RFQ (request for quotation)

An RFQ (request for quotation) is a buyer's request for priced offers on a clearly specified product or service, where the requirement is already fixed and vendors compete mainly on price and terms. Responses are short, structured, and easy to compare line by line.

Why it matters in B2B sales

An RFQ tells you the buying decision has already been made in every respect except who supplies it. The specification is written, the quantities are known, and the evaluation is largely arithmetic. For a vendor that means margin is the variable under discussion, and differentiation has to come from terms, lead time, or service rather than from the solution itself.

It also means the sales cycle is short. RFQ responses are often due in days rather than weeks, and the buyer is comparing quotes side by side. Slow or incomplete pricing is the main way vendors lose here, not weak positioning.

What an RFQ contains

An RFQ carries the specification, the quantities or volumes, the delivery or service window, the commercial terms the buyer expects, and a response format that is usually a fixed template or table. Many include payment terms and a validity period for the quote. Unlike an RFP there is little narrative, and unsolicited narrative is often ignored.

The response back is a price quote against that structure: unit pricing, totals, any assumptions or exclusions, and lead times. Exclusions matter more than sellers expect, because a quote that omits them becomes the baseline the buyer holds you to.

RFQ vs RFP

An RFP asks how you would solve a problem. An RFQ asks what you charge for a thing that has already been specified. The RFP is scored on approach, capability, and price together, while the RFQ is scored mainly on price against a compliance check.

Buyers sometimes issue an RFQ where an RFP would be more appropriate, usually because procurement wants a fast comparable process. When that happens the specification tends to be incomplete, and the winning vendor discovers the gap during delivery. Flagging assumptions clearly in the quote is the only protection, since there is no proposal section in which to raise them.

A concrete example

A logistics firm issues an RFQ for 400 ruggedized handheld scanners with a two-week delivery window and a three-year support term. Six suppliers respond within five days on the buyer's template. One quotes slightly higher per unit but includes a stated exclusion for on-site configuration and a shorter lead time. Procurement scores on landed cost and delivery date, and the shorter lead time wins the order.

How it shows up in a modern proposal workflow

RFQs are high-frequency and low-effort individually, which is exactly why they leak time. A team handling several a week is rebuilding the same quote structure repeatedly and chasing internal approvals on pricing that has barely changed. Cobl keeps the deal material in one workspace so a quote is produced from the account's existing terms and history rather than assembled from scratch each time.

A steady flow of RFQs from an account is also information worth acting on. It usually means someone else shaped the specification, and the way back into the earlier part of the cycle is the RFI, not the next quote.

Frequently asked questions

What does RFQ stand for?

RFQ stands for request for quotation, sometimes written as request for quote. It is a procurement document asking suppliers to price a defined requirement. In UK and EU public procurement the same step often appears inside a framework agreement as a mini-competition or call-off.

What is the difference between an RFQ and a quote?

The RFQ is the buyer's request. The sales quote is the supplier's answer to it. One is an invitation to price, the other is a priced offer, usually valid for a stated period and subject to the assumptions and exclusions listed in it.

How long is an RFQ response valid?

Whatever validity period you state, commonly 30 to 90 days. If you do not state one, the buyer may treat the price as open-ended, which is a problem when input costs move. Always include the validity period and the conditions under which pricing would change.

Can you win an RFQ without being the cheapest?

Yes, though the margin for it is narrow. Lead time, payment terms, support coverage, and total cost including installation or training are the usual levers. The condition is that the buyer's evaluation actually accounts for them, so read the scoring method before deciding to compete on anything other than price.