Professional Documents
Culture Documents
Letters of enquiry
An enquiry can be made by telephone, telegram or letter. If you need to give more information or
askthe supplier for more information, you will need to write a letter.
Methods of enquiry:
1. Asking for catalogues, brochures, booklet, and leaflet
2. Asking price lists
3. Asking prospectuses
4. Asking for details
5. Asking for samples
6. Asking for demonstration
7. Asking for/ suggesting terms and methods of payment
8. Asking for discounts
9. Asking for samples
10. Asking for goods on approval
11. Asking for goods on sale or on return
12. Asking for an estimation or tender
Questions:
1. What is an enquiry?
Answer :
A simple enquiry can be made by email, fax, or cable. The contents of an
enquiry will depend on three things: how well you know the sup- plier,
whether the supplier is based in your country or abroad, and the type of goods
or services you are enquiring about. There is a difference between asking a
computer company about the cost of installing a com- plex computer network
and asking a publisher about the price of a book.
Opening
Tell your supplier what sort of organization you are.
We are a co-operative wholesale society based in zurich.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...
how did you hear about the company you are contacting? It might be
useful to point out that you know their associates, or that they were
recommended to you by a consulate or trade association.
we were given your name by the hoteliers’ association in paris.
You were recommended to us by mr john king, of lawson & davies,
merchant bankers.
We were advised by spett. Marco gennovisa of milan that you are
interested in supplying...
The british consulate in madrid has told us that you are look- ing for an
agent in spain to represent you.
It is possible to use other references.
We were impressed by the selection of gardening tools dis- played on
your stand at this year’s hamburg gardening exhibition.
Our associates in the packaging industry speak highly of your zeta
packing machines, and we would like to have more information
about them. Could you send us...
Request for a
Prospectus :dear sir/madam
Y. Iwanama
a) Trade discount
A trade discount is the amount by which a manufacturer reduces the
retail price of a product when it sells to a reseller, rather than to the end
customer. The reseller then charges the full retail price to its customers in order
to earn a profit on the difference between the amount by which the manufacturer
sold the product to it and the price at which it then sells the product to the final
customer. The reseller does not necessarily resell at the suggested retail price;
selling at a discount is a common practice, if the reseller wishes to gain market
share or clear out excess inventory.
The trade discount may be stated as a specific dollar reduction from
the retail price, or it may be a percentage discount. The trade discount
customarily increases in size if the reseller purchases in larger quantities (such
as a 20% discount if an order is 100 units or less, and a 30% discount for larger
quantities). A trade discount may also be unusually large if the manufacturer is
trying to establish a new distribution channel, or if a retailer has a great deal of
distribution power, and so can demand the extra discount.
The amount which is deducted from the price list of the goods sold is
called a trade discount. The seller fixes up invoice price or sale price deducting trade
discount from the listed price. The trade discount is not accounted for.
Example :
Abc international offers its resellers a trade discount. The retail price for a green
widget is $2. One reseller orders 500 green widgets, for which abc grants a 30%
trade discount. Thus, the total retail price of $1,000 is reduced to $700, which is
the amount that abc bills to the reseller. The trade discount is therefore $300.
b) Quantity discount
A quantity discount is an incentive offered to a buyer that results in a
decreased cost per unit of goods or materials when purchased in greater numbers. A
quantity discount is often offered by sellers to entice customers to purchase in
larger quantities.
The seller is able to move more goods or materials, and the buyer
receives a more favorable price for them. At the consumer level, a quantity
discount can appear as a bogo (buy one, get one discount) or other incentives, such
as buy two, get one free the discount allowed by the seller to the buyer on the
amount crossing minimum target sales is called quantity discount i.e. after granting
a normal trade discount if the sale amount crosses the minimum target sale, the
seller grants an excess discount to the buyer.this excess amount of discount is called
a quantity discount. It is included in the cash discount which is shown on the
challan/invoice.
Example:
Retailers often get better deals if they order more of the same item. For example,
the cost per unit for t-shirts might be $7.50 per unit if less than 48 pieces are
ordered; $7.25 per unit if 49-72 pieces are ordered; or $7 per unit if 73 or more
pieces are ordered.
c) Cash discount
Cash discounts refer to an incentive that a seller offers to a buyer in return
for paying a bill before the scheduled due date. In a cash discount, the seller will
usually reduce the amount that the buyer owes by either a small percentage or a set
dollar amount.
The seller grants some amount as a discount to the debtor for the
realization of the outstanding sales within the term period of sales. This is called a
cash discount. The discount is a nominal account. The discount expense and
discount income are recorded on the debit side and credit side of the treble column
cash book respectively.Cash discounts are deductions that aim to motivate
customers to pay their bills within a certain time frame.A cash discount gives a
seller access to her cash sooner than if she didn't offer the discount.
Example:
An example of a typical cash discount is a seller who offers a 2% discount on
an invoice due in 30 days if the buyer pays within the first 10 days of receiving the
invoice. Giving the buyer a small cash discount would benefit the seller as it would
allow her to access the cash sooner.
https://www.researchgate.net/publication/258872772_an_introduction_to_inquiry
https://www.vocabulary.com/dictionary/enquiry
https://www.iedunote.com/discount-types
https://www.accountingtools.com/articles/what-is-a-trade-discount.htm
https://www.investopedia.com/terms/q/quantity-discount. .
https://www.investopedia.com/terms/c/cash-discount.asp.
http://dspace.onua.edu.ua/bitstream/handle/11300/907/nizhnikova
%20various.pdf;jsessionid=8186b0864e89a074d24a87b2cd4ef348?sequence=1