Business

Letter Writing

Unit 2
Meaning of Business Letter

• Business letter like personal letters are also a piece of conversation by post.

• They differ in certain aspects

• The objective of business letter is to achieve a definite purpose like selling products,
seeking information , creating goodwill, etc

• They are formal and to the point.

• Business letters are written in a calculated way

Functions of Business Letters

• Record and Reference

• Evidence of Contracts

• Public Relations

• Business in remote
Parts of a Business Letter

• Heading • Body

• Date • Complimentary Close

• Inside Address • Signatures

• Salutations • Reference Initials

• Reference • Enclosures
Formats of Business Letters

• Full Block

• Semi Block

• Block

• Simplified
How to make Business Letters effective ?

• Write Naturally

• Take Care of Language

• Clarity of the message

• Brevity

• Accuracy

• Check the tone

Specimen Circular of Full Block
Specimen of Block Format
Specimen of Semi Block Format
Enquiries and Replies

• Enquiry letters are written for asking information about product price, terms and
conditions of sales, etc.

• Enquiry may be routine, in response to advertisements or at one’s own initiative

Opening Sentences
• We shall be grateful if you would kindly quote your lowest rates for the following items.

• We shall be glad if you would kindly inform us of the terms and condition for the supply of following items.

• We would be glad to receive details of your terms and conditions of the sale for the supply of following items.

• We intend to buy the following items for our organisation. We are grateful if you would kindly quote your
lowest rates for this. The detailed specifications are given below

• We are considering the purchase of … and are making preliminary enquiries from several suppliers with a
view to compare process and terms of sale.

• May we request you to let us know your lowest rates for the following items which we are planning to
purchase from the supplier with lowest quotations ?

• A business friend has given us your name as a reliable firm, prepared to supply….we would welcome
information about your range of product.
Closing Sentences

• We hope the terms and conditions you quote will be satisfactory. We shall, of course, be
happy to order all our requirements from you.

• If your terms are favourable, we shall be pleased to send our order immediately.

• As we need these goods urgently, we shall be grateful for your prompt reply.

• Since we plan to contract for regular long run business, we are sure that you will quote your
most favourable terms.

• We look forward to your reply. If your quotations are cheap and best, we shall be happy to
buy from you.
Examples :
Quotation and Offers
• Quality and Quantity of goods.

• Mode and terms of payments

• Methods of transportation

• Place and Time of Delivery

• Charges on account of sales tax, octroi, freight, and insurance

• Packing and forwarding charges.

Following sentences to be covered while
drafting a letter:
• Reply promptly, if quotations and offers are to be made in response to inquiry.

• Refer to the date or number of other party’s letter in response to which quotations are made

• Make reasonable offers that can persuade the other party to buy

• Be specific about the process, quantity, quality, terms f payment. Time and mode of delivery, sale tax and octroi
charges, packing and forwarding charges, etc.

• Express gratitude for the interest the enquirer has taken in the company and its products or services.

• Demonstrate the willingness to serve or help , if additional information or clarification is required.

• Be clear about the various terms used I quoting prices : F.OR ( Free on railway) C.I.F ( Cost, insurance, Freight,
etc.
Examples:
Orders and Executions:

Orders placed by letters should :

• Give full details and quote catalogue numbers if any

• Give full description of the date of delivery , mode of transportation, etc

• Confirm the settled terms of price and payment

• Thank the supplier for his or her quotations

• Ask for after sales services.

Acknowledgement Letters

• Thank the party for the order

• Mention the time when goods will be dispatched

• State the total amount of invoice and attach the copy of invoice to the letter

• Specify the mode of dispatch or transportation like post, railway, roads, etc

• Maintain a pleasant and personal tone throughout the letter and ensure the customer for your
services in all possible way

• Express the hope that the quality of goods will satisfy the customer needs and requirements.
Cancellation Of Order

• First of all, the reader is put in proper frame of mind.

• Reasons for cancelling the order are stated.

• The negative news of cancelling the order is stated

• Alternatives , if any are presented to enable the reader to overcome the psychological
reactions.

• The letter is ended with positive and forward looking tone.

Writing Apology Letter After Cancellation
Of Order
• Mention the acknowledgement of the receipt of the letter cancelling the order

• Convey that you feel sorry about not executing the order within time

• Ensure the customer that in future steps will be taken to overcome problem

• End the letter by asking the customer to accept the apology

Elements Of Complaint Letter

• A Statement about what has gone wrong like supply of defective goods, inordinate
delay, faulty services, etc. In case of a product, details about the purchase of goods, like
their description, order number, amount, etc are given for quick identification by the
supplier. Similarly in case of inordinate delay, details are given about the number and
date of order, time of the expected arrival of goods, etc.

• A statement about the loss suffered by the buyer. This loss maybe inconvenience,
inability to meet the future orders or any other loss that the business has suffered
• An Appeal to the suppliers ethics, regulation or professional pride with a view to
motivate him for taking necessary actions.

