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 RFP vs RFQ: The Key Differences & Real-Life Examples

Written by Idorenyin Uko
Published at Apr 04, 2025
Edited by: Victoria Taylor
Reviewed by: Unenabasi Ekeruke
 RFP vs RFQ: The Key Differences & Real-Life Examples

Every purchase you make—whether it’s a new laptop, a marketing tool or a home renovation—starts with research. You compare prices, check reviews and weigh your options, all so you can get the best deal.

Businesses go through a similar process when selecting vendors for a project, but on a much larger scale.

They rely on RFQs (Request for Quotation) and RFPs (Request for Proposal) to gather competitive bids and proposals and make informed decisions.

But what’s the difference between an RFQ vs. RFP and when should you use them? It all comes down to where you are in the procurement process and what you're looking to achieve.

Are you sourcing the most competitive price for a clearly defined product or service?

If so, an RFQ will keep things simple and focused on cost. But if you need a vendor who can offer innovation, expertise and creative solutions tailored to your business needs, an RFP is your go-to option.

Understanding the difference ensures you use the right approach to get the best results.

In this article, I’ll break down the key differences between an RFQ and RFP, explore real-world examples and help you decide which one is the best fit for your business.

Let’s dive in!

 

Table of Contents

 

Quick Read

  • A request for proposal used during the procurement process to solicit formal bids from vendors.
  • In addition to requesting pricing from potential vendors, the RFP breaks down the scope and requirements of the entire project, including the budget, timeline, evaluation and selection criteria
  • By contrast, a request for quote (RFQ) is a document used by organizations to request pricing options for a specific product or service.
  • A request for information (RFI) is an informal first step in gauging a supplier’s ability to do business with your organization. It’s also a chance for suppliers to see if the request is a good fit for their business.
  • The major difference between RFP and RFQ. An RFQ is sent when an organization already knows what they want to buy and only needs more information about the price. Whereas an RFP is sent when an organization needs more detailed information about the product or service.
  • Visme offers dozens of tools to help make your procurement process efficient, including professionally designed proposal templates, collaboration and workflow features, AI tools, animation and interactive elements and much more.

 

What is an RFP

An RFP (Request for Proposal) is a formal document that organizations use to solicit bids from vendors or service providers for a specific project, product or service. It typically contains the following information:

  • Project's scope and requirements
  • Budget
  • Payment terms
  • Timeline and milestones
  • Evaluation and selection criteria for competitive and informed bidding.
  • Submission guidelines and deadline
  • Terms and conditions

Companies, government agencies and nonprofits mostly issue RFPs or bid requests to open up competition among vendors and remove bias from the selection process. And in some cases, a competitive bidding process may drive down the project cost.

Vendors then submit RFP responses or proposals explaining how they can meet the requirements, often including pricing, timelines and qualifications.

 

Real-Life Example of an RFP

While each sector has its nuances, the core objective of an RFP remains the same: finding the right vendor to fulfill a specific need or goal.

A well-crafted RFP plays a crucial role in this process. It helps organizations identify qualified partners who can deliver the best solutions.

To see how this works in action, let’s explore a real-life example of an RFP in practice.

When New Jersey City University (NJCU) wanted to use data to better understand student success, it put out an RFP for predictive data analytics solutions. The goal? To find a vendor that could help turn raw numbers into meaningful insights that improve student outcomes.

Right from the cover page, this RFP makes an impact with a bold image of the university and key dates for issuance and bid openings. Inside, it lays out everything a vendor needs to know—bidder guidelines, scope of work, submission requirements and the financial proposal structure.

NJCU is clear about what it wants to achieve and sets expectations upfront. It also emphasizes supplier diversity, showing a commitment to working with a broad range of vendors.

One of the standout features of this RFP is its detailed list of questions, which can serve as a great reference if you're putting together an RFP of your own.

Website Design RFP
Website Design RFP
Website Design RFP
Website Design RFP
Website Design RFP
Create your RFP with this easy-to-edit template Edit and Download

Looking for more inspiration? Check out our curated list of 24 industry-specific RFP examples to guide you.

