# Responding to RFQs

Responding effectively to RFQs wins more business.

## RFQ Overview

An RFQ (Request for Quote) includes:
- Product specifications
- Quantity requirements
- Target price (sometimes)
- Delivery timeline
- Quality requirements
- Destination/shipping terms
- Payment terms

## Review Process

### Step 1: Assess Feasibility
Ask yourself:
- Can you produce the item?
- Do you have capacity?
- Can you meet the timeline?
- Is the target price realistic?
- Do you have necessary materials?

### Step 2: Calculate Costs
Include all costs:
- Raw material costs
- Labor costs
- Overhead allocation
- Packaging costs
- Shipping/freight costs
- Margin requirements

### Step 3: Prepare Quote

## Quote Components

| Element | Description |
|---------|-------------|
| Unit price | Price per unit |
| Total order value | Unit price × quantity |
| MOQ | Minimum order quantity |
| Lead time | Production + shipping time |
| Payment terms | Net 30, 50% deposit, etc. |
| Validity period | Quote expiration (usually 30 days) |
| Terms and conditions | Your standard terms |

## Writing the Response

### Professional Structure:

**1. Introduction:**
Thank the buyer for the opportunity and express interest.

**Example:**
"Thank you for considering [Your Company] for your [product] needs. We are excited about the opportunity to partner with you."

**2. Technical Assessment:**
Confirm understanding of requirements and any clarifications needed.

**3. Pricing:**
Provide clear, itemized pricing breakdown.

**Example:**
```
Unit Price: $12.50
Quantity: 1,000 units
Subtotal: $12,500
Shipping: $850
Total: $13,350
```

**4. Timeline:**
Detail production schedule and delivery expectations.

**5. Value Propositions:**
Highlight unique advantages:
- Quality certifications
- Experience with similar products
- Production capabilities
- Flexibility
- On-time delivery record

**6. Call to Action:**
Invite next steps and provide contact information.

## Following Up

- Send follow-up if no response in 5-7 days
- Be available for questions
- Be open to negotiation
- Keep communication professional
- Offer samples if appropriate

## Winning Strategies

🏆 Respond quickly (within 24 hours)
🏆 Be transparent about capabilities
🏆 Offer competitive but sustainable pricing
🏆 Provide detailed technical information
🏆 Include relevant samples or case studies
🏆 Build rapport with buyers
🏆 Follow up professionally

## Common Mistakes to Avoid

❌ Quoting without understanding requirements
❌ Unrealistic lead times
❌ Hidden costs
❌ Poor communication
❌ Slow response times
❌ Not following up

## Sample Response Template

```
Subject: Quote for [Product Name] - RFQ #[Number]

Dear [Buyer Name],

Thank you for the opportunity to quote on your [product] requirements.

QUOTATION DETAILS:
Product: [Product Name]
Quantity: [Quantity]
Unit Price: $[Price]
Total: $[Total]
Lead Time: [X] weeks
Payment Terms: [Terms]
Quote Valid Until: [Date]

We look forward to your feedback.

Best regards,
[Your Name]
[Company]
```