About this time we were made Agents for the Motor Cycle, Cycle and Brampton goods, and in the formulating of the policy, and actually laying down of the foundation of the correct establishment of those lines in New Zealand - which had never taken place before, it had always been haphazard - we found ourselves fully occupied, but not very profitably.
Our largest Renold-Coventry job installed in late 1932, at Mataura Freezing Works. From Turbine to Generator, 600 h.p. Has been at rest for 30 hours per annum only for ten years. We believe this is the largest wheel ever made by Renold, and the Drive one of the largest in the Southern Hemisphere.
At about this time again it so happened that friend Carlyle was not profitably employed, so again we employed his services, first in getting out a Service Catalogue for Timing Chains and other Renold goods, and next, in doing the necessary figuring and spadework in the marketing policy of motor cycle and cycle chains and Brampton cycle parts. Just a word about this policy as finally formulated. It may be as well to record that we decided we would on these lines control the price right to the retailer, in exactly the same way as we did with the Renold Industrial and the Ferodo. This, of course, was very much of an innovation with the cycle trade, an innovation that had been tried repeatedly and just as often failed. We were told that it would fail again. Our reply was that those that caused a failure wouldn't sell the goods, and when asked who would sell the goods if the wholesaler didn't, got the reply that A R Christian Ltd would. Again, they laughed, and told us the same tale about that line as our worthy friends the Wholesalers told us many years ago about Ferodo - that it just wouldn't go.
However, I was determined that we would battle until we got them on our side, and friendly, and pleased to deal with us and in the line. Towards this end, we managed to get together a Conference in Wellington of all the heads of the various Wholesalers who had hitherto imported the line direct, and sold at any price they liked, cutting one another's throats until there was no profit and no interest in the line. They all attended in rather a cynical and critical attitude of mind, and we quickly found there was only one way to deal with the proposition, that was, in a friendly way just tell them what was going to appertain; so I carefully explained to them that the controlled prices would be such as would yield them the same average gross profit as we believe they looked to from any and every line which they themselves controlled as a Sole Agent, and that this ratio of profit would be insisted on, and any not making this ratio of profit would not be supplied by us or the factory with any further Renold-Coventry goods to sell. From this point, particularly after they had soaked in the profit attitude, they became interested, and while they came in an unfriendly spirit, they went away with an idea that we might put it over. We were positive that it was going over, and we made it incumbent on the wholesalers to carry out our policy with the retailers they dealt with, the penalty being for them, if they supplied a retailer, who did not conform to price, their absolute embargo from selling the goods to anybody, not just that dealer. We would refuse to supply any wholesaler who supplied a retailer who persistently undersold.
For six months this was quite an interesting fight, first one wholesaler then another tried it on; but when they found that we were carrying out to the letter the principle expressed at that Conference, no wholesaler tried it on from that day to this.
However, I was determined that we would battle until we got them on our side, and friendly, and pleased to deal with us and in the line. Towards this end, we managed to get together a Conference in Wellington of all the heads of the various Wholesalers who had hitherto imported the line direct, and sold at any price they liked, cutting one another's throats until there was no profit and no interest in the line. They all attended in rather a cynical and critical attitude of mind, and we quickly found there was only one way to deal with the proposition, that was, in a friendly way just tell them what was going to appertain; so I carefully explained to them that the controlled prices would be such as would yield them the same average gross profit as we believe they looked to from any and every line which they themselves controlled as a Sole Agent, and that this ratio of profit would be insisted on, and any not making this ratio of profit would not be supplied by us or the factory with any further Renold-Coventry goods to sell. From this point, particularly after they had soaked in the profit attitude, they became interested, and while they came in an unfriendly spirit, they went away with an idea that we might put it over. We were positive that it was going over, and we made it incumbent on the wholesalers to carry out our policy with the retailers they dealt with, the penalty being for them, if they supplied a retailer, who did not conform to price, their absolute embargo from selling the goods to anybody, not just that dealer. We would refuse to supply any wholesaler who supplied a retailer who persistently undersold.
