[ Mail ] To Dareal Noxim: Reevaluation of bulk rare elements import

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Chancellor Dewa Lanadi
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Dareal Noxim
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Chancellor Dewa Lanadi
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Dear Dareal Noxim,

I write to you to propose a re-evaluated bulk rare elements agreement.

The Veolian Commonwealth is currently buying 1425 (:rares) per (:turn) from the Praetorian Empire. We are doing so at a price of 0.18 (:tax) per (:rares), which was a good trade in the past. However, times are changing, and the markets with them. We have recently been approached by a supplier that is capable of delivering 1200 (:rares) at 0.14 (:tax) per (:rares), starting in (:turn) 254. Because the Praetorian Empire has not shown any indication of reducing the prices of their (:rares), we have agreed to their amicable terms.

This has put our (:rares) import from the Praetorian Empire in a somewhat less positive light. Because of this new situation I want to propose several changes to our (:rares) agreement. First, I propose to change the valuation of (:rares) in our agreement from 0.18 (:tax) to 0.15 (:tax) to conform to market expectations. Secondly, I propose that we review the amount of (:rares) delivered. Until (:turn) 254 we can use at least 1425 (:rares).

After (:turn) 254, I propose to reduce the amount delivered by 1200 (:rares). However, I expect Veolian demand for (:rares) to increase with time, and our second supplier has indicated that a scaling trade is not a good fit for them. As such, I would like to source further (:rares) beyond our current usage from the Praetorian Empire.

So, in short, I propose the following changes:
  • Change the valuation of (:rares) from 0.18 (:tax) to 0.15 (:tax) in (:turn) 232
  • Reduce the amount of delivered (:rares) per (:turn) by 1200 (:rares) starting in (:turn) 254
If you can agree to this, the Veolian Commonwealth can start deliveries of 1000 (:gasses) per (:turn) at a price of 0.15 (:tax) per (:gas). We can start these deliveries in (:turn) 232. If you wish to negotiate terms, or flat out can not agree, we can still start deliveries in (:turn) 232, yet we must charge 0.18 (:tax) per (:gasses) to ensure a 1:1 exchange ratio between (:gasses) and (:rares).

Unfortunately, as you can undoubtedly agree with this renegotiation does mean that I have to invoke our 26 (:turn) notice on the (:rares) bulk import as a fallback option. It is my responsibility to prevent the Veolian Commonwealth from paying for (:rares) that we can not profit from. I am confident that we can find a workable solution, and with the 26 (:turn) period have until (:turn) 257 time to negotiate towards mutually beneficial terms.

I look forward to your reply.

Sincerely yours,
Senator Dewa Lanadi
Post Dareal Noxim » Sun Nov 08, 2015 7:13 pm
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Dareal Noxim
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Senator Dewa Lanadi,

It is unfortunate that you have already agreed to such a mediocre deal at another supplier. We regret that we have not been asked to evaluate the situation sooner. However since you ask now we can still offer you a great deal.

We are willing to accept your proposal. We are willing to replace the current trade for the exchange of 1000 (:rares) for 1000 (:gasses) under the 26 (:turns) period notice starting (:turn) 232.

Furthermore we are willing to lower our price for the additional 425 (:rares) to 0.15 (:tax) / (:rares) for the period until (:turn) 254.

Starting (:turn) 254 we will offer these additional (:rares) at 0.13 (:tax) / (:rares) starting (:turn) 254. Finally we will even lower the price to 0.12 (:tax) / (:rares) if you increase this amount to 1000 (:rares) or more in the 10 (:turns) period after (:turn) 254.

Greetings,
Dareal Noxim
Post Chancellor Dewa Lanadi » Sun Nov 08, 2015 7:56 pm
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Chancellor Dewa Lanadi
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Dear Dareal Noxim,

As I already said, the Praetorian Empire had not given any indication that the prices for (:rares) were going to change, and as such I felt the need to find secondary suppliers that provide a better price. Now, with your much-improved terms, I am sure that we will source the necessary additional (:rares) from the Praetorian Empire.

I want to express that I am willing to agree to your terms. But, I submit the following slight change for your consideration, in the interest of continued (:gasses) deliveries: The 1000 (:gasses) are delivered at 0.15 (:tax) per (:gasses) starting (:turn) 232, for a duration of at least 26 (:turns), after which the trade continues with a cancellation period of 5 (:turns). I propose this under the assumption that you wish to maintain our gasses trade beyond (:turn) 257. If you feel it is better to lock the (:gasses) directly in a 1:1 trade for (:rares) for a 26 (:turn) duration as you proposed yourself, I have no objection to that.

Please inform me of your decision in this matter as soon as possible. It will help us plan zone development in the nearby future.

