Proposal Comparison

Part of Agency pricing and commercial models

Comparing a low headline quote with the complete scope

Test whether a low agency quote still saves money after essential missing work and other relevant costs are confirmed.

Rebuild a low headline quote by adding confirmed prices for essential excluded work and identifying client-supplied tasks. For a landing page, separate the agency fee from additions such as copy, then record implementation if your team must provide it. Compare the resulting total with the other offer on the same finish line.

Set one finish line

Define the result both offers must reach. For a landing page, that might mean an approved page built, checked and ready to use. One quote may cover design alone; another may include copy and implementation. Record the actual commitments before comparing totals.

For every essential task, mark whether it is included, priced separately, client-supplied or still unpriced. Name the client-supplied task and its owner, and check that the owner has capacity when the work is needed. Leave optional work out if the project does not need it.

Build the cost difference

Use the same period and GST treatment for both offers. Calculate: Comparable total = agency fee + confirmed prices for essential excluded work + relevant third-party charges not already included + defensible cost of client-supplied work, if valued consistently. Count each charge once.

For the landing-page example, write the low quote’s agency fee as Q. If copy is excluded, add its confirmed price, C, for the required standard; if implementation is client-supplied, record that task and its named owner. Add an implementation cost only when you have a defensible estimate and use the same method for both offers.

Keep the task, owner and capacity check beside the total. If you cannot defensibly price client work, show it separately rather than implying the cash total includes it. If an essential item remains unpriced and has no client owner, the low quote does not yet have a comparable total; do not fill the gap with a guessed market rate.

Check whether media, tools or licences are included, separately charged or unnecessary, and whether any amount is already in a quoted total. Keep GST treatment and payment timing consistent across the offers.

Rebuilt Total Cost Comparison: Low Headline Quote vs Complete Scope

Agency Fee (Low Quote)
Q
Confirmed Copy Cost (Excluded)
C
Implementation (Client-Supplied)
Named owner: [Client Team], Capacity confirmed by [Date]
Defensible Cost of Client-Supplied Work
Not applicable (no defensible estimate)
Third-Party Charges (e.g., tools, licences)
Included / Separately charged / Not required
GST Treatment
Consistent across both offers (GST included)
Comparable Total (Rebuilt)
Q + C + Implementation cost (if defensible)

Ask the question that could change the ranking

If the low quote excludes copy, ask for its confirmed cost to the required standard. If implementation is assigned to your team, confirm the named owner can do it by the needed date. If one offer includes two review rounds and the other is unclear, ask what each commits to deliver before adding any assumed revision fee.

Ask for a revised written quote if the answer changes the output or price. The business.gov.au page Prepare quotes says a written quote should include a clear description of the work, itemised and total costs, GST if applicable, variations and revisions, payment terms, and start and finish dates.

Compare the rebuilt total with the other offer’s total for the same finish line. The low quote remains cheaper on price only if its rebuilt total is lower; if the gap disappears, price alone no longer shows a saving. Consider the remaining price difference alongside the client work and delivery risk each offer leaves with your team, and resolve any essential unpriced item before deciding.

Pros and Cons of a Low Headline Quote with Unconfirmed Costs

  • ProsLower headline price may suggest savings; encourages transparency when rebuilt
  • ConsHidden costs from excluded essential work can inflate total; delivery risk increases if client-supplied tasks are unconfirmed or under-resourced

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