A contract to supply

B=Barbara P=Paul

B Paragon. Can I help you ?

P Hello, is that Barbara ?

B Yes, speaking.

P Hi, Barbara, this is Paul from A1 Flooring in London. I’m just calling to discuss the extension of our contract for next year. Is this a good moment for you ?

B Yes, as good as any, I guess. Let me just get a pen and paper so I can make some notes … Ok, so where have we got to ?

P Well, first the good news. The Klik laminate flooring has been going really well here – you’ll probably have noticed that from the order book in the last six months or so. Customers really love it : the feedback we’ve had has been excellent.

B That’s great.

P It is good. I have to say, I’m not so surprised – it’s an excellent product, very high quality and the price reflects that of course. Which brings me on to my next point. Now, I’m not asking for better commission – we’re ok on that – but what would really help is more seasonal discounting from your end. What I mean is, reductions that we could pass straight on to our customers. Generally, we run sales in January, spring and late summer and at the moment Paragon’s products are the only ones that don’t feature. I suppose you could say that gives them a certain exclusivity in the eyes of the customer, but at the same time …

B I can see the logic of what you’re saying, and I’ve no doubt it would help sales, but what you must understand is that it’s very difficult for us to have a policy with you that’s different from all our other customers. Let me think … what I could suggest is that we try and feed you more discounted stock when we are coming to the end of a particular product line. I can speak to the boss about that.

P Well, could you also mention to him the principle of seasonal discounts, because I think it would generate even more interest in the products.

B All right, I will … but I’m not too optimistic. Are there any other points ?

P Yes, there is one other problem, which is that when we place an order, it’s quite often the case that you don’t have exactly what we want in stock and you offer us a substitute instead. Let me give you an example: we want engineered wood flooring in a natural oak and you only have it in a stained oak. On the whole we try to be flexible, but it’s something which seems to be happening more and more – and what worries me.

B I do understand, Paul, and I apologise. It’s something which we are trying to solve. But it’s not really a problem of our own making. It’s a result of shortage in raw material and delays further up the supply chain. We do try to carry reserve stocks of all types of wood, but as you know it’s a sensitive product to transport and store and we often have to rely on what’s available from our suppliers at a given time. That’s just the nature of the product.

P Yes, I appreciate all that, but explaining it to our customers is another thing. Often they’re just not prepared to wait and if they can’t get what they want exactly when they want it, they’ll go elsewhere. In the end, that’s no good for either of us. Are you saying that the situation is unlikely to improve because if you are …