Price Unit 4

Anybody can cut prices, but it takes brains to produce a better article P.D. Armour After receipt of an offer, the importer may accept it, then, both of parties will reach an agreement. If not, he will write a counter-offer, say, a bargain on price.

By the end of this unit, you should be able to … Appreciation of a letter; Writing. Language points Main points in letters Text Analysis Assignment Questions & Answers Pre-reading Activities Studying Aim

Part Ⅰ Pre-reading Activities (Questions & Answers) (Questions & Answers) 1. What kinds of response will the importer provide while receiving a firm offer? There are two kinds of response: a.He accepts the offer, then, places an order; b.He refuses to accept it, rejects one or several clauses in the offer, then, writes a counter offer.

2. What is the difference between counter- offer and bargaining? 1)In a counter-offer letter, we can refuse one or several clauses in an offer, including the quotation, specifications, packing, terms of payment and shipment, etc; 2)Bargaining is just the negotiation on price.

3. What is a counter-offer? A counter-offer can be made to reject part or total of the terms and conditions of the offer. ※ It ’ s a new offer. counter-offer = refusal + new advice

4. How to write a counter-offer letter? Opening: a. receipt or thanks for the offer; Body:b. rejection and reasons; c. the counter proposal (price reduction etc.); Closing:d. expectation of the acceptance.

Part Ⅱ Studying Aim By the end of this unit, you should be able to: 1.Know main points in a counter-offer; 2. Grasp the main points and strategies of Letter 2-4 in Page 27-29;

3. Master key language points and difficult Sentences; 4. Know how to write a response letter to a counter- offer letter (Please refer to Letter 5 Page 29); 5. Recite Letter 5 and remember words and expressions.

After your reading the above letters, please answer the following questions: 1.What is the purpose of Letter 2-4 (P27-29)? — They are written for price reduction. Part Ⅲ Text Analysis Part Ⅲ Text Analysis Letter 2-5 (P27-30) Counter-offer Step1: Main points in letters

2. What is the main idea in Letter 2? The writer can accept the price of Model A, but refuse the quotation of Model B. He states the reason, and provide his target price, that is, $15.50.

They are counter-offer letters on price. But there are the following differences: 1)The former is more courteous, the latter states the rejection directly: “(Letter 3) We can’t accept your price.” 2) The former is clear, which includes the target price ($15.50 for model B). But in the latter, the writer asks for price reduction, doesn’t mention the new proposal. 3. Please compare Letter 2(P27) with Letter 3(P28)?

4. After your reading letter 4 (P29), please point out the strategies in it. 1)“…we have a great interest in your supply of 8.5-count”. The writer shows his great interest in the product if the seller can give 8.5 discount. 2) “We are convinced of the quality… consider importing a large amount …” The writer has a clear intention of purchase. It’s conductive to get a discount.

5. How to write a refusal reply to a letter of bargain? Please read Letter 5 (P29). There are following main points: a.Thanks for the counter-offer letter; b.Stating the refusal idea and reasons; c.Pointing out the advantages such as excellent quality or popularity of the goods; d.Inviting the reader’s reconsideration; e.Hoping for an order and doing business with the reader

2. through: by; by means of 1. price eg: unit price; total price; attractive price; keen price; reasonable price; etc. Step2: Details of those letters Language points

3. net: eg: net price; net weight; net profit; net earnings. 5. captioned goods: the goods mentioned in the subject 6. take into consideration: consider sth. carefully eg: Please take into consideration the excellent quality of the goods. 4. quotation: price offered by the seller eg: Quotations and samples will be sent upon receipt of your specific inquiry.

Difficult Sentences 1. “We accept $12.50…but must offer us $15.50 for Model B. ” (Para 1 in Letter 2) (P27): The writer can accept the price of Model A, but refuse the quotation of Model B. And $15.50 is his target price.

2. “We find it so high that our margin of profit would be either very little or nil.” (Para 2 in Letter 3) (P28): The writer states the reason why he refuses the quotation. He will have little profit.

3. “…hope you will reduce your price so as to stand up to the competition.” (Para 3 in Letter 3) (P28): The writer asks for price reduction, say, a more competitive price. 4. “…we have a great interest in your supply of 8.5-count.” (Para 1 in Letter 4)(P29) Factually, the writer refuses the quotation, asking for 8.5 discount.

5. “… the prices … have reflected the furthest we could go. ” (Para 2 in Letter 5) (P29) It means the quotation is the lowest price he can offer.

Part Ⅳ Assignment 1. Supplementary reading (a reply to a counter-offer on price): Dear Sirs, Thanks for your letter of Mar. 15. Much as we would like to do business with you, we very much regret to say that there is no possibility of our cutting the price to the extent you indicated, i.e. 10%.

The price we have quoted is quite reasonable as we always sell those products at USD30.00/pc, and have received substantial orders from other sources at our level. In view of our long friendly business relations, we would like to make a concession on the price and adjust to USD28.50/pc. As this is the bottom price we could offer, we suggest in your interest that you accept our offer without delay.

If you could improve your offer, please let us know. Supplies of this product are limited at this moment, so we would ask you to act quickly. Yours faithfully, John White

2. Please write a refusal letter to Letter 4 (29). Try to make it courteous.

Thank you!