CURS 3: Business Letter Writing

 The Enquiry and the Offer

 The Enquiry

 the most frequently used letter is the enquiry, also called the “first time letter”

 can also be made by telephone, fax or e-mail or printed enquiry forms

 most letters of enquiry are short and simple, so that many firms have adopted the practice of sending printed
enquiry forms, thereby eliminating the need for a letter

 if you need to give more information about yourself or ask the supplier for more information , you have
to write a letter

 the contents of the letter will depend on:

 how well you know the supplier

 whether your supplier is from your own country or abroad
 the type of goods you are inquiring about

 it could be written with respect to an item that a person is interested in buying , a course that a person
wants to study, a vacation trip that a person wants to go on, etc.

 as the sender needs information about something, the enquiry letter must mention the contact details of the
sender where the said information has to be sent

 it must contain the particulars of the thing enquired about

 it must also list down all the aspects of the thing about which the sender wants detailed information

 Enquiry Letter Writing Tips

 it should be written like a formal letter

 it must include the sender’s contact details, address or email address

 it must contain all the aspects of the enquiring item

 add the subject of the letter precisely to give some idea of what will be discussed in the letter

 it should be written concisely and clearly

 mention the reason and enquiry details

 write specifically about the design, size, quantity, quality , etc. about the product or service in which the buyer
is interested

 the period or the date, till which information is required , may also be mentioned

 Guidelines for enquiries

 state clearly and concisely what you want - general information, a catalogue, price list, sample, quotation , etc.

 if there is a limit to the price you are prepared to pay for the goods, do not mention it, otherwise the supplier
may raise the quotation to the limit you state

 most suppliers state their terms of payments when replying so there is no need for you to ask for them unless
you are hoping for special discounts

 keep your enquiry brief and concise

  The general enquiry

 a general enquiry is a request for:

 catalogues
 the latest price list
 samples, specimens
 The specific enquiry
 a specific enquiry is a request for:

 a quotation
 the latest price
 terms of payment
 discount for prompt cash
 discounts made for large orders
 a pro-forma invoice

 The Structure of an Enquiry

Subject Line
 should inform the reader that this is an enquiry or request

 examples:

* Enquiry about Textbooks

* Request for Brochure
* Query about Website
* Question regarding Product Components

 A first enquiry should include:

 a. a brief mention of how you obtained your potential supplier’s name

 your source may be a chamber of commerce, an embassy, a consulate ;

 you may have seen the products in a trade fair or an exhibition;
 you received a recommendation from a business partner;
 an advert in the mass media or the Internet
 Examples

 “Your name has been given us by the British Chamber of Commerce in Hamburg…”

 “You were recommended to us by the Timişoara Chamber of Commerce and Agriculture”

 “The British Embassy in Copenhagen has advised us to get in touch with you concerning …”

 “We saw your products demonstrated at the Hannover Fair earlier this year, and would like to know whether…”

 “We have seen your advertisement in last Sunday’s Observer, and would be grateful if you would let us have
details of …”

 “You were recommended to us by Mr John King, of Lawsom & Davies, Merchant Bankers ...”
 b. tell your supplier what sort of organization you are:

 “We are a co-operative wholesale society based in Zürich.”

 “Our company is a subsidiary of Universal Business Machines and we specialize in ...”

 “We are one of the main producers of industrial chemicals in Germany, and we are interested in ...”
 c. some indication of the demand in your area for the goods which the supplier deals in
 “There is a brisk demand here for high-quality sports shirts of the type you manufacture”
 “There is no market here for articles of this type in the higher price ranges, but less expensive models sell very
well throughout the year.”

 “You can count on a brisk turnover if prices are competitive and deliveries prompt.”

 “Demand for this type of machine is not high, but sales this year will probably exceed …”
 d. details of what you would like your prospective supplier to send you
 this paragraph tells the reader why you are contacting his or her organization, and gives further details of the
enquiry

 normally you will be interested in a catalogue, price list, discounts, methods of payment, delivery times ,
and samples
 Examples

 “Will you please let us have your most advantageous quotation for 5 lathes.”

