1. food and drink
2. food and grocery retailers
3. grocery stores

^"
GET
TO
HOW
THIS
FROM
THERE
methods
in this little
only after
selected
Several
similar
hundred
each
plans
organization of
confidential
a
retailers
by the
out
for
course,
of
it is
a
which
among
best
best
records
Company
only
not
several
plans worked
for perfecting
has
search
coimtry-wide
built up
has
from
the
usually
un-
editorial
the
plans
book
competition
makes
it necessary
than
one
covers
been
able
extending
so
only increases
that
used
lines
many
its
fact/ that
demonstrated
plans and methods
be
proposition can
of the
to
of
group
really
Shaw
this
But
value, of
nine
succeed
out
with
for almost
of
one
all other
the
Furthermore,
types.
up
probably
book
ten
every
more
carded.
dis-
been
will
Company
also
of years.
explains why the
retailing.
type
a
was
number
a
This
of
after
had
the
the
A. W.
the
discover
over
with
men
plans, whom
to
but
merchants,
hundred
So
best
very
with
Shaw
the A. W.
contact.
the
contains
of them
methods
plans and
were
those printed in this book.
carefully inspected to secure
from?'' you
did they all come
''Where
ask.
by a
They have been fiunished
successful
plans and
management
book, but
many
VALUE
BOOK
of store
scores
are
GREATEST
THE
which
ever-increasing intensity
business men
face nowadays
for them
to
draw
their ideas
type of proposition if they
are
to
from
keep
date.
Just
appeal
try out
to
you
one
most
or
two
if you
of the
want
plans
a
or
methods
first-hand
that
proof of
PREFACE
this assertion
As
field to another.
incidents
classic
registeris said
have
to
after
The
of
all
go
all,very
much
Shaw
W.
fact,there
from
truth
are
one
many
^the
"
device
a
the various
cash
for recording
types of businesses
alike.
has
Company
of letters
hundreds
from
ship's engines, for example.
to illustrate the
important
a
that
A.
of
come
truth
fimdamental
transferred
illustrating this
incidents
These
be
can
matter
a
revolutions
the
are,
ideas
that
which
file records
on
demonstrate
the
of
bility
practica-
using the other man's idea. There is even
a
I Used
Another
Man's
Idea" in its
department "How
magazine, System, which you will receive in connection
of
with
Here's
example
an
System
Ford
for
long
George
showed
I couldn't
Mr.
desire is information
card
Our
on
use
for
card
will be
keep
Be
welfare
In
our
customers.
when
reference.
card.
Meanwhile
and
Indiana, is
our
We
card
Ford
the
enter
each
what
pajrment
is closed file away
reference
the
it
exactly as
credit business
the account
The
company's
^from
"
to
uses
sells furniture
same.
the Ford
valuable.
our
to
sure
it will
future
very
track of
on
the
the
writes:
Ford
the
about
card, and
the customer's
the
up
is based
of
Columbus,
Imel
that
department
commercially
"
point:
form
a
Imel, who
stood, but the principleis the
we
the
lives
retail in
at
department.
course
welfare
N.
removed
way
welfare
Of
1917
outside
the
furnishings
house
proves
March
of
this book.
which
Company's
Motor
keep track
employees.
a
piu*chaseof
yom*
system
cards
are
we
build
helping
us
customers.
each
read
describe
to
issue of System
you
month
after
carefully,for
month
tested
and practical methods
for
saving time, new
salessales, for advertising, training men,
increasing yom*
and
keeping records, holding down
expenses,
plans
for
carrying
in the
on
most
all the
other
effective way.
activities
of
yom*
business
CONTENTS
I"
WAYS
TESTED
GET
TO
MOBE
CHAPTER
Why
Costs
Doing
of
TRADE
I
Business
Abb
High
1
"
toward
first step
The
is necessary.
finding
present-day
help
increasing
it is vital
which
Why
three
you
Your
How
Store
between
with
frankly
in
trade
store
Ten
*
a
is advocated.
How
personality.
simple plans that
Ohio
an
have
made
81
Small
talking
Getting
has
retailer
goes
''big''
developed
it.
about
good.
III
Merchants
Store
difference
Why
which
Advertising
store.
The
personality.
CHAPTER
How
to
6
personality.
"owner"
customers
'small"
book
II
built store
and
"store"
say
this
Pbrsonautt
a
merchant
one
in
cost
about
profits.
CHAPTER
Giving
find
.
tions
ques-
accurate
merchants
will
increase
and
costs
profit. Some
net
answer.
What
costs.
pare
you
to
What
.
Won
Out
19
...
Proved
have
who
states
plans, arranged
maintained
use
them.
from
in
convenient
profits above
net
Secured
retailers
by
17%
personal
in towns
index
form, which
for the
investigation in
cities of from
and
merchants
1,500
32
to
100,000.
CHAPTER
14
Sales
Tested
Plans
determine
the
IV
Ideas
and
of
How
to
Why
special preparation and
value
of courtesy
to
amount
sales.
business
planning are
Why
knowing
"
Vll
"
29
you
should
required.
your
clerks
do.
The
well
CONTENTS
is a factor.
One
to avoid
keeping customers
waiting.
a
can
help
Using a mailing list.
business.
Personal
letters.
How
to keep
Getting new
trade possibility.Questions which arise
an
eye on
every
in the sales policy. How
window
displayscan be made
How
card
to do their
way
index
sales.
Service and
part.
sales.
more
CHAPTER
Advebtisinq
Methods
V
Increase
that
Pbofits
44
.
.
A novel plan that hits its mark
fairlyand squarely. The
standardization
advertising. How
helps
importance
advertisingeffectiveness. Plans that help in choosing the
right type face to use.
Making advertisingmore
newsy
and interesting.Hitching up advertising
with local events
of
and
interest.
community
display. What mediums
a "live" mailing list.
Valuable
should
be used?
CHAPTER
Planning
Store
the
How
one
Factors
arrangement.
What
got
show
tests
keep
to
.
"
"
55
sales through a better store
to consider in planning the store.
more
about
customers'
purchases.
How
well in many
stores.
timeliness work togetherfor sales*. A
arrangement.
How
Sales
that works
store
window
on
VI
Greater
for
merchant
hints
How
make
to
A
arrangement
plan
and
suggestionplan of
store ''big
the small
Michigan retailer gets the most from
his small store.
Using tables for display. Another "big"
time and effort.
smallH3tore plan. Equipment which saves
Reducing lightbUls.
enough.''
How
one
CHAPTER
Service
What
that
Holds
VII
68
Customers
is retail service?
How
the
war
has altered service
A "hurry
policies.How always to have stock on hand.
to give service to ihemdesk" plan. Helping customers
sdves.
Delivery
Handling complaintsin the rightway.
and
service.
The
''cash and
delivery has reduced
carry" plan.
costs.
policies.
Vlll
Some
How
broad
tive
coopera-
service
CONTENTS
PLUGGING
n"
LEAKS
CHAPTER
Picking
Right
the
VIII
Location
location often is
EXPENSE
OVERHEAD
IN
Your
for
Store
83
.
.
point. How fast are rents
increasing?
a
rightlocation can
be made
to pay out.
Solving the location problem with
the telephone. A plan that helps when you move.
How
class of trade counts
in
about ^'upstairs"shops? Why
choosing a location. How quick action in moving saved
Why
one
a
vital
small store in the
How
retailer.
CHAPTER
Down
Holding
bad
Why
and
Bad-Debt
debts
failure.
reduces
the
results
from
retailer
minimum.
book"
a
to
a
reduced
loss of trade.
brought big
How
results.
Your
Training
reduced?
Why
Using
KNOWING
Makes
must
push
up
in
care
are
favored
Records
ing
Eliminat-
a
plan
"cash
by
one
More
partment."
de-
Can
Sales
How
Classes for salesmen.
Meetings. Social
retailer.
How
to train
the stock neat
Keeping
as
responsibility?Payment
satisfythe workers.
WHERE
YOUR
BUSINESS
which
STANDS
XI
Show
up
Vital
Facts
119
QUICKLT
One
Why
retailer'ssystem
a
107
salary costs be
the sales volume.
hiringsalesmen.
CHAPTER
SiMPLB
install
to
Salespeople
you
Getting
X
clerks to approach customers.
want
factor. Do
salesmen
a
plans that
50%.
"pay-up week"
retailer increases his clerks' sales.
affairs for clerks
ni"
A
it costs the retailer for salaries.
What
one
debts
bad
CHAPTER
How
success
"tab
The
cooperativecredit association.
credit without
that
94
often sway
the balance between
bad debts cost.
How
one
plan which
A
Losses
What
"bad-pays"
plan.
IX
teUs him
where
good accounting system is
ix
he stands every
necessary.
day.
Handling
CONTENTS
cash
and
and
simple
accounting
book;
sales
charge
through
accounting
the
the
sheet.
An
How
Make
TO
Sure
of
the
cash
ledger;
customers'
the
and
ledger;
inventory
perpetual
CHAPTER
plete
com-
effective
journal;
stock
effective
A
Another
the
use
merchandise
departmentalized
mark-down
to
ledger;
purchase
register.
system.
How
system.
cash
the
the
sheet.
XII
Profit
a
Every
Day
137
.
Why
the
What
retailer
is
to
figure
downs
Many
profit?
What
accurately.
exactly
retailers
price
about
mark-up
not
cutting
and
Your
Turn
to
How
can
the
rate
is
the
stock
the
closely
rate
check
of
amount
Overbuying
sales.
of
to
turnover
be
profits?
How
of
mark-
up
stock
and
locate
on
147
increased?
Why
correctly.
to
necessary
the
profits
Faster
turnover
turnover
Decreasing
figure
analysis
an
stands.
XIII
Stock
of
rate
of
he
reveal.
CHAPTER
Ways
where
do
What
correctly.
will
often
know
must
.
on
rate
hand
on
fast-turning
perpetual
a
your
rate
How
of
of
without
figure
tory
inven-
turnover.
ing
decreas-
Watching
turnover.
lines.
to
The
effect
of
costs*
Appendix
xiu
Index
xxvu
.
PARTI
TESTING
WAYS
MORE
TO
TRADE
GET
"
"
"
r.
i
,".
""
"
"
X
"
"
"
"
"
"
CHAPTER
WHY
COSTS
OF
THERE
are
DOING
two
sure
"
"
"
"
"
"
"
I
BUSINESS
ways
to
ARE
make
HIGH
more
money
in any
retail business, you'll agree.
The
first
is to increase your sales without
increasing your
the second
is to cut down
expenses;
your
expenses
without
reducing your
is between
the
cost
sales volume.
of merchandise
The
old, old
race
plus
expenses
on
of sales on the other. The
track, and volume
prize is net profit,and, obviously, anything trimmed
and ''salvaged"is added
off expenses
to net profit.
Knowing what your costs of doing business are is
the
one
clearlyenough the
profit. And
exact
first step
knowledge
toward
about
increasingnet
costs
is
larly
particu-
abnormal
and
important whenever times become
out of the
soaring pricesknock about all the stability
factors determining profits sales volume,
three main
cost of merchandise, and cost of doing business.
what
How
is a merchant
his profitsare if
to know
lines of business,
In some
he is ignorant of his costs?
materials
have
and
raw
more
prices of merchandise
"
than
doubled.
How
is
a
merchant
to determine
how
charge for various items in order to be sure of a
legitimateprofit,imless he uses an e"fective cost system
His
throughout, and knows exactly where he stands?
cost of living goes up just as fast as that of his customers.
much
to
Therefore, he
And
if he
needs
more
cash for himself.
formerly received $5 for a pair of shoes
which
cost him
$3.25, will it do, by the same
token,
to charge $7 if the wholesale
price goes up to $5.25?
"
w
"
.
.
'
"
"
"'
"
*
.2
"
MORE
-GETTING
TRADE
.
oJ-dcinRbiiiness
axe
-GosW
attention
especiallyshow
Retailers
necessity for
to
stores
Shaw
Company
of
this
figures here
The
costs
are
generally.
averages
forth
the
for
this
of the A. W.
Standards
in smaller
set
men
more
effectively.For
has, in connection
an
book, conducted
of doing business
costs
business
most
of Business
the Bureau
and
growing appreciation of the
cost knowledge if they are
a
accurate
more
their
manage
reason
of
hands
the
at
receivingmore
with
the
tion
prepara-
investigation into
retail stores.
indicative.
are
lines
various
These
indicated, or
called,indicated attainable costs.
of doing business have gone
That
costs
up in dollars
and cents, nobody questions. The maj orityof retailers
they have
as
only to refer to their books
that costs are higher. There are exceptions,of
The
proprietor of a hustling store in the
what his expenses
to a penny
West, who knows
to prove
course.
Middle
reports that
are,
have
their costs
know
who
been
in
five years
his expenses
not
are
when
expressed in percentages.
appreciably higher
items (expressed as
Certain
higher, of
course,
while
of sales)
percentages
others
have
changed
not
are
^all
"
His
higher in terms of dollars and cents.
total cost of doing business,expressed as a percentage
of his sales,has held about
prices
even, as higher cost
somewhat
are
have
been
beaten
with
increased
This
volmne.
man
rising costs in percentages.
sellingshoes reports his expense
percentages for the last five years as follows: 21%, 22%,
The
25% cost he explams by
23%, 25%, and 22%.
his heavy purchases at a time
losses resulting from
more
when
customers
beginning to lean toward
were
The
following year he reaped the
rigid economies.
is keeping pace with
merchant
Another
benefit of his
wise
purchases
of
dropped to normal again, as
is explanation in plenty
There
costs
costs, but
no
matter
what
the
you
before
year
and
see.
for the
is correct, there
rapid rise in
is no denying
WHY
that
COSTS
ARE
HIGHER
3
is
tising
higher, the payroll is heavier, and adverbills are
larger. Moreover, competition constantly
is stiffeningand
markets
are
widening imtil
merchants
almost
everywhere feel the pressure
rent
small
and
more
"To
mind, securing
my
costs
acutely.
more
down
narrows
profits despite higher
net
discovering new
to
small-store
who
business," says
a
man
working out of that class. "My
argument
the
mmiber
same
floor space
of
nimiber
started
has
of turnover
is made
of
could
rapidly
is that
if
of
amount
sales,then
against rising costs.
I had
the
on
doubled
But
when
I
fingers of
origmal
my
each
upward
increased.
get
increased
count
swimg
is
same
dollars
than
more
sales have
capital. My
the
handle
to
you
have
I
and
thousands
in business
hand.
one
be used
can
tangible headway
some
The
of clerks
to
ways
year.
My
of
doing
has
increased
business
not
My
advertising
10%.
^both
costs
me
sales, my
3.5% of my
rent, 3.6%
favorable
when
indicated
compared with the averages
line. So I figurethat I have
been keeping up
for my
rate
cost
my
"
rising costs.'*
with
THESE
Just
TESTED
PLANS
TELL
FIQHT
COSTS
HOW
and
this merchant
how
AND
OTHER
MERCHANTS
WIN
others
are
succeeding
against constantly risingcosts forms the
subjects and substance of the followingchapters. Every
described
has been
''imder
fire."
plan and method
in their battle
Each
one
has
performance,
will
behind
and
it
what
usually benefit
a
record
works
of successful
well
for
one
test and
merchant
another.
descriptionsof tested methods
for going
larger sales. You also find plans for
and
attractive
store
more
pleasing to
making your
and
its personality
yoxu* public ^its phjrsicalappearance
reflected in your
as
advertising.
In
Part
I you
after
"
find
GETTING
4
Then,
their
too, you
MORE
how
see
TRADE
have
merchants
simplified
merchandising problems by getting all
in the
their stores
about
stores' relations
to
facts^
the
their
spective
re-
communities.
Just
building sales volmne
plans for choking
as
is the
subject
of
matter
of those neveroff some
I, so
ending leaks in the overhead
are
grouped m
expense
II. You
Part
perhaps, find when you take your
may,
business
to pieces that the best way
to
make
more
from
to get more
it, is not to strive so much
money
trade, as to devote your care and attention to trinmiing
Part
down
costs.
your
value
The
of
knowing
successful
most
"value"
about
making?
are
much
how
^not
"
prospects, trade
so
on,
but
much
do
profitare
net
think
you
intimate
more
lines of merchandise
What
making?
'*
your
these: how
as
"
necessity rather than
is
in Part III.
By "facts"
territory,competition, and
inside facts such
business
your
say
out
information
not
meant,
about
*'
merchants
^isbrought
"
facts
or
guess
you
you
helping
holding profits
are
lines are
profit,and what
real
but
the
down?
finds, when
(Hardly a store
facts are
known, that certain supposedly profitable
and
other
items
at a loss). These
being handled
are
questions equally as vital are analyzed and answered.
Right here on this question of "facts" is where many
is nothing gained
fall down
hard.
There
merchants
gloves absolute
by handling this question with
frankness
is the only policy that will be of constructive
make
your
"
value
to
merchants
"No, I have
records," is an
store
one.
it.
no
cost
line.
system,
all-too-common
books, and no
by smallresponse
no
proprietorsto questions regarding
expenses.
too
in any
"Cost
much.
I need
business
My
I can't
be
may
is too
fine,but
small
"
^I haven't
bookkeeping
time for figuringout
my
do
all
systems
"
their detailed
they
I can't
afford
the time
new
cost
ways
for
to
WHY
increase
sales.
my
do
to
Those
of
willing
to
and
which
luitural.
all
learn
the
the
business
is
closet
secrets."
to
other
about
aired
of
successful
book
has
policies
are
its
they
this
the
book
are
so
can
you
day
of
the
methods
in
helpful
up-to-date
be
squeezed
between
ready
for
use.
Turn
the
pages
is
eiach
eyeing
store
study
dark
say,
every
the
could
to
is
and
together
in
that
is
^'business
of
and
all
it
men
getting
cash
^that
some
guarded
retailers,
it
then
out,
Cooperation
instead
betterment
their
"
making
business
now
not
which
money
every
other,
other
obligation.
start
closely
individual,
for
are
more
and
ently,
Appar-
They
business.
your
so
worked
without
to
why
of
plans
make
don't
advice
have
way
each
each
ideas
In
to
today,
suspiciously,
swapping
and
them
best
Helping
beneficial
They
the
being
the
merchants
to
motto
bigger?
taking
the
and
clearly
pretty
successful.
wants
facts
keeper
book-
a
express
merchants,
methods
offered
And
hire
to
grow
in
fellow
merchant
Every
never
proved
are
small
become
successful
more
5
about
just
explain
believe
not
use
afford
of
they
have
who
can't
perhaps
merchants
do
HIGHER
me."
for
think
they
men
I
majority
the
small
many
is
this
honestly
you
And
statements
attitude
ARE
COSTS
on
cerned.
con-
of
This
them.
and
plans
its
and
use
covers.
them.
CHAPTER
GIVING
AS
YOUR
/\
is
eye
which,
the
by
reminds
dark
a
the
neighborhood
making
money
And
is
he
in
cheerful, and
of
anywhere
in
the
lines, and
selling
a
That
draw
an
worthless"
competition
city, Skidmore
few
a
he
is
bright,
Although
be
to
foimd
selling high-grade
is
each
more
his
personality.
toughest
for
locality.
of
force
the
store
says
Nevertheless,
than
year
imdersell
iminteresting
The
this
plus
shop
panels
his
did
he
below
the
the
is raised
it is
monotony
on
a
would
and
of
white
enable
the
6
for
block,
otherwise
make
a
an
attention.
paint
the
to
such
^that
"
even
is,
and
window
further
striped awning
in the
board
him
to
attract
and
white
Skid-
greatly-reduced
silver
with
windows
bright spot
a
in time
would
was
competitors
painted
red
A
relieves
downtown
the
section
would
"
is
interior
that
particularly
prices
front
frames.
letters
conviction
a
classier
his
that
extent
and
from
^rent,
"
front
store
idea,
overhead
Gilt
the
shop,
worthless
almost
attractive
trade
more's
door
solely by
on
before.
year
the
been
''gloomy,
convincing
mile
within
it
doing
neighbors,
switched
the
runs
back-sUding.
this
your
contrast.
who
long
still is
and
business,
has
its
an
front,
shop
suddenly
sharp is the
merchant
the
Skidmore,
from
out
lamp
city
small
a
in
street
western
a
by
it stands
so
room
held
electric
an
dingy
of
and
way
of
you
certain
comer
caught
PERSONALITY
A
a
out-of-the-way
"^
in
STORE
down
walk
you
II
when
drab
distinctive
it
street.
sign.
STORE
Skidmore's
shop makes
notice
it
as
as
soon
vivid
a
of the
opposite side
the
PERSONALITY
street
impression, and
can
hardly
you
within
come
you
7
block
a
from
fail to
and
a
half of his store.
Just
as
individuals
some
remembered
because
know
you
are
easily
more
make
deeper and
more
lastingimpressions upon the minds of people they meet,
it is with stores, investigationpoints. Certain stores
so
features of
livingpersonalities. Characteristic
possess
their service
stand
they
in customers'
out
minds.
