TRADE LETTERS

A) LETTERS OF INQUIRY (LOI):

○ It is a request for information.
○ Related to purchases in trade. ( Commodities, services, accommodation
or land.)
○ LOI sent out for goods / services that the writer usually does not
purchase.
○ LOI’s are sent to several firms and a comparative price is obtained.

LOI’s are sent out for:

• New goods that have entered the market / good or services the writer does
not know much about.
• Routine or regular orders / obtaining sole selling agency rights.
• Estimates of work / service. Eg. Decorating, office furnishing etc.
 Points to be considered while writing a LOI:

1) Clearly indicate the quantity of goods required, quality or nature of services

needed.
2) Inform the seller of the purpose for which the goods are required. Eg: if you need
10 crates of apples, mention is it for consumption or to be tinned.
3) Date if any by which you need the goods to be delivered.
4) Quote your price, but not always advisable.
5) If the same letter is sent to several sellers, mention it. This will tempt the seller to
quote a lower price.
6) Tempt the seller with a prospect of bulk order or the hope of future orders.
7) Ask for samples, designs, catalogues, price list etc.
8) Ask for a prompt reply.
 Reply to a letter of inquiry:
1) Send the reply promptly.
2) Thank the letter writer for the inquiry & interest shown in the product / service.
3) Enclose a catalogue, price list, literature etc.
4) Inform of the availability of stock with you, terms of discount, transport and delivery.
5) Mention mode of payment.
6) Mention period for which offer is open.
7) Make a firm offer.
8) If goods asked for are not in stock, promise to obtain them or make a substitute offer.
9) Invite further inquiries and offer to help.
10) Ask for an Order.
1. A Substitute Offer:
○ If the desired commodity is not available at the time of inquiry, explain the reason
for unavailability of stock and offer substitutes.
○ Substitute goods should be of near quality and price of the goods inquired about.
2) A Firm Offer:
● Offer made by supplier to sell goods at a certain price within a specified period,
irrespective of market fluctuations.
● Helps to create goodwill.
● Made in connection with goods whose price is expected to rise or for which demand is
likely to increase.

3) Retaining Old Customers:

● It is pointless to acquire new business, if old customers leave.
● Inquiries & complaints of old customers should be dealt with promptly & where
possible give extra benefits.
4) Bargaining Letter:
○ Bargaining takes between buyers and sellers through letters.
○ Buyers after receiving quotation, try to induce the seller to quote a lower price.
a) This is done by –
b) Tempting the seller with large future orders.
c) Mentioning the lower price quoted by each seller.
d) Promise frequent orders in future.

LETTERS OF COMPLAINT
The aggrieved party complains for the following purpose:
• Poor quality or improper quantity of goods received.
• Goods arriving late
• Goods arriving in damaged condition
• Defective packaging
• Goods differ from the sample
• Goods differ from those specifically ordered
• Higher price
• Mistake in bill or invoice
• Poor service, discourtesy shown by staff of seller
• Reminders for payments
• Goods delivered to the wrong party or place &
• Poor after sales service

HOW TO WRITE A LETTER OF COMPLAINT

1) Right addressee: address the letter to the right person / department so as to detect the
error as soon as possible.
2) Polite tone: a complaint is not to quarrel, but to point out the mistake & get it rectified.
The tone must be polite and firm. Do not hurt, humiliate or insult the other person.
3) Specific details: Date and time of the order of delivery, the nature and
● quality of goods ordered or services employed, detail of what went wrong
● and where, nature of the loss to the writer, how best the writer can be compensated
for the loss, date of delivery.

4) Legalistic content: the letter must sound from a legal point of view, which means the
complaint must be genuine. If the matter goes to the court of law, the claim made by the
writer must prove legally effective.

5) Specific and firm Demand for Adjustment: specify the manner in which an adjustment
must be made. Eg: if the new TV set is defective, specify what you want – to be replaced,
repaired or cash back.

