Absent were: HA, KM, HS
The meeting was held in Branson Library on the NMSU campus between 4:30 and 5:30PM. Its purpose was to clarify the next steps in finalizing arrangements for sale of imported Chinese ceramic tiles from Shanghai, Canton, Fujian or Fuzhou to New Mexico's "Casa Mexicana" located in Las Cruces. This subject had been partially discussed at the Transnational meeting of January 14, 2000 (See Item V).
Further information was considered vital by ZY who stipulated that suppliers such as G.S., a major Chinese tile manufacturer in Fujian, needed to know (1) the quantity of tiles to be purchased and the frequency of purchase; (2) the types and designs of tiles ordered; and (3) the delivery deadlines and terms (CIF or FOB), among other factors, before a price quote could be made.
VS reminded ZY that he had approached his uncle and cousin who own and manage Casa Mexicana, and had determined that their cost requirements were in the vicinity of $ 6 to $8 per square meter, excluding shipping. ZY explained that it may be possible, assuming volume is adequate, to obtain a price-quote as low as $4 per square meter for most types of tile. Anything lower might be an impractical or unrealistic expectation, even for Mainland China. VS agreed to contact his uncle to determine probable volume and frequency of a potential order from China. Quantifying the order is crucial, all agreed.
AM mentioned that cost of tile may be a function of shape, size and design, in addition to the logistical and shipping factors. Samples could be provided by ZY, it was noted, assuming that a serious degree of interest was forthcoming from Casa Mexicana. ZY expressed reluctance to arrange for shipment of tile samples if only marginal interest was demonstrated by Casa Mexicana, since he had already spent more than $100 on samples related to other I/E ventures which did not materialize.
To generate strong interest, AM and ZY agreed that a temporary web-site, using photos from the G.S. site in Fujian could be posted on-line for use during a presentation by VS, AM and ZY to two or three decision-makers at Casa Mexicana.
The Transnational CASA MEXICANA TILE PROMOTION SITE LINK (under construction) is provided at the conclusion of these minutes.
If considerable enthusiasm is generated, due to the low cost of tile in China to be negotiated by ZY, then a trip to China could be made, at Casa Mexicana's expense, for purposes of working out a long term supply arrangement at the best possible terms. ZY would be able to obtain El Paso to Shanghai tickets at a significant discount (with the discounted price being $800 RT per person) and possibly one free night at a 5-star hotel in Shanghai or Canton through his former corporation , New Asia Group. It was concluded that Casa Mexicana's purchasing-manager, MP, and ZY would most likely be selected to travel, if these plans matrialized.
It was further suggested by ZY that VS spend additional time at Casa Mexicana in order to gather "intelligence" on their current needs, supply sources, and sales figures. VS pointed out that he would do his best to gather the requisite information, but that Casa Mexicana personnel had already travelled to China and had found an unsatisfactory supplier who (unethically) raised prices after the intial order. ZY explained that he could probably prevent this pattern from recurring through astute negotiation in Mandarin. Thailand and Korea had apparently supplied Casa Mexicana in the past, it was noted, with varying degrees of success.
ZY suggested that TWO suppliers could be arranged in China to help avoid the same price-raising scenario which had discouraged Casa Mexicana in the past from using Chinese sources.
Attention then focused on how Transnational would receive its commission or fee for services rendered. ZY provided the following methods, used by other firms, involved in import-export activity:
1. Transnational's fee could be predicated on a negotiated percentage of Casa Mexicana's profits on the material imported;
2. The fee could be predicated on a percentage of Casa Mexicana's order;
3. The fee could be "transaction-specific", or repetitive, payable at time of repeat orders;
4. The Chinese manufacturer could pay ZY the fee for locating a client. This fee could be (a) a one-time commission, or (b) an on-going percentage of the volume ordered over time on a repeat basis.
5. Any one of the above fee-arrangements eventually selected would have to be contractually formalized, AM pointed out, to ensure compliance.
The merits of each fee-structure were discussed. Option (1) above was clearly discarded as essentially unenforceable; the others were given various degrees of support by those present.
