How to meet a RFQ (Request for Quotation)

How to
Meet a RFQ
(Request for Quotation)
Suitable Quotation Procedure
(or Best Practices Check-list)

(For not offending sensibilities, I promise that
only 2 cats appears in this presentation, and
we guarantee they did not suffer…)

Two Parts
(when you receive a RFQ, or Request for
Quotation)
COMMERCIAL
TECHNICAL

First task
(What do we do first?)
o Provide a price of the items required?
o Check if we meet the specs?
o Offer solutions to needs?
o Run to win the business?
o What is our first task ?
Well, maybe all of them, but first…

First task
Check whether it can
be qualified as
OPPORTUNITY
Or not… Tip:
First view
may be
wrong!
Later we may follow all steps:
from simple cases (lower steps)
to most complex cases (all steps)

Opportunity Qualification
1. Check origin
o Web?, email?,
phone call?, fax?, other?…
o Who is sending this? Country?
o What company?
• Distributor/rep?
• Trader (known or unknown?)
• Customer (known or unknown?)
• Competitor?
• Unknown?
o Ask the rep/distributor to find out more?
Tips:
Keep your
mailbox in
order
Tip:
See company
Webpage and
check contacts in
social networks
(Linkedin)

2. Check subject
o Similar to previous RFQs?
o Country Destination?
o Tender? Budgetary quote?
o Urgent? (why?)
o Just Request for Info (RFI)
o Is it a customer service case?
o Are they asking for a competitor’s product? (model
name or not mentioned?)
o What they really ask for?
o Do we really have something to offer?
o DO WE REALLY NEED TO QUOTE?? (sometimes we
cannot meet some expectations or cannot work with
some companies due to conditions, not our target
client, etc)
Tip:
Know well your
product´s range
and competitor´s
range

3. Make qualifying questions
(if 1 and 2 did not give you the answer)
o Country destination, customer/project ?
o More specs available?
o Clarify/confirm contradictory data – in specs
and/or company
o More data of your company?
o Deadline?
o A Request for Distribution can also hide an
incoming RFQ… suspect.

4. Hey, it´s an opportunity!
o Congratulations, they have selected you
among the many choices – they could have
not contacted you at all…
o You are invited to the party…
prepare your best suit
and best mood…
(well, a bunny is not a cat…)

Task 2
(once you certainly qualified that
it’s a real opportunity)
o Who will answer?
• We?
• Our rep/distributor?
(even if issued by them)
In both cases – we will follow up, mixing commercial
and technical parts
Tip:
Carefully match
offers and
channels

1. Proposal Kick-Off
Task 3
Proposal Development
2. Proposal Strategy
3. Proposal Presentation
4. Proposal Validation
Tip:
Check all
comments
along the
process !

Know/identify your customer better (maybe this was already
clarified in qualification task)
o Addressed to end user or to distributor?
o Check Previous purchases/quotes
o Who is the real decision maker?
o Purchase profile and context. They want / or need?
o Perception of your company?
o Expected to be quoted as well to others?
CRM registering
o Create opportunity, compile documentation available
o Create accounts/contacts if required
o Assign tasks to Rep if required

An RFQ is more than the price per item:
o Identify DEADLINE to quote
oTransport specifically required ? Where? Different to
final destination?
o Resale Discount required?
o Identify Payment terms required, if any
o Identify delivery date required, if any
o Identify validity of offer required, if any
o Any special Warranty required?
o Any special certificate required?
o Training required? (or demo)
o Identify any special condition required

Identify/validate client needs/requirements:
ALWAYS have substantive conversations with customers
to uncover the real/root reason of the RFQ, if possible.
o With/through the Rep or without the Rep
o If possible, to really find out the real needs.
o If not possible at all, make assumptions, and next steps.
o This part might require a visit/s to client
(possibly Assign tasks to rep)
o What is the application for the product? Problems?
Procedure? Conditions?, etc.
o Are they already using similar type of product?
(model/brand?) or what they are using now?
o Do they need a demo?
Tip:
Even if we
are specified
!!

Identify/confirm documentation required
o Compliance List?
o Certifications?
o References?
o Comparisons with competitors?
o Papers?
o Presentations?
o Datasheet & Brochure, hard copy?
o Authorizations?
o Any additional documentation? (tenders)

Clarifying our specific strategy & Decide what better fits the RFQ
• Analyze competitors alternatives & possible prices of competitors
(help from the Rep?)
• Competitors already quoted? (chance of getting the target price?)
• Analyze our possible product/s to offer:
o That meet customer needs (real needs if found out)
o That meet customer specs (not need to be the real needs)
o That best beat the competition.
o Do we offer options? Accessories ?
o If not met needs/specs, our best possible option (if justified)
o Or our better option? (exceeding the needs/specs)
o Watch out!: lack of compliance with specs, terms, etc… is a
main reason to be rejected.

