Introduction to Business Letters

MEANING AND NATURE OF BUSINESS LETTERS

Business letters or correspondence reflects the mental side of commerce. They are
the essential means of communication industry and commerce and are the fast moving
messengers or ambassadors. They cost very little to get them duly prepared and mailed.
They get no salary and demand no incentive bonus. With the tremendous growth and
improvements in the means of transport and communication and the opening up of new
markets, the importance of business correspondence has greatly increased. The modern
businessman cannot take shelter under the motto “Silence is Golden”. His motto should be
‘communicate or Flounder”.

Writing successful business letters is both an art and a craft. The reputation of a
business depends in a large measure upon the quality of the letters which are sent out by it
and the way in which it deals with inward correspondence. Business correspondence may
be termed as the respiratory system of the unit concerned. It is as vital to the success and
survival of business as respiration is to human existence.
 Every business letter may be regarded as a sales letter or an exercise in selling.
The business letters represent a business house as salesmen do.
The business letter may be defined as a message that attempts to influence its
reader to take some active action or attitude as desired by the writer of the letter or the
business house sending it out.
FUNCTIONS OF BUSINESS LETTERS
Business letters are one of the means of communication in business. They open up
and build business relations both at national and international levels. They dispense with
the need for personal interviews in business transactions. They help to avoid the waste of
time and risk involved in personal interviews. Whereas the businessman may make hasty
decisions and commit mistakes in personal interviews and conclusion of deals based on
them, no such risks are involved in written correspondences which are well thought our
ones. More polite language can be used in correspondence and guard oneself against all
unpleasantness involved in personal interviews and negotiations. Further, advance
arguments can be incorporated in correspondence. Above all, business letters provide
written evidence of all communication between the business house and its customers and
others.
They open up and maintain business relations: initiate and conclude deals. Their
functions go beyond the essentials of presenting information and help to make friends,
build goodwill and add to the company’s prestige.
KINDS OF BUSINESS LETTERS
Business letters may be classified in many ways. One such classification is as
follows: (1) Letters of Inquiry (2) Letters carrying quotations or offers, (3) Letters placing
orders, (4) Confirmation, Execution, Refusal or Cancellation of orders. (5) Collection
Letters (6) Claims Complaints and Adjustment letters. (7) Circular Letters (8) Sales Letters
(9) Follow-up Letters, (10) Banking Letters, (11) Insurance Letters (12) Agency Letters
(13) Letters between importer and exporter. (14) Letters with clearing and forwarding
agents. (15) Secretarial Correspondence, (16) Official Correspondence and Public
Relations (17) Memorandums and (18) Correspondence with Government. You will be
learning the techniques of writing these letters and their contents in the lessons that follow
ESSENTIAL OF BUSINESS LETTERS
Writing a Business letter is entirely a different task from writing a letter to a friend
or a relative. There is a vast difference in the purpose between these two types of letters.
Social letter and personal letters may be written with no specific purpose but just to convey
feelings and emotions. But the business letters are sent out with a specific purpose.
Behind every business letter there will be a reason and a purpose to be achieved. A
business letter is used only as a means to achieve an end. Unless the end goal is secured,
writing business letters becomes a waste. To avoid or minimize the waste in this type of
business communication, the business letters should satisfy the following essentials:
(1) Pertinency
(2) Courtesy
(3) Brevity
(4) Clarity
Pertinency: Pertienency means that the letter should be fit or relevant to secure the
purpose of which it has been written. It must be to the point. To ensure this essential
requirement, a thorough knowledge of the subject-matter about which the letter is to be
written, as well as good command over the language is a must. All unnecessary and round-
aboutexpressions and statement s should be avoided. So also, all thoughtless and
stereotyped writings should be shunned. This is easily achieved when one follows the
motto ‘Think before you write’. The letter written should contain not only pertinent
information but also should be complete in all respects. It must not leave out any relevant
or essential information about the subject-matter of the letter. Pertinency and
completeness should go hand-in-hand.
Courtesy: The tone of the letter must be such that the receiver is not offended on reading
it. This is to be ensured by keeping the tone of the letter courteous or polite. For example,
a wise correspondent will always call the mistake of a third party as ‘omission’ and not as
‘error’; he will not use the word ‘wrongly sent’ but ‘inadvertently sent’. He will not
declare a statement to be wrong but will simply state that ‘it does not correspond to the
facts’. Should any customer make a foolish request he does not tell him so, but merely
‘regret that he connate fulfill his request as the company’s policy does not permit it’.

One most important technique by which courtesy could be injected in a business

letter is adopting the ‘you attitude’. That is, the letter should have a preponderance of
You’s and a minimum of We’s. This is based on the psychological principle that every
person is interested in himself and thus responds well to a letter written from his point of
view. Being courteous in tone does not include using superfluous and empty phrases. The
tone must be natural and fluent and not affected. These apply not do what we say but how
we say it. The tone is particularly important because we cannot convey our feelings by a
smile or a gesture as we could in speaking; only the words, in black and white, convey our
tone. The customer who receives a discourteous letter may conclude that this represents
the tone of the company. The tone will be satisfactory when it meets the following two
test:
i) Have we expressed our ideas so that the reader will feel that we are trying to
be helpful, courteous and humane?
ii) Have we expressed them so that they reflect good public relations for
the company?

Brevity: Brevity means being concise. A business letter must necessarily be brief or
concise. Brevity is not only the soul of wit, it is also the soul of a business letter. A short
and concise way of expression is essential. However, brevity should not be at the cost of
clarity and courtesy. The beat writers use short words only. This means, long and
complicated sentences should be avoided. The use of long and complicated sentences and
language will only confuse the reader. This is to be achieved through a careful scrutiny of
the language used and the scrutiny of the textual contents of the letter. One can be brief
and effective in writing business letters by following the ‘4-S Formula’ viz. Shortness,
Simplicity, Strength and Sincerity.
For shortness, do not repeat phrases from the letter you are answering. Avoid
needless words and information. Do not qualify your statements with irrelevant if’s.
Beware of roundabout prepositional phrases such as ‘with regard to’ and ‘in reference to’,
Watch out for nouns and adjectives that derive from verbs, use these words in their verb
forms. For simplicity, use short words, short sentences and short paragraphs. Know your
subject well do that you can state it naturally and confidently. For imparting strength, use
specific and concrete words. Give answers straight away; then explain, if necessary.
Avoid expressions like ‘it appears’; ‘we wish to state’ etc. For sincerity, be humane and
not an office machine. Admit mistakes openly and sincerely.
Brevity should not be confused with the length of the letter. The length of the letter
is not to be measures by lines or pages. A two-page letter may seem short, while a one
page letter may seem too long. There are only two tests for telling whether a letter is too
long or not. Ask yourself these questions. (1) Does the letter say more words than need be
said? (2) Does the letter take too many words for what it must say? Further, remember
that brevity is not always a virtue. If a letter is so brief that it requires further
correspondence to elucidate it, time and energy are lost rather than gained. Where there is
much to say, a long letter is justified, provided all repetitions and wordy sentences are
ruthlessly avoided.
Clarity: Letters are written to convey to the receiver the intention of the writer. They must
be understood and not misunderstood. To avoid misunderstanding and costly errors, a
business letter should convey the complete and exact meaning which was intended.
Effective conveyance of the message in clear terms is as important as brevity. This is
easily ensured by voiding use of unfamiliar words as well as the ridiculous abbreviations
and expressions which tend to distract the language. (More about these you will learn
later). Ask yourself the following questions every time you write letter. Will the reader
understand quickly and easily what I am trying to tell him? Will the reader have any
questions unanswered after he has read the letter?
Summary
Business letters reflect the mental side of commerce. The business letter may be
defined as message that attempts to influence its reader to make some active action or
attitude as desired by the writer of the letter. Business letters have several functions to
perform. They dispense with the need for personal interviews and thereby save time and
risk involved. They send for personal interviews and thereby save time and risk involved.
They open up and build relational, build goodwill and add to the prestige of the company.
There are several kinds of letters. All these letters should satisfy the
essentials are pertinency, courtesy, brevity and clarity.

Self-examination Questions:

1. Define a ‘Business Letter’ and explain the nature of business letters.

2. Describe the objectives and functions of business letters.
3. Enumerate the kinds of business letters.
4. Explain briefly the essentials of an effective business letter.
5. What is courtesy? What is its importance in business letters?
6. Why should business letters be brief?
7. How would you ensure that your business letter is complete?
8. What is the importance of correctness of language and correctness of information
in business letters?
9. What are the effects of an incomplete letter?
10. What does the “You’ attitude have to do with the tone of the letter? How would you
exploit this strategy
 Lesson 2.2 Structure of a Business Letter
Learning Objectives
After reading this lesson you should be able to understand:
 the structure or layout of a business letter in general
 the techniques of heading the letter
 the technique of putting the inside address
 the manner of commencing the letter or addressing the receiver
 the arrangement of a body of the letter
 the manner of closing the letter
 the different types of signatures on the letters

A business letter generally consists of the following distinct parts. Viz:

1. Heading
2. Date
3. Inside Address
4. salutation
5. subject matter
6. Body of the letter
7. Complimentary Close
8. Signature
9. Identity marks of the dictator and stenographer or their initials
10. Enclosures
11. Carbon copy notation
12. Mailing notation
13. Postscripts.

Heading: The heading is to indicate the name and address of the firm or company sending
the letter. As far as possible, it must be simple but attractive. In addition to the name and
address, telephone number telex, fax telegraphic address, and any reference number to be
quoted in case of reply may also be given. Care must be taken to see that the heading is
not crowded with so many details and is given duly centered on top of the letter paper. A
margin of at least three centimeters should be left on both sides.
Date: A business letter should be properly dated at the upper right hand section of the
letter. There must be at least three line spaces between the date and the first paragraph of
the letter. While writing the date, the abbreviated from viz., 16.10.95 should be avoided.
The month, day and year should be put only in the order style stated here: October 10,
1995. The day of the month must always be separated from the year by a comma. There
is no need for putting th and rd after day numeral.
Inside Address: The inside address being an important information on the copy of the
letter for future reference it must be complete in all respects. These should cover the
name, title, place of business of the person, firm or company and the full address. A full
and complete address will ensure proper delivery and also enable another person to address
will ensure proper delivery and also enable another person to address the envelope.
Suitable prefixes should also be used in the inside address. Words such as ‘Mr.’,
‘Thiru’, ‘Shri’ should be used before the name of the individual to whom the letter is
meant. However, it has become discourteous to address with the above prefixes. Now-a-
days ‘Esq’. (Esquire) is used at the end of the name of an individual to show extreme
courtesy. However, Mr. and Esqr. should not be used together. So also Dr. and Esqr.
should not be used simultaneously. The word ‘Messrs’ should be used in the case of
partnership firms and companies when the names of actual people occur in the title of the
partnership or company. Otherwise, it must not be used. The name of the firm or
company should simply be written prefixed by the article ‘The’. If the letter is addressed
to a lady, the prefix ‘Messrs’. and ‘Mrs.). But today, irrespective of the marital status of a
lady, which should not be the concern of any body, a uniform prefix ‘Ms.’ is used.
When the letter is to be brought to the attention of an individual within the organization,
the inside address should end thus ‘Attention: Mr. Ashok kumar Jain. Managing Director’.

