Discounts John Val Val A. Browning Browning October 2], 1954 In our discussions yesterday Big is in favor of a straight across-the-board # increase with possibly other concessions in addition to our biggest accounts, He has some good logic in favor of his arguments and has given it sant lot of thought. Nothing has been decided as yet and will not be without Cgiving great weight to any of your arguments, I might say that the danger of Starting a price war with our competitors seems greatly decreased when it is considered that we would not be reducing our retail price. On the contrary, we would be increasing it. Price wars start when the retail prices are reduced, Also, we co business directly with the dealers, and our small dealers’ good will is very important to us as has been demonstrated this year. Before the war one of our greatest sales advantages came from the fact that we gave the dealer more discount than our competitors and insisted upon his maintaining prices as far as we legally could. After the war the demand was such for all types of shotguns that we abandoned this policy and took more ourselves. If we give all dealers more discount, we will simply be reverting to our very advantageous sales policy of before the war. co As for alloting advertising budgets to any accounts whether big or small in of discounts, this is exceedingly difficult to control. Nearly always when a dealer in any locality advertises our guns, he advertises other guns and items along with them. It would be impossible This plan, however, can be utilized to advertise our guns exclusively in some case with Marshall Fields this year. You will great note many from my memo things which to be fair to the Executive Committee that and settled our you I have in all cases. some extent with big accounts who way or another such as has been the not in I left minds as out a yet. I would like to get any ideas which you and Bruce might have on subject of discounts, because if any change is made, it should be done before introduction of the Double Automatic. I realize that in the case of this gun our contract specifically sets forth a formula tying the retail price to the price we pay F.N. The question is whether if we raise our retail price enough to give the dealer F.N. would be an additional content to let 5% with no increase in profit the stay is? price as it to us, whether