Making a counter offer

Mrs. Carey Export Manager Ausrice Pty Brisbane  Australia Dear Mrs. Carey, We are in receipt of your letter of 31 July offering us 100 metric tons of polished rice at A$1,200 per metric ton on the usual terms. We regret to inform you that our buyers find your price much too high. We are informed that some lots of American origin have been sold here at a level about 30% lower than yours. We do not deny that the quality of Australian rice is slightly better but the difference in price should, in no case, be as large as 10%. To facilitate the transaction, we counter offer as follows, subject to your reply being received by us before 30 September 1996. 100 metric tons of polished rice, 1996 crop, at  A$1,050 per metric ton CIF Singapore, other terms as per your letter of 31 July As the market price is falling, we recommend your immediate acceptance. Yours sincerely,		Useful phrases Line 3 We regret to inform you that our buyers find your price much too high. Line 6 We do not deny that the quality of . . . is slightly better but the difference in price should not be as large as . . . Line 7 To facilitate the transaction, we counter offer as follows, subject to your reply being received by us before . . . Line 12 As the market price is falling, we recommend your immediate acceptance. Notes Para. 1 Identify the reference and state the details of the offer. Para. 2 State your objection to the quotation and the reasons for it. Para. 3 State the counter offer with all necessary details. Para. 4 Urge the seller to accept the offer.
Comments A counter offer is an attempt to bargain for a lower price. Here, the prospective purchaser is clearly stating his objections to the price offered and giving reasons why the seller should accept. The transaction is on CIF terms, which means that carriage, insurance and freight costs are included in the price.	Alternative Phrases Line 1      We have received your letter of . . . Line 3      We are sorry to . . . Line 4      We understand that. . . Line 6      We agree that. . . Line 7      To allow the transaction to proceed . . . Line 8      ... conditional on receiving your reply before . . Line 12    As the market price is in decline . . .