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 FCA – Free Carrier named place of delivery - The seller hands over the goods, cleared for export, into the disposal of the first carrier named by the buyer at the named place.. The se

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Commercial correspondence

Vũ Thị Diễm Phúc Khoa Tiếng Anh Thương Mại

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REPLIES AND QUOTATION

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Replying to enquiries

Opening

Body

 Confirming that you can help

 ‘Selling’ your product

 Suggesting alternatives

 Referring the customer to another place

 Sending catalogues, price lists, prospectus,

and samples

 Arranging demonstrations and visits

Closing

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 Mention your prospective customer’s name,

which indicates that you have not bothered to remember the enquirer’s name

 Thank the writer for his/her enquiry

 Mention the date of his/her letter and quote

any other references that appear

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▶ Thank you for your enquiry of June 15th 2007 in which you asked about…

▶ I would like to thank you for your enquiry of May 30 and

am pleased to tell you that we would be able to supply you with the …

▶ We were pleased to hear from your letter of 6 June that you were impressed with our selection of …

▶ Thank you for your letter about … which we received this morning.

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Confirming that you can help

 Confirm that you can provide the product or

service the writer is enquiring about as soon

as possible It is irritating to read a long letter only to find that the firm cannot help.

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▶ We have a wide selection of … that will appeal to

different kinds of customers, and in particular the city market which you specified

▶ Our factory would have no problem in producing the 10,000 units you asked for in your enquiry

▶ We can supply from stock and will have no trouble in meeting your delivery date

▶ I am pleased to say that we will be able to deliver the transport facilities you require

▶ We offer door-to-door delivery services

Confirming that you can help

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”Selling” your product

 Encourage or persuade your prospective

customer to do business with you

 Your customer may have made ten other

enquiries, so remember it is not only in

sales letters that you have to persuade

 Mention one or two selling points of your

product, including any guarantees you offer.

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▶ We think you have made an excellent choice in

selecting this line, and once you have seen the

samples we are sure you will agree that this is

unique both in design and color

▶ We can assure you that the Omega 2007 is one of the most outstanding machines on the market

today, and our confidence in it is supported by

our five-year guarantee

▶ Once you have seen the Delta 800 in operation

we know you will be impressed by its trouble-free performance

Selling your product

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Suggesting alternatives

 Offer an alternative if you do not have what the

enquirer has asked for Do not criticize the

product he originally asked for.

having been replaced by plastic which is lighter, more durable and stronger

but escalating costs have persuaded many of our

customers to look for an alternative which is more

competitive in price Tareton Plastics have produced a high-quality substitute, ‘Letherine’, which has the

texture, strength, and appearance of leather, but at less than a quarter of the cost.

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Referring the customer elsewhere

 Tell the enquirer if you may not be able to handle the order or answer the enquiry, and if possible, refer them

to another company which can help them.

▶ I regret to say that we no longer produce the type of stapler you refer to as there is no longer sufficient demand for it I am sorry we can not help you

▶ The book you mentioned is not published by us, but by Greenhill Education Ltd Their address is

▶ We no longer manufacture cotton box as their retail prices tend only to attract the upper end of the market All our products are made of plastic that is lighter and more durable However, if you are still set on pure

cotton box, we advise you to contact Chi Box Making Ltd

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Referring the customer elsewhere

 You may still have to refer them elsewhere even

if you can handle the enquiry.

▶ We manufacture the product you require, but we only deal with wholesalers, not retailers

Therefore, I suggest you contact our agent, IAC,

133 Thai Ha street

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Sending catalogues, price lists,

prospectuses, samples.

 Enclose your current catalogues and

price lists with your reply

 If prices are subject to change, let your

customer know

 If you are sending samples separately,

let your customer know they will follow the letter immediately by separated post

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▶ Please find enclose our current catalogue and price list quoting c.i.f prices HCM City The units you referred to

in you letter are featured on pp 30-34 under catalogue numbers A1 – A4 When ordering could you please

quote these numbers? The samples you asked for will follow by separate post

▶ We have sent you our summer catalogue which

unfortunately is only printed in German However, we have enclosed an English translation for the relevant

pages (40-45) and hope this will prove helpful

Sending catalogues, price lists,

prospectuses, samples.

