How To Make a Request for Quote // Step-By-Step Guide
The RFQ will be the first thing that a supplier reads from you. A good RFQ must introduce your product and yourself so that a supplier will want to do business with you. Therefore, a good RFQ should be simple and easy to read while covering all essential details.
What is an RFQ?
How is a Request for Quote different from a Spec Sheet? There isn’t much difference for some projects. However, other projects can be drastically different. Why? It depends on the project's complexity. If you are sourcing a simple item, you can use your full specification sheet in the RFQ. However, if the project is more complex, you may want to create a simplified product specification sheet to attach to the RFQ.
An RFQ consists of two parts: the initial message or email to the factory and a product specification sheet. Some people introduce the full product spec sheet in the first part, which is fine for most projects, while others simplify it by introducing the product and showing the entire spec sheet closer to production.
We’ll cover how to communicate with suppliers later, but for now, we’ll use this section to craft a compelling introduction to you and your product. Check out our guide on how to communicate with suppliers and the best questions to ask them here!
Remember: The Supplier will quote only on the information you have provided
Remember that when you ask a supplier to make a quote, they will only use the information you provided about your product. In the previous section or blog post, you created a well-defined spec sheet. This is the time to start sharing it. When the supplier receives the product specification sheet, they will assign a project manager or an engineer to review it line by line and calculate the cost.
You also need to ensure you can easily share the product spec sheet. Your contact with the factory will take the product spec sheet and share it with all appropriate departments and staff. What won’t be shared are the emails you sent them about the product, including your questions. If you requested a change in an email, it won't be included unless you update the product spec sheet.
How to create an RFQ
The RFQ needs to accomplish two things: first, it must fully and quickly introduce your product, and second, it must solicit a quote from the supplier.
When messaging a supplier, you must ask them to provide a quote based on the product details you have provided. The main information that every RFQ needs to ask from a supplier is
Cost,
Minimum Order Quantity (MOQ),
Price per unit,
start-up cost,
Shipping Terms
and a few more details depending on your product.
For many projects, you may also find it helpful to include this. Additional factors that you need
Bill of Materials,
Machinery used (some projects require very specific machinery)
Closest port
The price difference with or without customization or feature
Remember that you are letting manufacturers know what you are making and inviting them to make a quote on your product. Some people like to email-blast a dozen or more potential suppliers quickly, but I try to send each email individually. I follow a template and create a new one for each project, adding a few customizations. I have included an example of one below.
Here’s an RFQ template
Subject(s): "I'm interested in [Product Name]” or “RFQ for [Product Name].”
Hello [Potential supplier] (Note: use their given name if you have it),
I’m (your name), the procurement manager for [company name], and I’m interested in receiving a quote for [product name]
[Write a few short sentences about your product.]
Create a bulleted list containing materials, colors, and other basic attributes in a new block. Keep it short and simple.
If you manufacture [product name], please email me more information to [your email]
In your response, include:
Pictures of the product and a photo of [product detail] (note: the detail can be anything; make sure it forces them to use pictures taken for you and not found elsewhere
The Minimum Order Quantity
The price at the MOQ and [some other amount] (Note: I find that getting two prices for different quantities lets you know their flexibility on a price and helps in negotiations later on)
[the price to make any changes or customization that you want] (be specific on this part, but you can skip it if you want a product as-is)
What is the shipping cost of sending a sample?
The Closest port (note the port should be close to where they claim they are located if you’re dealing with a factory; if it’s too far, be cautious)
Thanks. We look forward to hearing back from you!
[your name]
Procurement manager
[Company name]
Keep it personal
Please note that the salesperson answering these emails will see the same email templates, so take the time to personalize them and make them your own. This will help it stand out from the crowd. If you have the factory’s name or, even better, the name of the main salesperson or CEO, use it. Emails that start with “To Whom It May Concern” or any other impersonal salutation will almost always be ignored. If you can, add an extra sentence
Another thing to note is that English is almost certainly not the person's first language. So, be sure to use clear, simple language and convey your point effectively.
Where to post an RFQ
Now that you have your message and product spec sheet, the next step is to determine where to send it and to find suppliers. Alibaba is the most commonly used tool, but there are several alternatives available, which you can explore here.
Alibaba's “Request for Quote” feature
Most sourcing websites, such as Alibaba and Global Sources, have a Request for Quote option for members. Alibaba’s RFQ tool allows users to submit an RFQ, which typically includes a form to complete (using the template above) and an attachment of the product specification sheet. We cover this in more detail in our ‘Alibaba to Amazon’ guide.
Message on Alibaba
In addition to passively waiting for suppliers to message you, you can be proactive and search for suppliers. We wrote a guide to finding a supplier, which you can read here. Messaging on Alibaba follows the same format: copy and paste the text into the body and include an attachment.
You will email many suppliers in the same basic format: copy and paste the message into the email body and attach the Product Spec Sheet. However, when emailing, it is especially important to personalize it to make it stand out.
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