Once you're ready to create your own, this Website Design RFP template gives you a solid starting point. It's designed to help you clearly outline project requirements, evaluation criteria and expectations—so you can attract the right vendors with ease.

Want to make your RFP more engaging? Visme’s animation and interactive features let you add clickable elements, hover effects and embedded videos to create a dynamic, modern document that stands out. Share your RFP as a link, downloadable PDF or even an interactive presentation.

 RFP vs RFQ - adding interactive elements to an RFP document

 

RFP vs. RFI: Key Differences

An RFI (Request for Information) is typically the first step in the procurement process. In the early stages of your project, it helps you explore available solutions and how vendors approach your challenge.

Think of an RFI as a low-commitment way to explore potential suppliers and gather early information. It also helps suppliers gauge if they’re the right fit.

Many businesses use an RFI as a research tool to streamline their decision-making in the source-to-contract or procure-to-pay process.

Key thing to remember: an RFI isn’t a contract—it’s just a tool to explore your options.

After reviewing the RFI responses, you’ll have a clearer understanding of vendor capabilities, available technologies and industry trends.

From your research in the RFI stage, you’ll most likely figure out what you need. An RFP (Request for Proposal), on the other hand, helps you find the best vendor to deliver it—one that meets your technical requirements, aligns with your budget and brings the right experience and expertise to the table.

Since RFIs are exploratory, vendor responses tend to be more general, broad and open-ended.

RFPs require vendors to submit comprehensive bid proposals, including detailed strategies, pricing, timelines and sometimes even sample work or a prototype so you can compare and choose the best option.

Here’s how both documents are used in the procurement process:

Let’s say a company is looking for a CRM (Customer Relationship Management) solution to improve customer interactions and sales tracking.

First, they issue an RFI (Request for Information) to gather insights on the best CRM options in the market. The goal is to understand the key features available, integration capabilities, pricing models and how different vendors approach customer relationship management.

Vendors respond with details about their platforms, best practices and case studies of similar businesses they’ve helped. At this stage, the company isn’t making any decisions—it’s simply exploring possibilities.

After reviewing the RFI responses, the company has a better idea of what it wants in a CRM. Now it moves to the RFP (Request for Proposal) stage. This time, it’s not just asking for general information—it’s looking for a vendor that can meet its specific needs. The RFP outlines requirements such as automation features, reporting tools, integration with existing software, security standards and budget constraints.

Vendors submit detailed RFP responses with templates explaining how their CRM meets these needs, along with implementation plans, timelines and pricing.

If you’re a vendor looking to craft a winning response, here’s a template to help you put together a strong proposal that gets a yes.

RFP Proposal Response
RFP Proposal Response
RFP Proposal Response
RFP Proposal Response
RFP Proposal Response
Create your RFP with this easy-to-edit template Edit and Download

 

What is an RFQ

An RFQ (Request for Quotation) is a formal document that organizations use to request pricing from vendors for a specific product or service. It outlines the exact specifications, quantities, delivery requirements and terms needed so that businesses can compare bids based on cost and value.

RFQs are typically used when the buyer knows exactly what they need and is primarily focused on obtaining the best price.

They are most common in industries like manufacturing, construction and retail, where price and volume are key factors in decision-making.

Let’s say an organization needs to stock up on printing paper for its office. They’ve been buying from three major suppliers—X, Y and Z—but they want to make sure they’re still getting the best deal.

So, instead of just reordering from the same vendor, they send out an RFQ (Request for Quotation) to all three, asking for updated pricing, bulk discounts and delivery terms. This way, they can compare offers side by side and lock in the best price without compromising on quality or service.

Many procurement teams rely on templates for RFQs to keep vendor responses consistent. This not only makes it easier to compare quotes side by side but also speeds up the process and saves time.