 “We would be grateful if you would send us your latest catalogue/price list/brochures.”

 “We should be pleased to receive your folders and prospectuses”

 “We are also interested in your terms of payment and in discounts offered for regular purchases and large orders.”

 “We would appreciate a sample of each of the items listed above.”

 “We would also appreciate if you could send some samples of the tools so that we can examine the material and
quality.”
 e. make suggestions for obtaining advantageous terms based on potential mutual advantages
 “If your prices are competitive we shall probably give you large orders.”

 “As we anticipate a considerable demand for such goods we should require a quantity discount.”

 “As we hope we shall attain a considerable turnover we trust you will quote us your lowest prices.”

 “Provided you can offer favourable quotations we will place regular orders with you.”

 “Could you let us know if you allow cash discounts?”

 “As we intend to place a substantial order, we would like to know what quantity discounts you allow.”
 f. a closing sentence to round off the enquiry

 this paragraph should contain a polite expression and/or an expression of thanks to the reader

 the degree of politeness (and therefore the length), depends on how unusual or difficult your request is
 Examples

 “We are looking forward to hearing from you.”

 “We would appreciate a prompt answer.”
 “We hope to hear from you shortly.”
 “An early reply will be appreciated.”
 “Since the season will soon be under way, we must ask you to reply by the end of this month.”
 “Hoping for a fruitful collaboration.”
 “We look forward for your reply.”
 “Finally, we would like to point out that delivery before Christmas is essential, and hope that you can offer us that
guarantee.”
 “If you can agree to the concessions we have asked for, we will place a substantial order.”

 you can also indicate further business or other lines you would be interested in
 if a supplier thinks that you may become a regular customer, they will be more inclined to quote competitive
terms and offer concessions

 If the product is satisfactory, we will place further orders with you in the future.

 If the prices quoted are competitive and the quality up to standard, we will order on a regular basis.

 Provided you can offer favourable quotations and guarantee delivery within four weeks from receipt of order, we
will place regular orders with you.
 Format of a letter of enquiry
 in the first paragraph, identify yourself and, if appropriate, your position, and your institution or firm

 in the second paragraph, briefly explain why you are writing and how you will use the requested information

 list the specific information you need; you can phrase your requests as questions or as a list of specific items of
information

 conclude your letter by offering your reader some incentive for responding

 Specimen letters
 Dear Sir/Madam,

 We learned from Favior of Orăştie that you are producing for export handmade bags in a variety of natural
leathers. There is a steady demand in this country for handbags of high quality, and although sales are not
particularly high, good prices are obtained.

 Please send me a copy of your latest catalogue with details of your prices and payment terms. It would also be
helpful if you could supply samples of the various skins in which the handbags are supplied.
 
 Yours faithfully

 Dear Sir/Madam,

 we are a large music store in the centre of Poitiers and would like to know more about the re-writable and
recordable CDs you advertise in this month's edition of 'Lectron'.

 Could you tell us if the CDs are leading brand names, or made by small independent companies, and whether they
would be suitable for domestic recording? We would appreciate it if you could send us some samples. If they are
of the standard we require, we will place a substantial order. We would also like to know if you offer any trade
discounts.

 Yours faithfully

 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.

 lf 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.

 Informative materials required by inquirers

 a leaflet is a single sheet of paper on which details on goods offered by a company are printed

 a folder contains information on goods offered presented on a sheet that is folded

 a brochure presents data contained on several pages stitched together

 a catalogue is a book with lists of goods that can be supplied by the issuing company, accompanied by prices,
illustrations, specifications

 a prospectus is a book published by a company giving details on services and goods offered for sale

 a sample is part of a whole shown as evidence of the quality of the goods offered for sale

 a pattern is a sample of a fabric; hence some companies offer pattern-books

 a quotation is the statement of a price demanded for a commodity

 Discounts
 discounts are sums of money usually expressed in percentages deducted from the price of goods in certain
circumstances

 a trade discount is allowed by manufacturers to wholesalers or by wholesalers to retailers

 a cash discount is allowed for prompt payment in cash

 a quantity discount is allowed for sizeable orders

 a loyalty discount is allowed when firms have a long time association

 Examples
 “We allow a 3% cash discount for payment within one month.”