To protect Transnational, shipments of tile would be made through an intermediate address, not directly to Casa Mexicana, unless the terms of any contract negotiated guaranteed payment to Transnational under New Mexico law. These considerations must be further discussed and, if a high-volume deal is struck, legal assistance would be required to protect all parties.
E-Mail related to the above is appended to these minutes for easy reference.
ZY reiterated, in closing, that his services,for which Transnational would be earning its fee, would consist of:
1. Mandarin and Shanghai Dialect language support;
2. Settlement of Government Taxes and Customs Fees in China, plus negotiation of shipping arrangements out of Shanghai, Canton, Fujian or Fuzhou;
3. Facilitating negotiation of an excellent deal for Casa Mexicana due to his experienced understanding of Mainland Chinese Business Culture.
The meeting drew to a close toward 5:30PM with VS agreeing to obtain the required volumetric and sales-frequency data from his uncle or cousin at Casa Mexicana.
Link to Our CASA MEXICANA TILE PROMOTION SITE
Subject: Next TRANSNATIONAL MEETING DATE and TIME NEED TO BE CHOSEN
Date: Fri, 21 Jan 2000 13:50:54 MST
Dear Transnational Friends,
ZY has suggested that we get together in order to follow-up on ideas and plans that were produced at our January 14th meeting.
We are beginning to gather catalogs and other required materials for the TILE IMPORT-EXPORT initiative, and we've made progress on other concepts, too. But, costs need to be discussed in more detail.
[NOTE: The volcanic eruption in Guatemala may have delayed our ability to export the small order of computers anticipated for shipment in February.]
Otherwise, however, we have several good ideas to discuss. For example, KM has returned from Japan with some new thoughts.
WHEN and WHERE CAN WE MEET? Perhaps next week, in the evening, on campus (GUTHRIE LOUNGE, SECOND FLOOR)... We need to select a time and date.
Yours always, A M
Subject: Message to AM from VS
Date: Fri, 21 Jan 2000 23:41:04 GMT
I am in the BC computer lab at this time. ZY was here and we briefly discussed matters pertaining to Transnational. He will send me the online catalog of the tile manufacturer in China. It would be premature to meet today even tomorrow because I must first speak to my Uncle. If he is interested, we then will proceed with discussions concerning the tile exportation. My cousin in Guatemala has still not replied to any of my messages. Seems the e-mails are not getting through. I will be on campus for another hour. See you tonight at the all night lab. By then I will have a definitely know if my unlce is interested. Casa Mexicana is a million dollar operation, we may need to make a powerpoint presentation or some other form of presentation.
-------------- From AM to ZY
Subject: I just found VS - he says he's talked with you about the tile catalogs Date: Fri, 21 Jan 2000 18:14:12 MST
If you have the TILE CATALOGS, we can proceed with 'putting together' a CORPORATE PRESENTATION for CASA MEXICANA, a million dollar firm.
We will offer them a LOWER PRICE STRUCTURE for a full range of high quality tiles, manufactured in the PRC.
I have been with VS for an hour (5 to 6 PM here in JACOBS, Friday).
We still have to select a time, place and date for the TRANSNATIONAL MEETING.
To ZY from AM
Subject: Guatemala communications are cut off due to volcano / Other news...
Date: Sat, 22 Jan 2000 17:03:42 MST
VS asked me to tell you that because of the VOLCANO, it seems as if his uncle and cousin in Guatemala City are not able to use e-mail or other communications. VS has been trying to contact them, concerning the 5-unit computer order, since the volcanic eruption, without success.
He will continue to try until the country's communications system is functioning again.
Did you get my previous message, sent earlier this afternoon, concerning your attractive TILE LINKS from China? We need to re-format the page and plan to make a presentation to CASA MEXICANA.
But the costs have to be between $6 and $8 per sq meter.
See you later... You are always welcome to drive out to S. M. and see us in the evening, after 7:30 or 8PM, usually.
HOUSE NUMBER: xxx-xxxx