Salutation: The salutation should be consistent with the first line of the inside address: if
that is plural (a company or a partnership firm), the salutation also should be plural, viz.
Dear Sirs, Gentlemen etc. But the use of ‘Dear Sirs’ has become out of fashion now. So,
prefer, ‘Gentlemen’ instead as a salutation while addressing a company or a firm.
However, ‘Dear Sir’ is to be used in addressing individual. Even though the letter is
directed to the attention of an individual. If the first line of the inside address is the
company or firm name, the salutation should be in plural form. ‘Dear Madam’ is the
generally accepted form of salutation for a women either married or single. Salutations
like ‘My Dear Mr. vivek’ or ‘De4ar Mr. vivek’ may be used when there is a personal
acquaintance between the correspondents. After the salutation, a colon and not a comma
should be used.
Subject Matter: After the salutation, the subject-matter of the letter is to be indicated
briefly. It should not be more than two or three lines. The last line should be underlined,
if possible, in red colour. The subject-matter should be typed in the center of the letter
head just below the salutation, leaving two line spaces.
Body of the letter: Depending upon the length, single or double line spacing may be used
in the body of the letter. In single-spaced letter, make a double space after the salutation
and between paragraphs. The body contains the information or the message sought to be
communicated. It should be centered on the page with a left margin of at least two
centimeters and approximately the same for the right-hand margin as well. For each
topic,a separate paragraph should be devoted. The topics should be dealt with in the order
of their significance. Generally, the opening paragraph should refer to the general
background, the previous correspondence and other reference papers or situation., the
middle with the main message and the closing paragraph, may be just a complimentary
close or state the writer’s intentions and expectations of what shall follow, Care should be
taken to ensure that the message sent is correct and complete. The language must be
simple and the tone friendly.
The second and subsequent pages of a letter, if any, should be written up in the
blank sheets only or on specially printed continuation sheets of the same kind of paper as
that used for the letterhead. The name or initials of the person addressed are placed at the
top left-hand margin of the continuation sheet(s). The number of the page should follow
the initials. The date may also be given following the number of the page in the
continuation sheet(s). The whole thing will appear as follows:
“B.V.R – 2 – Jan.15, 1996”
A new paragraph should not be written at the bottom of the sheet unless there is
space for at least three lines. A single line or a few words should not be carried over to the
second page. Quoted matter, for example, a telegram, can be made prominent by indenting
it, both right and left margins and writings in single space.
Complimentary Close: The complimentary close refers to the courteous way of closing a
business letter. This consists of the words of respect or regard used to express the feelings
of the writer towards his correspondent, and should follow the body of the letter on the
next line below. It should be consistent with the salutation and the words should never be
abbreviated. The complimentary closes generally used are: “Yours truly” and ‘Yours
faithfully”. Please note, only the first letter of the first word of the complimentary close is
capitalized.
The complimentary closes such as ‘yours sincerely’ ‘yours very sincerely’, ‘yours
affectionately’ etc., should not be used in business letters. They are meant for private and
personal letters only.
Signature: Without signature, the letter will be reduced to a mere scrap of paper. The
signature reveals the exact identity of the writer and the authority vested in him by the
business firm to sign the letter on its behalf. There are three types of signature viz., Simple
or Designation signature.
‘Per Procuration’ Signatures, and ‘For’ or proxy signatures. These are illustrated below:
Simple or Designation Signatures
(i) S.
GnanaguruViv
ek Sales
Manager
(ii) K. Vikash Chand
Principal
Per procuration Signatures
(i) Per pro. Kaveri Industries Ltd.,
K. Sivanesan
(ii) P.P. Enterprises Ltd.,
S. Kumar
‘For’ or Proxy Signatures
(i) N. Ramesh
chand for the
Manager
(ii) for the Managing Partner
P. Suresh Kumar
The difference between ‘per pro’ and ‘for’ signatures should be noted. In the case
of the former, it precedes the name of the company and in the case of latter, the word ‘for’
us put before the designation of the person. Between the two, ‘for signatures are purely
adhoc in nature.
IdentityMarks: To enable identification of the dictator of the letter and the stenographer
who typed out the letter, their initial may be given at the left margin of the letter at two line
spaces lower than the signature on the letter. Such initials may be thus:
BVR/RM
Enclosures: Enclosures refer to the papers enclosed with the letter or cheque/draft
enclosed. This fact is drawn to the attention of the receiver by adding the word
‘Enclosure’ in the abbreviated form ‘Enc’ or ‘Encl’ in the lower left corner of the letter
mentioning the number of times enclosed. This enables the mailing assistant and the
receiver of the letter to check the contents of the envelope. It is better to arrange the
enclosures in the order in which they are referred to in the letter. ‘The enclosures should
be arranged in the back of the letter. In the case of cheque/draft it is better if it is affixed
on top of the letter.
Carbon Copy Notation: When the copy of the letter has to be sent to any other(s), the
words ‘copy’ to or its abbreviated version ‘c.c’ is typed on the left-hand side of the letter
below the complimentary close and signature and is followed by the name and address of
the party for whom the copy is meant, e.g.,
c.c. to the Branch Manager,
Indian Bank
Pondicherry – 605
001.
or
c.c. The General Manager
Southern Exports
Ltd., First Line Beach,
Madras – 600 001.
c.c. to Mr. N. Ashokkumar
Auditor.
Mailing Notation: When the executive desires the letter to be sent by Registered Post or
by Air or by Courter Service, the notation should be typed accordingly midway between
the date and the first line of the inside address. These instruction must be in capital letters.
Postscripts: When the writer of a letter wants to communicate something after the
completion of the letter, he may do so through postscript or ‘P.S’ after the signature. It is
better to avoid postscripts as it is a bad reflection on the writer’s ability to communicate
effectively through the body of the letter itself. So, they should be avoided. If postscript is
found necessary, it should begin with the abbreviation “P.S.” and as a portion of the letter
it needs the initials or signature of the writer to authenticate the same.
STATIONERY TO BE USED
It is not only the structure of the letter that counts but also the quality of the paper
on which it is typed out. A good quality stationery is to be considered as an investment
and as an image building exercise. The motto must be ‘Fine feathers make fine birds”.
since the impression begins with envelope, the envelope used should also be of good
quality.
Summary
A business letter is not just a jumble of lines put together. It consists of several
parts, viz., heading, date inside address, salutation, subject-matter, body, complimentary
close, signature, identity marks of the dictator and stenographer, notations for enclosures,
carbon copies and mailing instructions. It may also have postscripts. Good quality
stationery for writing the letter and an equally good quality envelope are vital for building
the image of the concern through creating a better impression. ‘Fine feather, make fine
birds’.

Self-examination Questions:

1. State the nature of information and the manner of giving it with reference
to the Heading and Inside Address.
2. Discuss the relationship between salutation and inside address.
3. What do you understand by ‘Complimentary close”? Give examples.
4. Distinguish between ‘Per Pro’ and “for’ Signatures. Give Examples,
5. Why are date and signature on a business letter necessary?
6. How will you drawn the attention of the receiver of the letter to the
enclosures made along with the letter and the copies marked to others?
7. What is postscript? When is it resorted to? How is it made on the letter?
8. Why is it necessary to sue good quality stationery for the letter as well
the envelope in which it is sent?
 LESSON 2.3
ATTITUDE, STYLE AND EXPRESSIONS IN BUSINESS LETTERS

Learning Objectives
After reading this lesson you should be able to say:
 What is the right attitude to be maintained in writing business letters?
 What style is to be maintained?
 What expressions are to be avoided?

PSYCHOLOGICAL TECHNIQUES FOR WRITING BUSINESS LETTERS

A business letter should be written not as the writer would like to write, but as the
reader would like to read. The information must be presented in a manner to arouse the
reader’s interest and curiosity. The business letter must be reader-oriented and not writer-
oriented. Maintaining the ‘You’ attitude, emphasizing the positive, making the letters
smile and making the copy of the letter create a visual experience are some of the
psychological techniques to be employed in this regard.
‘You’ Attitude’. Instead of using the self-centered words ‘we’, ‘our’, and ‘us’ in
writing business letters the use of reader-oriented words ‘you’ ‘yours’ is the formula for
maintaining ‘you’ attitude in business letters. Consider the following examples:

I and We You and Your

1. I was happy to hear that my letter Thank you for your assurance that you have
provided sufficient information for the sufficient information for the completion of
completion of order for us. your order

2. I am happy to report You will be happy to know

3. We make six styles in all sizes, available You may have your choice of six styles in all
in cartons of four sizes. These are packed in cartons of four for
your convenience in stocking.

However, ‘you attitude’ should never be over-emphasized at the cost of sincerity

and truthfulness of the message. There should be no exaggeration in their usage. ‘You
attitude’, in business letter writing is not merely a matter of phraseology but is one of
the
attitude. What is important is pointing out the qualities related to reader’s advantage such
as value for money, quality, utility, appearance, profit, enjoyment, economy etc.,

Emphasizing the Positive: Remember even a letter that has to say ‘No’ can
be written from a positive point of view. Compare the following two statements:
-- We regret to inform you that we will not be able to dispatch
Your order until (Negative)

-- Thank you for your order. The merchandise will go out to

You as soon as (Positve)
Therefore, make it a rule never to start or end your letter with a negative message
or information. Whenever possible, avoid words with a negative connotation such as
careless, complaint, error, neglect, unfair etc.
Making the Letters Smile: Some phrases have a built-in smile and use them freely
to get a smile into your letter, a bit of your personality and an atmosphere of goodwill. A
successful business letter should leave a pleasant impression. The phrases listed below
should be used as freely as possible to make the business letters smile:

-- We shall be glad to ……..

-- We appreciate very much …….
-- Thank you ……..
-- It is a pleasure …….
Making the copy Live: The language used in a business letter must create a visual
experience and the reader should feel what you say.
Consider the following paragraph giving a vivid description about the dictionary sought to
be marketed by the publisher:
“You lift it in your hands and feel the good solid weight of a volume that will last a
life time! You’ll open the big pages and make the exciting discovery that here at last is a
volume that tells you just what you want to know about a word or a subject. Never again
will you go searching through old dictionaries and encyclopedias and with this brand new
volume you’ll see how wonderfully easy it is to learn and learn …. Yes, every member of
your family from school kids to grandmother”.
Certainly, the above description of the dictionary will succeed in creating a visual
experience in the mind of the reader and will make him feel what you say he will.
 Phrases and Expressions to be avoided: One who wishes to become a successful
business letter writer has to be careful in the use of words and phrases in communication.
Only short and concrete phrases are to be used. One must be natural in writing and all
kinds of artificially should be avoided. The following phrases should never find place in
business letters as they will only spoil their style and effectiveness:
Yours of recent date.
Contents noted,
Your favour has duly come to hand,
Attached you will find.
Herewith enclosed,
We beg to advice,
We wish to state
We would suggest
As per your
request.
The phrases such as those listed above, known as ‘whiskers’ or ‘jargons’ act as
barriers between the writer and the reader. One does not talk this way in actual personal
conversation, and so should be avoided in writing as well.
Recommended Usage in the Place of Letter Whiskers/Jargons
You may keep in mind the following recommended usage in the place of
commonly used expressions in business letters:
‘Thank you for your favour of March 4’, Never call a letter a favour, write instead,
‘Thank you for your letter of …
‘Thanking you in advance’ – Write instead, ‘We shall be grateful for any
information that you may care to send’.
‘This letter is for the purpose of requesting’…! Forget this formality, Straight away
ask for what you want.
‘Will you be kind enough to’ ….. Write simply ‘Please’.
‘In view of the fact that’ ….. Write instead ‘since’ or ‘because’
‘Awaiting your favour …. ‘Instead, write, ‘please let us hear from
you’.
‘I have your letter of January 10 at hand’. Write instead, ‘Thank you for your letter
of January 10’.
‘At an early date’. Instead, write, ‘soon’.
 ‘As stated above’, ‘as stated below’. Instead, write ‘from these facts’ or ‘for the
following reasons’.
 ‘We wish to acknowledge receipt of your letter. ‘Write instead. ‘Thank you for
your letter’.
‘Your favour received and contents duly noted-‘Simply write instead, ‘Thank you
for your letter’.
‘Hope and trust’ – Just write ‘hope’ or ‘trust’
‘Insist and demand’ – just choose one.
‘First and foremost’ – Just choose one
‘Sincere and earnest’ – just choose one.
‘Anxious and eager’ – just choose one.
‘Beg to acknowledge’, ‘beg to state’, ‘Beg to inform’. Please do not ‘beg’. Write
simply: ‘acknowledge’, ‘state’, ‘inform’ etc.,

‘Herewith enclosed please find’, (If you can!) Simply write, instead, ‘We enclose’
‘Kindly favour us with your Cheque’. Simply write ‘Please send your cheque’
Summary
All business letters should be written from the reader’s point of view. ‘You’
attitude is very important. So also is emphasizing the positive and making the letters smile
and live. All stilted phrases and jargons or whiskers should be avoided. The style must be
natural and simple. All artificiality should be avoided.
Self-examination Questions:

1. ‘A business letter should be written not as the writer would like to write, but as
the reader would like to read’. Discuss.
2. What is ‘You-Attitude? What is its importance in business
letters? Illustrate your answer.
3. What do you understand by ‘Letter-Whiskers’ or ‘business
jargons’? Why are they condemned?
4. Give 10 phrases which are to be avoided in writing business letters and give
their
Simple equivalents.
 LESSON 2.4
LAY-OUT OF A BUSINES LETTER

Learning Objectives
After going through this lesson you should be able to understand:
 The over-all arrangement of the different parts of a business letter
 The different forms of lay-out or the appearance of the different parts of a
letter according to the style of arrangement adopted.