It is forceful business
trying to create
poUcies. A
are
indicates
vital factor
that
in
of
canvass
they
of
importance
the
on
personality which most retailers
tising
through their selling and adversuccessful
chants
mer-
pretty thoroughly agreed
are
strong
personaUty
store
as
a
progressive merchant
Every
success.
retail
believe that his store is an
to
commxmity
of service.
aggressivelyhonest mstitution
It is important, investigation indicates, that the
merchant
seeking to build store personality draw
a
real "store personaUty'' and
sharp distinction between
he may
''owner
personaUty." Here
profit by the
took
a
experience of a Pennsylvania clothier who
vacation after several years of close appUcamonth's
his customers'
needs.
tion to his store problems and
he returned, bis business had dwindled
When
to about
bis
wants
"It
had
went
set
a
it had
third of what
one
did not
take
on
I
vacation
my
about
long
me
personaUty and
making
first-class store.
there.'
I
without
fear of
was
the
people
the
advocated
across
by
a
nxmiber
went
away.
figure out that my store
"When
I
it," he declares.
business
say:
right when
at
just as
is
along. So I
certainlyhas
went
'Winters
business
the coimters,
he
to
losing trade."
Talking frankly to customers
to them
when
get treated
You
leave
can
been
an
you
any
time
you
would
go
now,
talk
advertisingmethod
of merchants.
GETTING
8
Miller
TRADE
jeweler,has
middle-western
a
9
MORE
store
a
small
so
'^
capital of its smal ness.
Everything
the big store has except expense" is a slogan that Miller
in his advertisements.
He
frequently uses
frankly
he
that
makes
he pays, and backs his statement
affidavit for the benefit of any "doubting
of rent
the amoimt
states
with
up
an
Thomas."
His
plan is to get customers
of his prices,values, and
because
his store
THIS
PERHAPS
In
direct
office,who
man
WILL
to
come
service.
GIVE
YOU
BUSINESS
OWN
finds it pays
his
to make
in store, shop, or
woman
or
about
more
Miller
price than
in front
that
suggests
of
he
ousines
lim-
pride.
exclusive
more
sells
jewelry
to
automobiles.
people, not
is frank
putting his
about
his
into
newspaper
classified ''liners"
extensively when
of its
YOUR
electrics stop
stores, but
ideas
the
to
cares
and
He
FOR
advertising Miller
his
appeal
PLAN
RETAILER'S
IDEA
AN
to
and
of
the
is
into
of
one
advertisingthat
first went
he
cheapness
Here
copy.
type
a
"
personality and
own
his
he used
business, because
good results it obtained:
fellow who is planning to "live with
engaged to some
back his ring. You
his folks,"give him
can
get a good job in a
and handle
A
lot of
"cannery"
right now
own
your
wages.
I know
eo
jewelry from Miller
bright girb are buying their own
what I'm talkingabout.
Square Deal Prices. Biggest Little Store.
If you're
"
"
less
Not
down-to-earth
advertisement
^also
"
in
tenor
''liner"
a
"
is the
^intended
following
to
attract
men:
I want
stuck
ever
at
to
$1
"
into
you
his
^worth $2.
Come
evenings.
Careful
and
success
show
the best pair of SI cuff buttons
shirt;sone
Sunday
Miller.
I know.
in and
any
man
nifty scarf pins,too, special
Biggest Little Store.
Open
see.
building of
advertisingwas
by an Illinois
personalityby
the plan followed
store
merchant.
He
has
store meetings
with
about
great
six
MORE
GETTING
10
This
is the
way
TRADE
figureit. We don't take any
of the buying. Everyone of us in the
we
judgment in any
to buy. When
a shirt
manufacturer
tells
he
us
can
the make,
next
customer
When
If you
the way
buy, why
you
we
don't
you
Mechanical
features
often
of your
ask
never
tested
goods
a
'em
buy.
we
of ours?
trade.
help
may
We
quality,
try this buying method
will get the lion's share
doy we
all the
do it with
a
the
the style, and then the fit. We
them
imtil we
have tested 'em and
thoroughly. That's
us
better
carry.
then
buy
to
helps
store
offer
shirt to sell for SI, we
it with the kind
we
compare
examine
it from tail to collar band.
We first examine
man's
one
create
live
a
Skidmore's
shoe
personality for a store
shop is an
mission style
a haberdasher, has
example. Max Schifif,
fixtures throughout, and beheves
in playing safe on the
Kght proposition by having enough, rather than to
risk having too little. Tasteful
lightingfixtures give
his store a well-lightedappearance
without
glare anywhere,
and it is as well lighted in back
in front
as
Schiff is particularon that point. As a result of these
features his store is decidedly attractive, and
draws
a lot of profitabletrade.
Breaking the regular line of his store front by letting
in sUghtly toward
the window
Une run
the door, makes
"
"
Morehouse's
women's-wear
it would
than
noticeable
is
in
store
otherwise
Tennessee
be.
more
the
On
posite
op-
it looks.
diagram which shows how
The store is small, as you see, yet it stands out from
its neighbors in a surprisingway.
The change occurred
to Morehouse
just before he signed the lease and he
the sUght alteration.
persuaded his landlord to make
is
Morehouse
the loss in display-window
space
says
trivial and his shop front is strikingenough to make
up
page
for it. Customers
in toward
to
just
*'
a
tell him
the door
drift"
into
dollars to his unusual
Using
of
a
a
that
it very
make
the
store,
store
is
a
so
easy
he
for
ing
lead-
shoppers
credits
many
front.
singlestriking color
store's decoration
Unes
the window
not
as
a
imcommon
dominant
feature
personality
PERSONALITY
STORE
buildingmethod
merchant
and
His
carries
he
man
and
a
An
black
the
red
a
wear
front
store
idea
and
and
sWrt
red tie
Ohio
paint shop
a
for his decorative
imusually
the
"red
painted red
by having his wagon
tie in the
m
chose
scheme,
plan
and
winter,
summer.
proprietor
attractive
as
are
white
a
southern
A
is known
wagons
further
shirt and
white
his stdre
usually effective,
his store
red, and
uses
store."
it is
and
11
a
easy
yellow
which
to
and
makes
remember.
yellow and he keeps it scrupulously clean
and
bright. Inside, the shelves, coimters, and other
woodwork
are
Against this backpainted dull black.
other
the merchant,
colors show
groimd, states
up
better, and articles of polished metal show
up
very
and
to advantage.
brightly
A third general method, helpful in creating pleasing
less spectacular
store personaUties,includes
more
or
advertising features.
Usually these features have for
than
immediate
sales rather
then- purpose
bmlding a
of
asset
good will.
Many
merchants,
permanent
however, try to work up special features and make
^hold them
a
once
week, each
regular events of them
and
thus
them
both
month, or annually
get from
The
front
is
"
"
immediate
sales and
Frequently
window
will
d J"cult, but
some
work
good wiU as well.
simple little twist
wonders
just getting
"
in arranging
^nothing expensive
away
from
the
a
or
method
GETTING
12
MORE
else is following.
everybody
built in his window
ceilingtoward
a
TRADE
hardware
partition which
a
On
the street.
of small
number
One
articles.
dealer
slopes from
this
partitionare
slantingsurface
The
the
quite
draws
upward and displays the goods at the top
practicallyas well as those at the bottom.
Ohio
A jeweler in an
is getting some
added
town
attention
from passers-by because
he put small display
windows
imder his regular windows.
He figured angles
carefully and arranged his smaller displays so that
the
eye
would
observers
point
a
to
stoop to
to
He
see.
articles
only larger
put
lower
these
have
not
it
makes
display
on
in
windows.
portant
not
are
plans described
particularlyimbecause
they suggest more
display space, but
because
they are just different enough to be striking.
handled.
Figure 1 shows more
clearlyhow they were
The
two
DIFFERENT
THE
rrS
One
hardware
window
a
at
barber
The
to
barber
surrounded
soap,
the
ALL
put
beginning
of the
shave
used
about
of
a
Another
razors,
for
as
and
days,
10
that
well
chair
in his
and
hired
weather
for
as
that
he
the
available
was
desired.
and
This
stration
demonsecured
dealer
for that brand
the
would
fruit
on
season
certain
a
display in his show window
of peaches ever
in the
seen
following week
finest
collection
When
the
day rolled
his window.
was
shaving accessories.
dealer, just before
of the
aroimd
They
there
were
were
two
putting
up
menced,
com-
day
the
town.
handsome
fruit and
by preserving kettles, fruit cans, peach
all other
fruit jar caps,
and
necessities for
surroimded
parers,
hot
accessories.
shaving
advertised
girlsin
barber's
a
strops, shaving brushes, shaving
razor
all the business
safety
GOOD.
free every
day those who
well -advertised safety razor
other
lasted
MAKES
OFTEN
AGREE
merchant
by
and
THAT
IDEA
WE'LL
PEKSONALITY
STORE
fruit.
preserving
double
Everybody
of the
meaning
13
dealer's
merchant.
graduation
the
senior
the
class
Others
style show.
will
"People
"That
is
effective.
so
are
auditorium
refreshments
looks
buy what
this merchant.
cities
served
school
girlsin
and
at
took
details.
of other
care
stage of the
one
in modish
parade
to
he
toward
of the
Some
delighted
were
the
across
gowns
in payment.
expenses
for
donation
a
the
and
style show
a
offered
He
by
advertisement
got the business.
High school girlshelped stage
Ka.nRa8
amused
was
well
the
why
I could
others,"
on
style shows
in
says
large
get professional
not
httle town, and I would
in my
have
been
not
if I could have got them.
able to stand the expense
But
sales this season
have
broken
all prevous
records
my
store."
for my
models
Nearly
studied
his window
was
a
sale of
observed
town
baby
believes.
company
The
of
son
of the
one
the
mother
and
baby
he
of
may
written
be
store
where
for
played
using show
calls attention
signs
she
to
on
obtained
scheme
any
of
occasion
several
was
sale,
on
patent
a
display.
could
hours
the
an
merchandise
slabs
in
cards,
of
Ohio
watch
as
tentedly
con-
haberdasher
in -his wmdows
synthetic marble.
all colors
and
dealer
each
in
window,
this
merchant
by
These
thicknesses
building material. They
absorbent
to opaque
water
colors,and can
and over
again.
over
with
By selecting slabs that harmonize
almost
a
home.
at
as
Instead
in the
sat
of
salesmen
requisitioned,dressed in clothes like the ones
with some
and placed in the window
toys and
baby fence to enclose him from the goods on
The
and
clothes.
10-month-old
The
his
recently, the display manager
dry goods
western
in
woman
every
from
are
non-
be
used
the
color
alwasns has
14
GETTING
attractive
inches
MORE
displays.
in size, and
draw
They
The
without
value
A
Minneapolis grocer.
arranged that every time
lowers a large round
card
the
The
is
message
card
the
on
tiny easels.
on
it.
is put to novel
pulley
and
door
opens
suspended
12
by
6
are
monopoUzing
of motion
a
uses
them
supports
attention
attention
slabs that he
The
he
TRADE
by
use
cord
is
so
it raises and
in the
window.
changed daily,describing
special bargain.
spme
"To
lots of little articles in
show
stock
my
that
might otherwise not be displayed/' says a Minnesota
and put in it four
druggist,"I cleared out my window
cut in the shape of the four phases
pieces of cardboard
of the
plamed
these
linmg
moon.
them
with
in the
up
words:
these
brings different weather.
equipped to meet the changes?'
"Below
cards
the
thermometers,
tions
suitable
"In
one
weather
weather
sign
a
tomorrow.'
showed
take
in
a
this home
lot of
new
stock
"
grouped
kept
the
When
films
camera
sign readmg:
When
hot
"
of
daily
pleasant
the
near
;You'Uneed
I
impended
weather
juice with this card:
^tomorrow
you'llwish you
originalityhave brought
*
Better
had.'
a
me
customers."
of the
devices
attributes
is
I
frame.
smaller
now
little twists
store
my
always
bottle of grape
These
One
from
I
window
small
a
promised
put in
you
conditions.
weather
the
of
comer
was
and
'em
for other
forecast
Are
cough
glasses, sxmbum
cream,
for chapped skins, and
combma-
s\m
lotions
medicmes,
articles
were
ex-
change of the
*Each
moon
I
window
his
to
the
success
generous
use
which
a
southwestern
of his small
of
"silent
chant
mer-
department
salesmen"
to
ing
supplement the work of his "live" salesmen by answerEven
in the old
questions before they are asked.
with
their wares
his competitors marked
days, when
hidden
label in cipher, he placed conspicuous price
a
Figine
1:
dcacribed
abo
On
on
the
pi^e
detoibed
on
would
right ia " diagram
13.
Tbe
page
13.
get
extra
other
You
of the
diagram
can
attention
16
see
hardware
showt
the
dearly bow
from
many
dealer's
window
jeweler's window
these
proapects.
two
displays
k
,"
"
m
"
ft
9
"
"
"
"
*.
"
"""'."
""
",
GETTING
1"
MORE
tags in plain nnmerals
and
make
a
discoxmt
the
know
hesitated
much
of the clerk's time
with
to ask
is
SIMPLE
or
LITTLE
PLAN
too
by
name.
MAKES
the
duction
intro-
Now
Mrs.
in advance
find out
can
popular
largerones
cloth, velour,
cloth of that
SALES
EASIER
STORE
aisle in the
fashion
the
from
the country
hat
learn what
to
name
on
also
derived
embarrassment
word
need
not
A
own
according
customer
new
through the aisles and
for
ask
^Englishsailor,
"
tam,
or
mushroom
offer her
^as
"
services.
soon
The
noticed
that
patrons
their pronunciation of imusual
terms,
those
especially
each
color.
store's
wonderfully well.
worked
merchant
hesitated
or
is free to
the saleswoman
has
journals,or the
is plainly marked
wander
can
Watteau, poke, Chinese
them
hue
THAT
advertising. Each hat
material
to its shape or
The
took
millinery department customers
easilyfind the hats they have read of in the
the
newspapers,
plan
and
weaves
"waflle"
THIS
colors.
seeming this information.
is the advertised
IN
as
Others
pricetags. Up went
fit,planned to include
"golfine,"or whatever
spring or winter.
Across
in
fashionable
the
fabrics and
clerk.
busy
waiting her tmn,
Lamson,
his
often did
his customers
novel
material
of each
A
at the
the
caihe
letteringto
which
a
brought
tints. Down
than
more
obligatedhimself
marked price,while
the price to some
of the various
names
season
boxes.
he had
that
Some
Each
and
to others.
retailer noticed
This
not
every"
bolts
him
upon
able to "boost"
competitorswere
and
his
upon
to rely
came
People soon
competitors,since they knew
to sell to "each
TRADE
from
many
the French.
He
saved
by writing in parenthesisunder
it should
the way
ask, '*Is it rat-teen
be
or
spoken.
Now
rat-e-nay?"
they
MORE
GETTING
18
"Cleanliness
is
tooth
powder,
face
Smaller
tooth
signs
"Keep
fastened
was
hound's
a
Beside
sign which
The
the
is
lived
phase
of
public
come
or
retaUuig
in
ought
right.
point where
fully
to
any
about
you
of your
for their
possess
a
siure
you
you
store
and
own
similar
was
a
and
it will
be
fastened
know
followed
point
sakes.
in
out
where
for
difficult
whether
retail
to
his
not
or
if you
were
they would
store, and
When
personality
right
that
you
anxious
have
is well
large
merchant,
any
policy
is right, polish it up
that
and
store
due
them
be
every
foremost
the
find
shall
second.
customers
your
which
policy
Analyze
yours
and
^by formulating
"
nearly always
be
an
fore,
there-
personality,
store
every
in
him
on
cleanliness.
right methods
to
be
To
at
"
determine
to
of
store
contact.
you
not
small,
arian.
veterin-
a
it "corralled"
impressed
studiously
and
first and
policies
and
beginning
basic
words
and
successes
which
to
was
but
get up,
doctrine
the
at
to
up
hair
"whistle"
begin building
to
into
putting
to
passer-by
the
right
from
your
small
simple
wa^
way
place
The
A
lettered,
tooth,"
shampoo
on
The
sentence.
of each
attractive
this
Use
files,
like.
the
card
obtained
tooth
."
display
gaze
It
"
:
the
hound's
a
as
proprietary
a
as
finish
to
on
the
read
clean
as
clean
teeth
your
nail
group.
small
a
articles:
soaps,
each
Keep
window.
the
and
by
had
assortment
paste
his
to
cream,
placed
were
sign
antiseptic
cream,
oils, massage
shampoo
razors,
the
from
else.
in
sign
the
reads
led
ribbons
white
all
above
important
antiseptically clean/'
Snow
TRADE
the
to
explain
be
tic
enthusias-
to
done
worth
to
buy
that
is
it
from
you
possessing.
in
CHAPTER
HOW
SMALL
81
convenient
in
HERE
ideas
that,
them.
using
in
1,500
32
will
plans
is
Plans
which
for
by
collected
lower
has
large
find
have
the
chants
mer-
tion
investigafrom
population
in
each
have
and
better
given.
are
in
given
is
be
oughly
thor-
practical
are
and
will
It
words.
business.
business
tested
these
been
which
those
of
one
retail
expense
thoroughly
own
every
any
only
costs
been
read
to
almost
to
out, and
merchant's
while
17%
practically
that
involve
to
one
the
achievements,
ranging
towns
adaptable
tend
Each
in
note
sifted
and
other
were
will
you
100,000.
to
You
They
states
fonn,
profits above
net
OUT
index
among
maintained
WON
MERCHANTS
STORE
worth
your
carefully.
plan
ADVERTISING
Copy:
it
find
''I
advertising
our
than
have,
every
our
"I
found
with
employee
a
and
pony
of
us
and
why,
all
grievances thoroughly.
from
paid the
it
that
radius
than
so,
customers
whose
to
direct
already
we
toward
chiefly
retailer
more
getting
sales
a^e
new
growing
year.
Special:
a
efforts
if not
the
holding
southern
one
says
important,
as
to
copy
direct
to
business,"
fully
5
to
10
cost
of
to
send
cart
to
call
miles,
if they
and
paid
the
did
to
find
The
young
on
out
why
not,
out
not.
a
woman
young
everybody
if they
We
traded
with
investigated
friendships gained alone
woman's
within
more
trip."
BUYING
Mbbchandisb:
manufacturers
"By
who
concentrating
guaranteed
1"
all my
prompt
buying
with
shipments,
a
few
lowert
GETTING
20
TRADE*
MORE
prices,and service,I was able to contract for a year's supply in
advance
with delivery dates arranged so as always to have
This method
of buying usually
30-day supply on hand.
a
discount."
netted me
extra 6%
an
''We
buy most of our goods in our own
store.
This gives us
merchandise
an
opportunity to compare
new
with the lines we
have
been
canying, and has the added
advantage of making salespeople and assistants share the
sell a given
responsibilityfor goods so bought. Salesmen
fine better when
they have helped to buy it. This plan has
of satisfied customers
and
helped us immensely in the way
Rules
for:
fewer
GASH
DISCOUNT
CoxTPON
to
sales."
clearance
Ststbm
which
me,
I
instead
inaugurated
catalog.
th^ bring back
less than
in
is
to
based
the
on
goods according
to
a
of the
buy again. This
to
sales from
only worth
inconsiderable
advertisements
are
holders
the
cash
system
coupon
coupons
credit
our
a
seem
the store
at
These
reduced
would
amount
redeemable
and
"Since
of:
thirds of the
two
2%
the
chaser,
pur-
2% rate
premium
store
and
system
has
business
to
third."
one
COMPETITION
MEtimNG
the
undertook
an
We
success.
'buying
for
reasons
buy
should
''To
out-of-town:
impress
home'
at
the
upon
our
in my
merchants
educational
campaign which proved
offered prizesfor the best reasons
why
at home.
Prizes
eommunity
to
be
town
big
a
the people
also offered to school children
were
this
and
reasons
subject. Several thousand
of homes
submitted, indicatingthat in hundreds
were
essays
parents and children probably for the first time gave serious
of home-town
loyalty."thought to his matter
for
essays
on
CX)NFIDENCE
Cttstombbb':
Winning
the
square
about
neckties which
the
samples had
with
window
Not
as
in 24
the
I
have
it pays
A
at all times.
found
merchandise
purchased
were
led
expect.
me
to
not
sign: 'Neckties
they look,but worth
the
good as
hours, and
same
my
"I
time."
increased
my
up
that
to the
to be
on
job lot of
standard
that
displayed them in the
in many
popular designs.
I
65 cents.'
customers'
I sold them
confidence
in ide
out
at
HOW
MERCHANTS
81
WON
21
COSTS
Operation:
''I reduced
operation costs by
Althou^ the
discontmuing all premiums and specialdiscounts.
of sales dropped at first,
found that they
volume
customers
soon
under the new
value for their money
receiving more
were
plan,
and gradually the volume
increased,while the costs dropped.
RsDuaNG
my
19
CXJSTOMERS
being friendlywith
customers, friendlyin just an ordinary,everyday, human
feel better
of way.
It makes
feel better,our
customers
us
Being
oar
sort
Friendly
believe
''We
with:
in
us, and
it pays.
it pa3rs, because our
I know
business,
started only four years ago, has been so successful that there is
than that being friendly ^the main
other answer
point in
no
toward
"
policy ^pays."
our
"
Calling
on:
fill it with
attractive
day a week I take out my automobile,
grocer's samples, chewing gum,
cigars,and any
whole
only make
not
of the
one
many
either write
discover
we
then
I
customers.
out
the needs
with
customers
personalletters 6fferingto straighten
talk it
the difficultyor
These
about, and
calls on
day make
country
personal friends,but I find
"Whenever
grievances,we
time.
be
may
buying community."
whole
Disgruntled:
out
which
advertisingmatter
the
throu^
"On
over
plans have seldom
tactfullyat the first opportune
failed to win back
the customer."
