RFQ – Request for Quotation

Request for QuotationRFQ – Request for Quotation

Is an RFQ – Request for Quotation any different from an ITT – Invitation to Tender?

Well, yes it is. At least the inference is different. In response to an ITT you will probably be expected to provide supporting information, and your bid will be measured on quality aspects as well as price. In response to an RFQ you will probably just be required to provide a price for a bid that is fully compliant with the requirements of the specification. You will also probably be required to accept the Terms and Conditions of the procurer.

Does this mean that there is no opportunity to make a pitch? Not necessarily. Usually with an RFQ there will be the opportunity to submit a covering letter, or email. Maybe even some supporting information. The chances are that, whereas, on the face of it, the procurer is just looking to compare prices, in reality they will be considering best value.

It is definitely worth with an RFQ – Request for Quotation, taking into account any mandated response requirements, outlining the value that comes with your offer. At the very least, your bid will show up in a good light when compared with bids at a similar level. It will also be an opportunity to showcase your professionalism.

There is always a balance to be struck, of course, between pitching your product, and irritating the buyer by overdoing the “sell”. The less “salesy”, therefore, the better. A good tip is to make sure that what you do submit is relevant. If what might be seen as marketing material is actually perceived as relevant technical information that is good.

An RFQ – Request for Quotation, may occur at an early stage in the buying process. The buyer may be assessing the market prior to engaging with potential suppliers. Alternatively it may come later on, after the buyer has assessed potential suppliers. If this is the case it could mean that things are becoming seriously competitive. Either way it is essential to demonstrate competitive edge.

If you would like to know more about this process contact us.