Saying “no” to a business proposal can be challenging, especially when you want to maintain good relationships with suppliers and vendors. A well-crafted rejection letter helps you decline a quotation professionally while keeping doors open for future collaboration. The right words can make all the difference between burning bridges and strengthening professional connections.
Ready to handle those price quotes that don’t align with your needs or budget? These ten template letters will equip you with the perfect response for any situation, saving you time and helping you communicate clearly with your business partners.
Sample Letters for Rejecting Quotation
Before you send that rejection letter, take a moment to consider your approach. These templates offer various ways to decline quotations while maintaining professional relationships and clearly communicating your reasons.
1. Budget Constraint Rejection
Date: May 16, 2025
From: [Your Company Name] [Your Company Address] [City, State, ZIP] [Your Phone Number] [Your Email]
To: [Recipient’s Address Details]
Subject: Re: Quotation #QT-2025-0421
Dear [Supplier Name],
Thank you for submitting your detailed quotation #QT-2025-0421 dated May 5, 2025, for the office furniture supply. We genuinely appreciate the time and effort you invested in preparing this comprehensive proposal.
After careful review and consideration of our current budget allocations for this quarter, I regret to inform you that we cannot accept your quotation at this time. The proposed cost exceeds our predetermined budget for this project by approximately 15%.
We value the quality of products your company offers and would be happy to reconsider your services for future projects. Alternatively, if you could revise your quotation to align more closely with our budget constraints of $12,500, we would gladly review it again.
Please feel free to contact me at [your phone number] if you would like to discuss this matter further.
Best regards,
[Insert Sender’s Name and Position]
2. Alternative Vendor Selection Rejection
Date: May 16, 2025
From: [Company Name] [Street Address] [City, State, ZIP] [Contact Information]
To: [Please Insert Recipient’s Complete Address]
Subject: Decision Regarding Quotation #QT-78954
Dear [Vendor Representative],
I hope this message finds you well. I wanted to personally thank you for submitting your quotation #QT-78954 for our upcoming website redesign project.
After evaluating all proposals received, we have decided to proceed with another vendor whose solution more closely aligns with our specific technical requirements and project timeline.
This decision was not made lightly, and we want to assure you that your proposal demonstrated exceptional creativity and professionalism. The unique approach you suggested for our user interface was particularly impressive.
We would certainly keep your company in mind for future projects that better match your areas of expertise, and we hope to have the opportunity to work together in the coming years.
Thank you again for your participation in our vendor selection process.
Sincerely,
[Your Name and Title]
3. Project Cancellation Rejection
Date: May 16, 2025
From: [Organization Name] [Complete Address Line 1] [Complete Address Line 2] [Email Address] [Phone Number]
To: [Recipient’s Full Address Information]
Subject: Cancellation of Project and Rejection of Quotation #QT-2025-103
Dear [Service Provider],
Thank you for your quotation #QT-2025-103 dated April 28, 2025, regarding our planned office expansion project.
I regret to inform you that our management has decided to temporarily shelve this project due to unforeseen changes in our business priorities. As a result, we will not be proceeding with any of the quotations we received, including yours.
We truly appreciate the detailed proposal you put together and the competitive rates you offered. Your prompt response and professional approach throughout our initial discussions were impressive.
Should we revive this project in the future, we would certainly reach out to you for an updated quotation. We apologize for any inconvenience this cancellation may cause.
With appreciation,
[Enter Your Name and Role]
4. Quality Concerns Rejection
Date: May 16, 2025
From: [Your Business Name] [Address Line 1] [Address Line 2] [Contact Details]
To: [Add Recipient’s Address Here]
Subject: Response to Quotation #QT-2025-0789
Dear [Supplier Representative],
Thank you for submitting quotation #QT-2025-0789 for the supply of raw materials for our manufacturing division. We have carefully examined your proposal along with the product samples you provided.
Unfortunately, we find ourselves unable to accept your quotation as the quality of the sample materials does not meet our production standards. Specifically, our quality assurance team noted inconsistencies in material thickness and durability issues during stress testing.
Our manufacturing process requires materials that can withstand pressure of at least 120 PSI, while your samples showed signs of weakness at approximately 95 PSI.
We would be open to reviewing an alternative proposal if you have higher-grade materials that would meet our technical specifications. Please let me know if this is something you would be interested in pursuing.
Thank you for your understanding in this matter.
Regards,
[Your Name and Position Title]
5. Delivery Timeline Rejection
Date: May 16, 2025
From: [Company Identifier] [Full Mailing Address] [Email and Phone]
To: [Include Recipient’s Complete Address]
Subject: Regarding Quotation #QT-20250430-A
Dear [Vendor Name],
Thank you for your quotation #QT-20250430-A for the supply of custom packaging materials for our upcoming product launch.
While your pricing structure and product quality align well with our expectations, I regret that we cannot proceed with your proposal due to the delivery timeline indicated. Your estimated delivery window of 6-8 weeks falls outside our critical launch schedule, as we require all packaging materials to be delivered no later than June 15, 2025.
Our product launch has been scheduled for early July, with marketing campaigns already in motion. Any delay in receiving packaging materials would significantly impact our go-to-market strategy.
If you have any flexibility to expedite production and delivery to meet our deadline, we would gladly reconsider your quotation. Otherwise, we must decline at this time.
Thank you for your attention to this matter.
