GUIDE FOR DISTRIBUTORS AND WHOLESALERS
What is an RFQ? A guide for distributors
An RFQ, or request for quotation (also called a request for quote), is a message or document in which a buyer asks suppliers to price a defined list of products or services. It states what is needed, how many, where and by when, so every supplier can answer with a quote that can be compared line by line.
This guide is written for the other side of the counter: the distributor, wholesaler or trade counter that receives the request, has to find every item, apply the right price and reply before the customer asks someone else. You will find the meaning, the fields an RFQ should carry, how it differs from an RFP, a quote and a purchase order, a worked example with checked numbers, the mistakes that cost sales, and a checklist.
Last updated
RFQ meaning in plain terms
The buyer already knows what it wants. It might be 200 hex bolts, a pallet of trash liners or the valves for a mechanical room. What the buyer does not know is who will supply them at a workable price and delivery date for that job, so it asks. The RFQ is the question; the quote is the answer.
An RFQ is used when the need is specific enough to be priced and compared: a part number, a specification, a quantity. That is why it is the everyday tool of purchasing in distribution, maintenance and construction supply. When the buyer is still working out how to solve a problem, it sends an RFP instead (see below).
In practice, hardly anyone at a trade counter says “RFQ”. The same thing arrives as “can you price this?”, a forwarded spreadsheet, a PDF from a maintenance planner, a photo of a handwritten list or a text message. Large buyers send formal RFQs with a number and a deadline; small contractors send a screenshot. Both are requests for quotation, and both deserve a clear, complete answer.
What an RFQ should contain
A good RFQ gives the supplier everything needed to quote without a phone call. A weak one forces the distributor to guess, or to ask five questions before pricing a single line. These are the fields to look for, and to ask for when they are missing.
| Field | What the buyer states | Why the distributor needs it |
|---|---|---|
| Reference and contact | RFQ number, buyer company, name, phone and email | To address the reply and let the buyer match it to the request |
| Response deadline | The date and time the quote is due | A late quote may not be considered |
| Item lines | Part number or specification, description, quantity, unit of measure | Each line is priced separately, so each must be unambiguous |
| Brand and substitutes | Required brand, or “or equal” where alternatives are accepted | Decides whether you may offer an equivalent |
| Delivery | Ship-to address, required date, pickup or delivery | Drives stock check, lead time and freight |
| Commercial terms | Payment terms, Incoterms or freight terms, currency | Shape the price and the risk you take on |
| Quote validity | How long prices must hold | You commit to prices for that period |
| How it will be judged | Price only, or price plus lead time and terms | Tells you where to compete |
If a field is missing, say so in your reply and state the assumption you made. “Quoted for pickup at our branch; freight not included” protects you better than a silent guess.
RFQ vs RFP vs RFI vs quote vs purchase order
The acronyms are easy to mix up because they describe consecutive steps of buying. The simplest way to keep them apart is to ask who sends the document and what it is meant to settle.
| Document | Sent by | What it is for | Price is… |
|---|---|---|---|
| RFI (request for information) | Buyer | Learning what suppliers can offer before defining the need | Not asked yet |
| RFQ (request for quotation) | Buyer | Getting prices and terms for items that are already specified | The main question |
| RFP (request for proposal) | Buyer | Comparing proposed solutions to a problem or a complex scope | One factor among several |
| Quote | Supplier | The priced answer to an RFQ | Stated line by line |
| Purchase order | Buyer | The order that accepts a quote and commits the buyer to buy | Agreed |
Two more words appear in public and large-scale buying. An invitation to bid or tender is a formal, rules-driven version of an RFQ used by public bodies and big projects. A quote is sometimes called a quotation or a bid depending on the market. The principle is the same: the buyer describes the need, the supplier answers with a price.
The practical difference between an RFQ and an RFP is what is being compared. With an RFQ the products are fixed and you win or lose on price, availability and terms. With an RFP the buyer wants ideas and a method, so the answer is a proposal and price is only part of the evaluation. A distributor answers RFQs far more often than RFPs.
How the RFQ process works
From the buyer’s side the process has five steps:
- Define the need: items, quantities, specifications, delivery date.
- Choose the suppliers to ask.
- Send the RFQ with a deadline and the terms that apply.
- Compare the quotes on price, availability, delivery and terms, and clarify anything unclear.
- Award the business by sending a purchase order to the chosen supplier.
From your side, as the distributor, the same process looks like this:
- Log the request when it arrives, with its deadline, so nothing sits in a shared inbox.
- Read every line and decide which of your products it means. Ask a precise question when two products could fit.
- Check stock and lead time for each line, and note substitutes you could offer.
- Price each line for this customer: their tier, the quantity, any contract price.
- Add freight, taxes, validity and terms.
- Have a second person check any large or unusual quote.
- Send the quote before the deadline, then follow up.
Worked example: an RFQ and the quote that answers it
A maintenance planner at a plant sends this request at 4 pm and wants prices by tomorrow morning. Notice what the quote adds that the request does not say: exact part numbers, unit prices, a line total and a plain statement of what is and is not included.
