Reject Quotation Letter

What is a Reject Quotation Letter and Why it is Used

A Reject Quotation Letter is a formal or informal communication sent to a supplier or service provider to inform them that their quotation or price proposal has not been accepted. It is used to:

• Maintain professional relationships even when declining offers.
• Provide closure and clarity to the supplier.
• Record the decision for internal and external documentation purposes.
• Set expectations for potential future engagements.

Who Should Send a Reject Quotation Letter

• Purchasing managers or procurement officers in companies.
• Project managers or team leads responsible for vendor selection.
• Any authorized personnel who evaluated and decided on quotations.
• Companies or individuals who received quotations and have the authority to approve or reject them.

Whom Should the Reject Quotation Letter Be Addressed To

• The individual or team who submitted the quotation.
• Sales representatives or account managers of the vendor.
• Companies or organizations providing goods or services under quotation.
• In some cases, the letter can be addressed to a department rather than a single person.

When to Send a Reject Quotation Letter

• After reviewing all received quotations and selecting another vendor.
• When the offered price is higher than the budget allows.
• If the quotation does not meet technical or quality requirements.
• After an internal decision confirms the rejection.
• Before the vendor follows up for confirmation.

How to Write and Send a Reject Quotation Letter

• Begin with a clear subject line indicating the purpose.
• Address the recipient courteously.
• State the rejection clearly and professionally.
• Optionally provide a brief reason for the decision.
• Thank the supplier for their time and effort.
• End with a polite closing.
• Choose the mode of delivery (email for digital submissions, letter for formal/printed communication).
• Maintain a professional tone consistent with your relationship with the vendor.

Formatting Guidelines for Reject Quotation Letters

• Length: Keep concise; usually one paragraph to a short page.
• Tone: Professional, courteous, and respectful.
• Style: Formal for corporate letters, informal for casual suppliers or small businesses.
• Mode: Email for electronic submissions, letter for formal documentation.
• Wording: Avoid overly critical language; maintain positive phrasing when possible.
• Structure: Start with greeting, state rejection, express appreciation, and close politely.

Requirements and Prerequisites Before Sending the Letter

• Confirm that the quotation review is complete.
• Ensure the decision has been approved by relevant authorities.
• Gather details such as vendor name, quotation date, and reference numbers.
• Determine whether feedback will be provided or withheld.
• Prepare internal documentation to support the decision.

Elements and Structure of a Reject Quotation Letter

• Subject line indicating rejection.
• Greeting or salutation.
• Opening sentence acknowledging receipt of quotation.
• Statement of rejection.
• Optional brief explanation of reasons.
• Expression of gratitude for effort or interest.
• Closing with signature and designation.
• Optional attachments (if referring to evaluation sheets or prior communications).

After Sending a Reject Quotation Letter: Follow-up Actions

• Confirm delivery if sent by email or postal service.
• File a copy in procurement or project records.
• Be prepared to answer follow-up queries from vendors politely.
• Maintain the relationship for potential future opportunities.
• Monitor vendor responses to ensure no misunderstandings occur.

Common Mistakes to Avoid When Writing a Reject Quotation Letter

• Using harsh or negative language.
• Omitting gratitude for the vendor's effort.
• Sending the letter before final approval.
• Forgetting to include essential details like quotation reference or date.
• Not confirming receipt of the rejection letter.
• Being too vague, which can confuse the vendor.

Tips and Best Practices for Writing Rejection Letters

• Keep it concise but polite.
• Personalize the letter for each vendor.
• Use clear subject lines such as "Quotation Rejection for [Project/Service]".
• Avoid detailed criticism unless feedback is requested.
• Maintain a professional tone for future collaborations.
• Send the letter promptly after the decision is made.

FAQ About Reject Quotation Letters

Q: Should I explain why the quotation was rejected?
A: It's optional; a brief reason can help maintain good relationships, but detailed feedback is not always necessary.

Q: Can I send the rejection verbally instead of a letter?
A: Written communication is preferred for documentation and clarity.

Q: Is it acceptable to reject a quotation informally via email?
A: Yes, especially for small vendors or casual relationships, but always maintain politeness.

Q: Do I need to wait for all quotations before sending a rejection?
A: Ideally yes, to ensure a fair comparison and decision.