What started as a challenge to make price negotiations more efficient has evolved into one of the most transformative features. Roobykon Software's implementation of the RFQ and Price Negotiation system marks a new chapter in how marketplace participants engage in pricing discussions.
Feature requirements
The Request For Quote and Price Negotiation feature was designed to meet the following core requirements:
- Quote requests: Users can request quotes for listings that do not have fixed prices.
- Flexible quote management: Providers can respond with custom quotes, and have the ability to edit their offers if needed.
- Payment after acceptance: Once a user accepts a quote, they can proceed with payment directly on the platform.
This feature enhances marketplace dynamics by allowing negotiation on pricing, improving both user engagement and provider satisfaction.
Implementation overview
The RFQ and Price Negotiation feature is designed to offer a structured, step-by-step process:
1. User requests a quote
- For listings without exact prices, users can submit a request to obtain a custom quote from the provider.
- Interface: Users access a “Request to book” button on applicable listings, as shown in the initial mockup.
2. Provider responds with a quote
- Once the provider receives the RFQ, they respond with a custom price for the listing.
- Process:
- Step 1: Provider receives the quote request and reviews the listing and user information.
- Step 2: Provider sends a custom quote based on the requirements.
- Step 3: The quote is delivered to the user for review.
3. Price negotiating via messaging
- If the user is not satisfied with the quote, they can communicate with the provider through an integrated messaging system to discuss terms further.
- Providers can adjust quotes based on feedback, creating a dynamic negotiation environment.
4. Quote acceptance and payment
- Once the user agrees to a quote, they have the option to accept it and proceed to payment.
- This streamlined payment integration ensures a seamless transition from negotiation to transaction, improving both the user and provider experience.
Benefits of custom pricing for marketplaces
Custom pricing is a real game-changer for online marketplaces, granting the flexibility that enhances user experience and provider satisfaction. By incorporating price negotiation strategies and features like Request for Quotation (RFQ) functionality, marketplaces can evolve beyond rigid pricing models to meet a wide range of needs. Understanding the RFQ marketplace meaning and implementing options to create RFQ allow users to request quotes tailored to unique specifications or services that vary in scope. This approach is particularly valuable in sectors like equipment rentals, professional services, and custom goods, where fixed pricing often falls short.
For providers, custom pricing means the ability to adjust quotes in real-time, depending on market conditions, demand, and specific user needs. It also enables the best way to start price negotiations, encouraging engagement by allowing providers to shape offerings that attract clients effectively. By offering flexible pricing, marketplaces create a user-centric ecosystem where negotiation is allowed and even encouraged to build trust and enhance the reputation of the platform as flexible and customer-friendly.
Finally, custom pricing results in more revenue on the whole, since a broader spectrum of listings and transactions is facilitated. To put it differently, the marketplaces attract a more varied provider and customer base, increasing their user base and enhancing competitiveness in their industry.
Сhallenges in developing RFQ functionality
When we first approached this project, we quickly realized we weren't dealing with simple product listings. Each piece of equipment could have countless configurations, and pricing wasn't just about the base model. Because, in a B2B environment, pricing can rarely be straightforward - our clients work with complex products, from specialized machinery to high-end technology, in which every deal may have significantly different pricing based on requirements, add-ons, and usage terms. This dynamic highlights the importance of a flexible request for quotation process that adapts quotes in real-time based on the client’s specific needs. It stands in stark contrast to consumer-focused marketplaces, where prices are typically fixed or predictable.
Equally important was the development of a system that would comprehend the inherent intricacies of each transaction. Every piece of equipment can come in custom configurations, optional add-ons, and custom usage requirements, all of which impact the bottom-line cost. Consequently, this means that pre-listing price predictions are very rarely possible; instead, the functionality to enable adaptive pricing. Large buyers also expect competitive pricing and often would want to negotiate directly with the seller for the best possible deal. This underscores the importance of understanding how to create a request for quotation that facilitates dynamic pricing and customization.
From a technical point of view, we had to create a smooth user journey. The RFQ workflow should grant the ability for an easy request from a big client for pricing on specific configurations and vice versa, allowing the seller to provide a quote that is customized, considering all the unique requirements. We also had to build messaging capabilities to enable back-and-forth bargaining, keeping the entire conversation and price adjustments within the platform.
Furthermore, the scale of the marketplace meant we had to take scalability into consideration. A large marketplace with a wide range of products, client needs, and pricing requirements - the RFQ system needs to remain efficient even while the number of transactions and users increases. Each one of these customizations to price and every negotiated deal required robust backend support to manage a high volume of quotes without performance or user experience degradation.
Conclusion
While the price negotiation feature improves the user-provider interaction, it also extends the use of flexibility within marketplace platforms, whereby providers can deliver custom pricing and users can negotiate terms to suit their needs. Such customization will result in increased user participation and satisfaction, reinforcing the marketplace's reputation as a user-centric platform.
