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).
Pricing, costs, and discount strategy for a combined luggage grid and spare wheel carrier.
| Identifier | ExFiles\Box 68\3\ scan0122 | |
| Date | 14th March 1927 | |
| ITB to REC LWS (Copy to IHS) (Wm for OSG) Sg{Arthur F. Sidgreaves - MD}16/W/14.3.27. Re: Wheel at rear and Luggage Grid. Referring to the Standardisation Sheet attached, the information given thereon in regard to prices, was not at all clear. BY.{R.W. Bailey - Chief Engineer} agreed this and as the result of further correspondence, we have succeeded in elucidating the position. In order to enable the wheel to be carried in this position, extension pieces and gussets with cross tube at the back, have to be added to the main frame, the extra cost of which, after allowing for present parts which would not be required, is given as .................... £5. 16. 0. The estimated Factory cost of the new type Luggage Grid to be used in conjunction with the Wheel Carrier, and the Wheel Carrier, is given as .................................... £9. 12. 8. T o t a l .......................................... £15. 8. 8. When the Wheel is carried in this position, it will be necessary to have a side Wheel Carrier for use when the Luggage Grid is occupied and the Spare Wheel displaced. The cost of the Side Wheel Carrier is ......... £ 2. 15. 6. T o t a l .................................... £18 4. 2. The Cost price of the present "W" type Luggage Grid we are selling, is ...... £5. 1. 2. and the only waywe were successful in selling this, was to increase the selling price very considerably so as to enable us to give an attractive discount to the Coachbuilders. For this purpose, we add 80% and give the Coachbuilders as much as 33 1/3% discount. If we had not done this, it would have paid them better to have gone on buying their own Grids. It will therefore be seen that if we are to persuade the Coachbuilders to buy the R.R. Combined Luggage Grid and Spare Wheel Carrier, it will be necessary to add approximately the same percentage to the total cost of £18-4-2d. which means that we shall have to sell the outfit for £32-15-6d. and then when we give 33 1/3% off, we shall only be making a nominal profit of £3-13-0. - or 15% on the nett Factory Cost. - 1 - | ||