Important Business Letters

• Letter of Inquiry and their replies• Letter of Order and their replies• Collection letter and their replies• Letter of complaint and their replies

INQUIRIES AND THEIR REPLIES Before placing an order a customer inquires about the

product/service he proposes to purchase.

FOR CUSTOMER:• you clearly state what you want • general information• catalogue/price-list/brochure, samples, quotation• special rates or discounts

FOR SELLER:• Enquiries mean potential business, so they must be

acknowledged promptly.

ORDER LETTERSWhen replies to enquiry letters meet the requirements,

orders for goods and services are placed. These are legally accepted letters.

FOR CUSTOMERS:• Order letter must be accurate clear and precise. • The letter must contain details of the order such as quality, quantity and

price. • Specify the shape, size, colour, type of the product to order.• Refer to the catalogue/sample sent by the seller• State the place, date and mode of delivery of the order. • Prices, discounts and terms of payment must be confirmed• Insurance of the goods in transit• Right to reject the goods on account of defect/ deviation/ delay

Types• The trial order• Repeat order• Routine order• Conditional order

Letters from buyers side• Order letter• Request for change in order • Request for cancellation of order

Letters from buyers side• Acknowledging an order• Rejecting order• Dispatch of goods advice note• Payment note (PI/ Invoice)

ORDER LETTERS

FOR SELLER:• The seller has to respond quickly with an

acknowledgement. • In case of problems such as delays or non-availability

of ordered goods he must explain the reasons, apologise for the inconvenience and state when delivery or substitution may be possible.

• Orders may be declined if terms and conditions are not satisfactory and if the seller is not confident about the buyer's credit status. But such letters must be diplomatic and carefully worded so as not to lose future business.

ORDER LETTERS

COMPLAINTS, CLAIMS AND ADJUSTMENTS

Complaints may be regarding –

• wrong goods• non-delivery or late delivery of goods• quality or quantity of goods not as per the order• damaged or spoilt goods • poor service.

A customer should keep in mind the following points whendrafting a complaint letter:

(a) The letter should provide full details such as –– Date and time of order and delivery– Nature and quantity of goods/ services availed– Details of what exactly went wrong– Nature of loss to the buyer– How best buyer can be compensated for the loss

(b) Do not delay in making the complaint as the supplier find it difficult to investigate.

(c) Suggest how the matter can be rectified or enquire what the supplier proposes to do about your problem.

(d) Do not assume that the supplier is the only one to blame.(e) Letter should be firm but polite.

COMPLAINTS, CLAIMS & ADJUSTMENTS

Supplier dealing complaint• Dealing with the complaint requires tact

• Most suppliers appreciate/ thanks for complaints

• Although the “customer is always right”, do not hesitate to point out politely if the complaint or claim is unreasonable.

• If you are to blame, admit it gracefully • It would help if both the customer and supplier

displayed courtesy in their letters.

Adjustment policies

1. “Customer is king” policy2. “Let the buyer beware” policy3. “Fair claim, fair adjustment” policy

Types of Adjustment letters:4. Expressing regret for cause of complaint5. Accepting mistake and granting adjustment6. Partial adjustment in case of diff in opinion7. Not granting adjustment, but be polite8. Third party at fault, sought adjustment from them

COLLECTION LETTERS Collection letters are sent to customers who have failed to clear their

accounts at the right time or by the period mutually agreed upon.

It should not be assumed that the customer is willingly a defaulter.

At the same time there are customers who are ready to invent excuses and who need to be tackled carefully.

Whatever be the cause of delay, collection letters must be polite and tactful.

Every customer should be given the opportunity to pay by sending one or two reminders.

The usual collection methods are:• Phone call• Fax• Sending letters• Personal visits

COLLECTION LETTERS

The style and the tone of the letter will depend on the age of the debt, how important the customer is and whether delayed payment is customary.

Collection letters are planned in series. Notifying stageReminding stage and Suggesting Stage:Final Appeal stageWarning stage

SERIES OF COLLECTION LETTERS