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sirop d'erable
H. Terms of Sale
The terms of sale tend to be negotiated when you have a sale, which in this case means when you have a wholesaler or business partner. There are a few different options with respect to this. Freight on Board affects the price, because FOB Seller means that the buyer will pay for the product to be delivered to the seller's location; FOB Buyer means that the seller is going to ship the product. FAS is "free alongside ship," which means that the seller's obligation is to get the goods to the ship (WCS, 2014). C&F means cost and freight, while CIF means "cost, insurance, freight." With these, the cost of the goods and freight are included in the price or the goods of goods, insurance and freight.
While obviously this is subject to negotiation, we are planning to ship to Europe, then distribute to wholesalers. So the cost is going to be FOB Buyer, and we will take care of getting the product to the wholesaler's warehouse. This allows us to have control over costs, and handle our own shipping to Europe. Either way, you price according to the service that is being provided.
I. Methods of Payment
There are a few different methods of payment. The first is cash in advance, which is not necessarily normal when doing business with large companies in developed countries. These are good for a first time dealing however, should we not want to expose ourselves to too much risk, dealing with a new customer Open accounts are more normal, where some sort of trade credit. This is probably what we will use after establishing the business relationship. We are not going to use consignment sales, relying on someone else's marketing skills for us to make money. So at present we want to build a relationship, starting with a cash sale and then...
Resource Requirements
This plan requires some resources. First, there will need to be staffing requirements. They will all be part-time, conducing this part of the business in addition to other duties, but it is expected that 2-3 FTEs will be required, in accounting, in legal, in marketing and in administration, to work on this…
References
WCS. (2014). FAS -- free alongside ship. World Class Shipping. Retrieved December 6, 2014 from http://www.worldclassshipping.com/incoterm_fas.html
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