SaaS Quote

What is a SaaS Quote?

A SaaS quote is a price estimate a software company delivers to a potential customer. It outlines the costs associated with licensing the software, any additional services (like customer support, customization, or integrations), and subscription terms (e.g., monthly or annual billing).

SaaS quoting is an essential process in the B2B SaaS sales process, where pricing is more complex due to the scale of deployment, specific needs of the customer, and customization of the software. SaaS pricing models vary wildly, ranging from fixed to usage-based or tiered pricing, and the quote helps the prospect understand the financial commitment required for using the service.

For SaaS vendors, the quoting process involves:

• Assessing the customer’s needs
• Selecting the appropriate service plan
• Adding line items and pricing/payment terms
• Factoring in changes in pricing service levels (e.g., for ramp deals)
• Sending the quote to the customer for review and approval

The quote is normally the starting point for further discussions and adjustments before finalizing a contract. When the customer accepts it, the vendor turns into an order, and the customer becomes a subscriber.

Synonyms

• SaaS price quote
• SaaS sales quote
• SaaS quotation

What Makes SaaS Quotes Unique?

SaaS quoting is quite different from other types of quoting because of the complexity. There are a few factors at play, here:

Recurring revenue

SaaS products require the subscription model — customers pay for ongoing access to the platform. Unlike those for one-off purchases of physical products, SaaS quotes need to account for how much and how often those payments will happen.

Changes in usage

For businesses with larger teams, a phased implementation approach is usually better. And, for seasonal businesses, usage needs will vary throughout the year. Those situations mean increasing or decreasing usage over time. SaaS quoting tools need to be able to handle ramp pricing, which shows how the price changes as usage scales up.

Customization

Enterprises often have specific requirements for SaaS solutions, which are unique to their operational processes. SaaS quoting software needs to be flexible enough to cater to those needs while keeping the pricing clear.

Multiple pricing models

Free trials, flat-rate subscription pricing, seat-based pricing, and usage-based pricing all come together to form the final price of a SaaS subscription. And that’s in addition to the tiered pricing options you probably offer. 

So, you need a system that accounts for multiple layers. Not just one that tells you the final price of a good or service.

Add-on services

Alongside the actual software cost, additional services like implementation, customer support, and training also might need to be included in a SaaS quote. You need to factor these services into the pricing on top of the software subscription price.

What to Include in a SaaS Quote

We’ve gone over what makes SaaS quotes different. Now, let’s dive into the “what?” of building one yourself — must-haves, and a few optional items you might want to include.

Company and customer information

The first thing you’ll need to include in your SaaS quote is the basic information about both companies.

Include the customer’s name, address, and contact information so there are no misunderstandings regarding who the quote is for, and how they can reach you.

Also include your company’s name and information for the same reason.

For example: 

• Company Name: Example Corp.
• Date: August 27, 2024
• Quote Number: EXAMPLE-2024-001

Line items

A line item is an itemized list of all the goods or services being offered in the quote, along with their prices.

In SaaS quotes, line items include:

• The software subscription itself
• Additional services and add-ons
• Customization or implementation fees
• Integration services
• User onboarding

Assuming you programmed these additional services into your quoting tool, generating line items should be easy. All you have to do is pick the one your customer needs from the menu. From there, it will automatically update the subtotal and total with the correct price.

Product/service description

On each line item, you’ll have a box to describe the product or service. Here, you don’t need to write a paragraph or anything — a few words will do.

Let’s say you’re quoting a prospect for a CRM software. Your description for the “CRM” line item would say something like:

“Full-featured CRM access”

Simple as that.

Pricing details

Next to each line item, display the price. If you’re using a quoting tool (which we recommend, more on that later) it should do this for you.

Since it’s a SaaS subscription we’re dealing with, there are a few more factors you’ll need to account for in your quote:

• Billing cadence (e.g., weekly, monthly, quarterly, or annually)
• Pricing tiers (e.g., “Pro” or “Enterprise”)
• Usage-based components (e.g., API calls or storage)
• Any discounts or offers you’ve applied
• Ramp up or down with changing usage

You’ll also want to include a subtotal and total so the customer knows what they’re paying.

