The Key Differences Between an RFI, RFP, and RFQ Response (Cheatsheet Included)

An RFI, RFP, and RFQ are all requests that buyers send out to gather information about potential vendors—but they’re far from interchangeable. Each one comes at a different stage of the procurement process and asks you to prove something different:

1. RFI: that you’re worth considering
2. RFP: that you offer the best solution
3. RFQ: that you deliver the best value

Knowing which is which—and how to respond effectively to each—can help you advance each round all the way to winning the deal.

In this article, we’ll break down the key differences between an RFI, RFP, and RFQ, and share tips on how to craft a winning response to each.

What’s the Actual Difference Between an RFI vs. RFP vs. RFQ?

The acronyms RFI, RFP, and RFQ all fall under the umbrella term RFx, which covers the full range of requests you might respond to during the bidding process. The difference between them is in their names: request for information (RFI), request for proposal (RFP), and request for quotation (RFQ).

Let’s dig into what a buyer is really trying to learn from each one. Or, you can refer to this cheatsheet the next time one of these requests comes around:

RFI	RFP	RFQ
Stands for: Request for Information	Stands for: Request for Proposal	Stands for: Request for Quotation
Asks for: More information about your product or services	Asks for: A full-blown proposal to outline your unique solution	Asks for: Pricing information and product specifications
Your Goal: Establish expertise through informative answers	Your Goal: Tell a story about why your solution is the top choice	Your Goal: Give the best price possible without sacrificing profit
Style: Standardized format	Style: Formal (with design liberties)	Style: Structured
Remember to: Answer all of the information needs (within limits)	Remember to: Create a content plan based on your win themes	Remember to: Leave a little wiggle room for negotiations

A request for proposal (RFP) is a document used to solicit bids from potential vendors for a specific product or service. Sometimes called a tender, particularly in the public-sector, an RFP includes a detailed overview of the project, what the company is hoping to solve or achieve, a list of requirements for what they need, and the evaluation criteria the procurement team will use to score responses and shortlist vendors.

What is the buyer specifically looking for? In the RFP process, a buyer is comparing how each vendor would actually solve their problem. They’re looking for a tailored solution that shows you understand their specific needs, meets their stated requirements, and gives them compelling reasons to choose you over the incumbent and other competitors.

When will you receive this type of request? An RFP can follow an RFI, or it can arrive on its own. If an RFI came first, you’ll typically receive an invitation to bid only if you made it through to the next round. When there’s no RFI, an RFP might come to you directly—often because your sales or capture management team has built a relationship with the buyer—or you may find it listed on one of the top procurement portals, open to anyone who wants to bid.

A request for quotation (RFQ) is a document which asks vendors to submit pricing details and payment terms for a product or service. While an RFP often requires a price proposal for a cost estimate, an RFQ is more approximate, seeking a list of prices for quantifiable items, like equipment and supplies. RFQs are often sent alone or in tandem with an RFP.

What is the buyer specifically looking for? With an RFQ, the buyer is comparing quotes for the best overall value. That’s not always the lowest price: oftentimes, they’ll weigh things like payment terms, delivery timelines, warranty, and reliability.

When will you receive this type of request? RFQs are most common in industries that purchase standardized, well-defined goods in volume—such as manufacturing, construction, retail, logistics, and government—where the specifications are already set and price is the main variable left to decide.

RFI, RFP, RFQ: How to Respond Effectively to Each Request

You may receive an RFI, RFP, or RFQ independently, all at once, or one after the other. Each of these requests play a big part in the procurement process and serve the same overall purpose: to ensure both parties make an informed decision before moving forward with a deal.

That said, none of these documents look the same–even if there are overlapping requirements. While you still have to react promptly and provide all the necessary information, how you respond will vary between the three.

Let’s take a look at best practices for responding to each:

How to Respond to an RFI

A prospect that sends an RFI is in fact-finding mode. They’ll send out an extensive questionnaire to conduct market research and learn more about which vendors are out there. To improve your chances of receiving an RFP (the usual next step in business processes), you should respond to an RFI by answering the questions fully and addressing the client’s specific needs.

Sounds simple, right? Well, these documents can be hundreds of questions long. Not to mention, the timeframe for responding can be around one to two weeks, and in some cases, one or two days.

