Unit 7 Quotation, Offers and Counter-Offers
Teaching Objectives：
•  Knowledge Requirements:
• 1 To enhance students’ awareness of basic
knowledge of quotation, offers and counter offers.
• 2 To enable students to become familiar with the
main contents of quotation, offers and
counter-offers.
•  Competence Requirements:
• 1 To read and translate letters of quotation, offers
and counter-offers.
• 2 To write effective letters on making an offer and
counter-offer.
Part One Brief Introduction
•
An offer is an expression of will from the exporter
to sell particular goods under the terms and conditions
stated (including quantity, prices, time of shipment,
terms of payment, etc.). The person making the offer
is called the offerer. The person to whom the offer is
made is called the offeree. In international trade, offers
can be divided into two kinds: firm offer and non-firm
offers. An offer is sometimes called a firm offer if it is a
definite promise to sell and the terms in the promise
will not be changed if it is accepted by a buyer within
the given validity time.
• It must be clear, definite, complete and final.
Non-firm offers are the ones which are not
binding on the sellers and the details of the
offers may change in certain situations.
• An offer letter usually includes the following:
• 1. An expression of thanks for the enquiry, if any.
• 2. Name of commodities, quality, and
specifications.
• 3. Price terms, discounts, commission and terms
of payment.
• 4. Packing and date of delivery.
• 5. The validity period of the offer (for firm offer).
• It is the buyer’s option to accept or reject or
counter-offer during the validity period. If the
buyer accepts, then it is a contractual
obligation. So no reputable seller would risk
his reputation by withdrawing his offer
before the stated or agreed time. When a
buyer rejects a quotation or other offer, he
should write and thank the seller for his
trouble and explain the reason for rejection.
Not to do so would show a lack of courtesy.
• The letter of rejection should cover the
following points. It should:
• 1. Thank the seller for his offer.
• 2. Express regret at inability to accept.
• 3. State the reasons for rejection.
• 4. Suggest other opportunities to do
business together.
• A counter-offer is an offer made in response to a
previous offer by the other party during
negotiations for a final contract. It is a partial or
full rejection of the original offer of the seller. In
counter-offer letters, the buyer may show his
disagreement to certain terms of the offer. To
convince the seller of his position, the buyer
should give proper reasons to support himself
and then state his own proposals. The seller has
the right of acceptance or refusal. In the latter
case, he may make another counter-offer of his
own. This process can go on for many a round
till a business is concluded or called off.
• A counter-offer usually covers the
following points:
• 1. Thank the offerer for his offer.
• 2. Express regret at inability to accept.
• 3. State reasons for non-acceptance.
• 4. Make a counter-offer.
• 5. Urge the offeree to accept the counteroffer.
Part Two Sample Letters
• Sample 1
• A Firm Offer
• American Max Import & Export Corp.
• San Francisco 562184 California, America
• Tel: 1-4510088 Fax: 1-4510089
• March 25, 2003
• Beijing Import & Export Corp.
• 254 Changan Road Beijing
• China
• Dear Sirs,
•
Thank you for your enquiry of March 17 for our
Butterfly brand bicycles. At your request, we are making
you the following offer subject to your reply reaching
here before April 16.
•
Item
Unit Price
•
011220 20”
US$25.00
•
011221 20”
US$27.00
•
011222 26”
US$26.00
•
011223 26”
US$28.00
•
Payment: By irrevocable Letter of Credit in seller’s
favor
•
Delivery Date: Within 90 days after receipt of your
order.
•
The above prices are on a CIF San Francisco basis.
Please note that commissions are not allowed but 6%
discount applies to orders for each item exceeding 1,000.
•
We manufacture and export 10
models of bicycles which are well known
for their solid frame, reasonable prices,
and attractive design. If you are interested
in other models, please see the enclosed
illustrated catalogue.
•
We look forward to your order.
• Yours sincerely,
• Manager
• Encl.
Sample 2
A Non-Firm Offer
• Beijing Import & Export Corp.
• Beijing 100092, China
• Tel: 010-64510000 Fax: 010-64510001
• June 1, 2003
• Australia Thomas Textiles Co., Ltd
• 2458 Empire Road, Sydney
• Australia
• Dear Sirs,
• Thank you for your enquiry of May 20. We are pleased to send you
samples and all necessary information on Bed Sheets under
separate cover.