Quantity

For user-based or seat-based components, you should include the number of users and how much they’ll cost in your quote. This will make it clear for the customer to see how many users they’ll need and what the total cost will be.

Suppose you’re a CRM vendor selling to an enterprise customer with 50 users. 

Here’s an example of what your summary of costs would look like, including descriptions, pricing details, and quantities:

Summary of costs

Item	Description	Quantity	Unit Price	Total Price
1. CRM Software Subscription
– Enterprise Plan	Full-featured CRM access	50 users	$100/user/mo	$5,000/mo
2. Marketing Automation Module
– Pro Module	Advanced marketing automation features	1	$2,000/mo	$2,000/mo
3. Add-on Microservices
– Analytics Dashboard	Real-time analytics and reporting	1	$500/mo	$500/month
– Social Media Integrations	Integration with major social media platforms	1	$300/mo	$300/mo
4. Implementation Costs
– System Setup and Configuration	Initial setup of CRM and marketing automation systems	One-time	$5,000	$5,000
– Data Migration	Transfer of existing data into new CRM system	One-time	$3,000	$3,000
5. Onboarding and Training
– Training Sessions	Onsite training for staff (5 sessions of 4 hours each)	20 hours	$150/hour	$3,000
– Online Support Materials	Access to training videos and documentation	Unlimited	Included	$0
6. Ongoing Maintenance and Support
– Premium Support Package	24/7 support with dedicated account manager	Monthly	$1,000/mo	$1,000/mo
– Software Updates	Regular system updates and feature enhancements	Included	Included	$0
Total Monthly Recurring Cost (Year 1)	Includes items 1, 2, 3, and 6			$8,800/mo
Total One-Time Costs	Includes items 4 and 5			$11,000

And here’s what the ramp pricing schedule might look like:

Ramp pricing schedule

Period	Monthly Recurring Cost	Notes
Months 1-6	$8,800	Introductory 10% discount applied
Months 7-12	$9,800	Standard rates apply
Year 2 (Months 13-24)	$9,800	Locked-in pricing for second year
Optional Year 3 Extension	$10,500	Subject to contract renewal and potential adjustments

Contract terms and conditions

In addition to the above, you’ll want to include the standard contract terms and conditions for the subscription. This should include:

• The duration of the subscription (e.g., one year)
• Termination clauses and fees
• Payment terms (e.g., net 30)
• Service level agreements (SLAs) and uptime guarantees
• Support response times
• Data security

These will go in a section beneath your line item table.

Notes

Notes are meant to give additional information that doesn’t fit elsewhere in the quote. Some common ones include:

• This quote is valid for 30 days from the date issued.
• Taxes are not included and will be applied where applicable.
• Custom integrations and additional services can be provided upon request and may incur additional costs.

Footer

The footer is where you’ll include your contact info and any other relevant company details. If you want, you can also include a CTA to get in touch with your sales team for any questions or concerns.

All together, it should look something like this:

“We appreciate the opportunity to work with Acme Corp and look forward to supporting your business growth with our comprehensive CRM and marketing automation solutions. If you have any questions or require adjustments to this quote, please do not hesitate to contact us.”

Contact Information

• Email: sales@yourcompany.com
• Phone: (123) 456-7890
• Address: 1234 Main Street, Suite 500, City, State, ZIP

Value proposition highlighting benefits (optional)

While not necessary, some companies like to include a value proposition section in their quotes. This is where you can highlight the unique benefits of your solution and why it’s better than the competition.

In this section, you can include customer testimonials, case studies, or any other evidence that supports your claims. This will help differentiate yourself from competitors and add more weight to your quote.

Customizations based on customer needs (optional)

If your solution allows for customizations or configurations, you may want to include a separate section outlining the “what if…” costs for those services. This will give customers an idea of how much they can customize their subscription and at what cost.

Visuals (optional)

Some companies prefer to use visuals like charts, graphs, or product screenshots in their quotes. If you think this will add value and make your quote more compelling, go ahead and include them. Just make sure they are relevant and support your message.

Best Practices for SaaS Quote Generation

When it comes to creating a winning SaaS quote, there are certain things you have to do and certain things you need to avoid.

Use a quoting tool.

