Unit 4 Offer and Counter Offer

Unit 4 Offer and Counter Offer 报盘与还盘

Aims & Requirements • To enable S.S. to get to know the definition of offer and counter-offer • To enable S.S. to know the steps of writing a letter of offer and counter-offer • To enable S.S. to master the vocabulary and useful sentences of letters of offer and counter-offer • To enable S.S. to know the relevant information of offer calculation of FOB, CIF, CFR

Ⅰ.Introduction • Offers Counter-offer Counter-counter Offers

Offers • An offer is a promise to supply goods on the terms and conditions stated. In an offer, the seller not only quotes the price of the goods, but also indicates all necessary terms, just as: The name of the goods, Quality, Quantity, Price, Time of Shipment, Terms of Payment and so on.

1. Types of offer • An offer may either be firm within a certain time-limit (firm offer) or be made without engagement (non-firm offer). • 1) Firm Offer: Firm Offer are made when a seller promise to sell goods at a stated price and within a stated period of time. • 2) Non-firm Offer: There are four kinds of flexible offer. • (1) Offer subject to prior sale, Offer subject to being unsold. (有权先售报价） • (2) Offer subject to confirmation. （经确认为有效的报价） • (3) Offer on approval. （买方看货后再订的报价） • (4)Offer on sale or return. （允许退货的报价）

2. In the following cases you may give flexible offer: • 1. New customer with the first inquiry. • 2. Old customer with the first inquiry for an new products. • 3. On the fair or show.

3.The structure of an offer • 1) Opening Paragraph: Express your thanks for the enquiring, give your conditions for offer (firm offer or non-firm offer). • 2) Transitional Paragraph: • (1) Name of the goods, quality or specifications, quantity, details of prices, discounts, terms of payment, time of shipment, and packing conditions so as to enable the buyer to make a decision. • (2) A supplementary short paragraph to draw the customer’s attention to other products likely to interest the buyer. • 3) Closing Paragraph: Express your hope for an order

Counter-offer • 1. Counter-offers: A buyer does not agree with any or some of the transaction terms of a quotation or a firm offer, he sends a counter-offer. • In the counter-offer, the buyer may show his disagreement to the certain term or terms and state his own idea instead. Such alterations, no matter how slight they may appear to be, signify that business has to be negotiated on the renewed basis.

2. Several Kinds of Counter-offers: • 1) Counter-offer on price . • 2) Asks for reduction of minimum quantity. • 3) Counter-offer on payment terms. • 4) Asks for earlier delivery. • 5) Asks for changing the package. • 6) Counter-offer on the discount of the goods. • 7) Asks for more commission.

3. The Key Structure of the letter. • 1) Opening Paragraph: Express your thanks with a courteous sentence. • 2) Transitional Paragraph: (Counter-offer) • (1) Express your difficulties to accept the offer and give your reasons. • (2) Express your conditions (suggestions) to counter offer. • 3) Closing paragraph: Express your hope for acceptance of counter-offer

Counter-counter Offers • The seller receives the buyer’s counter-offer, he has the full right of acceptance or refusal. In the latter case ,the seller may make another counter-offer of his own. This process can go on for many a round till the business is finalized or called off.

1. The Key Structure of the counter-counter offer • 1) Opening Paragraph: Express your thanks with a courteous sentence. • 2) Transitional paragraph: (Counter-counter Offer) • (1) Express your difficulties to accept the buyer’s counter-offer. • (2) Express your counter-counter offer • 3) Closing paragraph: Express your hope for acceptance of counter-counter offer

Ⅱ. Layout and Samples

Sample 1 A Firm Offer of Sugar • Dear Sirs,we are in receipt of your letter of May 20, 2006, asking us to offer 10,000MT of sugar for shipment to Japan. To comply with your request, we are quoting as follows: • Commodity: Superior white Crystal Sugar • Packing: To be packed in new gunny bags of 100 kgs. each. • Quantity: 10,000MT • Price: US$ 105.00/MT CIF Osaka, Japan • Payment: By irrevocable and confirmed Letter of Credit at sight to be opened in our favor through Bank of Tokyo. • Shipment: One month after receipt of the Letter of Credit. • Above offer is firm subject to your reply reaching us here before June 10th. • Faithfully yours,

