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 complexity of the project. If you are sourcing a simple item, you can use your full spec sheet in the RFQ, but if the project is more complex, you may want to make a simplified product spec sheet to attach to the RFQ.
There are two parts to an RFQ: the initial message/email to the factory and a product spec sheet. Some people introduce the full product spec sheet in the first part, and that’s fine for most projects, while others will simplify one to introduce the product and show the entire product spec sheet when it comes closer to production.
We’ll go over how to talk to suppliers later, but for now, we will use this section to craft a great introduction to you and your product. Check out our guide on how to talk to suppliers and the best questions to ask Suppliers here!
Remember: Supplier will quote only on the Info you have provided
Remember that when you ask a supplier to make a quote, they will only use the information you have provided them about your product. You made a well-defined spec sheet in the previous section/blog post. This is the time that you start to share the product spec sheet. When the supplier receives the product spec sheet, they will have a project manager or an engineer who will go over the product spec sheet line by line to calculate the cost.
You also need to ensure that 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 is the various emails you sent to them asking about the product, questions, etc., so if you asked for a change in an email, it would not be included unless you update the product spec sheet.
How to create an RFQ
The RFQ needs to do two things: First, it needs to fully and quickly introduce your product, and second, it needs to solicit the supplier to send you a quote on your product.
When messaging a supplier, you need to ask them to quote the product details you 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 do each email individually. I follow a template and create a new one for each project to add a few customizations. I 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 sees the same email templates to take the time to personalize them and make them yours. 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 anything else impersonal will almost always get ignored. If you can, add an extra sentence
Another thing to note is that English is almost certainly not the first language of the person you are talking to. So be sure to use clear and simple language while making sure you are getting your point across.
Where to post an RFQ
Now that you have your message and product spec sheet, the next step is determining where to send it and getting suppliers. Alibaba is the most commonly used tool, but there are several alternatives to Alibaba, which you can check out 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 the user to submit an RFQ, which almost always includes a form to fill in the text (using your template from above) and attach the product spec sheet. We go over 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 on how to find a supplier that you can read here. Messaging on Alibaba follows the same format as copying and pasting the text into the body and including an attachment.
For many suppliers, you will email them the same basic format of copying and pasting the message into the email body and attaching the Product Spec Sheet. However, when emailing, it is extra important to personalize it to get it to stand out.
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