MONEY MATTERS.- Session 3.- Let's make business.

Telephone ringing…

-Receptionist: Alpha Plastics, good morning.

-Pablo Luján: Hello, can I speak to Helen Matthews, please?

-Receptionist: Can I ask who's calling?

-Pablo Luján: Pablo Luján from Mediterranean Greenhouses S.L. in Spain

-Receptionist: Just a moment, I'll put you through.

-Helen Mathews: Hello, Pablo? This is Helen Matthews. How can I help you?

-Pablo Luján: Hi Helen. It's about our order for specialized plastic components. There have been some last minute changes in the specifications. I hope your manufacturing people haven't started making them yet!

-Helen Mathews: Well, I'll have to check it out. What kind of changes are we talking about?

-Pablo Luján: Our customer has decided that he wants his greenhouses with the WX168 plastic. He was interested in this special heat-resistant plastic from the beginning but he didn't know if we could find a supplier for that particular plastic.

-Helen Mathews: We can manufacture the WX168 plastic, that's no problem, but it's 3% more expensive that the one you ordered, the WT154.

-Pablo Luján: I know, my customer agrees with that.

-Helen Mathews: Are there any other changes in your order?

-Pablo Luján: No further changes but I have some questions about your quotation. It lists both qualities and prices for the items we have ordered, but it specifies no incoterms. I would appreciate it if you could include some additional information about this particular issue. I'm particularly interested in two of them, the FOB, flight on board, and the EXW, ex works.

-Helen Mathews: OK, let me have a look. We don't usually include the incoterms in our quotations. They're usually mentioned in the contract but I'll send the quotation back to you with the new information. No problem.

Anyway, I can tell you, if you like, the total amounts right now ….. for the number reference WS100 the FOB is included in the price so that the total amount still remains the same… that's $3.765 and for the number reference WS239 the FOB is not included….ahh….mmm...oh!… there seems to be a mistake here…mm…I can't see why we didn't include the FOB, sorry…ahh…the amount you have at the quotation is $2.808 plus the FBO….that should be $2.993 (pause) Listen Pablo, I apologise for the mistake I need to have a look at the quotation again carefully and I'll send it back to you as soon as possible with the new product change, and of course, including the incoterms.

-Pablo Luján: All right Helen, I thought there had to be some kind of mistake. Please, make sure you also include the EXW. I expected us to work under this condition.

-Helen Mathews: Sure and my apologies again, Pablo. I'll email you with the new quotation, OK?

-Pablo Luján: OK. Thank you.