Sample 2 A Request for Reply • Re: Canned Food • Dear Sirs, • Thank you for your fax today. We hereby offer you best for the subject as follows: • No. Items Unit Price • PI-75-101 Canned Pineapple USD12.80 per dozen • MU-75-105 Canned Mushroom USD13.50 per dozen • PE-75-108 Canned Pear USD11.30 per dozen • Packing: By standard export case of 10 dozen each. • Payment: 100% by irrevocable L/C to be opened through First National Bank, N.Y. and drawn at sight. • Delivery: one month after receipt of the L/C. • Quantity: 1000 cases of each items. • Above price is based on FOB Xingang, Tianjin. Please reply before July 24th our time. • Yours sincerely ,

Sample 3 Non-firm Offer of Crockery • Dear Sirs,Replying to your inquiry of 18th April for a further supply of our crockery, we are pleased to quote as follows, subject to our final confirmation. • Tea Cups USD15.00 per hundred. • Tea Saucers USD10.50 per hundred • Tea Plates USD10.50 per hundred • Tea Pots, 2 pint USD0.47 each • These prices include packing and are on FOB our warehouse basis. We shall be glad to learn that you accept the above prices and look forward to your orders. • Yours faithfully,

Sample 4 Non-firm Offer of Blankets • Dear Sir ,Thank you for your inquiry of 3rd June referring to our Blanket No.33. We are pleased to make the following offer, subject to our final confirmation: • Commodity: “White Rabbit” Brand Woolen Mixed Blanket No. 33 • Size: 72ⅹ84 in. • Weight: 4 lbs. • Color: Yellow • Quantity: 500 pcs. • Price: USD40 per piece CIF MontrealShipment: During July-August • Payment: Draft at 60 days under an irrevocable L/C • As you will have realized from the catalogue we sent you in May, our blanket is a perfect combination of durability, warmth, softness, and easy care. We are confident you can do some profitable business.We look forward to a prompt reply, if possible. • Yours faithfully,

Sample5 A Letter of Counter-offer • Dear Sirs, • Thank you for your offer of June 1 for 100 pairs of ABC Brand No.5 at US$30 a pair FOB Shanghai. • While appreciating your kind offer, we have to say that US$30 a pair seems to be too high. Shoes of a similar quality to yours are being retailed at department stores here at much lower prices. • We wonder if you would kindly consider reducing the price to $20 a pair. If you could come down to this price level, we might be able to order 300 dozen. • Your consideration of this matter and immediate reply would be appreciated. • Your faithfully,

Sample6 A Letter of Counter-offer • Dear Sirs, • Tin Foil Sheets • We wish to thank you for your letter of the 20th , offering us 50 long tons of the captioned goods at €135per long ton CFR Shanghai, usual terms. • In reply, we very much regret to state that our endusers here find your price too high and out of line with the prevailing market level. Information indicates that some parcels of Japanese make have been sold at the level of €125 per long ton. • Such being the case, it is impossible for us to persuade our endusers to accept your price, as material of similar quality is easily obtainable at a much lower figure. Should you be prepared to reduce your limit by, say 8%, we might come to terms. • It is in view of our long-standing business relationship that we make you such a counter-offer most favourably and fax us acceptance at your earliest convenience. • We are anticipating your early reply. • Yours faithfully,

Sample7 Counter-counter Offer • Dear Sirs, • Your counter offer of June 10 has been received. • However, $20 a pair as you suggest is too severe for us. You say you can get shoes of the same quality at much lower prices. But we are quite sure that our ABC Brand No.5 is far superior in quality to any other shoes of the same price level. • It is hard for us to accept your counter offer of $20 a pair, but as you are our good customer, we think we may concede to $25 a pair provided you give us an order for 300 pairs at the least. • Your earliest possible reply would be appreciated. • Your faithfully,

Sample8 Counter-counter Offer • Dear Sir ,Thank you for your letter dated 10 August ,2000. We very much regret that we are unable to entertain your counter offer of Au$1,050 per metric ton of polished rice CIF Singapore. • We must point out that your bid is out of line with the current market price . Other companies in your region are buying freely at our quoted price . • For your information , the market is firm and tending upward .There is very little likelihood of any significant change in the foreseeable future .In view of the above ,we suggest that it is in your interest to accept our price of A$1,200 per metric ton without delay . • Your faithfully

