Saturday, April 06, 2013 2:04:02 PM
Fish Negotiations
I wonder how price negotiations are carried out in the vertically integrated SIAF?
Here's a regular meeting at Fish Farm 1 (FJD)
Participants
TRW = Triway Industries 75% owner of FJD
JVP = Joint Venture Partner 25% owner of FJD
CA = Capital Award (consulting, marketing)
WC1 = Wholesale Center 1
CA "Okay JVP, I'll give you 1X RMB per kilo for your fish"
JVP "What!!? That's last years level. Don't you read the newspapers?? prices are almost 1.2X right now!! We will not accept anything below 1.19X RMB"
WC1 "Hold on just one minute, 1.19X per kilo!!! I have customers to take care of. Restaurants will strangle me after CA put on his margins, I just opened my shop for heavens sake!! Can't raise my prices after one week, that's suicide and you all know it!!"
TRW "Outrageous!! CA, you just want to raise your margins so you can brag at SIAF headquarters!!"
CA "Hmm, is that fish fresh in the basket?"
JVP "Now, that's too much! I will show you just how fresh it is!!!"
I wonder how price negotiations are carried out in the vertically integrated SIAF?
Here's a regular meeting at Fish Farm 1 (FJD)
Participants
TRW = Triway Industries 75% owner of FJD
JVP = Joint Venture Partner 25% owner of FJD
CA = Capital Award (consulting, marketing)
WC1 = Wholesale Center 1
CA "Okay JVP, I'll give you 1X RMB per kilo for your fish"
JVP "What!!? That's last years level. Don't you read the newspapers?? prices are almost 1.2X right now!! We will not accept anything below 1.19X RMB"
WC1 "Hold on just one minute, 1.19X per kilo!!! I have customers to take care of. Restaurants will strangle me after CA put on his margins, I just opened my shop for heavens sake!! Can't raise my prices after one week, that's suicide and you all know it!!"
TRW "Outrageous!! CA, you just want to raise your margins so you can brag at SIAF headquarters!!"
CA "Hmm, is that fish fresh in the basket?"
JVP "Now, that's too much! I will show you just how fresh it is!!!"
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