Chapter 85
The Ex-Husband's Revenge By Dragonsky Chapter 85
"In second place is the Westpraise Group, who control twenty-two percent of the sales channels, and in third is Uniqpeace Enterprises with fourteen percent... The remaining twenty percent is held by several small- to medium-sized distributors and agents..." Ariel explained eloquently as she hovered her cursor over the screen and clicked on several groups of data.
As a manufacturer, the Elegante Group requires distributors to handle wholesaling, promotions, and various other integration of resources before the products that they produce could finally reach the market. Distributors were therefore an essential link, and there were two possible sales routes for the Elegante Group.
The first was to cooperate with the three major distributors, but since those three major distributors were each other's competitors, the Elegante Group could only choose one of them for cooperation.
The second route was to cooperate with some small- and medium-sized distributors and agents. There were a great number of them, and they were a little unpredictable because they operated independently of each other. However, they were the main focus of the company's sales department.
While the first sales route could protect the company's interests comfortably, the second sales route enabled them to penetrate the market and gain more profit. Therefore, the two could coexist without any conflict.
"Our company has been cooperating with Westpraise Group for the past two years and the contract is about to expire. Westpraise Group is now asking for a ten percent commission to renew the contract, otherwise, they won't sign it... Does anyone have any opinions on this?" Ariel was a little sullen.
As far as she knew, someone new assumed the position of Westpraise Group's chairman just a couple of months ago, and that person was ruthlessly ambitious, as evidenced by their attempt to seek greater profit for their company at the cost of the manufacturers' profits.
It was the same for all of Westpraise Group's partners and not just the Elegante Group.
"Our profit is only about twenty percent in total, and that number is sure to decrease if we deduct employee wages and other miscellaneous operating expenses."
"Westpraise Group's demands for ten percent of the profit It's practically daylight
robbery!"
"Indeed! There are plenty of other distributors, and the way I see it, we could still choose to cooperate with Uniqpeace Enterprises..."
Several of the more senior figures in the company were not happy and proposed that the company got a new business partner. "It won't be successful."
"Both Uniqpeace Enterprises and the Westpraise Group are competitors. If we
cooperate with Uniqpeace even though we were previously cooperating with Westpraise, Uniqpeace might take the opportunity to make even bigger demands than Westpraise!" "Besides, Uniqpeace's share of sales channels is far less than that of Westpraise. If our proposed cooperation falls through, our actions will likely turn out penny-wise and pound-foolish..."
Some of the company executives expressed their objections and analyzed the pros and cons.
Iris rubbed her forehead as she listened to the myriad of different opinions. She could feel a headache coming on and felt a little worried about the entire situation.
If she accepted the Westpraise Group's request for higher commission, both her company and theirs might still be able to reduce the concession to about five percent through some negotiation. However, that will still be a huge blow to the company's interests.
On the contrary, if she chose to cooperate with Uniqpeace Enterprises, it was very likely that she would waste the company's time and resources, and what little amount she tried to save might end up turning into a bigger loss by the end of it. It was not a wise move either.
All in all, neither option was beneficial for the Elegante Group.
That was precisely the issue that bothered Iris the past couple of days. She and Ariel worked overtime to discuss many solutions, but none of their ideas enabled them to get the best of both worlds! Leon was at a loss. He did not understand a single thing even after listening to the discussion from the very beginning. In his opinion, both views were correct and made sense in their way.