low	Medium	High

What Is an Estimate?

An estimate is a rough approximation of what something might cost. It's non-binding and subject to change.

When to Use Estimates

Early in the sales process (before full discovery)
When scope is unclear
When client just wants a ballpark
For complex projects that need investigation

What to Include

Approximate price range
Key assumptions
Major caveats
Note that it's not binding

Example Estimate

Based on our brief conversation, a project like this typically runs between $8,000-$15,000 depending on complexity. This is a rough estimate—I'd need to understand more about your specific requirements before providing a firm quote.

The final price will depend on:

Number of pages/screens
Custom functionality required
Timeline and revisions

Would you like to schedule a discovery call to discuss details?

Estimate Pros and Cons

Pros

Quick to provide
No commitment
Filters unqualified leads (sticker shock early)
Starts the conversation

Cons

Doesn't close deals
Can anchor price low
No mechanism for acceptance
Lacks persuasive elements

What Is a Quote?

A quote (or quotation) is a fixed price offer for a defined scope of work. It's typically binding for a stated period.

When to Use Quotes

Straightforward, well-defined projects
Repeat/standard work
When client just needs price (relationship already established)
Competitive bidding situations
Physical products or standardized services

What to Include

Fixed price (not a range)
Scope of work (itemized)
What's included/excluded
Validity period
Payment terms
Any conditions

Example Quote

QUOTE #2026-001
Date: January 7, 2026
Valid Until: January 28, 2026

Prepared for: Acme Corp

Project: Website Homepage Redesign

Scope:
- Homepage design (desktop + mobile)
- 2 rounds of revisions
- Final files (Figma + PNG exports)

Not Included:
- Interior pages
- Development/coding
- Stock photography

Investment: $3,500

Payment: 50% deposit, 50% on delivery
Timeline: 2 weeks from deposit

To accept: Sign below or reply "Approved"

________________________
Signature/Date

Quote Pros and Cons

Pros

Clear and direct
Easy to compare
Binding (protection for both sides)
Quick to produce

Cons

No persuasion or selling
Easy to commoditize
Focuses on price over value
Limited differentiation

What Is a Proposal?

A proposal is a sales document that explains the client's problem, offers a solution, and asks for the business. It combines pricing with persuasion.

When to Use Proposals

New client relationships
Complex or high-value projects
Competitive situations where you need to differentiate
When you need to justify pricing
When multiple stakeholders will review

What to Include

Executive summary - Problem, solution, outcome
Problem statement - Show you understand their situation
Proposed solution - What you'll do and why
Methodology - How you'll do it
Timeline - When they'll see results
Investment - Pricing with context
Social proof - Why they should trust you
Terms - Payment, scope, conditions
Next steps - How to accept
Signature block - Capture acceptance

Example Proposal Structure

PROPOSAL: Website Redesign for Acme Corp

EXECUTIVE SUMMARY
Acme Corp's website converts 1.2% of visitors—half the industry
average. This proposal outlines a redesign project targeting 3%
conversion, generating an estimated $180K in additional annual
revenue. Investment: $25,000.

THE CHALLENGE
[Their specific situation and pain points...]

OUR SOLUTION
[What you'll do and why it will work...]

APPROACH
[Your methodology and process...]

TIMELINE
[Phases and milestones...]

INVESTMENT
[Pricing with options...]

WHY US
[Credentials, case studies, testimonials...]

NEXT STEPS
1. Sign this proposal
2. Submit 50% deposit
3. Kickoff call within 5 business days

ACCEPTANCE
[Signature block...]

Proposal Pros and Cons

Pros

Sells and closes
Differentiates from competitors
Justifies premium pricing
Builds confidence and trust
Higher close rates

Cons

Takes more time
Can be overkill for small projects
May feel "too formal" for casual relationships

When Each Format Wins

Use an ESTIMATE When:

Client asks "ballpark?"
You haven't had a real discovery conversation
Scope is too vague to price
You're qualifying the lead

Goal: Start a conversation, not close a deal.

