Hi Aom: We had our meeting on Friday and we found that your pricing on the 2 gram gloves was better that our pricing from China on 2 gram gloves only but that the cost of freight from Bangkok to Minneapolis was about 30% higher than the cost of freight from Ningbo, China to Minneapolis so there really was no savings for us.
The customer so far seems to want to stay with the 2.9 gram gloves because they seem to be more durable than the 2 gram gloves. You pricing on the 2.9 gram gloves for the 100 pack was 5% higher than the price from China and your pricing on the 2.9 gram gloves for the 20 pack was 9.6% higher than the price from China.
The way things look right now we would be better off having the gloves produced in China. We are also not quite ready to start ordering very large quantities yet so what we can do is let you know when we will be ready to start ordering in quantities of 10 million pieces per order so that we can see what you can do on price at that time. We think it will be at the end of 2015 before we are ready to roll this product out so we will touch base with you at that time to see if there is any possibility of the price moving to a point where it would be worth switching production to you facility in Bangkok. Please get back to us if you have any questions.