24) Replies to inquiry and their contents

A letter of response answers the questions asked in an inquiry letter. The objective is to satisfy the reader with an action that fulfills the request. Be prompt with your reply. Address every question courteously, even those that seem errant or illogical. You must take into account that your reader probably lacks your expertise. Keep your response on point and on task, as short and complete as possible. Avoid going beyond the scope of the writer's request. When responding to a forwarded letter of inquiry, make note of it in the opening paragraph of your reply.

1.Opening (Thank the writer for his/her enquiry. Mention the date of his/her letter and quote any other references that appear.)

2. Confirming that you can help (Let the writer know as soon as possible if you have the product or can provide the service he/she is enquiring about)

3. Sell your product (Encourage or persuade your prospective customer to do business with you. Mention one or two selling points of your product, including any guarantees you offers

4. Suggesting alternatives (You should be especially tactful if for some reason or other you cannot comply with the request of the would-be customer.

5. Referring the customer elsewhere (It is possible, of course, that you may not be able to handle the order or answer the enquiry)

6. Catalogues, price-lists, prospectuses, samples

7. Demonstrations, representatives, showroom visits

8. Closing (Always thank the customer for writing to you. If you have not done so in the beginning of the letter, you can do so at the end. You should also encourage further enquiries.)

25) What should be mentioned in quotations?

The subjects you should cover in your quotation are:

1. Prices

2. Transport and insurance costs (incoterms)

3. Discounts

4. Methods of payment

5. Quoting delivery

6. Fixed terms and negotiable terms

26) Types of discounts

Manufacturers and wholesalers sometimes allow discounts to be deducted from the net or gross price. They may allow a 1.trade discount to sellers in similar trades; or a 2.quantity discount over a certain amount; or a 3.cash discount if payment is made within a certain time, e.g. seven days, or a 4.loyalty discount when firms have a long association.

27) Main incoterms describe them

GROUP C - Main carriage paid

CFR (Cost and Freight) named port of destination e.g. the port the goods are going to.

CIF (Cost, Insurance & Freight) named port of destination

CFR and GIF can only be used for sea and inland waterways.

CPT (Carriage Paid To) named place of destination

CIP (Carriage and Insurance Paid) named place of destination

GROUP D-Arrival

DAF (Delivered at Frontier) named place

DES (Delivered Ex Ship) named port of destination

DEQ (Delivered Ex Quay - Duty Paid) named port of destination

DES and DEQ can only be used for sea and inland waterways.

DDU (Delivered Duty Unpaid) named place of destination

DDP (Delivered Duty Paid) named place of destination

GROUP E - Departure

Ex-Works (EXW) e.g. from the factory or warehouse

GROUP F - Main carriage unpaid

FCA (Free Carrier) named place e.g. where the carrier - the plane or ship etc., pick up the goods

FAS (Free Alongside Ship) with port of shipment named e.g. where the goods are leaving from

FOB (Free on Board) named port of shipment e.g. where the goods are leaving from.

The term is only used for sea and inland waterways