For six months this was quite an interesting fight, first one wholesaler then another tried it on; but when they found that we were carrying out to the letter the principle expressed at that Conference, no wholesaler tried it on from that day to this.
Mainly interesting for the fact that we first submitted a layout for this job in 1928; and we kept on fighting till 1932 before we got the order; also it is the only 200 h.p. Freezer drive in New Zealand with double reduction chain drives.
One of the most important events of 1932 was the despatch of W.T. Christian to England to get himself an education, and we hoped a real interest in those things which made up our life and business.
During the difficult times of early 1932, we found it mighty hard to keep up the morale of our selling staff and we were very loath to part with any of our technical men whom we had proven to be the right people. We therefore improvised methods of keeping them employed and give them a spell from the continuous canvassing for business with apparently no hope of immediate results. One of these methods was to employ Mr E.C. Parker and Mr E.R Tabart two or three days a week at the Garage at my home in Ngaio, in remodelling one of our Sunbeam cars so that it should be a travelling advertisement and demonstration of Renold Chain Drive, as well as a medium of travel for the salesmen.
Eventually they made a very presentable job of this, and we got it suitably painted and written, and it certainly was owing to its remarkability in design and lettering, sufficiently remarkable to be of excellent advertising value.
As you will see from the picture, we incorporated therein a moving exhibit, not only showing a moving chain drive, but also telling the story of chain drive on a cylinder, which was timed to move every five seconds, the movement of course being driven by Chain Drive and by means of cams thereafter. The revolving cylinder gave a complete story in six movements, and when the driver rolled up to the kerb, he automatically switched on a little motor worked from a battery, and anybody passing would always stop sufficiently long to read the whole story put on the screen, and as time went on, we definitely traced original enquiries from that Demonstrator at the kerbside all over the country.
The most lucrative advertising for Renold & Coventry & A.R. Christian Ltd., that we ever invested in - the 'GREEN FLY'.
When this was completed, we took the opportunity of giving all stockists a little boost. As we got into a stockist's territory, we put on fresh signs over the doors which advertised his place of business and his connection with Renold, and they also found it to be an excellent boost.
I might say that the body-building of the amateurs proved to be very well done. It stood up wonderfully for many tens of thousands of miles, always looked neat and we think, always did its job.
The line was valuable to them as a profit line, and our sales didn't suffer if two wholesalers fell out, we got the same turnover. When this was recognised, an apology was forthcoming and they were reinstated.
A similar state of affairs appertained once or twice in the retailers' section. When they found themselves without the profitable line and unable to get further supplies, they also came to the line and stayed in the line, with the result that the policy to-day, or rather before the War, gave Renold-Coventry an 80 per cent market, and since the War a 100 per cent market.
The Brampton business was a very costly thing, a fiddly business of small things - grosses of them and not much profit - the worst feature being that it took up a tremendous warehouse space and so little value.
During the difficult times of early 1932, we found it mighty hard to keep up the morale of our selling staff and we were very loath to part with any of our technical men whom we had proven to be the right people. We therefore improvised methods of keeping them employed and give them a spell from the continuous canvassing for business with apparently no hope of immediate results. One of these methods was to employ Mr E.C. Parker and Mr E.R Tabart two or three days a week at the Garage at my home in Ngaio, in remodelling one of our Sunbeam cars so that it should be a travelling advertisement and demonstration of Renold Chain Drive, as well as a medium of travel for the salesmen.
Eventually they made a very presentable job of this, and we got it suitably painted and written, and it certainly was owing to its remarkability in design and lettering, sufficiently remarkable to be of excellent advertising value.
As you will see from the picture, we incorporated therein a moving exhibit, not only showing a moving chain drive, but also telling the story of chain drive on a cylinder, which was timed to move every five seconds, the movement of course being driven by Chain Drive and by means of cams thereafter. The revolving cylinder gave a complete story in six movements, and when the driver rolled up to the kerb, he automatically switched on a little motor worked from a battery, and anybody passing would always stop sufficiently long to read the whole story put on the screen, and as time went on, we definitely traced original enquiries from that Demonstrator at the kerbside all over the country.
