Quotation, Offer & Counter offer

1. Quotation, Offer & Counter offer Week 4

2. Introduction

3. Quotation • Quotation usually refers to a unit price with delivery terms • A quotation is more or less an indication of price，which is subject to change without previous notice. • Quotation has no legal enforcement, after quoting, potential buyer has no obligation to buy. Besides, if the seller would not like to sell, he has also no obligation to sell the quoted commodities. • If commodities are too many, quotation can be made in form of sheet.

4. Letter of Quotation When we send quotation, we always use letter to tell the buyer that there is a quotation attached in the letter, show thanks for their inquiry, or introduce quoted commodities and hope to get the reply of them. Letter of quotation generally includes the following parts: • Thank for the former inquiry; • The name, quality, quantity and specifications of commodities; • The details of price, discount and term of payment; • Clearly introduce price involved, such as packing, freight premium, etc.; • Express the hope of accepting quotation.

5. Sample Letter

6. Dear Sirs, “Australian Royal” wool blanket We thank you very much for your Inquiry List No.234 and enclose our Quotation No.452 for the captioned goods. Being requested, we enclose our latest price list and catalogue of this month by air. A very full range of the blankets have been sent to you by sample post today, and we are confident that, after examining that, you will see the quality and the prices of the goods we offer you compare favorably with any others, for the same class of goods. We are continually issuing new designs and we are delighted submit further samples to you if there are orders from you in succession from now on. On order for 600 pieces or more we allow a special discount of 6% and look forward to receiving your order. Yours faithfully, M&N COMPANY (SIGNATURE) Bruce Lee President

7. Offers • Quotation usually refers to a unit price with delivery terms，whereas offer contains not only that，but also quantity，time of shipment，payment terms，the time of validity of the offer，etc. • The offer can be divided into firm offer and non-firm offer. • Non-firm offers always have some changeable conditions: • …, subject to our final confirmation. • …, subject to goods being unsold. • …, subject to change without notice. • This is an offer without engagement(obligation). • Firm offers always have a valid date: • …, Subject to your reply reaching us by(before) ….. • …, subject to your reply here within … days. • This offer is firm(open, valid, good) for … days.

8. Letters about offers • Firstly, express thanks for the inquiry, show what date or which one of inquiry you are answering; • Make clear the nature of the offer. If it is a firm offer, state the period of validity. If not, state that the offer without engagement; • State clearly the name of the commodity, quality, specification, quantity, details of prices, time of shipment, and terms of payment; • Provide information as much as possible; • In the final part, hope the buyer will be satisfied with the offer and accept it.

9. Attention !! • Reply in time; • Clearly and correctly reply; • Include all terms of trade; • Clarify it is firm offer or non-firm offer; • Introduce the advantages of commodities.

10. Sample Letter

11. Dear Sirs, Thank you for your inquiry dated 17July and, as requested, we are airmailing you, under separate cover, one catalogue and three sample books for our Australian Royal wool blankets. We hope they will reach you in due course and will help you in making your selection. We are pleasure of making the following offer, subject to your reply reaching us by 5 p.m. our time, Tuesday, August 16, as follows: Article : Australian Royal wool blanket Art. No.: 123445 Quantity: 6,000 pieces Packing: standard export wooden case Price: US $79 per piece CIFC 3% Singapore Shipment: 7 days after receipt of order Payment: By confirmed, irrevocable L/C payable by draft at sight to be opened 30 days before the time of shipment. We look forward to receiving your trial order and assure that it will receive our prompt attention. Yours faithfully, M&N COMPANY (SIGNATURE) Bruce Lee President

12. Dear Sirs, We have received your kind inquiry dated May 23th, 2010. In compliance with your request, we included in this letter our quotation sheet for Australian Royal wool blankets Art No. 132 . The respective quantities are quoted on the basis of CFR Port New York. This offer is subject to our final confirmation. The price quotes including packing and delivery terms and are subject to 6% trade discount for purchase larger than 6,000 items. As usual, we require payment to be made by a confirmed and irrevocable Letter of Credit, payable at sight against presentation of documents. We can guarantee delivery within 15 days after we receive the L/C. If you need any further information about our products, please do not hesitate to let us know by return. What you mentioned in your letter in connection with the question of agency has been taken into our account. We shall revert to the matter later on. Awaiting your esteemed favors and orders. Yours faithfully,

13. Counter Offer • Counter-offer is one of trade forms, in which the receiver accepts the offer but suggests amending some of the content. The nature of counter-offer is some kinds of refusing to the former offer and giving the new offer as the position of sender. • So, after counter-offer, the former offer expires, and new offer becomes the basis of negotiation. • Counter-offer can repeat between two parties. The content of counter-offer usually only involves in terms to be changed or added. • In the international trade, counter-offer and counter- counter-offer may repeat many times, and then final agreements can be achieved.

