Avoiding calculation errors in quotations: how to work faster

Preventing calculation errors in quotations doesn’t start with checking them even more thoroughly just before you hit ‘send’. It starts with stopping the practice of gathering prices from separate supplier lists, old spreadsheets and last year’s quotation.

That approach seems quick, especially if you only have to draw up a single quotation. But as soon as prices change, options differ or a colleague takes over, you end up with outdated figures, omitted items and an incorrect price on the quotation.

Why do separate price files lead to errors in quotations?

Creating a quotation from Excel, PDF price lists and copied documents means you have to search, calculate and retype everything from scratch every time. Every manual step is an opportunity to select the wrong row or miss an option.

A common mistake is copying a previous quotation. The basic structure is already in place, but it may still contain an old purchase price, an outdated installation item or a discount that doesn’t apply to the new customer. The document looks familiar, whilst the content is no longer correct.

Different staff members may also be working with different versions without realising it. The owner has the latest supplier list, a colleague is still using an old file, and someone else is using their own spreadsheet. In that case, there is no fixed price; instead, the outcome depends on who draws up the quotation.

The risks usually lie in small details:

• a price increase by the supplier has not yet been included in the spreadsheet;
• an additional option, such as installation or finishing, is not included;
• a size falls into a different price bracket than you initially thought;
• a VAT rate is applied incorrectly;
• a copied discount is accidentally left in.

Correcting a single incorrect price in a quotation before the customer approves it is a nuisance in itself. If you only discover the error during execution or post-project costing, the profit margin on the job could vanish.

What does a calculation error in a quotation look like in practice?

Suppose you sell patio canopies. A customer requests a four-metre-wide veranda, with a glass roof, side wall, lighting and installation. You fetch an old quote, look up the width in the supplier list and add up the options manually.

You quickly find the base price. But the price of the glass was updated last month and the lighting is listed in a second tab. The side wall is mentioned in the description, but you forget to include it in the total. The customer receives a neat quotation, just not the correct one.

This isn’t a case of carelessness. The problem is that, whilst calculating prices for a quotation, you have to remember which files are up to date, which options belong together and which exceptions apply. When things get busy or you hand over to a colleague, it only gets more difficult.

That’s why it’s wise not to rely on someone’s memory or on a well-copied document. The pricing structure must be in one place and work the same way for everyone.

How do you prevent calculation errors with centralised pricing rules?

Centralised price management means defining the rules behind your quotation once and for all. For products with fixed dimensions and combinations, you use a pricing matrix. In this, you specify, for example, which price corresponds to a particular width, depth, material type and finish.

For products where the price depends mainly on surface area, length or quantities, a formula may be more suitable. Think of a base amount plus a price per square metre. The correct approach therefore depends on how your product is priced, not on which spreadsheet you happen to be using.

In Klantly, these pricing rules are used for both the configurator and the quotation. As a result, an enquiry submitted via the website arrives with the selections, dimensions and calculated price already included. You simply check the quotation and send it off, rather than having to recalculate everything from scratch. On the page about creating and sending quotations, you can see how quotations are sent as web pages and PDFs.

A central price list is only useful if you maintain it properly. You should therefore follow a set procedure:

1. Import or enter your current prices.
2. Check that all relevant combinations have a price.
3. Review changes before implementing them.
4. Save previous versions so that you can revert any incorrect changes.
5. Agree on who is authorised to adjust prices and who checks them.

You don’t need to enter every possible size individually. With size ranges, a single pricing rule can cover an entire category. If you already have a supplier list in Excel, you can use that as a starting point. The guide ‘Creating a price list online in Excel’ explains how to convert a list into a price calculation.

Why do you always need to check price changes?

A centralised list doesn’t prevent someone from entering the wrong amount. The difference is that your errors are no longer spread across five files and twenty old quotations. You adjust the price in one place and can see what changes.

This is particularly important following a price increase by a supplier. Don’t just check the new amount, but also which combinations are affected. Check whether a new material, a new colour or an extra option still has a price listed everywhere. Otherwise, missing combinations will mean that a customer does not see the correct price for their exact chosen specification.

Checking a pricing matrix isn’t a task you should leave to guesswork. Especially with multiple options, the number of combinations can quickly mount up. By checking for missing price rules, you can spot any gaps before your form or quotation gets stuck on them. You’ll find practical steps for doing this in ‘Checking a pricing matrix’.

When should you create a quotation without using Excel?

Excel isn’t necessarily the wrong choice. It can work perfectly well for a one-off calculation or an internal analysis. But if you’re constantly creating the same type of quotations, Excel quickly becomes an intermediate step that you have to check, copy and update.

Creating a quotation without Excel makes particular sense when your price is based on recurring choices. Think of sizes, materials, colours, glass, installation or accessories. Centralise these choices and the corresponding pricing rules so that every employee uses the same basis.

This not only saves time. The customer also receives a quotation that matches their selections, and you can easily trace the breakdown later on. With a configurator, the price the customer saw based on their choices is also reflected in the enquiry and quotation. Special circumstances, such as a difficult access route or unusual building conditions, can then be discussed separately rather than being quietly hidden away in a standard calculation.

Would you like to spend less time searching, calculating and correcting? Get started for free and discover, with no obligation, what Klantly can do for your quotation process.