6) Tolerant Attitude: if an appeal is made in fair play to the reader, the claim is certain to
be met and his complaint adjusted.
HOW TO WRITE A REPLY TO A LETTER OF COMPLAINT / ADJUSTMENT LETTER
1) Prompt Reply: ‘justice delayed is justice denied’. It may take several days or weeks
to investigate the complaint. But this is not the pretext to delay the reply. Reply
immediately, assuring that the complaint will be investigated. The purpose of the letter
is to restore faith, confidence and goodwill which has been lost.

2) Apologise the customer if required: after investigation, if complaint is found to be

genuine, the complainant deserves an unconditional apology with the assurance that
the reason for complaint will never occur again.

3) Avoid argument: avoid entering into an argument. Even if you are right, it is not
profitable to get into a heated argument with him. You may win the argument but lose
The aim of adjustment letter should be threefold:
a) Try to make the complainant believe that he is being fairly treated.
b) Try to re-establish the confidence of the complainant in the goods, product or service
of the seller.
c) To regain his goodwill and try to restore the customers faith in the company.

4) Avoid detailed explanation of the error: Just give a brief explanation. Do not repeat the
fault in your letter already mentioned in the complaint.

5) Frank & Cheerful tone: the general tone of the letter should be frank & cheerful. Helps
to build goodwill and increase business. N

6) Correct language: Don’t be too blunt and loose a valuable customer. ‘The customer is
always right”.
 TYPES OF ADJUSTMENT:
1) Complainant at fault: when the complainant is at fault, the claim is not granted.
Explain the position fully before refusing to grant the claim. Appeal a sense of fair
play.

2) Complaint genuine: where complaint is genuine, complainant deserves nothing less

than a full and frank apology with an assurance to meet the complaint.

3) Third party at Fault: clearly state 3rd party is at fault in a friendly manner. End the
letter with a promise to take up the matter with the 3rd party. Where this is not
possible, suggest alternatives to the complaint.
4) Fault under investigation: when fault has not been found out, make an unconditional
apology. Ask for the co-operation of the complainant in investigating the fault.

5) Fault Divided: sometimes fault is of both the complainant and the writer. Explain the fault
clearly but tactfully. Suggest the adjustment the writer is going to make and explain why he
cannot make the full claim.

HOW TO ADJUST:
1) Pay back in whole or part
2) Reduce the price
3) Give extra discount
4) Supply substitute goods
5) Give some extra service or repair the damaged goods.
 Sales Letter
A letter that attempts to sell something.
• is compared to a salesman. (Focused customers)
• Reaches the client however busy he may be. (cost effective).

PURPOSE OF A SALES LETTER

• Direct sales - mail order business.

• To market a new product by arousing interest among potential buyers.
• To obtain an inquiry.
• To build goodwill after the transaction is over -- after sales service.
• To prepare the ground for the visit of a salesman.
• To arouse interest by announcing the result of a test or survey.
• To educate the public about a new service or product.
• To arouse interest in the enterprise itself and in its plans & objectives & future
COMMON MISTAKES WHILE DRAFTING A SALES LETTER:
• Making exaggerated claims
• Running down rival products
• Attempting to deceive the reader by underestimating their intelligence.

❖ Basic principle for a sales letter - Use “YOU ATTITUDE”

➢ what the reader wants to know, respecting the reader's
intelligence
 DRAFTING THE SALES LETTER
Like Advertising use - AIDA (Attention, Interest, Desire, Action) consumers move
through a series of steps or stages when they make purchase decisions.
I] ATTENTION: To draw attention, the beginning & the end lines are very important.
(Effectiveness of opening & closing paragraphs)
Eg: 1) “starving people win no victory”
● 2) “Have you considered giving your wife a hair dryer as a Diwali gift?”
● 3) “If you want to save 20% on your electricity bill, consider the following facts –”
● 4) “Are you interested in your child’s future?”
The word “You is repeated throughout the letter to sustain interest & play on the ego of
 Some methods of attracting attention are:

