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).
Secret internal memorandum discussing car pricing strategy, profitability, and the future model programme after the B.III launch.
| Identifier | ExFiles\Box 148\2\ scan0036 | |
| Date | 12th November 1938 | |
| 1260, 400 and R-R's Policy SECRET. By.{R.W. Bailey - Chief Engineer} from Rm.{William Robotham - Chief Engineer} c. Hs.{Lord Ernest Hives - Chair} Rm{William Robotham - Chief Engineer}5/R.12.11.38. PROGRAMME AFTER LAUNCHING B.III. We understand that, in spite of the progress made in reducing material and labour costs, the £950 car is as yet not an accomplished fact. It also appears that for the next twelve months the Works will not be in a position to make a large number of cars, and the £950 car depends on a minimum quantity, otherwise the overheads cannot be got down sufficiently to justify the price. Though the £950 car has not yet been reached, it is clear that we could sell any of the cars in the rationalised programme complete with a standard body at £1250, and make a generous profit (assuming a £250 body). It is, we believe, an unfortunate fact that our latest model is not being sold at a profit at £1600, nor is the P.III at £2500. It occurs to us, therefore, that after B.V has been put on the market, the next model to be launched should satisfy the following conditions:- (1) Sell at a generous profit. (2) Not upset the future programme. (3) Not rely on large quantities to make a profit. It would not seem to be a great misfortune if this new car interferes somewhat with the Wraith sales, as at present, selling Wraiths does not seem to be a profitable proposition for R.R., but it should not interfere with the Wraith Replacement sales, as at anything like the existing 25/30 price, the Silver Wraith should be a most lucrative model. The following possibilities seem to be available:- (A) Put the B.50 as proposed on the market at £1200. The only objection to this is that, if, in two years' time, it was desired to market a £950 car, dropping the price of this model by £250 might not be considered a very desirable procedure. | ||