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Unfavourable terms. Size of orderUnfavourable terms The supplier may not like the terms the customer has asked for: · Delivery could not possibly be promised within the time given in your letter. · Two months must be allowed for delivery, as we ourselves have to get raw materials and rely on our own suppliers.
Unfavourable discount: · It would be uneconomical for us to offer our products at the discounts you suggest as we work on a fast turnover and low profit margins. · The usual trade discount is 15% in this country, which is 5% lower than the figure mentioned in your letter. · The discount you asked for is far more than we offer any of our customers.
Unfavourable payment: · We only accept payment by letter of credit. · We never offer quarterly terms on initial orders, even to customers who can provide references. However, we might consider this sort of credit once we have established a trading relationship. · Our company relies on quick sales, low profits, and a fast turnover, and therefore we cannot offer long–term credit facilities. Size of order The quantity required might be too large: · We are a small firm and could not possibly handle an order for 20,000 units. · Our factory does not have facilities to turn out 30,000 units a week. The quantity required might be too small: · We only supply orders for ball pens by the gross, but suggest you try a stationery wholesaler rather than manufacturer. · The shirts we manufacture are sold in one colour and by the dozen. We never sell individual garments. · Our factory only sells material by 30–metre rolls which cannot be cut up.
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