What is RFP / RFQ (Request for Proposal / Quotation)?

The distinction between an RFP and an RFQ lies in what you already know. For an RFQ, the requirement is fully defined: you know exactly what you want and need only a price. Suppliers quote without proposing anything — they name their rate for the defined specification.

An RFP applies when the need is clear but the solution is open. You know you need a new booking system, or an outsourced cleaning service, but you want suppliers to propose how they would approach it, what their methodology is, and what experience they bring. You evaluate on price but also on capability, references, and fit.

The value of both approaches is the structured comparison they create. By sending the same specification or brief to multiple suppliers simultaneously, you can place competing offers side by side and compare them on a like-for-like basis. This prevents the common mistake of evaluating proposals sequentially — where the most recently seen offer tends to anchor the decision — and removes the risk of defaulting to the most familiar name without knowing whether they remain competitive.

For SMBs, a formal RFP or RFQ does not need to be a lengthy exercise. A three-page brief sent to three suppliers, with a clear deadline, a defined evaluation criterion, and a consistent format for responses, delivers actionable market information. For any contract above approximately £10,000 per year, the time invested is almost always recovered through better pricing or terms.

Most SMBs renew with familiar suppliers not because they are the best option, but because the effort required to find something better feels too time-consuming. A structured RFP or RFQ process — even a simple one — breaks that habit and replaces loyalty with informed choice.

The return is rarely trivial. A single RFP process on a significant cleaning or catering contract can produce pricing or terms materially better than an automatic renewal would have delivered. Run at the right moment — triggered by a contract approaching expiry — an RFP converts a default outcome into a deliberate decision.