Three Request for Quote (RFQ) Pitfalls And How To Avoid Them

The first step before submitting any request for a quote is to identify your desired goal or end result so that you can best measure the returns on your investment. Surprisingly, many welding and fabrication companies fail to complete this step and as a result, they find themselves in one of many pitfalls that can happen when requesting a quote. In order to prepare yourself for the process and avoid one of these mistakes, review these three common pitfalls for requesting a quote.

1. Failing to Outline the Process

Just as many companies fail to identify what the desired goal of a project is, many more fail to realize the importance of outlining the steps that will be taken to get there. Having a clearly defined process will cut down on misunderstandings and mutual disappointments. In the welding and fabrication industry, this is especially important, as the skills and resources necessary to carry out a project can dramatically impact its overall cost.

2. Failing to Set Communication Standards

There is no point in taking the time to identify your goals and outline the process you will use to achieve them, if you do not clearly and explicitly communicate all of that to your vendors in your request. It is imperative that you initiate and maintain strong lines of communication with your vendors prior to your request, and throughout the entire process. Failure to do so could result in disappointing results, a great deal of frustration, strain on the relationship, and discrepancies in pricing.

This is significant for welding and fabrication companies because they rely so heavily on outside vendors to deliver them the materials they need. The whole point of a request for a quote is to gauge the cost of what you require from the marketplace. Failure to accurately communicate what your needs are will result in quotes that are inaccurate and useless to your cause.

3. Understanding What the Market Can Provide

Unfortunately, many companies are tripped up by the pitfall of not understanding or researching what that market can realistically produce before designing and preparing their request for quotes. Failure to do so can cause those submitting quotes to provide even more unrealistic pricing and work that may not be in line with the standards that you are hoping to achieve out of the products or services.

For example, if a particular project typically takes a month for the average vendor to produce but your request reflects a deadline of three days, your returns will be astronomically high and likely unrealistic. If you are not already familiar with the full scope of the work that is needed, make sure to do some research by talking to vendors and comparing their statements with what can be found online.

Understanding each of these pitfalls and the ways to avoid them will ultimately save you and your welding/fabrication company valuable resources and frustration down the line. Be wary of outsourcing projects to any company that is not competent and confident enough in the entire process. The way in which you prepare your request for a quote can ultimately be the difference between getting a great deal for goods or services or getting a terrible one. The clarity and quality of your request for production will determine the quality, price, and functionality of the results.