Request for Quotation (RFQ)
A formal document sent to manufacturers requesting pricing, lead times, and terms for producing a specific product. A well-prepared RFQ dramatically improves the quality and speed of supplier responses.
A Request for Quotation (RFQ) is your formal ask to a manufacturer for pricing and terms. The quality of your RFQ directly determines the quality of quotes you receive. A vague RFQ ("I want to make a water bottle, how much?") will get vague, often inflated responses. A detailed RFQ with specifications, quantities, target pricing, and timeline will get serious, competitive quotes.
A strong RFQ should include: product specifications or reference samples, material requirements, dimensions and tolerances, quantity tiers (e.g., pricing at 500, 1,000, and 5,000 units), packaging requirements, target FOB price if you have one, required certifications (FDA, CE, UL, etc.), timeline expectations, and any special requirements like custom colors or printing. Including a 2D drawing or 3D CAD file dramatically improves quote accuracy.
Best practice is to send your RFQ to 5-10 qualified suppliers simultaneously. This gives you a range of pricing to compare and helps you identify outliers. A supplier quoting significantly below the pack may be cutting corners on materials or quality, while one quoting far above may be a trading company adding middleman margins. The cluster of quotes in the middle usually represents the true market price.
Why it matters
Include 3 quantity tiers in your RFQ (e.g., 500, 1,000, 5,000 units). This shows the factory you are planning for growth and helps you understand how pricing scales with volume.
Practical Tip
Include 3 quantity tiers in your RFQ (e.g., 500, 1,000, 5,000 units). This shows the factory you are planning for growth and helps you understand how pricing scales with volume.
You'll hear this when…
When briefing a factory
“"We need the Request for Quotation (RFQ) process clearly documented in your quality control plan."”
When reviewing samples
“"Can you confirm which Request for Quotation (RFQ) standard was applied during production of these samples?"”
When placing an order
“"The purchase order includes a clause requiring Request for Quotation (RFQ) compliance for all production runs."”
Related Terms
Minimum Order Quantity
MOQThe smallest number of units a manufacturer will produce in a single order. MOQs exist because factories need minimum volumes to justify setup costs, material purchases, and production line time.
Bill of Materials
BOMA comprehensive list of all raw materials, components, sub-assemblies, and quantities needed to manufacture a finished product. The BOM is the foundation of cost estimation and production planning.
Tooling
The molds, dies, jigs, and fixtures required to manufacture a specific product. Tooling is typically a one-time upfront cost that enables mass production of your custom design.
Original Equipment Manufacturer
OEMA manufacturer that produces goods based on the buyer's specifications and design. The buyer owns the design and IP, while the factory provides manufacturing capability.
Original Design Manufacturer
ODMA manufacturer that designs and produces products which buyers can purchase and rebrand under their own label. The factory owns the base design, though minor customizations are usually available.
This term appears in every Bottlecap report.
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