You have been asked to purchase a hot air balloon. Your sales director has obtained a single quotation from a well-known manufacturer. The price is quoted as £35,500 and the following information has been provided:

£

Envelope 15,000 Envelope scoop 1000 Padded covers * 4 500 Inflator fan 2500 Tether line 400 Shadow double burner 5500 Basket 4500 Fuel cylinders * 4 4500 Instruments 1000 Cushion floor 100 Other equipment 500 Artwork AT COST What specific actions would you consider taking in regard to:

(a) inviting other quotations?

(b) challenging the cost breakdown?

(c) asking where the overhead recovery and profit is hidden?

(d) taking a negotiating stance to get the price reduced?