What does RFQ stand for? RFQ stands for “request for quote” or “request for quotation.” It’s a document a buyer sends to suppliers asking for prices on specific, clearly defined products or services. Because the buyer already knows exactly what it needs, an RFQ is mainly about comparing price, delivery time and terms.
What does RFQ mean at work?
An RFQ is used when there’s little doubt about what to buy, only who to buy it from and at what price. For example, a company needing 500 laptops of a set model, or 10,000 printed boxes in a set size, would send an RFQ.
A typical RFQ includes:
- Exact item descriptions, quantities and specifications
- Delivery location and required dates
- Payment terms and any warranty needs
- A quote format, so prices are easy to compare
- The response deadline and contact person
Suppliers reply with a quote showing unit prices, totals, lead times and how long the quote is valid. The buyer usually picks the best value, which isn’t always the lowest price.
Examples of RFQ in emails and messages
Procurement email: “Attached is our RFQ for 2,000 branded water bottles. Please send pricing and lead time by Friday.”
Slack: “We know the spec, so skip the RFP and send an RFQ to our three approved vendors.”
Supplier reply: “Thanks for the RFQ. Our quote is attached and valid for 30 days.”
Manager: “Vendor B wasn’t cheapest, but their RFQ response had the fastest delivery.”
RFQ vs RFP vs RFI
| RFI | RFP | RFQ | |
|---|---|---|---|
| Stands for | Request for information | Request for proposal | Request for quote |
| Goal | Learn what’s out there | Compare different solutions | Compare prices for a set item |
| How clear is the need? | Unclear | Problem clear, solution open | Very clear |
| Main decision factor | Fit and capability | Approach, quality and price | Price and terms |
Read more about RFPs and RFIs.
How to use an RFQ correctly
- Be precise. Vague specs lead to quotes you can’t compare.
- Send the same RFQ to every supplier. Fair, identical requests make the comparison honest.
- Provide a pricing template. Ask for unit price, total, shipping and taxes as separate lines.
- Ask how long quotes are valid. Prices can change quickly.
- Look beyond price. Check delivery, quality, support and payment terms.
- If you are responding, follow the format, meet the deadline and flag any assumptions.
When not to use an RFQ: if you need suppliers to suggest a solution or approach, use an RFP instead.
Related terms
Browse more short forms in our Workplace Acronyms hub.
FAQ
What does RFQ stand for?
RFQ stands for request for quote or request for quotation. It asks suppliers to price a clearly defined product or service.
What is the difference between an RFQ and an RFP?
An RFQ asks for prices on a known item. An RFP asks suppliers to propose how they would solve a problem, including their approach and price.
Is an RFQ binding?
Sending an RFQ does not commit the buyer to purchase. A supplier’s quote may be binding for its stated validity period, depending on its terms.
What should an RFQ include?
Item specifications, quantities, delivery dates and location, payment terms, a quote format and a response deadline.
How many suppliers should get an RFQ?
Many buyers ask at least three suppliers so they have enough quotes to compare, but company purchasing rules may set a specific number.
