[D9240AAH], Letter from Alfred Ord Tate to Thomas Alva Edison, January 13th, 1892
https://edisondigital.rutgers.edu/document/D9240AAH
Transcription
[TAE Marginalia] I think we are safe in offering at 35c in both of 1000 per week. We can get round box + save once cent + I think I can make a cheaper cylinder with good surface + divide saving with Phono works. E Thomas A. Edison Esq., Laboratory, Orange, N. J. Dear Mr. Edison:- In re. duplicating. I find that we have on hand a sufficient number of records to take care of orders for some time to come, and I have therefore instructed Walter Miller to close down and cut off all possible expense. He will have to keep Julia of course, but the others will go at the end of the week. I think that I can shortly make a contract to supply all records for slot machines in New Jersey, New York and New England. The New York Phonograph Company spent upwards of $15, 999 for these records during last year. Until we have a more definitive market there is no use in our frittering away money in duplicating. I would like to know now what price I can name for a supply of not less than say 1000 records per work. The following is a close approximate of cost based upon our experiences at Silver Lake. The following is a close approximate estimate of cost based upon our experiences at Silver Lake. Four duplicators in use. Capacity of each, 40 records per day. Total output one day, 160 records. Cost (per day) Would you be willing to name a price of 35 cents each for not less than 1000 per week? The cost of these would be 31 cents watch on above basis. The margin of profit seems small, but we will have to carry little or no stock and have not got to provide for the expense of any selling organization. I had hoped that we would be able to sell these duplicates at not more than 30 cents, as I believe that cheapening them will increase enormously their use and sale, but the above indicates that we cannot do this at present. It is quite probable that we can get the North American Company to take as their portion not more than 3 cents per record instead of 6 cents as now. Please let me hear from you as I want to take up the matter of New Jersey and New York and New England at once. Yours truly, Alfred Ord Tate.