MAKING EFFECTIVE BUSINESS CORRESPONDENCE

You should recognize the importance of business correspondence as it is an introduction with the buyer in proxy, which may clinch his response according to the impression created by the correspondence.  For creating a very favorable and excellent impression, you must use a beautiful letterhead on airmail paper and a good envelope, nicely printed, giving full particulars of your firm’s name, telephone, fax number and E-Mail address etc.  Your language should be polite, soft, brief and to the point, giving a very clear picture of the subject to be put before the customer.  Letters should be typed/computer typed set, preferably in the language of the importing country.  Also make sure that the full and correct address is written and the envelope is duly stamped.  It should also be borne in mind that the aim of your business correspondence is not only to clinch the buyer’s order but also to obtain the information on the following :

1.                  The specifications of the products already in use in the importing country.

2.                  Whether your product meets the above specifications.  If not, whether your specifications offer any distinct advantages in terms of prices, quality, after-sales service, etc.

3.                  The import policy prevailing in the buyer’s country (e.g. whether there is any import licensing, any restriction on remittances, any pre-qualification for product/supplier, etc.)

4.                  The trade practices in the buyers’ country with special reference to your product, information like whether importers import and distribute the product/high sea sales, whether agent is required to book orders from actual users. Etc.

5.                  In case your item requires after-sales service, the manner in which it can be offered.

6.                  The prices at which your product sells in the retail/wholesale market, the duty structure and any other cost element to arrive at the landed cost.  Information on the margins at which the product is sold.  This information will help you in evolving a pricing strategy.

7.                  Study of various market segments viz, Importers, Supermarkets, Government Suppliers, etc.

8.                  The various factors that rule the market viz.  Quality, Price, Delivery, Brand Name, Credit Terms etc.

9.                  Role of advertising and publicity and reference to the product and the country. 

Specimen of Introductory Letter to Importers Abroad

Ref : ABC/Eng 2010/                                                                                  20th Aug 2010

The Manager (Purchase)

M/s XYZ Ltd.

………………………..

………………………

(England)

Dar Sir,

We are exporters of a wide variety of item including ……………………………for the last ten years.

Our major buyers are …………………in……………………..We are one of the registered Export Houses in our country.

We represent…………….the leading manufacturers of these items in India.

These items are produced in collaboration with……………………………..the world famous company.  We follow the ISI specifications.

We believe that your company imports the items we export.  We are interested in expanding our trade with your company.

We are enclosing herewith a copy of our brochure and price list for your kind perusal.  We shall be glad to send detailed literature/samples of items that may be of interests to you, on haring from you

Thanking you in anticipation.

Yours truly,

For ABC Ltd.

Manager (Marketing)

Comments

1.                  The text can be suitably amended with reference to the manufacturing activity or/items dealt in by the exporter.

2.                  Where the manufacturing is not in collaboration with a foreign company, it need not be referred to.

3.                  Product literature (of the buyer’s interest) and price list should invariably be sent along with letter.

4.                  The price list should categorically indicate whether the prices are f.o.b., & & C&f c.i.f. etc.  However, discount need not be indicated in the price list.

5.                  The profile of your Company should generally include the following matters:

(I)                 Company’s name and address/E-mail Address/Telephone/Cable/Fax/Date of establishment. (II) Export Executives; (III) Status: Partnership/Company (Pvt. Ltd./Pub.Ltd) Govt. (semi-Govt.)etc.: (IV) Bank Reference; (V) Exporting Since; (VI) Value of Assets;  (VII) No. of Employees; Manufacturing; Sales; Administration; (VIII) Foreign Offices/Representatives, if any; (IX) Exporter; Manufacturer; Agent; (X) Main Line; (XI) Technical Collaboration; (XII) Standards/Specification followed; (XIII) Major Buyers- In India; Abroad;