UNIT 6
Making Counter-Offers
If an offeree does not agree with any of the transaction terms of a quotation or an offer, he will send a counter-offer.
When the offeree disagrees with the offer sent to him or her and makes some changes, the changed offer is called a counter-offer. In the counter-offer, the offeree may show his disagreement to the certain term or terms and state his own idea instead. Such alterations, no matter how slight they may appear to be, signify that business has to be negotiated on the renewed basis. The original offeror now becomes the offeree who has the full right of acceptance or refusal. In the latter case, he may make another counter-offer of his own. A counter-offer is virtually a partial rejection of the original offer and also a counter proposal initiated by the offeree. This kind of rejection or disagreement may be on the price, terms of payment, date of delivery, the packing, shipment or any other terms concerned.
So a counter-offer may be defined as a new offer made in response to a previous offer by the other party during negotiations for a final contract. It means that he doesn't completely agree to the terms in the offer. Making a counter-offer automatically rejects the prior offer, and requires an acceptance under the terms of the counter-offer. A counter-offer is not legally binding on both parties and the counter-offer process can go on for more than once until business is finalized or called off.
An acceptance is a final and unqualified expression of assent to the terms of an offer or a cownter-offer. It also means the conclusion of business. As long as one party completely accepts the terms in an offer given by another party, the terms and conditions in the offer are legally binding on both parties.
Specimen Letters
Letter-6 (1) (Request for a Lower Price)
DASTECH INTERNATIONAL, INC.
101 Cutter Mill Road, Great Neck, New York 11025, USA
May 28, 2015
Yantai Xiangyu Import & Export Corporation
Yantai
CHINA
Dear Mr. Lee，
Re: Apples
Thanks for your letter of May 26, offering us 36 M/Ts of apples at USD 1,980 per M/T FOB Yantai.
Our customers in Charleston find your price much too high. As far as we know, apples have been sold here at a level about 25% lower than yours. It is true that your apples taste better and the size is larger, but the difference in price, should, in no case, be as big as 25%.
I like the taste of your apples and would be ready to make business with you. In order to have a good starting point of the business and to conclude the business, we counter-offer as follows, subject to your reply reaching us by June 6, 2015 New York Time.
36 M/Ts of apples（15 kg net for each carton）
at USD 1,810 per M/T FOB Yantai, other terms as per your letter of May 26, 2015
As the market is declining, we recommend your early acceptance.
Yours sincerely，
Edward Kahen
Letter-6 (2) (Asking for a Lower Price)
Hawker Wood Trading Co., Ltd.
20 High Street, Phoenix, Arizona 85011, USA
May 28, 2015
YANTAI XIANGYU I & E CORPORATION
71 Jianshe Road, Zhifu District, Yantai
Shandong Province, 264000
Dear Sirs，
“D. D.” Raincoats
Thank you for your letter of June 25 offering us your “D. D.” brand raincoats.
To be candid with you, we like your raincoats, but your prices appear to be on the high side as compared with those of other makes. It is understood that accepting the prices you quoted would leave us little or no margin of profit on our sales. As you know, Kuwait is a developing country, its principal demand is for articles in the medium price range.
We appreciate your prompt response to our enquiry and would like to take this opportunity to conclude some transactions with you. We would, therefore, suggest that you make some allowance, say 10%, on your quoted prices so as to enable us to introduce your products to our customers. If, however, you cannot do so, then we shall have no alternative but to leave the business as it is.
For your information, some shipments from Hong Kong have been sold here at a much lower price. We hope you will consider our counter-offer favorably and let us have your acceptance by e-mail. It may interest you to know that once you have opened up a market here, you would have every advantage of developing a beneficial trade in the Gulf.
Yours sincerely，
David Spear
Letter-6 (3) (Request for a Lower Price Rejected)
YANTAI XIANGYU IMPORT & EXPORT CORPORATION
71 Jianshe Road, Zhifu District, Yantai
Shandong Province, 264000
P.R.CHINA
August 5, 2015
Abdullah Samih & Company
Dear Sirs，
Re: Apples
Thanks for your letter of Aug. 1, 2015 that the price we offered for the subject article is found to be on the high side.
We really appreciate your cooperation in providing us the information about the price level at your side, we have to regret to say that there is no possibility for us to cut the price to the extent you quoted. We have supplied the European market and US market at the price we quoted for a long time and expect to make business with you at something near our normal price level. At present we cannot see our way clear to entertain your counter-offer, as our price is quite realistic. We wish we could lower our price but unfortunately we cannot do so.
Looking forward to hearing from you soon.
Sincerely yours，
James Wang
Letter-6 (4) (Request for a Better Price)
YANTAI XIANGYU IMPORT & EXPORT CORPORATION
YANTAI, CHINA
September 20, 2015
Messrs. Barrington Bros. Ltd.
