Dealing with an Important New Market
(John Martin is summoned to Hector Grants office.)
John Martin:
You wanted to see me, H.G.?
Hector Grant:
Yes, I did, John.
I've just been going through the expenses you incurred on the Abraca trip.
We haven't had a single order out of your visit to Abraca.
John:
It's a bit early to say, but I don't think the Abracan visit will be fruitless.
Grant:
You went there in October and it's now February and we haven't heard a thing from them.
What's our agent doing out there?
Sleeping?
John:
As a matter of fact, I think there may be something moving out there.
We've been asked for a quotation for a very large order-office furniture and equipment for two entire government departments.
Grant:
What are the chances of getting this large order?
It's only an enquiry, isn't it?
John:
No, it's more than that.
We've already sent pro forma invoices so that the Ministry of Works can apply to the National Bank for foreign exchange.
They want a reduction on our unit price per desk for a larger quantity than we originally quoted for, the price to be c.i.f. Djemsa.
Grant:
C.i.f. Djemsa.
Two government departments, you said?
Well, this sounds more like it.
John:
It would be the largest single order in the history of the firm.
It's a package deal.
We've costled it in detail.
It's true we'd be below normal price levels, but we're up against big competition.
We have the capacity to produce the order and it'd be in addition to the budgeted turnover for the year, so all recovery on marginal cost would be profit.
I'm certain it'll lead to other orders in the country.
Here's the letter.
Grant:
'A representative of our Ministry of Works will be coming to London... obliged if you would book him accommodation... glad to visit your factory and view the merchandise... special requirements...'
Here what's this about 'special requirements'?
What do they mean by that?
John:
I don't know, H.G.
That's the one mystery.
They mentioned it in their original letter of enquiry.
Grant:
I don't much like the sound of that.
What do they mean by 'special requirements'?
I suppose we'll soon find out.
What's the method of payment?
John:
We require an irrevocable letter of credit, confirmed on a London bank.
We've quoted in local currency, and this, of course, is conditional.
It's conditional on the rate of exchange which prevails on the date of our quotation not fluctuating more than three per cent either way.
So we'd be protected if the Abracan currency, for instance, was devalued in relation to sterling.
Grant:
Hmm!
Is Peter happy about delivery dates?
John:
Yes, we can meet them.
It's meant an immense amount of work in the production planning section.
Grant:
Well, you'll arrange some sort of meeting for us all then?
Have you booked their representative into a hotel?
John:
Yes, I have, and I think we should provide a car and show him a bit of this country.
Grant:
All right.
But you'd better find out more about the special requirements.
It may be some condition we can't fulfil, and I don't think...
(Mr. Mahawi, the government representative, arrives and is entertained royally. His 'special requirements' cause some difficulty. John goes to see Hector Grant.)
Grant:
A mahogany desk with built-in cocktail cabinet, secret drawer and radio!
Leather top?
Oh, really, John, what kind of firm does he think we are?
Our business is mass-produced steel office furniture!
John:
I said we'd make it.
It's for the Minister's personal use.
They are prepared to pay.
It would be additional to the main contract.
Grant:
Don't be ridiculous.
We've dropped this sort of line from our range.
That was part of our rationalisation policy.
John:
Couldn't Bob Hardiman make it?
Grant:
That old chap?
John:
Yes.
He's a master craftsman of the old school.
Look at this beautiful desk he made for you.
You said at the time we Introduced work study, during the productivity drive, that he was redundant.
Well, here's a job he can be really useful on, and he'd be delighted to do it.
He'd produce a magnificent piece of furniture, it'd be the envy of all the Minister's visitors and a splendid advertisement for us.
Grant:
Well, you have committed us to it, so we must go ahead, I suppose.
SIXTEEN
Transport Problems
(In Peter Wiles's office.)
Bruce Hill:
Peter?
Can I trouble you?
Peter Wiles:
Is it urgent, Bruce?
I'm up to my eyes in work this morning.
You know H.G. likes you to cope with transport entirely.
You're only nominally under me.
Hill:
Yes, I know.
But this is a policy matter.
I think it's high time we had our own transport fleet.
Every month it gets worse having to rely on outside contractors.
