Consignment

The document titled 'Consignment' is a letter that is used by a buyer company to propose a trial delivery of a product on consignment terms to a seller. The letter highlights the importance of establishing a market for the product before making firm orders. The letter begins with the account information of the buyer, including their first name, last name, and address. It is followed by the current date and a salutation addressing the recipient as 'dear sir/madam'.

 

The buyer introduces themselves as a company specializing in expertise in a particular country and mentions that they have received inquiries for the seller's product. They express that there are good prospects for the sale of the product but due to its unknown status in the market, they are hesitant to make purchases on their own account.

 

To overcome this hesitation, the buyer proposes that the seller sends them a trial delivery of the product on consignment terms. They assure the seller that once the market is established, they will place firm orders.

 

In terms of the consignment arrangement, the buyer states that they will provide quarterly/monthly accounts of sales and make payments to the seller after deducting expenses and commission at a rate to be agreed upon. They also mention their bankers, with whom the seller can verify their standing.

 

The buyer believes that their proposal offers good prospects and expresses hope that the seller will agree to the trial. The letter concludes with a closing and the buyer's account information, including their first name, last name, and job title.

How to use this document?

To use the 'Consignment' document effectively, follow these steps:

1. Enter the buyer's account information: Fill in the buyer's first name, last name, and address in the designated fields. This will ensure that the letter is properly addressed.

2. Specify the date: Enter the current date in the designated field. This will provide a reference point for the letter.

3. Address the recipient: Begin the letter with a salutation addressing the recipient as 'dear sir/madam'. This will establish a polite and professional tone.

4. Introduce the buyer: Clearly state that the buyer is a company specializing in expertise in a particular country. This will provide context for the proposal.

5. Mention received inquiries: Highlight that the buyer has received inquiries for the seller's product. This will indicate the potential demand.

6. Propose a trial delivery: Suggest that the seller sends a trial delivery of the product on consignment terms. Emphasize the need to establish a market before making firm orders.

7. Outline consignment terms: Explain that the buyer will provide quarterly/monthly accounts of sales and make payments after deducting expenses and commission. Specify that the rate of commission will be agreed upon.

8. Provide banking information: Mention the buyer's bankers and encourage the seller to verify the buyer's standing.

9. Express optimism and anticipation: Convey belief in the proposal's prospects and express hope that the seller will agree to the trial.

10. Close the letter: End the letter with a closing, such as 'yours sincerely', followed by the buyer's account information, including their first name, last name, and job title. This will provide a professional conclusion to the letter.