From: LE KY HUONG, Julien [mailto:j

From: LE KY HUONG, Julien [mailto:[e-mail]]
Sent: Wednesday, February 29, 2012 1:42 PM
To: Pat NutritionSc Co., Ltd.
Subject: RE: Selling price of Vanilla beans to CRG customer

Dear Pat,

Thanks a lot for this straight forward email. I like that.

Concerning the vanilla bean situation, let me explain some more, as I realize that you were not part of our latest negotiations.

Our selling price to Nutrition for VG250 is EUR 18.00/pack.
What we decided during the negotiation was to take a 1/45 ratio between EUR and THB. It make the price to Nutrition at THB 810.00/pack.
Now, you need to add the net margin (5%), custom clearance fees (5%), import duties (30%) and storage cost (0.5%) into consideration. To this, you also must add the delivery fee, which is a minimum of THB 80.00 per product (this cost decreases according to the number of products ordered).

The total for this calculation is a selling price at 1,218 THB. Again, this calculation is based on a 1 to 45 ratio for EUR Vs THB, and the delivery fees are not taking into account the number of goods sold.
As CRG is always ordering 4 packs per store, it means you make THB 320.00 per order, and I assume it is more than sufficient, especially when the delivery person is not delivering just CRG, but also some other customers.

Now, if I want to be more accurate, as for the selling price as for the number of goods sold, I need to take the average rate for the last year (1 EUR = 42 THB) + number of goods sold (as they buy more than 40 products per month, so it means the delivery fee should drop to EUR 40.00/unit), and the result of my calculation is THB 1,142.18/pack.
Your current selling price to the customer is THB 1,510.00/pack for this customer, and it goes up to THB 1,700.00. So according to my calculation, your actual margin for 2011 was up to THB 517.00/pack MORE than what it should be. Meaning that you have been making more money selling our products in 2011 than we did.
I don’t want to come back on what happened before. I just want to explain that your margin is actually way to high for us to be competitive, so this is the reason why we need to “normalize” this. Please note that we are not discussing the other products here. But it’s only that the vanilla bean battle is a battle that we cannot afford to lose.

Please find enclosed the supporting document for all my calculations, as discussed with K. Nui and K. Ek last August.
Again, I understand it’s a complex matter, so I am making myself available so we can have a face to café discussion about it next week, whenever you want.

Best regards,

Julien

Results (English) 2:

From: LE KY hương, Julien [mailto: [e-mail]]
Sent: Wednesday, February 29, 2012 1:42 PM
To: Pat NutritionSc Co., Ltd.
Subject: RE: Selling Price of Vanilla beans to CRG customer Dear. Pat, Thanks a Lot for Straight Forward this email. I like that. Concerning the vanilla Bean situation, let me Explain Some More, As I Realize that You were not Part of our latest negotiations. Our selling Price to Nutrition for VG250 is EUR six p.m. / Pack. What we decided during the negotiation was to. take a 1/45 ratio between EUR and THB. Make It to the Nutrition at THB 810.00 Price / Pack. Now, You Need to Add the net margin (5%), Custom clearance fees (5%), Import Duties (30%) and Storage cost (0.5%) into consideration. To this, You must also Add the Delivery Fee, which is a Minimum of THB 80.00 per product (this cost decreases according to the Number of ordered products). The total for this Calculation is selling a Price at THB 1,218. Again, this Calculation is based on a 1 to 45 ratio for EUR Vs THB, and the Delivery fees are not taking into Account the Number of Goods SOLD. As CRG is always Ordering 4 packs per Store, means You Make THB 320.00 per Order. , and I assume it is More than sufficient, especially when the Delivery person is not delivering just CRG, but also Some Other customers. Now, if I Want to be More Accurate, As for the selling Price As for the Number of Goods SOLD,. I need to take the average rate for the last year (1 EUR = 42 THB) + number of goods sold (as they buy more than 40 products per month, so it means the delivery fee should drop to EUR 40.00 / unit), and. Calculation is the Result of My 1142.18 THB / Pack. Your current selling to the customer is THB 1,510.00 Price / Pack for this customer, and it goes up to THB 1,700.00. So according to my calculation, your actual margin for 2011 was up to THB 517.00 / pack MORE than what it should be. Meaning that You have been selling our products Making More Money in 2011 than we did. I do not Want to Come Back on What happened before. I just want to explain that your margin is actually way to high for us to be competitive, so this is the reason why we need to "normalize" this. Please note that we are not discussing the other products here. But it's only that the vanilla Bean Battle is a Battle that we Can not afford to Lose. Please Find enclosed the Supporting Document for all My calculations, As discussed with K. Nui and K. Ek last August. Again, I Understand it's a Complex Matter. , so I Making Myself Available AM Can so we have a Face to it next week About Café discussion, Whenever You Want. Best regards, Julien.

Results (English) 3:

From: LE, KY HUONG Julien [mailto: [e-mail]]
Sent:,, Wednesday February 29 2012 1: 42 PM
To: Pat NutritionSc Co.,. Ltd.
Subject: RE: Selling price of Vanilla beans to CRG customer



Thanks Pat Dear, a lot for this straight forward, email. I like that.

Concerning the vanilla bean situation let me, explain some more as I, realize that you were not part of our. Latest negotiations.

.Our selling price to Nutrition for VG250 is EUR 18.00 / pack.
What we decided during the negotiation was to take a 1 / 45 ratio. Between EUR and THB. It make the price to Nutrition at THB 810.00 / pack.
Now you need, to add the net margin (5%), custom. Clearance fees (5%), import duties (30%) and storage cost (0.5%) into consideration. To this you also, must add the delivery. Fee.Which is a minimum of THB 80.00 per product (this cost decreases according to the number of products ordered).

The total. For this calculation is a selling price, at 1 218 THB. Again this calculation, is based on a 1 to 45 ratio for EUR, Vs THB. And the delivery fees are not taking into account the number of goods sold.
As CRG is always ordering 4 packs, per store. It means you make THB 320.