What is an RFQ (request for quotation)?

If you sell products to businesses, RFQs are how a good share of new and repeat work arrives. The buyer already knows what they want. They are asking you to name a price and a date.

Why an RFQ matters

An RFQ is a buying signal, but it is rarely an exclusive one. The same request is usually in your competitors' inboxes too. Speed, accuracy and a clear answer decide who gets the order. Our guide on how to respond to an RFQ covers the practice.

It also tells you something. A buyer who sends an RFQ has a spec, a quantity and a deadline in mind. That is a qualified opportunity, so it belongs in your pipeline and not in a forgotten inbox folder.

What an RFQ contains

• The products or specification, with grades, sizes or part numbers
• The quantity, and sometimes several quantity breaks
• The delivery location and the date required
• Payment terms the buyer expects
• The deadline for replying
• Any documents you must send, such as a data sheet or certificate

RFQ versus RFP versus RFI

These three get mixed up. An RFI (request for information) asks what a supplier can do, before the buyer knows what to buy. An RFP (request for proposal) describes a problem and asks suppliers to propose a solution and a price. An RFQ is the narrowest: the buyer knows exactly what they want and mainly needs the price.

How the RFQ process works

1. The buyer sends the RFQ to chosen suppliers.
2. Each supplier checks the spec, availability and cost, and may ask questions.
3. The supplier sends a quote before the deadline.
4. The buyer compares quotes and picks one, or negotiates.
5. The buyer sends a purchase order, and the supplier raises a sales order.

An example from product sales

A packaging buyer emails three suppliers asking for 50,000 corrugated boxes of one size, delivered in six weeks. Supplier A replies the same afternoon with a quote that states the unit price, the price at a higher quantity, the lead time and how long the offer stands. Supplier B replies three days later with a price only. The buyer asks A one follow-up question and orders from A.

Related terms

• Quote-to-order: the process that begins when you answer an RFQ.
• Purchase order: the buyer's confirmation after choosing a quote.
• Customer price list: the agreed prices to quote from.
• Sales pipeline: where an RFQ should show up as a deal.

How PromptLab handles it

PromptLab is not an RFQ portal, and it does not run buyer tenders. What it does is the seller's side: the RFQ arrives by email, WhatsApp or Telegram in the shared Inbox, and you build the quote on the deal with the customer's price list and the margin on each line. The quote, its status and the conversation stay together, and a workflow can create a task when the quote status changes. If the buyer accepts, you create the sales order with the quote's lines, on the same account.

Frequently asked questions

What does RFQ stand for?

RFQ stands for request for quotation, sometimes written request for quote. It is a buyer's request for a price on defined products.

Is an RFQ binding?

No. An RFQ is a request, not an order. Neither side is committed until the buyer accepts a quote or sends a purchase order.

What is the difference between an RFQ and a quote?

An RFQ comes from the buyer and asks for a price. A quote comes from the seller and answers it.

Should I always reply to an RFQ?

Not always. If you cannot meet the spec, the quantity or the date, a short polite decline is better than a slow, weak quote. Our RFQ response templates cover both cases.