Ask suppliers the right way with a request for proposal

Most small businesses are on the receiving end of proposals, but sooner or later you need to buy something that matters: a website, accounting software, a new delivery partner, an event, a refurbishment. If you ask three suppliers "how much for a website?", you will get three prices that cannot be compared, because each is for something different.

A request for proposal, or RFP, fixes that. It tells every supplier the same thing about what you need and asks them to answer in the same way. The result is offers you can put side by side and a decision you can explain. It does not have to be long or formal.

Quote or proposal?

Choose the right kind of request.

• A request for quote fits when the product is known: ten chairs of this model, a print run of this size. You want prices, delivery and terms.
• A request for proposal fits when you describe a problem and want the supplier to propose a solution: "we need to take online bookings and reduce no shows". You want ideas and approach as well as cost.

For simple things, a short email is enough. Our request for quote email template shows what to include. For bigger or less clear needs, the request for proposal template gives you the structure used below.

Be clear about what you need

Before writing, talk to the people who will use the result. Write down:

1. The problem or goal. What are you trying to achieve, and why now?
2. The scope. What must be delivered, and what is out of scope?
3. Must haves and nice to haves. Separate them. If everything is a must, nothing can be compared.
4. Constraints. Budget range, deadline, systems it must work with, legal or security requirements.
5. How success will be judged. Results you can see after the work.

If you do not know your budget, say it is open, but be aware that suppliers will otherwise guess, and the offers will be very different. Giving a range is often better: it helps good suppliers propose the right solution.

Write a short RFP

One to three pages is usually enough. Include:

• About you. Who you are, in a paragraph.
• The need. Goal, scope, must haves, constraints.
• What to include in the response. The questions you want answered, in the order you want.
• Process and dates. When questions close, when answers are due, when you will decide and when the work should start.
• How you will choose. The criteria and their weight.
• Contact. One person for questions.
• Terms. Confidentiality, how long offers must stay valid, that you are not bound to choose any.

Keep the language plain. Complicated documents get fewer good responses.

Ask the same questions of everyone

For comparison, structure the response. Ask each supplier to give:

1. A short summary of how they would solve the problem.
2. The work plan and timeline, with milestones.
3. The team who will do it, with their relevant experience.
4. Two or three similar past projects and references you may contact.
5. The price, broken down into parts, with what is included and what is extra, and the payment schedule.
6. Assumptions and risks.
7. Support after delivery.
8. Anything you ask for security, data handling or legal status.

Ask them to keep to a page limit. You will thank yourself later.

Be fair, and be seen to be fair

Send the same information to everyone at the same time. If a supplier asks a question whose answer would help others, share the answer with all, without naming who asked. Give enough time to respond, a week or two for a small request. Do not use one supplier's ideas to bargain with another, and do not ask for free design work that you do not intend to pay for.

If you already prefer one supplier, say so honestly and consider whether an RFP is a fair process or a waste of other people's time.

Choose with criteria

Before reading any response, decide how you will score. A simple set of criteria, each with a weight:

Each person on the panel scores each response, then you compare and talk. Look at total cost, not only the headline price: extras, support and what happens in year two. Call references and ask what went wrong and how the supplier handled it.

Put the scores in a Sheet, where the weights and totals are calculated for you, and keep the record. If a cheaper offer is not chosen, you can show why.

Negotiate and decide

Go back to your top one or two with specific questions and a request for a final offer. Check the details that matter: what is included, how change requests are handled, who does the work and what happens if it goes wrong. Then tell all suppliers the outcome, politely, and offer to give brief feedback to those who ask.

Put it in writing

The winning proposal is not yet a contract. Turn it into one: a statement of work or agreement with scope, price, timeline and terms. A purchase order is useful for goods. Do not start the work, or pay a deposit, until the terms are agreed in writing.

Common mistakes

• Vague needs. You get vague offers.
• Too many suppliers. Quality of evaluation falls.
• Price only. The cheapest offer may be missing half the work.
• No criteria. The choice follows the best presentation, or the best friend.
• No reference calls. They are the cheapest due diligence.

Where nerix helps

In the chat, tell nerix what you need and the constraints, and it drafts a first RFP that you edit. Paste suppliers' responses, or upload them, and ask for a side by side comparison of price, scope and assumptions, or for the points where an offer is silent. Answers show the page they came from, so you can check each claim. Scores and totals can be worked out in the Sheet.

nerix does not know your priorities or the supplier's reputation, and it can misread a table. Check the numbers, and make the decision yourself.

The short version

Choose between a quote and a proposal. Describe the goal, scope, must haves and constraints. Ask everyone the same questions and treat them fairly. Score against criteria decided in advance, call references, and turn the winner into a written agreement.