 “The net price of this model is 170.00 Euro, less 10% discount for quantities up to 100 and 15% discount for
quantities over 100.”

 “We do not normally give discounts to private customers, but because of your long association with our company
we can offer you 12% off the retail price.”
 Incoterms
Group E = Departure
 indicate to what extent charges for freight, insurance etc. are included in the price quoted

 ex-works/ex-factory/ex-mill = price without any transport

 the seller delivers when he places the goods at the disposal of the buyer at the seller’s premises or another named
place (e.g. works, factory)

 the seller must bear all risks of loss of or damage to the goods and has to pay all costs until they have been
delivered
 Group F = Main carriage unpaid
 FCA (Free Carrier)

 the seller delivers the goods, cleared for export, to the carrier nominated by the buyer at the named place. The
seller must pay all costs relating to the goods and bears the risk of loss of or damage until they have been
delivered to the carrier

 FAS (Free Alongside Ship)

 the seller delivers when the goods are placed alongside the vessel at the named port of shipment. This means that
the buyer has to bear all costs and risks of loss of or damage to the goods from that moment

 FOB (Free On Board)

 the seller delivers when the goods pass the ship’s rail at the named port of shipment
  Group C = Main carriage paid

 CFR (Cost and Freight)

 the seller must pay the costs and freight necessary to bring the goods to the named port of destination but the
buyer must bear all risks of loss of or damage to the goods from the time they have passed the ship’s rail at the
port of shipment (price includes all costs up to the named destination, but not insurance)

 CIF (Cost, Insurance and Freight)

 the seller must pay the costs and freight and has also to procure marine insurance against the buyer’s risk of loss
of or damage to the goods during the carriage (price includes all costs including insurance, up to the named
destination)

 CPT (Carriage Paid To)

 the seller delivers the goods to the carrier nominated by him and must in addition pay the cost of carriage
necessary to bring the goods to the named destination. The buyer bears all risks and any other costs occurring
from the time the goods have been delivered.

 Group D = Arrival

 DDP (Delivered Duty Paid)

 the seller delivers the goods to the buyer, cleared for import, and not unloaded from any arriving means of
transport at the named place of destination. Whilst the EXW term represents the minimum obligation for the seller,
DDP represents the maximum obligation.

 DAP (Delivered At Place)

 the seller pays for the carriage to the named place, except for costs related to import clearance, and assumes all
risks prior to the point that the goods are ready for unloading by the buyer.

 DAT (Delivered At Terminal)

 the seller pays for carriage to the terminal, except for costs related to import clearance, and assumes all risks up
to the point that the goods are unloaded at the terminal
 DDP, CIF, EXW, FAS, FOB, FCA, CFR
 a. The buyer pays for insuring and transporting the goods from the moment they leave the factory

 b. The seller pays for delivering the goods to a depot and loading them on to trucks for the next stage of transport

 c. The seller pays for delivering the goods to a railway station and loading them on to waggons for the next stage
of their journey
 DDP, CIF, EXW, FAS, FOB, FCA, CFR
 d. The seller pays all transport and insurance costs until the goods reach the carrier and have been loaded for the
next stage of transport

 e. The seller pays transport and insurance costs until the goods are alongside the ship; the buyer pays for loading,
insurance and transport from then on

 f. The seller pays all transport and insurance costs until the goods have been loaded on to the ship at the port of
embarkation
 DDP, CIF, EXW, FAS, FOB, FCA, CFR
 g. The seller pays all transport costs to the port of destination, but the buyer is responsible for insuring the goods

 h. The seller pays all transport and insurance costs to the port of destination

 i. The seller pays all transport and insurance costs up to and including unloading the goods from the ship at the
port of destination
 DAP CFR CIF EXW FAS FOB
 a The buyer pays all delivery costs once the goods have left the seller's factory or warehouse.
 b The seller pays all delivery costs to the port.
 c The seller pays all delivery costs, except for import duty, to a named destination.
 d The seller pays all delivery costs to a named destination, except for insurance.
 e The seller pays all delivery costs to when the goods are on board ship.
 f The seller pays all delivery costs to a named destination.
 Points to remember

