Unit 4: Quotations and

Offers

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OBJECTIVES
• Acting as suppliers know how to write business letters to the
potential buyers for goods to be asked for.
• Offer certain price, terms and conditions relating to the price,
discount and payment.

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4.2. QUOTATIONS
4.2.1 What are quotations?

4.2.2 Structure of a quotation

4.2.3 Essential language

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 4.2.1. WHAT ARE QUOTATIONS?
Quotations are business letters
from sellers for goods to be sold at
certain price, terms and conditions
to the intending buyers.

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4.2.2. STRUCTURE OF A QUOTATION
Opening
• We thank you very much for your enquiry of …(date)……...
• We have great pleasure in submitting the following quotation for your
consideration:

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4.2.2. STRUCTURE OF A QUOTATION (CONT.)
• Message
No Item & Description Net Prices
1.
2.
……….
Add some terms and conditions which need to be clarified
1. Packing and transportation
2. Sales tax
3. Delivery.
4. …….....

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4.2.2. STRUCTURE OF A QUOTATION (CONT.)
Ending: Express your hope for an order, promise good services.
• We are looking forward to receiving your order and doing more
business with you.
• We trust you will find our quotation reasonable and place your order
at the earliest.

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4.2.3. ESSENTIAL LANGUAGE
Price
• If the prices are unstable -> say in your quotation that the prices are
subject to change.
Example: We can offer you a price of $5,200.00 per item, firm 21 days, after which the
price will be subject to an increase of 5%.
• If necessary, you can quote the prices in details: GROSS PRICES and NET
PRICES.
Example: The net price of this item is $100.00, to which VAT must be added at 10%,
making a gross price
of $110.00.
• Shipping terms should be mentioned in price.
Example: The price quoted should be understood to be US$100/MT CIF Hai Phong.

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4.2.3. ESSENTIAL LANGUAGE (CONT.)
Discounts
• There are different kinds of discounts on the net/ gross price: a trade
discount, a quantity discount, a cash discount, a loyalty discount.
Example:
• We allow a 5% cash discount for payment within one month.
• The net price of this model is $100.00, less 5% discount for quantities up to
100 and 10% discount for quantities over 120.

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4.2.3. ESSENTIAL LANGUAGE (CONT.)
Delivery date
• Confirm a delivery date if you can meet the enquiry.
Example:
• We are pleased to say that we can delivery by November 10, 20___.
• Delivery would be required within 5 weeks of order.
• Suggest an alternative date if you cannot meet the enquiry.
Example: We would not be able to deliver within one week since we need time
to prepare the materials. However, we could guarantee delivery within two
weeks.

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4.2.3. ESSENTIAL LANGUAGE (CONT.)
Fixed terms and negotiable terms
There are two ways of quoting terms:
• State your price and discount without any negotiation.
Example: All list prices are quoted FOB Pacific and are subject to a 15% trade
discount with payment by letter of credit.
• Suggest the customer could discuss the price and discount by using
adverbs ‘normally’/ ‘usually’.
Example: We usually offer an 18% trade discount on FOB prices, and would
prefer payment by irrevocable letter of credit.

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4.3. OFFERS
4.3.1 What is an offer?

4.3.2 Structure of an offer

4.3.3 Essential language

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4.3.1. WHAT IS AN OFFER?
• An offer is a business letter offering to sell goods on stated terms and
conditions.
• There are two kinds of offers:
• Free offer:
• made to many buyers.
• with supplier’s sales confirmation (only made when the supplier send the sales
confirmation).
• no time validity.
• Firm offer:
• made to one buyer.
• without sales confirmation (when the buyer accept, the contract is made).
• with time validity.