Additionally, I would like to bring to your attention the fact that the Veolian Commonwealth can renege from the deal we cut with our second supplier if any other supplier publicly offers (:rares) at 0.13 (:tax) / (:rares) before (:turn) 254. If this condition is met, I cannot guarantee that we will source our complete (:rares) demand from the Praetorian Empire -- but I will have the freedom to review all our (:rares) agreements to rebalance them into the most profitable configuration. Given that you are willing to offer us 0.12 (:tax) / (:rares) if we reach the 1000 (:rares) / (:turn), I think that such a rebalancing would favour the Praetorian Empier as a supplier.

I look forward to your reply.

Sincerely yours,
Senator Dewa Lanadi
Post Chancellor Dewa Lanadi » Fri Nov 13, 2015 3:08 pm
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Chancellor Dewa Lanadi
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Dear Dareal Noxim,

If I do not hear back from you before the end of saturday I will assume that you are not interested in my proposed change. In that case, the Veolian Commonwealth agrees to the terms you have proposed on 2015-11-08.

Sincerely yours,
Senator Dewa Lanadi
Post Dareal Noxim » Fri Nov 13, 2015 8:10 pm
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Dareal Noxim
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Dear Senator Dewa Lanadi,

I believe I was not completely clear on our intentions. Our proposal was to to put a 26 (:turns) notice period on the indefinite trade, instead of a fixed length trade.

We understand that 26 (:turns) is rather long, however we believe a trade for the 26 (:turns) after which the trade continues with a cancellation period of 10 (:turns) is reasonable as well. We believe the 1:1 trade for these (:rares) and (:gasses) is most logical since we both deal in large volumes.

On the second matter we intended to act soon. We will extend the offer of 0.13 (:tax) / (:rares) to all Union members. However the 0.12 (:tax) for high volume will be specifically for the Veolian Commonwealth for now.

Greetings
Dareal Noxim
Post Chancellor Dewa Lanadi » Sat Nov 14, 2015 12:50 am
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Chancellor Dewa Lanadi
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Dear Dareal Noxim,

I am afraid that your clarification has not made matters any clearer. It seems you have forgotten that in my original proposal I state that I would like to reduce the amount of (:rares) we receive by 1200 starting in (:turn) 254. With your sudden proposal of an indefinite exchange of 1000 (:rares) for 1000 (:gasses) which makes it impossible to scale down to our desired intake, it seems you are in a different conversation alltogether.

To remove the confusion, I first summarize the current situation. The current 1425 (:rares) per (:turn) agreement and situation is as follows:
  • The Veolian Commonwealth pays 0.18 (:tax) per (:rares) rounded up
  • The Praetorian Empire delivers 1425 (:rares) per (:turn)
  • The Veolian Commonwealth has delivered notice for the 26 (:turn) cancellation period in (:turn) 231, which sees this agreement coming to and end in (:turn) 257, inclusive

Then, based on that, and taking into account your desire to receive (:gasses) for an indefinite period, I present you with a comprehensive outline of the changes I propose to our bulk (:rares) agreement. These changes differ from my original proposal as they try to take into account the prices you have stated as acceptable.

The proposed new situation starting in (:turn) 232 consists of three separate deals (two of which cover the handling of (:rares), and the last one covers a new supply of (:gasses)):
  1. Bulk rares phase-out
    • The Praetorians deliver 1200 (:rares) @ 0.15 (:tax)
    • The Veolians transfer 180 (:tax) (= (:rares) @ 0.15 (:tax) = 180 (:tax))
    • The duration of this agreement is until (:turn) 254, inclusive
  2. Bulk rares continuation
    • Until (:turn) 254, inclusive:
      • Praetorians deliver 225 (:rares) @ 0.15 (:tax)
      • Veolians transfer 34 (:tax) (= 225 (:rares) @ 0.15 (:tax) = 33.75 (:tax))
      • The duration of this part is until (:turn) 254, inclusive
    • Starting (:turn) 255:
      • Praetorians deliver 225 (:rares) @ 0.13 (:tax)
      • Veolians transfer 30 (:tax) (= (:rares) @ 0.13 (:tax) = 29.25 (:tax))
      • The amount of (:rares) delivered each (:turn) can be increased through reasonable discussion
      • If the amount exceeds 1000 (:rares) per (:turn), the price changes to (:rares) @ 0.12 (:tax)
      • This agreement is indefinite, with a cancellation of 26 (:turns)
  3. Bulk gasses phase-in
    • The Veolians deliver 1000 (:gasses) @ 0.15 (:tax)
    • The Praetorians transfer 150 (:tax) (= (:gasses) @ 0.15 (:tax) = 150 (:tax))
    • This trade is indefinite, with a 10 (:turn) cancellation period

Next, and indepent, to these changes there is the possibility that can come back from our deal with our second supplier, if another supplier publicly announces their offer of (:rares) @ 0.13 (:tax). In this case, we can renege on our agreement with which starts in (:turn) 254 and take up other offers. If it is the case that the Praetorian Empire has announced this price on (:turn) 254, we will look evaluate the option of sourcing a significant amount of our intake from the Praetorian Empire at that moment.

I hope that this clarifies my position on the matter situation, and look forward to your reply.

