Counter-offer

Basic Knowledge Concerned
Letter-writing Guide
Other Commonly Used Expressions and Sentences
Sample Letters
Practical Training
Part One
Part Two
Part Three
Part Four
Part Five
Contents

Part One
In international trade, when the offeree accepts the terms and conditions stated in the offer, the transaction is concluded.
However, in most cases, the offeree would reject the terms and conditions or state his own terms and conditions by return. The rejection or partial rejection of the offeree to the offer is called counter-offer.
A counter-offer is virtually a counter proposal initiated by the original offeree.
In a counter-offer, the buyer may show disagreement to the price, or packing, or shipment and state his own terms instead. Once the counter-offer is made, the original offer is no longer valid, and the offeree now becomes the offeror as the counter-offer becomes the new offer.
1. The Significance and Effect of Counter-offers

Part One
Counter-offer constitutes the main part of business negotiations.
During the negotiation, many issues (such as quality, quantity and packing of the goods, price, shipment, insurance, payment terms, commodity inspection, disputes and settlement of disputes, force majeure, and arbitration, etc.) will be talked about by the sellers and the buyers.
So counter-offers are usually time consuming and may go many rounds before business is concluded or dropped.
1. The Significance and Effect of Counter-offers

Part One
A satisfactory counter-offer generally includes the following:
(1) Thanking the offeror for his offer and mentioning briefly the contents of
the offer
(2) Expressing regret at inability to accept the offer and giving reasons for
non-acceptance
(3) Making an appropriate counter-offer
(4) Hoping the counter-offer will be accepted and there may be an
opportunity to do business together
2. Main Contents of a Counter-offer

Part Two

Part Two

Part Two

Part Two

Part Two

Part Two

Part Two

Part Three
Expressions (1)
1. (make a) counter-offer 还盘
2. (price) on the high/low side (价格)偏高/低
3. current price, ruling price, prevailing price, the present price, the going price
现行价格
4. long-standing business relations 长期业务关系
5. out of line with the market 与市场不一致
in line with the market 与市场一致
6. (price) is rising/advancing/going up (价格)在持续上扬
(price) is falling/dropping/going down (价格)在持续下降
7. entertain business at... price 考虑按……价格成交
8. make a counter-offer as follows 还盘如下
9. give/allow/make/grant a discount 给折扣
10. leave...with only a small profit ……获利低微

Part Three
Expressions (2)
11. at a price 5% lower than... 价格比……低5%
12. meet sb. half way 各让一半,折中处理
13. previous quotation 先前的报价
14. international/current market is weak 国际/目前市场疲弱
rock-bottom price 底价；lowest price 最低价； competitive price 竞争性价
格；reasonable price 合理的价格; fair price 公平的价格; the best price 最佳
价格; favorable price 优惠价
16. make any further reduction 再次降价
17. (price) fixed at a reasonable level 定价合理
18. (products) moderately/too highly priced (产品)定价适中/过高
19. (the price) has advanced 10%/considerably (价格)已上涨10%/明显上涨;
a jump/slump (in price) (价格)飞涨/暴跌
20. be (not) in a position to... 能够/不能够做……

Part Three
Typical Sentences (1)
1. As this is an order of substantial size, we cannot safely undertake to complete
its manufacture in a month.
2. Unfortunately we cannot accept your offer. The prices you quoted are much
higher than those of other manufacturers.
3. We do not see any advantage in your quotation, and would like to know
whether you have any better price to offer.
4. Our counter-offer is well founded and workable. We can also offer a 10%
discount for orders over 10000 pieces.
5. Owing to a shortage of stock, we regret that we are unable to accept your
repeat order.
6. Owing to heavy bookings, we cannot accept fresh orders at present.
7. We have cut the price to the limit. We regret, therefore, being unable to comply
with your request for any further reduction.

Part Three
Typical Sentences (2)
8. We are sorry that the difference/gap between our prices and your counter-offer
is too wide. The best we can do is 5% off.
9. Although we are anxious to open up business with you, we very much regret
that we cannot reduce our price to the level you indicated.
10. We believe that the price we quoted is quite realistic. We regret that your
counter-offer is unacceptable to us.
11. The price we quoted is quite reasonable. It has been accepted by other buyers
at your end.
12. You must reduce your price by 2%, otherwise business is impossible.
13. I’m afraid there is no much room for further reduction.
14. May we suggest that you should make some allowance on your quoted prices
that would help to introduce your goods to this market?

Part Three
Typical Sentences (3)
15. I regret that your terms are unsatisfactory and unless you can amend those
terms, we will have to place our order elsewhere.
16. We would suggest that you make some allowance, say 10%, on your quoted
prices so as to enable us to introduce your products to our customers.
17. It is in view of our long-standing business relations that we make you such a
counter-offer.
18. Your price is reasonable, but the listed payment conditions are not customary
in our trade.
19. As a token of friendship, we accept as an exception your counter-offer for
5000 pairs of leather shoes at US$26 per pair.
20. Our price has been narrowly calculated and it is impossible to make any
further reduction.

