Request for an agency

In this letter a British retailer is asking an American manufacturer if he can represent him in the UK. Notice that he explains who he is; tells the manufacturer where he saw the product; convinces him that there is a market; and suggests terms.

Glough & Book Motorcycles Ltd.

31-37TradersStreet, Nottingham NG1 3AA Registration 733152

Directors: B. Glough, T. Book VAT Registration: 878 5662 74

Telephone: 0602 77153 (6 lines)

Telex: 45513

Fax: 060248865

Sales Manager 1 March 20-

Hartley-Mason Inc.

618 West and Vine Street

Chicago

Illinois

U.S.A.

Dear Sir,

We are a large motorcycle retail chain, with outlets throughout the UK, and are interested in the heavy touring bikes displayed on your stand at the Milan Trade Fair recently.

As you are probably aware there is an increasing demand in this country for machines of this type due to increasing traffic congestion, environmental problems and the acceptance of the motorcycle as a common means of transport, rather than just a teenage phase. And sales of larger machines have increased by more than 70 per cent in the last two years.

We are looking for a supplier who will offer us a sole agency to retail heavy machines. At present we represent a number of manufacturers, but only sell machines up to the 600cc range, which would not compete with the 750cc, 1000cc, and 1200cc models you make.

We operate on a 10% commission basis on net list prices, with an additional 3% del credere commission if required, and we think you could expect an annual turnover of more than £2,000,000. With an advertising allowance we could probably double this figure.

Our customers usually settle with us direct, and we pay our principals by bill of exchange on a quarterly basis.

You can be sure that our organization will offer you first class representation and excellent sales to guarantee the success of your products in this country.

We look forward to hearing that you are interested in our proposal.

Yours faithfully,

Hartley-Mason Inc.

President: J.R Mason D.F.A. Directors: P. Hartley Snr., A. Hartley Jnr.

618 West and Vine Street, Chicago, Illinois

Telephone: 216818532 Telex. 67712 Fax: 216 349076

Mr B. Glough 14 March 20—

Glough & Book Motorcycles Ltd.

31-37 Traders Street

Nottingham NG1 3AA

ENGLAND

Dear Mr Glough,

We were pleased to receive your letter of March 1 and to see that you were interested m the machines we produce.

The United States, like Great Britain, has also experienced an increase in motorbike sales, and like you we think that there is a vast market to be tapped for the heavy touring bike.

With regard to your offer, I should tell you straight away that we never use sole agencies anywhere in the world, but rely on merchants buying our products on their own account, then retailing them at market prices in their country. We, of course, offer a 30% trade discount off net list prices and a further 5% quantity discount for sales above $100,000. We have found sole agencies tend to be rather restrictive both for ourselves and our customers.

As far as advertising is concerned, you will be pleased to hear that we have arranged for an extensive campaign, which begins next month and features our heavy machines. We are sending dealers throughout Europe brochures, leaflets, and posters to hand to their customers, and this will be followed up by television advertising in May.

Our terms of payment are 60 d/s bills, documents against acceptance if the customer can provide references.

Once again, thank you for writing to us, and please contact us if you have any more enquiries.

Yours truly,

J. R. Mason

President

10.5.6

Date: 2016-01-03; view: 1169