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A sale often begins when a company receives an inquiry from a potential customer. Most sellers typically reply with a sales proposal or quote or a proforma invoice. Unfortunately, companies too often respond to these inquiries without much thought, which can result in problems down the road, particularly if this inquiry represents a potential export sale.
Successful exporters have internal procedures in place to ensure they respond in a way that will result in a successful export transaction. (And that includes getting paid!)
Utilizing a Proforma Invoice
Your sales offer or export proforma invoice is a multi-purpose document that affects many departments within your company. It sets the stage for several steps of the international sales process by providing company information, product descriptions, pricing, payment, and shipment and delivery terms. It also defines the responsibilities of the buyer, seller, carrier, forwarder and bank. In addition, the buyer often uses the sales offer to secure foreign exchange and an import license.
In international business, communications can always become a problem, but communication is also the solution. Your sales offer or performa invoice should include simple and clear information about your offer's details. For more details about the proforma invoice, check out the article, How Does the Proforma Invoice Fit in the Sales Process?
Responding to an Export Sales Inquiry
Before you respond to sales inquiry, following these 15 steps can help ensure a success outcome of your export sale:
Step 1
Study and understand the details of the inquiry to anticipate and provide exactly what is requested and needed.
Step 2
Conduct due diligence to screen whether or not the inquiry is coming from a company or organization on any of the restricted parties lists, and make sure it is a bona fide potential customer who is financially capable of purchasing your product(s).
Step 3
Thank the inquirer for requesting the RFQ or PFI.
Step 4
Provide a positive statement about your company, the quality of your products and services, and your reliability as a preferred supplier to your existing customers.
Step 5
Respond as quickly as possible to the inquiry. If you need time to generate technical information from your engineering, design or production department, then respond immediately that the RFQ or PFI will be forthcoming shortly based on input from your technical or production staff.
Step 6
Inform the buyer of the type(s) and quantities of goods to be sent, their value, and important specifications such as weight, dimensions and similar details.
Step 7
Do not use idioms or shop talk that is not readily understood by people outside your industry. Keep in mind that people unfamiliar with technical jargon such as freight forwarders, carriers and bankers might not understand or misinterpret what you are talking about. For a humerous take on this, check out Roy Becker's article, Consistency Is Key for Getting Paid Under a Letter of Credit.
Step 8
Provide sufficient information and details in your proposal to serve all parties who may be involved in using information for their portion of the overall international transaction and process. This refers to the purchasing department of your potential customer, the technical department, banker, freight forwarder, government officials (export/import customs officers, etc.) and carrier personnel.
Step 9
Create your offer in such a manner that you position your company in the most advantageous negotiating situation possible.
Step 10
Provide information that helps your overseas customer open a Letter of Credit using Incoterms 2010 to your advantage. Provide adequate lead times and sufficient product or service details.
Step 11
Clearly state any time constraints of your offer. You may wish to use a statement such as: “The price and terms of this offer are valid for 60 days from the date of this proposal.”
A statement that I used based on many years of experience is: “The product(s) based on this proposal are available for shipment 60 days from receipt and acknowledgement of your order.” Of course, the actual number of days depends on your business and industry.
Step 12
List all additional costs included in the quote separate from the cost of the product. For example, ocean packaging, handling fees, consular fees, inland freight, ocean/air freight, insurance, fuel surcharge, document preparation, and other charges. Do not combine these separate charges into one catch-all price category. If you do, you may price yourself out of the market or handicap your negotiating position.
Step 13
For compliance purposes include the desintation control statement: “These commodities, technology or software were exported from the United States in accordance with the Export Administration Regulations. Diversion contrary to U.S. law prohibited.” (If your products are covered by U.S. Department of State regulations, you will need to use a different compliance statement on your documents.)
Step 14
Personally sign and use your appropriate title in order to authenticate your offer.
Step 15
If you email the sales proposal or proforma invoice to your potential customer, decide whether a hard copy original on your letterhead is needed. If yes, send it by airmail promptly.
| Product Model | Inside Diameter | Outside Diameter | Thickness |
| NUTR309X/3AS NTN | 45 | 100 | 32 |
| NUTR210X/3AS NTN | 50 | 90 | 32 |