answer: Mr. Bergeron wants to get the European market sales agency of Mrs. Miller's clocks and wants a commission of 10%. Mrs. Miller thinks Mr. Bergeron's team has no idea about the annual turnover so she refuses Mr. Bergeron's suggestion but will still carry on their business relationship without the agreement and will give Mr. Bergeron a 5 % commission on every transaction. They will discuss the matter again at the next Fair.
documents: #Person1#: I think you know already that I want to discuss the represention for your alarm clocks.
  #Person2#: Yes, Mr. Bergeron. You mentioned that in your letter. To tell you the truth, your proposal surprised us.
  #Person1#: Is that so? Anyhow I want to go over the details with you in person, so you can give my suggestion thorough consideration. Our firm specializes in this line of business. We have six sales representatives, who are on the road all the time, covering the whole of the European market.
  #Person2#: Do you sell direct to shops?
  #Person1#: Yes, we specialize in handling clocks and watches of all sorts. We have well established channels of distribution and we canvass the retailers direct, without any middlemen.
  #Person2#: Do you keep a stock of these things?
  #Person1#: In some cases, such as the wristwatches, which always have a steady market, we keep a stock in London and act as distributors as well as agents. Generally, however, we pass on the orders of our clients to the manufacturers for supply. We are paid for our service, of course.
  #Person2#: That is, your commission.
  #Person1#: Yes, our commission is very reasonable. We usually get a 10 % commission of the amount on every deal.
  #Person2#: Our agents in other areas usually get a 3-5 % commission.
  #Person1#: The European market is not familiar with your products. You have competitors from Japan and other continental countries. At the beginning of our campaign, there is sales resistance to overcome, we must send out salesmen to do a lot of traveling and spend a considerable amount of money on advertising in news - papers and TV programs. A 10 % commission will not leave us much.
  #Person2#: According to your estimate, what is the maximum annual turn - over you can fulfill, in round figures, of course?
  #Person1#: We will always do our utmost to enlarge the business, as our remuneration increases with the turnover, but we will not be able to guarantee anything, at least not to begin with.
  #Person2#: We appreciate very much your intention to push the sale of our products. But our suggestion to you, Mr. Bergeron, as a preliminary step, is to do a little research into the market...
  #Person1#: Do you mean to say you refuse us the agency?
  #Person2#: Mr. Bergeron, you leave us no alternative. We can not give you an exclusive agency of the whole European market without having the slightest idea of your possible annual marketing turnover. Besides our price is worked out according to the costing. A 10 % commission means an increase in our price. We must have the reaction of the buyers in this respect.
  #Person1#: Oh, that's just too bad. I intended to make great efforts in selling your products.
  #Person2#: Well, we can still carry on our business relationship without the agreement. To start the ball rolling, we will provide you with price lists, catalogues and some samples. Only when you have a thorough knowledge of the marketing possibilities of our products, can we then discuss further details.
  #Person1#: Ah, Mrs. Miller, but in this case am I covered?
  #Person2#: Oh, yes. We will give you a 5 % commission on every transaction.
  #Person1#: All right, but I'll be back again for the Autumn Fair. And then I hope we can see eye to eye about our commission and the terms of the agency.
  #Person2#: Very good. We will discuss the matter again at the next Fair.