"During one of my clearance sales I advertised that
I would
give a price reduction of 1 cent for each letter in the
of each customer
who
bought a pair of shoes during the
name
sale. Although a few fictitious names
probably found their
and gladly
in,most of the buyers gave their correct names
way
in
took advantage of the offer. It helped, too,
buildingup eur
list."
mailing
Names:
Winning
their
Friendship:
"It
pays
me
to
have
my
desk
platform in the central aisle of the first floor of
store instead of in a private office. Country people like to
my
would
store
not
know
from whom
they buy, and I know
my
I not among
customers
lettingthem know
were
my
prosper
that I am
'on the job.'"
on
a
little
DELIVERY
RsDuaNG:
offer each
COMPLAINTS
"Our
numerous
driver S50
a
year
delivery complaints led us to
'prizemoney.' It is not a part of
GETTING
22
MORE
TRADE
salary and he does not get it if he does not win it.
The $50+200
points"25 cents a point. If the driver mabBS
take the proper
of his car, we
a mistake, if he doesn't
care
All we say is,'James, two points are charged
scold him.
never
At the end of the year
the points charged
against you/
against each driver are deducted, and he gets only what is
l^t. This system has practicallydoubled the efficiency
of our
delivery department."
a
driver's
DISPLAYS
EFFBcnvB
display windows,
our
trinmiings. Below
that would
sign reads:
with
and
each
form
will cost
dress
you
"In
I show
S8.75.'
it givesthe
shopper, without
she is looking for. In
the exact information
time
considerable
salesmen
that they
my
spend at figuringand answering customers'
Shelf:
forms
over
in
suitable
it I place a card itemizingthe cost of everything
into
the
shown.
The
making up
garment
go
'This
efiTectivebecause
drape materials
"I
Merchandise:
order
to
dry goods displayed on
attract
my
my
customers'
plan is
The
effort
her part,
addition it saves
on
would
otherwise
questions."
attention to the
shelving,I himg cards on a
shelf partitionpost. From
these
upper
level with
the eyes at each
cards, colored ribbons lead
customers'
eyes
up
to
where
are
displayed the goods described and priced on the cards. This
plaiisells much of this stock and gives me nearly 100% display
value from
shelving."
my
mCKEASING
SALES
"In
advertising,window
displays,and
and
of
instead
actually selling,
talking
showing merely this
that wringer, we
talk of saving labor on
or
washing machine
wash
day by providing modem
equipment to do the work.
wash
show
In the window
a
we
day in a properly equipped
and in
laundry. This plan helps us to sell additional articles,
have sold entire wash day outfits because of it."
several cases
we
Bt
Suggestion:
our
LOCATION
OvEBCOMiNG
block
of:
''My
Jewelry
the retail district.
I
store
is
losing
out as a result. I decided to hold Friday and Saturday special
sales,and at these to take a loss,if necessary, in order to bring
I placed
In the main window
store to people'sattention.
my
I sell
all the same
of articles,
price. When
a large number
I do not replaceit with a duplicate,but
out of the window
one
on
.
Disadvantage
THE
a
side street
a
from
was
HOW
attractive
by another
on
MERCHANTS
81
WON
bargain. This plan has put
I have
paying basis in the months
a
23
used
busineaa
my
it."
MAHJNGLIST
built up an
excellent mailing list for my
with 3 by 5-inch cards.
On
by providing each salesgirl
and
address
of the
for the name
card was
a
space
BuiLDiNQ
store
each
"I
up:
prospect, as well
also had
we
prize of S1.50 for the
a
each
names
and
name
filled-incard
For each
used.
'
for the
as
month,
and
kind
who
one
sold about
we
half of these
one
We
most
in the
turned
of the
during the two months
greatest number
of live prospects, and with
obtained
600 names
work
product she
1 cent.
paid the salesgirl
girlwho turned in the
for the
S5
of the
We
contest.
little extra
a
people within the
next
months.''
few
Keeping
"We
date:
to
up
mailing lists active by
girl in each school
young
keep
our
representative usually a
lists. We
her
district,who keeps tab on the community
pay
for information, and
she sends in regular
2 cents
name
a
monthly reports upon a form which we provide. These reports
lists active,but they also tell us just what
not only keep our
peopleare doing, and we are on hand with suggestionsat the
right moment."
having
a
"
"
CUSTOMERS
NEW
I
to town.
comes
after the business
''I go
Qstting:
secure
names
I also have
new
family that
from
newcomers
agencies,and
real estate
from
of
of every
the
other
any
papers,
news-
available
agreement with the pastors of local
will give me
I say to them, 'If you
churches.
the names
of
families you know
for you.'
of, I shall do the same
new
any
I go to the new
We both benefit by the scheme.
Then
family
source.
an
taking with
in person,
samples
me
The
all advertised
of
is
food
gift from
sample
a
our
products.
store,
and brings good will. I keep after them with personal letters
assortment
until I feel that I have
the business
permanently."
SHARING
PROFIT
a
as
much
at the
earns
$150.
Stobe:
Retail
In
as
he is
rate
same
''We
we
10%, the $1,500
is
There
firm merely
been with
us
no
on
pay
a
our
man
year
agreement
gives this,as
a
We
taking out.
as
fiscalyear.
that
assume
it
By
or
sees
means
an
employee is leaving
therefore,pay him dividends
capitalstock. If our stock
receives
contract
fit,to
any
of this
a
cash dividend
between
us.
employee
plan we
are
who
of
The
has
creating
2i
GETTING
a
MORE
team-work
plan
spiritthat
give,we feel."
can
SALARY
TRADE
competitiveccunmiasion
no
bonus
or
EXPENSE
CnmNo:
and
have
''We
aisles in
main
no
showcases
in
tables
The
store.
our
orderly helter-skelter.
are
Yet,
arranged
an
they are arranged so that four showcases or tables form a hollow
rectangle,with openings at two opposite comers, so saleswomen
walk rightthrough to save time, and can enter the enclosures
can
from
either side.
with
this way
able to serve
we
are
more
tomers
cussmaller sales force than we
could otherwise/'
a
In
SALES
Building
had
"I
up:
marked
that
75 cents
at
I watched
found
sales
a
Roquefort cheese, which I
not
pound, was
sellingfast enous^.
it and
on
my
discovered
that
quarter of
one
display hiedfa
a
pound was
we
average
the
in
cut
and
two
the
cheeses,
sign reading: '20 cents,
top one
\i pound.' The sales on this article increased when we put up
the
the
sale.
Now
dozen
card.''
new
"
Cooperative
:
sales of
individual
the
appeal. So
which
stores
to
our
realized that clearance
town
making
not
were
hold
the
customers
gave
outfits in
decided
we
in
Merchants
all clearance
opportunity
sales at
time,
one
obtain
to
line at clearance
practicallyevery
sufficient
a
complete
prices. The
increase in business was
normal
about 20% over
the previous
store
One
increase during the sale.
reported a 50%
year.
These figuresindicate that the cooperativesale was
responsible
for an increase in business of approximately 30%."
"The
Increasing:
show.
pumpkin
It
in
merchants
held
was
on
off and
entirely to
given over
A complete program
farmers.
our
sale
held
town
three-day
a
the streets, which were
the displays of merchants
and
of entertainment
roped
and
ment
amuse-
morning till night, but aside from four
the people could not spend
pay attractions of the highestclass,
their money
unless they patronized the merchants.
Every
individual was
'tagged' with a tag which said, 'I'm glad I'm
I'm coming back.'
here
My store did a business of Sl,500
given
was
from
"
the last day and
And
the
with
working
well
as
farmer
a
grocer
of the
was
made
him, and
people
to
were
we
had
feel that
interested
before.
seen
never
the
merchants
in him
as
a
were
man,
as
season
a
customer."
Increasing
and
75%
Delivery:
through
I
(my
store
is
a
meat
"During
harvest
market) offered delivery to all
GETTING
28
If
girlexceeds this
sales
a
MORE
TRADE
of sales and
amount
thereby reduces
the percentage ratio of wages
her
to sales,we
pay
her excess
weekly sales,calculated at the reduction
bonus
a
upon
accomplii^ed
in ratio of wages
to sales. If she pushes her sales up to $300 the
ratio of wages
($10) to sales is reduced to 3H%*
Therefore,
she gets a bonus of 2^%
SlOO, or S2.66. It is surprising
upon
how
to
strong
increase
SAVING
inducement
an
this plan has
proved
salesgirls
to
their sales."
TIME
"Stock
boys frequently replaced on the shelves goods which
customers
considering. This caused considerable annoywere
until I had cards with the word
man
printed. A salesance
reserve
of these beside a heap of merchandise
leaves one
on
now
'
'
This
that it will not be disturbed.
counter, and is sure
little plan saves
three people's time, that of the customer, the
salesman, and the stock boy."
the
SALESPEOPLE
GETTiNa
there is
holiday,and
small
town.
So
I would
They
season.
help
the churches.
out
advertised
store
my
during
me
in to
came
sales
gross
but
saleswomen,
brought in new
I certainlyintend
see
they
them
and
customers
to
our
tions
organiza-
for
work
It
well.
as
fine
All their friends
lots of sales.
did make
and
didn't make
the
on
would
who
supply in
church
societies 10%
the
pay
labor
extra
the women's
to
of their members
any
the rush
word
during the
saleswomen
extra
established
no
I sent
that
by
made
needed
''I
Extra:
the plan
use
again this year."
SERVICE
Bureau
"I
:
'
a
use
section of the store
which
good service bureau.
This
makes
also
but
an
'
S3rstem in
blunder
catches
bureau
analysis of
errors
by which
store
my
reports them
each
to
our
only adjusts difficulties,
and a daily
day's work
not
each
of each
the nature
complaint. Through these
report about
who
the error, and we
individual
has
made
find
able
the
are
we
to
reduce
to
the
our
the
customers.
At
once
they
point where
discovered
"I
congregating
from
a
of little annoyance
are
customers."
Improving:
of
to
errors
rest
of
on
the
the
side
of
store, and
I
rearranged the
every
able
girlwas
that
my
the
shelves
which
little attention
and
store
to
had
saleswomen
do
the
took
work
out
a
hid
was
habit
them
pa'd
to
these shelves.
three
had
done
HOW
before
without
being
better service,and
To
week
hands
And
agency.
'hired'
work
his trade
when
of my
has
farmer
free
obtained
drug
store
a
men
employment
needed
much
a
courtesy, we're pretty
our
got
Several
nearby.
'amateur'
our
customers
our
noticeablyreduced."
was
the farms
on
a
through
man
course
27
sigus in the windows
placed through
are
Of
salary expense
my
to
WON
busy.
too
''I put
FABMEB8^
for farm
MERCHANTS
81
of
sure
getting
afterward."
SALES
SPECIAL
tickets
help me
keep track of the sales of
goods. The price ticket is perforated so
"Price
Tickets:
speciallyadvertised
be torn off when
This
half of it may
the sale is made.
this ticket is brought
half is pasted on the sales ticket. When
that
work
lays it aside. Thus
morning just what
cashier she
the
to
I know
advertised
every
with
little extra
very
the sales
on
the
to
buy
were
articles."
STOCK
Choosing:
attractive
goods
job lots
store
my
direct from
absolutely new
some
I started
''When
paid
me.
In
that
STORE
none
of
buy is the latest.' It
our
althou^
gave
six months.
or
be
that
sure
sales
a
us
advertising
our
we
played this up to the limit for the first five
'At no other store in town,' we
said, 'can you
everjrthingyou
me
the manufacturers,
offered
were
it
leverage
competitors have."
LAYOUT
Rbducinq
stock
The
so
Selunq
Costs
customers
departments
directory boards.
can
get around
The
stock
asking questions.
there
plan
which
the lowest-
of the department, and
only has won
salespeople. Three people
This
frequent
are
is in plain sight,with
at the entrance
customers, but it saves
for a department
care
and
and
store
my
arrange
without
plainly marked
are
priced assortments
higher prices last.
"I
bt:
not
would
otherwise
me
the
many
can
entirely
require five."
TURNOVER
LocATiNa
"SncKEBs":
"Whenever
the
rate
of turnover
in
suspiciouslylow, we list in a note book
This book is then held in the
each item that is kept in stock.
section,and whenever a salesgirlsells an item, she marks a tally
a
department
falls
directlyabove that entry. After an item is shown to be a sticker
for two months, we clear it out of stock and then do not reorder.
stock 70%."
reduced
corset
This 'notebook'
treatment
our
GETTING
28
MORE
TRADE
BOOK
WANT
Stock
Recording
because
book'
tacks
within
number
which
the
needs
all
shelving
the
than
WINDOW
the
under
were
needs
box
a
above
the
sales
thumb
of
stock
a
is to
do
put
tack
a
that
article
until
the
is
'want'
considerably
are
the
in
When
there
stays
lost
My
put
to
just
or
tack
recorded.
they
has
salesman
The
replenishing.
I
sales
losing
was
salesman.
every
below
just
I
stock
string.
a
of
that
record
to
on
reach
low
permanently
fewer
method."
old
DISPLAYS
Local
Interest:
too
I
stock,
By
have
increased
I had
and
directly
in my
position.
pail
drop
be
and
the
WOMEN
The
seen.
sign did
''Most
I
so
water
in
on
mirror
mirror
'
words:
cured.'
feet
back
of
10
cents
The
the
of
reflection
tised
adver-
the
a
"
sign,
pail
mere
lettered
it
so
attracted
arrangement
slanting
a
the
bar
foot
a
window
my
in
saw
a
of
could
passers-by,
rest."
that
store
window
advertising
to
into
it
a
dressings.
women.
refrigerators
I sold
like
women
found
hardware
handsome
were.
pail of
floated
the
the
my
CUSTOMERS
attractive,
enameled
sales
the
which
were
unusual
the
the
large
a
into
Your
fastened
was
WiimiNo:
dingy
reflected
a
hung
of
top
bucket.
the
I
gazing
on
push
''To
I put
to
tion
atten-
store's
considerably."
sales
store,
public
the
tax
happenings
local
my
it
water,
Also
backward,
not
drug
behind
soap.
in
tying
Passers-by
of
in
not
about
windows
display
will
they
Inexpensive:
and
soap
that
so
interest
local
use
much.
Unusual
a
"I
months,
three
every
of
hung
easy
runs
found
"I
neglected
salespeople
'want
into
Needs:
five
that
One
showing
day.'f
things
paid
to
bright,
Then
to
directed
I
somewhat
my
well-lighted
I
clean, and
neat,
rearrange
morning
how
be
of
most
displayed
sanitary
and
with
store,
neat
my
white-
th^
C5HAPTER
TESTED
14
TO
lowered
declares
total
the
of
subtract
from
the
its share
this
must
do
business
for
the
coming
"This
amount
amoimt
the
corresponding
of
increase
of
increase
the
amoimt
over
the
corresponding
for
instance,
one
desired
Each
increase
week
$200
"To
make
requires
each
of
some
instead
the
the
the
of
special
months
of
we
show
out
year,
plan
two
to
show
before.
increase
of
share
than
the
$800.
approximately
year.
this
increase
special
building
seasonable
or
a
52
should
more
map
the
over
Going
previous
year
We
show
total
our
increase
of
month
year
month's
of
securing
figure by
week
slightly
week
week
12, thus
before.
the
Each
an
some
of
volimie
should
set
we
special planning.
around
events
sales
these
article.
special
events
of one/'
of
Some
later
show
same
done
increased
required
total
of
be
must
each
for
events
For
the
over
the
determined,
is
the
each
suppose
must
"After
gives
year
the
week
$10,000.
at
year
increase/'
business
by
the
of
divide
find
we
desired
total
month
each
also
farther,
"For
divide
month
step
the
the
in
month
do
and
year.
then
we
the
result
reach
to
business
grocer.
the
The
we
more
should
amoimt
business
IDEAS
and
Ohio
we
year.
AND
of the
an
business
last
for
week
Engard,
amoimt
during
each
show
Walter
PLANS
big fight
costs,
must
year
we
SALES
in
win
IV
in
this
Engard's
chapter,
plans
but
the
29
and
most
events
are
important
described
point
he
GETTING
30
makes
is that to
we
and
exacting
growth of sales requires
It is not
planning.
do
must
last/'
did
TRADE
normal
a
seciire
special preparation
"We
merely to say:
than
MORE
The
$10,000
larger a
its demands
sufficient
this year
more
business
grows
the
for accurate
knowledge
The
the part of the management.
on
tendency today
in all lines of business, investigationreveals, is to
and
analyze markets, to set sales quotas scientifically,
and programs
which
will sell the
to plan sellingevents
dollars.
goods and win the necessary
Study of retail merchandising campaigns reveals
effective sales plans and
selves
thempolicies which
group
(1) basic
conveniently under these five heads:
policiesunderlying successful sellingcampaigns; (2)
mining
getting the facts before you begin to plan; (3) detersales policy; (4) sales plans which
the
on
build
petition
prestige; and, (5) gaging and meeting commore
are
right basis.
The importance of a sound
store policy is emphasized
in Chapter II, and investigationindicates
that it is
the
on
vitallyimportant
when
a
merchant
out
sets
to increase
sellingeffectiveness on a definite plan.
The value of unfailingcourtesy to sales was
impressed
his store was
Minnesota
day when
one
a
grocer
his store's
on
crowded.
well-dressed
A
effort to have
off and
waited
her.
served
the woman's
By
told
who
noticed
whom
the
he
him
learned
he had
janitorof
had
been
there
workingman
had
been
who
as
served
several
had
had
time
to cool.
steady flow of new
tomers
custhat their janitor had
mended
recomthe best and
cheapest in the
could
of business
large amount
the
discomfiture
his grocery
neighborhood. He
chance
time
the
soon
grocer
on
workingman
a
on
before
The
wait
him
pushed forward in an
her, but he politelyput her
woman
that
a
not
should
the
in his turn
why
understand
to
come
poorly
some
large apartment
this
him, until by
dressed
weeks
houses
laborer
before
near
was
by.
TESTED
"The
PLANS
SALES
is
81
always right.
^no
qiiibbling or other goods. Always
Money back
take
never
tomers.
advantage of cuskeep promises,,and
customer
never
force sales."
Never
four basic rules express
These
hardware
merchant,
built
such
on
why
understand
a
his
large-storeclass.
A policy like this Iowa
but
many,
say
believe,should
feelingswithout
realizing it.
in retail shoe
"Sales
salesman
clerk
the
because
"In
the
on
for shoes.
go
lost because
he pushes
a
"I saimter
is
The
idea
sale
always
is
across."
he
lost
proprietor.
to the
over
cannot
fit
him,
importance
warrants
it.
It is
situations.
stock
button, which
the
are
more
many
have
we
shelves
push-buttons
where
that
sees
a
at
once
brings
salesmen
sale is being
inabilityto satisfy the
to the
the
properly,"
being turned
salesman
a
of his
that
that
therefore,
When
up
lost because
salesman
these
various
being fitted,and
interest
the
avoid
store,
my
located
his
because
than
are
customer
he is
the
because
policy to
our
structive
con-
retailer expects
a
ostentatiously calls the
to feel that
Ukes
proprietor
the
I believe
"And
often
stores
handle
cannot
continues.
rather
by real
study his clerks
shoe retailer. ''Many of
eastern
tomer's
knowing why, and hurt a cus-
lose sales without
one
if
measures
good starter,
a
up
I
''Every merchant,
declares an
closely,''
No
followed
be
it must
is
trade.
draw
us
frequently brings it
he
merchant's
merchandising
to
and
an
consider
helpers. When
you
aggressive merchandising methods
bed-rock
foimdation, it is easy to
business is rapidlygetting into the
that this merchant's
are
sales policy of
the
of his
attention
the
to
"
"
"
Iowa
wrong
customer
me.
the way
he
sell him.
ten
customer, ask about
nine
times
out
of
proprietor has taken a personal
generally puts
pleasing, and most
GETTING
32
The
MORE
TRADE
easiest way,
probably, to get facts pertinent to
business
jects
^takingup the second of oiu* five sub-
your
"
ia
through a close watch on current activities in
territory,and a mailing list. Thoroughgoing
your
will give almost
merchant
mailing list methods
any
practicallyall the facts he needs to know
regarding
his
its
territory, its population, and
buying
possibilities.
"
BBRB'S
A
SIMPLE
ENOUGH
CAN
USE
jeweler keeps
One
social and
business
learns from
PERHAPS
unusually
an
functions
the different
specialevents
PLAN"
TOU
rr, TOO
and
careful
watch
on
entertainments.
He
organizations of his city when
scheduled.
example, if a group
of business men
plan to give a banquet and to present a
loving cup to a fellow citizen,this jeweler tactfully
bids for the order for the gift.
are
like manner,
In
he
For
watches
all athletic
and
events
solicits
graduation exercises,and in a dignifiedmanner
the business
of supplying trophies or gifts.