ARRANGEMENT OF THE DIFFERENT PARTS OF A BUSINESS LETTER

In Lesson 2.2. you have learnt about the different parts of a business letter
constituting its over-all structure. Their over-all arrangement and appearance on the letter
paper once typed out is referred to as lay-out. The different forms of lay-out are: (1) Block
form, (2) Semi-Block Form, (3) complete Block, form, (4) Indented Form, (5) Hanging
Indented Form and (6) simplified or NOMA Letter.

Block Form of Lay-Out: The Block form of lay-out is more popular now-a-days. In this
form, all paragraphs and lines start from the left-hand margin, with the exception of the
complimentary close and the signature (Figure 2.1). The ‘heading’ is always centered,
whatever the form of lay-out. The advantages of Block Form of lay-out are: (1) saving in
the stenographer’s time since no time is wasted in spacing the lines and paragraphs, (2) the
letter becomes modern. In this form of lay-out, no punctuation is made. That is, open
form of punctuation should always be the rule in the Block Form of lay-out.

Semi-Block Form of Lay-out: The Semi-Block Form is a compromise between the Block
and the Indented forms. IN this form, the stenographer uses the Block form with open
punctuation but indents each paragraph in the body of the letter 5 spaces (Figure 2.2)
 (Heading)

(Date)

(Inside Address)

(Salutation)

(Body of the Letter – First Paragraph)

(Body of the Letter – Second Paragraph)

(Complimentary Close)
(Signature)

(Dictator’s and Stenographer’s Initials)

(Encl.)

Figure 2.1 - Block Form of a Business Letter

Figure 2.1 – Block Form of Business Letter

 (Heading)

(Date)

(Inside Address)

(Salutation)

(Body of the Letter – First Paragraph)

Figure 2.2 - Semi-Block Form of a Business Letter

(Body of the Letter – Second Paragraph)

(Complimentary Close)
(Signature)

(Dictator’s and Stenographer’s Initials)

(Encl.)

Figure 2.2 – Semi-Block Form of a Business Letter

Complete Block Form: In the Complete Block Form, all the elements of the letter, except
the heading, start from the left-hand margin. Hence, no time is wasted in spacing. This is
an ultra-modern form (Figure 2.3).

Indented Form: The indented Form is considered as obsolete one as it requires

unnecessary waste of stenographer’s time for spacing and punctuations. The Indented
Form was widely used two decades ago with closed punctuation. In this form, each line of
the address and paragraph beginnings are indented about 5 spaces (Figure 2.4). (This form
requires complete punctuation).

Hanging-Indention Form: The Hanging Indention Form of business letter is effective in

attracting attention, and so can be used with advantage in the case of Sales Letters. In this
form of lay-out, the first line of each paragraph is begun at the left-margin but the
remaining lines of the paragraph are placed away from the left-margin by five spaces
(Figure 2.5). The resulting appearance is a combination of those of Block and Indented
form. This form is not used much in practice.

Simplified or NOMA Letter: The main characteristics of Simplified Letter form are the
complete elimination of the salutation and complimentary close, and the left-hand block
format, which is similar to that of the Complete Block form (figure 2.6). If efficiency in
letters in terms of saving in stenographer’s time were the sole criterion, this form of letter,
would be ideally suited. However, since custom and tradition still carry a heavy weight, it
will take a fairly long time before this form comes to be accepted universally. Originally,
the National Office Management Association (NOMA) of U.S.A used this form, and hence
the alternative name NOMA Letter.
 (Heading)

(Date)

(Inside Address)

(Salutation)

(Body of the Letter – First Paragraph)

(Body of the Letter – Second Paragraph)

(Complimentary Close)

(Dictator’s and Stenographer’s Initials

(Encl.)

Figure 2.3 – Complete Block Form of a Business Letter

 (Heading)

(Date)

(Inside Address)

(Salutation)
Figure 2.3 - Block Form of a Business Letter

(Body of the Letter – First Paragraph)

(Body of the Letter – Second Paragraph)

(Complimentary Close)

(Signature)

(Dictator’s and Stenographer’s Initials

(Encl.)

Figure 2.4 -Indented Form of a Business Letter

 (Heading)

(Date)

(Inside Address)

(Salutation)

(Body of the Letter – First Paragraph)

(Body of the Letter – Second Paragraph)

(Complimentary Close)

(Signature)

(Dictator’s and Stenographer’s Initials

(Encl.)

Figure 2.5 – Hanging Indention Form of a Business Letter

 Figure 2.4 – Indented Form of a Business
Letter (Heading)

(Date)

(Inside Address)

(Subject-Matter)

(Body of the Letter – First Paragraph)

(Body of the Letter – Second Paragraph)

(Signature)

(Dictator’s and Stenographer’s Initials)

(Encl.)

Figure 2.6 – Simplified or NOMA Form of a Business Letter

Summary
The over-all arrangement and appearance of the different parts of a business
letter may result in six different forms viz., (1) the Block Form, (2) the Semi-Block Form,
(3) the Complete Block form, (4) the Indented form, (5) the Hanging Indention and (6) the
Simplified or NOMA letter. The Complete Block form and Simplified Letter are
considered ultra-modern. Whereas, the Block Form has become popular, the Simplified
Letter or NOMA form is yet to gain universal acceptance.

Self-examination Questions:

1. Define ‘Lay-out’ of a business letter and explain briefly the different

forms of lay-out.
2. Point out the advantages of the Block Form and Complete Block form
lay-out of a business letter.
3. What do you understand by Simplified Letter? Why has it not become
popular?
 LESSON 2.5
REQUEST LETTERS
Learning Objectives

After reading this brief lesson you should be able to:

 Understand the nature of request letters.
 Learn the types of responses to request letters.
Letters making certain requests may be sent to a firm by prospective
customers or the firm may send out letters of request to other firms or banks. The
responses for such requests may be either positive or negative. The letters granting the
requests are easy to write. But the letters refusing the request are one of the difficult types
of letters to write. Great tact and courtesy must be used if the reader is not to be
antagonized or offended. That is to say, the letter may say ‘NO’ and still retain the
goodwill of the party making the request.
The replies granting the requests should capitalize the occasion in full to
build goodwill and induce action on the part of the person making the request. It should:
(1) state the action taken, (2) make specific reference to the enclosures such as catalogues,
pamphlets etc., and (3) incorporate sales talk for motivating the reader to act positively to
the suggestions made.
OCCASIONS FOR SENDING LETTERS OF REQUEST
Some of the purposes for which the letters of request may be written are:
(1) Obtaining catalogues, (2) Obtaining quotations, (3) Obtaining samples, (4) Obtaining
supply of goods on credit terms.
Obtaining Catalogues and Price Lists: When a prospective customer sends a letter
making a request for the firm’s catalogue and price list, the opportunity must be seized to
secure an order from the party concerned.
The reply must be sent immediately duly enclosing the catalogues and price lists requested
for by the sender.
Obtaining Quotations and Samples: Requests for quotations and samples should be
promptly attended to. They should not be dealt with casually. These requests if
capitalized will go a long way in establishing permanent business relationships. It must be
remembered that requests for quotations and samples are made with a view to make a
comparison with those of competitors. Therefore, orders will follow if the quotations are
competitive and satisfactory and the quality and service are assured.
Request for Supply of Goods on Credit: If the request for supply of goods on credit
comes from existing customers there will be no problem in granting the request, Should it
come from a new party, obviously, the request cannot be granted. But the negative reply
must be polite and firm in tone.
Some Helpful Opening Sentences for Writing Letters of Request
You may use with advantage the following opening sentences in writing letters of request
according to the context:
1. We shall be glad to receive your lowest quotations and terms of business for .
2. We invite quotations for the supply of items listed below in large quantities
within two weeks of placing orders.
3. We shall be pleased to receive a copy of your latest catalogue on ….
4. We require samples and your lowest quotations of ……
Closing Sentences for Writing Letters of Request
1. We look forward to placing a large order, if your quotations are competitive
and the terms of business reasonable.
2. We intend to place a large order if your prices are competitive.
3. If your quotations and terms of business are reasonable, we hope to place an
order with you.
4. Please ensure that your quotations and samples reach us on or before ….
5. A satisfactory quotation will be to our mutual advantage.
Helpful Opening Sentences for Writing Replies to Request
1. We thank you for your letter of August 3, and were glad to know of your
interest in our publications …..
2. We are glad to know of your interest in our products and have pleasure in
giving our lowest quotations for the supply of ….
Helpful Closing Sentences for Writing Replies to Requests
1. We are sure, you will find our quotations very competitive and send in your
order which will receive our prompt attention
2. May we request you to send in your order immediately?
3. The quotations we have made are for first-class work and finish and trust they
would be acceptable to you.
4. Your orders can be met promptly from ready stock.
5. We will dispatch the goods as per your order as soon as we receive your
cheque.
ILLUSTRATION:
A LETTER CARRYING A REQUEST FOR CATALOGUE AND TERMS OF
BUSINESS
Students Book Centre
University Campus
Pondicherry – 605
014.
December 15, 1994
Messrs. Sultan Chand and Sons,
4792/23, Daryaganj
New Delhi – 110 002.

Gentlemen:
We are in this line for the last 10 years serving the needs of University and
College students as well as libraries. We propose to stock your renowned publications for
sale. We can assure you a minimum business of Rs.2,00,000 initially.

We shall be thankful if you would send us your latest catalogue and price
list along with your terms of business for bulk buyers.

Yours faithfully,

S. GnanaguruVivek
Partner
STUDENT BOOK CENTRE

REPLY TO THE REQUEST FOR CATALOGUE AND TERMS OF BUSINESS

Sultan Chand & Sons, Educational Publishers,

4792/23, Daryaganj, New Delhi 110 002.
December 28, 1994
Mr. S. GnanaguruVivek
Partner, Students Book Centre,
University Campus
PONDICHERRY – 605 014.

Sir,
We thank you for your letter dated December 15, have pleasure in sending you
under separate cover a copy of our latest catalogue and price list.

We much appreciate your interest in our publications. Our list prices are subject to
a trade discount of 20 per cent and we can offer you an additional commission of 5 per
cent in case you order for a minimum Rs.25,000 worth of our publications.

We trust that you will be able to take advantage of our liberal terms and send in
your order which will receive our prompt attention.

Yours faithfully,

N. RAMESH CHAND
Sales Manager
 REQUEST FOR SUPPLY OF GOODS ON CREDIT TERMS
College Book House,
College Road, Kumbakonam – 612 001.

January 10, 1995

The Sales Executive,
Tata-McGraw-Hill Publishing Company Limited,
4/12, Asaf Ali Road, New Delhi 110 002.

Sir,
We are desirous of stocking your under-mentioned publications for sale:
(a) Accountancy by Babat, Saiyed and Waze
(b) Government and Business by d. Amarchand
Please supply at your earliest convenience 200 copies of each title in students’
edition. Your bill will be duly settled in 30 days’ time.

In view of the large order, we hope that you will allow us your liberal discount.

Yours faithfully

V. sendhil
Managing Partner

LETTER REFUSING THE REQUEST FOR SUPPLY OF BOOKS ON CREDIT

Tata-Mcgraw-Hill Publishing Co., Ltd.,

4/12, Asaf Ali Road, New Delhi – 110 002.

January 16, 1995

Mr. V. Sendhil
Managing Partner
College Book
House,
College Road, KUMBAKONAM – 612 001.

Sir,
We thank you for your order of January 10 for our publications.

We are sorry to inform you that we are unable to execute your order without
payment in advance. The enclosed proformainvoice would show the cost of the order and
we will dispatch the books required by you as soon as we receive your cheque.

Pleae not we have allowed you a special cash discount of 5 per cent on the
proformainvoice price.

Yours faithfully,

V. Vinay
Mathur Sales
Executive
Summary
Letters of request when received should receive prompt attention since they
provide an opportunity to establish permanent business relationships. Replies to requests
may be either positive or negative. Even the negative replies should be written with great
tact and courtesy without offending the person making the request. Positive replies must
include some sales talk to motivate the reader to act favorably to the suggestions contained
in the reply.

Self-examination Questions and Exercises:

1. What are letters of request? Explain the purposes for which such letters may
be written?

2. You have received a request from the principal of a newly opened college in
Pondicherry for laboratory articles. You find the discount asked for and
conditions of supply rather unreasonable. Write a suitable reply to the Principal
with a view to making him a regular customer for your goods in future.
 LESSON 2.6
COLLECTION LETTERS

Learning Objectives
After reading this lesson you should be able to:
 Understand the need for and nature of Collection Letters.
 Know the precautions to be taken while drafting Collection Letters.
 Know the stages of Collections.

