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).
To a Mr. Beaver discussing the problems of selling cars in the American market, including pricing, competition, and future profitability.
| Identifier | ExFiles\Box 11\3\ 03-page355 | |
| Date | 1st January 1930 guessed | |
| COPY. To Mr. Beaver, The problem of Rolls-Royce in America is to be able to offer to the public a complete Rolls-Royce car (consistent with the product offered in England, except left-handed) at a price which not only can be justified on basis of cost, but more important, which will create in the mind of the prospect or owner a feeling of "sound value and investment". Regardless of the odium (from our viewpoint) of comparisons, nevertheless the American buying public has in the past and probably will continue to measure the soundness of their buying judgment by comparison of values according to standards established by themselves. The outstanding "sales restriction" in connection with increased volume of Rolls-Royce sales in America has been that the prosperous "conservative" element has not been convinced that in the purchase of a Rolls-Royce car, at the price offered, he or she is receiving in value the great increase over several high-grade American designed and manufactured cars. The tendency in America at present is towards more cylinders, increased power and acceleration, better riding comfort and more attractive coachwork, but all this at decreased net selling price. During the year 1929 the American Company delivered into the hands of owners 338 new cars at an average net price each of 15,601 dollars. During the first ten months of 1930 the deliveries were 189, at an average net of 14,720 dollars each. The question therefore is :- "Will it be possible for Rolls-Royce in America to increase its net price and continue to be able to sell sufficient volume to be financially successful?" The profits to the American Company from sales during the year 1931 must come from the sale and delivery of such volume of Phantom II as is possible at net price exceeding a cost based on the contract price of £1330 per chassis at Derby. The cost of the Phantom II chassis imported complete is definitely established by three major controlling factors : | ||