 

Real-Life Example of an RFQ

Government-issued RFQs are usually packed with detailed information. This 24-page RFQ from the United States Department of Transportation, Federal Highway Administration (FHWA) is no exception. It specifically requests brand-name traffic counting equipment and related supplies so vendors meet precise requirements.

Right from the cover page, you get all the essentials—issuing office details, agency contact, solicitation number, release date and key deadlines for technical questions and quotation submissions.

Inside, the document is structured into four key sections:

  • RFQ Information & Instructions: A step-by-step guide on how to prepare and submit your quotation.
  • Schedule of Supplies: A breakdown of the required equipment and specifications.
  • Solicitation Provisions: Terms and conditions vendors must follow when submitting their bids.
  • Contract Clauses: The legal framework outlining obligations, pricing and compliance requirements.

It’s a textbook example of a government RFQ—thorough, structured and designed to ensure a fair, competitive bidding process.

If you’re looking to create your own RFQ, Visme makes it easy with a customizable RFQ template that you can adapt to fit any industry. Use our brand wizard to automatically apply your company’s fonts, colors and logo to ensure a polished, branded document.

Request For Quotation RFQ
Request For Quotation RFQ
Request For Quotation RFQ
Create your RFQ with this easy-to-edit template Edit and Download

 

What is the Difference Between RFQ and RFP?

The main difference between an RFQ (Request for Quotation) and an RFP (Request for Proposal) comes down to what information you’re asking from vendors.

Organizations typically send out an RFQ when they know exactly what they need, don’t require customization, and want straightforward pricing comparisons.

An RFP, on the other hand, is about finding the right vendor. You’re not just comparing prices to get the best deal; you're also evaluating expertise, approach and overall fit for your project.

Another prominent feature that sets RFQs and RFPs apart is the process.

Since RFQs follow a straightforward, price-driven approach, the process is typically quicker.

  • The company details the exact specifications of the product or service they’re looking for, including quantity, quality standards, delivery timelines and payment terms.
  • Vendors submit their pricing based on the provided specifications.
  • The company reviews and compares the quotes and selects the bid that fits their requirements.

The RFP process is more complex and has a longer evaluation period.

Here’s how the process typically works:

  • The company outlines the problem it needs solved or the service it requires but leaves room for vendors to propose different solutions.
  • The team develops the RFP document, which includes sections such as project background, scope of work, timeline, submission guidelines and evaluation criteria.
  • Once the RFP is finalized, it is sent to potential vendors. It may be posted on public procurement platforms, shared directly with a pre-qualified list of vendors or both.
  • The organization offers a Q&A period for vendors to ask questions or clarify details.
  • Vendors submit detailed proposals, including pricing, methodologies, experience, case studies and references.
  • The company evaluates each response using a scoring system to compare vendors based on multiple criteria.
  • For larger or more complex projects, the top candidates may be required to go through interviews, project presentations or further negotiations before a final decision is made.
  • The evaluation team selects the vendor that best aligns with the project’s goals, budget and timeline.
  • The organization negotiates the contract and project terms with the selected vendor so that all parties are aligned on expectations.
  • The organization holds a project kickoff meeting to set expectations, review the project plan and establish communication protocols.

For better understanding, here’s a side-by-side comparison table that highlights the difference between RFP vs. RFQ.

 

Feature RFQ (Request for Quotation) RFP (Request for Proposal)
Purpose Focuses on getting price quotes for specific products or services. Seeks detailed proposals on how a vendor will meet a project’s needs, including approach, timeline and pricing.
Use Case Used when requirements are clear and price is the primary decision factor. Used when the organization needs expert input on solutions, strategy and execution.
Details Requested Pricing, payment terms, delivery timelines and warranty information. Proposed methodology, experience, technical approach and cost breakdown.
Evaluation Criteria Primarily based on price and terms. Assessed based on quality, expertise, approach and cost.
Process Complexity Simple document with limited back-and-forth communication. More detailed and involves vendor presentations, negotiations and multiple evaluation rounds.
Benefits Saves time by quickly gathering price comparisons from multiple vendors. Helps organizations find the best vendor by evaluating solutions, experience and pricing holistically.
Questions Asked “What is your price per unit?” “What are your payment terms?” “How soon can you deliver?” “How will you approach this project?” “What is your experience with similar projects?” “What is your proposed timeline and budget?”
Process Issued to multiple vendors → Vendors submit price quotes → Organization selects the best option. Issued to vendors → Vendors submit detailed proposals → Organization evaluates and negotiates before selecting the best fit.