NEED FOR COLLECTION LETTERS

Most of the business transactions are on credit terms only. When the supplies are
made on credit together with the attendant benefits of discount, the seller expects that the
buyer will pay promptly on the due date. Unless the payment is so made, the sale made by
the seller could not be deemed as a sale. Slow and delayed payments not only cause
hardships to the seller but also increase his risk in the credit extended to the buyer. Slow
collections will pull down the volume of sales as well as the margin of profits. As such,
business concerns usually have a separate collection department to follow up the credit
sales and ensure timely collections of all overdue accounts. This is done by writing the
collection letters. These letters must be written with special tact and skill.
NATURE AND FUNCTION OF COLLECTION LETTERS
Actually, there is no such thing as the ‘collection letter’ since the collection of
overdue accounts involves writing of a series of collection letters and not just one. The
collection letter like misfortunes ‘come not singly but in battalions known as the collection
series’. The collection series is prepared and sent out to the customers on the following
assumptions:
1. The customer has forgotten to pay.
2. The customer wishes to be reminded that payment is due.
3. That something is wrong with the goods, the service or the records of
the transactions.
4. The ideas of all the previous letters were wrong.
5. The customer is irresponsible
6. The customer will pay only if he is made to pay.
 The function of collection letters is to collect the money and at the same time to
retain the customer’s goodwill. The aim should not be collecting the amount due ‘anyhow
and somehow’. ‘Collect money, but keep the customer’ should be the golden rule to be
kept in mind. However, the debtors are of many kinds viz., those who are naturally slow
from lack of experts at framing all sorts of excuses for deferring payment; those who will
be able to pay. Again, their credit rating may be good, fair or poor. Therefore, each one of
these categories has to be dealt with suitably.
TECHNIQUES OF WRITING COLLECTION SERIES
All collection letters must be written in a courteous and polite tone. However, the
message must be made clear and stated firmly. The success of the collection series
depends on the frequency with which the individual letters are sent and the timing of the
letters. This depends on many considerations such as whether the customer is regarded as
a good, fair or poor credit risk, whether he is engaged in a seasonal occupation like
agriculture, and whether he is a retailer or a wholesaler.
In general, the following would be the theme:
1. The first letter is written in a casual tone and the customer is simply reminded
that the bill should have been paid on a certain date. It is also very short.
2. If there is no response for the first letter, a reminder is sent.
3. In the third letter the approach stiffens considerably. The writer no longer
suggests that the customer has overlooked the payment due; instead the
specially asks what is wrong.
4. Even if the third one has not evoked a response from the customer it is
presumed that the accounts appears to be in danger. Accordingly, the writer
asks for fair play. He may enclose a bill for the customer to sign.
5. In the fifth letter, the customer is reminded about the importance of his credit
rating and a hint of legal action is also given.
6. The sixth letter is the final appeal and the customer is reminded of the expense
and embarrassment to him. If legal action is initiated.
7. In the final letter, a specific number of days is given to the customer to pay. He
is plainly told that he either pays or faces legal action.
It may be observed that the purpose behind writing this series of collection letters is to
exhaust all possible peaceful and pleasant steps to recover the amount due before the threat
of legal action is given. However, once the threat of legal action is given out, it must be
taken to tits logical and should not be merely a paper threat.
 The collection series given below will enable you to appreciate the points discussed
in the foregoing pages.

A CASUAL REMINDER

SARAVANA AGENCIES

30, Godown Street,

Madras – 600 001.

August 5, 1995
The Proprietor,
Hotel Deluxe,
110, Mahatma Gandhi Road
Coimbatore – 641 001.

Sir,

We are sure your customers must have been pleased with our last shipment of
Basmathi Rice. As you know, the supply is limited these days, due to export demand.
However, we have received, just now, another consignment from our principles, and they
are superfine in quality. You can let us know of your requirements before the stock is
exhausted.
In the meantime, may we remind you that no payment has been received from you
for the last consignment?
Yours faithfully,
A. NITHESH
Manager

LETTER INSISTING ON PAYMENT

SARAVANA AGENCIES
30, Godown Street,
Madras – 600 001.
August 20, 1995
The Proprietor,
Hotel Deluxe,
110, Mahatma Gandhi Road
Coimbatore – 641 001.

Sir:
This has reference to our letter dated August 5, 1995 concerning your overdue
account. Obviously, you have overlooked it and hence this reminder. Will you please
send us your cheque for Rs.51,000 in the enclosed envelope by return?

If you have already sent us your cheque, please accept our thanks and disregard this
reminder.

Yours faithfully,
A. NITHESH
Manager
 LETTER ACCOMPANIED BY STATEMENT OF ACCOUNT

SARAVANA AGENCIES

30, Godown Street,

Madras – 600 001.
August 30, 1995
The Proprietor,
Hotel Deluxe,
110, Mahatma Gandhi Road
Coimbatore – 641 001.

Sir,
While drawing your attention to our letters dated 5th and 20th August 1995. We
have to state that we neither received your valuable order nor the payment due to us. We,
therefore, enclose a Duplicate Statement of Account from which you will note that the
total amount due to us is Rs.51,000

We would be happy to receive your cheque in full payment of the dues as well as
your valuable orders.

Yours faithfully,

A. NITHESH
Manager

LETTER FIXING A DATE FOR PAYMENT

SARAVANA AGENCIES

30, Godown Street,

Madras – 600 001.

Septembert 20, 1995

The Proprietor,
Hotel Deluxe,
110, Mahatma Gandhi Road
Coimbatore – 641 001.

Sir:

We are really surprised to find that you have chosen to take no notice of our letters
of 5th, 20th and 30th August 1995 requesting the settlement of your overdue account.

As it is, we must insist on the payment of your account by 30th September 1995.

Yours faithfully,

A. NITHESH
Manager
 LETTER HINTING AT LEGAL ACTION

SARAVANA AGENCIES

30, Godown Street,

Madras – 600 001.

October 1, 1995
The Proprietor,
Hotel Deluxe,
110, Mahatma Gandhi Road
Coimbatore – 641 001.

Sir,
We are sorry that you have chosen to ignore our previous three letters concerning
the settlement of your overdue account running to Rs.51,000. You now leave us no other
course than to ask you for payment by return as an alternative to our placing the matter in
the hands of our legal advisers.

We need not tell you that legal action is expensive and unpleasant.

We are sure you will agree that we have tried to avoid all unpleasantness, and hope
that you will at once attend to the matter.

Yours faithfully,

A. NITHESH
Manager

Summary
The function of a collection letter is to collect money on overdue accounts, and at
the same time retain the customers’ goodwill and patronage. The collection letters are
written in a series. All letters in the series must be courteous in tone and should never
abuse the debtor. All peaceful steps should be exhausted before the threat of legal action is
held out. Once such a threat is given, it must be taken to its logical end.
Self-examination Questions and Exercise
1. What are collection letters? Why are they written in a series?
2. Through how many stages does a letter of collection pass? Explain fully the
significance of each stage.
3. ‘Collect money, but keep the customer’. Explain the significance of this
statement.
4. You have not received replies to the two letters you have sent to a customer
who owes you money for a business deal that was completed three months
back. Write the third letter that you would send him in this situation.
5. You are a society ladies shop owner. Having regard to the necessity of not
offending customers, write a tactful letter to a lady customer whose financial
position is believed to be good but who has owed you Rs.5,000 for ten months.
6. Write a letter to a customer who has not paid your bills though you have sent
him several reminders by now. Request him pay the bill immediately and
avoid legal action. Stress the value of good credit rating.
7. Write letters from the following particulars:
(a) Mr. K.Santoshkumar, a customer of Kumaran Stores, has neither settled his
account with them nor given any reply to their reminders. Kumaran Stores
write a symlpathetic letter to Mr. Santoshkumar, inquiring whether he is in
financial difficulties and suggesting payment in instalments.
(b) Mr. K. Santoshkumarexplains why he has not been able to settle the
account, appreciates the mode of payment suggested by Kumaran Stores
and encloses a cheque to cover 25 per cent of his debt.
8. You have received a reply to your third letter of collection from a customer,
who, while giving explanations for delayed payment states that he was not
happy with the quality of service at the time of last transaction. Draft a suitable
reply stressing the need for immediate payment and refuting the complaint
regarding defective service.
 UNIT III
Unit Structure:
Lesson 3.1 - Letters of Inquiries And Replies To Inquiries
Lesson 3.2 - Orders-Placement, Acknowledgement Execution, Refusal and Cancellation

LESSON 3.1
LETTERS OF INQUIRES AND REPLIES TO INQUIRIES

Learning Objectives
After reading this lesson you will be able to:
 Explain the nature and purpose of letters of inquiry.
 Learn the techniques of writing different types of letters of inquiry.
 Master the techniques of writing effective replies to inquiries.
MEANING AND PURPOSE OF MAKING INQUIRES
The dictionary meaning of ‘inquiry’ is ‘seeking for truth, information or
knowledge’; ‘a question’; ‘a query’. Therefore, letters of inquiry are written for the
purpose of getting information about availability of certain products their prices, the terms
of business and the like so that the inquirer can take appropriate decision to further his
business interest.
To the person receiving the inquiries, they are procurers of business and open out a
vista of prospective business. It may not be an exaggeration if the letters of inquiry are
names the ‘Open Sesame’ of the cave of the Forty Thieves.
TYPES OF LETTERS OF INQUIRY
The letters of inquires fall under two categories, viz., (i) the solicited letters of
inquiry and (ii) the unsolicited letters of inquiry. When inquiries are made through the
medium of letters in response to advertisements soliciting the same, such letters are known
as solicited letters of inquiry. Other sources for writing the letters of inquiry are (a)
Catalogues, (b) Trade Magazines, (c) Trade Directories, (d) Newspaper reporting and
reviews etc., Making solicited inquiry presents no difficulties and the letter is usually very
brief – no longer than one or two sentences. For example: ‘Please send us information
about the features and cost of Overhead Projectors which you advertised in Indian Express
dated March 1, 1995’. The inquirer should, however, be careful to include his full address.
If he uses a paper without a letter - head.
 However, writing the unsolicited letters of inquiry is somewhat complex and more
detailed. These are written to firms with which no previous transactions have been
conducted. Therefore, the letter has to be more explicit; references have to be given; a
careful description of the kind and quality of goods desired should be stated; should send a
ask for samples to preclude any form of doubt and an indication as to whether the purchase
is to be made for cash or on credit is also to be made. Wherever possible, referring to
catalogues will be ideal and it eliminates any chance of error being committed by the
supplier. To induce the seller to give competitive quotations, an indication of the size of
the order or quantity required may be also made. But this should not be a mere bluff
amounting to cheating.
EFFECTIVE OPENING SENTENCES
You may keep in mind the opening sentences suggested below when writing letter of
inquiry:
1. As we are interested in the purchase of ……. We shall be glad to receive your
lowest quotations and terms of business.
2. We should be glad to receive your lowest quotations and terms of business for
the following goods:
3. We shall be thankful if you could let us have your terms of business for the
supply of the following goods in large quantities:
4. As we are interested in replenishing the stocks of the following goods, we
should be glad to have your lowest quotations:
5. We are on the point of making a large export of various goods, and it is our
intention to include a certain choice items of your line of goods in it.
6. We require samples and your prices of …….
7. We have received an inquiry from our Middle-East client for the supply of your
stainless steel bathroom fittings, and the party concerned has assured us that he
is ready to place a large order, if rates are competitive and quality is assured.
EFFECTIVE CLOSING SENTENCES
The letters of inquiry should not only have an effective opening, they must also be
concluded on a note of hope, such as ‘If prices are reasonable and competitive, a big order
will follow’. You may keep in mind the following closing sentences:
1. If you rates are competitive, we propose to cover all our requirements for the
season through you.
2. We intend to place a large order if the prices are reasonable.
 3. As we are in a position to place orders or behalf of our clients with you
regularly, we trust you will offer your most competitive rates.
4. We hope to place a large order, if your quotations are responsible and terms of
business favorable.
5. Should your price and terms of business suit us, and your goods prove
satisfactory, we may be able to give you further orders.
6. If your terms of business and rates are suitable, they may lead to enduring
relationship between us.
7. We, therefore, request you to state the best terms you can offer, to enable us to
place an order with you.
You may now study the specimen letters of inquiry and replies to those inquires
and see for yourself the techniques involve in drafting them.

A LETTER OF INQUIRY GIVING TRADE REFERENCES

Cakes-N-Bakes
Beach Road, Cuddalore – 607 001
Novermber 1, 1995
The Business Manager,
Jupiter Paper Box Makers,
Industrial Estate,
Guindy, Madras – 600 025.

