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Request for Quote Template
A Request for Quote is a document that invites vendors to bid prices for particular products or services, often used for products that are made in large numbers and are relatively cheap.
Alternate Names:
- RFQ;
- Request for Quotation.
What Is an RFQ?
An RFQ document outlines the various pricing possibilities for explicit goods or services. A business will often use RFQ's when they are aware of exactly what they need and do not need further details regarding the goods or services.
Just like any other Quote in Business, an RFQ contains the prices, payment conditions, and information about the product or service, if this is required. If a business knows exactly the type of goods or services they want, all information regarding the description of the products becomes meaningless. Here, the key factor is the price and often, this is the only thing that the requester will look at. The RFQ will often have a deadline for submitting quotes; therefore responding to an RFQ has to be as quick as possible to ensure that an opportunity to form a contract is not missed. As an RFQ response has to be quick; this gives the potential customer an opportunity to draw comparisons between the different RFQ's they have received and make a decision. Usually, the deciding factor in this case is the price.
An RFQ template can be downloaded by clicking the link below.
What Does it Mean to Request a Quote?
It means exactly what it says - a business contacts a supplier and requests that they send information regarding a certain service or goods that they are interested in. Usually, a request may include not only pricing information, but the payment conditions and potential length of a contract that the supplier will be willing to sign.
An RFQ is often written with great specificity to ensure that an accurate and reliable quote is received. You want to ensure that all the suppliers you have contacted are thinking about the exact same product or service for which they will be writing a quote for. The document will also have a deadline date and time for which any quotes need to be submitted. If further information is required, this can be requested after the deadline. This phase is just the beginning of the process as often other phases will follow after the initial bid.
What Is the Difference Between an RFP and an RFQ?
An RFQ simply requests a quote whereas an RFP requests a proposal. Although they may actually sound like they are asking for similar things, the main difference lies with their different functions. RFQ's are usually sent when a business already knows the specific goods or services that they require. The main thing they are looking for here is the difference in price. On the other hand, an RFP is a little more elaborate as it takes into account several other factors other than the price. A business will take into account all of these factors before making a final decision about forming a contract with a supplier.
How to Request for a Quotation by Email?
Requesting a Quotation via email is an extremely quick and efficient way to contact a large number of suppliers. The obvious benefit of this is that it saves you a lot of time and gives you the opportunity to weigh up your options to find the quote that best suits your business.
However, it is important to write this email correctly as the more specific your information is, the more likely you are to receive an accurate quote. It will prevent exchanging unnecessary messages which ultimately is a waste of time. Consider the following points when drafting your RFQ email:
- Be specific and clear . State clearly what you need along with the exact quantities. This will often require some thorough research but is crucial. Writing general comments will not help the supplier in any way. If you are unsure, it would be wise to consult with the specific individuals who will be taking part in the project to get concrete numbers.
- Once you have compiled the list, request additional information . Although the most important factor will be the price, you should also inquire about availability, delivery costs and delivery waiting times.
- Make it clear that you are awaiting a reply from the supplier . This will ensure that you get a reply and will give you more options to weigh up. It would be wise to include a deadline date and time for this request as it will ensure all the suppliers get back to you at the same time, giving you the option to study all the quotes carefully before selecting a winning candidate.
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Download Request for Quote Template
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