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 discussing selling price, profit, and lack of internal support for the 20/25 car model project.
| Identifier | ExFiles\Box 19\4\ Scan190 | |
| Date | 11th September 1930 | |
| Mr.H.C.Beaver. Sg{Arthur F. Sidgreaves - MD}7/E11.9.30 - 2 - 2253 out what the selling price would have to be and showed a figure of $10,953, or approximately £2190, which is very different from £2600. Even in the figure you showed, there is $2190, or approximately £440 per car for selling expenses and profit, which to my mind is unreasonable, seeing that, as I have so often pointed out, your Company could market the 20/25 without increasing your selling expenses to any material extent, that is to say, they would use exactly the same organisation as is in existence for marketing the large car. It seems to me that, if your people are going to expect to make such a large gross profit per car, you are going to kill entirely the prospect of working up the business before you start. We, of course, could not hope to make anything like this amount of profit on the average sale of complete cars. In your letter you asked Mr.Wormald to let you know how the left-handing of the 20/25 has progressed. It is quite correct that, before going to America, I told Mr.Wormald that they could go on with this work, but at that date I thought that your people were really seriously interested in this 20/25 and would be prepared in due course to place an order for them. You will, however, know xxx that, whilst I was in America, I received very little encouragement on this subject. Mr.Fuller in fact definitely stated that such a contract would not be placed. You yourself did not give me very much encouragement and Mr.Hosac always seemed to be very lukewarm on the question of the 20/25. The only people who did seem keen were the actual Sales Managers at the various depots, but unless of course the Administration of the American Company are prepared to go ahead with this job, it is not much use my taking notice of what the Sales Managers have to say on the subject. | ||