Sir,
We would require 5,000 fancy stiff board boxes in assorted sizes for the coming
Christmas Season. Please quote your lowest prices for the undermentioned size boxes
stating
The time required for effecting delivery:
20 cm x 30 cm
15 cm x 30 cm
15cm x 15 cm
10cm x 20 cm
We give below address of two firms for reference should you so desire:

1. Messrs. Ashokkumar and Sons,

Wholesalers and commission
Agencies
N.S.C. Bose Road, Madras – 600 001.

2. Messrs. Vikash
Bros., Financiers,
Mint Street, MADRAS – 600 083.

Yours faithfully,
R. Mohan
Proprietor
 A LETTER OF INQUIRY ASKING FOR QUOTATIONS AND TERMS OF
BUSINESS
Balaji Chit Funds
Temple Square, Madras – 600 004.

March 4, 1995
The Sales Manager,
Chidambaram Envelope Manufacturing Company Ltd.,
Venugopal Pillai Street, Chidambaram – 608 001.
Sir,
Please send us your lowest quotations for the undernoted items stating the time
required for deliver:
15 cm x 15 cm. Envelope
20 cm x 30 cm. Envelope
10 cm x 20 cm Envelope
15 cm x 30 cm Envelope
We would require 5,000 envelopes in each size range in two weeks’ time initially.
Should your terms be satisfactory we would be willing to give you a year’s contract.

Yours faithfully,

N. Kishore Kumar
Managing Partner

REPLY TO THE ABOVE INQUIRY

Chidambaram Envelope Manufacturing Company Limited,
Venugopal Pillai Street, Chidambaram 608 001

March 6, 1995
The Managing Partner,
Balaji Chit Funds,
Temple Square, Madras – 600 004.

Sir,
Thank you for your inquiry of March 4, and we are glad to offer you ex-warehouse
and for delivery until April 4, our quotations as follows:
15 cm. x 15 cm. Envelopes Rs.30 per hundred
20 cm. x 30 cm. Envelopes Rs.65 per hundred
10 cm. x 20 cm. Envelopes Rs.25 per hundred
15 cm. x 30 cm. Envelopes Rs.60 per hundred
All these envelopes can be supplied, should you desire, with your address duly
printed. The minimum quantity for order in each size is 1,000 only. The envelopes can be
supplied within seven days of the receipt of your order.
We have quoted our rates so low that other firms will scarcely be in a position to
make a more favourable bid and deliver faultless workmanship. May we look forward to
your order immediately?
Yours faithfully,
VR. Saravanan
Sales Manager
 LETTER TO A DESK TOP PUBLISHER ASKING FOR QUOTATIONS
Nonsuch University
Guindy, Madras – 600 025
March 1, 1995
The Proprietor,
Super Computer Centre
East Car Street, Chidambaram – 608 001.
Sir,
We are interested in publishing a conference souvenir running to about 250 pages.
We shall be thankful if you let us know your competitive rates for typesetting the souvenir
as per the specifications given below:
Specifications for Page Layout
Page size : A4 (computer sheet to be used)
Line Spacing : 1.5
No. of characters per line 70
Top and bottom Margins : 2.54
cms Justification : Full
No. of lines per page : Around 35 printed lines
Size of font : 12 points (12 characters per
inch) (CPI)
We would require delivery within four weeks of placing the order. Please ensure
that your quotation reach us on or before June 10, 1995.

Yours faithfully,
M.M. Godbole
Registrar
REPLY TO THE ABOVE INQUIRY
Super Computer Centre
East Car Street, Chidambaram – 608 001.
March 3, 1995
The Registrar,
Nonesuch University
Guindy, Madras – 600 025.
Sir,
We thank you for your enquiry of March 1 and have pleasure to offer you our
quotations as below:
Page size : A4
Line Spacing : 1.5
No. of characters per line 70
Justification : Full
No. of lines per page : Around 35
Size font : 12 points
Quotation : Rs.7 per page
Payment of bill : On presentation by us
The quotation we have made is for first-class work and trust it will be found
acceptable to you. Should we get your order, we assure you that the work will be executed
promptly and to your satisfaction.
Yours faithfully,
G. Ramadoss
Proprietor
 A LETTER MAKING AN INQUIRY FOR SUPPLY OF OIL

Working Women’s Hostel,

Nehru Street, Madurai – 625 001.

June 5, 1995.
The Sales
Manager, Tata Oil
Mills Ltd.,
Kozhikode
(Kerala)

Sir,
Please let us know at what rate per tonne and upon what terms you would be able
to supply us double refined groundnut oil. If your quotation is favourable and the oil
proves satisfactory, we propose to cover all our requirements for the year through you. We
will require a minimum quantity of one tone per month.

Yours faithfully,

S. Sivaranjani
Chief Warden

REPLY TO THE
ABOVE Tata Oil Mills Limited
Market Road, Kozhicode

June 10, 1995

The Chief Warden,
Working Women’s Hostel
MADURAI – 625 001.

Madam:

Thank you for your inquiry of June 5. We can offer our Double Refined
Groundnut oil at Rs.620 per tine of 15 kg. Inclusive of tax, ex-factory with 2 per cent
discount against cash in 7 days.
We are in a position to meet all your requirements for the year and shall be pleased
to open an account with you if you will provide us with the usual bank references.
As the edible oils market is showing an upward tendency on account of the
approaching festival season, this offer will remain open until the receipt of your telegram
by return.

Yours faithfully,

K. Tharian
Vargheese
Sales Manager
 A LETTER OF INQUIRY CALLING FOR SAMPLES
Star Export House,
101, Armenian Street, Madras – 600 001.

March 25, 1995

The Business Manager,
Tiruppur Tex Ltd., Tiruppur,

Sir,
We are interested in the export of knitted vests and banians of all sizes in plain and
different colour shades. The materials should stand the quality control tests of export
textiles.

Please quote your lowest rates and terms of business sending the samples of vests
and banians which you can supply from ready stock.

A satisfactory quotation will be to our mutual advantage.

Yours faithfully,

Mary Joy
Manager

REPLY TO AN INQUIRY FOR SAMPLES AND TERMS OF BUSINESS

Tiruppur Tex Limited,

Car Street, Tiruppur

March 30, 1995

The Manager
Star Export House
101, Armenian Street, Madras – 600 001.

Madam:

Thank you for your inquiry dated March 5 regarding our export quality vests and
banians and we have pleasure to quote the following rates:

1. Plain of Different Shades (Rates per box of 10)

Size 80 Size 85 Size 90 and above
Rs.200 Rs.200 Rs.350
2. Checks and Stripes (Rates per box of 10)
(Sizes as above)
Rs.200 Rs.400 Rs.450
3. Fancy Designs (Rates, per box of 10)
(Sizes as above)
Rs.400 Rs.500 Rs.450
The above prices are exclusive of Sales Tax with 5 per cent discount for payment
in 15 days.
 Your orders can be met promptly from ready stock. Export packing will be
charged at the lowest possible rates.
We have enclosed a pamphlet showing the patterns and designs of articles
manufactured by us. The samples have been dispatched by separate Registered Parcel
Post. All these articles are manufactured by us especially for the export market.

We are sure you will find our quotations very competitive and send in your order, which
will receive our best attention.

Yours faithfully,

G. Angaiah
Manager-Export Wing

Summary
All letters of inquiry are procures of business to the person receiving them. They
fall under two categories: (1) the solicited and (2) unsolicited letters of inquiry.
The unsolicited letters of inquiry are somewhat complex to write. These letters
must be more explicit and carry full details. The letters of inquiry and the replies to such
inquiries should have effective opening and closing sentences.
The inquiries may be for quotations: for samples, and for terms of business. All
replies to inquiries must be prompt and courteous.

Self-examination Questions and Exercises

1. Explain fully why letters of inquiry should be clear, correct and complete.
2. Draft an inquiry for certain seasonal goods you require urgently.
3. You desire to get a catalogue of your company printed urgently. You approach a
printing press and ask them whether they would be willing to undertake the work, and
if so, on what terms and conditions. Write the letter making the inquiry and also draft
a suitable reply.
4. You are planning to purchase for the coming festival season certain goods which
conform to the sample you have with you. Send the sample to the supplier and ask
him whether he would be willing to supply the goods which would be exactly similar
in texture and quality to the sample you send. Request him also to give quotations
and other terms and conditions on which he would be prepared to supply your
requirements.
Draft also a suitable reply to the above.
5. You have received an inquiry from Remington Rand Typewriter Company, Madras
for the supply of 1,000 wooden crates per month as per specifications sent. Make a
quotation soliciting the order. Say that on a year’s contract the rates would be lesser.
 Lesson 3.2
Orders-Placement, Acknowledgement, Execution, Refusal and Cancellation

Learning Objectives
After reading this lesson you will be able to learn:
 How to write letters placing orders.
 How to write letters acknowledging the receipt of orders.
 How to write letters advising execution of the orders received.
 How to write letters regretting inability of executive the
orders received.
 How and when orders already placed may be cancelled.
LETTERS OF ORDER
From the study of the previous lesson you would have acquainted yourself with the
nature, purpose and technique or writing the letters of inquiry and the replies to such
inquiries. Compared to them, the task of writing letters placing orders are easy to write.
However, it does not mean they can be written casually and carelessly. A casually and
carelessly written letter placing the order will cause more trouble both to the sender and
the receiver. When giving an order, the wishes of the person placing the same should be
clearly and carefully stated to avoid further inquiry entailing loss of time and possible the
loss of the market as well. The essential qualities of an order are: Clarity, Correctness and
Completeness. To ensure these, the following general points may be covered in a letter of
order:
1. Description of the quality and quantity of goods required.
2. Quotations, if any
3. Mode of transport.
4. Address to which the goods are to be sent.
5. Time-limit if any.
6. Type of packing required.
7. Insurance to be effected.
8. Any other special conditions
9. Mode of remittance and settlement of account.
An order, which is urgent should be placed telegraphically and should be
immediately confirmed by a letter repeating the text of the telegram. Telephone may also
be used confirming the message later through a letter. Orders should always be
independent of one another. Do not write ‘Same number of the previous order is enough.
If a remittance accompanies the order, state its form and amount and then see that it does
accompany the order. In the case of the first order, state how payment is to be made and
give reference as to your financial standing.

ACKNOWLEDGEMENT OF ORDER
The letters of acknowledgement are known as ‘stop-gap letters’. The
acknowledgement should be made immediately or else the silence on the part of the
receiver may be regarded as equivalent to an acceptance of the order. Even when goods
can be dispatched expeditiously, large firms do acknowledge the receipt of the order. It is
customary to express thanks for the order repeating the essential points of the order. In
practice, however, such a reply is sent only where: (i) the order cannot be executed owing
to the goods not being in stock: (ii) an immediate delivery has not been demanded, and
(iii) the order has been received by telegram or on the telephone. In the case of the last
situation the reply would have been given over phone immediately.
LETTERS ADVISING EXECUTION OF ORDER
Letters intimating the dispatch of the goods as per order are usually sent along with
the invoice for the goods supplied. Such letters usually contain the following information:
a) A reference to the receipt of the order and expression of thanks.
b) Information as to the execution of the order.
c) Information as to the dispatch of the goods.
d) A statement of the amount of the invoice.
e) Mention of the mode of payment or how the seller intends to reimburse
himself, viz., by drawing a bill routed through the correspondent’s bank or by
debiting the correspondent’s account.
f) An expression of the hope that the goods will satisfy the buyer.
g) A solicitation for further order.

LETTERS EXPRESSING INABILITY TO EXECUTE ORDER

Sometimes the firm receiving the order may not be in a position to execute it. If so,
it must inform the correspondent immediately. The letter must express thanks for the order
and then give reasons for not executing it. If the goods can be sent after the date of
delivery specified by the party, the fact must be stated. If the goods ordered for, are no
longer stocked or produced, substitutes may be suggested. If the order had been placed by
a new party, a polite request should be made for an advance or reference. At times, even if
the firm is unable to execute the order exactly in accordance with the party’s instructions,
it may execute the order on its own terms or supply the next best substitute, provided the
order is of urgent nature and the buyer is an old customer and he will be put to difficulty if
the goods do not reach him on schedule. But the execution of the order in this manner is
equivalent to sending the goods on approval only. The firm must be prepared to take back
the goods on approval only. The firm must be prepared to take back the goods in case the
party is dissatisfied with them.
CANCELLATION OF ORDER
After placing the order, the party may at times, find it necessary to cancel it. Some
of the occasions for cancellation of an order are: (1) Fire accident destroying the business;
(ii) Local procurement from a business house closing down; (iii) Decision to remodel show
room or shift business premises; (iv) Strike by staff; and (v) Insolvency of the buyer.
The cancellation of the order should be done without any loss of time after the need
for tit has arisen. The cancellation should be made, preferably by telegram or on the phone
and immediately confirmed by a letter. The letter canceling the order or the one
confirming the telegraphic and telephone message should state the reasons for doing so
and express regret for the inconvenience caused to the seller. An indication about the
probable placement of the new order at a future point of time may be given. If the
cancellation is owing to inordinate delay in its execution, the letter should specifically
point out the same.
If the goods have been dispatched before the receipt of the letter, telegram etc.,
canceling the order by the seller, the buyer will have to accept the goods.
Now you may be pleased to study carefully the illustrations that are given below:

A LETTER PLACING AN ORDER GIVING REFERENCES

HOTEL DELUXE,
Esplande, MADRAS – 600 001.

