50+ Sample Request for Quote Templates

What Is a Request For Quote (RFQ)?

Imagine starting your own business. For example, an internet cafe. You will need a place, several computers, accessories, furniture, and software. It’s easy to find a location by hiring a real estate agent to look one for you. However, to acquire several computers, computer accessories, and even furniture, you will need a supplier. You can’t just choose the first one you find. You need to explore possible choices. Once you have compiled a list of potential sellers, you can send them a price inquiry. This process is called requesting a quote. A quote (price quote) is a formal business document where a vendor states the fixed price of the product or service you are inquiring about. You can easily compare prices from different sellers by using the filled-out form. Using the form as a reference helps you stay within budget. 

Process When Requesting For a Quote

Purchasing supplies takes a huge part in business management. You can either be hands-on and take charge of the procurement process in your business or hire a purchasing manager instead. According to the United States Bureau of Labor, some businessmen prefer to leave the buy and sell transactions to purchasing managers. They are primarily in charge of finding suppliers and buying materials for use in business operations. Likewise, they will take charge of requesting quotations and bids from different certified vendors. There are different phases when transacting with a seller and requesting a quote. We can break it down into four phases: invitation or proposal, request a price quote, prequalification, and selection

  1. Invitation (or proposal)

    The first thing you need to do when purchasing supplies is to send an invitation to bid to different sellers from your vendor list. The invitation (or proposal) should contain a brief description of your business and a project description. A supplier will send their response, whether they participate or not.

  2. Request for a price quote

    To those suppliers willing to take part in the bidding process, you may send them a request price quote. The price quote form should enumerate the items or materials you want to purchase, as well as the corresponding quantity of each item. It is important to be specific when describing the items to avoid confusion.

  3. Prequalification 

    Make sure all vendors have sent in their quotations. You can compare their entries and prices. Segregate the ones that appeal to you and discharge those that you do not like. Doing it this way will make it easier for you to choose which supplier to purchase your material from. A good tip is to request a sample material, so you have an idea of its quality.

  4. Selection

    Choose a supplier. Once you have narrowed down your choices, it’s easy to pick one. You don’t necessarily have to choose the cheapest supplier. Weigh down the quality of the material with the offered price.

request-for-quote-format

How to Write a Request For Quote Form

Part of starting a retail business is gathering the goods or equipment that you will be selling and using. In order to make a profit, you will have to scout for a supplier offering the best deals. It will be a tedious process that will require you to write numerous quotation letters to different wholesalers until you find one that’s offering a reasonable price for quality products. Below are some helpful tips to help guide you in writing a request quote

Step 1: Write an introduction

As a way of courtesy, introduce yourself and your business. Making yourself known is the first step before entering into a business transaction. In addition, proper introductions and providing a brief business background will help convince the reader that you are serious about the inquiry. If you are known in your field of business, a supplier can easily identify you and give a prompt reply to your request.

Step 2: List down the products or services

Provide a clear description of the products or services you are inquiring about. For products, determine the quantity you need; and for services, determine the duration you will be needing it. The more specific, the better. If possible, indicate the manufacturing or the serial number of the product, its brand name or model number for pieces of equipment, etc. You can check the supplier’s product or service catalog to make it easier to create your list.

Step 3: Provide a pricing table

Including a pricing table in your request for quote form is essential. It makes it easier for a supplier to respond. All he has to do is fill-out the blank portions of the table with the estimated costs for each item indicated therein. Not to mention, it will make the price comparison process effortless for you. Do not forget to write the following column headers: item name, product description, quantity, and cost. Provide and fill-out the rows for the first three columns and leave the costs blank for the supplier.

Step 4: State the submission guidelines

It is crucial to include guidelines on the submission of a reply. You do not want to waste your time going through a quotation of every item a supplier has in his catalog. Enclosing a guideline in your letter will help the supplier write a relevant response to you. You can include requiring him to attach a certification of his business such as his business permit or any written evidence of experience that will ease you to enter into a transaction with him.

Step 5: Indicate the urgency of the request

Let him know if there is a deadline for the submission of the response. Responding to a request for a quote can take a few hours to a few weeks depending on the workload of the supplier or his personnel. Make sure you give him a reasonable amount of time to reply. What is considered reasonable depends on the circumstances. If you are requesting a quote for hundreds of different varieties of computer parts and equipment, give him at least a week to a month to get back to you.

Step 6: Place your contact information

Provide a phone number or email address he can reach you. Typically, a supplier will send his reply to the original email you sent. Other times, he will directly call you and provide the cost estimate verbally. To avoid any inconvenience, it is best to include a time when he can reach you through phone or you may specifically instruct him to email the quotation.

FAQs

What is a quote in business transactions?

The first thing that comes to mind when we speak of a quote is it’s a passage from a book. However, in business transactions, it has a different meaning. Businessmen often use the word to refer to the lump price of a product or service from different suppliers. During the procurement process, a buyer will contact several suppliers and inquire into the costs of their products or services; this is called asking for a quotation. The response of the supplier indicating the estimated price of the product or service is called a quote.

How do you respond to a request for quote?

There are a few ways to respond to a request for a quote. You can either call the requesting person, text, or email him the price estimate of the goods or services you are providing. For a more formal approach, you can provide them a document containing the following information: your basic business profile (business name, address, and contact details), the quote on the project or materials, your payment terms and method, and a deadline for when the price estimate is valid.

How do you politely follow up on a request for quote?

If you are in a hurry to get a response from a seller, you may do a follow-up call, email, or text. It is best to be direct in order to get a response. Also, do not forget to give clear instructions on how to contact you. Consider formally introducing yourself, then ask the status of your request. For example, “Hello/Good day/Greetings, this is ‘your name’ from ‘your company’. I am calling/emailing to ask the status of my request for a quote. If you are unable to talk right now, we can schedule a talk between 10:00-3:00 PM tomorrow. You can reach me through my office number “provide contact details”.

How should I send my request for quote?

It depends. There is no strict rule on how to send a quote request. If you are nearing a deadline, the best option for you is to call the supplier and directly ask them for a quotation. You can further request a copy of the form which they can either fax or email to you. When asking for a quotation, be clear on what specific information to ask the seller. Provide a list of the products or services you are asking for a price estimate of.

If you are looking to buy products or contract services for your business, writing a quotation request is inevitable. You will have to deal with and contact different vendors to participate in giving you a cost estimate of the products or services you wish to avail from them. To help make your life easier, you can use our Request for Quote Templates (& Forms) above. All you have to do is download the file, fill it out, print, or email it to your suppliers.