• A formal request for the necessary adjustments that the buyer claimant thinks fit
Drafting Complaints Letters

• Make accurate and clear statements by giving pertinent details and exact description of
the goods

• Be factual, concise and exact in describing the problem

• Explain the implications of the problem, state the loss of business, interruption in
services or operations and inconveniences faced by the company

• State the desired steps to be initiated to rectify the situation. These steps may be
replacement of goods, performing extra service, refund of money or making
compensation, etc.
• Do not lose temper, resist the temptation of accusing the other person of carelessness,
negligence or inefficiency

• Be courteous, but that courtesy should not be at the cost of firmness

• Do not use offensive or unpleasant words-like dishonest, unfair, false, disgusting, useless,
inefficient, etc. as they sound discourteous

• Do not attribute faults to anyone unless you are absolutely sure. Use passive voice to talk
of mistakes. Make a judicious choice of words to convey your feelings

• Avoid threats, accusation or veiled hints about the legal or other action, if the claim is not
settled promptly

• Close the letter with formal request that the supplier will respond favourably and fairly to
the claim
Occasions For Writing Complaints

• When the goods do not arrive on time

• When the goods are in damaged conditions

• When the quality of goods is different from what was ordered

• When the work undertaken is done unsatisfactorily

• When a product doe not function properly

• When goods are delivered at the wrong place

Grievance Letters To Various Government
Agencies
• Higher authorities of BSNL, due to non-entertainment of complaints at lower level, or
inflated bills

• Municipal Corporation regarding damage of roads

• Taxation authorities for non-payment of refunds

• Electricity Board officers regarding non-supply or interrupted supply of power etc

ADJUSTMENT LETTERS
When The Customers Is Right
• Acknowledge the letter with thanks for pinpointing the area where company needs improvement

• Admit the fault frankly without any excuses. Non-acceptance of genuine claims harms the image
of the company and ultimately affects its sales and profits

• Grant them adjustments in clear terms and if refusal is to be made, offer an alternate solution

• Regret the negligence in sincere words and assure that it will not occur in future

• Get some senior officer to sign such a letter. If they reply to complaint letter is signed by junior
officer or clerk, it will further increase the complaint

• Close the letter with positive statement expressing hope that the customer will enjoy god service
in future
When The Customer Is Not Right

• If the customer is not right, do not accuse him directly. Bring him slowly to understand
the problem from your angle. If he is to be refused, this refusal should be in a polite
manner.
HELPFUL SENTENCES
Beginning Sentences
• We regret to learn about your experiences with . . . . . .

• Thank you for bringing our attention to the defect in . . . . . .

• We are indeed very distressed to know that . . . . . . .

• Please accept our sincere apology for mistake in . . . . . .

• We feel very sorry to know that . . . . . . .

Concluding Sentences

• We assure you that in future these things will not happen

• Thank you once again for drawing to our attention to this defect

• We are indeed very grateful to you for giving us an oppurtinity to have a look at our
working

• We hope that our new arrangements will be highly suitable and satisfactory for you

• Kindly tell us if you wish us to do anything further. We are always at your service

• Please do inform us how you find the replacement. We always value our customer very
high
 BANK CORRESPONDENCE
Functions
• Accepting people’s surplus money through various deposits like saving bank, fixed deposits,
recurring deposits, etc

• Lending money in the form of various advances like overdrafts, cash credit, loans, etc
against hypothecation of documents of titles property, goods, life insurance,policy etc

• Collection of customers cheques, bills, dividends, etc

• Honoring customers cheques

• Opening letter of credit on behalf of customer to provide guarantee for payments to exporter
• Paying insurance premiums, telephone or electricity bills on standing order of
customers, etc

• Transferring money from one place to another, etc. With information technology
revolution, there has been great transformation in the quality of banking services.
Facilities like ATM, online banking, internet banking, etc will dominate the future
scenarios
Usual Principles Of Writing Letters
• For opening account, the businessman should furnish the letter of introduction from the
account holder of bank and his specimen signature. If account is to be opened in the name of
public limited company, these documents are submitted. (a) Certificate of incorporation (b)
Certificate of commencement of business (c) Memorandum and articles of association and (d)
Resolution of directors stating the authorised signatures

• In case of letter asking to stop payment of a cheque; the no, date, and the name of party in
whose favour the cheque was written, should to be stated

• In case of cancellation of draft, the forwarding letter should clearly state the amount, date, no,
party’s name in whose favour the draft was written and the place (at which draft was to be
encashed). Along with these particulars, the customer shoud also state the mode of receipt like
crediting to his bank a/c no . . . .
• In case of cancellation of fixed deposit before maturity, the customer should state his
fixed deposit no . . . The principal amount and the date. With forwarding letter he should
annex original F.D. . , and the relative receipt duty signed by him

• In case of application for loan-Printed application form with required documents

complete in all respect should be submitted

• For opening letter of credit – the customer should state the name of the exporter in
whose favour I/C is to be opened, the name of the advising bank, the amount of I/C, and
the required documents that exporter should hand over against I/C