1) By asking questions: By quoting figures:

a) 11, 500 satisfied customers prove -----
a) When did you have the last
vacation?
b) What do you do with your spare 5) By referring to something topical:
b) You may not be a power broker but -----
cash?
c) When the civic strike begun last week
-----
2) By offering bargains:
c) You can save ₹ 150 if you act now. 6) By using proverbs:
d) Many hands make light work, so does
d) Special offers for regular Vanish Stain Remover.
customers.
II] INTEREST : An appeal to interest the different types of customers. The appeal must
carry conviction.
Customer must be convinced of the merits of the products.
A common set of appeals –
a) Pride of possessions: people buy products for utility & also for display, to show off to
their neighbours and friends. Eg: Expensive cars, rare watches, etc.
b) Vanity: people like to have things that their neighbours do not have. Eg: curios,
made-to-order furniture & fittings.
c) Instinct to economise: this appeal is universal. Everyone likes to get things cheaper or
at a discount.
d) Save time:
e) health, comfort, cleanliness: with the spread of basic education, people are more health &
cleanliness conscious. This type of appeal is very effective.

g) Fear: desire to protect family and self is a natural instinct. Insurance companies & bankers
exploit this appeal. (Warranty)
h) Getting something free: Eg: scrubber free with cleaning liquid
i. Facts & Figures: Statistical appeals are more effective with educated people.

j) Testimonials: film star or sports persons endorsing a product. Eg: hair oil, health drinks,
perfumes, soaps etc.
k) Guarantees: uarantee with free service for a period of time.
III] DESIRE : from ‘I like it’ to ‘I want it’.
● Arousing desire is the next function of the sales letter. The reader needs to be made
aware of a need, not considered before.
● Eg: a customer of 21 years has not considered the problem of old age. A sales letter
addressed to the young by insurance co. will mention problems, arouse a desire to
provide for retirement period.

Claims supported by expert opinion/testimony/ evidence.

Eg: “We are sending you a free set of our of Tex fountain pens and ball point pens.”
“For the last years we have been in the repairing business now. We count among our
clients such well know companies as ______.”
“Last year we exported _______ tons of _______ to Japan. Our firm is mentioned in the
IV] ACTION: Ultimate goal is to initiate action.
● Enclose a prepaid card and self addressed envelope with encouraging words.
● Action is initiated only if the previous part (III) has been well drafted. The sales letter
could end as ------
○ Please come to our store within the next four days; after four days you will not be
able to take advantage of this remarkable offer.”
○ “Let us know the day and time that is convenient to you so that we cans end our
salesman with a few samples.”
○ “Don’t delay is filling in the attached coupon ______”
○ “But do hurry, we would hate.”
○ “This attractive offer is definitely open only for seven days.”
 PROMOTIONAL LEAFLETS AND FLYERS
• Mode of promoting the product before the consumer in an attractive manner so as to
promote its sales.
• The features and specifications of products.
• Leaflets – open letters, designed to be handed out to people, by hand, post. inserted in
news paper, left in coffee shops, libraries.
• Professionally designed. Costs more than a flyer, because of the weight of the paper.
Life span of information is longer.
• Flyers – paper advertisement for wide distribution and posted / distributed in public
places.
• Less graphics / designs used. Printed on brightly coloured paper. Life span of the
 HOW TO DESIGN A LEAFLET / FLYER
● A leaflet gives you a chance to put across your argument and to draw
attention to your group, cause or event.
● Size and shape of the leaflet is very important.
● Use heading with different sizes and styles of writing.
● Don’t make your leaflet too wordy.
● Use bullet-points, headings and short paragraphs.

● Select an attractive opening sentence, relevant to the subject of the

advertisement. – proverb, question, exclamation or a novel idea may be an
opening sentence.
 CONSUMER GRIEVANCE LETTERS

• Consumer awareness is the first step in the redressal of grievance.