 

When to use an RFQ versus an RFP?

Choosing between an RFQ and an RFP depends on how much information you already have about your needs and what you expect from vendors.

If you know exactly what you want and are simply looking for the best price, an RFQ is the way to go. But if you need guidance on the best solution, vendor expertise or a tailored approach, an RFP is the better choice.

Use an RFQ when:

  • You have clear, detailed specifications. If you already know exactly what product or service you need—including technical details, quality standards and delivery timelines..
  • Cost is the primary factor in decision-making. When the product or service is standardized and vendors offer similar options you can compare prices and select the most cost-effective option.
  • You need a quick, straightforward procurement process. Since RFQs focus on price and predefined specifications, the evaluation process is much simpler and faster than an RFP.
  • You’re making a repeat purchase. If you’ve bought the same product or service before and are satisfied with the specifications, you can issue an RFQ to multiple vendors to get the best deal.

Use an RFP when:

  • You’re unsure of the best solution. If you don’t have a clear-cut product or service in mind, an RFP allows vendors to propose solutions that best meet your needs.
  • You need vendor expertise and strategy. An RFP is ideal when you need a vendor to bring in their knowledge, propose an approach or provide a service that requires customization.
  • You want to evaluate multiple factors beyond price. If qualifications, experience and project methodology matter as much as cost, an RFP ensures you consider all these factors.
  • The project is complex or long-term. An RFP is best for large-scale projects, such as IT system implementations, marketing campaigns or construction projects, where multiple factors influence success.
  • You need to compare different approaches. Sometimes, businesses issue an RFP not just to choose a vendor but to explore different ways of tackling a problem before finalizing their requirements.

 

Who Sends an RFP and an RFQ?

Both requests for proposals and requests for quotations are issued by organizations looking to procure goods or services, but the type of entity and the purpose behind the request can vary.

Who Sends an RFP?

The procurement team typically sends an RFP when it needs vendors to propose solutions, strategies or specialized services.

Buying committees may get involved in large businesses, government agencies, nonprofits, and educational institutions, where purchases require multiple stakeholders' approvals.

Within these organizations, multiple departments may be involved:

  • Procurement & Purchasing Department: Leads the process, defines requirements and ensures compliance with company policies.
  • Project Management Team: Defines the scope, technical needs and success criteria for the requested service or product.
  • Finance Department: Assesses budget constraints and long-term financial implications of vendor selection.
  • Legal Team: Reviews contracts, terms and compliance requirements before finalizing agreements.
  • IT or Technical Department (for software and tech-related projects): Evaluates vendor proposals for compatibility, security and integration with existing systems.

Who Sends an RFQ?

The major issuers of RFQs are procurement teams in large corporations, government and public sector organizations, manufacturers and retailers and construction and engineering firms. In these organizations, here’s how the responsibilities are typically divided:

  • Procurement & Purchasing Department: Oversees vendor outreach, price comparisons and contract negotiations.
  • Finance Department: Ensures the purchase aligns with budget constraints and cost-saving initiatives.
  • Operations or Facilities Management (for physical goods): Reviews specifications to ensure the product or service meets operational needs.

In some cases, organizations may start with an RFP to explore vendor capabilities and then issue an RFQ to the shortlisted vendors to finalize pricing.

 

RFP vs. RFQ FAQs

The key difference between an RFP (Request for Proposal) and a bid request (also known as an Invitation to Bid or ITB) comes down to complexity and evaluation criteria.

