Uncontrolled Spin: The Power and Danger of Spin ("Un"missable Series Book 1) (13 page)

Unbeknownst to Lidia, Ricardo, and Sean, Jessica is fluent in Portuguese and allows herself a private smile at the compliments Lidia has paid her, and also at the fact that Ricardo is in a delicate position with the factory.

Just then, the butler, Eduardo, interrupts, “Ladies and gentlemen, dinner is served.”

It is a four-course meal consisting of cold melon soup, artichokes, grilled sea bass, and flan. The conversation throughout the meal is light and pleasant, revolving around Jessica’s new designs, trends in the fashion industry, the Beauty Boutique’s market, thoughts on Latin American markets, fabric availability, shipping, costs, and pricing.

Ricardo touches Jessica’s hand. “You do look very beautiful this evening. I hope we can establish a, how you say, long-term relationship with you.” Sean has remained quiet thus far, and Ricardo wonders what strategy he is employing. He turns to Sean and says, “You have been awfully quiet, my friend.”

Sean smiles and says, “I wanted the two of you and Ms. Silva to become better acquainted and comfortable with each other, and I thought my silence might allow for that. Shall we retire to the veranda? Brandy anyone?”

As they all settle on the veranda, after-dinner drinks are served all around. Ricardo asks Jessica point-blank, “What was your impression of the factory?”

She surprises him by saying, “It is a fabulous facility, and it would certainly meet the Beauty Boutique’s needs.”

Both Sean and Ricardo are stunned by Jessica’s shortness, having expected her to list all the factory’s shortcomings. Ricardo recovers first and says, “Wonderful! But I’m still sensing some hesitation from you.”

She nods. “Of course you are, because there will always be some hesitation with a major decision such as this.” Then she turns the tide on him and bluntly asks, “What are you expecting to get for this facility with a ten-year lease arrangement?”

Ricardo stutters a little, caught off guard by her deliberate negotiation style. Before he can respond, Jessica continues, “Let me clarify what I’m looking for. It is obvious you will have a problem leasing a property that can only be a single-user facility. Yes, you could modify or change that facility, but we both know your maximum return is to find a tenant, like Beauty Boutique Clothing, who can move in with little modification needed. I need to expand, internationally. But I am not restricted as to where I can open a new factory. I will admit having one basically already built to suit is a major plus. However, I’m not sure Brazil is where I need to expand, so sell it to me. Sell me on Brazil and its fashion industry, and tell me what you’re going to do to make this facility the one for me.” She leans back in her chair and takes a sip of her brandy.

Sean struggles to hide a smile as Ricardo turns to Lidia and says in Portuguese, “I’m not sure how to answer that question. Any suggestions?”

Lidia nods, steps in, and says in English, “Perhaps I should be the one to handle this question for you, since Ricardo doesn’t have as much experience as I do in the Latin American fashion industry?”

Jessica nods to Lidia to go ahead. Lidia begins with the basic economic information Sean briefed Jessica on earlier. Lidia goes on to say, “There are a group of trained workers ready, willing, and able to hit the ground running with the reopening of the factory, and I believe the Beauty Boutique’s designs would be readily accepted and welcomed in Latin America, if the design you are wearing tonight is a representative example of the rest.”

Jessica smiles and asks Lidia, “How many of these workers will still be ready to work in six months? I’m sure many will move on to other jobs in the area after that amount of time.”

Before Lidia considers the implications of her statement she blurts out, “What other jobs?”

Ricardo snaps at her in Portuguese. “Mind your place, woman! You’ve said too much!”

Jessica looks taken aback. “Thank you, Lidia,” she says, then turns to Ricardo and asks, “How long would it take to get the necessary permits or permissions from the Brazilian government to be up and running, and how much would be needed in payoffs?”

Ricardo regains his composure and replies, after a final glare at Lidia, “A couple of months and probably one hundred thousand dollars, if you wanted to be up and running in less than six months.”

Jessica says, “I understand. And what are you willing to do for me if I decide to lease this facility?”

Ricardo smiles and begins with bullshit. “Well, there are several businesses interested in this facility.” Jessica watches Lidia’s head snap toward Ricardo at the statement and knows for sure he’s bluffing. She concludes she is currently the only viable candidate interested in the factory, but she listens to his speech anyway. Ricardo explains how this is a state-of-the-art building, in high demand, and he isn’t in a rush to lease it to just any business. Instead, he wants to make sure he has the right business leasing his property.