What the buyer sends
- 200 hex cap screws 1/2-13 x 2, grade 5, zinc
- 200 matching hex nuts
- 400 flat washers for 1/2 in bolts
- 200 lock washers 1/2 in
- Need by Friday, ship to the plant
The quote, ready to check
| Description / part no. | Qty | Unit price | Line total |
|---|---|---|---|
| Hex cap screw 1/2-13 × 2 in, grade 5, zinc — HCS-050-200 | 200 | $0.62 | $124.00 |
| Hex nut 1/2-13, zinc — HN-050 | 200 | $0.14 | $28.00 |
| Flat washer 1/2 in, zinc — FW-050 | 400 | $0.06 | $24.00 |
| Split lock washer 1/2 in, zinc — LW-050 | 200 | $0.07 | $14.00 |
| Total, goods only (sample) | $190.00 | ||
Illustration with sample products and prices. Freight, tax and lead time would be stated on a real quote. In your own account, part numbers and prices come from your catalogue and your price rules, and a person on your team reviews the quote before it is sent.
The arithmetic is simple, and that is the point: 200 × $0.62 = $124.00, 200 × $0.14 = $28.00, 400 × $0.06 = $24.00 and 200 × $0.07 = $14.00, which add up to $190.00. Most mistakes in RFQ responses are not in the maths but in the lines: a nut quoted for the wrong thread, a unit of measure that turns “per 100” into “each”, or a missing delivery date.
A complete reply also tells the buyer what it cannot see in the table: “All items in stock at our main branch, ship Thursday for Friday delivery. Freight added at cost. Prices valid 30 days. Quote based on pickup if you prefer to collect.”
Common mistakes when answering an RFQ
- Missing the deadline. A fast, correct quote beats a perfect one that arrives after the award.
- Answering only some lines without saying so. If you cannot supply a line, mark it “no quote” so the buyer does not assume it is covered.
- Quoting a substitute as if it were the specified item. Show alternates on their own line, labeled as alternates.
- Mixing units of measure: per each, per 100, per foot, per box. State the unit on every line.
- Leaving out freight, minimum order charges or handling, and absorbing the cost later.
- Forgetting the validity date, so the price is open-ended while your costs move.
- Using the wrong customer price: a list price for a contract customer, or last year’s tier.
- Sending a long quote without a second pair of eyes. One wrong digit on a large line is expensive.
Checklist: before you send the reply
- Is the quote addressed to the right contact and does it quote the buyer’s RFQ number?
- Does every requested line have an answer: priced, substituted or marked “no quote”?
- Is the unit of measure stated and consistent with the quantity?
- Are stock status and lead time shown for each line that is not on the shelf?
- Is the price the one that customer should receive, by tier, quantity or contract?
- Are freight, taxes and minimums included or clearly excluded?
- Does the quote show its validity date and payment terms?
- Has a person checked the totals?
Where a quoting tool helps with RFQs
Nearly all of the work above is repetitive: reading the request, finding each item, applying the price. That is where software earns its place, as long as a person stays in charge of what is sent.
Qotora AI is built for the distributor on the receiving end. The request is dropped in as it arrived: email, PDF, Excel, a photo of a handwritten list, a text message or a voice note. Qotora reads it, finds each line in your own catalogue, applies your own price rules and customer tiers, and, when a line is unclear, asks a precise question instead of substituting. Every price traces back to your own data. A person on your team reviews the quote, and nothing leaves without approval.
Frequently asked questions
What does RFQ stand for?
RFQ stands for request for quotation, also written request for quote. It is a request from a buyer asking one or more suppliers to quote prices and terms for specified goods or services.
What is the difference between an RFQ and a quote?
The RFQ is the buyer’s request; the quote is the supplier’s answer. The buyer sends the RFQ to get prices, and the supplier replies with a quote listing each item, the price, the availability and the terms.
What is the difference between an RFQ and an RFP?
An RFQ asks for prices on items that are already specified, so price, availability and terms decide the award. An RFP asks suppliers to propose a solution to a problem or a complex scope, so the approach, experience and price are all evaluated.
Is an RFQ legally binding?
Usually not. An RFQ is an invitation to quote, not an order, so the buyer does not commit to buy by sending it. The supplier’s quote is typically the offer, and the buyer’s purchase order is what accepts it. Rules differ by country and by the terms in the documents, and public procurement has its own formal rules, so ask a lawyer about a specific contract.
Who sends an RFQ?
The buyer: a purchasing department, a maintenance planner, a contractor or a small business owner. The RFQ goes to the suppliers the buyer wants prices from, which is why distributors receive them all day.
What should I include when I respond to an RFQ?
Answer every line with the exact part number, quantity, unit of measure, unit price and line total. Add availability or lead time, freight and tax treatment, payment terms, the quote’s validity date and any substitutes, clearly labeled.
How fast should I answer an RFQ?
As fast as you can while staying accurate, and always before the stated deadline. The first complete and correct quote can shape the buyer’s decision, but a fast quote with a wrong unit price costs more than a slow one.
Can an RFQ arrive as a photo or a text message?
Yes. Formal RFQs come as numbered documents, but many requests arrive as emails, spreadsheets, photos of handwritten lists or text messages. Treat them as RFQs: confirm the missing details and quote with the same care.