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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).
Letter from Sanderson & Holmes Ltd. discussing competitive pricing and proposing a new charging structure for future orders.

Identifier  ExFiles\Box 109\5\  scan0042
Date  25th April 1938
  
- cont'd -

April 25th, 1938.

It is also possible that our competitors, in their efforts to cut below our estimates, may (through lack of knowledge of the work involved) have submitted a figure to which they could not regularly work. This possibility we believe you will take into consideration.

For future orders, we propose to base our charges on bare cost, plus what in normal circumstances would be considered a totally inadequate overhead addition, and this new arrangement enables us to pass credit of £6. 4. 8. against the amount of our invoice numbered 3/5017 for the job in question, making the total £55.15. 0. If the figure represented by the extras underlined is taken from this total, and a sum of approximately £5 added to our competitors figure, (this representing additional work carried out by us on the job) we think a reasonable comparison would be obtained.

The writer would greatly appreciate a line from you after your consideration of the above, and sincerely trust that our endeavours will merit a continuance of your support.

Yours faithfully,
p.p. SANDERSON & HOLMES, LTD.,

J.H. Sanderson.

MANAGING DIRECTOR.
  
  


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