We have discussed with our manager regarding to the project of AS-20 and would like to inform you that we could not accept your target price at US$8.00/set. Since we have rechecked our cost and found we would get much lost with that prices.
We have rechecked and would like to advise you our best prices at US$8.50/set for AS-20, which actually, this is just our cost and we still have no any margin on that.
Last but not least, we would like to discuss with you since our last meeting with Mr. Suttichai, we have discussed regarding to the sales on local market. And you have told Mr. Suttichai about the 7% royalty fee. We have come back and go into detail study and found even you accept our prices at US$8.50/set, we still have to ask for your kind assistance to refrain the Royalty fee. As that 7% will be our small margin, which we could share this amount for the lost on Export prices to you.
We do realize that this offer may seem to be high in your idea. But after I come back from you and have a detail study by myself and found the cost is much higher than your target prices and we really get loss on that. You will understand if you see our cost.
In this regard, we are thinking that it will be more easier for both of us to start our business relashipment with the PVC Hose. As we have a strong belief in our pricing as well as the quality control.