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You are Dave Sullivan, a senior sales executive of LaserLite, an American manufacturer and importer of LEDs (light emitting diodes) and other electronic components. You have arranged to meet Kim Bardy, the Purchasing Manager of Teknotronik, a European manufacturer of electronic components. Ms Bardy has informed you that she is interested in obtaining a quote for an order of blue, white, red and green LEDs.
Details Teknotronik have given you quantities of LEDs they require (shown in a table below) together with a schedule for delivery dates. The prices that you would be prepared to sell at are set out in another table below: You will need a minimum production time of 4-6 weeks before delivery. You would also prefer to make one delivery for the total amount with an invoice for payment at 30 days. However, this is negotiable.
Conduct the negotiation with Kim Bardy. Remember that you usually offer a gesture of goodwill to new and potentially interesting customers. This could be to give a greater price quantity discount than the one corresponding to an actual order. For instance on a single order above 30k for Green LEDs you might offer to sell them at 7 euros per unit instead of the listed price of 8 euros.
Quantities required Delivery schedule required
Blue 20, 000 urgent (10 k within 3 weeks)
White 30, 000 within 3 months (10k within 4 weeks)
Red 50, 000 urgent (total within 8 weeks)
Green 50, 000 urgent (total within 12 weeks)
Prices per LED (prices in euros, FOB)
Quantity
(0-1 k) (1-10 k) (10-30 k) (30 k +)
Blue 14 12 10 8
White 14 12 10 8
Red n. a. 1. 50 1. 0 1. 0
Green 14 12 10 8
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Purchasing Manager | | | A. Translate the terms in the table below paying attention to their contextual meaning. |