ag FRED MEDART MANUFACTURING CO.

Dr. Forrest C. Allen
Lawrence, Kansas

The above suggestion calls for a little give-and-take on both sides, with the
Company giving by far the most of the few cents involved between the straight
5% and the suggested compensation mentioned above. For example, on No. 907
standard as listed in the catalog in your possession at $29.50, which would be
the price that would apply if sold direct to the user without an agent or sales-
man entering the picture, except for the fact that freight would be deducted

(we will ignore freight for the moment and just apply the 5% royalty commission
to the $29.50 figure), you would earn, under the old 5% basis, $1.7. On our
suggested change-over we would pay you $1.0.

On the sale of this same standard through a dealer at $29.50 less 30%, or at a
net price of $20.65 (again not considering the freight for the sone’) you would
earn, on the basis of 5%, $1.03, as compared to our proposal of paying you a
straight royalty commission of $1.00.

Swinging over to the less expensive Goal-Hi standards, our No. 918, No. 919, No.
920, und No. 917, yow royalty commission at a straight 5% on a $21.75 price,
would be $1.08 as compared to the $1.10 we are prepared to pay you. And if these
same numbers were sold through a dealer your commission on the basis of a net cost
of $15.23 (list less 30% selling commission) would be 76 cents as compared to the
$1.00 we offer you.

You understand that in no case have I deducted the freight from the St. Louis
prices, which would, of course, be done if you hold to the contract as it now
exists between us.

Frankly, Phog, I am hopeful that you will accept this proposition. I think it is
favorable toyou and it would certainly simplify our auditing problem if we credited
you with a flat sum of either $1.40 or $1.00 per standard, regardless of any other
factors. Will you please give this some consideration and let me hear from you

at your early convenience? I think it hardly necessary to tell you that we would
not offer this counter proposition to you if we did not think it was equitable to
you and worth the slight difference in commission in your favor without a compen-
sating factor in the way of our auditing expense. (Incidentally, I also think it
hardly necessary to point to the fact that our books are always open to you for an
audit at any time you should consider such a move necessary. We have been in busi-
ness for about 67 years and our 80 or more sales representatives have had ample
reas ms to place confidence in us just as we believe you will have in us as our
association develops.

Kindest regards.
Yours very truly,

FRED MEDART MANUF.

   
 
 
 

Frémotion Manager
REW/AC