Urgent Order For Kenya

[Joseck Matheri]

Dear Ivan,
Good morning.  As discussed,  please urgently arrange to send us 2,000 packs of Optilube 42 grams.
K.R.A. confirmed the goods will attract 25% duty, 16 % V.A.T. ,7.5 %excise duty and 1.25% railway levy.
We are lokking forward to a speedy response so we can take advantage of KY Jelly's O.S. situation and establish Optilube market.
Kind Regards,
Matheri C.J.

[David Mungai]

Hi Alex,

What did our workings look like?

Kindly send urgently so we can expedite asap.

 

regards

David

----- Forwarded Message -----
From: Makumbi Ivan <makiv...@yahoo.com>
To: Joseck Matheri <math...@gmail.com>
Cc: mwambu david <dmw...@yahoo.com>; "al...@wananchi.net" <al...@wananchi.net>; "david_...@yahoo.com" <david_...@yahoo.com>; "prosper...@googlegroups.com" <prosper...@googlegroups.com>
Sent: Monday, May 26, 2014 12:13 PM
Subject: Re: Urgent Order For Kenya

Dear Jozeck,

Pse confirm that Ugsh: 3,800 per tube is OK and we proceed, good enough the stocks are available.

Ivan

[Joseck Matheri]

Dear Ivan,

Thanks for that assurance.

As you always emphasize, we discuss our business frankly and with transparency.

This is how our mutual talks in Kampala went like:

Your current price is Ugx 4,500 

Margin from UK 40 %

CIF cost ( goods in your warehouse) Ugx 2,700

5 % mark up as loyalty from Prospero Ugx 135

Price to Prospero in Kenya Ugx 2,835/=

Please confirm and advise on the best shipment method.

Kind Regards,

Matheri C.J.

MATHERI C.J.

On Mon, May 26, 2014 at 12:13 PM, Makumbi Ivan <makiv...@yahoo.com> wrote:

Dear Jozeck,

Pse confirm that Ugsh: 3,800 per tube is OK and we proceed, good enough the stocks are available.

Ivan

On May 26, 2014, at 10:02 AM, Joseck Matheri <math...@gmail.com> wrote:

[Joseck Matheri]

Thanks Ivan,  we are already consulting and we shall get back to you by tomorrow.
Regards,
Matheri C.J.

On May 26, 2014 9:01 PM, "ivan makumbi" <makiv...@yahoo.com> wrote:

Dear Gentlemen,

The other option in the event that the stocks in Uganda seem unfavorable is it an idea to consider stocks that we can ship to you straight from the UK.

This like we mentioned already will cost 15% as loyalties after the ex stock price, we can then consignee it to you directly from UK to Nairobi and you pick it up from customs for further ground clearance.

The only complication though is that minimum order is 5,000 tubes?

We shall appreciate your thoughts?

Ivan

On Monday, May 26, 2014 7:10 PM, ivan makumbi <makiv...@yahoo.com> wrote:

Dear Jozeck,

To our recollection gentlemen we mentioned a hypothetical figure therein during the discussion hence the 5% but it is was not the actual figure.

Otherwise our loyalties for stocks from UK will be 15%

P'se note that for ex stock UK the minimum order is 5,000 tubes!

We hope the above clarifies,

Otherwise the best mode of transport at the moment will be the bus services that plight this route, our duty will be to find out from the bus stations how much they will charge for the 28 cartons which make up the 2,016 tubes and advise you accordingly.

BTW about the Optisonic Ultra Sound gel, there is a re branding going on and the product will not be called Optisonic any more going forward so but Vue Ultra Sound Gel but it is still a pack of 250ml. FYI Gentlemen.

Kind Regards,

Ivan

[Joseck Matheri]

Dear Ivan,
Good afternoon . As promised, we held a meeting today and wish to respond as follows:
1) See below attached the official price list of KY Jelly which is trading at an equivalent of Ugx 6,608. In order for us to make any significant inroads into the market, we must of necessity therefore play at a sufficiently lower price than the market leader . Your current offer at Ugx 3800 lands the product here at Ugx 6080; this is inclusive of freight ,duty and taxes only. It does not include any sales/marketing expenses or  a profit margin. Clearly this offer price is therefore untenable .

2) We would like to take advantage of the O.S. situation of KY Jelly which according to our intelligence will be back in August. We therefore have ONLY two months to penetrate the market with Optilube. It is imperative that we get the Optilube urgently from Uganda to test the market.

3)We have already paid for an advert for the sales representative position which we intend to fill next week.

4) Your suggested royalties of 15% are not tenable at this time and we suggest a start off of 5 % graduating to 10% on our import from the U.K.

5) In our fair opinion, we suggest you give us at Ugx 3,000 .This will push the landing price  to Ugx 4,800 inclusive of freight,duty and taxes  . Our target price is Ugx 6,000  just 10% below the market leader . This  will be a mere  25% gross  mark up . Please note that upto 60% of this gross margin goes to selling expenses .

We thus covet your much needed support and consideration.

Kind Regards,

Matheri C.J.  for Prospero Limited

[Joseck Matheri]

Dear Ivan,
Thanks for your call offering 3600 Ugx. Please note our breakeven point is 3300 Ugx .You may need to support this market a bit as we get our own stocks latter on and still remains your market! Beyond this point we may just pass the opportunity unfortunately as it will be a clear loss making venture.
Regards,
Joseck Matheri

[Joseck Matheri]

Thanks.  That's what we have been pursuing diligently and will soon update you.
Joseck Matheri

On 11 Jun 2014 18:33, "Makumbi Ivan" <makiv...@yahoo.com> wrote:

Dear Jozeck,

Hope you are well, just as a follow up to your last insight regarding classification of the OPTI Lube, pse refer to the East African Customs Union chapter 30 which defines pharmaceuticals. 

This clearly indicates the guideline for classification of such products in the region.

This document is readily available on the internet as well.

Kind Regards,

Ivan