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4.3.2. STRUCTURE OF AN OFFER
Opening
• Express your thank to the enquiry and pleasure of offering:
Example:
• We thank you for your enquiry dated ….. asking for our ….We are glad/ happy
to make you an offer on the following terms and conditions: (for a free offer)
• We thank you for your enquiry dated ….. asking for our ….We take great
pleasure in offering firm until….on the following terms and conditions: (for a
firm offer)

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4.3.2. STRUCTURE OF AN OFFER (CONT.)
Message: Mention 7 major terms and conditions.
1. Name of the commodity/ goods:
2. Quality and specifications: as per enclosed catalogue No 234 LD.
3. Quantity: 1000 MT (Metric ton)/pcs/ sets/units
4. Price: unit price ….. including packing, total price is ….
5. Packing: in customary export cartons
6. Delivery: one shipment, date…./ in one lot in Dec.20__.
7. Payment: is to be made/ effected in USD by an irrevocable letter of credit
at (30 days) sight, opened at/ through/ by the Bank for Foreign Trade of
Vietnam (VCB), 15 days prior to/ before shipment, valid for 15 days to the
account of Royal Bank, London.

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4.3.2. STRUCTURE OF AN OFFER (CONT.)
Ending:
• Express your hope for order or future business:
Example:
• We assure you that any of your orders will be given our best attention.
• We look forward to your order.
• We look forward to opportunities of doing business with you.
• We look forward to ….

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4.3.3. ESSENTIAL LANGUAGE
Opening
• Free offer:
• We thank you very much for your enquiry of… (asking) for … and are happy/
glad/ pleased to make you an offer on the following terms and conditions.
• We … and take pleasure in making you an offer for the said goods.

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4.3.3. ESSENTIAL LANGUAGE (CONT.)
• Firm offer:
• We thank you for… and are happy to offer firm until 25 March 20__ on the terms
and conditions
as follows.
• We are pleased to make you a firm offer, subject to acceptance within 21 days, for
10 machines …
• We thank you … to make you an offer which is valid until October 20__ on the
following terms
and conditions.
• We are pleased to make you an offer which is valid until …
• We are pleased to offer firm until …
• This offer is firm for 20 days …
• This offer remains open for acceptance within 15 days …
• This offer is subject to acceptance within …

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4.3.3. ESSENTIAL LANGUAGE (CONT.)
• Main message:
• Name of the goods/commodity
• woolen sweaters, style L-29
• Model TD236 washing machines
• Quality and specification
• Quality and specification: as per samples
• Quality: as per enclosed technical description
• Specification: as per enclosed catalogue No. 23/TL

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4.3.3. ESSENTIAL LANGUAGE (CONT.)
• Quantity
• 1,000 pieces/ units/ items/ sets …
• 600 tons/ metric tons/ MT tons
• Prices
Price: £110.00 per unit CIF Hai Phong port including packing
• 5 elements:
• Currency: £/ $/ GBP/ USD/ VND (before amount)
• Amount: 110.00
• Unit price: per unit/ per 1,000 units/ per ton
• Terms of price: CIF Hai Phong port
• Including/excluding packing

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4.3.3. ESSENTIAL LANGUAGE (CONT.)
• Packing and marking
• Packing: in export customary packing
• Packing: in seaworthy cartons marked/numbered 1-6
• Packing: in seaworthy wooden cases for long voyage
• Marking: upon the buyer’s instructions
• Delivery
• Delivery: in one lot/ shipment on December 08, 20__
• for immediate shipment
• The machines can be dispatched within 6 months from receipt of your formal
order.
• Shipment: within 3-4 weeks of receiving order

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4.3.3. ESSENTIAL LANGUAGE (CONT.)
• Terms of payment
• Bank draft/ banker’s draft
• Bank transfer (mail, telegraphic)
• Bill of exchange (sight draft or term draft)
• Sight draft: a bill of exchange payable immediately upon acceptance (accept to pay)
• 60 days (after) sight: payable within 60 days of acceptance (60 D/S)
• Letter of credit (L/C)
• at sight or at … days’ sight
• Revocable L/C: that can be cancelled
• Irrevocable L/C: that cannot be cancelled
• Cash on delivery (COD)