Ⅲ. Words and Expressions • offer n. 报盘，发盘 • be in receipt of 已收到 • comply v.照做 • crystal n./adj. 水晶，晶体的 • gunny bag 麻袋 • Osaka 大阪（日本城市） • canned adj. 鑵装的 • unit price 单价 • pineapple n. 菠萝 • mushroom n.蘑菇

margin n. 边缘, 极限, 利润, 差数, (时间、金额等的)富余 • crockery n. 陶器 • saucer n. 茶托，浅碟 • pint n. 一品托壶 • warehouse n. 仓库 • blanket n. 毛毯 • in= inch(es) n. 英寸 • lbs.= pounds n. 磅 • pcs. = pieces 件，个 • Montreal 蒙特利尔（加拿大满港市）

durability n.耐久 • profitable adj. 有利可图的 • appreciate v. 感激，感谢 • retail v.零售 • foil sheet 锡箔片 • captioned adj. 标题项下的 • enduser n.用户，客户 • be out of line with 与……不一致 • obtainable a. 可获得的 • favorably a. 优惠的

come to terms 达成交易 • long-standing adj.长期的 • convenience n. 方便 • concede v.让步 • entertain v. 接受 • current adj.现在的 • upward adj.上涨的，上行的 • foreseeable adj.可预见的

Ⅳ. Useful Sentences • 1. offer • 1) We are in a position to offer tea from stock. . • 2) We can offer you a quotation based upon the international market. • 3) We offer firm for reply 11 a.m. tomorrow. • 4) My offer was based on reasonable profit, not on wild speculations. • 5) This offer is based on an expanding market and is competitive. • 6) Please renew your offer for two days further. • 7) Please renew your offer on the same terms and conditions. • 8) The offer will remain open for 3 days. • 9) We offer firm for reply 11 a.m. tomorrow.

10) We'll let you have our firm offer next Sunday. • 11) We're willing to make you a firm offer at this price. • 12) We quote this article at $250 per M/T C&F. • 13) We offer you 300 cartons for “Sun Flower” Brand Candle at US$7.16 in carton on the usual terms. • 14) We offer you for 500 sets Machine Tool at US$ 2000 on CIF London basis during June/July shipment.

2. Counter-offer • 1) My offer was based on reasonable profit, not on wild speculations. • 2) We have received offers recently, most of which are below 100 U.S. dollars. • 3) Moreover, We've kept the price close to the costs of production. • 4) I think the price we offered you last week is the best one. • 5) No other buyers have bid higher than this price. • 6) The price you offered is above previous prices. • 7) It was a higher price than we offered to other suppliers. • 8) We can't accept your offer unless the price is reduced by 5%. • 9) I'm afraid I don't find your price competitive at all.

10) You'll see that our offer compares favorably with the quotations you can get elsewhere. • 11) This offer is based on an expanding market and is competitive. • 12) If you accept our counter offer, we’ll persuade the end-user to place an order with you. • 13) We feel that your quotation is not proper because the price for such material is on the decline at present. • 14) In respect to quality, I don’t think that the goods of other brands can compare with ours. 15) Taking the quality into consideration, I think the price is reasonable. • 15) To have this business concluded, I should say a reduction of at least 10% would help. • 16) I’m afraid 5% reduction in price is unacceptable to us. • 17) I’m afraid we have to call the whole deal off if you still insist on your original quotation.

Ⅴ.Class Simulating Training • Background

HS Code: 63062900 Trademark: veryoutdoor Model:H4005 Productivity: 500000/month Unit Price/Payment: FOB NINGBO Origin: China Packing: 1pc/Carry Bag Min. Order: 1000 Pcs Transportation: Sea • Product DetailsKid Playing Tent (H4005)Kid Playing Tent (H4005) Product Group:kids playing tents • Product DescriptionKids playing tent Dimension: 120x105x91.5cm Fabric: 170t polyester Spring steel

2. Task: • You have got exporters’ information about introduction of goods from internet, please read carefully and write an offer .

Ⅵ. Extra Practice • 1. In each of the following sentences: choose the appropriate word or words in the parentheses. Be prepared to justify your choice: • 1) We (offer, quote) you for 500 sets Sewing (Machine, Machines) • 2) There is (not, no) possibility (of doing, to do) business at this price. • 3) We confirm ______(have, having, to have)accepted your counter proposal yesterday. • 4) We look forward to your reply______ (earlier, early, earliest) possible. • 5) Our products are of better quality than ______(those,this, that) from other countries.

6) You can see that ______(the, an, a) price of $ 100.00 is within the figure you stated. • 7) Please______(do your best, do my best, do one’s best) to place your order with us as soon as possible.` • 8) _____(Much, Despite, Much as)we would like to close the business with you, we find your bid unacceptable. • 9) We have replaced the broken china sets. ______(And also, In addition to, In addition)we offered you a 3% discount. • 10) You have previously supplied _______(us for plastic wares,us on plastic wares, us with plastic wares)and we should be glad if you would now quote for the following products, which we are to purchase on a large scale.