December 5, 1995
The Business Manager,
EROTEX LIMITED
E.V.R Road, ERODE
Sir,
We are happy to place with you our order for the following items marketed by
you: 100 Single size Bed Sheets – Blue Colour
 100 Single size Bed Sheets – Green colour
200 Double size Bed Sheets – White
200 Double size Bed Sheets – Floral Designs in Blue Shade
In view of our bulk order we request you to charge us substantially, lower than the
rates quoted in your patterns album for October 1995. The payment will be made to you
within one month from the date of invoice. To avoid delay, please send the goods
ordered by road transport so as to reach us before December 15, 1995.
We give below the addresses of our bankers for reference should you so desire:

1. Indian Overseas Bank

Nehru Street
Pondicherry – 600
001.

2. Bank of Madura
Aurobindo Street
Pondicherry – 600
001.

Yours faithfully

J. Vasumathi
Manager

LETTER ACKNOWLEDGING RECEIPT OF ORDER

JUPITER PAPER BOX MAKERS,
Industrial Estate, Madras – 600 025.

November 5, 1995
The Proprietor,
Cakes-N-Bakes,
Beach Road, CUDDALORE – 607 001.

Sir,
We thank you for your order of November 1, 1995 and have pleasure in advising
you that all the items ordered will be dispatched to you as per your instructions in a week’s
time.

Yours faithfully,

K. Jayaretnam
Business Manager
 LETTER PLACING ORDER

SARAVANA BOOK HOUSE

University Campus, Kalapet,
PONDICHERRY – 605 014.

July 10, 1995

The Sales Manager,
Messrs. S. Chand and
Sons,
Daryaganj, DELHI – 110 002.

Sir,
We thank you for your letter of July 2nd and for your catalogue. Please supply the
titles listed below by passenger train within a week’s time:

1. Manual of Office Managemetn

and Correspondence by
B.N. Tandon - 50 copies
2. An introduction to Business English by
D. Amarchand - 50 copies
3. Income Tax Law and Practice by
M. Bagwathi Prasad - 50 copies
4. Managerial Economics by
R. Elango - 50 copies
5. Advanced Financial Accounting by
M.C. Shukla - 50 copies

Please pack the goods safely and negotiate the documents through the Vijaya
Bank, University Campus, Pondicherry – 605 014.

Yours faithfully,

K. Muthukrishnan
Manager

LETTER INTIMATING EXECUTION OF ORDER

S. CHAND AND SONS,

Daryaganj,
NEW DELHI – 110 002.

July 18,1995

The Manager,
Saravana Book House,
University Campus, Kalapet,
Pondicherry – 605 014
Sir,
While thanking you for your order of July 10, we are to inform you that all the
titles ordered by you have been sent to you today by passenger train carefully packed. We
enclose a copy of our invoice for Rs.15,550.

The documents have been sent to you through the Vijaya Bank, University Campus
Branch, Pondicherry. Please honour the bill on presentation.

We solicit your further orders and assure you of our very best attention.

Yours faithfully,
J.J. Agarwal
Sales Manager

LETTER INTIMATING INABILITY TO EXECUTE ORDER

EAGLE FLASKS LTD.,

Mount Road, MADRAS – 600 002.

April 4, 1995
The Manager
Hotel Airlines
Bangalore – 560 001.

Sir,
We thank you for your order of March 25 for our range of Flasks etc. We very
much regret our inability to attend to your order at present due to an indefinite strike on the
part of our employees. As such we are denying ourselves the pleasure of serving you for
the moment.

We do not know when the strike would end. You will hear from us as soon as
normalcy returns.
We sorry for the inconvenience that may be caused to you in this regard and look
forward to the pleasure of attending to your order in the near future.

Yours faithfully,
M. Josephine
Business Manager
LETTER REGRETTING INABILITY TO EXECUTE ORDER ON OLD TERMS
EAGLE FLASKS LTD.,
Mount Road,
MADRAS 600
002.

April 4, 1995.
The Manager
Hotel Airlines
Bangalore – 560 001.

Sir,
We thank you for your order of March 25 for our flasks of different sizes.

However, we are too sorry to inform you that we cannot accept your order at the
prices quoted to you two months back. The enclosed current price list on our full range of
flasks will show that the prices have gone up considerable now.

If the revised prices are acceptable to you, please confirm your order by return of
post and we shall be glad to dispatch the goods immediately.

Yours faithfully,
M. Josephine
Business Manager

Encl: One Price List on Eagle Flasks.

Letter Refusing To Execute Order On The Ground That The Customer
Is Financially Unsound (But Stating The Refusal In An Indirect Fashion).

EAGLE FLASKS LIMITED,

Mount Road, MADRAS – 600 002.

April 4, 1995
The Manager,
Hotel Airlines
Bangalore – 560
001. Sir,
We thank you for your order of March 25 for our flasks of different sizes.
We are constrained to state that we are unable to execute your order without
payment in advance. The enclosed Proformainvoice would show the cost of the goods
ordered by you and we will dispatch them as soon as we receive your cheque.
Please note that we have allowed you a special cash discount of 5 percent in the
Proformainvoice.
Yours faithfully,

M. Josephine
Business Manager
Encl: Proforma Invoice
LETTER ACKNOWLEDGING ORDER POINTING OUT A DIFFICULTY

TATA MCGRAW-HILL COMPANY LIMITED,

Publishers,
4/12, Asaf Ali
Road,
NEW DELHI – 110 002.

May 10, 1995

The Manager,
The Students Cooperative Stores
Ltd., University Campus,
Kalapet,
PONDICHERRY – 605 014.

Sir,
We thank you for your order of May 4 for our publications.
As we have temporarily run out of stock, we are not in a position to supply the title
‘Government and Business’ by D. Amarchand from ready stock. The copies of the title are
not available with our stockists also. However, we shall be dispatching the remaining
titles of your order in a couple of days.
We shall let you know as soon as we bring out the revised edition of the title
‘Government and Business’.
We are sorry that we have to put you to inconvenience on the above mentioned
title.

Yours faithfully,
K.C. Gupta
Business Manager

A LETTER THREATENING TO CANCEL THE ORDER

STUDENTS COOPERATIVE STORES LTD.,

R. Venkataraman Nagar, Kalapet,
PONDICHERRY – 605 014.

May 20, 1995

The Business Manager,
Motherland Book House,
Luz Church Road,
Mylapore, Madras – 600 014.

Sir,
This has reference to our order dated April 20, 1995 for University College text
books. We are sorry to find that so far you have not effected supply although you have
promised to do so within 7 days of the receipt of our order when we made an inquiry about
their availability.
 As the educational institutions will be reopening after the summer holidays shortly,
we cannot wait for the supply indefinitely. Please treat our order as cancelled, in case you
cannot affect immediate dispatch under intimation to us by telegram.

Hope you will appreciate our position in this regard.

Yours faithfully,

S. Sudalaimuthu
Secretary
A LETTER CANCELLING THE ORDER

STUDENTS COOPERATIVE STORES LTD.,

R. Venkatraman Nagar, Kalapet,
PONDICHERRY – 605 014.

May 27, 1995

The Business Manager,
Motherland Book House
Luz Church Road, Madras – 600 014.

Sir,
This has reference to our order dated April 20 and our subsequent reminder dated
May 20, 1995.
We are sorry to note that you have not given due attention to our order and have
chosen to remain silent. As we are not sure whether you will be able effect supply of the
books ordered by us which we need before the reopening of the educational institutions,
we are obliged to cancel our order.
Yours faithfully,

S. Sudalaimuthu
Secretary

LETTER FOLLOWING UP AN ORDER BY TELEGRAM

AKSHAYA DEPARTMENTAL STORE,
South Car Street, MADURAI – 625 021.

September 2, 1995
Messrs. Britannia Industries Ltd.,
Godown Street, MADRAS – 600 001.

Gentlemen,
This is to confirm our telegram sent to you today which ran as follows:

‘QUOTATIONS ACCEPTED-REQUEST 100 BOXES OF

MARIEGOLD. IMMEDIATE DELIVERY – AKSHAYA’
 Please book our order and kindly inform us when you would dispatch the goods.
For the amount of the invoice you may cover yourself by drawing on us at 30 days after
sight.

Yours faithfully
R. Meenakshisundaram
Manager

LETTER FOLLOWING UP A TELEGRAM CANCELLING THE ORDER

COLLEGE BOOK HOUSE,

Temple Square, THANJAVUR.

October 10, 1995.

The Business Manager,
Vikas Publishing House Private
Ltd., Industrial Area, Fashiabad
U.P.

Sir,
This has reference to our order dated September 1, 1995 for the supply of various
titles published by you and our telegram sent to you today which ran follows:

“ORDER FOR BOOKS CANCELLED. LETTER

FOLLOWS – COLLEGE BOOK HOUSE”.

We are sorry to note that you have chosen to ignore our order for the last 40 days.
This has resulted in loss of business to us besides customer complaints. We are not
sure whether you will be able to effect supply at all. In view of this inordinate delay we
are obliged to cancel our above cited order.
Yours faithfully,

R. Rajaran
Manager

Summary

Once the parties have agreed to the terms of business, the next stage that follows is
the placement of order. When giving an order, the wishes of the person placing the order
should be carefully stated to avoid further inquiry entailing loss of time and possible loss
of the market too.
When a trader has received an order, he is obliged to give an immediate reply. If
the order can be executed immediately no acknowledgement or confirmation of the order
is necessary. Other letters arising in connection with order are: Letters advising the
execution of orders, letters expressing inability to execute orders and letters cancelling the
orders already placed. The cancellation of orders should preferably be made by telegram.
The cancellation or placement of order by telegram should always be followed up by a
letter by way of confirmation. The text of the telegram should be repeated in the letter.

Self-examination Questions and Exercises

1. What points a letter of order should contain to make it clear, complete
and effective?
2. Enumerate the situations in which the sellers are compelled to
acknowledge orders first before executing them.
3. Explain the situations in which a seller is left with no alternative but to refuse
the order.
4. Draft a letter of order for certain seasonal goods you urgently require. State
specifically that the consignment received later than the date specified will
not be accepted.
5. You are a wholesale dealer in stationery and have received an order for 100
Bismi Pens. You do not have them in stock but can supply another variety
of pens which you are prepared to supply if the customer wants. Write a
letter inducing him to buy the ones you can supply.
6. Happy Homes, who have placed an order with Godrej Company Limited for
the supply of 5 Frostfree 165 lte. Refrigerators two days earlier, now cancel the
same since they have learnt in the meantime that the customer for whom these
refrigerators were ordered has gone insolvent. Godrej Company Limited
regrets the cancellation of another order and expresses the hope that another
order will follow. Drat both the letters.
 UNIT IV
Unit Structure:
Lesson 4.1 – Circular Letters
Lesson 4.2 - Sales Letters
Lesson 4.3 - Bank Correspondence

LESSON 4.1
CIRCULAR LETTERS

Learning Objectives
After reading this lesson you will be able to:
 Understand the nature of Circular Letters.
 Know the occasions when Circular Letters are sent out.
 Learn the techniques of writing Circular Letters
NATURE OF CIRCULAR LETTERS
Occasions may arise when some information or development in the organization
may have to be communicated simultaneously to several persons such as the customers,
dealers, shareholders etc., Instead of communicating the message through individually
drafted letters. One common letter may be drafted; multiple copies made out and sent to
all concerned. Therefore, a circular letter is one which is written to give a definite message
simultaneously to a number of interested persons, by preparing a number of copies of the
same. But a circular letter is not an advertisement. An advertisement through a medium
such as newspapers may be seen or may not be seen by the class of people for whom it is
meant. But a circular letter ensures that every person to whom it is mailed reads the
message and knows about the purpose for which it has been sent to him. However, a
circular suffers from one limitation. Being a common letter, it cannot maintain the ‘you’
attitude and take into consideration the special interest or the aptitude of a particular
customer.

