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Corporate News Releases 1947

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Corporate News Releases 1947 CORPORATE NEWS RELEASES 1947 mo* Sxmmlim Offices t INTERNATIONAL HARVESTER COMPANY ISO Ncrth Michigan AMDM Chicago 1. Illinois fj / ~/4 For Release IJttFI;l*TFLY Christian E. J&rcno*, vice president ami comptroller. International harvester Co*pany, has been electe; to the com\)my%s boi-trd of directors, Fo*ler dcCor&lck, board chairsan, announced today. Jtrcnow succeeds Sydney C. Ic/llister *ho oiei recently. The n«* bo«rJ »e*ber brings a uistinfulshed Harvester career to his nee position. He first joined fctot or^niration in 1914* In 19*^ he ass appointee general auditor, a iv^ecd to assistant controller in 1927, in otf ointe ( . ptrc ier in 1936. He was rlecteu a vice prt | t of Intern*, tional H&rwiter in 19*.:. Jarchow Is ts vice president and director of the Controller1* Institute of America, He is a member of the bo- r I ot 'Jire tors of the ill—IH St. tc "&n*,V»lloette, Illinois* He ftl»o serves as a saeaber of th« boara of eaucation of hev, Trier Pol flign Scuool, WinnLtici., Illinois* Herle J. Traei-, a Jirecior of tm c « r c< •**, | I . , **.t elect- i i acah-r of the ej» >tive Q w»0Wji •, U>e of the t«oi,H. Subject: Pricing Policy on New 13 Line FROM MOTOR TRUCK DIVISION INTERNATIONAL HARVISTIR COMPANY, 180 North Michigan Avenue, Chicago 1, Illinois For many years it was the custom in the motor truck industry to quote prices on the basis of "standard" models with minimum eouinment f which kept the auoted prices lover. In e.ct.uel -nractice, however, truck customers reauired many adaptations o* equipment in order to fit a partic­ ular model to the use they had in min". Deileered prices, for that reason, often were very different from the so-called "standard" prices. Recently, the industry has "b^^un to abandon the old system of prices basod on models with minimum equipment. This is especially true of the medium and heavy types of trucks, which are the models in which the greatest variation in eauipment takes place. In pricing its new KB line of trucks. International Harvester has adopted the policy of pricing most models on The basis of the combi­ nation of equipment most frequently ordered — "the truck the customer wants." Thereby the standard KB models ere combinations of engines, ax­ les, tires and other items which are desired by the majority of customers. This policy of pricing as a standard "the truck the customer wants" naturally has necessitated many price adjustments. The majority of these adjustments have been upward, although th*»re also have been some price decreases. By far the greater part of the upward adjustments are accounted for by listing as standard eouipment the items most commonly used. Increased production costs account for a nortion of the upward adjustments, however. Price adjustments will ran^e from 2 uercent to a little mere than 10 percent, defending on the model, and will result, over-all, in en average increase of about 5 percent. To illustrate the new system of pricing* here are three specific - 2 - examples? KB-5 The price of the former K-S mor'ol, with 6.50 x 2C tires, was $l,OS8.50. The corresponding new model, the KB-5, with 6.50 x ?0 tires as standard equipment will sell for £l,lJB, or ar. increase of $^1.50. , Most of the former K~5 models, hcwov-e"*, ¥»re sold ^auipped with Budd wheels and two-speed axles. The new K3~^ model, equipped with Budd wheels and two-speed axles, will sell for only about 1 percent more than the former model# KB-g The base price of the former K-«? model was I?,500. But the great majority of this model was sold eoulp^ed with the "<6l cubic inch en­ gine And with 9.00 x ?0 or larger tiros. With this equipment, the old model sold for $2,810. The price of the new KB-g will be 53.15°. includ­ ing the 3^1 cubic inch engine and 9.00 x 20 tires as standard eouipment. This is an upward adjustment of $3*^0, but included in the new price are improved front and rear axles, wider base rims, and manv other improve­ ments. KBR-H The base price of the fortpr KR-11 model, a heavv duty truck, was $U,970. sut the great majority of this model sold were equitvoed with the following ltem3, needed for proper operation: Timken axle, $^SO; k*)0 engine and F5U transmission, $lS5, and lr<.00 x 20 tires, $66, So equipped the old model sold for $5»£01. The new K3R-H model will be eouinoed with the Timken axle, the ^50 engine and J^h transmission and the 10.00 x ?0 tires as standard equipment, and will sell for $5,500. This is a reduction of $101 below the price of the old model similarly equipped. Subject: PARTS PROGRAM FROM MOTOR TRUCK DIVISION INTERNATIONAL HARVESTIR COMPANY, 180 North Michigan Avenue, Chicago 1,Illinois (For release in issues dated January 17 or later) FORT WAYKE, IND«, January 