adjustment
Letter
Writing Letters Refusing Adjustments
When The Buyer Is At Fault
1. Support the
Reader’s Point of View in Your Buffer Paragraph
Since the
customer probably thinks he or she is right, try to make him or her accept the
logical solution. Be sure the customer realizes that you understand the problem
and that you will be fair.
2. Assure the
Customer That the Request Is Appreciated and Has Received Individual
Consideration.
The requested
adjustment is important to the reader in your letter; show that the reader’s
point of view is also important to your organization.
3. Present the
Explanation before the Decision
Stress what can
be done and emphasize your purpose to be fair to all customers. Don’t blame
and don’t argue. Avoid unfriendly, negative expressions, such as your
complaint, your error, you misinterpreted, you neglected, your claim, you are
mistaken, our records show, and your ignorance. With a truthful and tactful
presentation, lead the customer to accept your solution as the only reasonable
one.
4. Be Courteous
Even When Answering an Angry or a Distorted Claim
If you answer
sarcastically, you may lose both your self-respect and your customer.
Completely ignore any insults in the letter you have received; concentrate on
writing an answer that is friendly, rational, and professional. Usually it
costs less to keep the customer you have than to find a new one.
5. Try to
Leave the Reader in a Pleasant Frame of Mind
A friendly but concise closing is even
more important when the adjustment is not granted.
Use the effective buffer paragraph
technique when writing bad-news letters:
Step 1: Buffer
Step 2: Explanation
Step 3: Your no (stated or
implied)
Step 4: a friendly close.
You may review
the summary of the indirect approach to help you write effective bad-news
messages. The writer of the following letter realizes that Mr. Hassan must be
convinced of the organization’s position and be kept as a customer (after all,
he did buy an expensive item). Here’s the answer to a request for repair or
replacement for his automatic garage door opener.
Dear Mr. Hassan,
You are right to
expect high-quality merchandise from The Automatic Door Company. We try to give
you the best for your money and to stand behind our products when they fail as
a result of defects in material and workmanship, as our warranty states.
We appreciate your sending the door
opener to us for analysis. It appears that the opener has got wet. Excess of
moisture over a period of time causes this defect.
Our service manager estimates that cleaning
and repairing your door opener would cost Rs. 2500.
Since your door opener is several years
old, you may want to consider buying a new one. We have made many improvements
to our door openers since yours was manufactured, including a sealed circuit
board that would prevent the possibility of damage from moisture. A new door
opener, which costs Rs. 3500.00 postpaid, should give you even longer service
than your old one did.
Please let us know whether you want us
to repair or replace your door opener.
Yours sincerely,
Look at the
following example.
Dear Mr. Shibly,
We are sorry that you are not completely
satisfied with your Atlas Vacuum Cleaner. You are entirely justified in
expecting more than four years of reliable use from an Atlas Appliance, and we
are always eager to service any product that does not for some reason live up
to standard.
We appreciate your giving us the
opportunity to examine the damaged vacuum cleaner. According to our service
department, the filter had never been replaced although the owner’s manual
advises replacement every few months. As a result, the motor itself gradually
became clogged with dust and dirt.
The cost of repairing and cleaning the
vacuum is estimated as Rs. 500. If you would like to have it repaired, please
let us know. With regular cleaning and replacement of the filter and exhaust
bag, you should receive several more years of service from your Atlas
appliance.
Yours truly,
When the third Party is at Fault
You have three
options:
(1)
honor
the customer’s claim with the standard good-news letter and no additional explanation
(2)
honour the claim but explain that you were not
really at fault; or
(3)
take no action on the claim and suggest that
your customer file against the firm that caused the defect or damage. Common
business sense tells you, however, that the third option is almost always a bad
choice. (The exception is when you’re trying to dissociate yourself from any
legal responsibility for the damaged merchandise, especially if it has caused a
personal injury, in which case you would send a bad-news message.)
This letter will be written when neither
the company nor the customer is entirely at fault. It must express an attitude
of pleasant cooperation. It should be based on facts and offer a reason for
refusing the requested adjustment. It should immediately make a counteroffer
that meets the customer halfway. Of course, it should leave the decision to
accept the adjustment to the customer and suggest a course of action.
Of the other two options, the first is more
attractive. By honouring the claim without explanation, you are maintaining
your reputation for fair dealing at no cost to yourself; the carrier or
manufacturer that caused the damage in the first place will refund you.
Remember that businessman wants to correct problems to keep the customer’s goodwill.
Follow these steps when writing a letter compromising on an adjustment:
Step 1: Buffer
Step 2: Explanation
Step 3: No
(stated of implied)
Step 4: Counterproposal
or compromise
Step 5: Friendly
close.
Credit Letters
Writing Credit
Letters
A Promise of future payment in cash OR KIND GIVEN IN
EXCHANGE for goods or service is called credit. It is the instrument which
enables manufacturers, producers, retailers and consumers to obtain goods at a
time when they can be used or sold even if ready cash is not available.
The major reason customers wish to establish credit is
convenience. Customers can:
•
Buy now and pay later
•
Avoid carrying cash with them or writing
cheques.
•
Exchange and buy goods on approval more easily.
While writing credit letters:
•
Be careful as they are permanent record and
protect in case of legal difficulties.
•
Credit letter must be courteous, tactful and
dignified.
Letters concerning credit fall into these basic categories:
- Letters requesting credit.
- Letters extending credit.
- Letters refusing credit.
Direct Statement of the Request
- Phrase the opening to reflect the assumption that the reader will respond favorably to your request.
- Phrase the opening so clearly and simply that the main idea cannot be misunderstood.
- Write in a polite, undemanding, personal tone.
- Preface compels requests with a sentence or two of explanation, possibly a statement of the problem that the response will solve.
