商务交际与谈判lecture2-2.pptVIP

Lecture 2 Price negotiation (2) Quotations, Firm Offers and Counter-offers, Orders Concepts Examples quotation A response to enquiry A quotation usually includes: 1. An expression of thanks for the enquiry 2. Details of prices, discounts, and terms of payment 3. A statement of clear indication of what the prices cover (e.g. freight, insurance, etc.) 4. An undertaking as to date of delivery or time of payment 5. The period for which the quotation is valid 6. An expression of hope that the quotation will be accepted Firm Offer A firm offer is a promise to sell goods at a stated price, usually within a stated period of time. It must be clear, definite, complete and final. It usually includes: the name, price, quality and quantity of the goods; The date of delivery and/or the time of shipment The terms of payment The validity of the offer Other things concerned, such as packing, discount, insurance, etc. Difference between quotations and firm offers Quotation can be withdrawn by the seller without previous notice. A firm offer, although not a contractual obligation, cannot be withdrawn by the seller within its validity. It is the buyer’s option to accept or reject or counter-offer during the validity period. If the buyer accepts an offer, then it is a contractual obligation. So no reputable seller would risk his reputation by withdrawing his offer before the stated or agreed time. How to reject a quotation or offer? A letter of rejection should cover the following points: Thank the seller for his offer. Express regret at inability to accept. Make a counter-offer if it is appropriate. Suggest other opportunities to do business together. Sample letter 1 Dear Mr. Lim,Quotation No. 12345 Thank you for your letter of 23 Oct. In response we are pleased to quote for these items as follows:Photo grade A paper @ $36 per dozenPhoto grade B paper @$24 per dozen Photo grade C paper @ $12 per dozen Our terms are 7% for all orders valued at $3000 and above