Dear Mr. Prime, As we discussed he

Dear Mr. Prime,

As we discussed here with Julien about the Nutrition price and Customer price, and we have some questions to ask you to clarify first.
1. Would you please confirm whether the customer price should be the final selling price to our end-users or not? For example, the customer price of Vanilla Flavour Provanil 1 is CIF Bangkok EUR 12.91/kg, then we multiply this price with current exchange rate of 48 THB. It will be EUR 12.91/kg x 48THB = 620THB/kg. That should be the final price to our customer or not, please kindly advise us.
2. Would you include the import duty, customs clearance costs, inland transportation, storage, etc. into the customer price or not?

Anyway, we think you still didn't include the import duty into the customer price. We refer to your earlier E-mail which you communicated to our boss and we quote your explanation hereunder.

"Customer price not including customs clearing but including distribution

Explanation: During our discussions we have agreed that you need to get a 10 % net income when importing, storing and distributing our products. Therefore, I have calculated on each product a 15 % gross margin of which 5 % are destinated to cover importation, storing and distributing costs, leaving at the end 10 % net for your company.

However, as also discussed together, this is not covering customs duties remaining to be calculated separately as each imported product concerned."

If we understand correctly, we have to add up import duty into the price calculated to our customer.

Then, the price of Vanilla Flavour Provanil 1 quoted to our customer should be CIF Bangkok EUR 12.91/kg + 5% import duty, is that right? Please kindly confirm us again.

Considering the margin you gave us, it is 15% gross margin of which 5% are given to cover our local handling costs such as importation, storing and distributing costs, leaving at the end 10 % net for your company. We have to ask you to please reconsider this structure. Actually, the costs we have to pay when importing your products are more than you gave us. We will specify what we actually pay when we import each shipment.
- We have to pay import duty first. It will be 5%, 10% or else depends on the kind of the products.
- Customs clearance around 5%
- Inland ransportation around 2%
- Storage around 0.25%
- Net income 10%.
- Other expenses, we didn't mention to Julien and these costs we have to absorb by ourselves.

Could you please consider this and let us know your comment? Would you allow us to add up more margin to cover the real costs we pay currently?

Nevertheless, the different product would have different cost structure and its own strategy. As for Vanilla Flavour Provanil 1, we have tried to add less margin and saved our internal costs in order to grow up this business. The total margin that we would like to add on the price of Vanilla Flavour Provanil 1 is around 22% (this 22% is included 5% import duty). Could you please advise us your comment?

Anyway, as per Julien's customer visit report, we think you would get his report. Our key competitor, Borregaard, can quote the lower price for 100% pure Vanillin, their selling price to our customer is around 640THB/kg. If we follow to your quote of CIF Bangkok EUR 12.91/kg without adding the import duty, the selling price to our cutsomer will be 620THB/kg. If we add up 5% import duty separately as you agreed above, the price will be more than 640THB/kg. Would you think it is the competitive price? You said that your Vanilla Flavour Provanil 1 price is lower than other competitor around 1-2 EUR/kg, but our calculation is shown the different thing. Please kindly advise us.

Best regards,
Wanida

Results (English) 1:

Dear Mr. Prime, As we discussed here with Julien about the Nutrition price and Customer price, and we have some questions to ask you to clarify first.1. Would you please confirm whether the customer price should be the final selling price to our end-users or not? For example, the customer price of Vanilla Flavour Provanil 1 is CIF Bangkok EUR 12.91/kg, then we multiply this price with current exchange rate of 48 THB. It will be EUR 12.91/kg x 48THB = 620THB/kg. That should be the final price to our customer or not, please kindly advise us.2. Would you include the import duty, customs clearance costs, inland transportation, storage, etc. into the customer price or not? Anyway, we think you still didn't include the import duty into the customer price. We refer to your earlier E-mail which you communicated to our boss and we quote your explanation hereunder. "Customer price not including customs clearing but including distribution Explanation: During our discussions we have agreed that you need to get a 10% net income when importing, storing and distributing our products. Therefore, I have calculated on each product a 15% gross margin of which 5% are destinated to cover importation, storing and distributing costs, leaving at the end 10% net for your company. However, as also discussed together, this is not covering customs duties remaining to be calculated separately as each imported product concerned. " If we understand correctly, we have to add up import duty into the price calculated to our customer. Then, the price of Vanilla Flavour Provanil 1 quoted to our customer should be CIF Bangkok EUR 12.91/kg + 5w import duty, is that right? Please kindly confirm us again. Considering the margin you gave us, it is 15% gross margin of which 5s are given to cover our local handling costs such as importation, storing and distributing costs, leaving at the end 10% net for your company. We have to ask you to please reconsider this structure. Actually, the costs we have to pay when importing your products are more than you gave us. We will specify what we actually pay when we import each shipment.-We have to pay import duty first. It will be 5a, 10% or else depends on the kind of the products.-Customs clearance around 5f-Inland ransportation around 2r-Storage around 0.25%-Net income 10%.-Other expenses, we didn't mention to Julien and these costs we have to absorb by ourselves. Could you please consider this and let us know your comment? Would you allow us to add up more margin to cover the real costs we pay currently? Nevertheless, the different product would have different cost structure and its own strategy. As for Vanilla Flavour Provanil 1, we have tried to add less margin and saved our internal costs in order to grow up this business. The total margin that we would like to add on the price of Vanilla Flavour Provanil 1 is around 22% (this 22% is included 5a import duty). Could you please advise us your comment? Anyway, as per Julien's customer visit report, we think you would get his report. Our key competitor, Borregaard, can quote the lower price for 100% pure Vanillin, their selling price to our customer is around 640THB/kg. If we follow to your quote of CIF Bangkok EUR 12.91/kg without adding the import duty, the selling price to our customer will be 620THB/kg. If we add up 5a import duty separately as you agreed above, the price will be more than 640THB/kg. Would you think it is the competitive price? You said that your Vanilla Flavour Provanil 1 price is lower than other competitor around 1-2 EUR/kg, but our calculation is shown the different thing. Please kindly advise us. Best regards,Wanida

Results (English) 3:

亲爱的总理，

我们在这里讨论朱利安关于营养的价格与客户的价格，我们有几个问题要问你首先阐明
1。请你确认一下客户是否价格应该最终销售价格为我们的客户或不？例如，香草味provanil 1客户价格是CIF曼谷欧元12.91/kg，然后我们乘这个价格与48泰铢汇率。这将是欧元12.91/kg X 48thb = 620thb／kg。这应该是最后的价格给我们的客户或没有，请告诉我们。
2。你会包括进口关税，报关费，内陆运输，仓储，等到客户的价格或不？

无论如何，我们认为你还不包括进口关税为客户价格。我指的是你先前的电子邮件，你传达给我们的老板和我们报给你的解释如下。“客户的价格不包括

报关但包括分布

解释：在我们的讨论我们已经同意，你需要获得10%的净收入在进口，存储和分发我们的产品。因此，我对每一个产品15%的毛利润，5%是获得盖进口计算，存储和分发的成本，为您的公司10%年底净离开。

然而，也一起讨论，这是不包括关税有待每个进口有关产品，分别计算

。”如果我们正确理解，我们必须增加进口关税为计算客户价格。然后香草味

，provanil援引1到客户的价格应该是CIF曼谷12.91/kg欧元5%的进口关税，是这样吗？请再次确认我们。

考虑你给我们的缘，