10. Offers

10.1 Types of offers

The offers generally fall into two categories: the firm (binding) offer and the offer without engagement. Afirm 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 severalpotential 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.

10.2 parts of offers

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.

11. Counter-proposal

11.1 What is a counter proposal?

a letter where the customer tries to get better terms

11.2 what terms might you not agree to?

• It may happen that a customer deems prices too high. Then he will give the seller his reasons why the price should be reduced. He supports his points by submitting the prices or offers of competitors which are lower than those demanded by his present supplier.

• The exporter, in his turn, will see to it that the prices his importer obtains are on the level of world market prices. He may try and persuade the customer to pay a higher price. Of course strong language is out of place here, too.

12.Orders

12.1. 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.

12.2 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.

12.3 what is a repeat order?

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

12.4 what do order-sheets contain?

Many companies use order-sheets (order-forms, order-notes, indents). These are printed forms, numbered consecutivelyand usually containing instructions as to time and place of delivery, make-up, packing, marks, mode of sending, insur­ance, etc. Your intentions need to be clear and concise. The reader will fill your order only according to your instructions and your satisfaction will depend largely upon their accuracy.

12.5 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.

12.6. What can be mentioned in a CL?

• Opening (Explain there is an order accompanying the letter)

• Payment (Confirm the terms of payment)

• DiscountsConfirm the agreed discounts.

• Delivery Confirm the delivery dates

• Methods of deliveryMany firms use forwarding agents who are specialists in packing and handling the documentation for shipping goods. Nevertheless, you should still advise the firm as to how you want the goods to be packed and sent to ensure prompt and safe delivery, so that if the consignment does arrive late, or in a damaged state, your letter is evidence of the instructions you gave.

• PackingAdvise your supplier how you want the goods to be packed. Note, in the first example, that crates are often marked with a sign - a diamond, a target, a square, a lion, etc. - that can be recognized by the supplier and customer.

• Closing

12.7 the reasons for refusing an order

• 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)

• 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')

• Unfavorable terms (The supplier may not like the terms the customer has asked for)

• Unfavorable discount

• Unfavorable payment

• Size of order (The quantity required might be too large or large)