Commercial

correspondence

NGUYEN THI DUNG HUE

FALCUTY OF BUSINESS ENGLISH
FOREIGN TRADE UNIVERSITY
CELLPHONE: 0912042630
EMAIL: [email protected]
 5
ORDERS
 Placing an order
• Include a date and a reference number
• If made by telephone, a written order
must be accompanied, in either
compliment slip or covering letter
(preferable)
 Opening
 Make it clear that there is an order following
the letter
▶ Please find enclosed our Order No. B4521 for 25
‘Clearsound’ transistor receivers.
▶ The enclosed order (No. R154) is for 40 packets of
A4 copier paper.
▶ Thank you for your reply of 14 May regarding our
email about the mobile phones. Enclosed you will
find our official order (No. B4521) for...
▶ I would like to place a trial order for the ‘Letherine’
material we discussed at the trade show last
month. Please find enclosed...
 Payment
 Confirm the terms of payment
▶ As agreed you will draw on us at 30 days, D/A, with
the documents being sent to our bank, the National
Mercantile Bank...
▶ We would like to confirm that payment is to be made
by irrevocable letter of credit, which we have already
applied to the bank for.
▶ Once we have received your advice, we will send a
bank draft to ...
▶ .. and we agreed that payments would be made
against quarterly statements...
 Discount
 Confirm the agreed discounts
▶ We would like to thank you for the 30% trade
discount and 10% quantity discount you allowed us.
▶ Finally, we would like to confirm that the 25% trade
discount is quite satisfactory.
▶ .. and we will certainly take advantage of the cash
discounts you offered for prompt settlement.
▶ Although we anticipated a higher trade discount than
15%, we will place an initial order and hope that the
discount can be reviewed in the near future.
 Delivery
 Confirm the delivery date
▶ It is essential that the goods are delivered before the
beginning of November, in time for the Christmas
sales period.
▶ Delivery before 28 February is a firm condition of this
order, and we reserve the right to refuse goods
delivered after that time.
▶ Please confirm that you can complete the work before
the end of November, as the opening of the store is
planned for early December.
 Methods of delivery
 Tell your supplier how you want the goods
packed and sent.
▶ Please send the goods by express freight as we need
them urgently.
▶ Could you please ship by scheduled freighter to avoid
any unnecessary delays?
▶ ... and please remember that only air freight will
ensure prompt delivery.
▶ We advise delivery by road to avoid constant handling
of this fragile consignment.
 Packing
 Tell your supplier how you want the goods packed.
 Tell your supplier to mark the crates with a sign
▶ Each piece of crockery is to be individually wrapped in
thick paper, packed in straw, and shipped in wooden
crates marked and numbered 1 to 6
▶ The carpets should be wrapped, and the packaging
reinforced at both ends to avoid wear.
▶ The machines must be well greased with all movable
parts secured before being loaded into crates, which
should be clearly marked with your castle logo for easy
identification.
 Closing
▶ We hope that this will be the first of many orders we
place with you.
▶ We will place further orders if this one is completed to
our satisfaction.
▶ If our sales target are met, we shall be placing further
orders in the near future.
▶ I look forward to receiving your advice / shipment /
acknowledgement / confirmation.
 Acknowledging an order
 Write a letter to acknowledge an order as soon
as you receive it.
▶ Thank you for your order No. 338B which we received
today. We are now dealing with it and you may
expect delivery within the next three weeks.
▶ Your order No. 6712 is now being processed and
should be ready for dispatch by the end of this week.
▶ We are pleased to inform you that we have already
made up your order, No. 9901, for 500 bed-linen
packets, and are now making arrangements for
shipment to Rotterdam.
 Advice of dispatch
 Write to your customer to inform them after
you arrange shipment
▶ Your order, No. D/14, is already on board the SS Mitsu
Maru, sailing from Kobe on 16 May and arriving
Tilbury, London, on 11 June. The shipping documents
have been forwarded to your bank in London for
collection.
▶ We are pleased to advise you that the watches you
order – No. 12 – will be on flight BA 167 leaving
Zurich at 11.00, 9 August, arriving Manchester 13.00.
Please find enclosed air way bill the DC 16 and copies
of invoice A112, which you will need for collection.
 Advice of dispatch

