Definition
A Request for Quotation (RFQ) is a procurement document used by buyers to solicit detailed pricing and commercial terms for a clearly defined product or service.
Unlike RFPs, which evaluate technical fit and partnership potential, RFQs are largely transactional. The assumption is: the scope is fixed, the only question is price.
You’ll typically encounter RFQs when:
- The product or service is standardized (e.g., licenses, hardware, headcount-based services)
- The buyer has already finalized requirements and technical criteria
- Procurement is comparing vendors purely on pricing, SLAs, or delivery timelines
- The RFQ is part of a multi-step process (e.g., after RFI or RFP shortlisting)
What an RFQ usually includes
Most RFQs are structured for easy comparison across vendors.
If you’re responding, be thorough. However, it is important to remember that you must not stop at just the numbers.
How to stand out in a price-driven process
Even if price is the dominant decision factor, vendors can still differentiate through:
- Support tiers (e.g., 24-hour response, onboarding help, localization support)
- Implementation timelines (especially if early rollout is valuable to the buyer)
- Volume-based discounts or flexible scaling options
- Commercial flexibility (e.g., annual prepay vs. quarterly billing options)
- Post-sales services or training add-ons included or optional
Buyers often use the lowest quote as leverage but choose vendors based on value and risk mitigation. Use your response to demonstrate both.
Internal questions to ask before responding
- Are we responding only to hit a quota, or does this buyer fit our ICP?
- Is the scope commoditized, or are there hidden areas where we can add value?
- Will the price be used as leverage in an RFP we’re unlikely to win?
- Can we offer alternate pricing or bundling that reframes the buyer’s evaluation?