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4.3.3. ESSENTIAL LANGUAGE (CONT.)
• Methods of payment
Payment: (to be made/effected) in US dollars (pounds sterling) by an irrevocable
letter of credit (at sight/at 60 days’ sight) to be opened with (via/through/at)
Lloyd’s Bank, London, 15 days before (prior to) the shipment, valid for 45 days, to
the account of Vietcombank, in our favour (in favour of the seller) for the total
value of the goods to be shipped.
• Technical documents
Two copies of user’s manual to be supplied with each unit of goods.
• Warranty/Guarantee
12 months from use or 18 months from despatch/dispatch

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4.3.3. ESSENTIAL LANGUAGE (CONT.)
Closing:
• Expressing hope for orders and future business
• We look forward to your early order.
• Thank you for your interest. We look forward to hearing from you soon.
• We hope very much that we can reach agreement on the terms quoted.
• We look forward to the opportunity of doing business with you.

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4.4. COVERING LETTER OF AN OFFER

4.4.1 What is the cover letter of an offer?

4.4.2 Structure of a covering letter of an offer

4.4.3 Essential language

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4.4.1. WHAT IS THE COVER LETTER OF AN
OFFER? (CONT.)
Covering letter of an offer is a business letter enclosed with an offer to
explain what are not said, make everything clearer, and add some
favourable comments.

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4.4.2. STRUCTURE OF A COVERING LETTER OF
AN OFFER
• Opening
• Express thanks for the enquiry
• Express pleasure in enclosing the offer
• Main message
• Repeat important terms
• Give explanation, make favorable comments or more information: prices,
delivery, samples, discounts, other goods…
Note: Remember to mention the offer and other documents you want
to enclose at the end of the letter (Enc.)
• Close
Expressing hope for orders and future business

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4.4.3. ESSENTIAL LANGUAGE
Opening:
• We thank you for your enquiry of … for … and are pleased to enclose our
offer for the said goods.
• … and take pleasure in enclosing our offer for…
• … and please find enclosed our firm offer No. …

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4.4.3. ESSENTIAL LANGUAGE (CONT.)
Main Message:
• We would like to make clear the following points.
• We would like to draw your attention to the following points.
• We would like to emphasize the following terms and conditions.

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4.4.3. ESSENTIAL LANGUAGE (CONT.)
Price:
• The net price of this article is £100.00, to which VAT must be added at 17.5%,
marking a gross price of £117.50.
• We can quote you a gross price, inclusive of delivery charges, of £347.50 per
100 items. These goods are exempt from VAT.
• We can offer you a price of £5,200.00 per engine, firm 21 days, after which
the price will be subject to an increase of 5%.

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 4.4.3. ESSENTIAL LANGUAGE (CONT.)
Delivery time:
• As there are regular sailings from Liverpool to New York, we are sure that the
consignment will reach you well within the time you specified.
• As there is a heavy demand for fans at this time of year, please allow at least six
weeks for delivery.

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4.4.3. ESSENTIAL LANGUAGE (CONT.)
Discount:
• The prices quoted are CFR Yokohama, but are subject to a 20% trade discount
off net prices. We can offer a further 10% discount off net prices for orders of
more than 2,000 units.
• We allow a 3% cash discount for payment within one month.
• 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.

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4.4.3. ESSENTIAL LANGUAGE (CONT.)
Closing
• We look forward to receiving your order soon.
• We are looking forward to your early order and can assure you that your order
will be completed (processed/ executed) to your satisfaction.
• We are looking forward to receiving your order and doing more business with
you.
• We are waiting for your confirmation and hope that we can keep our
commitment to provide the quality goods in time.
• Thank you for your interest and we look forward to hearing from you soon.