If a customer
buys an engagement
chant
ring, this merthe forthcoming wedding
gets the facts about
and in plenty of time"
through a card mdex
systemregarding the wedding ring.
approaches his customer
first child comes,
this jeweler makes
parents, friends, and relatives that he
When
to
the
the
glad
to
help
card
The
to the
tenth
year
"follow-up"
anniversaries
fifth year,
^bring
"
and
vague
hint
is thrown
effect
that
the
then
select
a
points
out
doesn't
each
on
his
to
imder
that
he
certain
has
wedding
a
here,
even
"
to
this
will
event.
plan
"
card
the
No
counters.
engraved
an
prospect addressed
a
end
instances, up
some
is made
present for
out
in
of
business
insistent solicitation
time
will be
presents for the baby.
index
The
however.
up
select
known
^justa
to
the
doubtless
in
The
"complete
jeweler
stock
at
GETTING
84
rea43onable
"in
MORE
He
prices."
'*
times
between
believe that
they
solicits these
never
he has
^when
"
TRADE
prospects
logicalreason
no
to
in the market.
are
jeweler also enlists the aid of his salesmen in
sales.
summer
helping his follow-up system to make
The salesmen
and
are
constantlypicking up the names
addresses of new
prospects, and a little "sleuthing''
The
follows
as
result.
a
Say, for instance, that Robert
Dwinell, a bachelor,
is noted
in
ring. His name
purchases an engagement
in Figure 3.
the card
This
index, as shown
card,
filled out,
completely
when
full name,
fiancee,and the date
benedict's
usually
local newspaper
the
week,
index
card
is
spends
cards, addmg any
man
The
the
appears
on
system
does
dates
market.
date.
to
three
or
than
It also
facts
to
get
a
tip
on
salesmen
The
are
give it close attention.
all the
days going over
have secured.
he may
customer's
salesman
favorite
mformation
According
merely
his customers
when
his store, and
Its
buyer.
two
card.
more
to
up
times
each
of
name
his
approaches, this
season
summer
brought
other
at
of
through the society editor of the
the
as
is
busy
Each
the
set
^who
"
prospective
address, the name
for the wedding. These
usually glad
approaching wedding.
One
too
the
his
obtained
are
carries
binds
it makes
influence
to
to
the
jeweler,this
keep him
posted
will be
probably
on
in the
his
regular trade securely to
the occasional buyer a habitual
from
extends
generation
to
generation.
Unconsciously, perhaps, the customer
he
finds his mind
reverting to this one shop whenever
has occasion
to buy jewelry, although he may
pay
little attention
to the fact that the jeweler'sdignified
but
to his desk
just at the
convincing card comes
three times
two
a
or
right moment
year.
"I
rely upon
upon
which
my
mailing Ust
to base
my
to
furnish
me
sellingplans," says
tion
mformaanother
SALES
TESTED
"It
jeweler.
is
from
taxpayers
cheap and
the tax
buy who are not
For instance, suppose
and
knives
forks, and
in again.
"I
and
always
make
write
her
lines,if
I beUeve
to
a
woman
list of
a
decides
she
and
name
is
in to
comes
she
that
address
looking at
shown
look
will
at
drop
this stage
at
'k. and
call attention
she
secure
ers
customThen, when
this list,they can
be added.
on
letter and
a
fails to
If she
she
note
a
simple
35
records.
her
seciure
PLANS
f.'
Later
I
lower-priced
to my
expensive stocks.
in again, I mark
the card
(see
was
come
too
and address,with a signal
Figure 4) carrying her name
to indicate that she probably is buying of competitors.
reasonable
At
'customer
into
class,'
"
classes
should
intervals
the
"I
go
out
after
to
conaes
other
any
"Among
agreement
is
I
Once
the
believe
list is
sale is recorded
in other
lines
of every
new
family that
wide-awake
small-town
grocer.
a
says
of
famihes
new
agencies,
estate
available
my
equally popular
business
the
names
real
from
store.
my
which
by investigation.
town,"
*'I get the
offers
same
advertising list
automatically,if every
this method
brought
direct
in the
card."
proper
That
is
in
the others
my
special
them
interest
started,it grows
on
I divide
^receive
"
she and
the
the newspapers,
telephone directory, and
sources.
plans
with
from
for
getting these
of
pastors
several
is
names
an
churches.
I
'
of
them, in effect : If you will tell me the names
famihes
neighborhood, I will
moving into yom*
new
both benefit by the pkh.
do the same
for you.' We
I go to the new
"Then
family in person, taking with
me
samples of advertised food products. I give them
the samples with my
compliments and explain that I
say
to
carry
the
about
all the
goods they
being better
popular
know
than
brands
about.
starting on
This
new
and
appeals
and
sell them
can
to
them
untried
as
food-
GETTING
MORE
sample
assortment
36
stuffs.
The
good will and
I keep after them
their
that
I have
''One
is
gift. As
a
frequently comes
personal letters,until
with
result
a
business
to
me.
I feel
permanently!''
their business
mistakes/'
easily dwell too much
upon
dealer/' yet mine
Pennsylvania delicatessen
can
says
a
have
taught
follow:
to
TRADE
I find it worth
rule that
merchandise
no
in
unless,
a
me
it
advance,
traced
is
of its results
ramification
is safe
plan
while
my
advisable
or
throughout
they will apply
as
every
the
to
particularenterprise.
for
Good
Phone
Berriman
Eats/
"'Hungry?
advertisement.
But
proved an excellent newspaper
it kept our
so
busy that
telephones and deliverywagons
both
had
be increased
to
devoured
the
profits.
"Similarly,mailings
well.
strong, but
THIS
One
with
to
a
He
estate
the
dealers.
When
appeal is nearly doubled
welcome
to
DEALINGS
THE
FROM
it
START
poUcy
a
to
families
of the
there
finds
if he
follow
family that
new
names
druggist
the
nothing."
were
CUSTOMER
BASIS
secures
family,
new
PROFITABLE
druggist also makes
personal letter every
town.
real
A
HIS
PUTS
out
pan
by direct soUdtation
up
repeat sales
MERCHANT
ON
lists didn't
to selected
followed
of them
One
started
imtil the overhead
in mmiber
are
that
children
forte
the
addresses
up
moves
from
in the
of his
his letter of
of them.
one
third
determining of the sales policy our
ahnost
unanimously
general subject ^finds merchants
effective
far more
of the opinion that sales efforts are
if they are planned at the start to line up with standard
The
"
"
policiesof
"One
the
method
out
plans
Bays
an
for
eastern
store
in
helpfulin working
year's merchandising operations,"
which
a
question.
I have
department
foimd
store
owner,
"is to prepare
^i^Al/ i^w6taK^"tei0^fiuslnen
Name
SVf
Rea. PfMNie
^
tW.
Salemai^MlMrAu
^^^
Phone
Bus.
/.-P/u^,
*f29.r(0 Remarks: Ouj.I-.Cwm^
i|0^ja-ni7
Figure
is
3:
kept
A
complete
this
on
card.
of any
record
Any
kind
facts
entered
are
inclinationa
of a customer's
which
at
will suggest
'
imder
once
and
purchases
jewelry
purchases
'remarks."
!
.^
-45
"
Figure
Another
4:
he
can.
plan
He
enables
jeweler gets
the
names
classifies these
names
as
him
mark
hard
to
hit the
37
of
all customers
described
with
on
page
and
35.
his sales letters.
pects
pros-
Thifr
GETTING
MORE
of various
timely
38
a
schedule
TRADE
Such
events.
schedule
a
easilybe prepared by nmning through the pages
of a calendar, and it will suggest a number
of timely
and
appropriate sales plans.
I study the seasons,
also. I plan ahead
for seeding
time; stove
campaigns; fur selling and fur storage
campaigns; style shows and style publicity;and put
may
*^
down
on
I do
not
of
the
a
paper
depend
definite schedule
on
remind
wholly
or
memory
of every
About
on
operation.
the
nearness
the
only events
which
be scheduled, I have
cannot
found, are the
deaths
of people and
births and
styles all of which
in merchandising.
call for special treatment
Again, I schedule the opening and closingdates of
schools and colleges;
the dates of conventions;
the dates
and
football seasons;
of the opening of the baseball
election days; inaugural days; the dates of the opening
and
of legislaturesand
other
important
congresses,
event
to
me.
"
'^
All of these
dates.
news
eyents
easily be Unked
may
merchandising, advertising, and
practically
any store's sellingplans.
with
of
has
completed as far as
practice to note carefully
affected or helped by each
it
schedule
coming events
practicable,I have found
the
*'When
department
of interest
'^Coming
head
to
his
back
which
list of scheduled
a
her
or
to
be
taken
to
good
be
give each
which
are
sales policies,if
standardized
make
events
I
a
department.
not
general policiesare
individual
imderstood
by every
should
Then
in
been
will
department
event.
store's
them
definite
in
the
and
a
clearly
store, pains
they are linked
I speak feelinglyand
so,
as
closely with sales efforts.
I have
these subjects because
the
seen
on
I)ositively
failure of a good many
or
campaigns hinge on
success
the knowledge of store policies.
of the specific
questions
Here, for example, are some
with every
that come
merchandising
up in connection
so
'
service
store
'^
SALES
TESTED
plan, whether
sellmg event:
1. Shall
in its
and
the
store
year,
a
covers
a
39
month,
short
a
price quotations
comparative
use
only
or
advertising?
Shall
2.
it
PLANS
endeavor
who
customer
store
stand
to make
a
the
has
back
of every
permanent
transaction
of every
customer
complaint?
a
advertising be handled as a service to
the public for the good of the store today and tomorrow,
is advertising space
for specificdepartto be used
or
ment
operations regardless of the fut\u*e,and at the
of established
publicitypolicies?
expense
4. Is the store's pubUcity to be judged solelyby the
direct visible residts it brings, or is it to be
specific,
3. Shall the
it reflects the
with which
judged also by the success
day-to-day character of the store, its operations, and
its foundation
policies?
6. Is the store's merchandising to be judged by spectacular
selling events
judged by the
be
to
m
certain
departments, or is it
well-regulatedoperation of all
departments?
6. Are
a
helping hand
that
should
7. Are
departments
there weak
of
at the expense
be
given
other
to
which
to be
are
publicityand
display
departments?
certain departments in the store
there
given
which
developed prestige enough to justify special
consideration
in the general merchandising plan of the
have
to
store
"Of
the
course,
of
wisdom
reason
to
answers
It is not
of these
many
Uttle
but
with
adopting those
is self-evident.
the
departments?
determined
be
can
help other
answers
as
always
easy,
study, and
definite
Actual
emphasized
sales
subject in which
plans
you
"
the
our
are,
need
the
policies
however,
policies practiced effectively,and
I have
questions
that
to
get
is the
for standards.
fourth
perhaps,
head
most
"
^form
the
interested*
But
don't
declare
lose sight of the
that
will almost
behind
An
a
made
He
since he
matter
of stock
merchants
most
particularlysuccessful plan
a
study
and
you
foimda-
a
formerly
general merchandise
series of sales at the first signs of hot weather.
txuned
what
out to be a mistake^ however,
called these sales by definite names,
when, as
of fact,they were
merely plans for getting rid
dealer
in
to hold
that threatened
example,
For
fact that
merchandising principles.
Iowa
started
TRADE
invariablyfind careful
tion of sound
a
MORE
GETTING
40
he
might begin with
follow with
sale," then
into the
over
^'odds
an
''clearance
a
siunmer.
and
sale,"
ends
announce
''general clearance sale," and finallyhold a
During the first three years
"profit-sharingsale."
he spent advertising this
he foimd
that the money
and
circulars
string of sales through the newspapers
of profit. The fourth year
returned
a fair percentage
he only broke
even.
next
a
fifth year
The
sale."
and
ends
was
worried
his third
to this
he
His
when
sale.
YOU
IN
ARE
decided
that
foimd
his sales
off
that
A
check
a
buyers
LIKE
HOLE
HERE'S
A
he
had
THIS
cried
these sales
overstocked
were
much
to be done.
WAS"
MERCHANT
OUT
WAY
his dilemma
carefully.He
"wolf, wolf"
his customers
reallymeant
for page
on
space
simply didn't respond
had
HELPFUL
studied
merchant
foimd
the
And
WHY,
He
he signed
publicity. Something
IF
This
Uttle response
to the "odds
second
sale also went
dead.
He
foimd
no
to
little more
too
longer believed
them
because
than
often.
that
they had
efforts to clean
shelves.
word
"sale"
entirely
he called a "three-word
and instead began what
selling
words
"final
three
The
were
disposal
campaign."
of high-pitched
^nothing here that smacked
days"
He bought a moderate
amount
sales announcements.
So
the
"
retailer
dropped
the
GETTING
42
be
a
long
"11
a
window
time
in
inside, run
them
on
figure,and
and
day
69
at
brings us
to
into small
or
table
a
on
we
offering
like odd
some
last division
gaging
"
order
days of huge maildepartment stores reaching out for
and
concerns
more
200,
of the entire lot."
fifth and
our
have
we
some
cents,
probably dispose
we
if
advertisement
newspaper
In
meeting competition.
trade
but
them, stack
a
certain
a
TRADE
sellingthem^
full of
close
This
MORE
these
and
rural
has
that
districts,no merchant
the
can
on
safely feel that he has a "strangle hold"
is due for a
He
buying dollars of his community.
towns
rude
awakening,
more,
merchants
if he
feeling.
wide-awake
That
not only
are
progressivemerchants
against, but are
holding their own
actually taking
business
from
their big-city and
petitors
catalog comaway
and
is clearlypointed by investigation. More
communities
offer
their
With
this realization
value
waking
are
to
up
certain
goes
a
that
they
advantages.
fact
the
definite
growing appreciation of the
merchant's
of
"get-togethers."
"Oiur problem was
the competition of a city
to meet
and only a few miles
than 12 times as large as ours
more
merchant
distant," says Frederick
Hall, a small-town
who
owns
a
"The
solution
the roimd
proved
winner
a
It
ago.
when
came
made
we
an
trip fare of any customer
made
purchases amounting
and
etore
in Illinois.
store
has
as
led
as
soon
to
we
many
who
to
came
it,a few
our
plan
The
to $5.
started
new
offer to pay
years
unlooked-for
and
expansions.
"For
his
customer
who
to
came
town
in
wanted
how he
to know
buggy or automobile
him
to participate. For
we
provided a ticket
provided for the stablingand feeding of his horses
if he preferred,he could have a meal ticket good
own
was
that
"or,
for
instance, the
a
dinner
semilocal
at any
customers
hotel
or
asked:
restaiuant
^What
in town.
about
us?'
Our
For
SALES
TESTED
them
provided
we
'Good
for
Then
20
would
do
for
refunded
a
been
had
given
send
time
store
of
ways
Customers
different,
costs
we
schedule
a
for
and
70
or
are
and
afternoon
jump
announcing
and
salesmen.
day
50
in
who
goods,
one
over
interested
in
all
of
and
we
fares.
car
store
our
we
bar"
special
our
selling
in
chapter
the
important
and
like
always
eager
you
down.
as
news,
give
which
stores.
All
emphasize
the
facts
then
community's
your
methods
small
this
community,
your
when
of
to
in
came
successful
knowing
people
bill
25,000,
people
2,000
addresses
analysis
our
getting
a
of
time."
to
described
for
newsy,
60
letters
imusually
of
of
purchased
customers
plans
necessity
addresses
single
a
circular
proved
your
as
completes
the
what
population
a
and
many
in
from
have
know
out
of
out
names
these
This
and
store,
their
them
gains
of
our
as
keep
trolley
20-cent
to
worked
we
time,
and
refimded
To
so
names
in
Sometimes
have
^wanted
words,
department/
the
"
short
the
had
of
the
fares.
very
had
we
with
10-cent
outside
fixed
them;
car
"In
had
we
"
43
stamped
and
5-
our
lived
who
limit
^the
zone
in
cents
customers
coin
brass
a
PLANS
about
finding
new
attention.
merchant
one
to
see
and
it
to
them,
hear
sales
Be
puts
it.
something
jmnp
up
V
CHAPTER
ADVERTISING
METHODS
THAT
INCREASE
PROFITS
HIS
semiannual
the
best
buying
advertising material
of
Once
merchant.
thousand
several
his
showing
A
few
his
on
this
and
after
days
mailing
he
trip in
the
merchant.
of
a
feel
"They
York
reading,
and
I will
that
in
of
its
that
has
about
drop
from
return
in
using
to
his
Find
clothes,"
the
a
is
to
an
its
business.
of
the
new
is
flected
re-
who
"small"
are
has
of
clusively
conwere
no
^'outgrown
exception
article
develop*
proved
is
merchants
business
important
44
This
who
without
growth.
feeling
in
importance
whose
almost
and
advertising
contributed
retailer
offering
me."
but
merchants"
customers
my
this
out.
fairly sure
in
mark
course,
experiences
I put
them
read
are
the
to
for
retail
makes
this
declares
hit,"
advertising
letters
Of
vital
is of
best
up
business
small
"small
longer.
right
goods.
by
once
is
he
invitation
a
alone
the
when
more
the
the
are
be
Advertising
ment
from
note
hints
care
an
make
postmark
attractive
and
always
letters
New
friendly
merchant's
the
customer
every
newsy
the
stocks, and
after
letterheads
on
city
few
about
orders
he
East.
"These
The
the
a
word
western
City."
York
containing
a
store
up
brief
styles,
the
made
reaches
furnish
one
York,
a
selecting high-grade
into
"New
to
New
list receives
merchant,
coining
in
letters
form
name
York
New
trips to
you
diet
find
which
ADVERTISING
THAT
PAYS
Close study of advertisingmethods
small
careful
on
with
of hit-or-miss
them
substituting accurate
which
economically.
principlesupon which
most
circulars
for
or
displays,and
There
93
are
He
ing
grow-
progressive
line of
or
for
business,
guesswork.
his
He
prospects
fimdamental
advertising
out
result-gettingcopy
advertisements, window
uses
work
to
The
will reach
newspaper
so
on.
three
merchants
his size
knowledge
is choosing mediums
by 93
plans
policiesbased
analysis take the place
methods.
what
matter
no
used
and
investigationand
merchant,
is
reveals
stores
that
45
to
principalmethods
employed by the
their advertising expenditures
make
These
methods
ing
are:
(1) buildpull greater returns.
tisements
store personalityin advertising;(2) making adverand interesting;
and, (3)settling
more
newsy
details by test and analysis.
read in Chapter II how
of wide-awake
You
a number
merchants
are
building up forceful store personalties.
Here
we
take
may
several
up
plans having direct
re-
everyday advertising problems-plans which
contribute
directly to store personality.
Standardized
type faces and styles of composition
popular, and no doubt
probably represent the most
effective ways
of getting store personalof the most
one
ity
ktion
to
into
circulars
and
advertisements.
newspaper
tinctive
has disChoosing a clear,readable
type face which
features,is a method
pursued by a largeniunber
it has the advantage
of progressive merchants, and
of being easy and effective.
One
retailer
held
prizes for various groups
high school
pupils, and
he
advertisement
type,
new
which
had
arrangement,
entirely.Prizes
were
advertisement
and
contest
a
offered
of contestants,
adults.
Each
set
up
attractive
children,
as
succeeding
differently different
different
"
styles of
layout
offered for the best letters telling
of the
series
was
most
effective
MORE
GETTING
46
from
type-and-layout point of view.
be accompanied
by a complete set
a
had
TRADE
to
sent
Each
letter
of the advertisements
out"
the information
he
repliesgave the merchant
desired regarding type and layout^ and helped him to
establish a definite advertisement
ity.
policy and personalfirst-class mailing
a
Incidentally,he obtained
The
list,and
fine lot of effective
a
contest
was
SOME
ARE
VALUABLE
MIGHTY
INTERESTING
Wisconsin
he
it be
he
nimiber
a
that
newspapers
of
local newspaper
the
he insisted that
particulartype
"Get
retailer says:
cooperation;
advise
can
use
you.
closely, to
close
Getting
knowledge,
But
all the time
determine
displays
eniunerated
"
reasoning
out
decided
"We
unaccompanied
store
allow
to
not
brighten
to
ways
by
a
soimd
a
a
New
we
England
to fimdamentals
his
bxmdle
blotter
making
method
second
he got down
small-cityclothier,when
tising
adver-
study your
policies are
difficult tasks for
not
points
many
advertising and
"
^were
on
business."
interesting the
more
printer;get
your
for
what
into
news
more
to
his
profitablein getting new
and
in
AN
purchased.
One
his
metropolitan
fomid
of that
ON
POINT
tising
good adverthat of standardizing on one
them
tjrpe style. When
none
in
merchant
ideas, among
office had
IDEAS
ADVERTISING
advertising
Studjdng
one
the
on.
HERE
gave
advertising while
or
advertising.
to go
some
out
other
of the
little
ing
"In the furnishadvertisement," says this merchant.
goods department we keep blotters advertisingthe
clothing department,
there
blotters
are
In
bujdng
our
in
and
about
this way,
we
department
other departments.
one
in the
the
clothing department
ment.
furnishing goods depart-
call the
to what
attention
we
have
of
those
to offer in
Figures:
same
store*.
probably
rtyle erf approach
TWs
The
it ia Dk*
Laraon
talking.
The
it is pullinK trade
reafoa
talking.
point ia
"
be
The
reader
is
would
never
Naturalnew
natural.
47
not
for Dick
In
work
at
I.arton
doubt
leada
aa
to
aO
ft*
i" becauae
to
who
i"
peraonality.
GETTING
48
''We
also
MORE
obtained
"I find that
great deal
a
spring by printing up
the high school, with
The cards were
given
a
TRADE
lot of baseball
the
out
players^
at every
cards
score
names
for
them.
on
game.
handle
to
want
women
publicity last
of
the
goods they
constitute a rebuy to an unusual extent, and women
of our
markably large p^centage
buyers. Along
about
to the boys'
Thanksgiving time we
put next
department a rack of bath robes and house coats.
