Discounts

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

We allow a 3% discount for payment within one month.

The net price of this model is £7.50, less 10% discount for quantities up to 100 and 15% discount for quantities over 100.

We do not normally give discounts to private customers but because of your long association with our company we will allow you 20% off the retail price.

The prices quoted are с. & f. Yokohama, but are subject to a 20% trade discount off net price, and we will allow a further 20% trade discount of f net prices for orders of more than 2,000 units.

4.2.4

Methods of payment

When quoting terms, you may require, or at least suggest, any of several methods of payment (letter of credit, bill of exchange, etc.) For a full treatment of this subject, see 6.3.1/2 and 9.5/7.

If you would send us your personal cheque for the amount quoted, we will then send the article by registered mail.

Payment for initial orders should be made by sight draft, payable at Den Norske Creditbank, Kirkegaten 21, Oslo 1, cash against documents.

4.2.5

Quoting delivery

If the enquiry specifies a delivery date, confirm that it can be met, or if not, suggest an alternative date. Do not make a promise that you cannot keep; it will give you a bad reputation, and if a delivery time is a condition of ordering, the customer could sue you if you break the contract, or reject the goods.

... and we are pleased to say that we can deliver by December 1st for the Christmas rush.

As there are regular _sailings from Liverpool to New York, we are sure that the consignment will reach you well within the time you specified.

We have the materials in stock and will ship them immediately we receive your order.

As there is a heavy demand at this time of year for heaters, you will have to allow at least six weeks for delivery.

We could not deliver within two weeks of receipt of order, as we would need time to prepare the materials. However, if you could let us have a month, we could guarantee delivery within that period.

4.2.6

Fixed terms and negotiable 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. In the two examples below, the companies make firm quotes, indicating that methods of payment and discounts are fixed.

All list prices are quoted f.o.b. Southampton and are subject to a 25% trade discount with payment by letter of credit.

The prices quoted are ex-works, but we can arrange freight and insurance if required, and unless otherwise stated, payment is to be made by 30-day bill of exchange, documents against acceptance.

In the next two examples, the use of the adverbs normally and usually soften the tone of the statements to indicate that although the firm prefers certain terms, these can at least be discussed. In the final example the supplier even asks 'if this arrangement is satisfactory'.

We usually offer an 18% trade discount on f.o.b. prices, and would prefer payment by irrevocable letter of credit.

Normally we allow a 23% trade discount off net prices with payment on a documents against payment basis. Please let us know if this arrangement is satisfactory.

4.2.7