Common RFQ Mistakes That Inflate Your Quotes (and How to Avoid Them)

A request for quotation (RFQ) should help you get clear, comparable supplier pricing. In practice, many RFQs do the opposite: they introduce uncertainty, force suppliers to make assumptions and create extra admin work. When that happens, suppliers often protect themselves by pricing in risk, adding buffers or declining to quote altogether.

Quick answer

Common RFQ mistakes inflate quotes when suppliers do not have enough clarity to price accurately, or when your process makes the job harder than it needs to be. Vague specifications, missing delivery details, unclear quantities, unrealistic timelines and inconsistent bid formats all increase supplier effort and risk. To avoid this, write RFQs that are specific, standardised and easy to respond to, with clear commercial terms and a realistic timeline.

Why weak RFQs often lead to higher prices

Suppliers do not only price the product or service itself. They also price:

• uncertainty
• operational complexity
• delivery risk
• compliance requirements
• payment timing
• internal effort needed to prepare the quote

If your RFQ leaves gaps, a supplier has to guess. If your process creates friction, a supplier has to spend more time clarifying, reworking and chasing information. Both situations can push the final quote higher.

In Malaysia, this can be especially relevant when procurement teams are managing multiple branches, different delivery locations, SST treatment, internal approval rules or documentation needs for finance and audit. A quote that looks expensive is sometimes just a supplier trying to cover ambiguity.

The most common RFQ mistakes that inflate your quotes

1. Vague item specifications

One of the most common problems is asking for prices without giving enough detail about what you actually need.

Examples include:

• requesting "A4 paper" without paper weight, brightness or brand acceptance criteria
• requesting "industrial gloves" without material, size range, compliance needs or intended use
• requesting "cleaning chemicals" without pack size, dilution requirement or application area
• requesting "office chairs" without dimensions, upholstery type, load expectations or warranty preference

When specifications are vague, suppliers may:

• quote a higher-grade option to stay safe
• include contingency in case your expectations are stricter than stated
• submit non-comparable alternatives
• spend time clarifying before quoting

How to avoid it

Use a line-by-line specification format that includes:

• item description
• required brand or approved equivalent, if relevant
• model or reference code, if known
• size, colour, material or technical requirements
• unit of measure
• pack size
• compliance or safety requirements
• acceptable substitutions

If you are open to alternatives, say so clearly. If you are not, say that too.

2. Missing quantity assumptions

An RFQ without clear quantities is hard to price well. Suppliers often give better pricing when volume is predictable, while unclear demand can lead to conservative quotes.

Common issues include:

• asking for a quote without stating expected order volume
• mixing one-off and recurring demand in the same request
• using rough estimates without stating whether they are estimates
• failing to distinguish trial quantity from annual usage

A supplier pricing for a one-time purchase may quote differently from one pricing for a scheduled monthly requirement.

How to avoid it

State quantities as clearly as possible:

• requested quote quantity

n- estimated monthly usage

• estimated annual volume
• whether quantities are firm or indicative
• whether pricing should be based on bulk call-off, staggered delivery or ad hoc orders

This helps suppliers choose the right pricing basis and reduces the need for hidden buffers.

A simple comparison: weak RFQ vs strong RFQ

RFQ elementWeak RFQStrong RFQItem descriptionGeneric item name onlyDetailed specification with unit, pack size and acceptable equivalentQuantity"Need pricing"Quote for stated quantity plus estimated monthly or annual demandDeliveryNo location or scheduleFull delivery addresses, site constraints and required lead timeCommercial termsNot statedClear payment terms, SST treatment and validity period requestedResponse formatFree-form emailStandard quote template for easier comparisonTimelineUrgent, unclear deadlineRealistic submission date and clarification window

3. Incomplete delivery and site information

Delivery details have a direct impact on price. Yet many RFQs say very little beyond "deliver to office" or "delivery required".

Suppliers may need to know:

• exact delivery location
• whether there are multiple sites
• floor level and lift access
• receiving hours
• loading bay restrictions
• site induction or permit needs
• whether unloading is required
• whether installation, assembly or placement is included

If these details are missing, suppliers may assume a more difficult delivery scenario and price accordingly.

