UNIT 8.- WRITING Warm up questions.

QUOTATIONS AND ORDERS

- What are the advantages of quoting prices? - For both the buyer and the supplier, what are the advantages of written quotations versus quotations provided by phone? - What is the next step once you have found the most convenient quotation?

Skills objectives
- To look for the important details of an inquiry in order to respond correctly. - To organise the information of a quotation or order into a concise list that is easy to follow. - To infer information about the people writing from their style and the language they have used.

Language focus.
- Using common language and structures used in quotation letters and order forms: Imperative forms - Would - Simple present and Present Progressive. - Informal writing styles in e-mails and instant messages. - Writing organised and easy-to-read letters. - Choose the best quotation and place an order.

Business tasks.
- Inquiry about products and prices, discounts, delivery, payment terms, shipping, . - Respond to inquiries. - Requests for quotations. - Quote products, prices and shipping terms. - Order by mail or e-mail. - Use a form letter/ purchase order + cover letter to place an order. Order form
Advertisement /letter/ catalogue

Request letter

Respond to request

Request for quotation Quotation

Place an order

Order Acknowledgement

VOCABULARY.
Difference between quotation and budget. Budget: Finance and Account. An account of profitable future income (money coming in) and expenditure (money going out) during a stated period, usually a year, used as a guide in making financial arrangements. Quotation: Commerce. A statement of the current price and the conditions upon which a supplier is willing to sell, or upon which services may be performed.

Estimate: synonym for quotation, a statement of probable cost of supplying certain stated services, made in hope of getting an order

goods or

Gross price / Net price.- Prices+ other costs and charges (delivery, transport, insurance, taxes/ VAT), prices which include all these extra costs are known as GROSS PRICES. Those which exclude them are known as NET PRICES International Chamber of Commerce (Cmara de comercio) Incoterms: set of terms of delivery in overseas contracts

1.- REQUEST FOR QUOTATION.

- Letter requesting information about specific items or services you are interested in. - Models of quotation inquiries. - Frequently used expressions and vocabulary. - Opening and closing sentences. Models for quotation inquiries a) Using tables b) As a letter a) Using tables Please quote your best prices for the following items/articles Catalogue Quantity Model Item

b) As a letter.(Possibility of including a reference line: We have received your letter and catalogue of 23 rd March and would like you to send me the following information.) Opening: . Please quote . Please send me a quotation for .... . Please send me your export prices for ... . Your quotation of ................ would be appreciate Body: . State delivery dates and payment terms . We require delivery within two weeks of order. . Do you make a discount for large quantities? . Can you send samples of ........? . Please send us full details of your prices, payment terms and earliest delivery dates. Closing: . We would like to have the informationn by the end of the week. . We expect to place a large order if your prices are competitive . We are looking forward to receive this information 2.- QUOTATION LETTERS.- A supplier or seller states which goods are available, at what price and under what terms. - Guidelines for writing quotations: Opening and closing sentences - Frequently used expressions and vocabulary. - Answer to a specific inquiry - Present as a letter. Layout - State details of: Prices Discounts Delivery dates Terms of payment Period of time for which the quotation is valid Taxes included or not. Opening sentences . With reference to your inquiry/ letter of September 20 th, we quote these prices/ the following prices. . Thank you for your letter of July 10th. The prices of the articles you are interested in are as follows: . With reference to your inquiry of July 10th and as requested, we quote the folowing prices for the articles you are interested in:

About prices Continue the information as a table or in the body of the letter itself: ...shirts cost $15.20 each and ties $10.45 for orders over 100 units. VAT is included in the prices stated VAT is not included..... When prices tend to fluctuate, the supplier will add a provision to their quotation stating that their prices are subject to change. If the company makes a firm offer, it means they will hold the goods for a certain time until you order, e.g firm 14 days. - The prices quoted above are provisional since we may be compelled by increased costs of raw material to increase our prices to customers. I will infrom you inmediately if it happens. - We can offer you a price of $6.29 per item, firm 21 days, after which the price will be subject to an increase of 5%. About delivery.- We can send / supply articles inmediately from stock - Allow at least two weeks for delivery. - We regret that we cannot supply ......... as they are out of stock - As there is a heavy demand at this time of year for ........... you will have to allow at least six weeks for delivery. - ......and we are pleased to say that we can deliver by December 1 st. - Goods will reach you within the time you specified. - We have the materials in stock and will send them inmediately we receive your order. About discounts.- We allow 5% discount for orders over....... units - We allow 5% further discount for payment within 30 days - We allow 10% discount for payment in cash -The net price of this model is 7.50 less 10% discount for quantities up to 100 and 15% discount for quantities over 100. About terms of payment.Giro.- The postal cheque system is run by the Post Office and allows customers to send payments to anyone whether they have a Giro account or not. Cheque.- You must have a current account or certain types of saving accounts to pay by cheque. Cheques can be open, to pay cash, or closed (crossed), to be paid into an account. COD Cash On Delivery Collect On Delivery

