Replies and quotations

1. Read the following reply to a letter of enquiry. Mr. Fest refers to specific questions asked by Mr Whang. Which of the items below did he request information about?

1. how soon the goods can be delivered

2. details of prices

3. where the goods can be purchased

4. after-sales service

5. how the goods will be transported

6. terms of payment

7. which bank will handle the transaction

8. guarantees

9. quality discounts

10. cash discounts

11. details of the range of goods available

Dear Mr Whang,

Thank you for your enquiry of 16 August concerning our equipment, which you saw at the International Farm Machinery Fair in Bonn

In answer to the specific questions in your letter, first let me say we are willing to consider substantial discount on orders over 200, 000 DM

All our machinery is guaranteed for three years against normal use, and we have several agencies in your country with home-trained mechanics to service all our products.

With regard to the terms of payment, which you mentioned, we would consider payment by 30-day bill of exchange, documents against acceptance, provided you could offer two referees.

We can fulfil orders within three months, unless there are special specifications, which may take a little longer, and you can buy equipment from us or through our agents in your country.

We are enclosing our current catalogue and price-list quoting c. if. Bangkok prices, which you requested, and we think you will find the earth-moving equipment on pp 101-115 particularly interesting for the work you have in mind. If you require any further information, please contact us and we will be pleased to supply it.

Yours sincerely

Gustav Fest

Sales Director

INVOICES AND ADJUSTMENTS

When goods are supplied on credit the supplier sends an invoice to the buyer to:

• Inform the buyer of the amount due.

• Enable the buyer to check the goods delivered.

• Enable entry in the buyer's purchases day book.

When an invoice is received it should be checked carefully, not only against the goods supplied but also for the accuracy of both prices and calculations.

Invoices are sometimes sent with the goods but they are more usually posted separately. Any buyer who is not a regular customer will be expected to settle the account at once; regular customers will be given credit with invoices being charged to their accounts. Payment will then be made later on the basis of a statement of account sent by the supplier monthly or at other periodic inter­vals.