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Price inquiry: definition & important aspects for buyers
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Price inquiry in a nutshell:
A request for quotation is a formal request to potential suppliers to submit a binding offer for specific products or services. It enables the purchasing department to make a structured price comparison and forms the basis for negotiations and the final supplier selection.
Example: An automotive supplier sends a detailed request for quotation for 10,000 metal housings to three qualified suppliers with a response deadline of 14 days, whereby technical specifications, delivery conditions and desired pricing are precisely defined for a contract term of 24 months.
Contents
Price inquiry - An introduction
What is a price inquiry?
A price inquiry is a formal process in purchasing in which potential suppliers are asked to submit price offers for specific products or services. It is used to determine current market prices, make cost calculations and create a basis for further negotiations. Price inquiries are essential in order to establish comparability between suppliers and make economic decisions.
Core elements of a price inquiry
Importance of the price inquiry in purchasing
In the procurement process, the price inquiry is a key tool for obtaining transparency about market prices and supplier performance. It enables buyers to compare different offers in terms of price, quality and service. As a result, costs can be optimized, supplier relationships established and risks minimized.
Carrying out a successful price inquiry
A price request enables buyers to determine current market prices and compare offers from different suppliers. Clear requirements and conditions ensure that the quotes you receive are comparable and meet your needs.
Practical example
Situation: Your company needs 1,000 units of a special component for a new product.
Step 1: Create a detailed description of the component, including technical specifications, drawings and quality requirements.
Step 2: Define the terms of delivery: Delivery time within 4 weeks, free delivery, payment term 30 days net.
Step 3: Set a bid deadline: Suppliers should submit their bids within 7 days.
Step 4: Send the price request to selected suppliers and ask them to provide prices, delivery times and payment terms.
Step 5: After receiving the offers, compare them based on your criteria and choose the supplier with the best price-performance ratio.
Evaluation and strategic findings
✓ Critical success factors
→ Precise specification: Detailed and clear description of requirements to avoid misunderstandings and subsequent adjustments
→ Supplier selection: Careful pre-qualification of potential suppliers according to performance and industry expertise
→ Time management: Realistic deadlines for tender submission and sufficient time for internal evaluation
⚠ Challenges and limitations
→ Comparability: Different offer formats and content make direct comparison difficult
→ Market dynamics: Volatile prices and availability can quickly overtake offers
→ Quality assurance: balance between price pressure and quality requirements
Future trends:
"Digitalization is transforming the price enquiry process from a manual to an automated, data-driven process."
→ Digital RFQ platforms with automatic evaluation
→ AI-supported supplier proposals and price analyses
→ Real-time market price comparisons
→ Blockchain-based offer processes
◆ Strategic implications
→ Standardization: development of uniform templates and processes for more efficient price inquiries
→ Digitalization: investment in digital tools for process automation and data analysis
→ Supplier development: building strategic partnerships for improved collaboration
Conclusion on the price inquiry
Price inquiries are an indispensable tool in modern purchasing. They not only enable the systematic determination of market prices, but also form the basis for well-founded procurement decisions. The success of a price inquiry depends largely on precise specifications, careful supplier selection and professional time management. With increasing digitalization, price inquiries are developing into automated, data-driven processes that will further increase efficiency and transparency in the procurement process.