A circular letter will have all the features of an ordinary business letter except the
inside address and the personalized salutation. The inside address may be inserted
separately. The signature also will only be a facsimile signature. However, if a circular
letter is to be addressed personally, adequate space should be left to fill in the name and
address of the persons to whom they are to be sent. If the personal address of the person is
typed out in the same colour and typeface of the letter, it will acquire the characteristic of a
letter individually prepared. The facsimile signature must be in a colour different from
that used for the printed message. The addressing of the envelope must not be done in ink
and it must always be typed out.
OCCASIONS FOR SENDING OUT CIRCULAR LETTERS
1. Establishment of a new business or extension or closing down of an existing
business.
2. Removal of a business to a new premises.
3. Sale and/or purchase of a business
4. Adding a new Department or closing an existing Department.
5. Appointment of a new manager and/or removal, resignation or retirement of the
old manager.
6. Changes of representatives or travelling salesmen.
7. Conversion of partnership into a company.
8. Taking a new partner and/or retirement, resignation or death of a partner.
9. Conversion of a proprietorship concern into a partnership or dissolution of
partnership.
10. Amalgamation with another business.
11. Opening of a new branch or closing down of an old branch.
12. Expansion of the existing premises.
13. Change of title
14. Changes in policy
15. Instructions to agents, local managers, travelers, etc., concerning changes in
prices, discounts, etc.
16. Manufacture of an entirely new product
17. Improvements of the old product.
18. Taking a new agency.
19. Release of an old agency.
20. Announcement of dividend declared and dividend warrant dispatched.
21. Announcement of clearance sales.
22. Granting of power of attorney.
The above is a detailed list of occasions on which the circular letters may be sent
out. However, the most common among them are only discussed in detail in the pages that
follow.
The lay-out of Circular Letters
While writing the circular letters the following points should be kept in mind:
1. The Purpose for which the circular letter is being written must be made clear.
2. The message must be given in clear terms for the benefit of the person to whom
the circular letter is sent.
3. The special purpose for which the circular letter is written must be borne in
mind and well brought out. For example, if the letter is to announce the
introduction of a new product, full details about its price, quality etc., should be
given.
4. It must express the hope that the customer would continue to give his full
cooperation and his patronage.
Suggested contents of a Circular Letter for Announcing the Shifting of Business
to New Premises
When a business announces the shifting of its business to new premises, the
customer hopes such premises would be in every respect better than the old one. In
particular, he hopes that the premises would be very spacious, easily accessible etc.
Therefore, the following points should be highlighted in a circular letter announcing the
shifting of business to new premises:
1. The reason for shifting. (Usually, convenience of customers or expansion of
business).
2. The exact address of the new premises and the change in the telephone number,
if any.
3. The date from which the business will be transacted from the new premises.
4. The transitional period during which the customers will not get prompt service.
5. The special advantages of the new premises such as it being more commodious
and within every reach of the customers, parking facilities, etc.
6. A request to the patrons to bear with the delay in the execution of the order due
to shifting.
7. An invitation to the customers to pay a visit to the new premises and see for
themselves its advantages.
Circular Letter Announcing the Establishment of a Business
A circular letter intimating the establishment of a new business should contain
information enumerated below:
1. The name and style of the business, its full address, and telephone number etc.
 2. The date of its establishment.
3. Reasons as to shy the new business is being established, what its novel features
will be and the way in which it proposes to serve the customers.
4. The qualifications of the owner (s) to run the business, particularly in terms of
knowledge, experience of the trade and the capital available.
5. The quality and range of products offered ant the competitive prices charged.
6. Facilities offered to customers such as acceptance of all major credit cards,
special discounts allowed to mark the opening of the new business and the
period for which it is so allowed, air conditioned show room, car parking
facilities, door delivery, etc.
7. An invitation to the inaugural function and request for patronage.
8. Reference to the specimen signature of the proprietor or the chief executive.
Circular Letter Announcing Obtaining of an Agency
The contents of a circular letter announcing obtaining of an agency for a certain
line of products will be more or less similar to the one sent out in connection with the
establishment of a new business. Here, the person who has obtained an agency to sell
certain articles in a particular area, announces the fact to the dealers and sub-agents to
enlist their co-operation. He tells them about the range of goods that will be available,
their price, the promotional support available and the terms of business. He also highlights
his trade experience and capital at his disposal. He ends the letter sending samples and
publicity materials and soliciting a trial order.
Circular Letter Announcing the Admission of a Partner
The admission of a partner, since changes the constitution of the firm, the fact is
communicated to all concerned, and particularly, to the existing customers. A circular
letter announcing this change should include in it the following information in particular:
1. The name and address of the new partner, his qualifications, and financial
contribution, if any,
2. The date from which has been taken into partnership.
3. The reasons for taking a partner-his rich experience in the trade, technical
knowledge, the capital that he invests and his connection.
4. A reference to the specimen signature of the new partner.
5. The change in name of the organizations, if any.
6. An expression of thanks to the customers for their patronage in the past and a
request for its continuance in future.
 Circular Letter Announcing the Opening of a Branch
A circular letter announcing the opening of a branch should contain information on
the following matters:
1. Reasons which prompted the opening of the branch.
2. The exact address of the branch, its telephone numbers.
3. The date from which the branch will start functioning.
4. The name of the person who will be in charge of the branch and his credentials
to serve the customers.
5. A request to the customers to direct all their orders to the new branch to ensure
prompt service.
6. An expression of thanks to the customers for their patronage in the past and a
solicitation of their patronage in the future as well.
Now you may study carefully, the specimen circular letters given below and note
how far they fulfill the norms of a circular letters so far discussed in detail.
CIRCULAR LETTER ANNOUNCING THE ESTABLISHMENT OF A NEW
BUSINESS

Rajashree Agencies,
Lawrence Road,
CUDDALORE – 607 002.

Dear Sir / Madam: June 1, 1995

It gives us great pleasure to inform you that we have commenced business today as
distributors of PRITHIVI LPG Cylinders under the name and style of

‘RAJASHREE AGENCEIES’

At 30, Lawrence Road, Tiruppapuliyur, cuddalore 607 002. Our telephone number is
22222.

We have two decades of experience in this line of business at Pondicherry and this will
enable us to serve your needs efficiently.

Besides supplying you PRITHVI LPG cylinders we can also supply ISI Gas Stoves. We
also undertake servicing of Gas Stoves and exchanging of old ones for the new stoves of
your choice.

We will release new connections the same day on which you ask for it. The supply of
refills within two hours of booking in our specialty. Buying gas stoves from us is not
obligatory on your part.

We solicit your patronage and assure you of our very best service.

Yours truly,

S. Sivaranjani
Manager
CIRCULAR LETTER ANNOUNCING THE SHIFTING OF BUSINESS PREMISES

VIKASH JEWELLERS,
North Usman Road,
T. Nagar, MADRAS – 600 017.
April 4, 1995

Dear Customer,

For the last few years we were planning to shift our business to an area which would be
more convenient to our valued patrons whose number has increased to be great extent
during the last two years. Having completed the construction of our own premises last
week, we have planned to move it on coming April 10, 1995. Our new business premises
will be situated at:
333, Venkatanarayana Road,
T. Nagar, MADRAS – 600 017.

We intend to start operating from this new address from April 10 after suspending business
for a day on April 9, 1995 to enable shifting. We request you to put up with inconvenience
this may cause you for a day in meeting your requirements.

Our new premises is more commodious and is fully air-conditioned for your convenience.
Ample parking facility will be available for your vehicles. A full air-conditioned fast-food
parlor has been attached too.

Our new telephone numbers will be: 859984, 8599948, 8599933

We invite you to grace our opening ceremony with your presence and see for
yourself the facilities that have been created for your shopping comfort.

Yours faithfully,
N. Ashok
Kumar For
VikashJewellers
Managing Director

CIRCULAR LETTER ANNOUNCING THE ADMISSION OF A PARTNER

AKSHAYA PROVISONS STORE,

144, Bazaar Street, BANGALORE – 560 001.

August 1, 1995
Dear Sir, /Madam:

The expansion of our business and the opening of our branch at the Majestic Circle has
necessitated additional assistance and investment of capital. As such we have taken Mr. R.
Srivastsan our manager as our partner from 1 st August 1995, Mr. Srivatsan needs no
introduction to you for he has been with us for the last 15 years and has been largely
responsible for the growth of our business. Besides, he has brought in the additional
capital to enable the firm function efficiently.
Consequent upon the admission of Mr.R. Srivatsan as a partner, hereafter wards our legal
status will be that of a partnership fir,. However, we have decided not to change the name
and style of our business. Needless, to add that our policies too will remain unchanged
and customers will continue to receive the same attention.
We request you to take note of the specimen signature of Mr. R. Srivatsan given below:

Specimen Signature of Mr. R. Srivatsan

…………………..

We take this opportunity for placing on record our special thanks to all of our customers
without whose support and patronage we would not have grown in this business in this
city.

Yours truly,
S. Sendhil.

CIRCULAR LETTER ANNOUNCING THE DESPATCH OF DIVIDEND

WARRANT

UNIT TRUST OF INDIA

S.A. DAVE
Chairman
June 22, 1995

Dear Investor

We are pleased to enclose dividend warrant on your investment in Unit Scheme 64. 1994-
95 was a very difficult year from the point of view of funds management, but we have
been able to maintain the dividend or 26% on increased unit capital after the rights issue
this year. This dividend after taking into account 1:5 rights issue at Rs.14.80 made in
December, 1994, gives a yield of 17.35% per annum on July, 1994 sale price of Rs.16.50.

Booking of profits on equity is an integral part of income earned under Unit Scheme ’64.
Today US ’64 has an equity portfolio of 45% and this should hold a good promise for
income in future when the market prices rise.

This year, we saw a very large scale withdrawal of units by the corporate sector due to
liquidity crunch they are facing and complete withdrawal of tax benefits through Section
SOM of the Income Tax, we had excellent response, from individuals and sales to
individuals alone increased to more than Rs.1, 000 crores. Unit Capital at the end of June,
1995 is likely to be Rs.15, 300 crores as compared to Rs.12,020 crores at the end of June,
1994. The number of unit-holding accounts now exceed two crores.

There would be an attractive price offer in the first fortnight of July, to be followed up in
the second half of July, though may not be of same magnitude.
You repose your trust in us and we will endeavor our best to keep up the glorious
traditions of the scheme.
Yours sincerely,

S.A. DAVE
Summary
Circular Letters are meant to give a definite message simultaneously to a number of
persons. Occasions on which the circular letters are sent out include: establishment of new
business, obtaining of agency, shifting of business premises, admission of a partner,
declaration of dividend etc. Circular letter is not merely an advertisement. It will have all
the features of an ordinary business letter except the inside address. Even that can be
typed out individually to give a personal touch. The address on the envelope should not be
written in link and should always be typed out. The circular letter should not be crowded.
It may include some sales talk and should solicit patronage of the customers.

Self-examination Questions and Exercises

1. Explain the role of Circular Letters in an organization.

2. Bring out the difference between Circular Letters and Advertisements.
3. Admission of a partner has necessitated a change in the name of a firm. Draft a
circular letter to be written on this occasion and include in it all information
that such circulars are expected to carry.
4. Draft a circular letter announcing the closure of a Department in your business.
5. Your have decided to shift your show room to another locality in the town.
Draft a circular letter announcing this to your customers.
6. Draft a circular letter on behalf of Shivram Associates. N.S.C. Bose Road,
Pondicherry, the Sole Distributors for Bombay Dyeing Fabrics, drawing
attention of the retailers to the arrival of new stock and special discount and
concessions offered for the coming festival season.
7. A TO Z Stores, Pondicherry were forced to suspend business for two months
because of extensive renovation work undertaken at their premises. Draft a
circular letter from the stores to the customers announcing that regular business
will start from a particular day. Mention special features to attract customers
 LESSON 4.2
SALES LETTERS

Learning Objectives
After Reading this lesson you will
 Understand the nature and purpose of Sales Letters
 Learn the techniques of writing effective sales letters
 Appreciate the need for and importance of follow-up letters.
NATURE AND PURPOSE OF SALES LETTERS
A sales letter is completely different from a circular although both the types of
letters are created in large numbers meant for sending to large number of persons. The
purpose of writing and sending a circular letter is to ‘tell’. But a sales letter is sent not
only to ‘tell’ but also to ‘self’. It is an instrument of advertising and can also be called the
postal commercial travelling salesman. The sales letters are written on the belief anything
that can be sold, can be sold by mail also. Such mail order sales are generated mainly
through the use of sales letters.

