II. Counter-Offer (Price Too High)

Dear Sirs,

We thank you for your offer of 15th May and the patterns of Cloth No. D 677. The terms of your offer have our approval, but we feel that the price of £ 1.50 per yard is rather high. The cloth is for export to a market where competition is very keen, and at this figure our profit would be only nominal. However, if you could reduce the price to £ 1.25 per yard, we should be glad to place an order for some 30,000 yards.

We trust that in view of the size of this order you will see your way to making this concession.

Yours faithfully,

 

 

III. Refusal of Quotation

Dear Sirs,

We regret that we cannot make use of your quotation of 19th October for Tinplate, as we have been able to obtain this material at a lower price from another supplier.

Many thanks for the trouble you have taken in this matter.

Yours faithfully,

 

IV. Acknowledgments

Replies to Orders—Acknowledgments

Replies to Orders

When an order is received, it is customary for the seller to send the buyer a written acknowledgment. The acknowledgment of an order placed on the basis of a firm offer, in good time, and without any qualifications, is sent merely "for order's sake," as a final confirmation of a contract already in existence. In all cases where the seller is free to accept or refuse the buyer's order, the acknowledgment constitutes the seller's formal acceptance of the order, which results in a contract between buyer and seller.

Occasionally, however, a supplier is compelled to refuse an order. Perhaps the buyer's terms are not acceptable, the goods ordered are no longer manufactured or carried in stock, or the firm which placed the order is known to be financially embarrassed. Manufacturers selling through agents or dealers often have to refuse orders received at the factory.

 

Acknowledgments

Acknowledgments of orders may be either letters or printed forms. In his acknowledgment, the supplier thanks the customer for his order and informs him of the date on which the goods will be delivered. In the case of immediate delivery, the acknowledgment includes an advice of dispatch. If the order is incomplete or not clear, the supplier asks the customer to furnish further details or to specify his wishes. The acknowledgment may also contain a request for references or credit information.

In order to avoid misunderstandings, it is often advisable to repeat in the acknowledgment the most important points of the order. The acknowledgment may also be a detailed confirmation of the sale concluded (sales note, contract note). Sometimes the seller sends the buyer a contract in duplicate and asks him to return one copy with his signature.

Specimen Letters

I. Acknowledgment and Dispatch Advice

Gentlemen:

Thank you very much for the order you gave our salesman, Mr. Colbert, on November 7.

Enclosed you will find the bill of lading and invoice for the complete order, which was shipped by rail this morning. You will note from the invoice that we have allowed you a quantity discount of 10%.

We hope that the goods will arrive in good condition and look forward to the pleasure of serving you again soon.

Yours sincerely,

Encl.

 

II. Motorcar Dealer Thanks Customer for His Order

Dear Mr. Cooper:

We're glad that you decided to become a Volkswagen owner. Thank you for buying your new VW from us.

After all, you might have bought it in any of the other 49 states, or in any of 135 other countries around the world. That's how many places you can travel to and still get service from factory-trained mechanics.

It has been a pleasure helping you pick out your new VW. We wish you many years and many miles of enjoyable driving.

Sincerely,

Murray Motors Inc.

III. Manufacturer Acknowledges Order — Customer Referred to Dealer

Dear Mrs. Myers:

Thank you very much for your order of April 7 for a 15 cu.ft. BLUESPOT Frostless Freezer.

We would like to send you the freezer, but as manufacturers we sell only through dealers and never supply appliances direct from the factory. May we therefore suggest that you visit one of the following dealers in your city:

Kendall Appliances Store, 411 Woodbury Ave.

Harper & Smith, Inc., 66 Union Street

You will receive courteous and prompt service at either of these stores, and we are sure that you will be satisfied with your BLUESPOT Frostless Freezer. The sealed refrigeration system is guaranteed for five years. All other parts carry a similar one-year guarantee.

Yours sincerely,

 

IV. Maker of Tweed Skirts Acknowledges Order from Private Customer—Cannot Promise Delivery Within the Time Desired

Dear Mrs. Grey,

Thank you for your order of 6th November. Much as we should like to help you, we are sorry to say that we cannot promise delivery by 23rd November.

At this time of the year we are exceptionally busy in all departments. As you know, we make everything individually and specially to order, which naturally takes time, and we normally require about six weeks for delivery.

We would rather tell you this now than disappoint you later and hope that you will instruct us to put your order in hand for delivery as soon as possible.

In the meantime we shall hold your order in our pending file and should be grateful if you would quote the reference AJ/CD/018 in your reply.

Yours sincerely,

 

V. Delivery

Execution of Orders—Invoices, Statements, Debit and Credit Notes

Execution of Orders

The seller executes buyer's order by delivering the goods according to the terms of the contract.

Before delivery can be made, the goods have to be carefully packed to ensure safe arrival. Adequate packing is of particular importance in the case of overseas shipments. The packing containers must be strong enough to withstand rough handling and the stresses of transport, but, on the other hand, they should be as light and compact as possible.

 

Invoices

Invoices or bills are usually rendered when the goods are delivered, but they may also be made out before or after delivery. Most invoices are prepared on printed forms with the firm's letterhead (invoice forms, US: billheads). A complete invoice contains the following details:

1. Name and address of buyer.

2. Date and number of invoice.

3. Date and number of order.

4. Quantity and description of the goods; marks, numbers, etc., of packages.

5. Unit price and extension;deductions, additional charges, etc.; total invoice amount.

6. Miscellaneous details, such as method of transport, terms of payment, etc.

 

Statements

Customers who have a current account with a supplier receive statements of account at regular intervals, for example, once a month or once every quarter. The statement is, in effect, a copy of the customer's account since it was last balanced. It shows the balance at the beginning of the period, all invoices rendered and payments received during the period (including debit and credit notes, if any), and the balance at the end of this period. The statement enables the two firms to compare the entries in their books; it also acts as a reminder to the debtor that money is still owing.

 

Debit and Credit Notes

Debit and credit notes (US: debit and credit memoranda, debit and credit memos) are exchanged between two firms when faulty goods or empty containers are returned by the customer, or when an error or omission in an invoice or statement has to be corrected.

When a debit note has been received and found correct, it is acknowledged by a credit note, and vice versa.

 

Specimen Letters

I. Dispatch Advice — Bill of Exchange Drawn

Dear Sirs,

We are pleased to inform you that your order of the 10th February has today been dispatched by rail.

As agreed, we have drawn on you for the amount of our invoice at one month. We enclose the draft, which please furnish with your acceptance and return to us.

Yours faithfully,

Encl.

 

II. Shipping Advice

Dear Sirs,

Your Order No. 177, dated 17th October

This is to advise you that the above-mentioned order be shipped on board the vessel "Ubana" from London to Mombasa on 25th November.

We are pleased to hand you enclosed copy of commercial invoice amounting to..., as well as non-negotiable copy of the bill of lading.

The original shipping documents (commercial invoice in triplicate, customs invoice in duplicate, full set of clean on-board bills of lading and certificate of insurance) have been presented to our bankers for collection through Barclays Bank, International Ltd. Nairobi, Kenya, on a sight draft basis.

We shall be glad to hear that the goods have arrived safely and in good order.

Yours faithfully,

Encl.