 letters of enquiry should clearly state the information required

 write specifically about the design, size, quantity, quality, etc. about the product or service in which the buyer is
interested

 the period or the date, till which information is required, may also be mentioned

 enquiries can be made by telephone, fax, e-mail; it is a brief enquiry, but for fuller ones write a letter

 give details of your own firm as well as asking for information from your supplier (prospective supplier)

 ask for samples if you are uncertain about the product and/or its quality

 close with a simple “Thank you” or “I look forward to hearing from you”

 1. Which of these are the most common type of business letters?

a) Letters of application
b) Letters of enquiry
c) Letters of order
d) Letters of adjustment

 2. Which of these is not a type of letters of enquiry?

a) General enquiries
b) Personal enquiries
c) Sales related enquiries
d) Status enquiries

 3. Which of these is not a letter of enquiry?

a) General enquiry
b) Status enquiry
c) Friendly enquiry
d) Sales related enquiry

 4. General enquiry letters do not result in any business return.

a) True
b) False

 5. Which of these seek information regarding purchase of a product?

a) General enquiry
b) Status enquiry
c) Sales related enquiry
d) Private enquiry

 6. What is the best way to seek information regarding finance?

a) Schools
b) Banks
 c) Shops
d) Post office

 7. Which of these details is not required in a letter of enquiry?

a) Mode of packing
b) Mode of payment
c) Mode of transport
d) Age of owner

 8. Where should the name and address of the firm writing the letter be mentioned in a letter of enquiry?
a) Top left corner
b) Top right corner
c) Bottom left corner
d) Bottom right corner

 Which of the following statements about enquiries do you consider to be correct?

 i. By writing enquiries, a buyer gets information about the prices of goods. TRUE AND FALSE

 ii. In enquiry letters the writer cannot ask for sample of goods.FALSE

 iii. The writer doesn’t give information about the quantity of possible purchases. FALSE

 iv. The seller supplies the relevant information to the buyer through such a business letter. TRUE

 v. The letter written in response to enquiry letters is called quotation letter.TRUE

 Replies to enquiries: offers
 Structure and presentation

 a company receiving an enquiry will answer it as soon as possible hoping to win over a new customer

 it will try to meet the inquirer's demands, being aware that the enquiry has been sent out to many potential
suppliers

 such a letter very often takes the form of an offer

 in an offer there are two parties: the offeror and the offeree
 Classification of offers

 from the point of view of their validity:

firm offers
offers without engagement

 from the point of view of who had the initiative for the offer:
solicited - reply to an enquiry
unsolicited offers - is written by the offeror on his own initiative

 a. thank the writer of the letter for his/her enquiry:

 "Many thanks for your enquiry of 22 August...“

 "We are pleased to have your enquiry about..."

 "I would like to thank you for your enquiry of 22 August..." ;

 “We thank you for your letter of 6 January, in which you enquire about …”

 b. supply all the information requested , and refer both to enclosures and to samples, catalogues and other
items being sent by separate post
 let the writer know as soon as possible if you have the product, or can provide the service s/he is asking about

 "We thank you for your enquiry and are pleased to inform you that we have a wide selection of the products you
are interested in.“

 "We thank you for your letter of 22 August and we are sending you the brochures you requested and our revised
price-list.“

 "We can offer door-to-door delivery services.“

 “We have pleasure in confirming that we can …”

 “We can offer you immediately …”

 c. provide additional information, not specifically requested by the customer, so long as it is relevant

 a simple answer that you have the goods in stock is not enough; mention one or two selling points of your
product, including any guarantees you offer

 "We think you have made an excellent choice in selecting this line, and once you have seen the samples we are
sure you will agree that this is unique both in quality and texture.“

 "Once you have tested the new Dacia Duster we know you will be impressed by its excellent performance and we
assure you that it is one of the most outstanding cars on the market today.”