Sincerely yours,
Senator Dewa Lanadi
Post Dareal Noxim » Sat Nov 14, 2015 1:12 pm
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Dareal Noxim
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Dear Senator Dewa Lanadi,

We see the problem now. We confused 'reduced by' with 'reduced to' which have a totally different outcome.

We are willing to agree with your proposal with a slight modification to 3. We agree under the condition that the (:gasses) price levels with the (:rares) at 0.13 (:tax) / (:gasses) starting (:turn) 255. Furthermore more we believe this agreement is indefinite, with a cancellation of 26 (:turns) as well.

What we meant at our earlier message was that we valuate the (:rares) and (:gasses) 1:1.

Greetings,
Dareal Noxim
Post Chancellor Dewa Lanadi » Sat Nov 14, 2015 1:31 pm
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Chancellor Dewa Lanadi
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Dear Dareal Noxim,

I can not completely agree with your proposal as I do not see (:gasses) and (:rares) as being equal in value. Depending on other developments we will valuate our (:gasses) higher than 0.13 (:tax), and might want to free them up for other purposes. Because of this, I can offer you two possibilities, both based on the bulk gasses phase-in.

The first option: The valuation will remain (:gasses) @ 0.15. This trade will be indefinite and has a 10 (:turn) cancellation period, with guarantees that the trade will last at least 26 (:turns).

The second option: The valuation will remain (:gasses) @ 0.15 until (:turn) 254 (inclusive), after which it will switch to (:gasses) @ 0.13. This trade will be indefinite and has a 5 (:turn) cancellation period, with guarantees that the trade will last at least 26 (:turns).

Alternatively, we can leave out the bulk gasses phase-in and negotiate a gasses agreement separately. This might help smooth the transition to the new situation.

Sincerely yours,
Senator Dewa Lanadi
Post Dareal Noxim » Sat Nov 14, 2015 2:35 pm
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Dareal Noxim
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Dear Senator Dewa Lanadi,

It seems that we agree on the period up to (:turn) 255. With the locked in trade and the price of both the (:gasses) and (:rares) at 0.15 (:tax).

However it seems that the Veolian Commonwealth is not willing to keep long cancellation periods starting from (:turn) 255.

We are willing to agree to the 0.13 (:tax) / (:gasses) with a 5 (:turns) cancellation period, however this will mean our (:rares) will also be 0.13 (:tax) with a 5 (:turns) cancellation period. This is regarding to the second part of what you proposed as deal 2.

The Praetorian Empire is not willing to separate this matter into three deals if the conditions are so unbalanced.

Greetings,
Dareal Noxim
Post Chancellor Dewa Lanadi » Sat Nov 14, 2015 2:54 pm
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Chancellor Dewa Lanadi
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Dear Dareal Noxim,

We can agree to the shorter cancellation times on both sides. To prevent later issues over this agreement, I have summarized the new situation below.

Starting in (:turn) 232, the old bulk (:rares) agreement of 1425 (:rares) per (:turn) from the Praetorians to the Veolians will be replaced by the following three agreements:
  1. Bulk rares phase-out
    • The Praetorians deliver 1200 (:rares) @ 0.15 (:tax)
    • The Veolians transfer 180 (:tax) (= (:rares) @ 0.15 (:tax) = 180 (:tax))
    • The duration of this agreement is until (:turn) 254, inclusive
  2. Bulk rares continuation
    • Until (:turn) 254, inclusive:
      • Praetorians deliver 225 (:rares) @ 0.15 (:tax)
      • Veolians transfer 34 (:tax) (= 225 (:rares) @ 0.15 (:tax) = 33.75 (:tax))
      • The duration of this part is until (:turn) 254, inclusive
    • Starting (:turn) 255:
      • Praetorians deliver 225 (:rares) @ 0.13 (:tax)
      • Veolians transfer 30 (:tax) (= (:rares) @ 0.13 (:tax) = 29.25 (:tax))
      • The amount of (:rares) delivered each (:turn) can be increased through reasonable discussion
      • If the amount exceeds 1000 (:rares) per (:turn), the price changes to (:rares) @ 0.12 (:tax)
      • This agreement is indefinite, with a cancellation of 5 (:turns)
  3. Bulk gasses phase-in
    • The Veolians deliver 1000 (:gasses) @ 0.15 (:tax)
    • The Praetorians transfer 150 (:tax) (= (:gasses) @ 0.15 (:tax) = 150 (:tax))
    • On (:turn) 255, the price changes to (:gasses) @ 0.13 (:tax)
    • The duration of this part is indefinite with a 5 (:turn) cancellation, with guarantee that the trade will last at least 26 (:turns)
In all three agreements, fractional prices are rounded up.

Please confirm that this matches your expectations. If so, we have a deal.

Sincerely yours,
Senator Dewa Lanadi
Post Dareal Noxim » Sat Nov 14, 2015 3:38 pm
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Dareal Noxim
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Dear Senator Dewa Lanadi,

The Praetorian Empire agrees with this summary. We have a deal.

Greetings,
Dareal Noxim

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