Request for Quote (RFQ) Templates
We all pay for things but buying large items or services from companies isn’t like going to a grocery store with set prices. You may want to know the cost in advance or need to comparison shop for the best deal around. In this case, you need to request a quote to understand how much a given business will charge you. That’s where a request for a quote template can come in handy. By asking for information in advance, you can better understand the overall cost and find out who offers the best deals on goods, labor, or services. Plus, you’ll be able to see what they charge for taxes and fees, any discounts, and get a look at the terms and conditions involved.
What Is a Request for Quote?
A request for a quote sometimes called an invitation for bid (IFB), is an intelligent way to plan ahead for services by inviting businesses to offer you bids for jobs you need to be completed. When you submit a request for a quote, you ask a company to show you what something will cost, when it’s due, exactly what you’re paying for, and what other conditions it comes with. This is a smart, savvy way to learn about pricing for significant expenses before you agree to pay. Requesting a quote can even help you get a better deal because you can see how different businesses that offer similar services charge. You can find the lowest price or determine who provides the most desirable packages without committing until you’re sure who you want to pay.
What Is a Request for Quote Template?
Asking for a quote the right way is vital. Our request for quote templates facilitates the process by giving you a simple form you can fill out and reuse whenever you need information from a business. Choosing a preformatted template saves you time because you don’t need to work from scratch to create your new request form whenever you ask. Additionally, professionals create all our templates so you never leave out important information. Businesses can quickly and easily see who is asking for a quote and what information they require to get back to you promptly with the information you need.
Request for Quote Template
Below is a simple breakdown of how an RFQ template is designed. You’ll see all the necessary fields and how to fill them out to create a great request for a quote. Include everything you need by adding more columns to the price breakdown chart.
Request For Quote
Company Information
| Business Name | Your Business |
| Business Address | Your Address |
| Contact Name | Manager or another contact person |
| Phone Number | (xxx) XXX-XXXX |
| Email Address | Name@website.com |
| Date Issued | ___/___/_____ |
| Response Deadline | ___/___/_____ |
Project Details
| Product or Service Needed | A detailed description of precisely what you need provided goes in this space—for example, one birthday party with 50 guests. |
| Timeline for Project | Put the date you need a finished product delivered (like a birthday) or a timeframe for an ongoing job (like yard maintenance). |
| Submission Information | Tell businesses exactly how to contact you with the completed quote. |
Price Breakdown
| Item | Description | QTY | Price | |
| Materials 1 | Ex: Party Decor | # if applicable | $ | |
| Materials 2 | Ex: Balloons | # if applicable | $ | |
| Complete Items 1 | Ex: Meal for 50 | # if applicable | $ | |
| Complete Items 2 | Ex: Drinks for 50 | # if applicable | $ | |
| Labor Cost 1 | Ex: Decorators | # if applicable | $ | |
| Labor Cost 2 | Ex: Servers | # if applicable | $ | |
| Total Cost | $ | |||
Request For Quote Tips
Here are a few more things to keep in mind when submitting this type of request:
- You may need to pay taxes or fees on top of the materials and labor costs.
- Always have a lawyer look over your contracts before sending them out.
- Read everything carefully when comparing quotes. Just because two offers look similar initially doesn’t mean you’ll get the same thing.
- Service providers are not minded readers. If you don’t ask for something, you won’t get it.
- Be flexible about package deals; you may get more than you bargained for.
- Some businesses cannot guarantee a delivery date because they are affected by the weather. Contractors doing outdoor jobs like roofing are an excellent example of this.
- If you’re looking for proposals, send an RFP (Request for Proposal) instead of an RFQ.
- Experience and reliability are worth their weight in gold. There is a difference between a good deal and a cheap deal.
How Does a Request for Quote Work?
Once you are ready to look at the cost of a job so you can hire the right company to complete it, you will use a request for a quote. You can issue this to as many businesses as you like. More bidders often mean better competition and pricing for you, but it also means you’ll spend more time vetting the respondents. There are only a few simple steps to understanding how an RFQ works.
- Set Your Budget and Requirements- Before making an RFQ, you need to collect data on what you’re looking for and what you can reasonably afford to pay for it. Getting all the details possible and including everything you need is vital. If you miss something, the company you hire won’t include it in the quote. Fortunately, making additions and revising the final request is usually possible after choosing a provider. Remember that you will have to pay more for additional services, so you must budget for add-ons if you ask for them.
- Create the RFQ: First, you need to prepare the form. A premade template will make this step much faster because it already has everything you need to inquire about parts, labor, services, features, timelines, quantity, and payment terms.
- Send It Out: Next, you get your RFQ into the hands of businesses you (may) want to work with. Mail, email, hand deliver or hire a courier to accomplish this quickly.
- Take Replies: Soon, you’ll have the responses, and it’s time to compare shops. Look for a combination of goods and services you need and reasonable pricing, but keep in mind that you are also paying for experience, reliability, and quality. Don’t forget to vet the respondents. Ensure that the company you want to work with can and will do the job.
- Award a Contract: Once you’ve determined which bidder to go with, come to terms and sign an agreement.
- File and Inform: Keep copies of all the exchanges associated with this process and file them away. Then pass the necessary information on to anyone who needs to know. If you are an individual, you may not need to tell anyone anything. For businesses, this step may involve talking to your accountants to get suppliers paid, moving people around so work can go on, or other necessary notifications depending on what you’ve contracted out for and how many people it affects.
Request for Quote Vs. Request for Proposal
There is a significant and helpful difference between a request for a quote (RFQ) and a request for a proposal (RFP). If you know what you need, such as when hiring a contractor to put in six skylights, you need to use an RFQ. Doing this will get the information about costs associated with a specific, mostly predetermined job. However, if you know what sort of thing you want to do but have no set in stone plans, then you would submit an RFP. The RFP tells businesses you are looking to entertain their ideas for how to do a job rather than asking them to bid for a job you specify.
FAQs
Now that you understand when, why, and how to use a request for a quote, you can quickly and efficiently use our downloadable template, but you may still have questions. Here are the top three most frequently asked questions about requests for quotes.
Being professional and concise is critical to business operations. If you need bids and quotes from companies, then using a request for a quote is the easiest way to convey that information. Sending an RFQ on a pro-template will save you time and tell companies what you’re interested in.
Asking for a quote in an email is just like asking for one via traditional methods. All you need to do is download and fill out our template and then copy it to an email message to send. You can ask for one quote or dozens in a matter of minutes.
In trading, a request for a quote is a simple inquiry about an instrument or strategy, which can even be submitted when there is no market or as a multilegged spread if the inquirer wishes to do so. You can submit a request for a quote anonymously and do not need to indicate whether you are inclined to buy or sell.
Final Thoughts
Anyone can submit a request for a quote. Doing so can help you get the best value for your dollar and show you where your money is being spent to provide what you need. Especially when you’re looking at more significant expenses or those that involve labor rates and variable hours, you should ask for a quote. Comparing services and seeing the terms and conditions before you sign a contract are two of the most significant benefits. Choosing the best packages, most reliable established and professional providers, and knowing exactly what you’re paying for can help ease your mind and facilitate excellent business relationships.