Sample Letter of Order

Men’s Clothes Dealers Ltd.

142 South Road

Sheffield S20 4 Hl

England

March 21, 2002

Dear Sirs,

Our Order for Silk Shirts

In response to your letter of March 17, we thank you for sending us your catalogues of men’s silk shirts. We are sure there will be a great demand for them in Ukraine.

We are enclosing our Order No. 142, and would ask you to return its duplicate to us, duly signed, as an acknowledgement.

Yours faithfully,

V. Smurov

Vladimir Smurov

Export-Import Manager

Sample Letter of Acknowledgement

Visteria Ltd.

P.O. Box 82

Kiev 253206

Ukraine

March 28, 1999

Ref: Order No. 142 of March 21, 1999

Dear Mr Smurov,

Thank you for your letter of March 21, 1999. We are pleased to acknowledge your order for 400 men’s silk shirts and enclose the copy of it, duly signed, as requested.

Delivery will be made immediately on opening a letter of credit with our bank for the amount of $4212.

We hope our shirts will be in great demand in Ukraine and you will be able to place large orders with us in the future.

Yours sincerely,

Alfred Smithers

Alfred Smithers

Sales Manager

Lesson 11

The wholesaler

Part I

The wholesaler is the link between the producer and the retailer. As one of his important functions, he buys goods in large quantities and sells them in small quantities. He obtains goods cheaply because of his bulk purchases.

The wholesaler stocks goods to meet changes in demand. He helps retailers by offering them credit while he himself pays his suppliers promptly. The wholesaler often grades, packs and labels the goods.

There are four types of wholesalers. One type buys the goods and stores them. He does not process them. The second type owns the goods, stores them and prepares them for sale. Then there is the wholesaler who organizes the distribution of the goods but does not handle them himself. Some motor car distributors function in this manner. Lastly there are the middlemen like brokers and agents who work for a commission. They buy or sell for other wholesalers.

Wholesalers and retailers perform a useful public service. They help manufacturers to sell their goods. This enables them to concentrate on the work of producing quality goods.

Wholesalers are a help to retailers as the letter do not often have much money to hold large stocks. Retailers are also spared the cost of maintaining warehouses.

A wholesaler usually has a number of retailers. In this way he ensures that his stocks are sold quickly. To encourage sales he may advertise his goods and offer quantity discounts to his retailers. Because of his experience, know-how and means, a wholesaler is often assisted by a bank. He may be given overdraft facilities and loans to build his business.