To write a quote, add your details and the client's, give it a number, a date and an expiry date, and list each product or service with quantity, unit price and line total. Then add up the subtotal, take off any discount, add the tax that applies to you (sales tax or VAT, if you are required to charge it) and finish with the total, payment methods and terms. A good quote fits on one page, makes sense without a phone call and tells the client exactly what to do to accept it.
It sounds simple, but this is exactly where many business owners lose sales: they send a bare price over WhatsApp, the client has no idea what it covers and the conversation goes cold. In this guide I will walk you through what a client quote should include, show you an example with real numbers and share the mistakes we see most often at Armony.
What is a quote (and how is it different from an invoice)?
A quote is a price proposal you send a client before they buy. It spells out what you will deliver, how much it costs and on what terms. It is not a bill: it is an offer with an expiry date.
The invoice comes later, once the client has accepted and pays you. In Panama, if your business is required to issue tax invoices, that invoice is created in a DGI-authorized system, for example the DGI's own free e-invoicing tool (Facturador Gratuito), or through an authorized provider. A quote does not replace that document; it sets it up.
To see the quote, the invoice and the receipt side by side, in the order you send them, read quote, invoice and receipt: which to send and when.
What should a client quote include?
This is the quote format we recommend, from top to bottom:
- Your details: business name, logo, RUC (tax ID) or personal ID number if you have one, phone, email and address.
- Quote number: for example COT-0012. It helps you find it when the client gets back to you weeks later.
- Date and expiry: "Valid until October 29." Without an expiry date, a client can hold you to a price from six months ago.
- Client details: name or company, contact info and, for companies, their RUC.
- What you are selling: one line per product or service, with a clear description, quantity, unit price and line total.
- Totals: subtotal, discount (if any), tax and final total.
- Payment methods: bank transfer, Yappy, card, cash… and whether you ask for a deposit.
- Terms: delivery time, what is and is not included, number of revisions, what happens if the client cancels.
- How to accept: "To confirm, reply to this message with an OK and the deposit receipt."
Quote example with sales tax
Picture a small design studio quoting a branding package for a coffee shop. It offers a 5% discount for paying upfront and has to charge a 7% sales tax where it operates.
| Description | Qty | Price | Amount |
|---|---|---|---|
| Logo design with 3 concepts | 1 | $350.00 | $350.00 |
| Editable Instagram templates | 6 | $20.00 | $120.00 |
| Business card design | 1 | $45.00 | $45.00 |
| Subtotal | $515.00 | ||
| Discount (5%) | −$25.75 | ||
| Taxable amount | $489.25 | ||
| Sales tax (7%) | $34.25 | ||
| Total | $523.50 | ||
Notice the order: subtract the discount first, then calculate the tax on what is left. 7% of $489.25 is $34.2475, which rounds to $34.25. If you calculated the tax on the subtotal before the discount ($515.00), you would charge $36.05 in tax: more than you should.
Below the table, the quote would close like this: "Valid for 15 days. Payment: 50% deposit by bank transfer or card and 50% on delivery. Delivery: 10 business days. Includes 2 rounds of changes."
Do I always have to charge sales tax?
Not always. In the United States, sales tax depends on the state, and many states don't tax services such as design or consulting, while others do. In Latin America the equivalent is VAT (IVA, or ITBMS in Panama), and small businesses below a sales threshold are often exempt. If you are not registered to charge it, leave the tax line off. When in doubt, check with your accountant: every case is different.
How do you write a quote, step by step?
- Ask before you quote. What they need, by when, how many units, where it gets delivered. A quote built on wrong assumptions is a quote you will have to redo.
- Price from your real costs. Materials, your time, fixed costs and fees. If you are unsure, read our guide on how to calculate a product's selling price.
- Break it into lines the client understands. "Logo design with 3 concepts" makes sense; "Package A" does not.
- Apply discount and tax in the right order. Discount first, tax second.
- Keep the terms short and clear. Expiry, deposit, delivery time and what is not included.
- Send it as a PDF, not a loose text message. A branded PDF looks professional, is easy for the client to forward to a boss or partner and does not get buried in a chat.
- Follow up. If you hear nothing in two or three days, write: "Did you get a chance to look at the quote? We can adjust the scope if you like." Plenty of sales close on that second message.
What are the most common quoting mistakes?
- Sending only the total. "It comes to $500" invites haggling. A breakdown shows what each part is worth.
- Leaving out the expiry date. Your costs change; your quote needs an end date.
- Forgetting what is not included. If shipping, printing or extra revisions cost more, say so.
- Calculating tax before the discount. You overcharge the client and look unprofessional.
- Using a different template every time. A consistent format with your logo and colors makes you recognizable and signals that you are organized.
- Not numbering quotes. Without a number, it is hard to tell which version the client accepted after changes.
- Mixing up a quote and a tax invoice. If you are required to invoice, the invoice is issued in the DGI-authorized system.
Word, Excel or an app?
You can write a quote in Word or Excel, and that is fine when you are starting out. The trouble begins when you quote often: copying the last file, deleting old details, checking formulas, exporting to PDF and not sending it to the wrong client. An app built for quoting saves your details and logo, keeps a history and does the math for you, so you only fill in what changes. If you quote design work, see the graphic design quote template with a priced example.
Frequently asked questions
Most quotes are valid for 15 to 30 days. If your material prices change often, use a shorter window. What matters is that you always write it down.
After. First subtract the discount from the subtotal, then apply the sales tax to the result (if you are required to charge it).
No. A quote is a price proposal. If your business is required to invoice, the tax invoice is issued in the system authorized by the DGI when the client pays.
Yes, and for many businesses in Panama it is the most practical option. Send it as a PDF with your logo, not as plain text, so the client can save it and forward it.
Wrapping up
A clear quote does half the selling: it shows you are organized, prevents misunderstandings and makes it easy for the client to say yes. Always use the same format, break it down, stick to the discount → tax order and add an expiry date.
Start today: open Cotiza Fácil and create your first PDF quote for free. If you quote every day, Cotiza Fácil Pro (USD 15 a month) gives you unlimited PDFs, no watermark and your own brand color.
Would you rather have someone build your whole sales system, from the website to branded quote templates? Let's talk and we will do it for you.