From the Rolls-Royce experimental archive: a quarter of a million communications from Rolls-Royce, 1906 to 1960's. Documents from the Sir Henry Royce Memorial Foundation (SHRMF).
Analysing the costs and viability of selling Price's Oil in France.
| Identifier | ExFiles\Box 144\1\ scan0077 | |
| Date | 22th June 1922 | |
| Re: SALE OF PRICE'S OIL IN FRANCE. Ps1/JP. 22/6/22. In reply to Sg{Arthur F. Sidgreaves - MD}15/BM/10-6-22. 1°- Approximate rent of a store outside Paris suitable for storing 100 barrels....................Fcs.4000 per an. 2°- At Nice last season we sold approximately Kgs.500 assuming we sold an equal quantity at Biarritz(doubtful) we should dispose of Kgs.1000 or 2400 gallons on which we should lose Fcs.220.-paid in Octroi dues by storing in Paris. This, of course, is hopelessly out of proportion to the cost of a Store outside Paris, and these figures make the proposition of such a store ridiculous. 3°- If rent is Fcs.4000 per annum, and leaving out anyother incidental expenses, such as insurance, etc., we should have to sell 13.5 barrels of 40 gallons, or Kgs 2500, all retail sales to cover rent.(I have not taken into account 5 % commission to drivers) Retail sales out of Paris would be rare. We should be obliged to make NICODEMI,Nice, and ROSEIRO,Biarritz, our sub-agents,and sell to them at agents' rates, in which case our gross profit would be reduced by 66 %, hence we should have to sell 40 barrels of 1600 gallons or nearly Kgs 7000, before the rent is covered. I regret I cannot quite understand your remarks in paragraph "2" of your memo. ✓ Works have already had samples sent them, and it is as easy for us to send a quantity of oil to England as for us to import to France. I understood from Mr.HIVES, that it was the analysis and specification of the oil that were most necessary in arriving at a decision. We have been trying to get a suitable oil for three years, to recommend, and it is essential for the good running of our cars that we get a first class oil. The further we go into the proposition of importing oil, the less attractive it becomes, unless we are given the sole agency, and do a large and interesting business as Salamanca in Spain. In a previous memo"Ps3/JP.24/5/22" I wrote : " In view of certain fundamental arrangements, which we should have to make if we import oil from England chiefly the hiring of a local outside the gates of Paris for the storage of oil, which may be sent to the provinces and to avoid the payment of Fs.{F. Steele}22.-per 100 Kg.-octroi duties into Paris- is it advantageous to push Prices'oil if we can obtain a suitable oil in | ||