17 — A demonstration of International Harvester's motor truck parts and accessories merchandising program, employing a coiqplete dealer parts department set-up, was given here today. The demonstration was made by M, D. Dean, International Harvester motor truck parts oa3.ee supervisor, for members of the press here from all parts of the United. States for the first shoving of Harvester's new truck models. The company1l fortieth anniversary as a truck manufacturer was commemorated at the same time (the first International truok HI built in January, 1907). "Our motor truck parts and accessories merchandising program," Dean told his audience, "is directed toward two goals. The first is that of making the right parts and accessories quickly available to truck operators in all sections of the country. The second, of course, is that of providing our dealers with a profitable parts and accessories businees. There are four principal elements in the program -- inventory control, department organization, display, and sales promotion." Dean then explained how an analysis of tho truck population in each dealer's territory can disclose the kinds and amounts of parts and accessories each dealer should carry, and how modern display, sales pro­ motion and advertising can insure a regular rate of turn-over inventory. - 2 - To demonstrate the proper parts and accessories department organization, Dean took his audience step-by-step through a complete dealer parts department set-up which included bins and bin arrangement, back-counter display, counter placing and arrangement, and display tables. "Both the back-counter display and the display tables," Dean explained, "are focused to take advantage of eye-appeal and impulse buying, A customer comes into a dealer's place of business to buy one item. He sees the back-counter display and the display tables. In a definite percentage of cases additional items are bought. In other words, sales are made that otherwise would havo been loot." Dean then reviewed the parts depot program on which International Harvester has embarked. This program includes the establishment of com­ plete parts and accessories stocks at fourteen locations in the United States from which both International's 168 factory-owned truck branches and 5,000 dealers may draw. In consequence of these depots International Harvester branches dealers will be enabled to carry "base" quantities of parts and accessories. When the branch or dealer's base quantity of any iteiu has been reduced to the re-order point additional stock is ordered. Overnight delivery is possible in most cases from the near-by International Harvester parts depot. Slow moving items need not be stocked by dealers, but may be ordered from the depot as needed, "Parts and accessories sales promotion material," said Dean, "supplied dealers according to a carefully detailed plan, includes material for local newspaper advertisements, material to be mailed with invoices and letters, and special mail promotion pieces. In addition a - 3 - generous share of International truck national, trad.e and farm paper advertising is devoted to the promotion of parts and accessories sales." At each International Harvester branch a special committee plans parts and accessories mer char.? i sine events that are specifically adapted to their particular territcirf.es. In addition to the cor^pany's wholesale representative, a parte niercha-ndiser from every branch works with dealers on parts and acceosories selling. At the Company's central school for sales personnel in Chicago, all branch personnel is given intensive training in parts and accessories selling and promotion. Special emphasis was placed on the unit reconditioning serv­ ice supplied by International truck branches. Because of the nearness of these branchos to dealers and fleet owners, this service makes it un- necessary for moot dealers or lar#e operators to do unit reconditioning. Instead, they can get fast service from International branches both on reconditioning of the units they send in, and on exchange units, with factory-standard work by mechanics trained in factory methods. Subject: FITTING THE TRUCK TO THE JOB FIOM MOTOR TRUCK OIVlSiON INTERNATIONAL HARVESTER COMPANY, 180 North Michigan Avtnu*. Chicago 1. Illinois (FOR BELEASE IN ISSUES DATED JAN. 17 03 LATER) FORT WAYEE, IND., January 17 — Demonstration of International Harvester's recently introduced point system for rating the full carrying capacities of International trucks waa given bore Today by S, Colacuori, supervisor of 3ales engineering, motor trusk divieion, International Harvester Company. The demonstration was part of International Harvester's show­ ing for the press of its new "KB" line of trucks, and commemoration of its fortieth anniversary as a truck manufacturer.
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