882 Queen Victoria Street
London, E. C. 4
UK
Dear Sir，
Thank you for your letter of Sept. 15th, offering us 50 long tons of the goods at USD 1,050.00 per long ton CIF London, usual terms.
In reply, we very much regret to state that our end-users here find your price too high and out of line with the prevailing market level. Information indicates that the sugar of England-made has been sold at the level of USD 980.00 per long ton.
Such being the case, it is impossible for us to persuade our end-users to accept your price, as goods of similar quality is easily obtainable at a much lower figure. Should you be prepared to reduce your limit by, say 8%, we might come to terms.
It is in view of our long-standing business relationship that we make you such a counter-offer. As the market is declining, we hope you will consider our counter-offer most favorably and fax us acceptance at your earliest convenience.
We are anticipating your early reply.
Yours faithfully，
Eric Chou
Letter-6 (5) (Asking for a Better Price)
Hawker Wood Trading Co., Ltd.
20 High Street, Phoenix, Arizona 85011, USA
May 30, 2015
YANTAI XIANGYU I & E CORPORATION
71 Jianshe Road, Zhifu District, Yantai
Shandong Province, 264000
Dear Sirs，
We acknowledge receipt of both your offer of May 5 and the samples of Men's Shirts, and thank you for these.
While appreciating the good quality of your shirts, we find your price is rather too high for the market we wish to supply.
We have also to point out that the Men's Shirts are available in our market from several European manufacturers, all of which are at prices from 15% to 20% below yours.
Such being the case, we have to ask you to consider if you can make reduction in your price, say, 10%. As our order would be worth around USD 30,000, you may think it worthwhile to make a concession.
We await with keen interest your immediate reply.
Yours faithfully，
David Spear
Words, Phrases and Notes
1. conclude a business: make（close）a deal/business/transaction 达成交易，成交
e.g. We expect to conclude a business with you at something near our normal price level．我们愿意在我们正常价格附近达成交易。
2. counter-offer: an offer which doesn't completely agree to the terms in the original offer 还盘
3. as per: conj. according to; in accordance with 根据；按照
商务信函中常用搭配有：
as per our video call 根据我们视频的内容
as per your request 按照贵方要求
as per your e-mail attachment 根据你方电子邮件的附件
4. decline: v. refuse politely 谢绝，婉拒
e.g. We have to decline your order since the supply falls short the demand．因为供不应求，我们不得不谢绝你方的订单。
n. decrease 下降
e.g. The decline in sales signifies that this year is the most difficult．销售的下降说明今年是最困难的。
5. to be candid with you: to be frank with you; honestly speaking 坦率地说
6. on the high side: a little bit higher（价格）偏高
on the low side:（价格）偏低
7. makes: n. brand 制作，本文指“品牌”
8. It is understood that: It is natural that; There is no doubt that 不用说，当然，毫无疑问
9. margin of profit: room/space to make the profit 利润空间
e.g. This offer leaves us no margin of profit on our sales．这个报盘给我们的销售没留任何利润空间。
10. principal ['prinsəpəl]: adj. main 主要的
11. allowance [ə'lauəns]: n.
（1）a price reduction 折扣，折价
e.g. The exporter makes an allowance of 10% for an order of 1,000 pieces．出口商对于订购1000件给予10%的折扣。
（2）subsidy 津贴，补助
e.g. A travel allowance covers hotel and restaurant bills．旅行补贴包括食宿费用。
12. alternative [ɔːl'təːnətiv]: n. one of several things which only one can be chosen 供替代的选择have no alternative but：别无选择
13. leave the business as it is：放弃这笔业务
14. favorably ['feivərəbli]: adv. actively 积极地，有力地
15. have every advantage of: have superiority of 有充分优势的
16. Gulf: n. the Persian Gulf 海湾地区
17. subject article: the goods which have been mentioned before 所述货物，所谈及货物；合同项下货物
同义的表达还有：the said goods, the captioned goods
e.g. Please offer us your best price for the subject articles．请就所述货物给我们报最好的价格。
We are in need of one million square feet of the subject goods for prompt delivery．我们需要一百万平方英尺所述货物，立即装运。
subject: n. sth. talked or written about or studied 主题，标题
e.g. Your letter of June 24 on the above subject has received our careful attention．我们已经认真地注意到你方6月24日有关上述主题的信函。
on the subject of: concerning; dealing with 关于
e.g. On the subject of S/C No. 57, please ship the goods as soon as possible．关于57号销售合同，请尽快装运货物。
18. extent: n. the degree to which sth. extends 范围，广度
e.g. The carrier is liable only to the extent that the loss, damage or delay in delivery is
attributable to such fault or neglect．承运人只在能归之于这种过失或疏忽所引起的灭失、损坏或延迟交付的范围内负责。