Women
to the boys' coimter
cannot
help but
conung
notice this display. They see that we have bath robes
and
house
time
had
we
This
twice.
in well-selected patterns.
coats
to reorder
robes
and
where
well in advance
of
mas
Christ-
house
of sales in these two
increase
directlyto putting them
examined
bath
One
coats
lines I credit
they could be leisurely
the holiday season.''
Hitching-up advertising with local events and community
interests
pulls splendid results for several
One western
merchants, investigationreveals.
jeweler
by concentrating on this poUcy has practicallydoubled
sales within
a
comparatively short time, and with
absolutely no increase in advertisingoutlay.
the schools
"When
he
"one
of my
surrounded
says,
gave
a
May
wiadows
contained
pole
by dolls.
I usually show
for a week
season
with tiny playersproperly named.
May
I believe that it is advantageous
manufacturer's
national
advertisements
and
"At
of
a
one
time
lot of money
manufacturer's
a
I tried to buck
and
with
in the end
of both
various
lines.
baseball
little baseball
Under
field,
this method
to connect
with
up
in
the
printed
displays.
the national
campaign
another
line.
lost out.
Now
advertising and push
As
while his campaign is on.
more
the
During
a
miniatiure
a
advertising, both
in window
jewelry manufacturer
celebration,"
Day
other
I also find it wise to
a
I spent
I use a
directly
lines in-
result,I sell
use
freelythe
advertising services offered by manufactiu'ers.''
II
U.
'H
Jlri
It
i/
Now for the Sale of White
in the May MobilizationSale
M4di AnrtMy Md
comprtlNMlvt
MtMlilit wiiy ttlMr cwiiMwifloi
TK
b
riu
dtfly
miiritui
MTCHX
m
tipirk ttylM mi
ffECML
lytiMct
2. Only
qroftk*
llM Miartii Hmh
atfvwtiaai
Sd"
Miy
Il7.yw
40-iKh
"HMh
Am
H"ad"dt
ctock
ud
o(
wabtiag,
yd..
Cf*
whh
fwhuc
Md
have
NMdlB
advuGca"
Am
our
aad
de*
thoc
that
OREAT
aad
Coals
Snita. Coau
nemat
Miw
You
$11^
$13JM", $18J4I
DOLLAR
-irill And
Baybrly
twaj
Brida^ Madam
Appletoa City.
different
ten
araiiU pricad in thia
mora
varietyvaetly
coatingJuM
ONE
lM^yiair-"ua*
aad
hirinarii^
noat
vieiag with
Vahw
$7Ji^
17 Trading $Min]^trs gtren
ia on*
pttrchaM, which
SALE.
MOBILIZATION
EtnXUjCt
the
haa
giving out
are
our
BayHere
17 A PI
foe Mca,
iMVpcovs
tale of Woomm
in
intereit the
to
moothi'
our
arc,
wa
beaafit of
tlw
ia
prqwred
biqriag ia
the
fj
[aadlojral
tltt buycn
W"'
dqwrtmrnt
buy
depart*
Wonca.
wflaaaRWqr
modea.
,"udte
to
thoe
^iriagMylet
aew
and
Salt af SkoM
I
OM
growiag
.......
May
of
MSO"^^
{"
TWkm'aadMfo
feat
our
mcM
28e
Skiria
EallU ""
SAU
Sal* af Soili
May
ttr^xd
bcantifitl Aw
m.
if thi
ooaaing long ditrtwcra
Si^. our
meat
prWuf if
mm
at
46e
Otfuxiio
of yvda
aie
*VALIIP
If irtat IH^
BRIDES
fran
if ItIT
SMI
ago
""rt
ai
WWTE
Boya, ChOdren
Voilct,yd. fOc
Fmch
ihccr
If tMa MAY
tomcn
yd.... 39e
tMa
afkM
shoca
quality. 28e
Orgudio,
Whhc
Am
42-lKb
Goedb
VoiU, fiM
ihcer
Am
45-iBGh
of WUto
Whit*
piamntf mmIm
JUNE
AND
MAY
for Smmmt.
hr thi Hwtfrati
pMrliH
ww
iM
SMiS
tMi
h
hir Mtacttms
it"M
liar
at thi ntait
MRts
MTihr
MtoitliM
wutat
if WHti
INBtiZATION
3 GIRL GRADUATES
r^
lack
May Mt
TMs
Graft IMY
If Mr
RATWO
nlidy
UUS
MAY
HmMm.
if tht Mill
ttipt
wkM
May
Sak
atyiea .of
for..
$L00
BnyPfariy
abaolutalyFrac with each and arenr
why you ahould atttqd thn
rmaoo
YoiAdkl
RITCHIE'S
rwy
It b
ita
tk"
lie
Ana
ttSS^ia
ktfa
Ute
ia an
iho
eU
eae^ daiJag bock
dajravhiB Chkafe
lllihlpB pert. The
to
ma
a
thepweth
"ad
needs.
Note
Here
7:
the
is
merchandise,
It
is
timely,
particularly
to,
buHocM
many
Mw
out
maay
"od
direct
Herllett and
the
tetlM
Figure
Aad
the
GREATEST
STORE
afo, he theads "t the
hold tlieir bmo.
yean
Ihu
ha
the
ma
leiM
for the pNi"
Baa
Andthegr
wiO td yout^
buyer hia
aa
a heidware
laightgo oOi end f"piM.
"nhat'b
ahM**'
o( pnclicel eiperieaca detailed
kaoiriedie of
yean
theuMad.
in
hies ope naa
a
oootacL
Ubbeid,
Spencer,
ia
1
that
bdiaMa
to
CheiieB
buying
Coaapeey^ ceftakf" pnwt
they
bbom
it becuae
idencyvhm
vacant
policy thet the Imnim
Awlthewii-
hMfadthMtabavlKit.
with
OOUNTTS
AT. CLAIR
ahoat
tib oJttr-amakm
another
and
too.
first
lOOjOOO
dose
suggests
Some
paragraph
of
"
50
the
shows
which
advertisement
of
study
type
is
^itis difficult
the
very
to
familiarity
community's
bad,
however.
read, and
mussy
"
THAT
ADVERTISING
PAYS
61
display may be had from a
dealer.
window-dressing experience of a delicatessen
dressed
his
from
A new
a big-cityfancy grocery
man
with
window
imported goods sl beautiful display.
hints
Valuable
window
on
"
Friday not
declares
beautiful window,"
that
from
''So out
until
Monday
from
"But
aristocratic bottles
the
went
article sold
an
the
and
merchant.
and
cans
in
cakes, figs,dates, peanuts, honey in the
fish,deviled crabs, boiled chicken, cold
comb, smoked
boiled meats, and salads.
By 10 o'clock that night the
loose
went
empty
was
everything
sold.
magnificent
window
^bees,hives,
display of honey in the making
combs, the whole natural process in operation before the
for a week; but it
^held popular attention
public eye
of general
entailed the loss of five times the volume
On
the
sales beyond the sales of honey it produced.
other hand, displays of delicacies in front of counterSi
help herself to a sample, eat
can
ri^t where a customer
window
"
A
"
"
information
Definite
this
merchant
same
to be
sales to me."
enjoy it,mean
it and
clerk with
a
as
to
character
the
to
as
''All
sajrs.
instantlyinformative
instructive
goods is important, too,
about
signs are designed
price,and emphatically
of the article. A girl
our
genius for cooking, stuff ed
with
red tomatoes
chicken
salad
in the window
absence, placed them
two
dozen
some
hand-
and, during
with
a
my
sign of her
'Stuffed
20
each.'
cents
Tomatoes,
I returned to the store, at 5 o'clock,not a stuffed
When
The sign was
had been sold.
tomato
changed instantly
Stuffed Tomatoes, 20 cents each.'
Salad
to 'Chicken
devising
own
"
o'clock
6
By
had
A
"
been
Missouri
hour
one
hardware
spot in town."
two
the
whole
two
keeps
his windows
dozen
toes
toma-
disposed of."
illuminated
he has
"
calls his store
"the
"
^and makes
it
a
liantly
bril-
brightest
changes his display each
He
wiadows
prices plainly.
and
man
point
week
"
to mark
GETTING
62
MORE
TRADE
stationeryshop handling photographic goods had
initswindow
several different sizes of cameras.
Grouped
around
each
model
several
amateur
were
pictures
A
made
with
that
but
wide,
was
children.
A
attractive
and
Going
size of
emphasis
noticeable
enumerated
range
placed
was
increase
on
of
subjects
snapshots of
in sales followed
this
appropriate display.
the
to
on
The
camera.
last of the
early in
principalmethods
three
chapter, investigationindicates
the
problems involved in
retail store advertising are greatlysimplifiedif careful
of a store's
and analysis are
made
preliminary survey
market; of its logicaltrading radius; of its possibiUties
for reaching beyond that arbitrary limit;of what
class
clearlythat
most
of trade it aims
the detailed
o"
attract; of the extent
to
and
type of its
competition; of transportation facilities in its territory
affect the
which
trading population; and of other
questions which quickly suggest themselves.
TOU
MAY
FIND
Taking
up
first the
smallHstore
most
can
how
Just
represents
merchants
windows
far to
a
a
retail
in
medimns
question for
to use,
the
display windows
best pulling medimn
store ansrwhere but has
merchandise
displays.
using advertising
apparent
more
18, of course,
a
YOUR
OF
find
filled with
go
SOME
HERE
question of what
Hardly
use.
its show
TO
PROBLEMS
economical, and
easiest, most
they
ANSWERS
THE
BIG
space
outlay of dollars and
individual
stores
which
cents
to decide.
crowd
into a
steam
can
figurethat the more
you
which
few mediums
^providedyou select the mediums
will give you
the largest circulation of the grade you
real advertising you
^the more
need
get,''says a New
narrowed
*'So we
our
England clothing merchant.
to newspapers,
mailing lists,and
advertising down
centrated
conmoving picture slides. We found that the money
"I
"
"
in these
mediiuns
gave
far greater results. ''
ADVERTISING
Lower
when
resulted
costs
he
letters
for
63
Virginia jeweler
advertising appropriation in
West
a
concentrated
his
selected
lists. He
to
PAYS
THAT
his
has
and
customers
prospects graded by the kind and quality of goods they
interested in^ and hits them
hard at intervals with
are
letters callmg attention
well-done
form
to specific
articles
build
To
up
that
order
and
maintain
his lists he
clerks write customers
which
upon
In
sale.
on
unreasonably
purchases, inexpensive gifts are
at regular intervals.
names
cross-examined
he
pointed out
interesting facts about
to
prospect
list of them
a
for the
few
a
are
on
these
addresses.
being
to the
list of
out
each
of his
slips
they are
they make
the
cash
definite informati
and
customer
merchant
one
benefit
number
a
so
power,
he
salesmen.
intimate
of
made
gent
Intelli-
facts has led
in sales.
splendid increase
Here
sent
purchasing
of letters based
use
to
when
about
possesses
and
think
study of his mailing lists and
Close
a
'names
will not
customers
sales
uses
of the
facts
just
as
he
jotted
them
down:
"Every newly married couple surielyneeds from this
demand.
to their normal
store something in addition
with a 'best girl' is interested
man
"Every young
in jewelry include
in certain lines,which
diamond,
a
and probably a plain gold ring.
for
"Every piece of patterned stock is a foundation
more
sales in the
"Every
should
pattern.
same
of certain types of valuable possessions
them
repaired at regular intervals.
owner
have
has specialwants.
owner
"Every automobile
for varied
baby offers a chance
"Every
especiallyif its birthday is recorded.
equipment' of
"Every boy needs
grown-up
*
kinds
at
certain
of this.''
ages,
and
his
father
should
sales,
various
be
minded
re-
GETTING
54
These
fact
all refer
ideas
that
by
absolutely
that
3
they
In
handling
by
5-inch
line
they
cheap
the
for
town
particular
goods.
5:
Prospect
article.
6:
Prospect
is blank
who
who
take
in
recognize
it
rightly applied,
who
for
as
advertising
back
come
continually
to
take
for
the
most
are
every
money
method
down
of
sales.
that
It
the
policy
of
some
the
city.
advertising,
force
they
be
may
in
set
they
common
out
decide
to
studying
are
pays,
they
if
therefore
efforts
channel.
of
out
they spend
and
methods
before
particular
of
money
never
Instead
uses
want
out
merchants
advertising
effective.
any
these
ness.
busi-
use.
invested
"
sends
view
the
2b:
high-
trade-drawing
upon
money
granted
and
powerful
uses
who
will
hving
goods
uses
who
special
uses
his
competitors
different
a
look
their
how
productive
more
a
interest
with
for
who
business.
who
who
tomer
Cus-
:
who
divides
Prospect
a
7."
who
his
competitors
4:
1
high-grade
but
of
runs
:
Customer
goods
uses
Customer
:
uses
2a:
Customer
goods.
MerQhants
what
3, 3e, 4, ^6,
1a
divides
of
3a:
number
This
proves
card
Customer
who
but
Customer
medium-grade
itably
prof-
in
meanings
1b:
cheap
uses
goods,
the
merchant
the
2b,
goods.
Customer
goods
who
hues
matter
of
top
following
business.
his
3:
grade
:
but
and
other
no
1b, 2, 2a,
goods.
2
medium-grade
Customer
the
high-grade
goods.
divides
but
7:
1a,
medium-grade
uses
three
list, this
Along
"1,
uses
borrowed
valuable
are
cards.
who
in
customers'
signals have
These
been
business,
work.
to
his
reading:
jewelry
a
merchants
put
are
to
TRADE
already
have
they
used
line
MORE
made
hold,
use
to
to
prove
pour
VI
CHAPTER
PLANNING
A
RHODE
ISLAND
accepted
meeting
noticed
doned
glove
he
crowds
the
sales
by
arotmd
from
benefit
To
removed
his
from
away
wait
knickknack.
some
shoppers
increase
the
reflect
helping
This
on.
factors
and,
to
us
a
greater
consider
taking
them
store
up
in
with
get
purchase
to
the
of
display,
an
to
the
effort, saving
words,
out
theu*
"
several
purchases,
making
in
indicates,
to
eye
additional
perhaps
of
most
Hght, and
yet probably
consider
do
stores
these
"
five
extent.
layout
under
order, discuss
55
cannot
investigation
and
less
or
Now
profits substantially.
laying
tmconsciously,
although
furbelows.
temptmg
complicated
when
novelty
a
percentage
personahty,
time
place
suggestion
the
to
merchant
friends
for
interior
store
sotmds
merchants
most
frills and
suggesting
"
from
profiting
was
this
in its
put
novelty
store
economizing
space,
and
merchant,
factors
different
Let
his
plan
must
so
yearly
it
waiters''
sufficient
yield
small-store
The
"
subtle
A
waiting
than
there
continual,
a
passing
a
shoppers.
feminine
who
women
Gloves,
suflferingmore
was
these
with
stools
the
satisfy
to
counters
section
glove
piled
counter
the
waiting
the
to
of
aban*
entrance.
purchased
the
had
favor
main
an
shoppers,
women
in
is
store
customers
room
facing the
SALES
whose
for
his
glove department
The
whim.
that
seldom
are
GREATER
place
waiting
counter
realized,
FOR
merchant,
recently
regular
the
the
at
STORE
THE
these
under
five
factors,
each
one,
GETTING
66
which
methods
of the
section
One
of
a
whom
of
a
and
valuable
It costs
methods
for
sales from
each
less to sell to
much
sold before
have
prospect, retailers
new
and
years,
established
of
three, and
be
can
all
under
the
induced
from
that
a
average
stores
included
were
under
covering
a
period
of
ditions,
con-
minimum
average
of five
purchases,
men's
ftimishing
14
stores, 5 shoe stores,
stores, and
fumitmre
7
make
to
customer.
every
stores, 12 drug stores, 8 hardware
jewelry stores,
customer
a
agree.
Twenty-fomr dry goods stores,
6
customer,
possible varieties
fact
maximum
a
decreasing
it does
than
In 98 retail stores, a series of tests
of two
proved successful
Unes, in every
various
in
securing more
you
sale to
tried out
owners
most
by suggestion.
to
TRADE
country.
the
is that
costs
been
have
small-store
by
MORE
this test.
The
general
22
three
factors
special effort was
put in these stores
(1) store environment
larger purchases were:
prompt
exterior and interior;(2) suggestive arrangement
of customers.
stocks; and, (3) clerk-rotation
which
upon
"
test results in these
The
these
three
factors
in
98 stores
customer
intelligently,
every
purchases, and possibly five.
of all these
to leave
98
stores
will make
Today,
that
believe
to
at
the
allow
of
that when
indicate
developed
sellingare
to
and
utilized
least three
proprietors
a
customer
but one
purchase
having made
is to lose at least two
thirds,and possibly four fifths of
his buying possibilities.
"Whenever
a
can
package is taken from a shelf
or
in our
next
one
store," says a prosperous
grocer, "the
back of it is moved
This gives the shelves
to the front.
the appearance
of being filled all the time, and helps,
the impression that the
we
believe,to give customers
the store
always
store
"We
have
is
one
after
fullystocked.
counter
just received,
or
on
which
articles
we
we
want
dise
place merchanto
push hard.
GETTING
58
find
We
plan
the
article
Each
ticket
the
on
When
intended
to,
has
of
we
PLANS
goods
price ticket and
about
a
basis
the
all she
article.
originally
the articles
over
WORKING
ARE
TO
VOLUME
that
if
more
than
an
one
generally sell at least
as
eight or nine.
SALES
sell each
we
she had
of 15
average
customer
intention of
customers
a
of 300
working days a year,
to $1,125. And, as we
following the same
plan,
in sales amounts
increase
the
articles at
a
words
many
THE
serve
on
^figuring
"
m
12
or
We
as
estimated
25 cents^ worth
day
10
purchased
PRACTICAL
and
mcreasing our
of sales suggestion
know
she
just what
with
few
sometimes
have
"
not
a
INCREASE
buying
does
this counter.
THESE
"We
means
help
suggest that she look
we
and
item
a
marked
appears
displayed on
one
3s
customer
a
as
usually display
We
time.
TRADE
eflfective
who
customer
wants.
an
and
of turnover,
rate
to
this
MORE
salesmen, each
it means
a year.
a $6,000 increase over
his front
One
druggist has a particular spot near
their timeliness
door for timely displays,relying upon
For example, he
to make
big sales in a short time.
does
sells umbrellas, but
not
always have them
on
clouds
gather and the first raindrops
display. When
and
he hustles out his rack of imibrellas,
begin to fall,
employ
five
"
thus
catches
many
a
dollar
from
passers-by who
are
caught by the shower.
suggestionplan that sells a
druggist is his practice of making
lot of
One
store
a
lead
his counters
to
"
other
^and
articles.
goods for this
display in
diagram of one
plan ^isshown
every
A
illustratingthis
"
the
of
in
Figure 9.
Revolving displayfixtures help one line in an Indiana
furniture store to sell itself ^the goods displayed are
"
tools which
to
quicken
the merchant
his rate
puts in
of t\imover.
as
a
side line in order
BETTER
''When
MANAGEMENT
STORE
into
come
you
59
store," he
my
"you
says,
immediately find you have visited a store which does
The
not
display goods according to usual methods.
I have
difference begins at the windows.
arranged a
device which
call our
auto
we
display fixture,because
the mechanism
from
which
automobile.
an
is
It
a
bevel
six and
cylinder,about
a
taken
gear
high, and extends from the floor of the
each
to the ceiUng. It has six faces, and
on
displayed different articles,together with
half feet
one
window
face
are
prices and
COUGH
This
of
sales
the
short
a
description.
SAFETY
RAZORS
of assorted
goods
DROPS
Figure 9:
display
display
50%
druggist
one
in this
is
store
''Just outside
the
to
cylinderrevolves
A
prospect
fast
window
is
who
When
look
to
do
they
Every
expense.
to
little wheel
a
stop
customers
buy
and
in the
so,
more.
a
sign
window
entire
the
the six faces appear
in succession.
the cylinder revolve
slow or
as
gives the prospective buyer something
people
look
at
they
are
come
make
increasing
lead
increased
he likes.
as
"This
Most
can
and
to
the cigar counter
on
without
planned
tells prospects
the wheel.
turn
which
*
operates it is
the
like to work
the wheel.
articles and
see
like.
The
right into the
of those
number
5
articles
store
and
knives.'
He
can
to
stand
do.
and
for himself
are
say
He
exactly what
numbered, so he can
to
us:
'Give
probably
me
hands
one
the
6d
GETTING
change
exact
sale
is made
In other
part.
our
TRADE
the counter, if he
across
it^^aindthe
op
MORE
with
words, he sells
first head
head
store
his
second
our
three
door
attract
or
store
layout and
personality.
big deUvery baskets placed just inade
helping
Two
tested
are
effort
to himself/^
logicallyfall under
to build
to have
practically no
aUied to oiu:
Cloliiely
plans which
equipment
"
happens
In
the
of
attention
grocer's
one
baskets, wrapped
separately,he
goods with dirty or torn labels,
puts all his canned
wiU very
figuring that their spoiled appearance
Ukely
customers.
make
stickers.
them
prevent that possibiUtyhe puts this sign on
To
"Take
a
"chance"
his
up
for
chance
lobsters."
or
the
dealer
The
the
gave
layout
idea
You
15 cents.
saw
customer
with
draw
may
them:
peaches
it,however, that every
good value, thus linking
to
his basic
policy
store
"
^honest
for
prices. He offered four chances
this end.