First and foremost, quoting software is your best friend. Leveraging technology in the quote-to-revenue process leads to shorter sales cycles, higher conversion rates, and greater sales efficiency. It also improves the customer experience by making it easy to understand and interact with the quote.

CPQ (configure, price, quote) software is your best bet. You can program it with all your different product and pricing rules, and it does the product configuration, calculations, and modifications for you. It auto-generates the quote from the data you input, saving you loads of time.

And with an advanced SaaS quoting tool like DealHub, you can automate the SaaS quote-to-revenue process from end to end — CPQ, sales negotiations, contract management, and subscription management.

Use clear and concise language.

Avoid saying anything ambiguous or confusing. Use simple, straightforward language that anyone in your industry can understand. You don’t have to impress anyone with fancy terminology or jargon. In fact, it will probably lead to misunderstandings or hesitation from your customers.

Use visuals to make quotes more digestible.

Line items are fairly simple to understand. But complex pricing models, products, and services probably won’t be.

Use visuals like charts, graphs, and screenshots to make your quote more digestible and visually appealing, especially to members of the buying group who weren’t there when you discussed prcing.

Also, include your company logo on each quote. It’s a lot more professional-looking than a generic doc, and it helps with branding.

Tailor quotes to specific customer needs.

Within your software, you should be able to quickly customize quotes based on different customer needs. For example:

• Different pricing options
• Alternative product recommendations
• Additional services and features

This allows you to personalize the quote and adjust it on the fly during sales negotiations, showing your customers different scenarios and helping them pick the right package for their needs.

Track quote performance and metrics.

You can do this within your CPQ or quoting software. Look at metrics like:

• Quote delivery time
• Quote-to-cash cycle length
• Open and click-through rates
• Conversion rate from quote to close
• Average deal size

Analyze these metrics on a regular basis to see where you can improve your sales strategy, and whether your investment in a quoting tool is paying off.

Essential SaaS Quote Technology

Finally, let’s dive into the different technology you’ll need to build and deliver SaaS quotes. Each of these tools is essential to a modern sales workflow.

CPQ software

CPQ software is the center of everything. It controls every aspect of creating a quote, from adding products and services to configuring pricing rules.

With CPQ, you can create 100% accurate SaaS quotes in 7 minutes or less. When you’re ready to send the quote, the system can route it for approval or send it straight to the customer as a digital document to e-sign.

CRM integration

When you connect CPQ to your CRM, the two share data. That means your quoting tool can auto-populate quote with customer contact info from CRM. When you send the quote, it’ll automatically update that prospect’s status in the pipeline within your CRM. No manual effort needed.

Contract management tools

Contract management tools allow you to create and manage contracts, terms of service, and other legal documents. Your quote becomes a contract when your prospect accepts it, and you’ll negotiate the terms from there.

Within contract management software, you’ll have a contract repository. That’s where all your active and expired contracts live. You’ll be able to pull up any customer’s contract in an instant, view its history, and track its status.

Digital sales room

A digital sales room is a virtual space where you can collaborate with your prospect and other team members on the quote, answer any questions they might have, and negotiate terms. It’s an interactive experience that keeps everyone on the same page and eliminates confusion or misunderstandings. 

DealRoom is DealHub’s digital sales room tool, built into our quoting platform.

E-signature capabilities

Your customers shouldn’t have to print, sign, scan, and email back a contract. That’s just an outdated and inefficient process.

With e-signature capabilities, they can click a button to sign and send the quote or contract back immediately. It saves everyone time and effort, and it’s much more secure than traditional methods.

Subscription management software

Subscription management software has two components:

• The vendor-facing component handles subscription billing, revenue recognition, and other financial aspects.
• The customer-facing component allows customers to manage their subscription, view invoices, and update their payment info without going through a rep.

It’s impossible to handle recurring payments at scale, and that’s where subscription management comes into the fold.

Pro tip: DealHub’s Revenue Hub includes CPQ, digital sales room, contract management, and subscription management tools, making it the best end-to-end solution for SaaS companies.

Billing integration

If you don’t want to use the same tool for CPQ and subscription management, you’ll need to integrate your billing system.

When you integrate the two, orders go directly from the CPQ tool to your billing system. That saves time and eliminates errors that come from manual entry and data transfer.

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