Is it realistic to be always able to comply with requests of a would-be customer?

No. It is possible, of course, that you may not be able to handle the order or answer the enquiry. Your correspondent may be asking about a product you do not make or a service you do not give. If this so, tell him and if possible refer him elsewhere.

Quotations

What does the phrase “businessmen give replies to enquiries precedence over all other letters” mean?

Replies to enquiries provide for a high percentage of business letters. Many firms make it a point to answer enquiries the very day they are received, giving them precedence over all other letters. Even if drawing up the requested offer takes several days, they send the customer a first reply as soon as possible. It must be taken into account that the client may need the goods rather urgently and that he has written more than one letter. Of course he will consider those replies first that come first.

What should be mentioned in a quotation?

In your reply to an enquiry, you may want to give your prospective customer a quotation. Below is a guide to the subjects you should cover in your quotation: prices, transport and insurance costs, discounts, methods of payment, quoting delivery, fixed terms and negotiable terms.

Are the prices quoted always legally binding?

A firm's quotation is not necessarily legally binding, i.e. they do not always have to sell you the goods at the price they quoted in their reply to an enquiry. However, when prices tend to fluctuate, the supplier will add a provision to their quotation stating that their prices are subject to change. If the company makes a firm offer, it means they will hold the goods for a certain time until you order, e.g. firm 14 days. Again, this is not legally binding, but suppliers generally keep to their offer to protect their reputation.

What types of discounts do you know?

Manufacturers and wholesalers sometimes allow discounts to be deducted from the net or gross price. They may allow a trade discount to sellers in similar trades; or a quantity discount over a certain amount; or a cash discount if payment is made within a certain time, e.g. seven days, or a loyalty discount when firms have a long association.

What main Incoterms do you know?

The International Chamber of Commerce uses a set of terms for delivery in overseas contracts - these are called Incoterms. Their use is optional, but deals are much clearer if contracts are subject to Incoterms 1990.