14. Letter about Counter- Offer • Firstly, express thanks for the offer; • In the second part, clearly apologize and show your reasons of disagreement to certain term(s); • Put forward concrete suggestions or amendments to the former offer; • In the end, express hopes of reply earlier and make a deal

15. Attention!! • Be polite but directly tell the subject; • List what you disagree; • Clearly make your suggestions.

16. Sample Letters

17. Dear Sirs, We thank you for your offer No. 12344 for your Australian Royal wool blankets, and we have given it very careful consideration. We regret to say that we find your price rather high and we believe we will have a hard time convincingour clients at your price. Besides, there is keen competition from supplier in Japan and China. You cannot ignore that. We find that we can obtain from another firm in China a price of 10% lower than that of yours. If you would reduce your price to that extent, we will be pleased to place with you an order that will carry us for the rest of this year. Hope to hear from you soon. Yours faithfully,

18. Dear sirs, We are in receipt of your letter of August 2 offering us 50 metric tons of the captioned goods at US$1 450 per metric ton on the usual terms. In reply，we regret to inform you that our buyers in Odense find your price much too high. Information indicates that some parcels of Turkish origin have been sold there at a level about ten percent lower than yours. We do not deny that the quality of Chinese kernels is slightly better，but the difference in price should，in no case，be as big as ten percent. To step up trade，we，on behalf of our buyers，counteroffer as follows，subject to your reply being received here by August 18，our time. “50 metric tons Bitter Apricot Kernels，2009 Crop at US$1 325 per m／t CIFC 2% Odense with transshipment at Copenhagen，other terms as per your letter dated 2/8/08” As the market is declining，we recommend your immediate acceptance. Sincerely yours,

19. Useful expressions • the captioned goods标题项下的货物 • A very full range of the blankets have been sent to you by sample post today, and we are confident that, after examining that, you will see the quality and the prices of the goods we offer you compare favorably with any others, for the same class of goods. We are continually issuing new designs and we are delighted submit further samples to you if there are orders from you in succession from now on. 今天将所有不同种类毯子的样品，一并寄送贵处。我们相信，经过检验，将会发现我方提供的这些商品的质量、价格和其他同类商品相比，毫不逊色。如果贵公司今后陆续给我们订单，我们会不断地给你们发布我们的最新产品设计，还将很高兴向贵方提交其样品。

20. Useful expressions • as requested 根据贵方要求，应贵方要求 • We hope they will reach you in due course and will help you in making your selection. • 我们希望这些能准时送到贵方以供你选择。 • We are pleasure of making the following offer, subject to your reply reaching us by August 16, as follows: 现报盘如下，此报盘以我方时间8月16号, 星期二下午5时前收到贵方答复为有效。 • Art.No. 商品号码（指在目录和样品簿中某一商品的编号） • Packing: standard export wooden case包装：标准出口木箱 • Payment: By confirmed, irrevocable L/C payable by draft at sight to be opened 30 days before the time of shipment. 付款：装船前30天开出保兑的，不可撤销的信用证见票即付。 • We look forward to receiving your trial order and assure that it will receive our prompt attention. 我们期望能收到你方试订单，并保证会及时关注

21. Useful Expression • .In compliance withyour request, we included in this letter our quotation sheet for Australian Royal wool blankets Art No. 132 . 按照你方的请求，我们随信寄去132号澳洲皇家羊毛毯的报价单。 • If you need any further information about our products, please do not hesitateto let us know by return. 如需要更多关于我们产品的资料，请立即回信告诉我们。 • taken into our account 考虑，顾及 • revert to 回复到，重议 • What you mentioned in your letter in connection with the question of agency has been taken into our account. We shall revert to the matter later on. 我方已考虑贵方来信中所提及的关于设立代理处的问题，以后会和贵方重议此事。 • 6. Awaiting your esteemed favors and orders. 殷盼惠示并订购我们的商品。

22. Useful Expressions • We regret to say that we find your price rather high and we believe we will have a hard time convincingour clients at your price. 很抱歉我们觉得你的价格相当高，对此我们很难让客户接受这价格。 • If you would reduce your price to that extent, we will be pleased to place with you an order that will carry us for the rest of this year. 如果你能在一定程度上降低价格，我们很乐意下这一年剩下几个月的订单。 • We have pleasure in offering (quoting) you the following goods. 我们很高兴就如下产品向你方报价。 • We have learned that there is a good demand for walnut in your market, and take this opportunity of enclosing your Quotation Sheet No. 1234 for your consideration. 获悉你地市场对核桃有较大需求，现寄上1234号报价单供参考。

