The True Cost Of Quote Errors & Why A Custom Quote System Is The Fix

It is easy to disregard a small typo or a wrong discount in a sales quote. After all, errors are second to human nature, so how bad can it get? Surely, it is fixable, right? With no real consequences?
 

As much as we would like to say “yes”, we have heard one too many horror stories of how incorrect quotes have led to revenue loss. In fact, as per one news study, bad data can be unimaginably costly. Think US $3 trillion per year!
 

Small sales quote errors do not seem so small now, do they? While the above points to the tangible costs of high quote error rates, other intangible costs can arise, too. These can take the shape of delays, revisions, and unhappy customers.
 

The fact that quoting errors are more expensive than they appear is why there has been a burgeoning demand for custom quoting systems. More and more businesses can now see the value of automating their quoting processes.
 

Preset pricing logics, live data syncs, seamless approvals, and error-free quotes are benefits any business can get behind. Yours too. In this blog, we will show why opting for custom quoting software is a good idea and how it can help you fix the true cost of quote error rates. Let’s begin! 
 

Understanding Quote Error Rates & Where They Come From

In themselves, quote error rates are KPIs you can use to measure the performance of your entire sales quote process. If your error rates are high, that means the method you follow needs course correction. What you need to do then is carefully look into your quoting process and identify issues that drag it down.

Let’s discuss common sources of quoting mistakes in sales you can look into to gain a deeper understanding of your entire process, from the first draft to the final proposal.
 

Manual processes and spreadsheet-based quoting

Quoting when carried out on spreadsheets is not only cumbersome but is also error-prone. Whether you use Excel or Google Sheets, copy-pasting erroneous numbers with missing decimal points or outdated formulas can cost your business thousands each time. Trust us, small mistakes like these add up.
 

Inconsistent pricing data or outdated catalogs

Throw in multiple spreadsheets into the mix, and this recipe for disaster gets more complex and elaborate. The story is the same if you are switching between several PDFs or emails with pricing data in them. Different versions of each are bound to result in customers receiving quotes with varying pricing, thus leading to potential sales loss or severely undercut deals.
 

Poorly managed approval chains

Approving quotes on chat might seem quick and easy, but it causes you to skip proper sign-offs. This, in turn, can make margin leaks and discounting errors slip through unnoticed. Needless to say, quotes without sign-offs are problematic and potentially profit-reducing.
 

Errors in customer-specific configurations

Your customers can come from different regions, order different quantities, and have specific requests. Manually entering details of each of these can lead to oversight. Consequently, such quotes can be non-compliant or invalid altogether.
 

You can get out of this mess provided you choose a custom quote system. It can dramatically reduce sales quote revision rates and errors. 
 

What Quote Errors Actually Cost Your Business

At this point, quote error rates might be coming across as glaring mistakes. If you think that way, you are on the right track because the true cost of quoting is not just an incorrect number. It extends far beyond and can adversely impact your business in more ways than one. Here’s the hidden toll of sales quote revision rates you need to be aware of:

Revenue leakage from underselling or overquoting

The problem with sales quote errors is that they often turn into a game. Make your reps quote too high, and expect clients to stall or disappear. Conversely, quote too low and you lose profits. The story’s different when you switch to quoting process automation. Backed by intelligent software, automated quotes strike the perfect balance and do not eat away at your company’s profits.

Time drain from manual revisions

Nothing screams ‘time wasted’ as revising the same quote again and again. Every single revision just further pushes back the sales cycle, resulting in frustrated customers who will not mind taking their business elsewhere. If multiple revisions are the norm in your office, loss of deals is inevitable. 
 

Lost trust with prospects

Over time, inaccurate quotes can hamper your credibility in the market. As buyers talk and wonder whether you will be able to deliver the services or products you offer, your reputation takes a hit, thus further hurting your business’s revenue stream.

Forecasting inaccuracies in the sales pipeline

Accurate quotes are the basis of accurate forecasting. If your quotes are often riddled with mistakes, your revenue forecasts are going to bear the brunt of it. Distorted predictions can lead stakeholders to make poor financial decisions based on half-baked data, thus hurting strategy and resource allocation.

Compliance and contractual risks in regulated industries

If your business operates in highly regulated industries such as healthcare, finance, or telecom, misquoted rates can lead to dire consequences. From compliance issues to penalties and legal disputes – that is no small price to pay for poor data.

Quoting process automation can help you eliminate manual quote errors. So if your business bogged down one too many mistakes, you need to start hunting for a vendor that can provide you with the quotation making software you need. 

How Custom Quote Systems Eliminate Manual Quote Errors

The reason why manual quoting fails is that it relies on human judgment, which can be flawed at times. That does not mean disconnected data and inconsistent workflows do not play a major role in this fiasco. They do. That’s why custom quote systems can feel like the only savior that can get your business out of this mess.

No less than an eleventh hour samaritan, relying on custom software is a surefire way to get accurate sales quotes each time. Here’s how.
 

Rule-based pricing and automated validation

Your organization is bound to have its own pricing rules, which include bundling restrictions, discount thresholds, and profit margin minimums. Using spreadsheets to track them all is a nightmare, while storing them in your brain to remember them later is bound to lead to oversight.

With custom quoting systems, you do not have to rely on either. Designed to have your business rules encoded into them, these systems are the perfect fix to issues such as invalid discounts, incompatible product bundles, or quotes that break margin rules.
 

Real-time access to updated pricing data

Most quoting errors can be attributed to outdated pricing. Static spreadsheets just cannot keep pace with the dynamic data your ERP and CRM systems churn out regularly, thus resulting in underpriced proposals.  

