RFQ stands for Request for Quotation: a document a buyer issues to ask suppliers for exact pricing on clearly specified goods or services.
For a small business, an RFQ is an invitation to price a defined requirement. The buyer wants comparable quotations, so your response should make clear what you will supply, what it costs and which conditions apply. Begin with the specifications and pricing form rather than a general sales pitch.
For related purchasing and planning terms, visit the Business Finance Glossary.
RFQ vs RFP vs RFI
These requests serve different purchasing needs. The table uses the same distinctions as our RFP meaning guide. Read the actual solicitation because a buyer's terminology and rules can vary.
| Request | Main purpose | What suppliers provide |
|---|---|---|
| RFQ: Request for Quotation | Compare prices for specified goods or services. | A price quotation against the specifications, plus required terms and compliance information. |
| RFP: Request for Proposal | Compare full solutions to a defined need. | A proposal covering approach, capability, delivery and price against stated criteria. |
| RFI: Request for Information | Gather information before deciding what or how to buy. | Information about available options, supplier capabilities and possible approaches. |
An RFQ is primarily price-focused once the requirement is specified. An RFP asks you to explain the solution as well as its cost. An RFI helps the buyer explore the market and is not itself a promise of a contract. None of these labels replaces the document's instructions.
When a buyer uses an RFQ
A buyer uses an RFQ when the specification is fixed and price is the deciding variable among suppliers that meet the stated requirements. Defining the purchase first helps the buyer compare equivalent offers. Delivery, qualifications and compliance can still matter; the lowest headline price does not automatically determine the outcome.
- Equipment: a buyer specifies capacity, dimensions, required accessories and installation conditions, then requests prices for equipment meeting those requirements.
- Print runs: a buyer supplies artwork requirements, paper stock, finished size, colour, quantity and delivery location so printers can quote the same job.
- Supply contracts: a buyer defines consumable products, order quantities or estimates, delivery arrangements and the contract period, then requests a comparable pricing schedule.
These are generic examples, not actual procurements. If the buyer needs suppliers to design the approach, resolve an uncertain scope or compare different solutions, an RFP may fit better. If it is still learning what the market offers, it may begin with an RFI.
What an RFQ contains
Check the full package, including attachments and addenda. Common fields include:
- Specifications: product descriptions, drawings, service tasks, quality requirements and any rules for equivalent products.
- Quantities: units, pack sizes, order volumes and whether quantities are firm commitments or estimates.
- Delivery terms: destination, schedule, freight responsibility, installation, acceptance requirements and any relevant import arrangements.
- Deadline: closing date, time and time zone, question process, submission channel and required attachments.
- Pricing format: currency, unit prices, extended totals, taxes, freight, optional items and any requested discounts.
- Commercial conditions: payment terms, quote validity, warranty, evaluation method and proposed contract conditions.
Do not fill gaps silently. Ask for clarification through the designated contact or process. Keep the current documents together so an amended quantity or delivery requirement reaches whoever prepares the price.
How a small business responds to an RFQ
Quote exactly what is specified
Match each line item to the requested description, unit and quantity. Confirm that your supplier costs, stock availability and delivery capacity support the offer. Use the buyer's form and numbering. Offer substitutes or alternatives only where permitted, and identify them clearly rather than presenting them as compliant without explanation.
State assumptions and exclusions
Explain any permitted assumptions that affect price, such as site access, artwork readiness or responsibility for unloading. List exclusions where the format allows. If an exclusion conflicts with a mandatory requirement, it may make your response unacceptable; seek clarification before submitting. Avoid burying qualifications in an unrelated attachment.
Show the complete cost
Reconcile unit prices, quantities and extended totals. Separate applicable taxes and identify the currency. Where relevant, show total landed cost: the cost of getting the goods to the required destination, including applicable freight, insurance, duties, brokerage or handling. Identify which charges are included, excluded or estimated, and follow the buyer's requested basis for comparison.
For services, make the equivalent boundaries clear: travel, materials, installation, ongoing support and optional work can affect the final amount. Do not leave a required pricing cell blank without explaining it in the permitted way. Confirm that the quote covers your actual delivery commitments.
Confirm validity and supporting information
State the quote's validity period and check it against any required acceptance period. Use the RFQ's terms rather than assuming a standard number of days. Identify delivery timing and any permitted conditions affecting availability. Include signatures, compliance documents and supplier information requested by the buyer.
If a company introduction is required, our company overview guide can help you organise accurate business and capability information. For the operational and financial planning behind your capacity to deliver, explore our business plan writing services.
Before submission, have someone check the specifications, arithmetic, addenda and attachments against the instructions. Submit through the stated channel and retain the final quote and any confirmation provided.
Frequently asked questions
What does RFQ stand for?
RFQ stands for Request for Quotation. It asks suppliers for exact pricing on clearly specified goods or services, together with any required terms and compliance information.
RFQ vs tender?
The terms can overlap. Tender can describe a competitive purchasing process or a supplier's bid; an RFQ is a particular request for quotations. Read the solicitation and contract terms because the label alone does not establish the rules.
Is an RFQ response binding?
Terms vary. Read the RFQ's own terms and your response, including acceptance, withdrawal and validity provisions. Do not assume a quotation is always binding or always non-binding. This is general information, not legal advice; obtain legal advice where obligations are unclear.
RFQ or RFP — which will I receive?
You may receive an RFQ when the buyer has fixed the specifications and wants comparable prices. You may receive an RFP when it needs to assess your approach, capabilities and solution alongside price. Follow the actual requirements rather than relying on the title.