Justification, Explanation, and Details
- Itemize parts of a compels request in a numbered series
- List specific questions.
a. Don’t ask questions that you could
answer through your own effects.
b. Arrange questions logically
c. Number questions.
e. Word questions to avoid clues about the
answer you prefer so and not to bias the reader’s answers.
Courteous Close with Request for specific action
Letter Requesting Credit
Dear Mr. Ahmad,
We are a
newly established appliance repair business interested in acquiring a business
credit card. Small shop owners in the area have informed us that business
credit cards are a convenient, organized, and efficient way of handling small
day-to-day expenses, such as office supplies or lunches.
Please
send us more information concerning the terms of your business credit cards.
Particularly, we are interested in interest rates, annual fees, the process of
obtaining a card, remittance requirements, and security measures available. Any additional information would also be
appreciated.
Thank you
for your time. We look forward to
hearing from you.
Yours truly,
Study these examples
too.
Dear Sir,
We are a
newly established appliance repair business and desire to open a credit account
with your company.
For reference as
to our ability to meet our financial obligations, we refer you to our banker
whose address is given on the back of this letter.
If there is any
other information, you require in order to extend us the privilege of a credit
account with you, we shall be glad to have so inform us.
Yours truly,
Letters Asking For
Credit Information
Credit Information is obtained from different sources;
banks, commercial agencies, Financial statements, etc.
Study the following letter written on direct plan for
seeking credit information.
Ladies and Gentlemen:
Subject: Credit Inquiry
The following applicant has given your name as a credit
reference:
Mr. Ahmad
Lahore Towers,
Lahore.
We would appreciate your giving us the confidential
information requested below:
1. Date the account was opened.
2. Terms of the account
3. Credit limit
4. Current balance
5. Past due amount
6. Date of last activity
7. Payment history
8. Remarks
A postpaid return envelope is enclosed for your convenience.
Your help will certainly be appreciated, and all information will be kept
confidential. .
Sincerely
Evaluating the Credit
Information
Traditionally, the following three Cs of credit form the
basis for extending credit privileges:
1. Character: It refers to a sense for honesty and ethical
dealings with others. It means meeting obligations and is demonstrated by willingness
to pay.
2. Capacity: It is the ability to pay. It is evidenced by
income or potential income.
3. Capital: It refers to tangible assets in relation to
debts. Capital also determines the ability to pay if the debtor does not pay
willingly.
Extending Credit
While extending the credits, follow the guidelines.
1. Welcome the new charge customer, and express the wish for
a pleasant association.
2. Outline special privileges that are available.
3. Explain the terms of payment.
4. Encourage the customer to use the new charge, account,
and enclose promotional material.
5. Build goodwill by indicating your eagerness to serve the
new customer well.
Letter Extending Credit
Dear Mr. Hassan,
We take
pleasure in opening a charge account at Bright’s, with your name. I feel sure
that this will be the start of a long and mutually pleasant association.
As a
customer you will enjoy many privileges at Bright’s. For an instance, our
customers receive advance notices of special sales. They may also use their
cards at our terrace restaurants and books rental department.
By the
first of each month you will receive an itemized statement of your purchases
made through the 25th day of preceding month. Purchases made after the 20th,
appear on the following month bill. Payments are due by the 10th, and a monthly
charge of 1.5% will be made on the balance remaining at that time.
We hope you will make regular use of charge
accounts.
Sincerely
yours,
Gentlemen,
We are glad
to have your order of December 20th and of the opportunity to add your name to
our list of satisfied customers. We find, however, that we are without
sufficient information to permit consigning these goods to you on credit. This
does not mean that we question your ability to meet your obligation, but of
course we must have assurance that our terms will be met. If you wish, we can
send your order on C.O.D. basis or, if you will send us the names of those with
whom you have done business in the past, and fill out the enclosed statement,
we can in all probability, ship your order at once on credit.
Yours very truly,
Refusing Credit
Every credit-refusal letter has two objectives:
1. To say no tactfully
2. To keep the goodwill of the customer
There are various reasons for refusing credit. The main ones
are:
1. Lack of established credit.
2. Overextension of credit, which may result in an inability
to pay bills on time.
3. Unwillingness to pay that which is owed according to
credit reporting agencies.
BUFFER
•
Eliminate apologies and negative-sounding words.
•
Phrase the buffer to avoid misleading the
reader.
•
Limit the length of the buffer.
•
Express appreciation for the credit request.
•
Introduce resale information.
•
Make a transition from the favorable to the
unfavorable message.
•
Make transition from the general to the
specific.
•
Avoid a condescending lecture about how credit
is earned.
•
Avoid negative words, such as must decline.
•
Suggest positive alternatives, such as cash and
layaway purchases.
Dear Mr. Hasan,
We
should very much like to send you the goods on your order No. 543 of August 27,
but to certain unavoidable reasons we are not in a position to a credit account
at this time of the year.
But
you really must have your goods. They are on the top of our packing list. May
we consign them to you on cash or COD basis?
We look forward to hearing from
you.
Yours very truly,
Here the writer explains the cause for not extending credit.
Dear Mr. Ahsan,
Thank
you very much for your order of April 7. We are glad to know that you are
interested in our products because you will find them a source of profit
building.
Just
now however, we are without sufficient information to permit us to ship this
order on credit term. We feel sure that we can make shipment in this way after
you have become more firmly established in business.
As
in the case of all those who apply for credit, we have made a careful
investigation of your resources and credit obligations. Since you have a number
of Loan commitments, may we suggest that you continue to allow us to send you
on a cash basis until such time as you are able to reduce your personal
obligations?
You may be sure that we will welcome the
opportunity of considering your application again when circumstances are more favorable
towards your receiving additional credit. Please do let us know if we can be of
help in any other way.
Yours
truly,
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