If you want to fix it, opting for a custom quote system that connects with other key software you use is a no-brainer. Capable of pulling the latest data from your ERP, CRM, and inventory management systems, custom software ensures every quote reflects the latest pricing, promotions, and stock levels. This speeds up your sales cycle instantly.
 

Guided configuration for complex products or services

Quoting is bound to be a complicated affair if you offer configurable products or service tiers. To simplify the process and prevent the creation of quotes with invalid combinations, you need a safeguard in place.

Custom quotation-making software can be that. Using guided selling and configuration logic, the system takes every single variable into account (including add-ons and/or service plans) to generate accurate, fully configured proposals each time.
 

Integrated approval flows with audit trails

Errors can often find their way into approval workflows. Taking the shape of either missed or informal approvals, both can lead to sending out quotes that are likely neither compliant nor fully vetted to be accurate.

Streamlining approval workflows is possible with custom software. It automates your entire approval chain based on business-specific pre-defined logics such as deal size, region, or discount percentages. In fact, every approval is stored in the system and can be traced back to its exact date and time, thus ensuring complete visibility and compliance.
 

Connected CRM & ERP systems to eliminate data entry errors

Manual data re-entry is one of the leading contributors to sales quote errors. Not only typos, but mismatches are also likely if your team has to copy customer details, pricing, and product information regularly. Instead of taking the human route, automating repetitive tasks with custom quotation software can help you eliminate these errors. Directly syncing with your ERP and CRM software, they can pull accurate data and automatically fill empty fields so your team doesn’t have to.

Custom quoting software benefits do not stop there. They are key to optimizing your entire sales process, from start to finish.
 

Checklist: Signs Your Team Is Losing To Quote Errors

The fact that quoting errors are hurting your team and your business is not always apparent. The only way to find out is to pay close attention to the signs we have listed below and see if your team is suffering through the same:

• Multiple quote revisions pre-approval to ensure they can be safely emailed to your clients
• Informal approvals via chat or other methods that are impossible to track
• Different versions of pricing sheets or product catalogs, leading to data inconsistency 
• Frequent sign-offs from legal or finance teams before quotes can be finalized
• Clients revealing proposal inconsistencies, thus leading to embarrassing and awkward explanations

It is not easy when your team has to go through any of the above. Experiencing even one of the issues is a sign that high quote error rates are a part of your process. If you want to shorten your sales cycle, grow your business, offer consistent pricing, and build customer trust, you know what to do.
 

How Vestra Inet’s Quote System Reduces Errors From Day One

Having helped countless clients overcome quoting bottlenecks and errors, we know that no two sales processes are alike. To ensure your business gets exactly what it needs, we steer clear of delivering cookie-cutter tools that quickly become prone to the same mistakes.

Instead, our custom quotation systems mirror the way your business actually sells without any of the inaccuracies, of course. From Day One, you get one-click branded quotes that are devoid of any mistakes and ready for approvals as well as your client’s inboxes. Here’s the approach we take:
 

Industry-specific rules and custom logic

From volume discounts to regional pricing and client-specific terms – we take every single detail that’s unique to your business into account before developing a reliable software for you. Once defined, each unique pricing rule is deeply embedded into the system we create to ensure consistent quotes across the board.

Admin control and role-based validation paths

You can say goodbye to inconsistent and informal approvals with our software. Designed to route every quote through role-based approval paths, our system creates an auditable trail while ensuring compliance for industries with rigorous requirements. They also align with your hierarchy and deal size, ensuring nothing of importance slips through the cracks.

Seamless integration with your existing systems

We do not design systems that work in isolation. Our custom quote system syncs with your CRM, ERP, and financial software in real-time, allowing you to view the latest data on a centralized platform. Having a single source of truth is critical to preventing data duplication and outdated information in sales quotes.
 

At Vestra Inet, we create custom quoting systems that not only remove manual dependencies but also eliminate all common errors, leaving you with accurate quotes that close deals – fast.

Final Thoughts – Accuracy Is Not A Luxury In Sales Quotes

Quite frankly, it is a must-have. It is wise not to treat quote error rates as background noise. Bringing them into the foreground and fixing them with custom quoting software can help you prevent issues such as revenue drain, time waste, and weakening customer trust.
 

In fact, with Vestra Inet’s system in particular, you get software that enforces company-specific rules, syncs data, and automates approval. Based in Vaughan, Ontario, and offering our services across North America, we’re here to partner with you and create a truly unique custom system. Contact us if your sales team is caught up in an endless revision cycle and needs a tailored solution to break out of it.
 

FAQs

What is quote error rate, and why does it matter?

Quote error rates are a measure of the frequency of errors in your sales quotes. Tracking them matters as high error rates reveal a pattern of costly revisions and delays, which can be prevented with the right software.

How do quoting errors impact revenue and customer trust?

With inaccurate quotes, you lose margins, lengthen the sales cycle, and hamper credibility in front of potential clients. Combined, these factors are bound to adversely impact your revenue stream.

What causes most quoting mistakes in B2B sales?

Plenty of contributing factors exist in this regard. Notable ones include outdated pricing, manual data entry, informal approvals, and complex configurations.

How can custom quote systems reduce errors?

By enforcing company-specific rules, centralizing key data, and automating approvals. Custom quoting systems also sync with your CRM and ERP systems to prevent data duplication and ensure only up-to-date information makes its way into your quotes.

When should a company move away from spreadsheets or CPQ tools?

If your company has complex pricing rules and compliance requirements that contribute to frequent quote revisions, it is time for you to switch to custom quotation software.