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▶ We enclose our booklet on the Omega 2007 and are sure you will agree that it is one of the finest machines of its kind It can be adapted to your specification and details of this are on page 12 under the heading “Structural Changes”

▶ … and we have enclosed our price list, but should point out that prices are subject to change as the market for raw materials is very unstable at

present

Sending catalogues, price lists,

prospectuses, samples.

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Demonstrations, representatives,

show-room visits

 Send a representative or adviser or suggest

that the customer visits showrooms when demonstrations are needed.

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▶ We have enclosed full details of the model A1QA2, but a demonstration would be necessary to show you its

capabilities We would therefore like to invite you to

our centre in Hochiminh City where the equipment is set

up, so that you can see the machine in action

▶ As the enclosed illustrated booklet cannot really show the efficiency of the Sym@ word processor, we would

be happy to arrange a visit to your company for our

representative to give a demonstration If you are

interested in a visit, please fill in the enclosed pre-paid card and return it to us

Demonstrations, representatives,

show-room visits

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▶ The enclosed catalogue will give you an idea of the type of sound equipment we produce, but may we suggest that you visit our agent’s

showrooms in Binh Duong Province where you can see a wide range of units? The address is …

▶ We will able to install the equipment within two months, but would like to send Mr Lam, our chief engineer, to look over your plant and prepare a report on the installation, taking into account your particular requirements

Demonstrations, representatives,

show-room visits

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Closing

 Thank the customer for writing to you

 Encourage further enquiries.

▶ Once again we would like to thank you for writing to

us and would welcome any further points you would like us to answer

▶ Please write to us again or call us at the above

phone number if you have any questions

▶ I am sorry do not have the model you asked for, but can assure you that the alternative I have suggested will meet your expectations Please note that we

offer a guarantee for three years

▶ We hope to hear from you again soon, and can

assure you that your order will be dealt with promptly

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Prices

 Gross price include other costs and charges

such as transport, insurance, and taxes

 Net price exclude these extra costs

▶ The net price of these articles is $10.00, to which

VAT must be added at 15%, making a gross price of

$11.50

▶ We can quote you a gross price, inclusive of delivery charges, of $37.50 per 100 items These goods are exempt from VAT

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 A firm offer means the company making it will hold the goods for a certain time until the customer

orders, i.e firm 14 days Suppliers generally keep

to firm offers to protect their reputation.

▶ The prices quoted above are provisional, since we may be compelled by the increasing costs of raw

materials to raise them I will inform you

immediately if this happens

▶ We can offer you a price of $6.29 per item, firm 21 days, after which the price will be subject to an

increase of 5%

Prices

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 Quote prices in customer’s currency whenever

possible, allowing for exchange fluctuations.

▶ The price of this model of Box is USD 20.00 at

today’s rate of exchange

▶ We can quote you a price of HKD 15,000 per 100

units, though I regret that, because of fluctuating exchange rates, we can only hold this price for four weeks from today’s date

▶ The net price of $530.00 per unit is extremely

competitive

Prices

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Transport and insurance costs

 Incoterms, established by the International

Chamber of Commerce (ICC), provide a set

of international rules for the interpretation

of the most commonly used trade terms in foreign trade (

http://en.wikipedia.org/wiki/Incoterms )

 Incoterms are quoted in the following way:

$35,000 FOB Rotterdam ( – price includes delivery costs to when the goods are on board ship at Rotterdam)

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EXW – Ex Works (named place of delivery) - The seller

makes the goods available at its premises The buyer pays all transportation costs and also bears the risks for bringing the

goods to their final destination

FCA – Free Carrier (named place of delivery) - The seller

hands over the goods, cleared for export, into the disposal of the first carrier (named by the buyer) at the named place The seller pays for carriage to the named point of delivery, and risk passes when the goods are handed over to the first carrier.

CPT - Carriage Paid To (named place of destination) - The

seller pays for carriage Risk transfers to buyer upon handing

goods over to the first carrier.

