Iris Blog - What Is an RFQ? Meaning, Use & Simple Template

If you’ve ever needed a quick, clear response from vendors on cost, timelines, or commercial terms—chances are you’ve used (or should’ve used) an RFQ.

In the world of procurement and vendor management, RFQ stands for Request for Quote. It’s one of the most direct and effective tools teams use to gather pricing when they already know exactly what they need.

In this post, we’ll break down what an RFQ actually means, when to use it, what to include, and how platforms like Iris help teams respond faster and with more accuracy—without the chaos.

What Does RFQ Mean?

An RFQ (Request for Quote) is a formal request sent to vendors asking for pricing and delivery details for specific goods or services. It’s used when requirements are clearly defined and you're looking for the best price, terms, or lead time—not a creative proposal or strategic plan.

In short: you know what you want—now you want to know what it’ll cost.

When Should You Use an RFQ?

RFQs are ideal when:

The product or service is well-defined and standardized
You’re focused on comparing pricing, turnaround, or commercial terms
There’s no need for vendor strategy or solutioning
You want a clean, transactional way to evaluate vendors

Examples include:

Ordering 500 licenses of a specific software
Hiring a contractor for a set scope of work
Procuring office equipment with fixed specifications
Renewing standard support or service agreements with updated pricing

Why Choose an RFQ Over an RFP?

While RFPs are useful for evaluating strategy or customization, RFQs are better when the decision comes down to cost, delivery, and execution.

Teams choose RFQs when:

The scope is crystal clear
Pricing is the primary decision factor
There’s no need for vendor interpretation
The objective is procurement—not discovery

If a company sends an RFQ, it likely means:

You’re already on their shortlist
They trust you can deliver
They want a fast, transactional response—not a pitch deck

RFQs cut through ambiguity and make it easy to compare vendors apples-to-apples.

What to Include in an RFQ (Simple Template)

Here’s a clean structure to build your next RFQ:‍

‍RFQ Template

1. Introduction

Brief summary of what you're requesting and why.

2. Scope of Work / Deliverables

Include quantities, specifications, timelines, and any technical requirements.

3. Submission Requirements

What vendors need to provide—unit pricing, bundled rates, terms, etc.

4. Timeline

RFQ issued date
Vendor question deadline
Submission deadline
Decision/award date

5. Evaluation Criteria

Optional, but helpful if you’re considering things beyond price—like lead time or warranty.

6. Point of Contact

Include the name, title, and contact details for the RFQ lead.

Common RFQ Pitfalls (and How to Avoid Them)

Even simple processes can go sideways. Here are a few RFQ mistakes we see often—and how to steer clear:

Vague requirements
Incomplete specs lead to incomplete quotes. Be clear and detailed.
Treating it like an RFP
If you’re asking for vendor insight or strategy, that’s not an RFQ. Keep it focused on pricing and fulfillment.
Sending to unqualified vendors
Don’t waste time on vendors who can’t meet your technical or timeline needs.
No clear deadlines
Without submission and review dates, quotes may come in too late—or not at all.
Inconsistent formatting
If every RFQ looks different, vendors spend time figuring out your process instead of responding quickly.

With Iris, you can standardize RFQs, maintain version control, and ensure everyone’s working from the same playbook—without the copy-paste chaos.

Where Iris Comes In

Whether you’re issuing RFQs or responding to them, speed and clarity matter—especially when timelines are tight or internal reviews slow things down.

Iris helps teams:

Auto-generate RFQ responses using AI-powered templates and pre-approved language
Surface historical pricing and terms from past quotes
Track edits, approvals, and internal comments with full audit trails
Collaborate in real time—no endless threads or missed updates

Whether you're in sales, procurement, legal, or finance, Iris keeps your RFQ process clean, compliant, and fast.

Pro Tip: Keep It Clear and Consistent

Vendors love a clean RFQ. The more direct and well-structured your request, the faster and more accurate the quotes you’ll receive. Avoid ambiguity, define your expectations, and provide context.

And for vendors: tools like Iris help you respond faster, route questions automatically, and reuse approved language—without reinventing the wheel.

Final Thoughts

The RFQ is a simple but powerful tool when used right. Whether you're issuing one or responding to it, the key is structure, clarity, and speed.

Platforms like Iris make the RFQ process scalable—helping teams move quickly, respond confidently, and never lose track of what was said, sent, or signed.