Peter:
My dear Bruce, H.G. wouldn't hear of it.
You know the new works extension is working out twice as expensive as we originally estimated.
We're supposed to be making economies to offset the increase!
Hill:
I don't think it would cost us so much... in the long run.
Peter:
There are a lot of arguments against having our own fleet.
It's difficult to keep the lorries fully employed, and you've got to calculate depreciation.
Hill:
I realise that.
Of course the most efficient system would be to have articulated vehicles.
Peter:
Well, surely you have to be a very big operator to make that system economic.
The traction units that do the pulling are very expensive.
Anyway, what's wrong with the contractors who supply us with lorries?
Hill:
They can't always let us have one when we want one.
And then there's the cost!
Andersons' bills get higher each time.
Peter:
They why don't you go to another contractor?
Hill:
That's just it.
We can't.
We've been with Andersons so long we get a good discount.
It's not the basic charge they increase, but the expenses: fuel consumption, alleged breakdown, driver's expenses on overnight stops and so on.
Peter:
If we had our own fleet there'd be similar problems and expenses.
Hill:
But they'd be controllable.
Turn round time, for instance.
Peter:
How do you mean?
Hill:
I mean we can never really be sure of how long they'll take at the other end.
This load that's just gone off today, for instance, taking those desks and chairs for the new ship at Clydebank.
We need that lorry back here the day after tomorrow.
Peter:
H'm.
Well, I'll try' to suggest to H.G. that we should have our own vehicles.
But I don't hold out much hope...
(The driver of Andersons' lorry, Ernie, has given a lift to a man he has met in a transport cafe.)
'Foxy' Runcorn:
It's good of you to give me a lift.
Ernie:
Well, here we go up Shap Fell.
Two thousand feet of it.
It's time they built a tunnel under this mountain.
'Foxy':
Turn off at the next road on the left, will you, Ernie?
Ernie:
What?
What did you say?
Look here, what are you playing at?
I thought for a minute you'd got a gun in your hand.
'Foxy':
Yes, but it is a gun, Ernie.
Just take the next turning on the left!
Here it is.
Ernie:
But that's not a road, it's a private drive.
What is this?
'Foxy':
Just be sensible, Ernie, and no harm will be done.
If you do what I say, there'll be something in this for you...
(Next day. Hector Grant rings his Transport Manager.)
Hector Grant:
Bruce?
H.G. here.
What on earth's happening in this place?
I've just had a call from Scotland.
They say that load of desks for the new liner never arrived.
You're the Transport Manager, you're supposed to deal with this sort of thing.
I don't want to be bothered with it.
What do I have a Transport Manager for?..
Yes... find out, and deal with it.
(Twenty minutes later. Peter comes into H.G.'s office.)
Peter:
H.G., I've just spoken to Bruce Hill.
He's sure our load to Clydeside has been hi-jacked.
Grant:
Hi-jacked?
What on earth do you mean?
Peter:
After you'd spoken to Bruce, he called the contractors.
They've also been trying to contact their driver.
They checked with a transport cafe near Carlisle and he'd been there.
After that, nothing.
They've already been on to the police, who've searched the road and found nobody.
Grant:
There must be some mistake.
He must be somewhere between Carlisle and Scotland.
Peter:
The police say they've checked the whole route.
Apparently it's the third lorry to disappear in a week.
They think it may be the same gang.
Grant:
Oh, damn it!
It was a large order, wasn't it?
Peter:
Yes, sixty desks and the same number of chairs.
Grant:
Well, you'd better let the insurance company know.
But I'm sure the police will catch up with them.
It's funny the driver hasn't been found.
Peter:
I suppose it's possible that the driver is an accomplice.
Grant:
These damned contractors.
You never know where you are with them.
How do we know the driver wasn't Involved?
I wish to heaven we had our own fleet!
Peter:
What was that, H.G.?
Grant:
I think it's high time we had a couple of lorries of our own.
Put up detailed proposals with a D.C.F. on the Investment at the next Board Meeting, will you.
You would be in favour, wouldn't you?
Peter:
Er... yes, H.G.
Yes, on balance I think I would...
SEVENTEEN