Part Four
October 20,2010
Dear Sirs,
Thank you for your letter of October 10. As regards your counter-offer, we regret we are unable to accept it because our current price has already been proved workable by many orders received from our buyers.
However, in order to meet you on this occasion, we are prepared to grant you a special discount of 2% on condition that the quantity of other order is not less than 1000 pieces.
We hope this will enable you to enjoy the benefits of our special discount.
Yours sincerely
***
www.themegallery.com

Part Four
Dear Sirs,
We wish to thank you for your letter of the June 10, offering us 3000 kilos of Walnutmeat at $50 per kilogram.
We regret to say that we find your price rather high and we believe we’ll have a hard time convincing our clients at your price.
Besides, there’s keen competition from suppliers in South Korea and Thailand. You can’t very well ignore that. Should you be ready to reduce your price by 5%,wei might come to business.
Considering the long-standing business and relationship between us, we make you such a counter-offer. As the market is declining, we Hope you will consider our counter-offer most favorable and fax us as soon as possible.
Yours faithfully,
****
www.themegallery.com

Part Four
Sample 1
Buyer’s Counter-offer
Dear Sirs,
We acknowledge with thanks receipt of your letter of May 15, 2007 for 300 sets of Butterfly Brand sewing machines at US$60 per set CIF Lagos.
In reply, we regret to state that your price has been found too high to be acceptable.
As you know, the price of sewing machines has gone down since last year. Some countries are actually lowering their prices. Under such circumstances, it is impossible for us to accept your price, as the goods of similar quality are easily obtainable at a lower figure1. If you can make a reduction in your price, say 8%2, there is a possibility of getting business done3.
We expect your early reply.
Sincerely yours,

Part Four
Dear Sirs,
We have received your letter of June 1, 2007 that the price offered by us for Butterfly Brand sewing machine is found to be on the high side. We regret to say that your counter-offer is not in keeping with the current market1 and it is too low to be acceptable. We have received a lot of inquiries from buyers in other places and we believe our price is fixed at a reasonable level. To be frank with you2, if it was not for our good relations, we wouldn’t consider making you a firm offer at this price. I’m afraid there is not much room for further price reduction.
If later on3 you see any chance to do better, please let us know. Meanwhile, please keep us posted of4 developments at your end. We will make sure that all your inquiries will receive our prompt attention.
Truly yours,
A Reply to the Letter of Sample 1
Sample 2

Part Four
August 24, 2007
Dear Sirs,
Thank you for your letter of August 20th offering us 5000 kilos of Walnutmeat at US$5 per kilogram.
We are interested in your product but regret to say that we find your price rather high. We believe that we would have a hard time convincing our clients at your price. There is also keen competition from suppliers in South Korea and Thailand. That cannot be ignored. Should you be ready to reduce your price by 5%, we might come to a business agreement.
We are making this counter-offer based on the long-standing business relationship between us. As the market is declining, we hope you will consider our counter-offer most favorably and cable us as soon as possible.
Yours faithfully,
Sample 3
Buyer’s Counter-offer

Part Four
Dear Sirs,
We note from your letter of August 24, 2007 that you are interested in our Walnutmeat but find our quotation of August 20, 2007 too high to conclude business.
We wish to inform you that our price has been accepted by other buyers in your city, where substantial business（实质性业务） has been done, and that inquiries have been kept flooding in（继续涌入，形容量大） over the past few months.
Such being the case（在这种情况下）, we cannot see our way clear to cut our price（我们看不出降低价格的明确方法）. In fact, it is in view of （鉴于……，以……观点）our long-standing business relations that we offered you such a favorable price.
We hope you will reconsider it and cable us your order for our confirmation at your earliest convenience.
We await your favorable reply.
Sincerely yours,
Sample 4
A Reply to the Letter of Sample 3

Part Five
2. Read the following letters and choose the best one from the given answers
for the missing prepositions.
to; at; of; with; in; on; for; from; onto; into; by
Letter 1
Dear Sirs,
Re: Chinaware
We have noted your fax (1) October 10, 2007 regarding the captioned goods and regret that our offer has not been accepted.
We have to point out that your counter-offer is obviously (2) the low side. The price we offered is entirely (3) line (4) the market level and has been accepted by many other customers.
However, we now agree (5) your interest to renew our offer till the end of this month and recommend that you fax us your confirmation without delay.
Yours faithfully,
____
______
_______
_______
_______