Best wishes,
[Put Your Name and Job Title]
6. Specification Mismatch Rejection
Date: May 16, 2025
From: [Your Organization] [Street Address] [City, State, ZIP] [Phone/Email]
To: [Recipient’s Address Details Here]
Subject: Quotation #QT-2025-142 – Response
Dear [Supplier Contact],
Thank you for submitting quotation #QT-2025-142 for our IT infrastructure upgrade project. We appreciate your prompt response to our request for proposal.
Upon thorough review by our technical team, we have determined that several key specifications in your proposal do not align with our system requirements. Specifically:
1. The server configuration offered provides 16GB RAM, whereas our requirements clearly stated a minimum of 32GB RAM 2. The backup solution proposed lacks the encryption standards required by our security protocols 3. The software licenses quoted are for the standard edition, but our operations require the enterprise edition features
Due to these significant discrepancies, we are unable to accept your current quotation. However, we would welcome a revised proposal that addresses these specifications if you are able to provide alternatives that meet our needs.
Our IT director, [Name], would be happy to clarify any aspects of our technical requirements should you need additional information.
Thank you for your understanding.
Cordially,
[Your Full Name and Position]
7. Polite Negotiation Rejection
Date: May 16, 2025
From: [Your Name] [Company Name] [Complete Address] [Contact Information]
To: [Place Recipient’s Address Information Here]
Subject: Re: Quotation #2025-QT-542
Dear [Service Provider],
Thank you for your quotation #2025-QT-542 dated May 10, 2025, for the annual maintenance contract of our HVAC systems.
Your proposal has been reviewed carefully, and while we appreciate the comprehensive service package you’ve outlined, we find that the pricing is significantly higher than what we had anticipated for this service agreement. Based on our market research and previous contracts, we had budgeted approximately 20% less than your quoted amount.
We value the reputation your company has in this industry and would still be interested in working with you if there’s room for negotiation. Perhaps we could discuss reducing the service frequency or adjusting the scope to bring the cost more in line with our budget constraints?
I would welcome the opportunity to discuss this further at your convenience. Please feel free to contact me directly to explore potential options.
Looking forward to your response.
Kind regards,
[Insert Your Name and Designation]
8. Terms and Conditions Rejection
Date: May 16, 2025
From: [Your Company Details] [Address Information] [Contact Numbers] [Email Address]
To: [Vendor’s Address Should Be Placed Here]
Subject: Response to Quotation #QT-0254-2025
Dear [Vendor Representative],
Thank you for submitting quotation #QT-0254-2025 for the outsourced accounting services we requested. We appreciate the detailed breakdown of services and associated costs presented in your proposal.
After careful review by both our finance department and legal team, we regret to inform you that we cannot accept your quotation due to several concerns with the terms and conditions attached. Specifically:
• The payment terms requiring 50% advance payment do not align with our company policy of net-30 payment schedules • The limited liability clause in section 4.2 presents significant risk exposure for our organization • The auto-renewal clause with a 90-day cancellation notice is too restrictive for our operational needs
We would be open to reconsidering your services if these terms could be modified to better align with our standard vendor agreements. Our procurement officer, [Name], would be happy to share our vendor agreement template if that would be helpful.
Thank you for your understanding in this matter.
With appreciation,
[Your Name and Title Here]
9. Brief Direct Rejection
Date: May 16, 2025
From: [Your Details] [Full Address] [Contact Information]
To: [Fill in Recipient’s Address]
Subject: Quotation #QT-2025-0187 – Decision
Dear [Supplier Name],
Thank you for your quotation #QT-2025-0187 dated May 2, 2025, for office supplies.
After reviewing your proposal, we regret to inform you that we will not be proceeding with your quotation at this time. While we appreciate your prompt response to our request, we have decided to go in a different direction that better suits our current needs.
We thank you for your time and effort in preparing this quotation and wish you continued success in your business endeavors.
Regards,
[Your Name] [Your Position]
10. Constructive Feedback Rejection
Date: May 16, 2025
From: [Your Full Name and Title] [Company Name] [Complete Address] [All Contact Details]
To: [Add Complete Recipient’s Address]
Subject: Feedback on Quotation #QT-2025-365
Dear [Vendor Name],
Thank you for submitting quotation #QT-2025-365 for our upcoming marketing campaign materials. We appreciate the effort you put into preparing this detailed proposal.
After careful evaluation, our marketing team has decided not to accept your quotation at this time. We wanted to provide some constructive feedback that might be helpful for future proposals:
First, the creative concepts presented, while professionally executed, did not align closely enough with our brand identity guidelines. We noticed that the color schemes and typography suggested deviated significantly from our established brand standards.
Second, the digital component of the campaign lacked the social media integration that we had specifically mentioned in our request for quotation.
We believe your company has strong capabilities, and we would welcome the opportunity to work with you in the future. Perhaps a more detailed briefing session prior to quotation submission would help align expectations better.
Thank you again for your participation in our vendor selection process.
Sincerely,
[Your Name and Position]
Wrapping Up: Rejection Letter Basics
Rejecting a quotation doesn’t have to damage business relationships when done correctly. The key is to be prompt, honest, and respectful in your communication. Always acknowledge the time and effort the vendor put into preparing their proposal, and where appropriate, provide clear reasons for your decision without being unnecessarily harsh.
If you’re open to future collaboration, make that clear in your rejection letter. Many business relationships start after initial rejections that were handled professionally. By using these templates as starting points and customizing them to your specific situation, you can maintain your professional network while making decisions that are right for your business.
Remember that timely responses are appreciated by vendors even when the answer is “no.” This professional courtesy helps suppliers move on to other opportunities without wasting resources on following up with you, creating goodwill that may benefit both parties down the road.