dialogue between two friends about starting a business
Answers
Explanation:
K: Well, as you know we sell all over the world so we're thinking in terms of a pretty large consignment, so I thought it might save time if I came straight to the man who makes the decisions.
I: Decisions.
K: Yes. You know delivery dates discounts special terms details like that.
I: Yes. Although I'm not sure there'd be any difference in price. You know our wholesale terms are fairly definite.
K: Fairly.
I: No. No. I mean they're all laid down.
K: You did say fairly definite.
I: Well, of course the price varies according to the number you order.
K: And we want over a hundred thousand.
I: I see.
K: If I'm not wrong, your price reduction stops at only ten thousand order. Then you lower it to seventy five rupees per umbrella. That's not cheap when you consider transport, customs duty and a whole variety of different taxes.
I: Oh, come Mr. Kamran. After all we do have the patent on my umbrella. And there is a huge demand for it. On a hundred thousand you could make a fortune.
K: That's all very well, Mr. Saleem, but you know as well as I do that there are many invisible, insurance, packaging, unexpected devaluation, strikes, all of which cost money. I'm running quite a risk.
I: We have our risk too.
K: Of course, I know you have but I do think a slight reduction would be in order. Come on let's say fifty rupees per umbrella.
I: Fifty Rs. You must be joking! Why that's less than the manufacturing price!
K: Really? Well, if you say so.
I: No it really is. I honestly don't see why we should go below seventy five Rs.
K: Well, you know we may not be able to place an order at that price.
I: Hum, that would be a pity. Well perhaps we'd better think it over and I'll consult one or two people. Shall we have lunch tomorrow?
K: Good idea. And I do hope it will come to something. It really will be a pity if it doesn't!