 “ … samples of all our wax polishes.”

 “ …patterns of all our new silk fabrics.”
 “… a full range of samples”

 the first thing you’ll want to do is thank the customer or associate for their enquiry

 this lets them know that you have received their letter and have investigated their enquiry

 when you explain what action has or will be taken as a result of the enquiry, try to be brief and get right to
the point

 the recipient is interested in the answer to their inquiry, not much else

 Thank you for your enquiry about our newly developed range of fire safety and prevention products. I have
enclosed our most recent catalogue, and you will find that we have quite a comprehensive inventory, including our
most recently released range of construction related products.

 d. if you do not have the product the enquirer has asked for, it is either you offer an alternative or refer
him/her elsewhere:

 "The model has now been improved, its steel parts having been replaced by plastic, which is lighter, more durable,
and stronger.'‘

 "I regret to say that we no longer produce the items you asked, since we find there is no longer sufficient demand
for it. I am sorry we cannot be of help to you.“

 "We no longer manufacture this type of cotton garments, all our garments are now poly-cotton which needs little
ironing. However if you are still set on pure cotton, we advice you to contact Vegona Ltd. at...."

 once you’ve made it clear that you received the enquiry, have understood its question, and explained the action
taken or provided the answer required, you can let the customer know what other benefits they will receive from
doing business with your firm

 this is a great opportunity to sell your products or services, but don’t go overboard

 overselling will offend the reader, and may have the undesired effect of alienating them
 We offer our existing customers a 10% discount on all orders of products from our new range of construction
related products. We would be happy to extend this offer to you if you register an account with us before June 30,
2012, and additionally as a new customer you will receive a further 5% discount on your total order.

 e. conclude with one or two lines encouraging the customer to place orders and assuring him of good
service

 always thank the customer for writing to you; if you have not done so in the beginning of the letter, you can do so
at the end:

 "Once again we would like to thank you and would welcome any further points you would like us to answer.”

 "We hope to hear from you soon, and can assure you that your order will be dealt with promptly."

 the reply to an enquiry has acknowledged receipt of the enquiry, confirmed and explained what action was or will
be taken, and encouraged the customer or associate to take action

 in closing you would simply establish goodwill between yourself and the enquirer, and suggest contact

 I hope you will find the information I have provided useful. I would be happy to have one of our account
managers contact you with a view to establishing an account with us, or if you have any further questions about
our products or services, you may call me directly on 2255 4423 ext 001. Thank you for considering Newfangled
Safety Equipment Co. as your safety product provider, we look forward to doing business with you.

 Quotations

 in your reply to an enquiry, you may want to give your prospective customer a quotation

 quotation is the supplier’s written estimate which includes all applicable charges and taxes on the goods

 the price may or may not include other costs and charges such as transport, insurance, VAT

 prices which include these extra-costs are known as gross prices; those which exclude them are known as net
prices

 "We can quote you a gross price, inclusive of delivery charges £ 150 per 100 items. These goods are exempt from
VAT.“

 “The net price of this article is € 10, to which VAT must be added, making a gross price of € 11.9.”

 a company’s quotation is not legally binding, which means they do not always have to sell you the goods at the
price they quoted in their reply to an enquiry

 however, when prices tend to fluctuate (due to exchange rates), the supplier will add a provision to their
quotation, stating that their prices are subject to change

 “The prices quoted above are provisional, and we may increase our prices due to increased costs of raw
materials.”

 “The price of this car is 15,000 Euro at today’s rate of exchange.”

 Methods of payment

 when quoting terms, you may require or at least suggest several methods of payment: cash, cheque, letter of
credit, bill of exchange

 “If you send us your personal cheque for the amount quoted, we will then send the item by mail.”

 “We usually offer a 10 % trade discount and we prefer payment by money transfer.”
 “On receipt of a cheque for the amount quoted, we will send the article by registered mail.”

 “Payment for initial orders should be made by sight draft, payable at Den Norske Creditbank, cash against
documents.”
 “We are willing to consider open account facilities if you can provide the necessary bank reference.”

