What is a BAFO

Best and final offer (BAFO) is a sales technique, usually forming part of a request for proposal (RFP) process, whereby the buyer invites their ideal vendors to submit their final proposal on the most favorable possible terms rather than negotiating with each bidder individually.

BAFO in sales is usually initiated to speed up the procurement process and encourage vendors to fight amongst each other to secure the buyer’s business. The caveat here is of course that this can backfire in some cases and scare away potential vendors who would have otherwise been an ideal match for the buyer.

Businesses will often submit a BAFO in response to a Request for Proposal (RFP), as this prolonged sales process can involve multiple rounds of negotiation.