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10.8 What are the two ways of quoting terms?

It is possible to quote terms in two ways: by stating your price and discounts without leaving room for negotiation, or suggesting that the customer could write again and discuss them.

11. Offers

11.1 Types of offers.

In case you know the product you want to buy very well and are satisfied with its quality you may want to ask your supplier to send an offer without asking for any other information about this product.

The offers generally fall into two categories: the firm (binding) offer and the offer without engagement. A firm offer is made by the seller to one potential buyer only. Usually the time during which it remains valid is indicated. If the buyer accepts the offer in full during the stipulated time, the goods are considered to have been sold to him at the price and on the terms stated in the offer.

An offer without engagement may be made to several potential buyers and the goods are considered to have been sold only when the seller, after receipt of the buyer's acceptance, confirms having sold him the goods at the price and on the terms indicated in the offer.

11.2 Parts of offers.

They should contain:

  1. Exact quantities, measurements, weights.

  2. The quality of the goods (chemical analysis, perfor­mance, material, brand, etc.).

  3. The method of transport, if there are several possi­bilities.

  4. The exact date of delivery or time of delivery (e.g.: Our articles will be delivered ex works by the 30th May, .... Delivery can be effected six weeks after the receipt of your order, etc.).

  5. The terms of payment, for instance:

    • payment in advance,

    • cash payment,

    • payment by letter of credit (L/C),

    • document against payment (D/P),

    • payment on receipt of goods,

    • payment with clearing agreement.

  6. The currency in which payment is to be effected, the bank with which you work, the place of payment, etc. should be stipulated.

  7. The terms of delivery define what the price actually includes and stipulate the mutual obligations of the seller and the buyer. The most usual terms of delivery are F.O.B., F.O.R., C.I.F., C.&F. and others.

12. Counter-Proposals

12.1 What is a counter-proposal?

It may happen that a customer deems any terms of proposal unsatisfactory. The Counter Proposal is a commercial document used to request someone to change (negotiate) terms indicated in the previous proposal (offer). Customer states there his reasons why the proposal should be reconsidered.

12.2 What terms might you not agree to?

  • prices

  • discounts

  • delivery terms (time, methods)

  • methods of payment, quantity

13.Orders

    1. The objective of an order

The objective of an order is to provide detailed instructions to a vendor fulfilling it. It is also serves as a legal document recording the transaction.

    1. The reasons for placing trial orders

Trial orders are placed when a client is not sure of the quality of an article and wants to see it for himself. If they turn out good, he may place a bigger order.

    1. What is a repeat order?

In some branches it is customary to place repeat orders for identical goods.

    1. What do order-sheets contain?

Order-sheets (order-forms, order-notes, indents) are printed forms, numbered consecutively and usually containing instructions as to time and place of delivery, make-up, packing, marks, mode of sending, insur­ance, etc.

    1. What is an order usually accompanied by?

A covering letter is preferable as it allows you the opportunity to make any necessary points and confirm the terms that have been agreed.

    1. What can be mentioned in a cover letter?

  • Opening - Explain there is an order accompanying the letter.

  • Payment - Confirm the terms of payment.

  • Discounts - Confirm the agreed discounts.

  • Delivery -Confirm the delivery dates.

  • Methods of delivery - you should advise the firm as to how you want the goods to be packed and sent to ensure prompt and safe delivery

  • Packing- Advise your supplier how you want the goods to be packed.

  • Closing