How to Write an RFQ (Template)

A Request for Quotation (RFQ) is the most efficient way to get competitive pricing when you know exactly what you want. Unlike RFPs that evaluate solutions, RFQs focus on price comparison for defined specifications.

But a poorly written RFQ invites problems—inconsistent quotes, hidden fees, and apples-to-oranges comparison confusion.

This comprehensive guide shows you how to write RFQs that generate accurate, comparable pricing.

What Is an RFQ?

An RFQ is a formal request for pricing from qualified vendors for specific goods or services.

RFQ vs. RFP vs. RFI

Understanding when to use each:

For more on document types, see our RFI vs RFQ vs RFP Guide.

When to Use an RFQ

RFQ is appropriate when:

Pro Tip: If you're still exploring options or need vendor guidance, use RFI or RFP first.

Benefits of a Well-Written RFQ

RFQ Preparation Phase

Before writing the document, foundational work ensures success.

1. Internal Needs Assessment

Don't guess at requirements—verify them:

• End Users: What specifically do they need? What are the "must-haves" vs. "nice-to-haves"?
• Technical Team: Are there specific brands, materials, or compatibility requirements?
• Logistics: What are the receiving constraints (dock height, hours, forklift availability)?
• Finance: What is the budget? Are there capital vs. expense considerations?

2. Vendor Pre-Qualification

Ideally, send RFQs only to vendors you would be willing to buy from.

Pre-qualification criteria:

• Financial stability
• Quality certifications (ISO, etc.)
• Geographic coverage
• Past performance/references
• Capacity to deliver your volume

Sending to unqualified vendors wastes their time and yours.

3. Market Pricing Research

Have a baseline before you start:

• What is the rough market price?
• Are commodity prices (steel, oil, chips) currently volatile?
• Is there a supply shortage?

This context helps you evaluate the quotes you eventually receive.

RFQ Structure

Essential Components

Every RFQ should include:

Detailed Specifications

The heart of the RFQ—be precise:

Specification Best Practices

Quantity Requirements

Volume considerations:

• Initial order quantity
• Annual estimated volume
• Minimum order quantities acceptable
• Order frequency
• Volume discount tiers if applicable

Delivery Requirements

Pricing Format

Standardize how vendors quote:

Critical: Require all costs be listed. Ask vendors to explicitly confirm "no additional fees beyond those listed."

Terms and Conditions

Submission Requirements

RFQ Communication Protocol

How you manage communication during the open RFQ period affects the quality of responses and fairness of the process.

Managing Vendor Questions

Vendors will (and should) have questions.

Best practices for Q&A:

• Single Point of Contact: Designate one person to handle all communication to prevent mixed messages.
• Written Only: Require questions in writing to maintain a trail.
• Shared Answers: If a vendor asks a clarifying question that changes the scope, share that answer with ALL vendors. This ensures a level playing field.
• Deadlines: Enforce the "questions due by" date so you aren't fielding inquiries an hour before the submission deadline.

Amendments and Addenda

If you discover a mistake in your specs or need to change a requirement:

1. Issue a formal "Addendum" document
2. Send it to all invited vendors simultaneously
3. If minimal time remains, extend the submission deadline to allow them to adjust their quotes

Case Study: The Cost of Ambiguity

Best Practices

Be Specific

Ambiguity creates comparison problems:

Require Standard Format

When vendors quote differently, comparison is difficult:

Include Volume Scenarios

If volume might vary, request tier pricing:

Common RFQ Mistakes

Being Too Vague

Omitting Cost Categories

Insufficient Timeline

Evaluating RFQ Responses

Compliance Check

First, verify responses meet requirements:

Price Comparison

Post-RFQ Negotiation

The RFQ gives you the data, but the process isn't over.

1. Verification: Confirm the lowest bidder hasn't missed something. "Your quote is significantly lower than others—can you confirm your understanding of [Key Spec X]?"
2. Leverage: If your preferred vendor is slightly more expensive, you now have hard data. "We prefer to work with you, but we have a qualified bid at X. Can you meet us halfway?"
3. Final Terms: Lock in pricing agreements for a set period (e.g., "Pricing valid for 12 months") to prevent price creep after the initial order.

Frequently Asked Questions

How many vendors should we send an RFQ to?

Minimum 3 for competitive tension. 5-10 for significant purchases gives good market coverage without overwhelming analysis.

What if vendors quote differently despite format requirements?

Follow up for clarification. If vendor can't or won't conform, decide whether to normalize yourself or exclude from consideration.

How long should we give vendors to respond?

• Routine RFQs: 1-2 weeks
• Complex specifications: 2-4 weeks
• Custom/engineered items: 4-6 weeks

Consider vendor effort required.

Should we share other vendors' pricing during negotiation?

Not specific prices—that can lead to bid rigging claims. You can indicate "your pricing is not competitive" or "we have lower offers" without specifics.

Can we negotiate after receiving RFQ responses?

Yes—RFQ responses are typically starting points. Negotiate terms, volume commitments, and pricing with preferred vendor(s).

Do I use an RFQ for services or just products?

You can use RFQs for services if they are highly standardized (e.g., "Mowing 5 acres of lawn, weekly"). However, complex services (e.g., "Strategy consulting") usually require an RFP because the method varies by vendor.

Write RFQs That Work

A well-written RFQ generates the competitive, comparable pricing you need for confident purchasing decisions. Invest time in clear specifications and standard formats—it pays back in better vendor responses and easier evaluation.

Download RFQ Template → | RFI vs RFQ vs RFP Guide →