| Your
request to raise the F.O.B. prices of recently introduced
models by 11% effective January 31 to cover “increasing
cost pressure” was indeed demotivating.
We fully understand and can sympathize with the need to
raise prices at times to insure profits. However, you are
strongly encouraged to recall that this time a great deal
of money was spent on promotion and promotional materials
to see that these products got off to a good start. These
costs have yet to be recovered. There is also the problem
of our retailers, who will be very unreceptive to a price
increase so soon after introduction.
In view of this, we urge you to reconsider at least the
timing and to delay the increase for six months.
Your positive consideration of our position as well will
greatly facilitate mutually rewarding marketing efforts
here.
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