Unit 14

SharonW

A: Mr. Wan, we've spoken before this matter, and I hope we can come to some agreement this time. As you know, Jackson Co. Ltd. would very much like to act as the agent of China Chemical Product Import and Export Company in the U.S. and America.

B: Yes, indeed. I have spoken to the relevant branches of our organization, and we are willing to appiont Jackkson as our sole agent for the U.S..

A: Excellent news. Once the agreement is signed, we'll be able to promote your products mor vigorously. Giving sole agency to us will also reduce the number of rivals, which is beneficail for business development. And, as you are aware, we have a broad customer base and deal with many retailers not only in the U.S. but all over America. So we feel that the agency agreement should cover America as well as U.S..

B:I see. But we also have a well-established customer base in America, and do't relly fell the need for an agent to cover Amercia on our behalf. Besides, we have many old customers in Canada and Brazil. If we sign up with you, we would undoubtedly lose these old and valued customers.

A:Okay. Well, let's bear that in mind. I would suggest that the duration of the agreement should be 3 years and the after that. If it proves satisfactory to both sides,  we can extend the agreement.

B: Sounds fine. You've clearly given this a lot of thought. What quantity do you propose to sell?

A: I would suggest 3000 tons in Year One, 4000 tons in Year Two and 5000 tons in Year Three.

B:Good. We must also clarify what kind of dyestuffs you will sell on our behalf. We can't just say dyestuffs. Tha's too general. What we mean is "DD" brand dyestuffs.

A: I'm disappointed that you are restricicting the types of dyestuffs we can sell as well as the geographical area we can cover. This will certainly affect our sales. By far the greater part of our sales are made abroad. In fact only 20%~25% of our sales are to U.S. retailers. I really think you should reconsider either the question of area, or the question of the type of dyestuffs we are allowed to sell.

B:Oh, I'm sorry. I obviously haven't made myself clear. You can certainly sell as many different types of dyestuffs as you like. W'd be delighted, of course. You can order the from us in usual way. You will, however, be required to sell on our behalf the types that you undertake to sell under the agency agreement.

A:I see. That would be fair enough. And, there is one more point we should discuss, and that is our commission. You know. We'll have to put in a lot of extra work and do a lot of advertising now we have the reponsibility of agency. So, I wounder if you could increase our commission by 2%.

B: I'm sorry. I don't think I can Increase the commission by2%. But all being well, I might be able to increase it by 1%. But 1% will have to be paid at the end of year when we see that the year's quota has been sold.

A: All right. I agree. I think we've covered most points, unless you have anything else to raise.

B: No, not that I can think of. Perhaps I could ask you to draw up the agreement.

A: Yes, of course. We'll get it signed tomorrow.

B:That'll be fine.