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Letter of offer. Sample of an offer. Batteries international Ltd. Practice. Task 1. Read the telephone conversation below and prepare a letter of inquiry from the Director of the hotel and a letter of offer from the firm for 50 refrigerators.
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Text 2.
LETTER of OFFER
After considering the enquiry for some time the prospective seller sends an offer in reply.
The offer usually quotes the price and stipulates terms of delivery, terms of payment and discounts, packing, transportation costs, time of delivery and some other necessary details.
When sellers quote prices in their offers they usually state on what terms at this price, they will deliver the goods. The supplier trying to attract the attention of potential clients or looking for new clients for special products or their range will speak about a firm offer which stipulates some specific conditions, such as a deadline and a system of discounts. The price will certainly depend on the terms of delivery.
The most popular terms of delivery in foreign business transactions are: Ex-mill, ex-works (from a plant or factory); fob (free on board); for (free on rail); cif (cost, insurance and freight); cip (cost, insurance and payed to…); c & f (cost and freight).
If the goods are offered on ex-mill terms the price will include the cost of the goods only.
If the goods are offered on fob terms the price will include the cost of the goods and transportation expenses to the port of shipment only.
If the goods are offered on for terms the price will include the cost of the goods and transportation expenses to the railway station only. These terms are similar to fob terms. The only difference is the mode of transportation. In case fob terms the goods are shipped on board ships or planes. In case of for terms the goods are transported by railway.
If the goods are offered on cif terms the price will cover the cost of the goods, insurance expenses and freight or transportation expenses, to the port of destination.
If the goods are offered on cip terms the price will include the cost of goods, insurance expences and freight to the place of destination.
If the goods are offered on c & f terms the price will cover the cost of the goods and freight to the port of destination.
*The price is USD 2, 000. 00 per ton fob NewYork.
*The quoted price is GBP 1, 200. 00 each cif Murmansk.
*We can offer the goods at the price of GBP 78. 00 per metre c& f Liverpool.
*The goods are offered on for basis.
Offers usually state the terms on which the goods are to be paid, or terms of payment.
Terms of payment usually mean the currency, time of payment, mode of payment and many details.
In foreign trade transactions various modes of payment are practiced, among which the most popular are as follows:
by a bank transfer;
by a letter of credit;
for collection;
by drafts;
on an open account.
Sometimes mixed terms are practiced. That depends on the value of the goods, volume of the goods, time of delivery and many other factors.
1. Ten percent of the total sum should be paid in advance by telegraphic bank transfer.
2. Fifty percent of the total sum should be paid by telegraphic banker's transfer within 30 days after your bank receives shipping documents.
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3. Forty percent of the total sum should be paid by drafts at 90 days' sight.
Sample of an Offer
BATTERIES INTERNATIONAL Ltd
123 Park Lane, CRISPEN, NY, 11456
Tel. (215)-436 578 Fax. (215)-436-579
Mr. Fred North, Purchasing Manager, Broadway Autos
134 Oak St., Angel City, NY, 11435
Your ref.
Our ref. 56 NMB 98
November 11, 1998
Dear Mr. North,
Thank you very much for your enquiry. We are of course very familiar with your range of vehicles and are pleased to inform you that we have a new line in batteries that fit your specifications exactly.
The most suitable of our products for your requirements is the Artemis 66A Plus. This product combines economy, high power output and quick charging time and is available now from stock,
I enclose a detailed quotation with prices, specifications and delivery terms. As you will see from this, our prices are very competitive. I have arranged for our agent Mr. Martin of Fillmore S. A. to deliver five of these batteries to you next week, so that you can carry out the laboratory tests. Our own laboratory reports, enclosed with this letter, show that our new Artemis 66A Plus performs as well as any of our competitor's product and, in some respects, outperforms them.
If you would like further information, please telephone or telex me: my extension number is 776. Or you may prefer to contact Mr. John Martin of Fillmore S. A in Madison; his telephone number is 01 77 99 02.
I look forward to hearing from you.
Yours sincerely,
Fred Stock
GENERAL MANAGER
Practice
Task 1. Read the telephone conversation below and prepare a letter of inquiry from the director of the hotel and a letter of offer from the firm for 50 refrigerators.
– Sundel, Electrotech Sales Manager. Can I help you?
– Good afternoon, Mr. Sundel. This is Mr. Hart from Santina Hotel speaking. Have you got refrigerators IPD Model 245?
– Yes, we have, but we are heavy with the orders on this model.
– What is its price?
– Its retail price is $460 per unit.
– What is the discount for a lot of 100 units?
– Usually we give a 5 % discount.
– Is there a discount if I pay cash?
– I am not sure. I should consult our Financial Manager.
– What is the minimum term of delivery?
– A month.
Use for your letter the word-combinatiopns listed below:
We are pleased to learn your interest in…
We are most pleased that you want to buy…
We are glad to say that we can reserve you…
It is generous of you to take so much interest in our work…
We take pleasure to send you the desired samples and offer…
As to your inquiry of … we are informing you that…
We enclose our catalogue with the latest price-list.
Our detailed price-list will convince you in diversity of our assortment.
Our proposal is valid till …
We deliver our goods on CIF terms…
The price covers packing and transportation expenses…
We can give you a 5 per cent discount.
As you can see from our price-list, our prices are at least by 3% lover than market ones.
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