The most lucrative advertising for Renold & Coventry & A.R. Christian Ltd., that we ever invested in - the 'GREEN FLY'.When this was completed, we took the opportunity of giving all stockists a little boost. As we got into a stockist's territory, we put on fresh signs over the doors which advertised his place of business and his connection with Renold, and they also found it to be an excellent boost.
I might say that the body-building of the amateurs proved to be very well done. It stood up wonderfully for many tens of thousands of miles, always looked neat and we think, always did its job.
The line was valuable to them as a profit line, and our sales didn't suffer if two wholesalers fell out, we got the same turnover. When this was recognised, an apology was forthcoming and they were reinstated.
A similar state of affairs appertained once or twice in the retailers' section. When they found themselves without the profitable line and unable to get further supplies, they also came to the line and stayed in the line, with the result that the policy to-day, or rather before the War, gave Renold-Coventry an 80 per cent market, and since the War a 100 per cent market.
The Brampton business was a very costly thing, a fiddly business of small things - grosses of them and not much profit - the worst feature being that it took up a tremendous warehouse space and so little value.
One of the most difficult early problems for the Freezing Industry, i.e. to electrically drive tandem freezer in such a manner as to permit the use of high and low pressure Corliss Valve Engine should electric power fail during freezer season from 290 h.p. motor, installed 1933. Has run seven months continuously twenty-four hours daily every year since, and is still in perfect order. This job gained us the confidence and goodwill of Thos. Borthwick & Sons (A'sia.) Ltd., which we have enjoyed completely ever since.
1933 saw a gradual return to better trading conditions in New Zealand, which grew from the Ferodo business, consequent on a little competition between the two distributors, and further expansion in Renold brought about, particularly in the Conveyor section, by the Freezing Works' strike and the compulsory mechanisation of the killing line. The growth of our business and Phelan & Lonsdale's, meant that the old wooden building got more and more crowded, so that at the end of 1933, in neither upstairs nor downstairs, or even in the cottage at the back, was there room to 'swing the proverbial cat.' It got so bad that Phelan Lonsdale were desirous of the relinquishment of the balance of the lease, and further than that, I was very, very worried about the terrific weight we had on the old structure, which was built in '72, and had in turn been the first Sunday School, and first Dance Hall and General Meeting House in Wellington. The earthquake centred in Napier in 1932, shook our building very badly and we were all the time scared that it would be, before we were prepared for it, condemned by the City Council; so when an enterprising architect came along and wanted to know if he couldn't service, we gave it a lot of thought, and after talking the matter over with our tenants, they agreed that if I built a suitable building and gave them the necessary space, they would take a further three years' lease at an agreed upon rental. Although I quickly decided that I could not afford to build unless it could be done without encroaching on business finance, and I didn't see how that could be done, we just quietly went along trying to feel our way towards finality. Actually this architect showed us such a wonderful job - just what was possible with the land available (only 60 per cent of it was really being used at this time) - that we eventually got enthusiastic, went into costs, were encouraged by the Government with a promise of a subsidy of 33 per cent of the cost of the labour employed in the building, and considering all these things, decided to make a real effort to get that building, still definitely only and if it could be done without in any way interfering with the finance necessary for a growing business. I won't weary one with the details of this somewhat financial tangle, suffice it to say that we did eventually come across one, Castle, Chairman of the Norwich Union Insurance, who, although the security was far from being sufficient, had sufficient confidence in myself and the firm through previous transactions, to take me as security, together with the insurance policy for that part of the physical security that was lacking.
We called for tenders and the Norwich Union agreed to advance the cost of the building. We had, however, contracted with Messrs. Phelan & Lonsdale to provide them with premises at the same rent they were paying us during the time of the demolition of the old, and the building of the new building. It took us some months to find premises of which they approved, and the rent of which we could afford to pay.
We called for tenders and the Norwich Union agreed to advance the cost of the building. We had, however, contracted with Messrs. Phelan & Lonsdale to provide them with premises at the same rent they were paying us during the time of the demolition of the old, and the building of the new building. It took us some months to find premises of which they approved, and the rent of which we could afford to pay.
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