FRED MEDART
MANUFACTURING Co.

 

 

 

POTOMAC AND DE KALB STREETS SAINT Louis, Mo.

E. J. MEDART
PRESIDENT

September 27, 1939

Dr. Forrest C, Allen,

‘Director of Physical Education and Recreation
University of Kansas

Lawrence, Kansas

My dear Dr. Allen:

Roy has shown me your letter of September 25 and I am answering it
without.any suggestion on his part that I do so,

We did not strike accidentally upon the prices we contemplate apply-
ing to the several types of Goal-Hi. These prices all resulted from
very careful calculation.

First of all, we have to give a dealer or distributor discount up to
33-1/3%; we pay the freight; we pay royalties, and we hope they will
be substantial; and we start off with a higher cost unit than the one
you were comparing the Goal-—Hi with.

Now, the next question is who is going to know anything about Goal—Hi
unless we pump a lot of money into advertising and sales promotion.
You talk about the cost of $200.00 for the rules book, That, my dear
man, is only a drop in the bucket. My first appropriation made to Roy
the other day for sales promotion on Goal-Hi was $5,000.00. We have
to sell quite a few units to get that back at an average of a few dol-
lars per unit allowed for advertising and sales promotion.

/ When this $5,000 is used up and it appears to me that additional funds
are necessary to promote this new game, then new funds will be appro-
priated,.

We go into this thing gambling considerable money on possible success,
We think we are right but this will either be a big thing or nothing.
I can drop a ‘dead one" as fast as anybody in the world,

When you were in St. Louis recently, I thought I explained to you, to
your understanding, how we could sell our standard equipment at a fig-
ure comparatively close to our cost; the difference between selling
standard equipment in that manner and selling an item like Goal-—Hi as
a result of intensive and expensive advertising.

STEEL LOCKERS___ STEEL WARDROBES____ STEEL SHELVING____GYMNASIUM APPARATUS____GYM SEATS____BASKETBALL BACKSTOPS____PLAYGROUND APPARATUS