When
10 for $1, to further
50 cents, and
in lots,as these did, it doesn't take long
goods move
goods
at
honest
shelves
clear the
to
positionof
The
of
and
get the
display is,of
the
into
money
the
course,
till.
the
big secret
here.
success
HERE
ARE
IDEAS
EVERY
SHOW
WHICH
YOU
INCH
SQUARE
OF
HOW
SPACE
MAKE
TO
PAY
Ingenuity is almost
space
dealer
always required to fit the limited
of small stores to their requirements. A Michigan
in paints,varnishes, painters'supplies,and wall
does
paper
and
20
if he
feet
stock
place
left where
in his
vast
saving of
a
store
here
space.
is,of
course,
proper,
customers
he
feet wide
bulky,
and
would
have
could
stand.
problem by making his store
A large basement
is included
he keeps his regular stocks, at
his space
room.
store, 12
narrow
the
sample
rental,and
a
a
it in
So he has solved
merely
His
long.
carried
scarcely any
in
business
HIGH GLASS
CABINET
PICTVX?ES^
FHAt1CS\
MOULDINGS
ANBFftAMES
stoppage:
TABLE
jlASS
snow
CASE
TABLE
SHELVES
AND
BBCTCASECAAOSANI
LARGE
MATERI
LEATHER
GOODS
[TMLE
MOUlDIl
NNGS NSX
"
^
frmibmwe
OISPIAV
RACK
FRAMES
^
SMAUCt9JS!^
^ONTOP
CABWET-l
PICTURES^
TABLE
BASE LAMP
tabl: 'MtP
SHa/ES
L
WINDOM(/
ENTRANCE
OiSPl/V
TAEXS
TA"LES
MATS
TWO
'
TAMJL
A
PMMMtt
40
:^
g
PAJAMAS
TABU:*^"
SMEL/ES
SHEIS/ES
MACK
AND
WMTE
KMIU
MOUN
Mt^lWPlNG
SHIRT
OISPW/
HOSE
MLE
"
AND
SHEI/ES
GI9VES
^
HOSS
SHIRTS
SHOW
CASE
lEirs
TIES
stiow
CASE
WHVc
TIES
COUARS
SIKM
CASE
HAT
iCiSES
tSHGU/j
SHOW
CASE
CASE
TABLE
TIC
lARGE
CMS
ENTRANCE
WINDOW
Figiire
WINDOW
Here
10:
back, in the
side walls
to
art
are
store, is
the arch
which
the
layouts of three
a
low
in the
decorative
railing which
There
center.
gives the interior
wide-awake
an
61
is
no
Half
stores.
out
runs
partition
"
just
appropriate personality.
way
from
a
the
touch
GETTING
62
From
the
wish.
samples,
salesman
The
his order
on
tube
The
to the
The
TRADE
choose
customers
writes
the
to the customer
originalis
basement
with
by
sent
stock
the
goods they
customer's
sales slip of the usual
a
duplicatecopy
cashier.
MORE
a
type and
of
a
gives a
to pay
request
means
and
name
the
pneumatic
room.
meanwhile, has paid his bill and
received his change; and chairs are provided so he will
not have to wait standing if there is any delay. A boy
customer,
calls out
up
the
the stock
from
their
names
of customers
and
room,
hands, reUeving the
attention
after
a
I set out
"When
that
their orders
packages into
delivers the
clerk
come
giving further
from
sale is made.
to create
says Leslie Wildey who
"I rearranged my
stock
I determined
as
if I
a
personalityfor
owns
general
a
completely
were
to
ever
as
an
my
store
store,*'
in
initial
Iowa,
move.
get into ihy adver*
look newsy
merchandise
first make
tising,I must
my
and interesting. Canned
placed
corn, for example, was
in a less conspicuous display space and canned
peaches,
which
I was
pushed to the front.
on
a little long/ were
Carrying this idea through the entire stock, a pleasing
and mighty profitablechange was
in the general
made
*
appearance
of my
store.
sight is not likely to be ^calledfor,
while merchandise
properly displayed will often remind
desire
of a need, or will perhaps create
customer
a
a
article which
he had not thought
to purchase some
one
As display space
of before coming to the store.
was
limited in our
store, I had several ordinary tables made.
tables were
of the aisles.
These
placed in the center
They are 10 feet long and 3 feet wide and have a broad
"Stock
of
out
shelf which
runs
imderneath.
canned
goods
and dried fruits;on
others, shoes, dress goods, linens,
article
is plainly
hardware.
notions, and
Every
with the sellingprice.'
marked
"On
some
of these
tables
I
'
display
FIRST
FU3DR
HeodrcDm
Interior
disptaij
^p
^S
disploij
entrance
small
view
This
II;
less thsn
800
described
mirror
Ja
a
12;
on
Here
page
floor
plan
feet of space
cuinc
suggests
space
Figure
display
J"'-l'-O'
Scale
Figure
for
entrant
bolconij6*0"
under
Street
headrcDm
PLAN
you
66.
that
see
It
a
small
a
of
Moak'a
in the
store
diagram
helped him
whole
of
store.
the
reduce
shoe
be
There
Success
store.
well
may
to
jewelry
a
are
in such
real advantage.
merchant's
window
bis light bill materially.
GETTING
64
Let
us
space
without
space
is not
of
and
space,
economizing
"
hardly
is under
usually
inch
square
every
is
There
head
third
our
merchant
making
TRADE
less than
60
is laid out.
the
diagonal facing
greatest possible
The
side wall
less than
feet
8
In addition
Mosk's
shop.
balcony floor,which
The
has
of the
of what
utiUzation
reaUty is
balcony.
is about
of
a
''panel"
One
wide
directly underneath
this idea
in the
from
have
it all in
we
effective
of
balcony
this
the
make
to
pull down
this
6 feet
long.
and
is the
ladder, which
low
The
first step.
the
safe
Mosk
got
berths
upper
prepare
have
a
succeeded
as
in
ours
been
a
says
a
a
arrange
stock
Parks, who
runs
a
place as
the
possible in
large extent.
which
to
perous
pros-
"Yet
state.
interior of
as
size
of moderate
room
southwestern
to make
a
in
to
nearly accomplished that
very
to
problem
a
view,"
store
policy has
have
Mosk
watching porters
varied
and
drug
as
the
Pullman.
generous
Our
required for
balcony floor,which in
stepladder leading to the
forms
''It is something
think
only five feet.
in the
finger can
inches
16
a
on
for storage.
is in
counterbalanced
a
is not
enables
there
space
of
in
work
made
is
B
wall
rear
been
room
is used
that
the
has
head
repair men
feature
unique
most
and
them
a
how
triangle,
a
repairmen
two
part of this balcony that
benches
A
for
Space
shows
giving the
display purposes.
long, and
long.
the salesmen,
to
regularly
street, thus
the
is 16 feet
A
told,
western
a
shape of
for window
room
all
feet of space
of Nat
Mosk, in
It is in thQ
of floor
feet
square
cubic
800
the
need
sterner
a
tiny jewelry store
city, yet three people besides himself are
employed in it. The diagram (Figure 11)
with
of
its share.
serve
than
more
in the
the store
on
the most
Making
losing business.
necessity in small stores alone, yet
a
small-store
to
on
go
MORE
our
sell.
I
end.
store
We
GETTING
66
worked
been
have
and
they
goods
for
out
well.
as
space
MORE
TRADE
saving minutes
stock
The
shelves
and
steps
built
are
"
fit
to
of varying
Compartments
of space
lengths and depths leave just the right amount
for a case of goods, or any size of carton
Waste
can.
or
is avoided.
of shelf room
Below, the bins for bulk
and
goods are all of heavy metal, with roxmd comers
Uds.
Across
the room
the cold
smooth, tight-fitting
for meats
chambel"
are
arranged for the greatest convenience
the
carry.
in storage and
use.
simple layout change which saved salesmen's steps
reduced
salary
materially an eastern merchant's
A
also
item.
He says
expense
"I found
that in the
was
arranged that
so
the end
of
side
other
I
had
man
series of
mobiUty
to
to
aisles among
of the clerks, and
my
stock
around
get
the
to
tables,
the
cut
are
the
away
go
clothingtables
'
aisles
These
payroll.
^
clothing department
a
them.
of
the
increased
reduced
the
'
ing
strategicrailways dur-
rush."
a
last
Our
fightbills.
of the
one
long
a
:
subject has
Just how
do
to
to trim
with
most
merchants
this item
perplexing problems
most
down
reducing
is perhaps
for
plans
solve.
do not
merchants
Many
attempt to
rather than
save
on
light they prefer using too much
and there is fittle doubt
that brightlyUghted
too little,
interiors,windows, and store fronts are an aid to sales.
have
to
"
Yet
merchant
no
methods
of
will shut
his eyes knd ears
to tested
bills for light without
ing
impair-
cutting down
the store's illumination.
As
a
considerable
his store
seemed
merchant
cut
to
a
wall
be
going
window
fight but improved the
diagram (page 63) shows
It
window
would
appear
beside
the
space
at
door
to
the
over
waste,
in it and
appearance
not
a
back
door
Nebraska
shoe
only saved
of his store.
of
on
The
wall, before and after.
first glance that the original
the
rear
would
let in sufficient
fight,
but
the
for
storing
but
of
top
window.
new
As
below
the
in
shed,
the
showing
space
To
to
you
the
Unes
have
whether
salaries,
mind
upon
interior
that
the
or
still
has
plenty
in
And
a
your
store
interior
attractive
mind.
you
in
two
or
head
room
without
the
or
should
you
the
merchants
that
Ught
gest
sug-
matter
no
and
heat,
item,
a
costs
analysis
store,
say
in
of
list
yoiu*
your
exerts
boost
step
light
expense
When
help
of
chapter
saving
particular
a
'
earefully,
other
his
through
[the [shed
remember,
any
customer's
of
the
to
12).
this
question
most
is
admit
item
inside
the
the
light
of
was
lowered
roof
shed
features
u^d
shed
This
of
panes
shed
dark
the
suggested
wish
you
its
what
study
studied
had
(Figure
store
improvements.
who
ends.
plenty
glass
matter
no
up,
small
a
of
ugly
the
the
of
sum
prompts
along
of
back
he
frosted
and
in
floor
the
level,
store
any
let
which
67
and
merchant
the
door
the
odds
and
waste
necessary,
into
opened
door
rear
MANAGEMENT
STORE
BETTER
strong
make
volume
keep
m
influence
your
of
store
sales.
CHAPTER
SERVICE
features
of
In
goods
another
it is
policy;
of store
retailer
what
the
so
they
rest,
the
goods,
coincides
broad
as
are
on.
service
with
whole
the
as
store
problem
do
about
well
as
"Service
helping
them.
than
merchandise
what
the
what
worth,
a
You
customer
your
this
customer
price
is for
when
time
well
body
Any-
do
them
to
to
as
what
thrift
than
know
merely
about
ought
You
they
goods
means
more
ought
the
It
that.
do.
are,
your
as
does
rather
buy
expected
goods really
retail
purchases
activities.
than
customers
your
style
fair
are
them
else.
to
customers
yom*
than
giving
their
surface
function
bigger
a
poUtely,
nearly everybody
anybody
as
is
selling to
and
them,
eastern
ground
more
delivering
merely
are
lot
a
for, and
ask
wide-awake
a
and
quickly
Those
can
said
clerks, "covers
them
on
they
At
and
store
practically
his
promptly.
to
privilege,
customers,"
to
waiting
what
from
delivery, charging
"
certain
distinguish
management.
"Serving
know
To
retailing
sense
CUSTOMERS
service?
"service"
called
returned
HOLDS
THAT
is retail
WHAT
VII
actually
are
to
"
^a
to
have,
and
fair
price
yourself."
and
conservation
oiu*
are
,
retailers
watchwords,
to
far
the
have
their
as
service
possible
aid
been
and
generally
cooperation
able
but
departments,
all service
to
release
are
which
their
men
and
68
greatly
eliminating
are
is not
of
adding
not
essential.
customers,
money
from
as
With
retailers
purely
HOLDING
^Bervicework.
The
sajrSy ^^It has
CUSTOMERS
just been
with
comply
the
economies
in
each
store
shall
each
route, eliminate
the
accept
of New
York
request
of
the
government
The
request
only
for
is that
one
of merchandise
that
which
has
than
possessionmore
cities in
that practically
City have decided
delivery a day over
and
refuse to
special deliveries^
make
return
instance,
conservation
the
to
Board
delivery service.
in the customers'
"Other
reported
Industries
all of the retail stores
to
Industries Board, for
Wax
division of the War
69
remained
three
merchants
days.
have
recently
St. Paul, Minneapolis,
adopted the conservation
are
program
Detroit,Denver, Boston, Memphis, New Orleans,
Montgomery, Baltimore, Newark, Los Angeles, PortThese
in addition
to those
land, and Oakland.
are
that have previously complied with the request made
in time
of war
for the general
by the government
of the country.
welfare
"The
to avoid
have
replacing employees
essential
entered
cities have
30
of this program
adoption
been
to
the saving in automobile
is
according
these
to
the
the
stores
of
return
has
days
an
M
average
two.
eastern
one
has
have
been
rtate
been
called
small
30
the
reduced
away
of
been
made
by
Linuting
than
more
three
86% in
greater forethought in
number
from
of
116
for other
day
a
that
in
stores
of
has
55,
the
formerly
as
quired
re-
in
towns
delivery
to
the
enabled
several
men
their
ployed
emmen
service.
experience in these cities shows
hardship to the public through these
"The
no
In
has
Board.
reduction
or
less of
85%
trucks
not
returned,because of
selectingand ordering of goods.
"In smaller stores one
delivery
to do the work
delivery map
one
amoimt
drafted
reports
Industries
War
merchandise
made
the
to
possible
large stores
with
operate
it
been
The
force,and
This
40%.
a
made
have
who
work.
war
able
has
that
there
is
restrictions.''
'
MORE
GETTING
70
TRADE
simplifythe discussion of service policiesthat are
helping to hold trade for stores throughout the countryit may
be well to consider
these poUcies xmder
these
To
sound
(1) putting service details on
a
basis ; and, (2) broad service poUcies that build trade.
Taking up the first of these heads, never
losinga sale
heads:
two
because
is "out
he
suburban
to any
type from
which
my
clerks
goods.
The
trip
each
on
which
of customers
other
is taken
by
or
one
All
makes.
anyone
could
seems
is the usual
by myself
that
we
plan
a
says:
of them
nearby big-city wholesalers
the
of my
*
wants'
fillat the time
not
listed in it.
are
"For
a
I order
He
One
books.
article is
his service
line of business.
want
two
certain
a
on
druggist'spolicy, and
adaptable
"I keep
to
of stock''
certain
of
brand
expressing
my
'I'm
sorry,
have
it delivered
but
Count
though.
"Although
the
MacArthur,
instance, Mrs.
on
soap
regret and
I do
to
not
your
do
so
it.
Instead
that, I say,
brand.
that
have
BT;itI'll
house
this very
afternoon,
go
yields no
and
trip downtown
my
have
lettingit
transaction
She
deliver it to the customer.
and
not
calls for
at
me.'
on
the
I do
of soap.
perhaps,
of other
hundreds
profit,I
have
obtain
my
boy
appreciates this service,
who
customers,
give me
all their trade."
saying, "Sorry, but we're all out of that," or,
don't carry that," also is a fixed rule in the store
"We
dealer.
hardware
of Fred
Ruhling, a middle-western
Never
It makes
no
difference
how
far from
article may
be, Ruhling "has"
If a housewife
orders a scrub
sells her
soap
to
go
with
his line the needed
everything asked
for.
pail and brush, Ruhling
of soap to
them, buys a case
order,and disposes oiFthe balance of the case
This policy frequently calls for rapid sales
he can.
as
work, but Ruhling reaUzes that a service slipwould be
costly,and insists upon every helper in his store doing
cover
her
HOLDING
the
exactly
This
same.
confidence
and
says,
CUSTOMERS
"hurry desk"
might otherwise be
A
builds
policy
is the
eastern
an
of his business.
great many
a
lost to
confidence, he
stone
comer
secures
71
orders
that
A
desk
grocery.
and write
to stand
just the right height for customers
comfortably is provided. A pad of paper is fastened
firmly to the desk, and at the top of each sheet is
printed:
Name
Address
(chargeor
Send
c.
printed card
A
hurry, write
a
d.)
o.
box."
the desk
over
out
order
your
pencil attached
A
"If you are in
drop it in this
reads:
and
with
cord
stout
a
dangles
at hand.
near
customers,"
"Most
their
select
inclined
to
they have
wants
and
receive
not
get around
baskets.
When
a
been
discriminated
the very
writes
the
on
"
best
goods on hand.
this diflSiculty
by using numbered
tells
customer
vegetables he takes
some
against
order
blank
a
one
the
salesman
that
of these
basket
basket.
in the
indicated
Each
item
chosen
*
circle in the
she
baskets
nmnber
the salesman
picks
L24, for example. Then
direction and
vegetables under the customer's
them
to
times
they are
vegetables. Many
feel,when orders are picked out by the store
they did
"We
"Uke
grocer,
own
people, that
that
western
one
says
out
"
the
places
in this way
is
column
the
on
quantity'
order slip. If a customer
takes the vegetables with her
is placed in this column.
This plan generally
a cross
by
is a clincher
Just how
have
a
and
a
establishes
store
considerable
the customer's
handles
effect
confidence."
complaints,may,
one
way
or
the
of course,
other on
the
customer
buyers place in it. The doctrine that "the
is always right" has proved a business-getter
for other
retailers
confidence
the
phrase, and
a
beside
the
feeling on
famous
the
one
who
part of any
coined
retailer
GETTING
72
that
his
has,
money
in
bad
He
account.
employee
instructions
The
but
there
his
a
miany
be
no
western
a
says
is
often
in his
reason
turned
good
to
plan, therefore,which
into
complaining customer
a
the
sticker
that
on
hand, put
occur,
sticker
notifies
package
a
on
in the establishment
instructions
has
he
as
for his store.
rooter
red
to
devised
invariablyturns
small
A
soon
repute.
has
enthusiastic
an
as
the other
on
bound
Complaints are
department-store owner,
opinion why they cannot
almost
TRADE
responsibilityceases
customer's
business
MORE
he must
that
called
be
or
every
follow
to
the
accoimt.
read:
"This
parcel must go without stopping. Pass it on
to delivery department
instantly. Floor managers,
selves
inspectors,and credit department must interest themin this inatance."
THESE
MAY
METHODS
YOUR
The
sticker service
a
that
further
OF
it usuisdly
create
when
resentment
other item of service expense,
much
thought, probably, as has
"To
SOME
gets results in the store, but what
No
so
SOLVE
point,the instructions on
good impression on the customer
delivered
are
YOU
PROBLEMS
to the
18 more
such
HELP
DELIVERY
the
goods
is almost
however, has
delivery.
possible
im-
caused
delivery service,''says one
chant,
merfor each delivery man
in
"we
set aside $1 a week
addition
to his regular salary. If no
just errors
or
improve
complaints
among
the
come
men,
our
in,
but
the
if
one
money
man
of all.
is divided
makes
a
equally
mistake
it
words, a man
all the
gets $1 a week in addition to his pay only when
their duties correctlyand vnthout
execute
deliverymen
tendent.
complaint. Demerit
penaltiesare left to the superinOne
week
intervenes
between
the earning
affects the bonus
money
In other
GETTING
74
MORE
TRADE
and its payment,
to leave time for
prize money
in.
late complaints to come
"Our
One of the
complaints have decreased
65%.
and
watch
plan'sbest features is that the deliverymen
They know
they will not get all of
help each other.
of this
the
mistakes
$1 if any
be cut down
may
to 75 c6nts
Charging
or
seriousness
and
the mmiber
made.
are
Their
50
money
cents, depending upon
of the errors.''
for deliveries
extra
prize
is
method
a
which
is
With
growing in popularity, investigationindicates.
going steadily up, customers
living expenses
display
all they can
in buying
a
growing willingness to save
goods.
This
plan
deliveries.
down
cuts
charge 10 cents for delivering merchandise
which
weighs 60 poimds or less,to any point within a
certain zone," says a dry goods merchant.
"It makes
difference how
makes
purchases the customer
no
many
have
her packages delivered
for 10 cents if
she can
than
60 pounds.
they do not weigh more
"For
packages which weigh from 60 to 120 poimds
also
We
charge 20 cents within this same
we
zone.
for packages of 60 pounds
or
charge 20 cents
less,
"We
"
delivered
outside
"Our
customers
because
store
their
the
save
of
Ohio
service
rolls to
found
policy
to
10
on
his
plan
the
ciple
prin-
packages
carry
Those
nominal
fee
from
have
who
for
deUvery
the
less than
cents, he
this
service showed
of all his deliveries
80%
over
almost
costs
a
the
service."
that
grocer
who
pay
to
feel that
delivery charge.
investigationof
an
learned, had
be
of them
many
purchases amounting
deUvery
his
rapidly taking
delivered
of the
convenience
an
zone.
is right. Those
purchases
When
set
are
apparently
involved
our
of the
point.