A bid request is used when the scope of work is straightforward and all vendors can deliver the same product or service. The primary deciding factor is cost and the contract is awarded to the lowest bidder. This process is common in government contracts to ensure fairness and eliminate bias.

Request for Proposal (RFP) is used for more complex projects where factors like expertise, approach and innovation matter as much as price. The selection process involves evaluating each vendor’s experience and technical capabilities, leading to a higher-quality outcome but also a longer and more detailed evaluation process.

There are four main types of Request for Quotation (RFQ), each designed for different purchasing scenarios:

  1. Open RFQ: Any qualified vendor can submit a quote, making it a highly competitive process. This is ideal when a buyer wants to cast a wide net and compare multiple options. However, since there’s no pre-selection, sorting through responses can be time-consuming.
  2. Invited RFQ: In this case, only a handpicked group of vendors receives the RFQ. This is useful when the buyer wants to work with trusted suppliers or those with a proven track record. It streamlines the process but may limit competitive pricing.
  3. Sealed RFQ: Here, vendors submit their quotes confidentially and all bids are opened simultaneously at a set time. This method is often used in government contracts to prevent favoritism and ensure a fair selection process. Since vendors don’t know what others are bidding, they must submit their best offer upfront.
  4. Reverse Auction RFQ: This is a real-time bidding process where vendors compete by lowering their prices until the deadline. It’s great for buyers looking for the lowest cost, but vendors may cut corners to stay competitive. This format is popular in high-volume purchasing where cost savings are a top priority.

An RFI (Request for Information) is an alternative when a company needs general details about vendors before requesting quotes. An RFP (Request for Proposal) is used when price isn’t the only factor and businesses need solutions, not just cost estimates.

  • RFP (Request for Proposal): Used when a business needs vendors to propose solutions for a specific project, service or problem, especially when it requires expertise beyond cost.
  • RFQ (Request for Quotation): This type of request focuses purely on pricing for a known product or service, with little to no variation in vendor offerings.
  • RFX (Request for X): The “X” stands for any type of request, such as proposals (RFP), quotations (RFQ) or information (RFI). It’s a broad term used when the exact request type depends on the procurement needs.

An RFI (Request for Information) usually comes before an RFP. Before sending out an RFP, companies often start with an RFI (Request for Information) to get a better sense of what solutions are out there and which vendors might be a good fit. Some companies also use market surveys or prequalification questionnaires to narrow down options before moving forward with an RFP.

 

Create Your RFP or RFQ Easily with Visme

At the end of the day, choosing between an RFP or an RFQ comes down to your goals and where you are in the procurement process.

If you are actively searching for a vendor or partner who brings expertise and innovation to the table, an RFP is the way to go. But if you already know what you need and just want the best deal, an RFQ keeps things simple.

That said, creating RFPs and RFQs manually can be a hassle. Visme comes loaded with hundreds of customizable templates and a dozen of features that make the process easier.

Even if you’re racing against the clock, our AI document generator helps you create polished, professional RFPs and RFQs in minutes,

Plus, Visme’s collaboration and workflow management tools make teamwork effortless. Share drafts, collect feedback and keep everything organized in one place—no endless email chains. When it’s time to send your RFP, built-in analytics let you track engagement so you can see which vendors are taking a closer look.

Ready to simplify your procurement process? Book a demo today and see how Visme can help you create and organize RFPs and RFQs effortlessly.

Written by Idorenyin Uko

Idorenyin Uko is a skilled content writer at Visme, where she leverages her expertise to create compelling and strategic content that drives brand awareness, engagement, and lead generation. With a deep understanding of content marketing, she specializes in producing high-quality materials across a diverse range of topics, including marketing strategies, design best practices, case studies, ebooks, and whitepapers.

Her work is rooted in thorough research and a deep understanding of SEO principles, ensuring that the content she creates is both engaging and optimized for search engines. She is committed to helping brands not only meet but exceed their marketing goals by delivering impactful, results-driven content solutions.

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