11) ____(While, When, As we are)appreciating your order, we feel we must point out that our prices have already been cut to the minimum possible, and the same products are not obtainable elsewhere at our rates. • 12) _____(In comparison, Compared with, In terms), your proposal is more favorable than that by a South Korean company. • 13) This offer is (open, firm), subject to (our, your) reply (reach, reaching, arriving) (us, here) before or (at, on, in) noon time June (20, 20th) • 14) You may avail yourselves (about, of) the advantage of this strengthening market if you will fax us acceptance of our offer immediately. • 15) We regret we have not been able to persuade them (accepting, to accept) a substitute.

2. Complete the sentences. • 1). We have offered the price at $ 1000 per metric ton. 这是目前最好的价格。 • 2). We have quoted you our lowest price. 按此价格我们已与其他客户做了许多交易。 • 3）Please reply as soon as possible. 说明最早装船期和付款条件 • 4）If you are interested, please fax us 说明所需数量。 • 5）We faxd you yesterday 报你5000公斤核桃仁，3月装船 • 6）We make you this offer 以5天内复到为有效。

6）We make you this offer 以5天内复到为有效。 • 7）存货日渐减少，so we suggest that you place your order without delay. • 8) 由于供货充裕，we are able to offer you firm for immediate delivery… • 9) 为盼扩大交易额，故报特低价, we shall be unable to repeat these when our present stock is exhausted.

10) We cannot see our way • a. 接受你方9月10日还价 • b. 接受你方3月份装船的建议 • c. 在尚未获得货源以前，接受大量订货。 • 11）Please keep us posted of • a. 你处市场的货物供求情况 • b. 你们每月销售皮鞋的数量 • c. 你们每季度需要进口的数量

12）We assure you • a. 你们的订货将按照合同规定如期装运 • b. 我方所供货物价格公道，品质优良 • c. 我们要尽全力既促进贸易，又增进友谊 • 13. Please rest assured • a. 我们会把一切必要的事办好 • b. 我们就要准备这些货物 • c. 我们就要准备装运上述货物 • 14. Your price is found to be • a. 偏高 • b. 脱离我处的市场行情 • c. 比日本货要高出30%

3. Fill in the blanks according to the information in Chinese. • Dear Sirs, • Silicon Steel Sheets • We learn from your letter of 10th October that ______（你方认为我方标题项下的货物价格偏高）_________（尽管我方很想与你方合作来扩大销路）, we are regretful we just cannot see our way clear to (接受你方还盘)，as the price we quoted is quite realistic. As a matter of fact, （我们以此价格从其他地方收到大批订单）. • If you see any chance to do better, please let us know. (由于现有存货有限，请尽快行动).We assure you that any further enquiries from you will （得到我方的立即办理）. • Yours faithfully,

4．Draft a letter with the following hints: • 1) 你方订购1，000公吨核桃仁（Groundnut Kernels）的第123号订单 • 2）我方无法接受你方每公吨620美圆CIF鹿特丹的还盘 • 3）你方递价太高，与市场行情不一致，市场坚挺，有上涨趋势 • 4）鉴于长期友好贸易关系，愿意做出让步，降低8% • 5）期待对方尽快答复

Card • FOB、CFR、CIF三种价格的报价核算 • FOB报价=（实际采购成本+各项国内费用之和）/（1-预期利润率） • CFR报价=（实际采购成本+各项国内费用之和+国外运费）/（1-预期利润率） • CIF报价=（实际采购成本+各项国内费用之和+国外运费）/[1-预期利润率-（1+投保加成率）*保险费率]

FOB/CIF/CFR三种贸易术语价格之间的换算公式 1.FOB价换算为CFR价或CIF价（1）FOB价算为CFR价的公式：CFR=FOBF（运费）（2）FOB价换算为CIF的公式：CIF=(FOBF（运费）)÷(1－保险费率·（1＋投保加成率） 2.CIF价换算为FOB价或CFRR价（1）CIF价换算为FOB价的公式：FOB=CIF-I（保险费）-F（运费）（2）CIF价换算为CFR价的公式：CFR=CIF-I（保险费) 3.CFR价换算为FOB价或CIF价（1）CFR价换算为FOB价的公式：FOB=CFR-F（运费）（2）CFR价换算为CIF价的公式：CIF=CFR÷(1－保险费率·（1＋投保加成率）)

Unit 4 Offer and Counter Offer