How to avoid it

For each location, include:

• site address
• contact person or receiving function
• delivery window
• access restrictions
• whether partial delivery is acceptable
• whether urgent replenishment may be needed
• whether delivery charges should be broken out separately or included

For branch-based businesses, it is often worth attaching a site list rather than describing locations in the email body.

4. Unclear scope between goods, services and extras

Some RFQs look simple until suppliers realise they are also expected to include extra work that was never explicitly listed.

For example, a request for equipment may actually involve:

• delivery
• unloading
• installation
• testing
• user briefing
• disposal of old units
• post-delivery support

If the RFQ does not separate these scope elements, suppliers may either exclude them and create future disputes, or include broad allowances that make the quote look expensive.

How to avoid it

Break scope into clear components:

1. Base goods or services
2. Mandatory add-ons
3. Optional items
4. Exclusions
5. After-sales support requirements

This gives you more transparent pricing and makes quote comparison much easier.

5. Sending suppliers different information

A common but costly mistake is giving different suppliers slightly different instructions through separate email threads or calls. Even small differences can make quotes impossible to compare fairly.

This often happens when:

• one supplier gets an updated specification but others do not
• delivery details are clarified privately
• one supplier is told alternatives are acceptable while another is not
• revised quantities are shared informally

The result is not only pricing inconsistency but also a weaker sourcing process.

How to avoid it

Use a controlled RFQ process:

• send the same RFQ pack to all invited suppliers
• log all supplier questions
• issue clarifications to all participants at the same time
• version-control attachments
• set a cut-off date for questions

If a change is important enough to tell one supplier, it is important enough to tell all.

6. Unrealistic response deadlines

An urgent RFQ can sometimes be necessary. But consistently giving suppliers too little time can push prices up.

When suppliers are rushed, they may:

• use conservative pricing instead of validating costs properly
• decline to quote
• submit incomplete responses
• prioritise speed over accuracy

This is especially true for non-standard items, imported products, site-based services or requests that need internal approvals.

How to avoid it

Match your timeline to the complexity of the purchase. A practical RFQ timeline usually includes:

• issue date
• clarification window
• final submission deadline
• expected award or decision date
• target delivery or start date

This helps suppliers plan their response and reduces rushed assumptions.

7. No standard quote template

If every supplier responds in a different format, quote comparison becomes slow and unreliable. One supplier may bundle delivery, another may separate it, and another may omit important commercial details entirely.

That makes it harder to identify the true lowest-cost or best-fit option.

How to avoid it

Provide a quote template that asks for the same details from every supplier, such as:

• unit price
• total price
• SST status and treatment
• lead time
• delivery charges
• payment terms
• quote validity
• warranty, if relevant
• origin or brand details, if relevant
• deviations from specification

A standard response format improves apples-to-apples comparison and reduces follow-up work.

8. Ignoring commercial terms until late in the process

A quote that looks cheaper upfront may become less attractive once payment terms, delivery charges, minimum order quantities or validity periods are understood. If your RFQ does not request these details clearly, suppliers may fill in the gaps in ways that do not suit your business.

Important commercial points may include:

• payment terms
• credit requirement
• minimum order quantity
• quote validity period
• cancellation terms
• replacement policy for damaged goods
• warranty support
• SST inclusion or exclusion

In a Malaysian business setting, getting SST treatment wrong can also create confusion for finance and invoice matching.

How to avoid it

Include a commercial section in every RFQ and ask suppliers to confirm:

• whether pricing is inclusive or exclusive of SST
• payment terms offered
• delivery charges and conditions
• lead time from purchase order
• quote validity period
• any minimum order threshold

9. Over-specifying where standardisation is not needed

Not every RFQ needs highly restrictive specifications. Sometimes buyers unintentionally narrow the market by insisting on unnecessary details that do not affect business outcomes.

This can reduce competition and raise prices.

Examples include:

• requiring a very specific brand with no functional justification
• setting non-essential packaging requirements
• mandating minor features that do not affect use
• adding approval steps for low-risk commodity items

How to avoid it

Focus on what truly matters:

• performance requirement
• compatibility requirement
• safety or compliance need
• durability expectation
• user requirement

If equivalent products are acceptable, say so. This gives suppliers room to propose cost-effective options while still meeting your operational need.

