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).
Internal memorandum discussing supplier quotations and pricing proposals for vehicle frames.
| Identifier | ExFiles\Box 148\2\ scan0018 | |
| Date | 19th October 1938 | |
| -2- ROY{Sir Henry Royce}/Les.3/B.19.10.38 (Contd:- As can be seen from Thompsons' various quotations, their organisation cannot give us the correct price of this frame. For instance, for his original quotation, Major Thompsons was only allowing 100% overheads, and 10% profit. We are therefore certain that Thompsons will not be able to make the Bentley III Frame a profitable item. As Thompsons have produced all our experimental B.III and B.50 Frames, and also the Phantom III Frame and Bentley II Sidemembers, it would appear to be a distinct advantage if they produce the B.III Frame. We are also sure that they would be far more secretive over the price of the frame, as they would not be proud of accepting the order at the necessary figure. However, we are sure that Sankeys' can make this frame satisfactorily, including a 10% profit for themselves. We should naturally prefer our frame to be made at a profit, particularly as we are hoping the quantities of this frame will be much larger. We also consider Sankey's increased efficiency would give us valuable information concerning economical pressings, such as it would be impossible to obtain from Thompsons. In considering that the B.III frame should be produced by Thompsons, it is thought to be unfair to insist on a price as low as £6. 17. 6d, as this figure is less than the correct price per lb. of an economical frame. From an investigation of other people's frame prices, we find that the correct price per lb. of a frame with brackets, is approximately .48s. - Jaguar Frame (Sankeys) @ £7. 10. 0d = .474s. per lb. Daimler 15-HP Frame (Rubery Owens) @ £5. 16. 0d = .478s. " " We therefore propose that Thompsons should be paid £7. 4. 0d for the frame in question, which equals .483s. per lb. and is thus slightly more generous than the figure paid by Jaguars and Daimlers. Before fixing the final cost with Thompsons, we propose to have an agreement on the following lines:- (a) Price of the frame is to be £7. 4. 0d, tool cost £3,250 - Frames to be delivered at R.R.Derby. (b) Thompsons must be ready to supply up to 6,000 frames at the above price allowing for rise or fall in the cost of labour or material. (c) The first two orders to be for quantities of 100 and 400 respectively, after which orders will be placed for quantities of 500. (Contd:- | ||