23. Useful Expressions • Thank you for your letter of December 23 asking us to offer you 10,000 metric tons of the subject wheat for shipment to Singapore and appreciate very much your interest in. 感谢你方12月23日的来信，要求我方报盘运往新加坡的10,000 公吨标题小麦， 十分感谢你对我们产品的兴趣。 • These quotations are all subject to the fluctuations of the market. 这些报价是随市场波动而变动的。 • This offer is to be withdrawn if not accepted by May 10. 如果您没有在5月10日前接受该报盘的话，它将无效。 • This offer will remain effective (valid, firm, open, available, good) until…… 该盘有效期到……为止。

24. Useful Expressions • On condition that you take more than 2,000sets, we are prepared to offer this special price of $9.15 per set, 5% discount. 如订购2000台以上可给予特别报盘，每台9.15 美元，5%折扣。 • Thank you for your kind cooperation in meeting our demand. We hope you will furnish us with further mutually profitable offers in the future. 感谢贵方合作，满足我们的要求。希望将来能以更优惠的报盘提供给本公司。 • We have accepted your firm offer. I am afraid the offer is unacceptable. 我们已经收到了你们报的实盘，恐怕你方的报价不能接受。 • Your offer is unacceptable unless the price is reduced by 5%. 除非你们减价5%，否则我们无法接受报盘。 • You could benefit from higher sale with a little concession, say a 2% reduction. 只要稍做让步，比方说降价2%，就可得到一大笔交易。

25. Useful Expressions • Their fine quality, attractive designs and the reasonable prices at which we offer them will convince you that these materials are really of good value. 它们的良好品质、诱人的花样以及我们所报的合理价格将会使你方相信，这些料子是货真价实的。 • We trust that you will be able to accept our offer, which shall be kept open against reply by fax. 我们确信，你公司会接受我方价格。此报盘至复传真为止都有效。 • We were very pleased to receive your enquiry of 2nd July and now confirm our fax offer of this morning, as follows: 谢谢7月2日来函。兹确认今天早晨的传真报价如下： • We must stress that this offer is firm for three days only because of the heavy demand for the limited supplies of this velvet in stock. 本公司必须强调，此报价仅有效3天。此乃因为天鹅绒的存货有限，而需求却不绝。

26. Useful Expressions • We thank you very much for your kind order of February 25, being accompanied by your check, value $2,000, which we received today. 今已收到贵方2月25日订单及随附价值2，000美元支票一张，非常感谢。 • We are arranging for dispatch next month, we feel sure that you will be satisfied with the goods. 我们正在安排下个月的装运，并相信贵方会对我们的商品感到满意。 • We assure you that this order and further orders shall have our immediate attention. 我们保证此次订单和以后的订单均会得到我们立即的重视。 • We are glad to confirm your order which we have accepted on the terms. 我方很高兴确认贵方的订单并已接受贵方的条件。 • Please note that goods supplied on approval must be returned, carriage paid, within 7days if not required. 请注意，试销货物，如不需要，必须在7天内退回，运费先付。

27. Exercises • Translate the following terms and expressions: 1.Make a concession 2. effect shipment 3. Extend offer 4. 提价8% 5.接受还盘

28. Exercises • 我们从贵公司3月8日来函中得知你方打算向我方订购2万吨化肥，我们很高兴地报价如下： • 兹答复你方3月8日函，现向你方做如下报盘，以我方最后确认为准。 • 感谢收到你7月9号的来信。我们很遗憾的指出你的价格有点偏高，没有可能达成交易。 • 我们获悉在你方市场对核桃的需求很旺，借此机会附上我们1819号报价单，供你参考。 • 兹回复你6月3号的电报，电报内容是要求我们给你方发63号毛毯的报盘，我们想确认我们6月6号的电报作如下的发盘，该发盘没有约束力

29. Group Practice • 2月6日，你收到美国UNITED TEXTILES LTD.的一封来信，信中表示愿意与你公司建立业务联系，并向你公司发出一询盘，要求你方报全棉床单NJ011价，同时注明支付方式、包装、及装运等条件。 • 现请按如下资料写发盘函： • 规格：全棉床单NJ011 • 数量：27000打 • 包装：每盒一打，每一纸版箱20盒 • 价格：纽约到岸价含佣金5%，每打22美元 • 支付：凭保兑的、不可撤消的即期信用证支付 • 装运：收到信用证后1个月内 • 注意： • 1、发盘须发实盘，具体有效期可自定。 • 2、由于市场行情看涨，建议对方早日下单。 • 3、信函日期为2月7日

30. Answer to last week • Translate the following sentences: 1.易碎物品须小心装卸。 2.一旦收到你方具体询盘，我们将立即给你们报最优惠的拉格斯到岸价。 3. As demand for our teas has been increasing since last year, we are unable to make you the offer as requested. 4. As you know we are a state-owned company handling this kind of items for many years. 5. We are favorable to your proposal.