• To safeguard the interest & economic rights of consumers, the government has
enacted the Consumer Protection Act 1986 (COPRA).
• Before going to the consumer court the aggrieved person should exhaust other
remedies such as complaining over phone, in person, through letters or
writing to newspapers.
• Consumer Guidance societies. Act as mediators, resolve disputes.
 HOW TO FILE A CONSUMER COMPLAINT
● Before filing a complaint, notice is to be given to the opposite party of the fact of the
deficiency in service.
● If the opposite party is ready to resolve the issues, the problem is solved.
● If not them the consumer needs to approach the Consumer Court.
Step 1) Identify the Jurisdiction of the Forum where the complaint is to be filed. This is
from the point of view of Territory & Pecuniary Jurisdiction (Money) and choose the
correct forum.
● Pecuniary Jurisdiction of Consumer Forums:
FORUMS AMOUNTS

District Forum Upto ₹ 20 Lakhs

State Commission ₹ 20 Lakhs to ₹ 1 Crores

National Commission Exceeding ₹ 1 Crore

● Step 2) pay the prescribed fees along with the complaint before the concerned forum.

● Step 3) draft the complaint stating facts necessary to establish a cause of action.

● Step 4) put your signature at the end.

● Step 5) mention name, description and address of the complainant and name, address of

opposite party against whom relief is claimed.

● Step 6) copies of documents supporting allegations – copy of bill, warranty, guarantee, copy of

complaint etc. need to be attached.

● Step 7) Ask compensation cost alleged in the complaint. Consumer can also ask for refunds,

damages, litigation costs and interest amount.

● Step 8) explain how the case falls within the jurisdiction of this forum.

● Step 9) complaint must state as to what relief is sought against the opposite party.

● Step 10) the Act provides for limitation period of 2 years from date of cause of action.

If there is a delay, explain the cause of delay.

● Step 11) you are required to file an affidavit along with the complaint that facts

stated in the complaint are true and correct.

● Step 12) the complainant can present the complaint in person or registered post.

A minimum of 5 copies of the complaint is to be filed in the forum.

 Right To Information
• The RTI has empowered the ordinary Indian against autocratic bureaucrats and
ministers.
• Set of questions asked to Public Information Officer.
• The act is applicable to whole of India except Jammu & Kashmir.
• Information includes – records, documents, memos, email, press release, circulars,
orders, logbooks, report and minutes of meetings.
• The right include - right to inspect all relevant material, always provided that it
exists in public interest.
• https://rti.gov.in/ https://rti.gov.in/audio/Shart-60Sec.mp3
 Steps in drafting an RTI

● Step 1) prepare a list of questions and number them.

● Step 2) insert an introductory text which can be like a letter. Can contain some general
text like – Respected Sir, kindly provide the following information ----, followed by the
questions.
● Step 3) specify the serial number of the Postal Order enclosed with the application fee.
Specify whether the information is public information or you are a concerned party.
Specify the reasons. (Optional)
● Step 4) subject line – Request for information under Right to Information Act, 2005.
● Step 5) using a paper clip attach the postal order with your letter.

TIPS TO WRITE AN RTI

● Specify the bare list of information.

● Be good & childishly simple for the PIO (Public Information Officer) to fulfil.
● Write many small RTI applications instead of a lengthy applications. Fine: Rs. 250 * days
of delay * no. of unanswered RTI applications.
● Keep the period of information minimal.
● Don’t send your first draft. First drafts are always faulty.
 POP UP QUIZ
● Justice delayed is justice____.​
( denied/ refused/ delivered/ granted)​
​
● _____ language that will cast a doubt on the honesty or integrity of the
complaint.​
( Use/ Confuse/ Avoid/ Employ) ​
​
● The writer should express ___ for making the complaint.​
( joy/ regret/ condolence/ happiness)​
 ● ____ is a person who buys or hires goods or services.​
( Consumer/ Seller/ Manufacturers/ Producer)​

● A____ is also called a circular, handbill or leaflet.​

( Flyer/ Memo/ Report/ Proposal)​

● The purpose of writing a letter of complaint is not to start a

___.​
( deal/ consignment/ quarrel/ Contract)​