10. Under-specifying risk and compliance requirements

The opposite problem also happens: buyers omit compliance or documentation requirements until after the quote is submitted. This can lead to re-pricing, delays or rejected suppliers.

Depending on the category, suppliers may need to know whether you require:

• specific certifications
• safety data sheets
• product testing records
• insurance coverage
• MOF registration
• tax documentation
• bank and company details for onboarding

If these are surfaced late, suppliers may need to revise pricing or withdraw.

How to avoid it

State mandatory compliance and onboarding requirements early in the RFQ. Separate them into:

• must-have requirements
• preferred requirements
• post-award documentation

This avoids wasting time on quotes from suppliers who cannot meet your baseline requirements.

11. Treating every RFQ as a one-off event

If you repeatedly buy the same categories but recreate the RFQ from scratch each time, errors and omissions are more likely. You also lose the chance to standardise what good looks like.

How to avoid it

Build RFQ templates by category, such as:

• office supplies
• MRO items
• pantry and janitorial products
• IT accessories
• facility services

Each template can include standard specifications, commercial terms, evaluation criteria and delivery questions. This saves time and improves consistency across the team.

A practical RFQ checklist before you send

Use this quick pre-send checklist:

• Are item specifications complete enough for accurate pricing?
• Are quantities clear, with monthly or annual estimates where relevant?
• Are delivery locations and access conditions stated?
• Have you separated base scope, optional items and exclusions?
• Are all suppliers receiving the same information?
• Is the deadline realistic for the category?
• Have you provided a standard response template?
• Are payment terms, SST treatment and lead time requested?
• Have compliance requirements been listed upfront?
• Do internal stakeholders agree on the requirement before the RFQ goes out?

How to structure an RFQ that gets sharper quotes

A strong RFQ does not need to be complicated. It needs to be complete and easy to answer.

Recommended RFQ structure

1. Overview

Brief description of what you are sourcing and the intended award timeline.

1. Item or scope details

Full specifications, units, quantities and acceptable alternatives.

1. Delivery requirements

Site addresses, schedule, access constraints and service expectations.

1. Commercial terms requested

Pricing basis, SST treatment, payment terms, validity and lead time.

1. Compliance requirements

Required documents, registrations or supporting information.

1. Response template

A standard format for suppliers to complete.

1. Process timeline

Clarification deadline, submission deadline and award date.

What procurement teams should align internally first

Many RFQ problems start before the supplier ever sees the request. Internal misalignment often leads to vague, rushed or contradictory requirements.

Before issuing an RFQ, confirm:

• who the end user is
• what problem the purchase is solving
• whether the specification is essential or just habitual
• who approves technical requirements
• whether finance has confirmed budget and payment expectations
• whether receiving sites can actually support the requested delivery plan

A cleaner internal brief usually leads to a cleaner supplier quote.

Better RFQs do more than reduce price

Avoiding RFQ mistakes is not just about getting a cheaper number. Better RFQs also help you:

• compare suppliers more fairly
• reduce clarification cycles
• shorten sourcing time
• improve invoice matching later
• reduce disputes on scope and delivery
• create better audit trails

In other words, a well-written RFQ lowers the total cost of buying, not just the quoted price.

Final takeaway

If your RFQs are vague, inconsistent or rushed, suppliers will usually respond by protecting themselves on price. The fix is rarely aggressive negotiation. It is better information.

Clear specifications, realistic quantities, complete delivery details, standard response formats and early visibility of commercial terms can materially improve the quality of quotes you receive. For teams that run frequent indirect procurement or multi-site buying, standardising the RFQ process is often one of the simplest ways to reduce unnecessary cost.

If your team is trying to make recurring procurement more structured, it helps to work with platforms and suppliers that support consistent sourcing processes. In Malaysia, that may include using an MOF-registered procurement platform with broad supplier access, standardised purchasing workflows and delivery coverage across Peninsular Malaysia, such as Lapasar.