Jessica is very patient with Ricardo, but after forty-five minutes of hearing him expound upon the facility’s virtues and potential clients, she can’t take any more. “Ricardo, do you want to discuss the deal parameters or not?” Ricardo nods yes, his thin-pressed lips giving away his annoyance at being interrupted.

“Very well. Allow me to outline what I suspect,” Jessica continues. “You have a wonderful building, and I am interested in it. I haven’t tried to bullshit you about that fact, but I’m also not naïve or stupid. I suspect I’m your only viable candidate right now, and the longer it sits empty, the less valuable it becomes, for several reasons. First, the longer those machines sit unused, the more they are likely to experience mechanical problems when they are fired up. Second, you have a ready-made workforce of factory workers who haven’t relocated with Nike for a reason. Either they weren’t welcome to move with Nike, in which case I probably don’t want them either, or they couldn’t for whatever personal reasons. In either case, they will need to get jobs to help support their families. If they do, the probability of having to remodel the facility only increases. Finally, this factory, as lovely as it is, is located quite a distance from the major fashion industry markets in Brazil, which increases shipping cost to the producer. You really only have forty thousand square feet of production space. The rest is storage, retail, and administrative. If you aren’t ready to discuss possible parameters, that’s fine, but let me tell you what I’m thinking. I would be interested in leasing the entire facility on a very long-term basis and investing the two hundred and fifty thousand dollars necessary to make the modifications. I would pay rent at thirty U.S. cents per square foot for the usable production space, fifteen cents per foot for the administrative space, and five cents for the storage and retail space, which in my mind is still only storage space. This equates to eleven thousand, five hundred and fifty dollars per month. I would be willing to entertain ten thousand dollars a month and agree to step up the rent to existing prices when the additional square footage becomes operational production space. I would also entertain a specific percentage rent increase beginning after the second year, but it must be a fixed percentage. I would also require a right of first refusal on any sale of the property.” She pauses, giving Ricardo a chance to process the agreement she has laid out.

Ricardo smirks, then turns to Lidia and, in Portuguese, says, “This woman is out of her mind if she thinks I’m going to jump on this offer right away.”

Lidia responds, “Ricardo, you know that’s a reasonable offer and she would be paying just a little less than the previous tenant was paying for a brand-new facility. Furthermore, you know she’s right that even if you sell the production equipment, you’ll make more leasing it for the long term. Additionally, you must consider everyone here that really needs this employer in order to survive.”

A slight snarl curls Ricardo’s top lip. “Mind your own business. I’m not interested in your assessment of potential rent schedules or the needs of the local unemployed.” Turning to Jessica, he nods, smiles, and says, “I don’t think we have an agreement, but we have a starting point from which we can negotiate.”

She gives him a tight smile in return and replies, “Well, Mr. Montes, I believe I have made a fair offer. Perhaps you could send whatever proposal you find agreeable to my office in San Francisco? However, I can assure you my offer is fairly firm, so any major deviation from those terms will be rejected outright.” Catching Eduardo’s eye, she motions for another brandy, wondering if she can deal with a man who speaks so negatively to another human being.

Ricardo responds, “I am not accustomed to acquiescing to straight-out demands.”

Jessica smirks and takes a sip of her new drink. “And I am not accustomed to playing games. Mr. Montes, either my terms are acceptable, or at least close, or they aren’t. Either way, it’s okay with me. I’m not interested in spending much time in concluding if we can come to terms or not. I know, roughly, what works for me, and we are either in the ballpark or we’re not. So, are these numbers in your ballpark, or should I begin looking elsewhere?”

Ricardo clenches and unclenches his fists, then grinds out between clenched teeth, “Ms. Silva, I’ll need some time to consider your proposal, but I think it is something we can work with. However, this attitude of yours—”

At this point, Sean interrupts, “Well, I think this has been a very productive day. Shall we all relax and enjoy the beautiful evening.”

Everyone agrees, but the tension diminishes slowly. The butler makes a point to replenish their drinks frequently as they begin to appreciate the warm evening air.