Part Five
2. Read the following letters and choose the best one from the given answers
for the missing prepositions.
to; at; of; with; in; on; for; from; onto; into; by
Letter 1
Dear Sirs,
Re: Chinaware
We have noted your fax (1) October 10, 2007 regarding the captioned goods and regret that our offer has not been accepted.
We have to point out that your counter-offer is obviously (2) the low side. The price we offered is entirely (3) line (4) the market level and has been accepted by many other customers.
However, we now agree (5) your interest to renew our offer till the end of this month and recommend that you fax us your confirmation without delay.
Yours faithfully,
of
______
on
______
in
_______
in
_______
with
_______

Part Five
to; at; of; with; in; on; for; from; onto; into; by
Letter 2
Dear Sirs,
We are in possession of your letter dated July 5, 2007 offering us Jinling Brand automatic washing machine at US$120 per set CIF Guangzhou inclusive(1) our 5% commission.
While appreciating the quality of your lines, we made a careful study of your offer. We find that your prices are too high to be acceptable. In fact, some suppliers have been actually lowering their prices to push sales in the past three months. In order to make your product more competitive (2) our market, we suggest that you reduce prices (3) 10%. If you agree to our counter-suggestion, regular orders(4) large numbers will be placed. Otherwise, we would have to place our order elsewhere.
Please let us have your e-mail confirmation (5) your earliest convenience.
Yours sincerely,
______
________
_______
_______
______

Part Five
to; at; of; with; in; on; for; from; onto; into; by
Letter 2
Dear Sirs,
We are in possession of your letter dated July 5, 2007 offering us Jinling Brand automatic washing machine at US$120 per set CIF Guangzhou inclusive(1) our 5% commission.
While appreciating the quality of your lines, we made a careful study of your offer. We find that your prices are too high to be acceptable. In fact, some suppliers have been actually lowering their prices to push sales in the past three months. In order to make your product more competitive (2) our market, we suggest that you reduce prices (3) 10%. If you agree to our counter-suggestion, regular orders(4) large numbers will be placed. Otherwise, we would have to place our order elsewhere.
Please let us have your e-mail confirmation (5) your earliest convenience.
Yours sincerely,
of
______
in
________
by
_______
at
_______
for
______

Part Five
2. Supply the missing words in the blanks of the following letter. The first
letters are given.
Dear Sir or Madam:
Thank you for your (1)o of February 20, 2007 and the Teddy Bear sample you kindly sent us.
In reply, we (2)r to say that we cannot accept your offer at your (3)p . You may be aware that some products of Indian origin have been (4)s here at a
(5)l about 10% lower than yours. We do think that the quality of your products is better, but the (6)d in price should not be so big. Meanwhile, the current market is also weak. To conclude this (7)t  we make a (8)c as follows: Teddy Bears as the (9)s sent to us on February 20, 2007, US$8 per piece CIF London, other terms and conditions as per your letter of February 20, 2007.
We await your early (10)a .
Yours faithfully,
________
________
_________
________
old
________
___________
__________
______________
______________
______________

Part Five
2. Supply the missing words in the blanks of the following letter. The first
letters are given.
Dear Sir or Madam:
Thank you for your (1)o of February 20, 2007 and the Teddy Bear sample you kindly sent us.
In reply, we (2)r to say that we cannot accept your offer at your (3)p . You may be aware that some products of Indian origin have been (4)s here at a
(5)l about 10% lower than yours. We do think that the quality of your products is better, but the (6)d in price should not be so big. Meanwhile, the current market is also weak. To conclude this (7)t  we make a (8)c as follows: Teddy Bears as the (9)s sent to us on February 20, 2007, US$8 per piece CIF London, other terms and conditions as per your letter of February 20, 2007.
We await your early (10)a .
Yours faithfully,
evel
________
ffer
________
egret
_________
rice
________
old
________
ifference
___________
ample
__________
cceptance
______________
ransaction
______________
ounter-offer
______________

www.themegallery.com
Part Five
2. Letter Replying
Dear Sir or Madam:
Subject: Soybeans 2006 Crop
We are in receipt of your letter of April 15, 2007 offering us 5000 metric tons of the captioned goods at RMB￥1600 per metric ton on the usual terms.
In reply, we regret to inform you that our buyers in Europe find your price much too high. Information indicates that some parcels of Turkish origin have been sold here at a level about 10% lower than yours.
We do not deny that the quality of Chinese Soybeans is slightly better, but the difference in price should, in no case, be as high as 10%.
To get the business done, we submit this counter-offer as follows, subject to your reply being received here by April 26, our time: 5000 metric tons Soybeans, 2006 crop at RMB￥1300 per metric ton, CIFC2% Copenhagen, other terms as per your letter dated April 15, 2007.
As the market is declining, we recommend your immediate acceptance.
Yours faithfully,
Read the following letter and then compose a letter in reply to it.