Rejecting a business proposal by email is common in the professional world. As an organization, it’s normal to receive business proposals now and then, and upon weighing the pros and cons, you decide which proposal would be best suited for the project at hand.
An email declining a proposal is written to express disappointment that a company didn’t meet the criteria or the necessary guidelines to be awarded a project or business deal.
Writing a proper email to decline a proposal requires several things. From the right tone, words, format and several other things that will be exhausted in this article.
How to Decline a Business Proposal by Email
When writing an email declining a proposal, it should be written politely. Your aim should be to politely decline the business proposal and not to humiliate the recipient.
- Include the name of the person rejecting the business proposal
This is standard practice when writing an email to decline a business proposal (or any email for that matter). It doesn’t have to be the person rejecting the business proposal, it could be the name of the organization as well.
- Include the date the proposal was received and the day it was rejected
This doesn’t have to be in the same email. Before writing an email to reject a business proposal, an email acknowledging the proposal should be sent beforehand.
So, when writing an email to reject a business proposal, you don’t have to include specific dates.
NB: When writing an email to acknowledge a business proposal, you should make sure it’s written as “expressionless” as possible. This means an email acknowledging a business proposal shouldn’t give the recipient the notion that their proposal is going to be met with a favourable response.
- The reason the proposal was rejected
This is extremely important when writing an email to decline a business proposal. This is because it helps the company do better. You don’t have to go deep into detail when writing this part of the email. A simple:
“Unfortunately, we’re going to decline your proposal as we’re not looking to remodel our company yet. “
Is enough to convey your thoughts when writing this part of the email.
- The things that can be improved upon to make the proposal better
This is optional when writing an email to reject a business proposal. If there’s something wrong with a proposal that made your company reject it, you should state this in the email. It could be anything from the time frame, the quotations, the design, the budget, etc.
Reasons for declining business proposals are unique to different businesses and different proposals.
If you’re declining a proposal but would be open to continue negotiating the terms of the proposal, including the reasons the proposal was rejected and how they could improve on it would help explain your intentions.
Providing the recipient with this information will aid them in preparing better proposals in the future.
- Your company’s contact information
Your contact information should be in the email declining a business. This is to make it easier for the recipient to reach you if there’s anything they would like to discuss further or any questions or inquiries concerning your decision to reject the proposal.
- Appreciate their efforts and show a willingness to work with them in the future
When declining a business proposal by email, it should always end with a note of thanks. As you decline the proposal, you should show optimism towards working with them in the future if the terms and conditions are agreeable.
Reasons for Declining a Business Proposal
Reasons for rejecting business proposals are unique to the business and the proposal. Regardless, there are some general reasons why a proposal would be declined. Some of these include:
- Regardless of how good a proposal is, if it doesn’t meet certain criteria, it won’t be accepted. For a business proposal to be accepted, it has to meet the demands of the project, this includes the budget, the timeframe and other determining factors.
- You don’t need the services they’re offering. Regardless of how good a proposal is, if you don’t need the services, you decline the proposal.
- You don’t have the budget for it. If the budget in the proposal exceeds the proposed budget for the project, the proposal would be declined.
- It simply didn’t make the cut. When proposals are submitted for a business, a manager has to go through several proposals to decide which best fits the project at hand, and the best fit is selected while other proposals are rejected.
- A proposal can also be rejected if it doesn’t match the purpose of the project. If the proposal lacks parts that are crucial to the project, it will be rejected.
- A proposal can also be declined if there are aspects that need to be improved upon. In this case, the proposal hasn’t been outrightly declined. This means there’s still a chance it can be worked on and if it passes the required criteria, the proposal could be accepted.
An email rejecting a business proposal should be written in a way that helps the recipient write better proposals in the future. It should point out things they can improve on for other proposals.
Sample One to Reject a Business Proposal by Email
Dear Sir, Thank you for showing interest in working with us on remodelling our new office blocks. Regrettably, your proposal didn’t make the cut and was rejected. Considering the budget and scope of the project, your proposal does not meet the requirements for this project. We wish you the best and we hope to work with you in the future. If you’d like to contact us please reach us on 123-456-7890 or email us at [email protected] Thank you for your interest in working with us. Regards, Simon Momoa
Sample Two to Reject a Business Proposal by Email
Hello Ms Faith This email is a response to the business proposal you sent on the 4th of May, 2021. Thank you for offering to work with us on this project. Unfortunately, your proposal was not successful. The reason behind this is that your proposal was 25% above our intended budget. As such, we had to go with another company on this project. We’re open to looking at other proposals from you for other projects. If you need further information on this project, call us on 123-456-7890 or email at [email protected] Thank you again for your interest in working with us. Sincerely, Jose Antonio
Sample Three to Reject a Business Proposal by Email
Dear Wilson, Thank you for honouring our meeting to present your proposal to renovate our offices. It was a very detailed proposal and a well-executed proposal. Regrettably, we will not be moving forward with your proposal. We've decided to go with a company that was 20% cheaper and had access to equipment at a significantly lower cost. This is a bi-annual project, so feel free to send in a proposal for future projects. Thank you again for your enthusiasm to work with us. We wish you the best in your endeavours. Sincerely, Jim Crow
Sample Four to Reject a Business Proposal by Email
Dear Ms Anna Thank you very much for your interest in working with us. We found your proposal interesting, organized and very well presented. However, we're going to have to decline your proposal at this point in time. The reason behind this that we have already contracted this service to another company. We'll be sure to contact you if any opportunity presents itself. Thank you again for your interest in working with us we wish you success in your future endeavours. Sincerely, Jason Todd
Sample Five to Reject a Business Proposal by Email
Dear Samuel, Thank you very much for your interest in working with us. Your proposal to supply us with tables and chairs for our new offices has been received. We must commend you on the effort and work put into the proposal. It was very well done and covered everything we need for our new offices. Unfortunately, we're going to have to decline your proposal. This is because we're already in a contract with another company to provide the furnishing for our new offices. We open new branches yearly, so, feel free to send us a new proposal for future projects. Thank you again for your interest in working with us. For further inquiries, you can reach us on 123-456-7890 or email us at [email protected] Sincerely, Jim Blessed
Writing an email to reject a proposal is unique to each business and each proposal. However, whatever reason you choose for declining a business proposal should be in the email you send to the recipient. This way, they can better optimize their proposals for the future. If you’re unable to disclose the reason for declining the proposal, also state this in your email.
“We’re going to have to decline your proposal.” Should suffice.
There are samples in this article that cover reasons for declining a business proposal for different reasons.