What’s an offer letter?

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An offer letter outlines the products or services a contractor can provide and their costs. Contractors respond to requests for proposals with tailored offer letters. Market rates and a reasonable delivery date are important. A well-written offer letter increases chances of success, but cost reduction is often the primary factor. Rejection doesn’t have to be the end, as a bidder may be considered for future projects.

An offer letter serves as a form of communication between a business and an independent contractor, supplier, or self-employed worker. The letter outlines the products or services that the contractor or freelancer is able to provide and what the costs of those services or products will be. Offer letters also often include a specific date or time frame for completion.

When a company wants a third party to perform certain tasks or supply specific products, it typically first clearly identifies the services or products needed. Next, the company will submit a request for proposals. Interested contractors or freelancers will then draft a letter of offer in response to the request for proposal.

When drafting offer letters, it is crucial that you understand all of the company’s requirements. A proposal tailored to the specific request typically helps increase the chances of a winning bid. The tenderer should be able to manage all aspects of the assignment and, if no deadline has been set in the RFP, the tenderer should also be able to set a realistic delivery date.

Marketing is a key part of the offer letter, sometimes referred to as an offer proposal. Ideally, the offer letter writer should be familiar with the market rates for the product or service being requested. This is important not only because overpriced offers are likely to be rejected, but also because too low an offer will produce a lower return on investment.

A simple internet search will yield many offer letter examples. In fact, some sites offer bidding templates. Templates are generic, but can be quickly customized to fit any RFP. These sites may also include professional writing software solutions that can assist with the writing process and any follow-up communications associated with the bidding process.

Of course, a well-written offer letter does not guarantee acceptance. Taking the time to research how writing an offer letter can speak to a person’s professionalism and work ethic, but in the end, money is often the primary factor. Cost reduction is usually a much more powerful motivating force for a company than a bidder’s writing style. An outstanding offer letter, with a reasonable delivery date and reasonable costs, however, should increase the bidder’s chances of landing the project.

If an offer is rejected, the rental company usually sends a response stating why the offer was rejected. Perhaps another vendor could do the job for less. Perhaps the successful bidder could deliver sooner. Either way, a rejection doesn’t have to be the end of the line. If the offer was attractive enough, the bidder may be the first person in mind the next time the business needs a similar product or service.

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