Document ypZpMJ6K6dz51DjXkgn9R3LOX

FILE NAME: Mahoning Valley Supply (MVS) DATE: 1965 Jan 5 DOC#: MVS003 DOCUMENT DESCRIPTION: Letter from Johns Manville I <* J o h n s -Man ville SALES CORPORATION 3101 EU C LID A V E N U E C I E V E LAND, O H I O 44115 TELEP H O N E! UTAH 1-6700 AREA C O D E 216 January 5, 1965 Mr. Fete Baxter Mahoning Talley Supply Company 70L Youngstown-Poland Bond Youngstown 1%, Ohio Bear Pete: J-M and the Independent Insulation Distributor With increasing numbers of local distribution points owned and operated by insulation manufacturers it seems timely to state our attitudes on distri bution. It is our belief that with equally good management and facilities, Independently owned distribution such as your company can provide adequate stocks of goods and distribute them to the trade more efficiently than.can Company owned distribution outlets. We, therefore, have a policy of selling our products through independently owned distributors except in those.places where we are unable -to associate ourselves with effective outlets. The proof of the pudding is the fact that of 225 J-M insulation distributor locations, 20L are independent and 21 are Company owned., Xn support of this belief we attempt to have policies that provide as favorable a climate for you as possible. Obviously, the degree to which this is true depends on the overall margin that competition allows you and J-M and the need of complying with the Fair Trade laws. Our hope is that our policies will encourage you to carry adequate stocks and provide 'top flight customer service for the mutual benefit of both our companies* In keeping with this general objective, we are making a major revision in our pricing policies as they affect the warm air heating and air-conditioning business. These changes are effective January 1, 19&5: 1. The definition of the functional discount baB been changed to open a brand new market to you the competitive or independent warm air heating and air conditioning supply house. 2. The functional discount will be paid to you on the basis of your selling - price, less freight charges out of your warehouse. The complete revision to our policy is attached. G00S4 i - 2 Thank you for the business and fine cooperation you have given us in 196k. It is our hopes that vith these changes-we -ean, by working closely together, develop record volume and profits for both of us in 1965* S. L. Bvans will diBcuss these changes vith you very soon. Yours very truly, JOHNS-MAKVIlliE^fCLES C30RFORA0M / l h Do aeches District Seles Manager VDd/vme GOOSS FUNCTIONAL DISCOUNT Industrial Insulations i. Definition _ (a) A discount payable to I.C.U .s_and P.I.D.S on resales of the J-M materials included in their franchise and listed in Schedule 1 below to insulation contractors (other than J-M I.C.U.) whose primary function 1b the sale and application of industrial insulations. (b) A discount payable to I.C.U.s and P.I.D.fl on resales of J-M materials included in their franchise and listed in Schedule 2 below to Insulation distributors and/or warm air heating and airconditioning supply houses (other than J-MF.I.D.'s who are franchised for the product on which the functional is being paid). No functional will be paid on sales to sheet metal shops or air-condition contractors. An insulation distributor is a flra whose primary function is the stocking and resale of insulations used for application to mechanical systems. 2. Basis of Payment Discount Applies: (a) To resales of any quantity shipped direct from factory, service centers or from I.C.U, or P.I.D. warehouse. (b) And will be paid on the basis of the I.C.U. and P.I,D. resale price (less that portion of the invoice that comprises freight charges added aa a separate item). (e) T o only those shipments made into I.C.U. or P.I.D. areas, as defined in the franchised agreement, to whom payment is m a d e . In an area that is not served by an I.C.U. or P.I.D. listed materials may be sold directly to insulation contractors by the Districts at "M" prices. 3. Procedure; See Systems 6833 Claims are to be verified and approved by District Manager or his delegate as authorized in Systems. One credit is to be Issued monthly for each I.C.U. or P.'I.D* following the form and detailing information as shown in Systems. GO05S FUNCTIONAL DISCOUNT' Industrial- Insulations Fg. 2 k . tote riala and Discount; Schedule 1 Metal-On> Banroc Blankets & Banroc M Insulkote 300 Cement bOO Series Splntex Weatherproof Jackets Micro-Lok, Metal-Lok Duct Liners B Series Mlcrolite & Microtex, Plain or Faced Magnesia & Thennobestos Ftps Insulation & Blochs Superex Pipe Insulation Schedule 2 Micro-Lok Duct Liners H-SerieB Mlcrolite, Plain or Faced Microtex, Plain or Faced % % 10* It % % % % % 5* 5* % 7 Tf> T* *** G0057