1. What should Tom Sloane and U.S. Pharmaceutical of Korea do to improve collections from wholesalers? I think the best thing that Tom and U.S. Pharmaceutical of Korea could do, would be to have sales agreement and policies that are laid out and agreed upon before business transactions take place in reference to collections. This agreement should lay out the specific payment terms. Most payments are due in 30 days and they should be sure to explain that payments not paid on time will result with a late fee and this fee will continue to go up the later it is. For example, the payment isn’t received in 30 day then a 15% fee will be added, after 60 days an additional 5% will be added and after 90 days the will be turned over to the collection agency and face possible court fees. They also may consider collecting a down payment in good faith as a promise to pay. 2. How would you handle the distribution problem?
This is harder to regulate, to successfully control distribution, price regulation would be effective. This is what Tom Sloan would like to see more of; problem is it is a large range to control. We are talking about regulating prices for wholesalers and retailers. Not to mention that competition is natural, everyone wants to be the one that makes the sale. The drug peddlers are also a huge part of the distribution problem. I think that what could really help would be for the government to pass laws and distribution and to make everyone go through them to prove they are complying, maybe by having to turn over financials quarterly for review and being fined if they don’t comply. Without help, it think the best thing to do would be to regulate who you sale to and how much you sell for, to regulate your own distribution by controlling your selling prices and customers. Also, I think it would help to properly market your product. Drug peddlers won’t really have a leg to stand on with a reputable company if they feel they don’t offer a good product, place you a...
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