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Normally RFQ, Request for Quotations is used when the specifications are simple and you need only a price quotation as a response. Comparison of offers received is easy in this case.
RFP is request for proposal. Here your requirements are more complex and have to be properly explained and you are inviting proposed solutions from the tenderers. The proposed solutions given by all tenderers need not be the same. You will then have to select the most suitable option. In this case, price may not be the only criteria for award of the contract, the suitability of the proposed solution to the owner and the capabilities of the tenderer also may be considered. Normally, RFP is a longer document than RFQ. The Proposal is also normally longer (more detailed) than a Quotation.
RFQ is used to buy materials / services of simple specifications. RFP is used for purchase of materials/ services/ works which are very complex in terms of their specifications.
RFQ: Requesting for Quote here The bidder has to provide the Quote/Price as per the RFQ requirement
RFP: Requesting for Proposal here the bidder has to provide in detail specification for the particular bid as per the RFP requirement, it contains Technical Proposal, Business Proposal and Investment details as per the specific RFP
Difference B/W Buyers: these are investors, and they are investing to improve/grow in the specific market in front of their competitor
Sellers: Selling the specific product as per the customer requirement, and it should full fill the customer specifications to solve /resolve the specific issues
Buyers: these are investors, and they are investing to improve/grow in the specific market in front of their competitor
Sellers: Selling the specific product as per the customer requirement, and it should full fill the customer specifications to solve /resolve the specific issues
Request for Quotation (RFQ)
An RFQ is used for commodities, simple services or straightforward/uncomplicated parts with little or no room for product or service differentiation between responding vendors. Negotiation points could include: delivery schedules, packaging options, etc.
Request for Proposal (RFP)
An RFP is used for services or complex products where quality, service or the engineered final product will be different from each vendor that is responding.
Practically, we consider RFQ as is small copy of RFP but without much details; it's kind of Bill of Materials (BoM) with cost. Once customer needs more details about product/service description & features, How these products will be integrated with his business & how you provide your post-sale after deliver then we are talking about RFP.
Buyer is some one has a need such as product or service & he is welling to pay for such product.
The buyer is the company which has the solution to sell to the buyer
To arrange & control this operation we go with RFQ or RFP.
A Request for Quote (RFQ) is commonly used when you know what you want but need information on how vendors would meet your requirements and/or how much it will cost.
A Request for Proposal (RFP) is used when you know you have a problem but don’t know how you want to solve it. This is the most formal of the “Request for” processes and has strict procurement rules for content, timeline and vendor responses.
The difference between a Buyer’s market and a Seller’s market is supply and demand.
A Buyer’s market develops when there is an excess supply of real estate. The number of excess units in that particular market allows a potential Buyer to shop among anxious owner-Sellers to obtain better prices and terms.
A Seller’s market develops when there is an excess demand for real estate. There are numerous Buyers and not an adequate number of homes to be sold. This allows Sellers to demand higher prices from Buyers. Buyer’s may have incentives such as low interest rates and they may feel that prices are going to rise. This drives the Buyer to want to purchase real estate.
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