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Business Correspondence / 1-10 / block 10 Quotations and Offers.doc
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2.5. Offer of goods from an established supplier

KINBOTE PRODUCTS LTD.

45 Bedford Road Bristol BS7 9PP

Our ref. 180/NW Your ref.

21 July 20__

Mr. A. Nikitin

Exotic-Trade

Russia 121355

Moscow

Ivana Franco st., 8

Dear Mr. Nikitin,

We would like to inform you that we have been fortunate enough to obtain a further supply of Indian tea of the same quality as that we provided you with last year.

The total consignment is only 20,000 kg. Immediate delivery is guaranteed. We are pleased to offer you a net price of ₤ 1.50 per kilo. The price is ex-warehouse Bristol and we can allow a 15% trade discount with payment on a documents against payment basis.

As the demand for this commodity on world markets has increased greatly we shall not be able to offer further supplies at such a favourable price, and the next consignment will be rather dearer.

This offer is firm for 7 days. We will urge you to place your order as soon as possible.

Yours sincerely,

Nigel Woods

Nigel Woods

Export Manager

2.6. The customer declines an offer

EXOTIC-TRADE

Russia, 121355 Moscow, Ivana Franco st., 8

Our ref. 51/AN Your ref. 180/NW

24 July 20__

Mr. N. Woods

Kinbote Products Ltd.

45 Bedford Road

Bristol BS 7 9PP

United Kingdom

Dear Mr. Woods,

Thank you for your letter of 21 July in which you offer us Indian tea at ₤ 1.50 per kg. To our regret we are not able to accept your offer as we have just been offered a better price and more favourable terms by an Indian exporter of tea.

We may revert to this matter again, if you quote us a lower price and improve your terms.

Yours sincerely,

A.Nikitin

A.Nikitin

Manager

FOCUS 2. Comprehension questions

Lead-in 1

  • What is a quotation?

  • What subjects should a quotation cover?

  • What is the difference between the gross price and the net price?

  • What is a firm offer? Is it legally binding on the supplier?

  • What provisions for prices can be added by the supplier to a quotation?

  • What discounts may be allowed by the supplier?

  • What are the ways of quoting terms?

  • What is the difference between fixed and negotiable terms?

LETTER 1.1.

  • What prices are quoted in the quotation?

  • What is included in the price? Is it a gross or a net price?

  • How long will the supplier keep to the stated prices?

  • What method of payment is stated?

  • What is the quoted time of delivery?

LETTER 1.2.

  • What concession was requested from the supplier?

  • What discount can the supplier offer?

  • What does the amount of the offered quantity discount depend on?

  • What prices are quoted?

  • What discount is offered on the prices?

  • What is the proposed method of payment?

  • Are the stated terms firm or negotiable?

  • What delivery dates are specified and why?

  • How does the supplier suggest that the method of payment could be changed in the future?

  • What enclosures have been made?

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