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).
The challenges and opportunities of selling cars in the U.S. market, comparing prices with American competitors.
| Identifier | ExFiles\Box 19\4\ Scan241 | |
| Date | 1st January 1931 | |
| -2- Hs.{Lord Ernest Hives - Chair}1/M.1.1.31.Contd. the war without an elaborate organisation like R.R.Inc. The conditions however are so entirely different now that in my opinion the number of cars we should sell in America would be very small indeed without a complete selling organisation. The other point we have got to remember is that whereas the American car prices have been considerably reduced, our prices are now double those which existed before the war. The chief obstacle I saw against selling more cars in U.S.A. is the high price which we have to ask for our goods. One cannot justify to the customer the selling price of our cars in U.S.A. It is simply the wonderful reputation which R.R. enjoy that enable them to sell the cars they do. There are quite a large number of people who can quite well afford and would like to own a R.R. car but they will not do so because they consider they would appear ridiculous to their friends, and would themselves feel foolish to pay such a high price for a motorcar. During my visit I went to the New York Show, which is held for cars with special Custom coachwork. When you see a Cadillac, Packard, Lincoln, with a Custom built body, as regards general lines, appearance and finish, we can show nothing very much better. As regards price, one almost hesitates to make a comparison. A completely equipped 16 cyl. Cadillac can be bought for approximately £1500, 12 cyl. Cadillac for £1300, Packard and Lincoln for £1100. This is with good class coachwork. The price of R.R. cars at the Show were £3500 to £3600. This is for Phantom I. For the Phantom II imported car the price will have to go up. During the five weeks I was there they sold 23 new PhantomCodename for PHANTOM I I cars. Considering the conditions existing at the present time this is reasonably good, but nothing to what it ought to be when one considers the wealth in the country and the fact that there are 28,000,000 (million) cars registered in U.S.A. There must be some solution whereby we can sell our products in this huge market. I quite agree with Bs.{A J. Barnes - Assistant Manager} that the only hope for R.R.Inc. to succeed is to increase their volume of business by selling the 25 HP. They do not want any convincing on this point. They are thoroughly enthusiastic about the possibilities of the 25 HP. The two demonstration cars which were sent out by us to test their market have been round to a number of depots and the universal reply is that they want to be in a position to sell 25 HP. cars out there as soon as possible. I see no brighter prospect anywhere for both companies than a satisfactory left-hand car for | ||