Pampas Leather Company and West Cost Apparel ( WCA)
Pampas' President: Roberta Gonzalez (Marcela)
Pampas' Marketing Director: Cynthia
WCA's President: Brad Schulz (Rudá)
WCA's Marketing Director: Nathalia
***** OPENING ****
Pampas' Executives went to Seatle to negotiate some points of the contract. WCA's Executives (Rudá and Nathalia) are in the class room waitingfor Pampas' Executive to arrive. Cynthia and Marcela enter the room.
[WCA]: Good morning. Nice to meet you. I'm Brad Schulz, WCA's President and this is Nathalia, our Marketing Director
[Pampa]: Good morning, I’m Roberta Gonzales and she’s my marketing director as well, (We all sit down).
[Pampa]: As you know, we are here to discuss several points of the contract. We have issuesconcerning Quality, Quantity, Payment, Delivery, Warranty...We don't wanna waste your time, so lets cut to the chase and start talking about the Quality issues. Shall we?
**** QUALITY ****
[WCA]: Yes, of course. Quality is one of our main concerns.
[Pampa]: Propose outsourcing for the Look model. Explain why
[WCA]: Disagree. Give reasons. Don't accept outsourcing.
[Pampa]: OK. Agree to notoutsource, but warn that it will increase cost by $40. Explain reason why it will be more expensive (hire more people, training, etc).
[WCA]: Understand the additional cost, but remind Pampa that they had quoted a different price and hadn't mentioned about outsourcing. Do not accept to pay $40 more, too expensive.
[Pampa]: Explain that even if Pampa bears the additional costs for training andhiring, WCA would still have to pay for the labor. The best they could do is reduce the additional cost to $20 to cover at least the direct labor.
[WCA]: Agree to pay $20 more for the Look model
**** QUANTITY ****
[Pampa Marce]: Ok. agree to $20 but require WCA to order more, at least 3000. Explain that if they have to bear all these costs, WCA would have to place a larger order. Ask WCAto buy more of the clubman model.
[WCA - Ruda]: Our first order is already too large for launching a new collection. We are buying 500 Clubman, 1000 nightrider, and 800 look. We are sure that Nightrider and the Look will sell well. However, we are not certain that we can sell large quantities of the clubman.
[WCA – Nat]: Yes, we think buying more of the clubman model would be too risky andexpensive. Americans are very price conscious at the present, due to the current economy situation.
[Pampa]: Ask WCA to buy at least 500 more nightrider.
[WCA]: Too much. offer 250 more.
[Pampa]: 400 more.
[WCA]: 300 and not a single one more.
[Pampa]: ok. 300 more of the nightriders and 200 more of Look. Total of 2800.
***** PAYMENT *****
[Pampa] About the payment, We willlike you to pay us inmediately, so the production can be even faster.
[WCA] I’m not sure about that, We could pay you 30% so you can start the production.
[Pampa]: 30%? I’l like to think about it, We would need at least 50%
[WCA ruda]:Ok, We will pay 50% firts but the prodution need to be faster and the remaining 50% one month after receiving the goods.
[Pampa marce]: I’m still not sureabout that, We have to pay as soon as the goods have been dispatched and that would be to difficult for us.
[WCA nat]: Well If you want to get an agreement business In US we do everything 50/50 so I don’t see why that should be a problem, we want to guaranty that we will have the product for sure an on time. And besides we are paying more and we order more I think the best should be 50[Pampa cinthya]: Ok, Sound like a good Idea to us as long as you pay the 50 % rigth away
[WCA ]: No problem, you will have your money.
**** DISCOUNT ****
[WCA nat ]: Since we are buying more then we intended to buy, we want a discount. You told me you will offer us introductory a discount for new customers on their first order.
[Pampa cinthya ]: Our policy allow us to give...
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