19. entertain: v. give admittance to; accept 容纳；接受
e.g. We cannot entertain your claim．我们不能受理你们的索赔。
He said they would entertain our proposal．他说他们会接受我们的提议。
20. lower: vt. make sth. less in amount, degree or value 降低
lower the price 降低价格
lower expectations 降低期望
21. long ton: British unit of weight 长吨（1,016 kg）
类似的表达还有：metric ton 公吨（1,000 kg）
short ton: US unit of weight 短吨（907 kg）
22. end-user: final user 最终用户
23. out of line（with）：不协调，不一致
24. prevailing market level：普遍的市场价格
e.g. Your price is too high and it is out of line with the prevailing market level．你们的价格太高，与普遍的市场行情不符。
25. come to terms: conclude a business 达成交易，接受条件
26. at one's earliest convenience: as soon as possible 尽早，得便务请从速
27. anticipate [æn'tisipeit]: v. expect 预期，期望
28. such being the case: since it is so 既然如此
e.g. Such being the case, we have no alternatives but to leave the business as it is．既然如此，我们别无选择，只有放弃这笔业务。
29. be worth: the value is about 价值相当
30. make a concession: compromise; concede 妥协，让步
e.g. Since this is the our rock-bottom price, we can not make a concession any more．这是我们的最低价格，我们不能再让步了。
Commonly Used Sentences
1. We think your offer is too high, which is difficult for us to accept．我们认为贵方的报价太高了，我方难以接受。
2. Our offer is reasonable and realistic. It comes in line with the prevailing market．我方的报价是合理的、现实的，符合当前市场的价格水平。
3. If you insist on your price and refuse to make any concession, there will be not much point in further discussion．如果贵方坚持自己的价格，不做出让步，我们就没有必要再谈下去了。
4. Let's have your counter-offer．请你方还价。
5. We make a counter-offer to you of US$ 150 per metric ton FOB London．我们向你方的还价为每公吨伦敦离岸价150美元。
6. Your counter-offer is too low and we can't accept it．你方还价太低了，我方无法接受。
7. It's absolutely out of the question for us to reduce our price to your level．我们不可能将价格降到你方所要求的那么低。
8. We can't accept your offer unless the price is reduced by 5%．除非你方降价5%，否则我方无法接受报盘。
9. I'm afraid I don't find your price competitive at all．我认为你方的报价毫无竞争性。
10. I think it unwise for either of us to insist on our own price．我认为彼此都坚持自己的价格是不明智的。
11. I'll respond to your counter-offer by reducing our price by three dollars．我同意你方降价3美元的还价。
12. If the price is higher than that, we'd rather call the whole deal off．如果价格比这还高，我们宁愿放弃这桩生意。
13. I'm sorry. The difference between our price and your counter-offer is too wide．很遗憾，我们的价格与你方还盘之间的差距太大。
14. This is our rock-bottom price, we can't make any further reduction．这是我方的最低价格，我们不能再让了。
15. How about meeting each other halfway？双方各让一半如何？
16. As a rule, the larger the order, the lower the price．买得越多，价格越便宜。这是惯例。
17. The market is firm with an upward tendency．目前市场坚挺，且呈上涨趋势。
18. My offer was based on reasonable profit, not on wild speculations．我方的报价以合理利润为依据，不是漫天要价。
19. We have received the offers recently, most of which are below USD 100．我们最近收到的报价大多数都在100美元以下。
20. Moreover, we've kept the price close to the costs of production．再说，我们已经把价格压到接近生产成本了。
Effective Writing Skills
For an international business negotiation, one of the most difficult things to do is to give a reasonable and proper counter-offer. This process, in which the seller offers and the buyer responds by giving different prices, terms of payment, packing requirement, often involves a formal letter in which both sides outline the terms. Follow these tips for composing a counter-offer letter.
1. Begin the letter by thanking the seller for the offer and let them know how much you look forward to accepting the offer.
2. Address specific terms from the original offer and outline the differences that you are looking for in your counter-offer.
3. Compromise when necessary and explain in details why you think your counter-offer is more reasonable than his offer or you need him to revise the offer.
4. Hope for an early reply.
Letters for Optional Study
LOS-6 (1) (Urging the Buyer to Make a Decision)
Dear Sirs，
We sent you our quotation for cotton and silk blouses for your enquiry of August 5 the day before yesterday. We have marked those items that are available from stock. For the remaining items the stated dates of delivery are approximate, but in no case would these dates be exceeded by more than a fortnight.
All the items quoted are made of the best quality materials and can be supplied in various designs and colors. We can also accept orders for blouses to be made according to instructions in order to meet the individual requirements of the masses. Please avail yourselves of this advantageous condition and place your orders with us now.