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4.2.4. PRACTICE AND HOMEWORK (CONT.)
Practice 1: Anh/chị viết một báo giá gửi ông Hatchinson với nội dung gợi ý sau:
Cảm ơn thư số VEL/S/98/8965 đề ngày 18/8/20___ và báo giá 03 mặt hàng sau:
(1) Ti vi mầu 21 inch– $ 1500/chiếc
(2) Ti vi mầu 29 inch– $ 1900/chiếc
(3) Đầu DVD – $ 1200/chiếc
Lưu ý:
• Giá báo trên không bao gồm thuế.
• Thanh toán bằng hối phiếu ngân hàng ngay khi giao hàng.
• Giao hàng trong vòng 15 ngày kể từ khi nhận đơn đặt hàng.
• Phải trả thêm phí vận chuyển.
• Báo giá có giá trị một tháng kể từ ngày báo.
• Hy vọng họ sẽ thấy báo giá hợp lý và đặt hàng sớm.

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 4.2.4. PRACTICE AND HOMEWORK (CONT.)
PRACTICE 2: You have 30 minutes to write the letter
Kính thưa Ông X
Về: Chiếu cói (rush mats)
Chúng tôi xin cám ơn thư của các ngài đề ngày 25 tháng 6 và rất vui mừng thấy các
ngài muốn mua chiếu cói của chúng tôi. Chúng tôi xin
chào bán với các điều kiện sau đây, tuỳ thuộc vào sự chấp nhận cuối cùng của
chúng tôi khi nhận được đơn đặt hàng của các ngài:
• Tên hàng: chiếu hoa
• Số lượng: 5000
• Qui cách: theo qui cách kèm theo
• Giá: 1 Bảng Anh/ 1 chiếc, CIF Luân Đôn, kể cả đóng gói bao bì

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4.5.2. PRACTICE QUOTATIONS AND OFFERS
TRANSLATIONS
PRACTICE 1: Quotations: You have 30 minutes to translate the following sentences
1. Chúng tôi có thể đề ra một ngoại lệ và đồng ý chiết khấu cho các ngài 3% chỉ
nhằm để đáp lại đơn đặt hàng có số lượng lớn của các ngài.
2. Giá của chúng tôi cố định đến ngày 30 tháng 6 và chỉ có giá trị khi các ngài đặt
hàng trong thư trả lời tiếp theo thư này.
3. Giá cố định chỉ khi nào giá nguyên liệu hiện hành không thay đổi và giá sẽ phụ
thuộc vào việc chấp nhận cuối cùng của chúng tôi bằng điện.
4. Chúng tôi sẵn sàng chiết khấu đặc biệt thêm 3% cho các ngài với bất kỳ đơn hàng
nào nhận được vào trước ngày 5 tháng 6 để tạo mối quan hệ kinh doanh lâu dài.
5. Chúng tôi vui mừng gửi cho quý khách hàng bảng giá thấp nhất với sản phẩm mà
các ngài đang quan tâm và xin khẳng định mức giá hết sức cạnh tranh so với giá
thị trường Châu Âu.

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4.5. PRACTICE QUOTATIONS AND OFFERS
TRANSLATIONS (CONT.)
6. Đối với đơn đặt hàng từ 100 tá trở lên, chúng tôi có thể báo cho quý công
ty mức giá 30 đô la Mỹ mỗi tá gồm phí vận chuyển tới Los Angeles.
7. Giá nguyên vật liệu không ngừng tăng từ tháng 7, nhưng chúng tôi vẫn
chưa nâng giá trong các báo giá của chúng tôi. Vì vậy chúng tôi không thể
giảm giá thêm nữa.
8. Việc chuyển hàng sẽ được thực hiện vào tháng 9 hoặc tháng 10 từ cảng
Hải Phòng tới San Francisco hoặc từ cảng Sài Gòn chuyển qua Hồng Kông.
9. Vì chúng tôi muốn mở rộng kinh doanh với các ông nên chúng tôi báo giá
rất thấp. Chúng tôi sẽ không bán lại mức giá này khi hết số hàng tồn kho
hiện nay.
10. Chúng tôi sẽ xem xét việc cho các ngài hưởng chiết khấu thêm 5% nếu trị
giá của riêng một đơn hàng vượt quá 100,000 USD.

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