You may remember with advantage the success story of Dewit Wallace, the
founder editor of the Reader’s Digest magazine in this context. When he wanted to start
the magazine in 1921 he was not sure about the reader’s support. So, he personally typed
out letters to prospective people-teachers, professors, nurses, preachers, women’s club
members etc., describing the features of his magazine and offered a commitment ‘the
subscription could be cancelled and all money would refunded if the reader was not
satisfied’. There were no cancellations, no requests for money back. These letters from
the editor laid the foundation of the now internationally famous Reader’s Digest magazine
with a circulation of 27 million copies to 17 languages. Even today, the publishers of this
magazine bank heavily on selling by mail through the medium of effective sales letters and
their subsequent follow up.

Businessmen use the sales letters for diverse purposes such as (a) making direct
sales, (b) inviting inquiries, (c) preparing the ground for their salesmen. (d) Announcing
and testing of new products and services, (e) building up goodwill and (i) signing up new
dealers and for reinforcing the dealer’s efforts.
TECHNIQUES OF WRITING SALES LETTERS
Special techniques are called for in drafting a sale letter because it has to persuade
the reader and prepare him to buy a product which he had not planned to buy; having
prepared him to buy, make him buy. This is easily achieved by keeping in mind the
prospect and the product. The whole message in the sales letter must be reader-oriented
and the things should be viewed through the mind of the prospective buyer. ‘You’ attitude
is particularly important. The letter must tell the reader how the product is designed to
satisfy him in all possible ways. It must create a curiosity in the mind of the reader and
provide him adequate knowledge of the product as well. AIDA formula is to be
remembered in writing the sales letter. That is, it should be designed and written up to
attract the reader’s ATTENTION (A), arouse his INTEREST (I), create a DESIRE (D) and
induce him into ACTION (A) in that order. One paragraph each may be devoted for these
four functions in the sales letter. The techniques that may employed in this connection
include: a) beginning the sales letter with a pertinent question: (b) beginning the sales
letter with a split sentence. (c) beginning with a courteous command and, (d) beginning
the sales letter with a statement of significant fact.

Now, you may study the examples given below and use them in practice:
Use of Pertinent Questions
Do you want promotion? Are you satisfied with your present job and salary?
A Split Beginning
We have been in business for 50 years serving ….
A Courteous Command
Don’t read this if you are weak-hearted? Don’t read this if you have provided
enough for your dependents against your premature death.
‘A stitch in time saves the life of nine’.

EFFECTIVE OPENING SENTENCES FOR SALES LETTERS

A Sales letter should have an indirect opening and not a direct opening. It must be
remembered that it is written essentially to ‘tell’ about the product and persuade the reader
to buy. Therefore, the opening sentences must attract the attention and arouse the curiosity
to know what the seller has to offer. In fact, the opening sentence of a sales letter is
likened to a Star which attracts and guides. The following examples should tell you the
importance of this technique.
 (a) ‘It must seem early to be thinking of the Puja and Divali
Festivals’ (b) ‘1000 x 60 = Rs.160.007?’
(c) ‘The tiny acorn has become a sturdy oak. Now let’s add a few more inches to
the height’.
(d) ‘May be you are one of the countless readers of our magazine who have been
asking us…
The openings such as the above, will not only succeed in attracting the attention of
the reader but also will create a desire to know in detail what the seller has to offer to him.

EFFECTIVE CLOSING SENTENCES

In the closing paragraph, the prospect must be motivated into action by convincing
him of the merits of the product and assuring him that he stands to gain everything and
stands to lose nothing by acting on the letter.
(i) ‘You have nothing to lose – and perhaps much to gain by using the
enclosed self – addressed envelope which requires no postage’.
(ii) ‘Act now’ and you will never regret it’.
(iii) ‘The coupon below will bring you a copy – without obligation. Won’t you
sign and mail it today?
(iv) ‘But ….. this is very important ….. we must have your reply before Friday
the 22nd September 1995’.

FOLLOW-UP LETTERS
Even the best sales letter sent out to the prospect cannot be expected to make him
act after its receipt straight away. In fact, the first sales letter may not even be taken
seriously by the prospect. Therefore, it is necessary to follow it up with a series of sales
letters with fresh appeals, arguments and announcements. Each one in the series of follow
up letters should be treated as another sales letter, and not just a reminder or duplicate
copies of the first sales letter. The process of sending out the follow-up sales letters should
be continued till the writer is convinced that the prospect is not interested in the product.
In fact, the writer can even ask the prospect to communicate even his negative response
using the self-addressed envelope enclosed on which no postage need be paid.
The original sales letters – the first as well as two second follow-up ones-given
below may be studies by you with advantage. Illustration 1 is the first in the series which
opens with extracts of a letter received from the receiver of the gift subscription for
Reader’s Digest magazine. The second one is the follow up of the first sales letter. Even
though the second sales letter has succeeded in evoking the desired response from the
prospect, a detailed third one also had followed the second.
You are advised to particularly note the ‘YOU’ attitude maintained throughout in
these letters, and the style of opening and closing paragraphs.

Dear Subscriber:
All this time of the year, we get many letters like the one above from people who
received Digest subscriptions as a Puja and Divali gift last year.
I am sure that you will understand how difficult it is for us to know how to answer
such letters. For, with the festivals only a few weeks away, many subscribers have not yet
told us whether they wish to renew the subscriptions which they gave as presents last year.
Our experience is that few subscribers will allow their gifts to expire. But their generosity
is hardly something that we can take for granted while replying to their friends!
So, in order to avoid any possible misunderstanding or disappointments for your
friends. I am writing again to ask what you intend to do. To make it as easy as possible
for you to send us your instructions, I am also sending you a second copy of your personal
gift list and another set of savings stamps.
FABULOUS DISCOUNT PRICE OFFER
Remember, you are this year entitled to a sensational 35% discount on all your
subscriptions. You may renew your own all your gift subscriptions at a big Rs.119
discount on each. This discount represents the difference between the full price of a year’s
subscription and its cost to you. The gift is worth Rs.342.00 (plus Rs.22.00 for postage
and handling) but all it costs you is Rs.223.00 (plus Rs.22.00 for postage and handling).
And even this reduced amount is not payable until later.
Please take a moment now to look at your personal gift list which is enclosed. You
will find on it your own name, and the names of those to whom you gifted subscriptions
last year. To renew these for twelve more months, simply stick a Rs.119 Savings Stamp in
the space next to each name, and show us alongside how you would like us to put your
name on the Greetings Card with which we shall announce your gift.
And it is possible that, since last year, you may have thought of others to whom
you would like to gift a Reader’s Digest subscription – perhaps a friend you met on
holiday, your child’s new teacher, or a nice neighbor. We would like to make it as easy
and economical for you to add them to your list by giving you an opportunity to enter up to
two additional gift subscriptions at 35% less than the regular price – that is, only Rs.233
(plus Rs.22.00 for postage and handling) each.
To do this, simply write the additional names (not more than two, please) on your
Gift Service Order Form, affix a Rs.119 Savings Stamp next to each name, and return the
entire form to us in the enclosed postage paid envelope.
IMMEDIATE REPLY NECESSARY
But …. And this is very important …. We must have your reply before

Friday the 22nd September 1995

Because of your rather special association with us, we naturally want to give you
the best possible service. But time is running short, and we need your instructions now.
So please turn to your gift list right away while it is still in front of you, follow carefully
the few simple instructions, and return it to us today. You need pay nothing now. And
your handsome Diary for 1996 will come to you with our best wishes for a Happy Festival.

Yours sincerely,

Satish Kumar
For Reader’s Digest

P.S. If you have already sent us your Gift Order, please ignore this letter which would have
been posted before your instructions could be registered. But, you may, if you wish, use
the enclosed order form to order further new gift subscriptions.
 -

28th September 1995

Dear Subscriber,
We have made our message too big to overlook because we do not want you to
miss this very special opportunity to save Rs.119.00 on each of your Puja and Divali gifts.
Use the above Savings Stamps today and you are still in time (but only just) to take
advantage of a special offer which Reader’s Digest is making this year to RENEW ALL
GIFT SUBSCRIPTIONS – AND YOUR OWN – AT A FABULOUS DISCOUNT.
MOREOVER, you may this year order up to two additional gift subscriptions also
at this CUT-PRICE – each subscription for only Rs.223.00 (plus Rs.22.00 for postage and
handling), compared to the full price of Rs.342.00(plus postage and handling)
With the money you save on your Reader’s Digest gifts, you can buy extra presents
for your family AND get a handsome 1996 diary as a free gift to you from us.
In one minute now, you can do your present-buying from the comfort of your
home-and pay nothing until later.
What is more, everyone enjoys The Digest. And people who have acquired the
‘Digest habit’ during the past year, will find life very dull without it.
So please look at your gift list now-follow the few simple instructions and return it
to us in the enclosed, post-paid envelope. We shall announce your gift with a beautiful
Greetings Card, personalized with your name. We shall gift-wrap the first issue of your 12-
in-1 Digest gift, and post it to arrive during the Festive Season. All you do is sit back and
look forward to “thank you” letters and telephone calls from your friends, and of course,
savour the contents of the world’s most popular magazine, month after month.
 BUT WE MUST HAVE YOUR INSTRUCTIONS IMMEDIATELY, WITHOUT
FAIL.

Please post them today!

Yours sincerely,
Satish Kumar
for Reader’s Digest

P.S. If you have already sent us your Gift order, please ignore this letter, which
would
which would have been posted before your instructions could be registered.
But by all means use the privilege Order Form to order extra gifts for new friends.

Dear Friend,
I am delighted to learn that you take full advantage of our attractive Puja and Divali
offer, to make aRs.199 cash saving on Reader’s Digest annual subscriptions and also get a
Free 1996 Desk Diaryfor yourself.

This means that each subscription to The Digest ordered by you (see details, on the
reverse) will cost you only Rs.245 (plus the amount charged by the post office as money
order commission), compared to the normal annual subscription cost of Rs.364 (plus post
office commission). The next 12 issues of the magazine have been reserved against your
order, to be sent month after month. In case of gift orders, a specially designed card has
already been posted to your friend/relative announcing your generous gift.
You must now be eagerly looking forward to your handsome 1996 Desk Diary. To
ensure that you receive it safely, I have arranged to send the same by registered post. And
to enable you to remit the subscription amount without any botheration whatever, we have
made us of the post office’s convenient VPP service.
Thus, within the next week or so, you should expect a visit from your local
postman (or an intimation note left under the door) with the news that your packet has
arrived. Please accept the VPP by paying the subscription (plus the amount charged by the
post office as money order commission). And if you are unlikely to be at home when the
VPP reaches. Kindly leave necessary instructions with someone else in the house.
Although it normally takes 3 to 5 weeks for the VPP payment to reach us through
the postal network and be registered in our accounts, your money is in safe handsand
handled with care. Therefore, please allow a few weeks for the subscription/s to
commerce.

The post office will inform us directly about your acceptance of the VPP. As soon
as we hear from them, we will start service on your subscriptions by dispatching the first
copy of the Reader’s Digest immediately. Subsequent copies will be mailed, month after
month, for the balance eleven issues.
Thanking you and assuring you of our best services.
Yours sincerely,

Satish Kumar
For Reader’s
Digest

P.S. Please preserve the wrapper in which your 1996 Diary arrives by VPP.
It constitutes a bonafide proof of payment. We can serve you much faster if, in any future
communication with us, you quote the VPP number and dated stamped on the wrapper.

Summary
Sales letters are written and sent out to prospective customers not only to sell but
also to tell. They are the postal commercial travelling salesmen. Mail order business
thrives much through the use of sales letters. The AIDA formula should be remembered
while drafting the sales letters.

Certain special techniques such as beginning the sales letter with a pertinent
question, with a split sentence, with a courteous command, with a statement of fact etc.,
are to be effectively employed in writing the sales letters.
 The opening and closing paragraphs in a sales letter must be written effectively.

One sales letter may not be enough to make the prospect to act. Follow
up sales letters are also necessary.

Self-examination Questions and Exercises

1. In what respects is a sales letter different from a letter of quotations?
2. How does a sales letter differ from a circular letter?
3. Explain the various elements in the layout of a sales letter.
4. Why is the opening of a sales letter likened to a star?
5. What are follow-up letters? Why are they written?
6. Write a sales letter to promote the sale of a new text book on
Business Communication System recently published by you.
7. Draft a sales letter soliciting subscription to your magazine along
which you are bringing out the Special Annual Number which is
priced at Rs.50 but offered free to the subscribers.