Getting Started with Quotes

Overview

Cornerstone provides lead contact management and sales pipeline tracking capability. You can create prospect accounts, design and generate professional quotes, and track the sales process and job status.

Planning Your Quote Presentation

Before creating quotes, think about how you want to package your company and present your services. This information will be used to create and store proposal sections and develop template quotes that speed up your ability to customize and produce professional proposals.

1. Company Overview

Do you have an overview that presents your company and all you can do?

Consider:

• Perhaps your website has text you want to use in proposals
• Do you need different summary overviews for different services?
• Example: More detailed information for Fire Systems versus audio-visual quotes

Flexibility: You can create as many letters as you'd like, then choose which is appropriate for each quote.

2. Introductory Letter

Do you want to include a letter to the customer in the proposal?

Consider:

• Do you want different letters available for different types of proposals?
• Customize tone and content based on service type or customer segment

3. Images

Do you have images you wish to include?

Examples:

• Membership badges (BBB, Angie's List)
• Burglar and Fire association certifications
• Industry accreditations
• Awards or recognitions

4. Quote Details

Do you need to provide commentary on the items or types of services you're proposing?

Use for:

• Explaining technical specifications
• Describing service benefits
• Clarifying installation requirements

5. Optional Items

Do you often propose optional items and need to provide commentary?

Examples:

• Premium upgrades
• Additional coverage areas
• Enhanced monitoring features
• Extended warranties

6. Product Images

Do you want to provide images for items included in your proposal?

Note: If Cornerstone doesn't have images in our library of Manufacturer parts, you can add them to your own images library.

7. Scope of Work / Exclusions / Conditions and Warranties

Create and store your default terms and conditions for services you provide.

Include:

• What's included in the scope
• What's explicitly excluded
• Installation conditions
• Warranty terms and limitations

8. Payment Terms

Create and store payment terms so specific terms can be selected for each proposal.

Common Examples:

• 50% at acceptance and 50% at completion
• 30/30/40 split across milestones
• Net 30 after completion
• Progress billing schedules

Important: Keep track of payment terms after acceptance as part of a service ticket so you invoice appropriately.

9. Acceptance

Specify the acceptance terms clearly.

Critical Caveat: Make sure you include language stating that acceptance of the proposal is not an agreement to provide the services in the proposal. You do not want the proposal to be interpreted as the monitoring contract!

10. Price Validity Period

How long will you honor the quoted price?

Default Setting: There is a net terms default that sets the "Good Thru" date

Flexibility: You may wish to adjust terms on individual quotes based on:

• Material price volatility
• Project complexity
• Market conditions

Building the Quote Details

The process is similar to creating an invoice for Equipment and Labor items. This makes it easy to turn an accepted proposal into either an invoice or a work order/service ticket that includes all the proposal items your techs need to install the job.

Equipment Options

You have two approaches for handling equipment in quotes:

Option 1: Specific Parts with Inventory Tracking

List specific parts and track them in your inventory. Keep inventory current with:

• On-hand counts
• Unit price
• Unit cost

Benefits:

• Accurate profitability tracking
• Real-time availability checking
• Precise ordering and receiving

Option 2: Generic Part Descriptions

Use generic part descriptions for proposals, then shop vendors for the best price on component parts at time of acceptance.

Benefits:

• Flexibility to choose best vendor pricing
• Faster quote generation
• Competitive pricing advantage

Important: Even with generic descriptions, record unit price and cost to track price and profitability for quotes.

Note: At installation time, specify exact parts for the installation ticket or invoice so parts can be recorded on the customer's equipment list.

Combined Approach

You can use both methods - specific parts for standard items and generic descriptions for specialty or variable-cost components.

Inventory Management for Quotes

Whether using specific or generic parts, you'll want to review or build your inventory system.

Benefits of Updated Inventory

For Quoting:

• Up-to-date unit price and cost info helps with accurate project quotes
• Track profitability on proposals

For Scheduling:

• Tracking quantity on hand identifies service tickets that can be scheduled (parts available)
• Identifies tickets that need to wait (parts on order)

For Ordering:

• Use Purchase Order functions to order and receive parts from vendors
• Update extended cost before "receiving" inventory to maintain accurate average unit cost
• Better pricing decisions based on actual costs

Updating Templates

Templates and other quotes can be updated with current price and cost information from your inventory, ensuring your proposals always reflect current pricing.

For more details: See the Inventory Tip Sheet.

Managing Quotes: Dashboard Overview

The Quotes screen provides an overview to assist with:

• Lead contact management
• Sales pipeline tracking
• Job status monitoring

Key Information at a Glance

The dashboard displays:

• Quote Amount - Total proposal value
• Invoiced Amounts - How much has been billed
• Profit Margin - Quick review to ensure quotes meet target margins

Filtering Options

Various filters help you view quotes that fit your criteria:

• Pending Only Sorted By Status
• Pending Only for Quote Status "In Development"
• Quotes Good Thru a specified Date range
• Custom combinations based on your needs

Security Settings

The dashboard has security settings that can allow Sales Reps to only view their own quotes, protecting competitive information and maintaining appropriate access controls.

Customizable Categories

The Categories for Lead, Quote, and Sales Status have default categories, but can be customized to your organization's terminology.

Examples:

• Change "Hot Lead" to "Priority Prospect"
• Customize stages to match your sales process
• Align terminology with your CRM workflow

Workflow: From Quote to Completion

Step 1: Create Prospect Account

Set up lead contact information and track initial engagement.

Step 2: Design Quote

• Select appropriate templates and sections
• Add equipment and labor items
• Include images and detailed descriptions
• Set payment terms and acceptance language

Step 3: Generate Professional Proposal

Create polished, branded proposal documents.

Step 4: Track Sales Process

Monitor quote status, follow-up activities, and pipeline progression.

Step 5: Convert to Work Order

Upon acceptance, easily convert quote to:

• Service ticket with all installation details
• Invoice with proper payment terms
• Customer equipment list entries

Best Practices

Template Strategy

• Create templates for common service types
• Include standard sections that apply to most quotes
• Customize templates for different market segments
• Regularly update templates with current pricing

Profitability Focus

• Always track cost information, even with generic parts
• Review profit margins before sending quotes
• Set minimum margin thresholds
• Analyze won vs. lost quotes to optimize pricing

Professional Presentation

• Include high-quality product images
• Use clear, professional language
• Provide detailed scope of work
• Make acceptance terms crystal clear

Pipeline Management

• Update quote status regularly
• Set follow-up reminders
• Track reasons for wins and losses
• Use filters to prioritize high-value opportunities

Additional Resources

For detailed descriptions of the screen and list options, as well as detailed instructions for creating quotes, see the Quotes User Guide.

Need Help?

Still have questions? Contact Cornerstone Holding Co. 847-405-9517 or email us customer.success@alarmbills.com