what is an rfp in sales

An RFP (Request for Proposal) is a document that an organization posts to elicit a response from potential vendors for a desired product or service. In sales, an RFP is often created when a business is looking to purchase a product or service to suit its needs. An RFP specifies what the customer is looking for and describes each evaluation criterion on which a vendors proposal will be assessed. It can also give vendors a sneak peek into different strategies they may not have considered since each vendor will include their own unique action plan along with their bid. An RFP generally includes background on the issuing organization and its lines of business, a set of specifications that describe the sought-after solution, and evaluation criteria that disclose how proposals will be graded. Organizations may release an RFP to boost competition to drive down the cost of a solution. The skill with which a customer creates an RFP can dictate the quality of a bidders response and, therefore, success or failure of the resulting solution.