Dear Mr. Herve,
Thank you for your reply and explanation.
However, we would like to ask for your further explanation on how you calculated Nutrition price and customer price. We are a bit confused on the way you calculated both prices. For which, we quoted your E-mail dated November 25, 2005 as you explained the following.
"NUTRITION price
Customer price not including customs clearing but including distribution
Explanation: During our discussions we have agreed that you need to get a 10 % net income when importing, storing and distributing our products. Therefore, I have calculated on each product a 15 % gross margin of which 5 % are destinated to cover importation, storing and distributing costs, leaving at the end 10 % net for your company."
Then, we understand that if we calculate Nutrition price by 15% gross margin, the result should be customer price. Is that right? For example,
- You quoted us the Nutrition price of Natural Vanilla Extract Ref. 119T at CIF Bangkok by airfreight EUR 32.00/kg, so we calculated it with 15% gross margin and got EUR 32.00/kg x 15% = EUR 4.80 + EUR 32.00 = EUR 36.80/kg. The result we got is not the same as you got and it is not equal to customer price as you quoted at CIF Bangkok by airfreight EUR 36.76/kg.
Could you please confirm whether our calculation is correct or not? Is it the same way as you calculated the prices to us? Why don't we get the same as yours? Please kindly give us clearer understanding.
In addition, we would like to confirm you whether the customer price including import duty should be the final price that we offer to our customer and you didn't leave any room to us for adding up more margin, right? Please kindly confirm us.
Besides that, we would like to know the prices of both by airfreight and seafreight at minimum 100kg and 500kg respectively are the average prices or not. In case, we would like to order more quantity than minimum quantity that you quoted to us, could you please advise what the price should be? For this case, we have got the following enquiries from our customer, and would like to have your offer and suggestion by return.
- 200kg and 500kg of Natural Cocoa Flavour Ref. 95170G by airfreight
- 200kg and 500kg of Chocolate Flavour Ref. 95309F by airfreight.
We understand that if we order more, the price should be lower down. Please kindly advise what the prices of above mentioned enquiries should be. Would you possibly offer us the prices by the range of purchased volumes?
In regards with the 15% margin that you gave us, you leave us 5% to cover importation, storing and distributing costs, and 10% net for your company. We have to check out whether 5% will cover all expenses that we have to pay when importing the products into Thailand or not. Will revert to you for further negotiation.
Await for your reply by return.
Thanks & Best regards,
Dear Mr. Herve,
Thank you for your reply and explanation.
However, we would like to ask for your further explanation on how you calculated Nutrition price and customer price. We are a bit confused on the way you calculated both prices. For which, we quoted your E-mail dated November 25, 2005 as you explained the following.
"NUTRITION price
Customer price not including customs clearing but including distribution
Explanation: During our discussions we have agreed that you need to get a 10 % net income when importing, storing and distributing our products. Therefore, I have calculated on each product a 15 % gross margin of which 5 % are destinated to cover importation, storing and distributing costs, leaving at the end 10 % net for your company."
Then, we understand that if we calculate Nutrition price by 15% gross margin, the result should be customer price. Is that right? For example,
- You quoted us the Nutrition price of Natural Vanilla Extract Ref. 119T at CIF Bangkok by airfreight EUR 32.00/kg, so we calculated it with 15% gross margin and got EUR 32.00/kg x 15% = EUR 4.80 + EUR 32.00 = EUR 36.80/kg. The result we got is not the same as you got and it is not equal to customer price as you quoted at CIF Bangkok by airfreight EUR 36.76/kg.
Could you please confirm whether our calculation is correct or not? Is it the same way as you calculated the prices to us? Why don't we get the same as yours? Please kindly give us clearer understanding.
In addition, we would like to confirm you whether the customer price including import duty should be the final price that we offer to our customer and you didn't leave any room to us for adding up more margin, right? Please kindly confirm us.
Besides that, we would like to know the prices of both by airfreight and seafreight at minimum 100kg and 500kg respectively are the average prices or not. In case, we would like to order more quantity than minimum quantity that you quoted to us, could you please advise what the price should be? For this case, we have got the following enquiries from our customer, and would like to have your offer and suggestion by return.
- 200kg and 500kg of Natural Cocoa Flavour Ref. 95170G by airfreight
- 200kg and 500kg of Chocolate Flavour Ref. 95309F by airfreight.
We understand that if we order more, the price should be lower down. Please kindly advise what the prices of above mentioned enquiries should be. Would you possibly offer us the prices by the range of purchased volumes?
In regards with the 15% margin that you gave us, you leave us 5% to cover importation, storing and distributing costs, and 10% net for your company. We have to check out whether 5% will cover all expenses that we have to pay when importing the products into Thailand or not. Will revert to you for further negotiation.
Await for your reply by return.
Thanks & Best regards,
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