“I think I will take a look at that lovely garden at the end of the pool,” Ricardo says, rising. Lidia takes her cue and follows with a sigh. As they peruse the garden, Jessica hears Lidia tell Ricardo in Portuguese, “You better not let this company get away. She offered you a more than fair deal, and you know it.”

Ricardo replies, “I have no intention of letting this deal slip by me, but I don’t want to appear anxious, and I don’t like a woman giving me what amounts to an ultimatum. I want to try and get a little more money out of her. If she says no, I’ll take the deal she offered, but on my terms.”

Lidia sighs with relief and says, “Great, I’ll let the factory women know it looks very promising.” Jessica smiles slightly to herself, knowing she has a deal if she wants it. Now all she has to do is figure out how to pay for it all.

Once Ricardo and Lidia return to the veranda, conversation turns to more pleasant matters.

“How long will you be in Brazil?” Ricardo asks Sean. “Have you made any plans to show Jessica around?”

“We will leave early Monday morning. We have a few more meetings to deal with tomorrow, and I want to speak with Hugo and some local government officials—”

Jessica suddenly has a great idea, interrupts, and asks, “Lidia, could you arrange a meeting at the factory with as many of the displaced workers as possible? Perhaps in the late afternoon tomorrow?” Lidia nods yes.

Sean returns to his conversation with Ricardo. “I promised both Mark and Bonnie I would leave Sunday open so Jessica could see the sights if she wished.”

Ricardo seizes the opportunity to put pressure on Jessica about the factory. “I could act as your tour guide and show you all Brazil has to offer,” he suggests with a sleazy smile.

She manages a smile in return and replies, “Perhaps next time. This Sunday I just want to lie around this magnificent pool and do nothing. I’m not accustomed to working at the pace Mr. Green set for us this trip.”

Ricardo laughs and says, “I seriously doubt that. During your next visit, it would be my pleasure to show you a good time.”

“We’ll see,” Jess replies, hiding her expression in her glass.

Eduardo appears and asks if anyone would like coffee. All agree that coffee would be nice, and all compliment him on the dinner. He smiles and says he will have the chef help him serve the coffee so everyone can pay their compliments to him, personally. The chef is pleased to hear his meal was regarded highly and invites them all back again.

After coffee, they call it a night and bid each other good evening. As Ricardo and Lidia are leaving, Sean asks Jessica if he can have about an hour of her time to recap the day’s events.

“Of course,” she says. Sean asks that two creamy grasshoppers be brought to them in the colossal, yet comfortable living room.

“I’m glad you liked the factory, but I believe you should have reserved your negotiations for a later date. Ricardo will never accept an offer so demanding,” Sean tells Jessica after they are seated with their drinks.

She laughs out loud. “Tell you what… I’ll bet you dinner, winner’s choice as to the restaurant, and drinks that Ricardo will take my deal.”

Sean chuckles and replies, “You’d better be fairly sure, because I think you’re going to owe me dinner, and I’m not cheap.”

Jessica sips her grasshopper, eyes sparkling. “Call it woman’s intuition. And neither am I.”

His lips quirk into a grin, and he wonders for a moment if she is flirting with him, then disregards it. “So, tell me, are you committed to establishing a production facility here?”

She nods. “I needed to know whether or not the factory expenses were viable, and at what I quoted, everything looks really good on the production side, even if the factory workers weren’t trained, and when talking with Lidia, I decided they are probably pretty close to what I would expect in trained production workers. If I’m correct, the deal I offered would be terrific for Beauty Boutique Clothing.”

Sean considers. “That might be so, but Ricardo isn’t going to take that deal because you challenged him in front of everyone. His ego won’t allow him to be treated in such a manner. He is a macho, Latino male who always needs to be in control.”

Jess raises an eyebrow and says, “He’ll accept my deal because he knows it’s fair, and he really doesn’t have any other viable options in the works right now, no matter how much he bluffs that he does. What’s on the agenda for tomorrow?”

Sean gives her a look. “We’ll see. I suggest we have breakfast around 8:00 a.m. and start our meetings at 11:00 a.m. We have a lunch meeting here at noon with Hugo Montes and two of Brazil’s government officials. Then we can meet your factory workers at 4:00 p.m. Dinner is at seven, and we’ll recap all of our business meetings, and then Sunday is all yours. If you want to go somewhere, I can arrange that. If not, you can lie in the sun all day. Whatever your heart desires, my lady.”