Episode 4 OFF TO A TRADE FAIR
S c e n e o n e
Paul Osman is leaving for the Trade Fair. He is talking to Tim Hasram at the airport.
Tim:I heard Jack had already despatched the bikes to Industria.
Paul:Right, if everything goes well they will be delivered in three days. Chris Mayor has arranged with Mr. Sindon to help me. He is a Commercial Attache at our Embassy. I hope he‘ll find us an agent in Industria.
Tim:Mr. Osman, I’ve been looking at the costing sheets in the car. How did you decide on the price of the bikes?
Paul:Well, it’s difficult to be precise at this stage. It really depends on how big the orders are - the bigger the order, the lower the unit cost of each bike. But Jack and I thought a price of about 600 utiles or 100 Industria pounds at the present rate of exchange, would be a safe estimate.
Tim:Hm... well, that will give you a profit margin of 10 percent. But what about the exchange rate? If the pound falls, you may have to raise your price or take out the exchange cover.
Paul:You’re right, of course. But we can deal with that later. The most important thing now is to sell. So, we quote a price of 600 utiles and take it from there.
Tim:By the way, I have two good news.
Paul:You’ve got me interested...
Tim:Well, the first thing is that three new retailers in Dabu have placed orders for the new bike.
Paul:(laughs). It was a good job, Tim! You’re an ace salesman!
Tim:That’s not all. Barratts have overordered from their manufacturers and are having trouble getting an overdraft.
Paul:How did you find this out?
Tim:Kamal heard it through the grapevine.
Paul:I see... are Barratts going bust?
Tim:No, but they are having to go round the retailers and ask for repayment of credit. The retailers aren’t too pleased. I’ve already had one of them on the phone asking if Jayal Motors can supply instead.
Paul:Well, well. This is good news. If this continues we are going to need that new assembly plant sooner than I thought.
T a n n o y: The 11.40 flight for Industria is boarding now. Gate No. 5.
Paul:Oh, that’s mine. Bye, Tim, and thanks for the lift.
Tim:Goodbye, Mr. Osman. Best of luck.
Ex. 1. Agree or disagree with the following statements. Correct them if necessary.
1. Paul is going to Dabu to take part in the conference. 2. The bikes are on their way to Industria and they will be delivered in a week. 3. Paul hopes for the help of a Commercial Attache in Industria named Chris Mayor. 4. Paul and Jack have already calculated the unit price of the bikes. 5. The final price of the bikes will depend on the demand - the larger the orders, the lower the unit cost. 6. At the present rate of exchange one Industria pound is worth 6 utiles. 7. At current prices Jayal Motors will make a 10 percent profit on their bikes. 8. If the Industria pound falls Jayal Motors will have to reduce the price of their bikes. 9. Jayal Motors have already received three export orders. 10. Barratts are going out of business because they are in financial difficulties.
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Ex. 2. Answer the following questions.
1. When will the bikes be despatched to the Trade Fair? 2. Where does Mr. Sindon work? Why does Paul want to meet him? 3. Who has prepared the costing sheet? 4. What must Jayal Motors take into account when deciding how much each bike will cost in Industria? Give at least four factors. 5. How much will the bikes cost in Industria? 6. What is the present exchange rate of utiles? 7. In what case will Jayal Motors have to raise the price of their bikes? 8. Are Jayal Motors trying to find new retailers on the home market? 9. Why are Barratts in financial difficulties? 10. What are they having to do?
S c e n e t w o
Paul is at the Trade Fair in Industria talking to potential customers. He meets Carl Sindon, who is the Commercial Attache at the Zuritanian Embassy in Industria. Carl introduces Mr. Fortesquiue who specializes in importing from Zuritania.
1st potential customer:Excuse me, when do you intend to put these bikes on the Industria market?
Paul: Well, as soon as possible. It depends on the demand.
2nd potential customer:100 Industria pounds... a competitive price... They seem quite suitable for our busy streets and their traffic problems.
1st potential customer: Are these bikes designed to cope with a lot of stopping and starting in city traffic?
Paul: Well sir, this particular model is a new one. It has been designed with city traffic in mind. We have another model more suitable to the open road, although the new model has a high performance all round...
Carl:Paul! Paul Osman?
Paul: Oh, excuse me... Yes, that’s right.
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Carl:Hello. I am Carl Cindon, from the Zuritanian Embassy.
Paul: Very pleased to meet you.
Carl:Listen, Chris phoned me at the Embassy. He asked me to find you a good import agent. I’d like to introduce Mr. Fortesquiue. He specializes in importing goods from Zuritania.
Paul: How do you do, Mr. Fortesquiue.
Fortesquiue:How do you do, Mr. Osman. Well, Mr. Sindon has already put me in the way of things. From your promotion brochures it looks as if you have an attractive and efficient product. Yes, there could be a market. Your prices are competitive. I’d be willing to help but Jayal Motors have to guarantee continuous production, maintained high quality, and adequate supply of spare parts and delivery dates must be kept.
Paul: Oh, yes, of course.
Fortesquiue:Look. I can’t do any more for the moment. I have to go to Rome for a couple of days. My assistant Eve Sorrel will contact you and you can discuss things in more detail.
Paul: Thank you, Mr. Fortesquiue. Have a good trip. Carl, it’s very good of you to go to all that trouble.
Carl:No bother at all. Remember, I am the Commercial Attache. It’s my job to encourage trade between Industria and Zuritania.
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