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1、,Offers the difference between firm offers and non-firm offers; the legal binding effect of a firm offer; how to structure a letter to make an offer and a counter-offer; how to use the common expressions in this type of letter.,Chapter,5,Chapter 5,Discuss the following questions,1) What is an offer?
2、 2) What is a counter offer? 3) What is a firm offer? 4) What is a non-firm offer? 5) What is a quotation? 6) What are the differences between the above terms?,1,Starting up,Offer,An offer means submitting or furnishing details including prices, conditions and other related items needed for a contra
3、ct. Or, according to the United Nations Convention on Contracts for the International Sales of Goods, a proposal for concluding a contract addressed to one or more specific persons constitutes an offer if it is sufficiently definite and indicates the intention of the offeror to be bound in case of a
4、cceptance.,Example: an offer/a reply to an enquiry,Dear Mr.Brown, In reply to your letter of May 15th, we take pleasure in making you a special offer, subject to our final confirmation, as follows: Art.No. 81000 Printed Shirting Design No. 72435-2A Specifications: 30 x36x72x60 35/6”x42 yds Quantity:
5、 18 000 yds Packing: In bales or in wooden cases, at sellers option Price: USD per yard CIF3 Hamburg Shipment: To be made in two equal monthly installments, beginning from October, 2009. Payment: By confirmed, irrevocable L/C payable by draft at sight to be opened 30 days before the time of shipment
6、. We trust that the above offer will be acceptable to you and await with keen interest your first order. Yours sincerely, Wang HaoSales Manager,Firm offer/ non-firm offer, period of validity; all terms and conditions complete, clear and definite non-firm offers cannot be accepted, just an inducement
7、 to business, usually made by sending catalogues, pricelists, proforma invoice and quotations and so on.,Example: a firm offer,Dear Sir, Shaping Machines We were pleased to receive your enquiry of 12 July for our shaping machines. As requested, we offer firm, subject to your reply reaching here by 2
8、2 July, as follows: Name of commodity: OX brand shaping machine SL-035 Quantity: 50 sets Unit price: USD 100 000 per set CIF Los Angeles Date of shipment: On or before October 15, 2009 Terms of payment: By confirmed, irrevocable L/C payable by draft at sight Our shaping machines are reasonable in pr
9、ice and excellent in quality. All the machines can be guaranteed for one year, and we also provide spare parts and components and after-sale services to overseas customers. We hope this offer will turn out to your satisfaction and look forward to receiving your initial order soon. Yours faithfully,F
10、irm offer indicator,Example: a non-firm offer,Dear Sirs, We are in receipt of your letter of August 5, 2009, and we are willing to enter into direct business relations with you on the basis of equality and mutual benefit. As requested, we are enclosing our latest illustrated catalogue and quotation
11、sheet covering all our products available for export, subject to our final confirmation. Having specialized in spices business for about 20 years, we are well connected with leading suppliers in China and our commodities are very marketable in America, Canada, Japan, Korea and most of the European c
12、ountries. Now we are desirous of opening up the market in your country and are seeking an experienced agent in this field. If you are interested in any of our items, you may contact us directly. We can assure you of our most favorable prices and the finest quality. We are looking forward to your ear
13、ly reply. Yours faithfully,Non-firm offer indicator,Quotation,A promise to supply goods on the price and trade terms agreed upon by both parties. Note: price and trade terms only, without other terms or conditions.,Brain storm: a quotation? an offer?,Express promise to sell Detailed elements: price,
14、 packing, shipment,payment terms, etc. Our price is FOB Shanghai $100 M/T, subject to your reply within one week. Please refer to the pricelist attached for our price. I might be prepared to sell my dog to you for $10. I offer you this but I dont intend to be bound by anything if you accept.,Accepta
15、nce,a mirror model, which means, unconditional acceptance, without any discrepancies between what is offered and what is accepted, otherwise it is a counter offer. non material alterations are allowed nowadays by legal experts.,Counter Offer,an alteration Partial rejection to the original offer Coun
16、ter proposal Ends the original offer,Example: a counter-offer,Dear Sirs, Re: Cowhide Belts We have received your offer dated May 9 for the captioned goods.While we appreciate the fine quality of your products, we regret to inform you that our clients find your price much too high. Reliable informati
17、on indicates that some manufactures in China can supply the similar products and theirs prices are fairly reasonable and competitive as compared with yours. May we suggest that you make some allowance, say 10% on your quoted prices? We believe your reduction in prices would help us to push sales of
18、your belts in our market. We have been engaged in the leather products business for over 30 years and enjoy high prestige in this field. If you can grant us the discount, we trust this will be the beginning of our long and stable cooperation partnership. Wed highly appreciate your prompt reply. Your
19、s faithfully,Writing a Quotation,An expression of thanks for the enquiry; Details of prices, discounts and terms of payment; A statement or clear indication of what the prices cover ( trade terms); An undertaking as to date of delivery or time of shipment; The period for which the quotation is valid
20、, with an expression of hope that the quotation will be accepted.,Writing an Offer,An expression of thanks for the enquiry; Name of commodities, quality, quantity and specifications; Details of prices, discounts and terms of payment; A statement or clear indication of what the prices cover; Packing
21、and date of delivery; The period for which the offer is valid.,Writing a Counter offer,Thank the seller for his offer. Express regret at inability to accept. State reasons for non-acceptance; Make a counter-offer, if appropriate, or suggest other opportunities to do business together.,Bargain,1.卖方不论
22、利润高低,总是要坚称自己的报价利润很低,没利润,甚至低于成本(under the cost)。 2.买方的原则刚好相反,不论卖方价钱再低,总是还要嫌贵,或假称其它竞争者报价更低,或预算有限。 3.出了议价以外,买方也可能要求卖方在付款条件方面做让步,例如改用D/A等方式,或要求缩短交货期。,4.卖方在回复时,有四个选择 (1)不接受。原因例如: 品质较好,材料成本高, good quality, costly material 原料涨价, raw material cost has been raised 人工上涨, labor cost has been increased 货币升值, RMB appreciation/RMB has been appreciated 汇率浮动, fluctuation of the exchange rate 买方价格低于成本,(2)接受 无论价钱是否有很大利润,不要答应得太爽快。 (3)条件式接受 表示愿意接受对方的还价,但有条件,比如增加订购数量,或改变付款条件等 (4)折中还价 为表示诚意(to show our good faith),只象征性降一点价,如 要求降10%,愿意接受3%,买方还价函的写法,主题:先感谢卖方的报价及提供的相关信息,但很抱歉其价钱偏高,或比同行的报价高许多。
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