▶ Your order, No. D/14, is being sent express rail-

freight and can be collected after 09.00 tomorrow.
Enclosed is consignment note No. 116, which should
be presented on collection. You should contact us
immediately if any problems arise. Thank you for
your order, and we hope we can be of further
service in the future.
Enquiry from a retailer to a foreign manufacturer
To: Satex S.p.A.
Subject: Sales enquiry
Dear Sir / Madam
We are a chain of retailers based in Birmingham and are looking for a
manufacturer who can supply us with a wide range of sweaters for the men’s
leisurewear market. We were impressed by the new designs displayed on your
stand at the Hamburg Menswear Exhibition last month.
As we usually place large orders, we would expect a quantity discount in addition
to a 20% trade discount off net list prices. Our terms of payment are normally
30-day bill of exchange, D/A.
If these conditions interest you, and you can meet orders of over 500 garments
at one time, please send us your current catalogue and price list.
We hope to hear from you soon.
Peter Crane
Chief Buyer
F. Lynch & Co. Ltd
Nesson House, Newell Street, Birmingham B3 3EL
Telephone: +44 (0)21 236 6571
Fax: +44 (0)21 236 8592
Email: [email protected]
Reply to Mr. Crane
Dear Mr Crane

We were pleased to receive your enquiry, and to hear that you liked our
range of sweaters. We can confirm that there would certainly be no
trouble in supplying you from our wide selection of garments.

We can offer you a quantity discount, which would be 5% off net prices
for orders over £2,000, but the usual allowance for a trade discount in
Italy is 15%, and we always deal on payment by sight draft, cash against
documents. However, we would be prepared to review this once we have
established a firm trading association with you.

Enclosed you will find our summer catalogue and price list quoting prices
cif London. We are sure you will find a ready sale for our products in
England, as have other retailers throughout Europe and America, and we
hope very much that we can reach agreement on the terms quoted.
Thank you for your interest. We look forward to hearing from you soon.

Yours sincerely
D. Causio
D. Causio (Sig.)
Sales Director
Covering letter by Mr. Crane
F. Lynch & Co. Ltd
Head Office
Nesson House
Newell Street
Birmingham
B3 3EL

Telephone: +44 (0)21 236 6571

Fax: +44 (0)21 236 8592
Email: [email protected]
www.lynch.com

Your ref: D/1439

Our ref: Order DR4316

9 March 20––
Satex S.p.A
Via di Pietra Papa
00146 Roma
ITALY

Attn. Sig. D. Causio

Covering letter by Mr. Crane
Dear Sig. Causio
Please find enclosed our official order, No. DR4316.
For this order, we accept the 15% trade discount you
offered, and the terms of payment (sight draft, CAD), but
hope you are willing to review these terms if we decide to
order again.
Would you please send the shipping documents and your
sight draft to Northminster Bank (City Branch), Deal
Street, Birmingham B3 1SQ.
If you do not have any of the items we have ordered
currently in stock, please do not send alternatives.
We would appreciate delivery within the next six weeks,
and look forward to your acknowledgement.
Yours sincerely
Peter Crane
Peter Crane
Chief Buyer
Enc. Order No. DR4316
 Acknowledging an order
 Satex acknowledges Mr. Crane’s order by email
To: Peter Crane
Subject: Your order DR4316
Dear Mr. Crane,
Thank you for the above order, which we are now
making up. We have all the items in stock and will
advise you about shipment in the next few days.