Prices Strategy (being clear about the above) - BUDGET FOR IT?
o Discount per item? different discounts?, or final discount? price list or
higher?, etc.
o Commissions? Commission negotiation?
o Several product options? discount for each one? Purpose?
o Based in previous prices to same customer/distributor?
o Based in quantities? Closed price for the whole package?
o Specific Strategy when it is a tender (do we know previous
prices of competitors in similar tenders?)
o We are specified?
o Second round expected?
o Target price, if any?
o One or several quotes? Price Anchoring?
o To be quoted to several companies? Same price?
Tip:
Cheaper prices must
be justified

Required Terms Strategy (Having clear all the above)
o Payment terms
o Transport, or Ex-works.
o Delivery time (there is stock right now?) – fit the required?
o Training costs & conditions, and where, if required.
Free training?, included in the price of the products?
o Offer validity (urgent answer required to keep discount?)
o Warranties?
o Define our proposal for any other required terms

Documentation Strategy (Having clear all the above)
o Brochures?
o Comparisons?
o Papers?
o References?
o Any other document ? (tenders)
o Photos or videos?
o Links?, content deliveries?
Tip:
Sometimes the need of
some specific
documentation arise in
the body of the
proposal description

Making Quote:
o One or several quotes (make several for long or
complex options)
o Quote must be clear – place in order the items.
o Keep in mind all related points mentioned in strategy:
• Solutions offered, options, quantities, etc.
• Prices strategy, discounts – notes, etc.
• Delivery Terms.
• Re-check delivery times.
o Place in Notes all that is non standard terms
o Check all points, print if neccessary.
Tip:
ALWAYS
RE-CHECK !!,

Describing/Explaining the Quote
o Describe the quote! you need to tell your customer what you’ve got,
and what it’s going to do for them.
o Justify the options quoted. Use images/videos if required.
o Why the solution offered meet the enquiry – or why not.
o Keep in mind all related points mentioned in strategy.
o Provide advantages and differentials – not only features.
o Justify prices, if required.
o Provide additional data not mentioned in the quote (i.e. stock right now?)
o Place a call to action, any related proposal (call, demo, visit, answers…)
Tip:
Save similar
explanations as
templates

Stop for a while when proposal is fully written… last chance to make changes
o Does your customer want/need what you’ve got to offer?
o Is the offer beneficial to customer /rep/distributor?
o Re-read, re-check, is it clear?
o Make it simple (remove obstacles)
o Used all sales tools?
o Any way to add more value?
o Does the offer include a call to action?
o Any task to assign to rep/distributor?
o Do we need a second point of view?
o Expectations are realistic?
o Anything missed?
Tip:
Be polite, Be
friendly, Be you

Last checkings…. 3, 2, 1… Launch!
o Always re-check, do not forget quote!
o Check grammar!
o Check all attachments are included! (and that they are the right ones)
Special attention in tenders with many documents. Make/place a list.
o Attachments listed/described in the body?
o Re-Check email recipients. Are all people in copy included?
Somebody in BCC?
o Check final size! if attachments are too big, plan to send several mails
with numbers/description.
o Signatures?
Tip:
Use Google
Translator

o It depends on answers to the 1st proposal:
• Always confirm quote reception!
• Maybe it’s required to make a new quote (options selected,
changes, etc..)
• Objections?...revise proposal…1 to 4. New strategy, new prices,…
• Additional documentation required, further explanation,
clarifications, etc.
• No answers…insist with rep/distributor/customer
• Key dates?, activities?
• Next action or steps to validate it?
• Feedback?
o Got validated ? Now we have clear what customer will accept?
>>>> PLAN POST-SUBMISSION ACTIVITIES.

If we did not meet the RFQ,
take some Conclusions…

What worked well, what worked
wrong, and why?
The output of one process becomes
the input of another process
Report and share conclusions
… Some Real Conclusions

“A bad process is better
than no process at all”
Tip:
Add lessons learned
in next procedures,
Improve the
procedure…

SUMMARY – HOW TO MEET A RFQ
o Qualification of Opportunity
• Check Origin
• Check Subject
• Qualifying Questions
• Qualify as opportunity
o Who will answer?
o Proposal Development
 Identify your customer better
 CRM Registration
 Identify RFQ terms
 Identify/validate client´s needs & requirements
 Identify/confirm documentation required

 Products Strategy
 Price Strategy
 Required Terms Strategy
 Documentation Strategy
 Making quote/proposal
 Describing/Explaining the quote
 Stop for a while, last changes
 Last checkings and Launch
 Validate Proposal
 Plan post-submission activities
o Not met?
• Take conclusions
• Improve the process

How to meet a RFQ (Request for Quotation)

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