Please note that those items that are available from stock are our firm offers. If you cannot accept, we'll have no other alternatives but to leave the business as it is.
We enclose a copy of our latest catalogue as we feel that you may be interested in some of our other products, such as leather shoes and gloves as described and illustrated on pages 10-15 of the catalogue. If so, please do not hesitate to ask us for quotations and offers, which will receive our careful attention, and we assure you of our close cooperation at all times.
Yours sincerely，
China National Import & Export Corp.
Sun Qiang
Encl. 1 quotation
1 catalogue
LOS-6 (2) (Asking for a Compromise)
Dear Sirs，
Re: Sports Wear
Thanks for your letter of March 23th, 2015 asking us to reduce our quotation for sportswear uniforms for Hockey by 20%.
As you are quite aware that our goods are well received in many countries owing to their fine quality and reasonable price. All our prices have been carefully calculated and cut to the limit, at which we have done large business with many other buyers in different countries.
However, in order to encourage your business with us, we are prepared to meet you half way by making further reduction of 10% in our quotation. This is the best we can do and we hope it will be acceptable to you.
We are looking forward to receiving your orders at an early date.
Yours truly，
Zhang Wei
LOS-6 (3) (Asking for a Better Price)
Dear Sirs，
Re: Tin Foil Sheets
We wish to thank you for your letter of July 20th, offering us 50 long tons of the captioned goods at USD 210 per long ton CFR Shanghai, usual terms.
In reply, we very much regret to state that our end-users here find your price too high and out of line with the prevailing market level. Information indicates that some parcels of Japanese make have been sold at the level of USD 200 per long ton.
Such being the case, it is impossible for us to persuade our end-users to accept your price, as materials of similar quality is easily obtainable at a much lower figure. Should you be prepared to reduce your limit by, say, 8%, we might come to terms.
It is in view of our long-standing business relationship that we make you such a counteroffer most favorably and fax us acceptance at your earliest convenience.
We are anticipating your early reply.
Yours faithfully，
Exercises
I. Answer the following questions.
1. What is the meaning of a counter-offer?
2. What is the meaning of acceptance?
3. What are the usual steps to write a letter of making a counter-offer?
II. Translate the following sentences from Chinese into English.
1．我方的报价已经过认真的计算，很遗憾我们不能接受你方的还价。
2．如果你们能将折扣提高到5%，我们就会马上向你们下订单。
3．我看你们的报价毫无竞争性。
4．这是我方的最低价格，我们不能再让了。
5．很遗憾，我们的价格与你方还盘之间的差距太大。
6．你我双方做业务多年，理应同意你公司关于降低我方内衣价格的建议，但是困难不少。
7．我方昨日所报价格实际上已低于同类商品竞争者们的报价，我方只能获得微薄利润。
8．在过去2个月内原料成本上升很快，如按贵方所提建议减价10%的话，很难保证产品的质量。
9．你我双方做业务多年，理应同意你公司关于降低我方内衣价格的建议，但是困难不少。
10．如果你们能将折扣提高到5%，我们就会马上向你们下订单。
III. Translate the following sentences from English into Chinese.
1. The quality of the goods is satisfactory in every respect. The prices, however, are much higher than those of other manufacturers.
2. We will place you an order for 5,000 dozens of No. 80 if you can allow a 5% discount.
3. Our price is reasonable, compared with that in the international market.
4. At your price I'm afraid you'll stand very little chance of obtaining the business.
5. No other buyers have bid higher than this price.
6. Let me make you a special offer.
7. This is the maximum quantity we can supply at present.
8. We want a minimum of 1,000 dozens of men's shirts and minimum of 5,000 dozens of embroidered shirts.
9. Can you supply us an additional 200 cases?
10. We will place you an order for additional 4,000 shirts.
11. This year we can buy an extra 700 blue jeans.
12. We'll try our best to satisfy you with the additional 10,000 tons of coal as you asked.
IV. Translate the following letter into Chinese.
Dear Sirs，
Thanks for your letter of July 6th in which you have offered us 1,000 sets of the captioned goods at USD 1,980 per set FOB Yantai.
After careful and repeated study, we are pleased to advise you that your offer is quite acceptable except the fact that your price is rather on the high side and out of line with the prevailing market. As you know, competition here is very fierce. Most of the competing goods are selling at a level about 15% lower than yours. We are fully aware that your goods are better in quality than theirs, but 15% is such a big difference that we can see no way to persuade our end-users to accept your offer.
To conclude the business, should you be prepared to cut your price by, say 10%, we might place an order with you immediately..
Looking forward to your early confirmation.
Yours sincerely，
Zhang Ming
V. Letter writing.
Please write a reply and make a counteroffer to the above letter in Exercise IV, try to explain why your suggestion is more reasonable.