Daniele Causio
Sales Director
 Advice of dispatch

 Satex confirms by email that they have sent the

goods.
 This is a CIF transaction, on a d/p basis –
▶supplier pays cost, insurance, and freight;
▶when Mr. Crane receives the email, the Bank debits
his company account,
▶the shipping document will be sent to him so that the
goods can be collected.
 Advice of dispatch
To: Peter Crane
Subject: Your order DR4316
Dear Mr. Crane
We are pleased to tell you that the above order has
been shipped on the SS Marconisssa and should reach
you in the next 10 days.
Meanwhile, our bank has forwarded the relevant
documents and sight draft for $ 3,000, which includes
the agreed trade and quantity discounts, to the HSBC
Bank (City Branch) Birmingham.
We are sure you will be very satisfy with the
consignment and look forward to your next order.
Best wishes
Daniele Causio
Sales Director
 Delays in delivery
 Inform your customer as soon as possible of
any delay by email/fax.
 State what has happened, how it happened
and what you are doing to put it right.
 Delays in delivery
▶ I was surprised and sorry to hear that your consignment
(Order No. 14) had not reached you. On enquiry I found
that it had been delayed by a local dispute on the cargo
vessel SS Hamburg on which it had been loaded. I am
now trying to get the goods transferred to the SS
Samoa, which is scheduled to sail for Yokohama before
the end of this week. I shall keep you informed.
▶ I am writing to tell you that unfortunately there will be a
three-week delay in delivery. This is due to a fire at our
Greenford works which destroyed most of the
machinery. Your order has been transferred to our
Slough factory and will be processed there as soon as
possible. I apologize for this delay, which is due to
circumstances beyond our control.
 Delays in delivery
▶ We regret to inform you that there will be a delay in
getting your consignment to you. This is due to the cut
in supplies from Libya, where, as you may be aware,
civil war broke out last week. We have contacted a
possible supplier in Lagos and he will let us know if he
can help us. If you wish to cancel your order, please let
us know as soon as possible. However, I think you will
find most manufacturers are experiencing the same
difficulties at present.
 Refusing an order
 Be polite when you must refuse an order.
 Use decline or turn down instead of reject and
refuse.
 Common reasons
▶ Out of stock
▶ Bad reputation
▶ Unfavorable terms
▶ Size of order
 Refusing an order
 You may be out of stock, or no longer produce,
but you can sell an alternative!
▶ We are sorry to say that we are completely out of
stock of this item and
▶ We no longer manufacture this product as demand
over the past few years has declined
 Your customer may have a bad reputation
▶ We would only be prepared to supply on a cash basis
▶ We only supply on payment against pro forma invoice
▶ Size of order
 Refusing an order
 You may not like the terms asked for
▶ Delivery cannot possibly guaranteed within the time
given in your letter.
▶ Two months must be allowed for delivery as we are
dependent on our suppliers for raw materials.
▶ It would be uneconomical for us to offer our products
at the discounts you suggest as we work on a fast
turnover and low profit margins.
▶ The usual trade discount is 15%, which is 5% lower
than the figure mentioned in your letter.
▶ We only accept payment by letter of credit.
▶ Our company relies on quick sales, low profits, and a
fast turnover, and therefore we cannot offer long-term
credit facilities.
 Refusing an order
 Size of order
▶ We are a small company and could not possibly
handle an order for 20,000 units.
▶ Unfortunately, our factory does not have facilities to
turn out 30,000 units a week.
▶ We only supply orders for ballpoint pens by the gross,
and therefore suggest you try a wholesaler rather
than a manufacturer.
▶ The shirts we manufacture are sold by the dozen in
one colour. I regret that we never sell individual
garments.
 Refusing an order
 Example email
To:
Subject: Order No. HU 14449

Thank your for your order, No. HU 14449, which we

received today. Unfortunately, we can not offer the
35% trade discount you asked for. 25% is our
maximum discount, even on large orders, as our prices
are extremely competitive. Therefore, I regret that we
have to turn down your order.

Nguyen Van Teo

 Points to remember
 Send a cover letter with an official order
 Acknowledge the arrival of orders as soon as
possible
 When original documents are needed, you can
not send by fax or email
 Inform customers immediately when there is a
problem with delivery, apologize for the
inconvenience
 Be polite when refusing an order, generalize the
terms used in your letter.