Satex s.P.A.

Via di Pietra Papa, 00146 Roma Telefono: Roma 769910 Telefax: (06) 681 5473 Telex: 285136

Mr L. Crane, Chief Buyer vs.rif._: Order DE4316

F. Lynch & Co. Ltd. Ns.rif.: D/1141

Nesson House

Newell Street 29 March 19—

Birmingham B3 3EL

UNITED KINGDOM

Dear Mr Crane,

We would like to advise you that your order has been shipped on the SS Marconissa and should reach you within the next ten days. Meanwhile our bank has forwarded the relevant documents and sight draft for £1,662.60 to the Northminster Bank (City Branch) Birmingham

We are sure you will be pleased with the consignment and look forward to your next order.

Yours sincerely,

D. Causio

Refusing an order

There are a number of reasons for a firm refusing an order, and some of the most common are given below. Whatever your reason, you must be polite: the words reject and refuse have a negative tone to them, therefore it is better to use decline or turn down instead.

Out of stock

You may be out of stock of the product ordered, or indeed you may no longer make it. Note that, in either case, you have an opportunity to sell an alternative product, but remember not to criticize the product you can no longer supply.

• We are sorry to say that we are completely out of stock of this item and it will be at least six weeks before we get our next delivery, but please contact us then.

• We no longer manufacture this product as demand over the past few years has declined.

• Thank you for your order for heavy–duty industrial overalls. Unfortunately we have run out of the strengthened denim style you asked for. As you have particularly requested only this material, we will not offer a substitute, but hope we will get delivery of a new consignment within the next two months. We hope you will contact us then.

• We received your order for ACN dynamos today, but regret that due to a strike at the ACN factory we are unable to fulfill the order, and we realize that other models will not suit your requirements. Hopefully the dispute will be settled soon so that we will be able to supply you. You can rely on us to keep you informed of the developments.

Bad reputation

The customer may have a bad reputation for settling their accounts or, in the case of a retailer of, say, electrical or mechanical products, may have offered a poor after–sales service which could in turn affect your reputation. In these cases, it is better to indicate terms on which you would be prepared to accept his order, or, as in the last three examples, find a diplomatic way of saying 'no'.

• We only supply on payment against pro–forma invoice (on a cash basis).

• As there is heavy demand we have very few of these products in stock, and are serving on a rota basis. It seems unlikely that we could deliver within the next four months.

• As our plant is closing for the summer vacation we would not be able to process your order for the date you have given. Therefore, regretfully we have to decline it.

• I am sorry to say that we must turn down your order as we have full order books at present and cannot give a definite date for delivery.

Unfavourable terms

The supplier may not like the terms the customer has asked for:

• Delivery could not possibly be promised within the time given in your letter.

• Two months must be allowed for delivery, as we ourselves have to get raw materials and rely on our own suppliers.

Gentlemen:

This is to inform you that we are unable to make delivery on the above referenced purchase order on the date indicated.

We should have our merchandise ready to ship within 10 days of the original delivery date and we hope that you can hold off until that time.

We did want to inform you of this delay as soon we were advised in order to give you as much time as possible to make alternate arrangements, if necessary. We can assure you, however, that if your order remains in force we will expedite delivery to you as soon as we have received the merchandise. Please accept our apology for this delay and thank you for your understanding.

Thank you for your recent correspondence regarding your account number…. We were able to track down the error and have credited your account accordingly. A report to this effect has also been sent to our credit reporting company.

As of this date, your account balance is $ ….

You are a valued customer and we apologize for any inconvenience this mix–up may have caused. If we may be of further assistance please contact this office at your convenience.

Unfavourable discount:

• It would be uneconomical for us to offer our products at the discounts you suggest as we work on a fast turnover and low profit margins.

• The usual trade discount is 15% in this country, which is 5% lower than the figure mentioned in your letter.

• The discount you asked for is far more than we offer any of our customers.