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Purchase Letter of Refusal

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									Chapter 7:
Bad New Messages
  Identify and discuss the steps,
   advantages, exceptions, and strategies
   for using the inductive outline
  Writing messages refusing requests,
   denying claims, and handling problems
   with customers’ orders
  Writing messages denying credit,
   providing constructive criticism, and
   communicating negative organizational
The Inductive Outline
 Using it to convey bad news
Steps and Advantages
  Begin with neutral      Presents reasons
   idea                     before refusal
  Present reasons for     Emphasizes the
   refusal                  reasons
  State refusal or bad
                           Avoids negative
   news in a positive
   tone                     reaction
  Close with a future-    De-emphasize the
   oriented idea            refusal
  Second response to the a repeated
  Small, insignificant matter
  Request is obviously ridiculous,
   immoral, unethical, illegal or dangerous
  The writer wants to demonstrate
  Writing the introductory paragraph
  Presenting the reasons
  Writing the bad news statement
  Closing positively
Writing the Introductory
   Avoid:                    Ideas to use:
 1. Empty                 1.   Compliment
    acknowledgements      2.   Point of agreement
    of the obvious        3.   Good news
 2. Tipping off the bad
                          4.   Resale
    news too early
                          5.   A review
 3. Starting too
    positively            6.   Gratitude
Presenting the Reasons
  Provide a smooth transition from
   opening to explanation
  Include discussion of reasons that are
   logical to the reader
  Show benefit and/or consideration
  Avoid using “company policy” as a
Writing the Bad-News
    Position the bad news statement strategically
    Use passive voice, general terms, and
     abstract nouns
    Use positive language to accentuate the
    Imply refusal without a definite statement of
     bad news
    Offer counterproposal
Closing Positively
   Include:                Avoid:
 1. De-emphasize the      1. Trite statements
    bad news
                          2. Statements that
 2. Add a unifying
                             undermine validity
    quality to the
    message               3. Statements that
 3. Include a positive,      encourage further
    forward-looking          controversy
Applying the
   Refusing Requests
     Denying Claims
 Handling Order Problems
Refusing Requests
  Reasons--before-refusal
  Offer a counterproposal
  Be sensitive and give honest
  Intro--sincere compliment, make
   subject clear
  Closing--offer to pursue alternative
Denying a Claim
  Present explanation for refusal
  Tone is important/avoid lecturing
  Close the letter with promotional
Refusing an Order
  Minimize disappointments
  Add promotional material to draw resale
  Offer an alternative place of purchase
  Tone is important
Applying the
Concepts (cont.)
         Denying Credit
 Providing Constructive Criticism
    Communicating Negative
      Organizational News
Denying Credit
     Three main problems:
     1.   How to say “no” without saying “no”
     2.   How to fairly inform them about reasons
          for the decision
     3.   The reason to start with positive news
          rather than negative news
Legality of Denying Credit
    Equal Opportunity Act, ECOA
      30 day notice
      Reasons for refusal if denied

    Fair Credit Reporting Act, FCRA
        The right to know the nature of the
         information contained in your credit file
Providing Constructive
    Principles
        Have positive intent
        Be factual
        Use positive language
        Leave the judgment to the recipient
    Recognizing the Risks
        Being stereotyped as a complainer
        Being associated with negative thoughts and
         perceived in negative terms
        Appearing to challenge the management’s prior
Providing Constructive
Criticism (cont.)
    Risks Worth Taking
      The writer gets a feeling of having
       exercised responsibility
      Management learns of changes that need
       to be made
      The team or individual about whom the
       letter is written modifies their techniques
       and is more successful
To Avoid Legal Hassles
    Primary Considerations
        Only include specific facts that you can verify and
         avoid opinions about the person’s character or
        Is the intent to hurt or to get even?
        Is the information false?
    The Worst Letters:
        Are short, general, exaggerate, and negative
    The Best Letters:
        Are long, specific, and positive
Communicating Negative
Organizational News
     Three Things to        To write effective
      Consider:               organizational
 1.   Be sensitive            messages:
 2.   Be honest            1. Use the inductive

 3.   Deliver message in      approach
      a timely manner      2. Present reasons
                              and explanations
                              before the bad
Outline of the Inductive
Approach (A Refresher)
  Begin with a neutral idea that leads to
   the reasons for the bad news
  Present the facts, analysis, and reasons
   for the bad news
  Present the bad news using a positive
   tone and de-emphasis technique
  Close with an idea that shifts away from
   the bad news
     In writing bad-news
      messages, the goal is
      to keep customer
      loyalty and repeat
     Remember to:
 1.   Be honest
 2.   Give alternatives
 3.    Always write in a
      positive tone

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