Use a QUOTE When:

Work is standardized/repeatable
Client knows exactly what they want
You have an existing relationship
They explicitly asked for a quote
It's transactional, not consultative

Goal: Provide clear pricing for a defined scope.

Use a PROPOSAL When:

It's a new client
Project is $5K+ (or whatever's significant for you)
You're competing for the work
You need to justify your pricing
Multiple stakeholders will review
The work requires explanation

Goal: Win the business and close the deal.

The Business Impact

Format	Typical Close Rate
Estimate only	15-20%
Quote	30-40%
Full proposal	45-55%
Proposal + follow-up	60-70%

The extra effort of writing proposals pays off in higher win rates—especially for larger projects where the dollar value justifies the time investment.

Hybrid Approaches

The Quick Proposal

For smaller projects, combine quote efficiency with proposal elements:

1 page max
Brief problem statement
Clear deliverables
Single price
One testimonial
Signature line

Takes 15 minutes instead of an hour, but closes better than a plain quote.

The Phased Approach

For complex projects:

Discovery phase - Small paid engagement to define scope
Detailed proposal - Full scope and pricing based on discovery

This reduces risk for both parties and ensures accurate pricing.

Quote + Proposal Hybrid

QUOTE & PROPOSAL

Dear [Name],

Thanks for the great conversation about your website needs.

THE OPPORTUNITY
[1-2 sentences about their situation]

WHAT WE'LL DO
[Bulleted scope]

INVESTMENT
$X,XXX

TIMELINE
X weeks

WHY US
[1-2 sentences + testimonial]

NEXT STEPS
Reply "Approved" or sign below to begin.

________________________

Common Mistakes

Mistake 1: Using Quotes When You Should Propose

If you're competing for work, a plain quote puts you at a disadvantage against competitors sending proposals.

Mistake 2: Over-Engineering Small Projects

A 10-page proposal for a $500 project wastes everyone's time. Match effort to opportunity size.

Mistake 3: Treating Estimates as Binding

Be clear: "This estimate is not a quote. Final pricing will be provided after we discuss requirements in detail."

Mistake 4: Letting Clients Define the Format

Client: "Just send me a quick quote."

You: "Happy to! I find clients appreciate a brief proposal that outlines exactly what's included and what results to expect. I'll have it to you by tomorrow."

Control the format when possible.

Making the Transition

If you've been sending quotes and want to switch to proposals:

Start simple:

Add an executive summary (3 sentences)
Add one case study or testimonial
Add a clear next steps section

That's it. You now have a basic proposal that will close better than a quote.

Then iterate:

Add more detail to each section
Include multiple pricing options
Add methodology/process
Polish the design

Tools for Each Format

Estimates

Email (just type it)
Notion/Google Docs

Quotes

Invoice software (FreshBooks, QuickBooks)
Simple PDF
Email with clear formatting

Proposals

OpenProposal - Full proposal + e-signature + payment
PandaDoc
Proposify
Google Docs/Canva (manual signatures)

What Clients Actually Want

Clients don't really care whether you call it a quote, proposal, or estimate. They want:

1. Clarity

What exactly will they get?

2. Confidence

Why should they trust you?

3. Price

How much will it cost?

4. Ease

How do they say yes?

Whatever format you use, make sure it answers these questions clearly.

Stop Leaving Money on the Table

Switch from quotes to proposals and watch your close rates climb.

OpenProposal makes it easy:

✓ Create proposals in minutes (not hours)
✓ Include e-signatures for instant acceptance
✓ Collect payment when they sign
✓ Track views and engagement
✓ Win more deals

Try OpenProposal Free

Summary

Need	Use This
Ballpark for early conversation	Estimate
Fixed price for defined work	Quote
Win new clients and close deals	Proposal

When in doubt, propose. The extra effort pays off in higher win rates and better client relationships.

Last updated: January 2026