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					   Business
Communication 1
 Reply and quotation
       Reply and quotation
 Reply:   giving general information

 Quotation:   more technical
  – Prices
  – Transport and insurance costs
  – Discounts
  – Methods of payment
  – Delivery date
  – Fixed and negotiable terms
                1. Reply
 Opening
 Confirming that you can help

 ‘Selling’ your product

 Suggesting alternatives

 Referring the customer to another place

 Sending catalogues, price list, samples, …

 Arranging demonstrations and visits

 Closing
                   Opening
   Mention the customer’s name:
    – Dear Mr Green
    – NOT: Dear Sir

   Thank for his/her letter

   Mention the date

   Mention any other references

   Exercise with the following enquiry
Pay attention to: ref., date, salutation, the content of the opening
paragraph
  Confirming that you can help
 Let the enquirer know early in your
  letter whether you can help or not

 It is irrating having to read through a
  letter only to find out you cannot be
  helped
       ‘Selling’ your product
 Encourageyour potential customer
 (=prospect) to do business with you

 Persuade   your prospect:
  – Special offers
  – Discounts
  – Guarantees
  –…
        Suggesting alternatives
    do not have what the enquirer
 You
 wants

 But   you offer an alternative

 Donot criticize the item the
 customer originally wanted
Referring the customer to another
              place
   If you really cannot offer what the
    customer is looking for:

    – Be honest and tell him/her
    – Refer him/her to another company


   Even if you can handle the enquiry, you
    may still have to refer the enquirer
    elsewhere
   Sending catalogues, price list,
    prospectuses and samples
 Do not forget to enclose/attach
  promised items

 Compress/zip   in the case of email

 Ifprices or items are subject to
  change, let your customer know
 Ifyou send items under ‘separate
  cover’ (= in another mailing) tell the
  customer when this will arrive
     Arranging demonstrations and
                 visits
   Necessary for certain products
    (machinery, technical equipment, …)

   Suggest a representative or adviser

   Suggest the customer visits the showroom

   Example: compare the following enquiry
    and reply
ENQUIRY
                Closing
 Thank your customer for his/her
 interest in you

 Encourage   further contact or
 enquiries
                  2. Quotations
   A more ‘technical’ reply

   Should cover at least some of the
    following items:
    –   Prices
    –   Transport and insurance costs
    –   Discounts
    –   Methods of payment
    –   Delivery date
    –   Fixed and negotiable terms
                    Prices
 When   quoting a price, be specific:
      Gross price: includes other costs such as
       transport, insurance, VAT
      Net price



A quotation is not legally binding, but
 suppliers tend to guard their
 reputation
 – Subject to change
 – Firm offer
 Quote prices in your customer’s
 currency, but mention exchange
 fluctuations
    Transport and insurance costs
   What is included in the price and what is
    not?

   Good agreements and on paper!

   International Chamber of Commerce =>
    INCO Terms
    –   Group   C
    –   Group   D
    –   Group   E
    –   Group   F
Inco terms = agreements for every phase in transport
 Group   C:
  – The seller covers only the costs listed to
    get the goods to a named destination:
    freight and import duties
  – Seller does not usually pay insurance
  – CFR
  – CIF
  – CPT
  – CIP
 Group   D:
  – The seller carries all the costs and risks
    to get the goods to a named destination
  – DAF
  – DES
  – DEQ
  – DDP
  – DDU
 Group   E:
  – The buyer pays all costs once the goods
    have left the seller’s premises
  – EXW
 Group   F:
  – The seller delivers the goods to a carrier
    appointed by the buyer
  – FCA
  – FAS
  – FOB
   How to mention INCO terms in your
    business correspondence:

    – Our price is £ 30,000 CFR Hong Kong.
       Thisprice includes all delivery costs to Hong Kong,
        except for insurance


    – The total price is £ 35,000 FOB Rotterdam.
       The price includes delivery costs to when the goods
        are on board ship at Rotterdam
 Two   special terms (mainly UK):
 – Carriage paid (sender pays)
    Wewill send replacement for the damaged
    goods C/P.

 – Carriage forward (receiver pays)
    Wewill send replacement for the damaged
    goods C/F.
                Discounts
 Different   kinds
  – Trade discount
  – Quantity discount
  – Cash discount
  – Loyalty discount
       Methods of payment
       state which method of
 Clearly
 payment you require
  – Letter of credit
  – Bill of exchange
  – Post office giro
  – Postal order
  –…
     See  pp. 78-79 and 147-167
     Selfstudy: test 7 April
         Quoting delivery date
 Can you deliver at the time
  requested in the enquiry?

 If   not, suggest an alternative

 Do    not lie
  – Reputation
  – Customer can break contract
  – Customer can sue you
   Fixed and negotiable terms
 State prices and offers with no room
 for discussion

 Suggest the customer to discuss
 your offer
  – However, …
  – If required, …
  – We can arrange …
  – Normally, usually, …
 Compare   the following two letters:

 – In which one is the writer making firm
   quotes?

 – In which one is the tone softer, allowing
   negotiation?
         Giving an estimate
 Send the estimate in a tabulated
 form in a letter
 – See example p. 59


 Send the official estimate form with a
 covering letter

				
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posted:9/1/2012
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