[LB051886], Letter from Alfred Ord Tate to Thomas Alva Edison, January 13th, 1892
https://edisondigital.rutgers.edu/document/LB051886
→ View document with UniversalViewer
→ View document on Archive.org
→ Re-use this digital object via a IIIF manifest
Title
[LB051886], Letter from Alfred Ord Tate to Thomas Alva Edison, January 13th, 1892
Author
Recipient
Date
1892-01-13
Type
Subject
Folder/Volume ID
LB051-F
Microfilm ID
142:705
Document ID
LB051886
Publisher
Thomas A. Edison Papers, School of Arts and Sciences, Rutgers University
Has Version
Item sets
Transcription
809/893
CPW
January 13th, 1892.
Thomas A. Edison Esq.,
Laboratory,
Orange, N.J.
Dear Mr. Edison:-
In re. duplicating. I find that we have a sufficient number of records to take care of orders for some time to come, 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 $15,000.00 for these records during last year. Until we have a more definite market there is no use in 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 week.
The following is a close approximate estimate of cost based upon our experience at Silver Lake.
Four duplicators in use.
Capacity of each, 40 records per day.
Total output one day, 160 records.
Cost (per day)
Power & Heat: $3.00 Man (packer & helper) $1.75
Girl (duplicating) $1.25
Cost 160 blanks, 10¢ each from Phono.
Works. $16.00
6¢ each for N.A.P. Co.
$9.60 25.60
Inspection 1.00
Packing (3¢ each) 4.80
Walter Miller 4.00
Cost of Master records on basis that
each of these costs $2.00 and will furnish 100 duplicates---160 at 2¢ 3.20
Rent 1.00
Add for breakage & other contingencies
10% 4.50
Total cost of 150 records $50.10
Or say 31 cents each.
Cost duplicating (deducting blanks) 15¢ each.
To double this output the following additions would be necessary:-
Estimate as above $50.10
Girl (duplicating) 1.25
Blanks 25.60
Packing 4.80
Masters 3.20
Total cost 320 records $84.95
Or say 25 cents each.
Cost duplicating (deducting blanks) 10¢ each.
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 each 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,
A.O. Tate
No Enc.
CPW
January 13th, 1892.
Thomas A. Edison Esq.,
Laboratory,
Orange, N.J.
Dear Mr. Edison:-
In re. duplicating. I find that we have a sufficient number of records to take care of orders for some time to come, 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 $15,000.00 for these records during last year. Until we have a more definite market there is no use in 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 week.
The following is a close approximate estimate of cost based upon our experience at Silver Lake.
Four duplicators in use.
Capacity of each, 40 records per day.
Total output one day, 160 records.
Cost (per day)
Power & Heat: $3.00 Man (packer & helper) $1.75
Girl (duplicating) $1.25
Cost 160 blanks, 10¢ each from Phono.
Works. $16.00
6¢ each for N.A.P. Co.
$9.60 25.60
Inspection 1.00
Packing (3¢ each) 4.80
Walter Miller 4.00
Cost of Master records on basis that
each of these costs $2.00 and will furnish 100 duplicates---160 at 2¢ 3.20
Rent 1.00
Add for breakage & other contingencies
10% 4.50
Total cost of 150 records $50.10
Or say 31 cents each.
Cost duplicating (deducting blanks) 15¢ each.
To double this output the following additions would be necessary:-
Estimate as above $50.10
Girl (duplicating) 1.25
Blanks 25.60
Packing 4.80
Masters 3.20
Total cost 320 records $84.95
Or say 25 cents each.
Cost duplicating (deducting blanks) 10¢ each.
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 each 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,
A.O. Tate
No Enc.