A Quote vs. A Bid

If you trying to price work to be done, it’s important to know the difference between a quote and a bid.

DEFINITIONS

A quote - When you ask the provider of the service or product to tell you how much they would do the project or service for with the understanding that you aren't asking other people to "bid" on the same project

A bid - When you ask the provider of the service or product to tell you how much they would do the project or service for with the understanding that you are asking other people to bid on the project as well

COMPARISONS

Less competitive vs. More competitive
May involve only one service provider vs. Will involve more than one
Compare price to what you had in mind or your budget vs. Compare price to what the others bid as well as what you had in mind or your budget

EXAMPLE

Mary Ann called a marketing company and asked them how much they would charge her to design a logo for her, design a brochure for her and have it printed and collated. She was asking them for a quote. She didn't call any other companies.

Marinella send the specifications for her project to 5 companies, outlining what she needed and asked them to bid on it. This signaled the companies that there would be direct and immediate competition and to sharpen their pencils.

KEY POINT

Signal the provider that you are asking for one or the other. It makes a difference in the price they will give you.

BENEFITS

It's a courtesy to let the company know, and they may also ask you to make this distinction, so you need to know the difference. Asking for bids may give you the best price. It may not, however, give you the best result.

RELATED DISTINCTIONS

Dating one person vs. Dating several people
Asking to taste the butter brickle at Baskin-Robbins vs. Asking to sample 5 different ice creams at Baskin-Robbins