Letter Notifying Vendor Losing Bid

Businesses have different dealings with different companies or people when it comes to buying goods, resources, etc. for creating products or providing services to people. Vendors play an important role here. This can be a person or company providing stuff for sale.

A business may consult different vendors who then put-up bids. It is up to the business to choose the bid that is best for them. It will be according to their budget and what suits them. For the vendors whose bids are not accepted; the business should tell them that they have lost the bid. This shows their professionalism.

Send a letter to notify…

The business can send a letter notifying the vendor of losing the bid. In this letter, the business will tell the vendor that their bid has not been accepted. They will give the reasons for this. It will be a professional and formal letter that will show the vendor that you care about the effort and time they have put into contacting you and providing the bid.

The letter should be typed, and you must proofread it before sending it. It is not easy to turn down any vendor, but a business should do it in a polite way notifying them of this situation. The letter will be a professional and non-confrontational way of letting the vendor know what you have decided. You can keep the relationship amicable in this way.

It is a letter written by a manager or boss of a business informing a vendor that they have lost the bid for a certain project or contract. The letter includes the details of why the vendor has lost the bid.

When you need to write a letter notifying the vendor of losing the bid, you need to write it formally and professionally. You can keep the following points in mind:

Professional tone and structure:

The letter must have a professional tone. You should use your company letterhead for it. This should be on the top of the letter. You should add the bidding company’s name as well as address.

Thank the company and give reasons for losing the bid:

You should thank the company for the bid. State the details about the bid like its date. Complement the contractor for sending the proposal. The letter should be courteous and positive. You must reject the bid and tell the reasons for doing this. It may be due to the cost or that some other company had more experience. If there was an issue with the bid, state it.

End the letter:

End the letter by hoping to work with the vendor later. End with something like “Sincerely” and then sign the letter so that it is official.

Sample letter 1:

Subject: Notification for losing bid

Dear Mr. ABC,

I am writing this letter to thank you for your interest in giving a quote for (state services or products) to our company.

We know that much effort was put into preparing the bid, however, we regret to tell you that we have awarded the contract to another vendor. Our decision is based on (tell reasons for why you have rejected the bid).

We thank you for the time you have put in and hope to work with a prestigious vendor like yourself in the future.


Subject: Alert for losing bid

Dear Mr. ABC,

Thank you for taking out time for submitting a bid for the (name of the project) on (date when submitted). Five vendors presented a proposal, but we only choose one.

Unfortunately, after great thought, we regret to tell you that your bid has been rejected for the following reasons:

(Tell reasons for rejecting bid)

I know this news will be a disappointment for you, but we hope you will continue bidding for future contracts.


Letter Notifying Vendor Losing Bid

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