| Description | (Issued for Boulton & Smiths.) (3 ff)
Sir,
I received your two favours of the 4 and 5th instant in due course, and should have immediately replied to them if the unfortunate accident which has happened in our family, of the death of my sister, had not intervened and for the time totally turned aside my attention from business. I hope you will deem this a sufficient apology, and that my apparent irregularity in the present instance will not in future deter you from applying to me upon any occasion in which I can either give you information or assistance.
The difference between the terms allowed by Boulton & Smith to you and those allowed to the Birmingham factors is very trifling indeed, and rather in your favour than theirs, as a fresh consideration of the subject will readily convince you. Supposing one hundred pounds' worth of goods sold by B. & Smith to each of you, the accounts will stand thus:
£
Your commission of 5 per cent. upon £100 5
Discount granted the shopkeeper, 5 per cent. upon £100 5
B. & S. del credere for bad debts upon £95 at 2½ per cent. 2..7..6
Total allowance per £100 upon goods sold by you £12..7..6
Factor's discount of 5 per cent. upon £100 5
Ditto's commission and del credere of 7½ per cent. upon £95 7..2..6
Total allowance to the factor upon £100 of goods £12..2..6
So that you are in fact allowed 5/- more upon every hundred pounds' worth of goods than the factor. And if, under this disadvantage, the latter actually offers the latchets for sale at the same price as you do, it is evident, when you take into consideration his travelling expences, generally estimated at 2½ per cent., and del credere at 2½ per cent., that the remaining 2½ per cent. cannot be a sufficient compensation or inducement for him to prosecute the business to such an extent as to injure you, who have moreover the advantage of being constantly upon the spot, of having at all times a stock on hand, and of being always first supplied with the new patterns. I know it is the practice of the factors to sell some of their articles even at a losing price, not only with a view of recommending themselves and discrediting others, but that they may make up their prices upon other articles. However, you must be sensible that this mode of carrying on business cannot be lasting, nor can it be done to an extent which will materially interfere with you.
With respect to the London wholesale dealers who send travellers into the country, it is a very different and delicate point to settle in such a way that they shall not interfere either with you or the Birmingham factor, for were they allowed the 7½ per cent. it would be in their powers to undersell you in London, as they have no travelling expences to deduct, and to sell upon equal terms with yourself, which I apprehend would not at all answer your purpose. The only remedy would be to supply the London merchants through your hands, which cannot be done to the advantage of Boulton & Smiths, as you would naturally expect your commission also upon the goods sold them, and it besides might indispose the shopkeepers, some of whom I understand supply the country shops and whom it is the mutual interest of you and of B. & S. to keep in good humour. I therefore apprehend that upon the whole it will be prudent to forego the advantages to be derived from the recommendation of our articles by the London merchants, rather than expose ourselves to endless confusion, disputes, and perhaps in the end losses, between them, you, and the Birmingham factors. If the London shopkeeper should apply directly to us, we shall furnish him upon the same terms that you do, and allow you your commission, as we conceive that the supplying of the London shopkeeper, and of the shopkeeper alone, is exclusively your right; to the London merchant we shall allow the extra 5 per cent. discount only, and to the Birmingham factor the 7½ per cent., as at present, by which means we hope to keep all things smooth and in order, and I doubt not that you will upon farther consideration see the propriety of this plan.
Whenever you see in the shops any thing that is new, I presume you will consider it your own interest, as well as Boulton & Smiths', to purchase it for their account.
I remain, respectfully, sir, your obedient servant
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