• At your request, we are making you an offer, subject to our final
confirmation, as follows:
• Commodity: “Golden Fish” Brand Bed Sheets
• Price: US $ 12.00 /pc CIF Sydney
• Quantity: 5,000 pcs
• Shipment: August, 2003
• Packing: twenty pieces to a carton
• Terms of Payment: By 100% confirmed irrevocable Letter of Credit
in the seller’s favor payable by draft at sight to reach the sellers one
month before shipment, and remain valid for negotiation in Beijing till
15th day after shipment.
• We hope that the above will be acceptable to you, and await with
keen interest your formal orders.
• Yours faithfully,
• Manager
Sample 3
Acceptance of a Quotation Letter
• New Africa Import & Export Corporation
• Lagos 301257, Nigeria
• Tel: 234-7553126 Fax: 234-7553128
• November 5, 2002
• China National Import & Export Corporation
• 15th Floor, 864 Hongqiao Road
• Shanghai,China
• Dear Sirs,
• Thank you for your quotation of October 10 sending us patterns of
Blanket Covers. We find both quality and prices satisfactory and are
pleased to give you an order for the following items on the
understanding that they will be supplied from current stock at the
prices named.
• Quantity
Pattern No.
Price
• 300 pcs
72
US$ 25 per piece
• 450 pcs
82
US$ 26 per piece
• 300 pcs
84
US$ 28 per piece
• CIF Lagos
• We expect to find a good market for these products and hope to
place further and larger orders with you in the near future.
• Our usual terms of payment are cash against documents and we
hope they will be acceptable to you. Meanwhile should you wish to
make inquires concerning our financial standing, you may refer to
our bank—The National Bank of Nigeria, Lagos.
• Please send us your confirmation of sales in duplicates.
• Yours faithfully,
• New Africa Import & Export Corporation
• Manager
Sample 4
A Counter-offer
• Australia Thomas Textiles Co., Ltd
• Sydney, AZ158, Australia
• Tel: 0061-3562458 Fax: 0061-3562459
• June 15, 2003
• Beijing Import & Export Corp.
• 254 Chang’an Road Beijing
• China
• Dear Sirs,
• Thank you for your letter of June 1, offering us
“Golden Fish” Brand Handbags. However, we
regret to tell you that we find the price is too high.
• Information indicates that the same handbags
made in Australia have been sold at much lower
price. So if you were to reduce your price by 3%,
we might come to terms.
• Considering our long-standing business
relationship, we make you such a counter-offer.
We hope you take our suggestion into serious
consideration and give us your reply as soon as
possible.
• Yours faithfully,
• Manager
Sample 5
Declining the Counter-Offer
• Dear Sirs,
• Thank you for your letter of June 15, requesting us to allow you
a reduction of price by 3% for the captioned goods.
• Much as we fully appreciate your position and are always
willing to support you in your sales efforts, we regret to say that
the price we quoted have reflected the furthest we could go. As
you know, we operate in a highly competitive market in which
we have been forced to cut our price to the lowest level. Thus, it
will not be possible for us to accommodate your request for a
price reduction. We hope that you can take into consideration
the excellent quality of these products and the great popularity
they enjoy in your market and accept our favorable quotation as
early as possible.
• We look forward to your order and the opportunity of doing
business with you.
• Yours faithfully,
• Manager
Summary
•
Offer and counter-offer play essential roles
in the process of foreign trade. Therefore it is of
great significance for us to learn to write letters
appropriately regarding this aspect. Much
attention should be paid to the contents of an
offer and its counter-offer and great importance
should be attached to the writing skills of this
part during the study.
Mode of an offer
Mode of a counter-offer
Exercise
•
•
•
•
Exercise I
Exercise II
Exercise III
Exercise IV
I. Directions: Correct the following mistakes.
•
•
•
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•
•
•
•
1. We feel regrettable that we can’t make you an offer at
present.
We feel regretful that we can’t make you an offer at present.
2. This company exports a large number of wool every year.
This company exports a large amount/quantity of wool every
year.
3. Since our products enjoy high reputation in the world
market, it is reasonable that the price quoted by us is higher
than others.
Since our products enjoy high reputation in the world market,
it is reasonable that the price quoted by us is higher than that
of others.
4. We are not available for export.
We have no available goods for export. Or: There are no
goods available for export.
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5. Our company trades in many countries for
porcelain.
Our company trades in porcelain with many
countries.
6. There are three commissions left unpaid.
There are three items of commission left unpaid.
7. Wool is one of the chief exporters of Australia.
Wool is one of the chief exports of Australia.
