An Argentinian exporter is negotiating to sell into the US market.
It must reach a deal on the best possible terms while seeking to build
a long-term relationship with its distributor.
Background
The Pampas Leather Company is based in Buenos
Aires, Argentina. This well-established business
exports leather and fur jackets, as well as
accessories such as handbags, belts and wallets,
to world markets. It uses the best quality leather,
introduces creative designs in its collections,
has excellent quality control and a reliable
delivery service.
A major US distributor in Seattle, West Coast
Apparel (WCA), has contacted Pampas Leather
about marketing a range of Pampas's men's leather
jackets under the WCA brand name. WCA has a
chain of stores in all the large cities on the West
Coast of the US. WCA's President, Brad Schulz,
wants to put three models of the jackets on the market: the Clubman (the most expensive model),
the Nightrider and the Look.
It is now May. Pampas Leather has agreed to make
the jackets and have them ready for shipment to
Seattle early in November. This will not be easy,
as Pampas has to fulfil several large orders before
dealing with the WCA order.
Several points of the contract need to be negotiated.
Roberto Gonzalez of Pampas has flown to Seattle
to meet Brad Schulz. The Marketing Director of
each company will also be present at the meeting.
The purpose of the meeting is to make a deal
acceptable to both sides, which could be the basis
for a long-term relationship.
Writing
As the owner of either the Pampas
• the Pampas Leather team (Roberto Gonzalez
and his Marketing Director): Turn to page 138.
Leather Com pany or West Coast Apparel,
write an e-mail summarising the points
agreed during the negotiation. Indicate
any terms of the contract requiring further
discussion or clarification.