Request from a buying agent

This letter is from a buying agent in the UK asking a French store if he could represent them. Buying agents have a first-class knowledge of the country, its products, the most competitive prices on the market for goods, freight, and insurance, and that is why they often take a commission on c.i.f. invoice values rather than net invoice values.

L. Dobson & Co. Ltd.

Royal Parade, Plymouth PL1 4BG

Telephone:0752 31261 Reg. No.: 81 561771

Telex:110753

Vivas S.A.R.L. 8 June 20—

138 rue Cimarosa

F-75006 Paris

For the attention of the Chief Buyer

Dear Sir,

I am replying to your advertisement in the trade magazine Homecare in which you said you were looking for a buying agent in the UK to represent your group of stores in France.

My company already acts for several firms in Europe and America and we specialize in buying domestic appliances and other household goods for these markets. We have contacts with all leading brand manufacturers so we are able to obtain specially reduced export prices for their products and we can offer excellent terms for freight and insurance.

Our usual commission is 5 per cent on c.i.f. invoiced values, and we make purchases in our principals' names, sending them accounts for settlement.

We will keep you well informed of new products that come on to the market, sending you any information or literature that we think will be helpful.

I have enclosed our usual draft contract for you to consider, and if you are interested, I would be pleased to hear from you.

Yours faithfully,

L. Dobson

Enc.

Vivas S.A.R.L

138 rue Omarosa, F-75006 Paris

Tel (1)46031309 Telex. 621593 Fox: (1) 46031931

L. Dobson & Co. Ltd.

Royal Parade

Plymouth PL 14BG

UNITED KINGDOM 23 June 20—

Dear Mr Dobson,

Thank you for your letter in reply to our advert in Homecare. Although we are interested in your proposition, the five per cent commission you quoted on c.i.f. invoice values is higher than we considered paying. However, the other terms quoted in your draft contract are quite suitable.

We accept that you can get competitive rates in freight and insurance. Nevertheless, we do not envisage paying more than three per cent commission on net invoice values, and if you were willing to accept this rate we would sign a one-year contract to be effective as from 1 August. We can assure you that the volume of business would make it worth accepting our offer.

Yours sincerely,

Mane Varenne (Mme)

10.5.8

Reply to a buying agent's request

The French company is not happy with Mr Dobson's proposal to charge 5% commission on c.i.f. invoiced values.

Questions

1. Does Mme Varenne concede that Dobson's rate is justified?

2. If Mme Varenne's counter-proposal is accepted, what sort of contract would be offered?

3. What is a 'draft contract'?

4. How does Mme Varenne explain that her offer is worth considering?

10.5.9

Agent's report

Here is a report from an agent who is sending an account sales to an English publisher for books he has sold on his behalf in South East Asia. The Agent takes advantage of the letter to make an enquiry.

Date: 2016-01-03; view: 990