8. Can you supply us this size of shoes?
Can you supply us with this size of shoes?
II. Directions: Fill in the blanks with proper words.
• （A）
• Dear Sirs,
• We are in receipt of your letter of March 21 and, as
requested, are airmailing you, under separate cover,
one catalogue and samples for our cotton shirts. We
hope they will reach you in due course and will help
you in making your decisions.
• In order to start a concrete transaction between us, we
take pleasure in making a special offer, subject to our
final confirmation .
• We trust the price and quality will be acceptable to
you and await with keen interest your trial order .
• Yours truly,
• （B）
• Dear Mr. Peter,
• Thank you for your enquiry of April 3 about our
coats for men and women.
• We have pleasure in enclosing our latest
catalogue and price list. We hope you will find it
of interest.
• If you require any further detail, please do not
hesitate to contact us.
• Yours truly,
• Manager
• Encl.
III. Directions: Please translate the following sentences
into English.
• 1. 现向你方报实盘，以你方6月15号复到为条件。
• We are making you a firm offer, subject to your reply reaching
us before June 15.
• 2. 我方一客户对你方产品感兴趣并希望能得到对下列商品的报价。
• One of our clients are interested in your products and wishes to
have your quotations for the goods below.
• 3. 欣然收到你方三月三日的询盘，现确认今晨回电如下。
• We were very pleased to receive your inquiry of March 3 and
now confirm our cable of this morning, as follows.
• 4. 如订购2000台以上，准备特价报盘，每台9.15美元即给5%的
折扣。
• On condition that you take more than 2000 sets, we are
prepared to offer this special price of $ 9.15 per set, a 5%
discount.
• 5. 若此报盘五天内不接受，就做撤销。
• This offer must be withdrawn if not accepted within five days.
• 6. 当我们恢复报盘时，我们当立即去电与你方联系。
• If you can’t accept, please make a best possible counteroffer.
• 7. 我们的钢笔价格是每打6美元纽约到岸价。
• The price of our pen is US$ 6 CIF New York.
• 8. 若贵方价格能降低5%，我们将向你方大量订购。
• If your price were reduced by 5%, we would place a
large order with you.
• 9. 在与同类产品比较之后，我方认为你方报价偏高。
• After careful comparison with similar goods, we find your
offer in the high side.
• 10. 若无法接受，请尽力给一个好的还盘。
• As soon as we are in a position to make offers, we shall
contact you without delay.
IV. Directions: Write letters according to the
information given below about offer and counter-offer.
• An Offer
• 敬启者：
• 为复你方4月8号询价，现报价如下，以我方最后
确认为准：
• 4000台激光打印机，每台100美元纽约成本、运
费加保险净价，规格见附页，船期八九月。付款
要求以保兑的不可撤消的信用证凭即期汇票支付，
在装船前30天开出。另邮寄去各种规格的样品及
所需要的小册子。
• 若觉得上述报盘可接受，请来电以便我方确认。
• Key:
• Dear Sirs,
• In reply to your enquiry of April 8, we are giving you an
offer, subject to our final confirmation, as follows:
• Commodity: Laser Printer
• Specifications: As per attached list
• Quantity: 4000 sets
• Price: US$ 100 net per set CIF New York
• Shipment: August/September
• Payment: confirmed, irrevocable letter of credit payable
by draft at sight to be opened 30 days before the time of
shipment.
• Under separate cover, we have sent you samples of
various sizes and the brochure required.
• If you find the above acceptable, please fax us for
confirmation.
• Yours truly,
• A Counter-Offer
• 敬启者：
• 你方4月26日有关激光打印机的报盘收悉。
• 我们很抱歉地告知，我们的客户认为你方的价格
偏高，现在订购有些犹豫。虽然我们欣赏你方激
光打印机的设计和款式以及你们处理我们询盘的
方式，但由于竞争者正报给更低价，所以我们无
法接受你方报价。
• 若贵方价格能降低10%，我们将向你方大量订购。
• 盼佳音。
• Key:
• Dear Sirs,
• Thank you very much for your offer of April 4 for
our Laser Printer.
• We regret to inform you that our clients find your
price on the high side and hesitate to place
orders. Although we enjoy the design and style
of your Laser Printer and the way you have
handled our inquiry, we are not in a position to
accept your offer at the price quoted, since the
competitors are quoting a lower price.
• If your price were reduced by 10%, we would
place a substantial order with you.
• We are looking forward to your favorable reply.
• Yours faithfully,