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NEGOTIATING A NEW DEAL



MATTHEW: It's Oliver Jordan on the phone.

STEVE: What does he want?

MATTHEW: It's about the new price range.

STEVE: What does he want to know?

MATTHEW: He wants to know whether last year's price discounts still apply.

STEVE: Probably the same per quantity as last year's price list.

MATTHEW: And he'd like to know whether our delivery schedule, within 28 days, can be speeded up.

STEVE: I can't promise anything. We are actually trying to
speed up all delivery times and invoicing.

SECRETARY: Excuse me. It needs to be signed today.

MATTHEW: He also mentioned invoicing. He was wondering if we could extend the payment delay to sixty days instead of thirty.

STEVE: I doubt it. What's his turnover with us?

MATTHEW: About $ 50 000 last year.

STEVE: Well, he's not a big enough customer to justify changing payment dates. Anything else?

MATTHEW: No, I'd better tell him now. He's waiting on the phone.

STEVE: OK. Oh, and send him our kind regards.

MATTHEW: I will. Thanks.

 

 

Dialogue 6

Mark Boland is head of an Australian import agency. He is discussing an agency contract with an American, Clint Marsden. Marsden is President of a company producing photocopying machines.

 

MARSDEN: Before drawing up this agreement, I'd like to go over the contract terms once more, Mark.

BOLAND: I’ve no objection to that. Even when you take notes as we did, it's easy to miss something out.

MARSDEN: As I understand it, you'll be our agent for the whole of Australia. And you'll be handling our complete range of machines.

BOLAND: Agreed.

MARSDEN: Now the next point was... length of contract. It'll be three years, won't it?

BOLAND: Yes, and, er, renegotiable, provided we're both happy with the arrangement.

MARSDEN: I'm confident it'll work out all tight. Let's see, what was the next point we discussed? Ah yes, whether you wanted a sole and exclusive agency.

BOLAND: Uh-huh.

MARSDEN: You don't want that, do you? You'll be selling competing lines along with our product.

BOLAND: Yes. We agreed it won't really matter, as long as Nigel sales force do the job properly.

MARSDEN: I’m not worried about that. Your people are very professional, I know. What next? Commission'' Well, we fixed it at fifteen per cent (15%) on total sales. I believe

BOLAND: Yes, but may I remind you that I'll be a del credere agent. I receive an extra five per cent (5%) commission for that.

MARSDEN: Ah yes, you're bearing the risk if customers don't pay. I'd forgotten that.

BOLAND: I'm also responsible for invoicing customers and for credit control. I’ll be sending you copies of all invoices for your records.

MARSDEN: We must have those because we'll be sending you a statement every three months. Your commission we’ll be based on it. We'll settle up by transferring the money to your account in Sydney. The Bank of Australia and New Zealand. Right?

BOLAND: Mm, Victoria Street branch.

MARSDEN: The rest's fairly simple. Advertising, sales promotion - that'll be shared between us. Warehousing costs - we'll pay those, but you'll bear all office expenses. Last, but not least, after-sales service. That's your baby.

BOLAND: I promise you, Clint, we'll provide fast reliable servicing.

MARSDEN: Remember too, you've promised to keep adequate supplies of spare parts and accessories for the machines.

BOLAND: That's no problem provided you get the parts to me when I ask for them.

MARSDEN: You can count on us for that.

 

Ответьте на вопросы:

1. What terms of the contract are being discussed?

2. What kind of agent is Mark Boland going to be'? What are the advantages and disadvantages of it?

3. Who will be responsible for invoicing customers and credit control?

4. What will the commission be based on?

5. Who will pay for advertising, sales promotion, warehousing, office expenses?

6. How will after-sales service be organized?

 

 


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