Here are the best practices for responding to an RFI:

1. Qualify the opportunity: Since an RFI comes before an RFP, save yourself the trouble from doing more work later by seeing if the opportunity is a good fit from the start. Why spend time answering a bunch of questions if your company won’t likely win (or want to win) a bid down the road?
2. Automate your answers: If you receive a high-volume of RFIs, you may see the same questions again and again (especially if companies use RFI templates). Make your life a little easier with RFI software by storing these FAQs in a content library so that you can answer them on the double.
3. Personalize your response: Just because the questions are broad, it doesn’t mean your answers have to be. Do your research and find out as much as you can about the client, so that you can work this knowledge into your answers and show them you understand their pain points.
4. Don’t skip over questions: There may be a lot of questions, but you have to answer all of them. That said, you can still withhold confidential information or any secret-sauce details you’d like to save for the RFP. In other words, write your RFI response like it’s going to be shared publicly.
5. Get right to the point: You don’t have to write an essay for each question–in fact, it’s best practice to keep your answers brief and digestible, considering the procurement team will likely skim their large pile of responses. There’s no need to go into extensive detail. Simply provide the information that’s asked, nothing extra.

How to Respond to an RFP

Of course, prospects won’t always issue an RFI first when inquiring about your business. If they have enough information about the market, they may send a request for proposal (RFP) immediately. Prospects that issue an RFP are ready to choose a vendor, they just might not know who the best vendor is yet. 

Although this request can be complex and overwhelming, it’s your company’s opportunity to shine. Unlike an RFI response–which tends to be strict and structured–you have more freedom to tell a compelling story about why your solution is the number one choice (especially in the executive summary).

Here are the best practices for responding to an RFP:

1. Optimize your RFP intake: Create an intake process in Salesforce or your customer relationship management (CRM) software of choice. Use it to capture basic information about the RFP so that the right people can be notified before it even arrives and start pre-proposal research.
2. Focus on the winners: If you didn’t qualify the opportunity in the RFI process (or didn’t receive an RFI to begin with), it’s now or never to decide whether the bid is worth it. Use an ironclad decision matrix–like this go/no-go decision template–to prioritize which RFPs to pursue.
3. Put the prospect first: A prospect wants to feel like you truly understand their needs. So, shred the RFP (AI can help here) to identify all of the requirements and key insights. Then, use this information to develop strong win themes and create a strategic content plan.
4. Automate your first draft: RFPs often come with tight turnaround times. RFP automation software can build out an initial draft by pulling answers directly from your trusted content sources. That frees you up to do what actually wins bids: refining the response to the specific buyer.
5. Make it a team effort: Responding to an RFP doesn’t fall squarely on your shoulders. Remember to get input from multiple stakeholders early on in your RFP response process to make sure you’re on the right track. And enlist the brainpower of subject matter experts (SMEs) to help you answer more niche questions accurately.
6. Triple-check the proposal: One little oversight can lose you the entire bid. Even if the deadline is looming, take the time to proofread the proposal and confirm you’ve made the best case for your company. Ask yourself the four C’s: is it consistent, compliant, clear, and compelling?

How to Respond to an RFQ

A prospect that sends a request for quotation (RFQ) typically has one criterion in mind: the best price. They’re less interested in a packaged sales pitch and simply looking for a breakdown of how your product or service fits within their budget. Although this request can be more of a cost shoot-out, it’s a good idea to still quantify your value in other ways, like having the fastest delivery.

Each organization will have slightly different RFQ processes. Sometimes you’ll have to provide a capability statement to prove you can fulfill the order. Alternatively, you may only have to plug prices into an excel spreadsheet.

Here are the best practices for responding to an RFQ:

1. Prove your commitment: Look over the delivery schedule, budget, and other requirements. Do you have the capability to deliver as promised? Do you have a proven track record? Can you be flexible if the requirements change? Answer these questions in the letter you supply with the quote.
2. Think like a negotiator: Instead of providing the lowest price from the get-go, submit a quote with a 10% higher gross margin to allow wiggle room for negotiation (in your favour). That way, you won’t have to sacrifice profit to win and they’ll walk away feeling triumphant that they negotiated a lower price than the original quote.
3. Get the inside scoop: What’s the real reason a company is issuing an RFQ? Is it to discover your pricing before they’re even ready to buy? Or perhaps, justify their budget with another vendor? It’s important to build a relationship with a client before putting all of your cards on the table.

Is the RFI, RFP, RFQ Process Fair? Behind the Scenes of Procurement

While it’s not uncommon for buyers to have a winner in mind (like the incumbent), the procurement process is designed to level the playing field.

In an ideal scenario, all vendors have equal opportunity to compete for business because the organization strives to make the process fair, unbiased, and transparent. They might:

Whether you receive an RFI vs RFP vs RFQ, rest assured knowing that every vendor will have to answer the same questions, in the same format. There will be clearly defined criteria for all suppliers to meet and a structured evaluation framework to minimize potential biases.

In a sealed bidding process, an organization opens all bids simultaneously (and often reads them aloud in a public forum). While you see this more in the public sector, some companies follow it to avoid the exchange of inside information before submission (a.k.a bid rigging).

FAQs About RFIs, RFPs, or RFQs