$1, and
that
decided
to
One
woman,
were
each
change
he
of
standing order for 5 cents' worth
be delivered
day, and, as far as could
every
a
out, that
was
all she
ever
purchased.
"Charging
HOLDING
CUSTOMERS
10 cents
for all deliveries
the
S2 seemed
decided
"We
grocer.
solution
only
75
to this
try the
to
orders
on
under
the
problem/' says
plan and made
the
following announcement:
NOTICE
In view
of the
high
CUSTOMERS
TO
is
of foodstuffs,which
cost
a
serious
question
in
in every
effort to keep the pricesdown
to the
household, and
an
still
maintain
in
and
high quality
our
possiblelevel,
pure
have
to
lessen
cost
and meat
the
of
market, we
our
planned
lowest
food
deliveryin this section.
Beginning Saturday all orders for $2 and over will be delivered
usual, while a nominal
as
charge will be made for the delivery of
all purchases under this amount.
You
how, by this plan,
can
see
figures,and stilloffer
we
keep our pricesdown to rock-bottom
can
the highest quality merchandise.
"The
first there
but
low
result
was
found
that
that
carefully watched.
was
complaints
were
priceswere
our
now
of sales
volimie
and
and
ordering their groceries
are
MAEiE
TO
the
"During
placed upon
the
last
little later.
a
in amounts
PLANS
THESE
THE
SAY
before
month
daily
at
We
first
$2.
over
FT
PAID
CHANGE
restrictions
deliveryof orders,the
delivered
of orders
USE
WHO
RETAILERS
THS
the
quick, and
complained
who
customers
many
service
sales increased
our
At
fallingoff in sales,
a
our
were
number
average
In
614.
was
first month
the
had
adopted the new
policy,the daily average
of packages was
reduced
number
to 138, or a reduction
of approximately 73%.
Three
delivery equipments
after
were
to
we
taken
the
change
delivered
of
out
was
service
the
\mder
by
average
$1.
After
sale delivered
effect the average
sales have
'Take
with'
$2.
Although
few
this radical
customers,
we
change
have
this
reduction.
of
amount
the
new
increased
increased
each
plan
increased
in
'
to
more
about
policy has
sales."
went
cost
Prior
order
into
than
60%.
us
a
GETTING
76
Variations
MORE
TRADE
of this
and they
plan are not uncommon;
are
nearly always successful,investigation rev^ds.
adds
One
1% of each charge order to cover
grocer
bookkeeping cost and charges 5 cents for each delivery,
regardless of size. As his prices are
considerably
reduced
under
the new
plan the opportimity is given
this
Under
to customers
to save
appreciable amounts.
of deliveries
plan sales have
increased, and the niunber
has been greatly reduced, as has the volimie of
credit
business.
notified
One
of his
customers
ON
There
dimes
are
and
so
in which
to every
money)
Also
as
we
well
as
food for
advice
as
that
must
we
conserve
individuals.
our
soldiers and
of the National
possibleevery
penny
save
as
as
which
all we
save
places
to
are
to
are
"
can.
C. A., camp
M.
Businesses
of Defense
pennies,
our
to
put
our
possiblycan.
we
^ifwe
"
and if we
allies,
of expense
to
us
better
no
ways.
grocers
Council
of
for the Y.
much
in other
We
he
:
spend
to
one
Liberty bonds, the Red Cross, funds
recreation,and so on (and there are
demand
which
MONEY
causes
dollars,that it is up
with
pricesfollows
new
SAVING
good
many
circulars
of the
carry
^must
is not
must
help
out
save,
conserve
the sound
eliminate
as
far
absolutely necessary.
help as best we can in carrying out these various conservation
policieswe have decided on a new
plan of doing business which
feel sure
will appeal to your good judgment. There will be no
we
change in the high class of food products which has helped us build
our
reputation and our business;and there will be no change in our
determination
the best service it is possible
to try alwa3n3to give you
for a grocery
store to give. Tlie change will be a lowering of our
prices a blanket reduction of from 10% to 20% of our present
prices and a cuttingdown of oiur cost of doing business which will
make
lower pricespossible.
our
To
"
"
cash-and-carry prices will
Beginning Monday, January 7, new
gointoeffect. Every item in oiur stock will be marked witii a plainly
printed price card. These prices will apply when goods are paid
for and
Our
will be
carried away.
deliveryand credit systems will be continued, but charges
made
charged for
for these
every
services.
delivery,no
A
matter
flat rate
what
of 5 cents
the amoimt.
will be
HOLDING
goods purchased
For
for ^ach dollar
Here
credit
on
fraction of
or
dollar
a
possiblewith this
scale of
new
77
charge will be made
a
show
ticket.
savings will be
what
prices:
OM
Old
4 bars soap
Cash
$0.16
35
.32
10
.08
40
.35
.32
.28
$1.37
$1.19
if charged
2 cents
Carry
and
$0.20
pound cofifee
1 pound rice
5 pounds sugar
1 pound sirloin steak
Total
Prices
New
rK.;^/^
Prices
1
Add
of 1 cent
each individual
on
sample orders which
some
are
CUSTOMERS
.02
$1.21
Cash-and-carry prices
Add 5 cents if paid for but delivered
$1.19
.05
$1.24
Cash-and-carry prices
$1.19
charged
and
Add
2 cents
if
Add
6 cents
if delivered.
.02
.05
$1.26
will
You
see
these
from
pricesthat
can
you
save
have
though you
delivered. We believe enough of our customers
of the extra-savings opportunity to reduce
of
our
expenses
that
so
profitswill be protected.
our
will be
We
before
and
as
you
have
glad to hear
always anxious
are
we
considered
Another
reduced
is
its
mark
has
way
been
Not
on
to
wrong.
in
respectfully,
which
FARRELL
AND
deUvery
expense
by cooperative delivery
"
in several
success
GREEN
has
substantial
cities and
been
savings
where
towns
it
tried.
long
grocery
merchant's
this plan at any time,
make
right that which
comments
your
Yours
two
goods charged and
will take advantage
prices, even
new
oui
because
money
ago
the
stores
ov^mers
in
a
of three
Wisconsin
delivery association
and
general stores
town
agreed
formed
as
and
a
follows:
GETTING
78
That
1.
two
in the
stores
driver
3.
That
safe
4.
That
under
each
of
and
be
given
service
deliveries
two
2
at
one
7.
store
one
and
That
That
for the
should
good
prompt
be shown
should
partiality
no
6.
be bonded
should
circumstances
no
That
that
deliveries of the five
of
and
five stores.
of the
be made,
any
member.
other
be guaranteed
any
day should
a
$1,000.
guaranteed.
names
any
should
to
be
the
to
of
sum
delivery of all packages should
customers
5.
the
association.
That
the
TRADE
handle
should
men
2.
of
MORE
at 9
one
a.
m.
m.
p.
should
receive S2,500 a year
for
delivery men
to take
performing this delivery service, they, of course,
care
of their own
this sum
to be proportioned according
expenses;
size of each
the
to
two
In
order
to
be
on
the
to
the
as
deUvery system,
entirely satisfied.
are
PERHAPS
THESE
m"AS
ON
FOR
morning
that
So
orders
no
the
for the
promptly
in loading the
trucks
stores
packages
BUILD
WILL
TRADE
stop
in
suffer
may
the
trucks.
morning the dehveries are started from
the next morning from
another, and so on.
be
dehvery
arguing
over
this kind
the
jump
to
may
the
arises
a
instructed
been
and
customers,
trouble
any
packages
delivered
the
to
courteous
have
men
be
wrong
that
missing,
customer.
special dehvery
to correct
the
error.
to
come
may
or
its
filling
taken
are
instance,
For
one
The
the stores.
at
first dehvery, turns
on
customers
TOO
STORE.
dehvery
little objection
today all
SERVICE
YOUR
of the
one
but
was
and
new
Each
change,
new
proposition. There
new
the
dehvery plan was made in the
in advance, so that there
several weeks
littletrouble as possible in getting started
papers
would
for
customers
prepare
of the
announcement
local
store.
store,
one
always
refrain
up.
from
times
Some-
article may
trouble
When
an
boy
is sent
to
out
be
of
on
HOLDING
to facilitate deliveries
In order
four
has
in
deliveries,and
to the deUvery
the
While
and
men
of the five stores
out
are
time
for
agreed
the
books
other
given
are
with
trucks
are
on
used
for afternoon
the
in the
delivery,
start.
prompt
a
side
east
the orders
up
with
all of the orders
enter
the
books
These
they check
deliveries,two
to
for
one
books.
books
these
morning
in
mornings
for the west.
one
the entries in the
stores
each
all of the
delivery books in which
for each day are
entered.
Two
books
filled out
are
79
separate
orders
grocery
CUSTOMEBS
exactly what proportion
each store should pay of the $2,500 charge for handling
This
the deliveries.
proved satisfactory.
agreement
of the cost
This
careful
is
primary apportionment
It
was
considered
of the
detail
what
he
all
ends
saving, which
it
runs
on
The
second
service
is
must
an
average
methods
or
to
for each
the
success
bookkeeping
or
any
merchant
plan. Each
for his deUvery service and
The
figuring on expense.
over
$2,000 in the aggr^ate,
individual
of about
concern,
$400
poUcies
"
inasmuch
as
for each.
which
subject under
and
of
the
pay
checking
features
intricate
no
about
amounts
while
is worth
chief
the
There
bothersome
that
the outset
of
one
plan.
knows
at
we
^broad
have
classified
poUcies that
build
retailers agree
intangible, yet many
that it is of the utmost
importance.
to be prompt
and never
Our service not only means
to refuse any
order," says a wide-awake
florist,"but
the filling
of the orders,
it also means
to be careful with
in selecting the stock, in packing it, and in protecting
in the customer's
hands.
after they are
the flowers
We
do that only by educating our
customers
in the
can
best ways
^how to take care
to treat plants or flowers
of them
properly so as to get the longest possiblelife
of them.
out
Along this Une we begrudge no expense
trade
"
is
more
*'
"
or
time
to
our
customers."
GETTING
80
in
Merchants
growing
the
"Our
all the
trade
successful
by
locaUty
adapted
' '
a
We
local
the
the
enough
to
clip
25
a
and
goods
believe
policy
my
sale
in
therefore,
and
store
that
in
and
in
seed.
increased
to
study
crops
best
a
we
up
'
the
I
who
had
a
a
would
as
you
try
to
keep
the
the
long
run
attracts
wins
out
for
the
money
dealer.
done
operation
goods
same
it is better
and
merchant."
spite of
house."
be
it in
and
in
In
packed
clothing
tisement,
adver-
our
spends
do
substantially
interested
with
ticket.
of
one
tickets,
were
free
customer
smns
in
issued
appeared
a
secured
We
views
another,
as
thus
our
productive
the
We
all
To
night,
find
You
one
in
them
houses.
gave
service,"
business,
store.
prietor
pro-
however,
have
their
stereopticon
things
thoroughly
in
store
conspicuously
We
raise
rural
the
to
farmers
the
certain
a
which
we
two
are
of
to
for
coupon
rainy, disagreeable
"There
"
and
cents.
however,
a
of
with
us
have,
encourage
presented
at
"We
increasing
moving-picture
selling them
look
most
them.
We
agency
who
trade
the
land.
their
have
lecturer
by
methods
to
the
trade
with
farm.
farming
of
the
power
the
hold
general
merchants.
cooperating
on
like
furnish
to
naturally
we
one
secure
buying
power
so
as
crossroads
to
enough
southwestern
a
ranks
able
their
need,
says
who
service
and
draw
to
large
not
we
districts,"
that
are
sort.
is
town
been
fails
businesses
whose
testimony
never
desirable
most
new
offer
describes
florist
lines
several
steadily
TRADE
MORE
for
"I
by'
in
for
service,
holds
tomers,
cus-
CHAPTER
IS
bill
rent
my
expenses,
in
offered
thoughtful
retailer's
vital
question,
lead
him
of
The
in
and
In
Is
of
trade
to
which
in
this
scarcely
a
tages
disadvan-
or
evident
all
locations
upward
has
cities in the
United
give
is
-1900
manifested
man
every
should
movement
since
tendency
is
commimi-
business
Canada
it
when
growing
for
conditions
logical when
stocks
Would
the
States.
who
pays
rent
item
Investigation
into
of Bmall-store
nimiber
tested
plans
and
bill, which
tEeSBTWo
and,
a
worthy
are
principal
(2) where
the
Ought
I to
to
offset
of careful
merchante
be
to
the
83
less
bring
higher
poUcies
rental?
of
a
large
has
brought
to
Ught
the
most"""t^f
the
(1) making
I locate?
pay
of
study.
conveniently
heads:
shall
get
class
location
higher-priced
rent-saving
methods
may
I consider
appeal?
in sales
increase
problems
These
;
is
decided
quarters
my
more?
or
sufficient
pay
advantages
rentals
of
in most
such
location
my
i^t
the
is
consideration.
proper
rent
of it will undoubtedly
and
14
business
for
rent
the
study
rentals
strongly
as
light
the
Prom
close
The
office
Figiu-e
itself just
tjie
there
practically
scale
general
in
shown
a
in
that
store
and
view,
location
of
rapidly advancing.
is
location?
my
other
my
of
point
importance
the
to
location.
his
remembered
ties
STORE
of turnover,
rate
by
and
YOUR
proportion
my
analyze
to
FOR
proper
profits,
my
advantages
more
LOCATION
RIGHT
THE
PICKING
Vra
discussed
your
imdef
location
REDUCING
84
OVERHEAD
First, then, let
look
EXPENSE
into
rent-reducing plans
and policiesused by merchants
who
recognize certain
of their locations,but who
drawbacks
prefer to stay
where
they are.
The
fact that his store is scarcelybigger than
very
hall bedroom
has compelled one
a
Michigan jeweler
to pay
from its
specialattention to getting the utmost
chose the store he occupies because
He
when
space.
he rented it he could not afford a more
expensive one.
Now
he does not
want
more
a
pretentious location
though he
Figure
studies
can
14:
How
over
13
us
well afford
rents
years,
are
of the
going
same
population
one.
up
in this
is shown
properties
of 10,000
or
in
48
chart, based
localities
having
on
a
more.
considering himself hopelessly out of the
and
running against competitors with more
money
how he might make
better locations,he saw
advertising
He had one
distinct
capitalof his side-street location.
advantage in the small rent he paid S15 a month;
his expenses
this made
But, in order
imusually low.
Instead
of
"
CHOOSING
realize
to
to convince
and
today
he
run
he
expenses
reallylow,
give exceptionally
in
have
always good,
unusual.
his
advertising that
for
month
a
he would
were
his store
been
have
were
also that
saw
SI 50
over
85
that he would
saw
could
he
supplied by
convincing has
sales
he
realize that his values
them
the service
So
advantage,
in consequence
prices. And
favorable
to make
LOCATION
prospects that his
that
and
this
on
THE
each
square
foot of floor space, and his rent item is but 0. 12%.
Nat
Mosk, of the Pacific Coast, also a jeweler, is
another
He
specialistin getting
has
store
a
but
and
each
he pays
ten
stillmakes
money.
inch
square
diagram of his
of small
direct
goods
which
three
on
is in the
of
center
district and
close
the
on
near
as
that
of
the
enough
to
of
the
several
miles.
inmiediate
of the
was
miles
people
his store
east
of
in which
comer
there,
ball
base-
fountain
streets
could
verge.
con-
get his
business
downtown
department
increased
pretty well
to be in
stores
them, a grocer
his "percentage of
in
eastern
an
rent
to sales"
his trade
in
control
radius
of his
beyond him
to do their shopping.
is a residence
suburb, most
me
formerly bought downtown,'*
neighborhood,
going by
"Four
He
He
n^ike.
competition with
and
his
for their casual
possiblebuyers
fringe
the
A
closer he
sales he could
them.
mechanical
three
where
bring
meet
daily papers.
space
stance
circum-
to
streets
the
are
many
city of 300,000 solved
problem by telephone
were
wanted
Four
comers
of the
goods to thousands
inspection, the more
Situated
stands.
realized
Mosk
11.
people who could buy
200,000 people daily pass
of the
scoreboards
a
the
his store
in
unfavorable
he
other,
making
good profit. A
Figure
the
because
the
as
believer
a
space.
er's;
Michigan jewel-
rent
show
in
is shown
space,
to
that
estimates
and
also is
He
of
out
the
much
as
deliberately chose
Mosk
near
times
of floor space
store
most
than
smaller
even
the
but residents
out
REDUCING
86
he says
in
describing how
from
grocerieswas
'*My
orders
want
for the
from
suggesting this
HERE
that
WAYS
ARE
first
the
totaling about
about
have
been
60
from
then
sales
customers
new
on
orders,
the
following Friday
Often, as
location
towns
grow,
shoe
western
his
the-way
comer.
to
with
two
is
of
a
found
but
a
smaller
able to rent
comer
and
way
location
took
his landlord
a
choice
store, facing
comer
of the
out
and
change,
dealer.
ended
stores, giving the
advantages
of the
exactly what
happened
Expansion of the city
move,
occupied. He
before long was
dicker
becomes
one-time
decided
side of the
became
have
trading centers
That
poor.
changed
He
would
them
charge
except for the installation
desirable
once
commercially
one
have
now
plan."
service
new
customers
of
any
of the store
customers
the
OTHERS
HELFED
week.
each
accoimtair Hardly
and
dumer.
LOCATION
The
of these
althougl^tiany
\
duty
not
only
well, by
as
night they took
and
they
ing.
promise delivery before 9 o'clock Satiuxlaymornmen.
The telephone orders are put up by the two salesMost
of the goods bought are
sent out C. O. D.,
"I
to
buy
on
They
customers
HAVE
THEIR
doubled,
are
part of the Sunday
WHICH
Friday
added
to
a
as
$250.
salesmen
o'clock.
9
they sell
or
whatever
Two
7 until
FIND
were
to
order
can
end.
week
store
"On
the easiest way
by telephone.
housewives
orders, but
take
tise
to adver-
began
now
front
the
"I
is open
Friday evening for telephone
in
With
the store's daily advertisement
store
only.
of them,
at
that
store
my
EXPENSE
he did it.
suburbanites
these
to
OVERHEAD
into
out-of"
an
every
available
store
next
a
ner
cor-
corner,
the space on the other
the other street.
A
on
by
shoe
the
owner
dealer
location,more
connecting
most
space,
of
and
the
a
"-""""
"
r
r
CHOOSING
lower
owner
rental
of the
rented
LOCATION:
foot
square
store.
comer
than
per
A furniture
way,
THE
a
dealer in another
new
when
he could
front
replaced the ordmary
signed the lease only on
chant
make
get
a
alterations
1
""
,
paid by
that
show
wmdow"
the
and
"
an
mer-
attractive
line.
to the curb
it
the
lord
that the land-
condition
suit him
extends almost
now
canopy
this store now
is to remember
-;
"
r'
"
comer
to
:"r
city,caught in the same
middle of a good block
location.
A plateglass
store in the
not
o
To
pass
distinctly.
Groetrits
Sboas
H
L0W
Figure 15:
grocery
and
This
chart
shoe
stores
the
shows
"
H
Hk|h
ratio
Common
between
including low, medium
It is well
worth
your
close
or
Typical
rent
and
and
high
net
rent
sales
in
stores.
study.
Moving may
easilybring about a loss of business,
though only temporary, unless active measures
even
used to accustom
to trading at
steady customers
are
location.
the new
A dry goods merchant
recognized
the chance of a possiblefaUing off in sales,and resorted
reduction
in
to the simple expedient of a blanket
store.
pricesas soon as he opened his new
He made
capital of moving by displaying this large
for the shght
customers
placard: "To
our
repay
inconvenience
of looking us up at our
location,
new
of 10%
will make
all
a
on
we
sweeping reduction
for the first 15 days in our new
merchandise
quarters."
Below
the sign he displayed a chart showing a dotted
line from
his old to his
new
location.
"
*
""
"
"
"
"
"
"
"
".i2-r^
"
.
.
.
"
"
"
"
,' "
'i
*
::
"""
"
"
"
"
"
"
..: /.
..
WHICH FLOOR IS WORTH
Stonlto.1
Stonlto.2
Stonlto.1
Stirtlto.4
Stirtlto.9
StMilto.6
StMiNa.
Stonlio.8
Figure
seven
each
16:
This
to the
upper
7
Storilto.9
chart
shows
floors,apportion their
store
MOSn
main
how
rent.
floor, and
floors and
10
how
88
run
"rom
two
to
large a share is charged in
relativelylow the charges are for
Note
basements
stores, which
how
in most
instances.
90
REDUCING
fixtures
and
OVERHEAD
filled the
which
EXPENSE
shelves
with
a
line of women's
days they could sell at $2.50 a
pair ^not job lots,or samples, but stock that readily
retailed in first-floor stores
at prices 20%
higher.
did not
These
have
tising,
advermen
capital for much
but their windows
faced the wide
hallway in
front of the elevators, so many
office employees and
could
visitors
their
see
came
displays. Business
told
their
slowly at first, but satisfied customers
friends,and sales soon
began to multiply.
rent and
use
Today these men
4,036 square feet on
shoes
in those
"
the
same
first floor
the
on
floor.
upper
also rent
They
with
feet
20
791
frontage.
