Quotes versus estimates, did you know there was a difference?

“Estimates are a rough idea of price. They should be used as an initial guide price only. Quotes are legally binding and should only be used when you are certain of the costs involved.” -YourTradebase

In the summer of 2023, I took a course through Simon Fraser University called “Freelancing for Editors” (EDIT509-ON12342). In the second module, there was a section about quotes versus estimates. I didn’t know there was a difference between the two, and I, like many other people, used the terms interchangeably. They are different, though.

A quote is a firm price agreed upon between the client and the service provider—in this case, the editor—for the completion of a job. The quote requires that the editor get a certain number of details from the client in order to fairly and accurately set the price. With an estimate, the client may not know the details of the project. So, the editor should collect as much information as possible and then make educated guesses to come up with the best and worst-case estimates instead of a firm price. It’s a rough estimate—a guesstimate—of the price for the completion of the job; the end price might go up or down depending on the project. For a quote or an estimate, it’s recommended it’s provided in writing and has an expiry.

By Shari Marshall – 2023