Bank transfer Credit period: 60 days L/C Letter Of Credit. Banking and Commerce A letter from one party usually a bank, to another party, usually also a bank, by which a third party, usually a customer named in the letter, is given the right to obtain the money, credit or goods he may need, up to a state value, for which the writer of the letter takes responsibility. This method of payment can be used internally but it is more common in overseas transactions Bill of exchange. (letra de cambio): usually drawn in a set of two or three parts numbered First of Exchange, Second of Exchange, etc., all of which bear the same wording except that each mention the other1(s). Payment is made on presentation of any one of these parts. FOB Free On Board (named port of shipment e.g where the goods are leaving from) The sellers price includes all charges and risks up to the point where the seller delivers the goods on board the ship named by the buyer at the named port of shipment. From that point all charges and risks have to be borne by the buyer C&F Cost and Freight (named port of destination e.g the port the goods are going to) Freight: The carrying of goods especially by water, in USA also by air or road.

CIF Cost Insurance and Freight (named port of destination) About the period of time for which the quotation is valid.- Our prices are valid for 30 days - We maintain these prices only for 30 days. Closing sentences: - We look forward to receiving your order - We will be pleased to receive your order - We hope you will find our prices and terms attractive. 3.- ORDER LETTERS / COVERING LETTER+ ORDER FORM

- An order is when a client accepts a certain number of goods or services at given terms. An order is the mean that customers have of purchasing goods and services by mail or by fax. - Guidelines for writing orders: An order letter Covering letter + order form (Purchase order) - Frequently used expressions and vocabulary Orders are usually written on a companys official order form which has a date and a reference number that should be mentioned in any correspondence which refers to the order. Even if the order is telephoned, it must be confirmed in writing. The covering letter allows you the opportunity to make any necessary points and confirm the terms that have been agreed. It is necessary to say that there is an order accompanying the letter. Opening sentences: . We thank you for your letter / quotation of ... . The prices quoted in your letter are satisfactory... - We enclose our order for ... . We enclose our purchase order for ... . Please arrange to deliver these products: ... . Id would be grateful if you could send me the following items. . Thank you for your reply of 14 May regarding the cassetes we wrote to you about. Enclosed you will find our official order. BODY Confirm payment: . 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. Confirm discounts: . We would like to thank you for the 15% trade discount and 5% quantity discount you allowed us. . Finally, we would like to say that the 25% trade discount is quite satisfactory. Confirm Delivery: . It is essential that the goods are delivered before the beginning of November in time for the Christmas rush. . Delivery before February is a firm condition of this order, and we reserve the right to refuse goods delivered after that time. Closing sentences: . We would appreciate prompt delivery. .Please confirm delivery by ... . We hope to receive ... . If the goods sell as well as we hope, we shall send further orders in the near future. . We look forward to receiving ... . We are looking forward to receiving ... . I look forward to receiving your acknowledgement.

What is a quotation and when to use it ?

In business, a quotation is a document that a vendor or service provider would give to a customer to describe specific goods and services that they may provide and its cost. Besides the term quotation, it can also be referred by other terms like Bid, Quote, Estimate, Tender & Proposal . You would normally prepare a quotation or estimate upon request by a customer.

How To Write A Quotation or Estimate And What To Include On It

Basically you can divide the quotation into 3 main parts : The Header, Body and Footer. The following is some basic information that you can include in your quote.

1. Quotation Header (Top Part)

Your letterhead : Your business name, address, telephone & email and web address if available. In some countries, you must also included your business registration number. The words Quotation, Quote ,Estimate or your preferred term clearly written towards the top of the page. If you are registered to bill and collect tax, you may also need to include your Tax Registration Number. This can usually be indicated just below the words Quotation or at your letterhead. The Quotation Number. This a running serial number that you maintain. You should only have one number per quotation issued. Hence, no 2 quotations should have the same number. The Quotation Date. Your Payment Terms or how soon you expect to be paid. Some example include : COD, Cash, Cash on Delivery, 30 days, Full Payment on Delivery, 50% To Start, balance on completion . The payment terms can also be placed on the footer if preferred. Your Customer or Client Name and Address.

2. Quotation Body (Middle Part)

A description of the goods you are supplying, quantity, unit of measure, price per unit and total amount for individual items. In the case of services, your scope of work and amount for individual items. It is important to be as specific as possible to avoid confusion and misunderstandings between the vendor and the customer. If it will help make things clearer, you may need to add drawings or specification etc in attached sheet or sheets.

3. Quotation Footer (Bottom)

Total Amount of all individual items. If applicable, a tax amount and total after tax. Validity of the Quote. For example This quote is valid for 60 days Other comments you may have like delivery instructions, goods return policy, overdue payment policy etc. If necessary, you can also seek legal advise when drafting the terms and conditions for your quotation. Your business authorised signature if necessary Options for customer to sign and stamp if your quote is accepted (this is optional)