 Specimen letter
 Dear Mr. Radu,
 
 Thank you very much for your enquiry. You will find enclosed a catalogue giving detailed information about our
gardening devices and including the excellent results we have achieved in rigorous factoring and gardening tests.
Please note the items on safety and fuel economy which have proved the main selling points of these products.

 With regard to trade discounts, we are allowing 25 % off list prices for orders over 1,000.

 We will be pleased to supply any information you may need.

 Yours sincerely
 Specimen letter
 Dear Ms. Gal,

 I enclosed a catalogue and price list of our lawnmowers, as requested in your letter of 22 August.

 The machine bought by your acquaintance was a 38 cm BROWN, which is an excellent machine. You will find
details of the smaller size of 30 cm shown on page 10 of the catalogue. Alternatively, smaller than this is the CAT
JUNIOR shown on page 12.

 We have both these models in stock and should be glad to show them to you, if you would call at our showroom.

 Please contact me if you need any further help.

 Yours sincerely

 Dear Mr. Gerard,

 Thank you for your enquiry of 12 May in which you asked about the CDs we advertised in this month's edition of
'Lectron'.

 I can confirm that they are of high quality, and suitable for domestic recording. They are 'Kolby‘ products, a brand
name you will certainly recognize, and the reason their prices are so competitive is that they are part of a
consignment of bankrupt stock that was offered to us.

 Because of their low price, and the small profit margin, we will not be offering any trade discounts on this
consignment. But we sell a wide range of electronic and computer products and have enclosed a price list giving
you details of trade, quantity, and cash discounts.

 We have sent, by separate post, samples of the advertised CDs and other brands we stock, and would urge you to
place an order as soon as possible as there has been a huge response to our advertisement.

 Thank you for your interest.

 Points to remember
 a reply to an enquiry, besides telling your customer whether you can provide the goods he/she asks about, also
indicates what type of firm you are; whether you are aware, serious and efficient

 make sure that you do not leave out information and have supplied the documents that may help your
customer

 a reply to an initial enquiry is the first impression your customer will have of you

 check the reply to make sure you have answered all the customer’s questions, and included all the points
you wanted to make
 read the letter and ask yourself if you would order something from a supplier that has sent you the letter you have
written

 Points to remember

 in salutations, use the customer's name rather than Dear Sir / Madam

 let the customer know early in the letter whether or not you can help them

 make sure that you have supplied all the information you think will help your customer including, if relevant,
catalogues and price lists

 thank the customer for contacting you, and encourage further enquiries

 when giving a customer a quotation, in addition to the price quote transport and insurance costs , any
discounts, method of payment, and delivery date

 1. Quotations are letters of enquiry.

a) True
b) False

 2. Where is the name of the company inviting mentioned in an invitation of quotation?

a) Top left corner
b) Bottom left corner
c) Top right corner
d) Bottom right corner

 3. Where is the name of the company which is invited mentioned?

a) Top left corner
b) Top right corner
c) Bottom left corner
d) Bottom right corner

 4. Where is the courteous leave-taking mentioned in an invitation of quotation?

a) Top left
b) Bottom right
c) Top right
d) Bottom left

 5. Quotations are friendly letters.

a) True
b) False

 Choose the appropriate word

 Dear Mr. Brown,
 We were very pleased to receive your (correspondence / mail / enquiry) of 22 March, 2005, asking about our
leather and sheep skin (range / clothes / products) and terms of (dealing / conditions / trade).
 First, let me say that our (brand / label) is internationally famous, because of the quality of our garments, and we
are convinced they will sell very well through your (outlets / factories / warehouses). We think you will agree with
us when you look through the enclosed (manual / catalogue / leaflet) and examine the (specimens / examples /
samples) we are sending separately.
 We will also allow (trade / cash / quantity) discounts for orders over € 10,000, and with the usual trade
references we can arrange for payment by 60-day (bill / letter / draft) of exchange.
 Thank you once again for your enquiry, and we are sure you will be impressed by the (vast / huge / wide)
selection of our garments. If there are any further details you need, please contact us.
 Yours sincerely