Determine the product if purchased from the named suppliers

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Reference no: EM133532597

Assignment:

Based upon what you have learned about your suppliers in item 4 above, conduct further research to determine the likely cost of the product if purchased from the named suppliers 1)Herringbone & Sui, 2) Modna Hiša Marjan Fortuna and 3) Bertoncelj Suits.

If the cost of the product cannot be found in the market, the management team must research and identify a retail or wholesale price that the product Mens Suits import from Slovenia currently sells for in the Canadian market. You would then work backwards, deducting the initial estimated costs associated with bringing the product into the market as well as the normal profit margins that would have been added on by importers, wholesalers and/or retailers. This will give you a product cost somewhat realistic to what you could presume to have paid if you purchased direct. An import costing template has been provided as a guide to cost estimation. NOTE: These costs can be revised in subsequent assignments as more information regarding the importation of the product is obtained.

The price the management team will pay for the product in the target geographic market will require some negotiation. The management team must explain the strategy they would use to negotiate their purchase price. Consideration should be given and explained regarding all of the issues that may require negotiation. Be sure these points are specific to your product and industry and NOT just 'generic' in nature.

In addition, the team must explain in detail the method they will use to be assured they have received the goods per specifications on the PO that will be issued, before payment is authorized.

Reference no: EM133532597

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