CIP – Carriage and Insurance Paid to (named place of

destination) - The containerized transport/multimodal

equivalent of CIF Seller pays for carriage and insurance to the named destination point, but risk passes when the goods are

handed over to the first carrier.

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DAT – Delivered at Terminal (named terminal at port or place of destination) - Seller pays for carriage to the

terminal, except for costs related to import clearance, and

assumes all risks up to the point that the goods are unloaded at the terminal.

DAP – Delivered at Place (named place of destination) -

Seller pays for carriage to the named place, except for costs related to import clearance, and assumes all risks prior to the point that the goods are ready for unloading by the buyer.

DDP – Delivered Duty Paid (named place of destination)

- Seller is responsible for delivering the goods to the named

place in the country of the buyer, and pays all costs in bringing the goods to the destination including import duties and taxes This term places the maximum obligations on the seller and

minimum obligations on the buyer.

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FAS – Free Alongside Ship (named port of shipment) - The

seller must place the goods alongside the ship at the named port The seller must clear the goods for export

FOB – Free on Board (named port of shipment) - The seller

must load themselves the goods on board the vessel nominated by the buyer Cost and risk are divided when the goods are actually on board of the vessel (this rule is new!) The seller must clear the

goods for export

CFR – Cost and Freight (named port of destination) -

Seller must pay the costs and freight to bring the goods to the port

of destination However, risk is transferred to the buyer once the goods are loaded on the vessel (this rule is new!) Maritime

transport only and Insurance for the goods is NOT included

CIF – Cost, Insurance and Freight (named port of destination)

- Exactly the same as CFR except that the seller must in addition

procure and pay for the insurance Maritime transport only.

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 Trade discount is to sellers in similar trades

 Quantity discount is for orders over a

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

▶ The net price of this model is $170.00, 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 price quoted are CFR Yokohama, but are subject to

a 20% trade discount off net price We will allow a

further 10% discount off net price for orders of more

than 3,000 units

Discounts

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Quoting delivery

 Confirm that the delivery the enquiry

specifies can be met or suggest an

alternative date if not

 Failure to keep your promise may lead

to a bad reputation, reject of the goods

by the customer or even a lawsuit

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▶ As there are regular sailings from Haiphong port to

Hong Kong, 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 right

after we receive your order

▶ As there is a heavy demand at this time of year for this

model, please allow at least six weeks for delivery

▶ We would not be able to deliver within two weeks of

receipt of order, as we would need time to prepare the documents However, if you could let us have a month,

we could guarantee delivery within that period

Quoting delivery

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Fixed terms and negotiable terms

 Firm quote indicates that methods of

payment and discounts are fixed, there is no room for negotiation.

▶ All list prices are quoted f.o.b Hong Kong 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 (CIF HongKong)

if required However, unless otherwise stated, payment is to be made by 30-day bill of

exchange, documents against acceptance

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Bill of exchange (home trade) (h i phi u): the seller draws a bill on ối phiếu): the seller draws a bill on ếu): the seller draws a bill on the buyer The bill states that the buyer will pay the seller an amount

at stated date The bill is sent to the buyer either by post, or through

a bank, and the buyer signs the bill before the goods are sent If this

is done through a bank, the bank will ask the buyer to accept (sign) the bill before handing over the shipping documents; this is known

as a documents against acceptance (D/A)

Bill of exchange (international trade): the procedure is the same as

for the home trade, but shipping documents usually accompany bills when the bank acts as an intermediary in overseas transactions

Fixed terms and negotiable terms

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 Letter of credit or documentary credit: this method of payment is used internally but is more common in overseas transactions Documentary credits have to be applied for from the buyer’s bank, by filling out a form giving details of the type of credit (revocable or irrevocable), the

beneficiary (the person receiving the money), the amount, how long the credit will be available for (valid until…), the documents involved (bill of lading, insurance, invoice…) description of the goods The money will be credited to the supplier’s account as soon as confirmation of shipment is made This is done when the documents are lodged with the customer’s bank

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