$1.47
a
square
foot
for
the
upper
$4.55
a
square
foot
for
the
first floor
percentage
of increase
of rate
has been
upstairsstore
floor
double
feet
They
pay
space
and
The
space.
of annual
than
more
square
sales in the
the percentage
of rental increase
for floor space.
Here was
an
example
cheap location first,and taking more
of
picking a
expensive quarters
PAYS
rr
KNOW
TO
business
when
ALL
8AY
THESE
justifiedthe step.
BEFORE
THE
FACTS
TWO
MERCHANTS
MOVINQ.
Occasionally a retailer does not figureon his class of
trade when
though he gages
picking a location, even
take
other factors accurately. This was
exactly the mismade
He
had
clothing dealer.
by an Indiana
dious
prospered in one location and when he rented commobank
new
building he
quarters in a handsome
had
his
confidence
keep
rent
His
step
bills and
fixtures
trade
would
follow
him
to
store.
new
Sales increased
to
his
that
ate
up
distress
wholesaler
to
to be sure,
somewhat,
with
increased
interest
on
a
but
overhead.
generous
not
His
enough
larger
investment
profits,and more, too.
signals to his creditors brought
in
all his
the
rescue.
The
wholesaler
looked
one
the
CHOOSING
situation
for half the
store
leasehold
the
10-cent
balance.
for
He
overhead
When
expense
bankrupt him,
to
himself
in
business
to
5- and
a
the
short
in
rent
a
small
his less tentious
pretime.
These
the retailer's business.
saved
moves
into
remarkably
a
to
sold
he
still left
dealer moved
got the
smaller
a
paying;
was
and
expenses,
quarters in
rapid
found
bank-building store
a
price which
paid
moving
the
91
and
out
dealer
the
rent
of the
concern
arrears,
he went
Then
over.
LOCATION
THE
rent
^principally
"
a
delicatessen
dealer
Hi^-classservice
time.
ened
^threat-
"
had
caught
built
his
point where he was operating foiu* stores.
unusually successful,but he was
Apparently he was
with
the facts
wise enough to keep closely in touch
about
and
the danger
his costs
profits,and he saw
mum
he must
make
he saw
a maxisignal. To make money
As
of sales to customers
who
he
he
soon
wasted
as
to
the
wise
in
priceshe
The
he wanted
shallow
into his store.
came
was
vacated
heading the
retailer
of his foiu*
stores,
three
of his
competitors. That he
shown
by the good
acting promptly was
amazement
he
for his leases.
kept had
to carry
traveled
most
He
obtained
store
where
saw
time.
no
much
was
a
central
on-^a
in
street
instead
of
a
for the business
advantages
location
comer
good section.
Its
on
the
depth
so
store, his
place is,
in effect,one
big display window, 48 feet long by 13
feet deep. Here
he is making money-^plenty of it
that
being
a
"
is
drawing trade
sales of two, three, four, and
he
because
sale where
per
Another
before
incident
he
which
his store, and
to
high
as
sold but
one
as
a
making
dozen
items
item.
emphasizes the need
also
of
thorough analysis and
knowledge of facts before
clothing
actually moving in, is the experience of one
secured
He
merchant.
a
large increase in sales by
moving
to
a
from
a
small
first floor
spacious "upstairs
room
store/'
in
a
poor
location
BOYS*
OVERALL
AMD
WOfUC
CLOTHING
DEPARTMENT
aOTHES
OFFICE
OEPAR.TMENT
1
Pt"**f
"
"
""
B
"
VK^J
UJ
"
O
""
o
i!
-J
u
III
2
MEN'S
I L.
CLOTHING
DEPARTMENT
i""va
(9
Z
"ft
Z
IU)
i
i
"a
^
g
lU
2
.-^
Figure
17:
Before
.^^
"
uu.
is the
Here
he
moving
first floor
convinced
was
But
possible advantage.
\
plan
that
he
merchant's
one
using
was
plan with
this
compare
of
old
space
the
in
one
Figure
-4
B0V8
I
11
II
I
II
ir
"
II
I
MENS
A
II
1
Figure
^^
CLOTHINO
I
1
"
1
I
HunoNr
OEPARTMENT
OFFICE
n
"
18:
i
wwm
EK
tk
1
0 0
n
II
18*
^r
PEfldgTMEKT
CLOTHINO
I
P=p
best
^
K
f^?n=TT'^=fT9TTlj
store^
the
to
"
This
Space
was
n
is the
ly
TT
"
first floor
reduced
by
D:
plan
in the
than
more
92
Q
new
half and
store
(see Figure
profits
17).
CHOOSING
old
his
In
Unable
mark.
in
located
the
secinred for
The
of
the
feet, and
placed
the
there
could
be
from
doorway on the
plate glass showcase
and
side
One
feet
7
of
the
store
floor
to
large courtyard, which
of Ught.
^$8,000
clothing
"
while
his net
sales
went
So
much
it.
to
point is
and
of
item
in
of
Every
see
that
a
the
in
his
greater.
and
handrails
installed
the
at
with
well
former
location,
In the
afford
can
his rent
to
third
the advantages
particular business.
The
and
Like
rent.
the
proper
between
to
The
of site and
particular
any
year
18).
problem
selling activities.
to
of
$58,000 worth
doing business, rent
rental
difference
large
a
analysis of the factors
retailer
or
of
the
But
numerous.
sold
cost
in fair ratio to
frequently complex
mean
2%
the
study
cases
side of
in
to
convenience
are
built
feet
10
each
to
plate glass
ceiling. They opened out on
the entire room
plenty
gave
than
more
his buying
to
fitted
was
careful consideration
same
On
were
the
display
$110,000 (Figure 17 and
for the question of location and
up
calls for close
control
about
Bronze
high.
merchant
profitwas
other
every
does
the
first year
make
landing.
a
The
also
was
stairway
the
street.
he
street
the
on
from
windows
the
This
to
turn
that
floor
included.
the
and
electric light fixtures
bronze
entrance
widened
level, so
the
and
of $2,700, heat
landing
a
seen
second
a
retail district.
He
sidewalk
above
take
that
centrally
store
building agreed
alterations.
annual
an
get beyond
not
to
yearly rental
a
did
desirable
a
of the
heart
owner
necessary
could
finally decided
located, he
93
merchant
he
find
to
LOCATION
this
location
of $50^000, but
business
12
THE
factors
paid
that
he
essential
location,
of
tomers,
cusduct
con-
is
problem
involved
and
give the
for the
rent
understanding
failure
group
which
of
success.
in it
it
are
may
IX
CHAPTER
HOLDING
HOW
DOWN
much
credit
customers?
This
is
retailer
credit
of
these
'
Credit
retail
business
86%
of
only
60%
to
they
bound
to
business
of
Since
the
0.4%
from
solution
them
to
a
retail
Any
abnormally
and
the
based
on
To
have
stores
high
following
in
problem,
minimum.
various
total
net
low
94
losses
each
individual
found
was
machinery
inevitable,
are
lies in
course,
credit
were
reducing
figures from
for
analyzed
All
merchant
sales.
charge
apparently
lines.
sales:
debt
credit
a
foimd
bad
it
offer
becoming
And
average
figures
good.
trade.
the
end
centage
per-
lose
much
of
this
have
how
percentages
retail
is
of
the
runs
are
capital
this
been
or
or
necessary
losses
of
basis
some
of the
0.6%
debt
the
of
991
credits
to
bad
some
on
of the
maintenance
the
costs
credit, but
Out
average,
give credit
determines
course
of
every
usually
retailers
many
The
last
many
almost
it
cash
a
on
extended,
come.
in
invest
an
on
and
in
sales.
net
80%
to
is
credit
whenever
that
forced
are
the
ing
extend-
policy.
that
shows
day,
every
hours,
24
big figure
a
costs
practice, but
credit
business
doing
popular
more
can
cuts
The
my
every
debt
year.
common
loose
a
to
65%
Although
are
of
which
Bad
each
every
line; investigation
from
that
failed
result
a
as
a
give
to
in
interested.
become
has
afiford
question
a
proportions
business
one
year
is
LOSSES
I
can
vitally
dangerous
assume
BAD-DEBT
this
book.
disregarded,
rough
check
percentages
for
are
THE
KEEPING
BAD
Groceries
1.94%
0.47%
Clothing
0.34%
Furniture.
that
Now
debts
the
and
are,
of
cost
let
payers,
to
use
Department
Drugs
bad
debt
losses
better
are
by
buyers
than
progressive retailers
slight,"says one retailer,
is very
satisfactory. We
are
system
credit
extend
not
retailer is burdened
the methods
credit
our
bad
problem
a
evil.
the
"because
who
examine
us
stores
serious
how
seen
customers
0.21%
0.21%
0.19%
0.19%
0.10%
Shoes
heavily the
how
check
''Our
do
have
we
05
Dry goods
0.31%
Hardware
DOWN
Jewelry
implements. 0.33%
Vehicles and
DEBTS
all until
at
have
we
ourselves
that
the
applicant is worthy
customer
asks
for
credit, he
must
satisfied
of it.
to
come
When
oiu*
a
office
application(Figure 19). This tells the
need
to know, including where
facts we
look
we
can
is the accuracy
the applicant'sstanding. Such
of
up
appraisement, and so smoothly does oiu* credit
our
find it necessary
to send out
system work, that we rarjely
fill out
and
a
an
collector for
"If
he
every
have
week's
a
high standing can
we
try to keep
possible,for
as
so
close
a
store
of
owner
in the
South
fail.
A
satisfactory,
that
cash
means
of
unusually
30-day credit list,but
get on our
the *cash-every-Monday' rule as
of
most
that
margin
in order
discounts
The
to
is deemed
credit, but
without
Monday,
far
for credit
appUcant
an
can
accounts.
our
hold
to
says
but
made
are
take
must
the
he
purchases
oiu*
we
small
a
man
on
the
10-day
profitmargin up."
progressive dry goods
has
reduced
his bad
debt
practicallynothing by followinga clean-cut
credit policy. He never
without
account
a
new
opens
of his credit policy thoroughly
explaining the terms
expense
to
the
to
customer.
that
for
credit is
extravagant
is
He
a
careful,too,
convenience
buying.
to
and
show
not
the
a
tomer
cus-
medium
REDUCING
96
Another
has
merchant
list of all overdue
a
"
OVERHEAD
statements
who
made
are
of
tenth
out
debt
credit
Local
PLAN
WHICH
WITHOUT
and
especially successful
in
of dollars
on
a
desirable
than
years
of
ago,
of the
the
methods
majority
in the
and
of
his
competitors.
example, requested
the
relied
on
S0%
experience
there
references
his
own
in
men
has
in
a
been
western
hundreds
many
years
to
ago.
the
This
effective
the
the
Mrs.
privilegeof
her
that
judgment
her
dealer traveled
Each
towns.
word
she
trade
cared
the
experiences
Brent-Lane, for
a charge accoimt,
that
to her
as
she
would
pay,
give; and he
abilityand ness
willingto
If she failed to pay,
to a competitor; and
her obUgations.
transferred
two
were
When
had, besides
to meet
soon
been
unusually
DEBTS
nothing about
knew
way
only
BAD
entirely due
of small
own
dealer
one
township.
before this organizationwas
created,
half dozen
in this vicinityused
towns
in extending credits that prevail
his
the
have
been
township
one
business
merchants
same
a
BUYERS
credit
they
is
condition
organization
Two
to
As
lished
annually. Today, credits there are estabsound
the average,
basis;and collections,
on
better
60%
are
reduced
the
costs.
merchants
the
saves
clerk,
a
days on
immediately.
have
REDUCED
of
state, and
first to
binreaus
OFFENDING
interchange
This
monthly
the
sales.
associations
A
book''
30
over
been
in many
towns, and
successful in reducing bad debt
IS
''tab
a
given
have
organized
HERE
calls
When
they are
running
costs
of his net
1%
he
investigatesthem
and
result his bad
what
accounts.
lists all accounts
''tab book"
EXPENSE
she
the
originaldealer felt a certain pleasure, greater or less
according to his temperament, in watching her "sting''
dealers failed to recognize in her
The
his rivaL
two
a
common
enemy.
08
OVERHEAD
REDUCING
EXPENSE
lition of this very
fact,however, is the
that is today bringing into being more
and
organizations like
this
against the ''dead
war
alone.
The
commercial
who
lack of
in fact,on
relies,
more
association.
beat'^ cannot
man
dition
con-
be
does
not
waged
fully
success-
his debts
pay
organization among
The
merchants
his ends.
Competition of the sort that aims
at a rival^s throat is what
permits him to prey on one
and then on another, going the rounds
of all of them.
He
listed ''black"
dreads, above all,having his name
index
that can
be freely consulted
an
on
by all the
to attain
merchants
record
he wishes
stands
there
still grants him
who
obtain
to
credit from.
plainly revealed, and
does
a credit privilege
His
the
past
dealer
with
so
all
risk.
danger signalsup, and at the merchant's own
The
first problem faced by the organizers was
to
establish ratingsfor the credit buyers of the community.
Each
merchant
went
through h^ books and listed Ids
Then
he
credit
customers.
placed a checkmark
beside each name,
showing his experience with that
There were
five classes: "prompt,'"' good,"
eustomer.
"fair," "slow," and "very poor," which
were
nated
desigin the lists respectivelyby the numbers
1, 2, 3, 4,
and
5.
merchant
Each
ratings
in his list with
these
secretary of the association.
signed so
not
were
the
to
sent
there
was
private
The
lists
danger that facts which
no
might wish to keep secret would be divulged
their competitors.
In the association,the secretary is the working center.
merchants
to
He
receives
various
credit
the
merchants
(Figure 20)
any
whenever
it is wanted.
At
up
the top the
Below
is space
and
gathered
holds
part of the information
to furnish
sums
information
The
card
his information
buyer's name
in which
which
is shown
and
address
to tabulate
the
himself
to any
on
from
in
are
ready
member,
the
tary
secre-
Figure
21.
written
in.
the records
taken
The
devoted
space
to each
columns, captioned with
placed
first column
is
revision
takes
that
data
and
from
On
is
CBEDIT7
OR
revision
are
running
now
in
on
AND
is
conducted
cash
a
basis.
mail-order
who
extended
compete
with
low
prices offered
houses.
One
he would
wholesale
and
discounts
overhead
the
postage, and
often
cannot
by the catalog
that by eUmmating
get cash
to
houses, reduce
bookkeeping
his
be able
policies
is especially
competition is
credit
decided
merchant
credit
a
store
This
Merchants
the
TESTED
changed their
where
towns
some
keen.
from
his
of
expense
in this way
save
money
customers.
First he
thought of all the advantages he could
his customers
induce
to
worked
He
goods.
and
in
POLICIES
have
who
in the past have
business
6IMPLE
ARE
BOTH
FOR
merchants
Many
for
year;
of the year .goes
of the card, space
reverse
HERE
PLANS
credit
in the
it.
on
CASH
true
secured
the
information, such as the buyer's
of his homestead, and
incumbrance
any
salary, value
and
In
2.
beginning of each
at the
the
years.
into two
figures 1 and
information
second
eight
additional
left for
there
the
of
99
is subdivided
year
the
DOWN
period
a
the
place
column.
the other
DEBTS
reports for
members'
from
BAD
THE
KEEPING
them
out
a
selling,and
cash
to
plan
cash
pay
based
cash
on
saving of
the
for
money
offer
quality
buying
to
his
customers.
This
plan
a
to
them,"
of his farmer
some
says
this
could
buy and sell for cash
worth-while
we
saving, because
we
of the
number
that
had
I
submitted
showed
"I
if
he
long
as
to
add
showed
as
them
how
of
costs
we
to
we
merchant, "that
could give them
could
doing business.
incurred
our
we
these
tomers.
cus-
extra
eUminate
I
a
explained
expenses,
we
sellingprices. In otiier words,
could
operate
on
a
considerably
REDUCING
100
EXPENSE
OVERHEAD
margin of profitby cutting out the overhead
bookkeeping, bad debts, long-time credits,
on
expense
and
lost cash discounts.
I also explained how, on
a
would
be in a position to take advantage
cash basis,we
of cash buying.
of the power
that by operating on
''Furthermore, I demonstrated
narrower
a
basis I could
cash
out-of-town
I could
and
would
competitor on
only give the
not
the
meet
pricesof
any
class of merchandise.
any
better
customers
service
houses, but I could save
every
half the freighton any pinrchase.
customer
''If customers
basis
are
willingto buy on the same
that they buy from the mail-order
houses, paying cash
and eliminating certain convenience
of service, then I
in a positionto give them
the same
am
or
even
a larger
lines.
saving on most
"From
the beginning the farmers took to this plan.
than
mail-order
the
Not
said
one
them
One
of
Most
said
And
they would
they have.
try it out.
Store
which
night last month, Wildey's General
been
chants
operated on a credit basis by various merunder
with
On
who
the
the
the other
has
running
been
his
One
money.
credit.
He
Westerfeld
store
on
next
"
morning
been
"I
in
for
cash
a
he
day
says:
The
years
keeping trade at home,
problem of mail-order competition."
hand, Sol Westerfeld,an Illinois grocer
in business
has
25
over
in business.
little trouble
I have
"Now,
started
Store
for
names
last time.
for the
Cash
Wildey's
trade
various
its doors
closed
had
cash.
pay
"
had
or
couldn't
he
that
20
over
basis
turned
years,
and
about
that
ever
under
been
making
was
face, and
giving credit
found
had
since.
the cash
gave
Mr.
plan
own.
My
really call my
trade was
at the call of competitors' temporary
price
reductions.
unreasonable
I had
to spend an
amount
on
advertising and
constantly offer special price
no
customers
inducements
in
I could
I
order
to
hold
my
share
of
trade.
Figure 21:
ciat
The
ossodation
cards
in order
21
The
:
to
reduce
proclamation
shown
obtain
to
unaiEned,
ai"
Rgure
card
so
there
their
of the
is
no
one
and
about
southern
each
bad
used
by
credit
town
accounts.
merchant
held
one
commer-
The
ciutomers.
of giving out
danger
losses fmm
week,
of those
one
infonnation
of
merchants
U
above
'
trade
'
'pay-up week,"
a
The
displayed
mayor
a
aecrett."
signed
copy
of
a
it.
'
"
:
"
"
:;BEDiJGiNG
:"":iOi.Hi
These
facts
When
I received
from
a
OVERHEAD
and
EXPENSE
led
others
to
invitation to open
an
awakening.
my
charge account
a
large department store running a grocerydepartment, the die was cast. I reasoned that if the
largestore found charge accoimts worth while,I was
making a mistake in holding to a cash basis. I concluded
if
that even
I made
a cash basis,
on
money
my
not boimd
customers
to me
as
were
closelyas they
be if I carried their accounts.
would
''So I said to the .firstcustomer
to ask for credit
after I had made
decision:
'I shall be glad to
my
extend
credit,but I would like to have the references
business.^
customarilyrequested by any well-regulated
Under
the combination
cash and credit plan which
I
have since followed,
I held my cash trade and expanded
business
credit customers.
satisfactorily
By
among
and offeringcredit I am
able
having steady customers
to obtain a better profitmargin. Since my
loss from
bad debts has never
half of 1% of my
exceeded
one
sales,I think these advantages well worth their cost."
my
Merchants
H,
week"
pay-up
The
in
several
plan, and
merchants
"pay-up
cities have
of
week"
foxmd
have
Wilson, North
one
and
year,
the
adopted
it worth
while.
Carolina, held
collected
$73,000
"
a
a
result,you'lladmit.
satisfactory
This
was
an
of
average
than
more
for every
$10
in town, since the census
figuresgive Wilson a
population of about 7,000. Furthermore, the cost of
person
campaign
the
only
the
a
was
little over
merchants'
''The
one
merchants'
industrial
undertaking
committee
dollars
were
tenth
was
"
of
1%.
a
season
The
year.
given
to
to
it:
a
good
time
crops and an
of this
management
the
good
regular advertising
association.
of the merchants'
appropriated
of
secretary of
The
selected
association
after
in all to
^itamounted
"
tells about
association
for the campaign
active
low
very
One
put it through.
hundred
M
'
--"
PAY-UP
WEEK
November
Six
for
Days
Reasons
!"
Your
2.
We
A
Your
5b
will
been
payment
with
4"
help us
kind
to
will
now
you,
at
goes
prhited
and
Wilson
a
deposits,and
their customers
all farm
on
are
a
products
tfaousand
which
to
a
to
town
sent
'pay-up week*'
much
TMs
ticket entitles you to one
Association
Merchants
SIGN
NAME
AND
and
Figure
One
24:
Moore's
Prizes
of these
chance
amounting
tickets
was
ON
at either
BEFORE
$70
given
WILL
now
pay
grow
reproduced
one
out
in
on
the
town
one
were
with
103
on
above
first of the
were
month
held.
was
$1
the $50 in GoM
OF
BACK
Patterson
MONDAY
to
last
Account
on
ADDRESS
Deposit in Contest Boxes
above
if you
$1 Pay-UpWeek
the
thus
assistingthem
pay
slips like the
$1 Paid
rating
bank,
for WILSON
statements
'
are
CAN
BOOSTER
help your
attached
during
to
once
to accommodate
Ten
turn
credit
your
bank
increasing
If you
and
23:
it's your
now
merchant
year's prices. You
Figure
Six
debts
our
pay
improve
Wilson
every
check
Prices
6b
13
to
reciprocate
to
S*
8
and
Paying Your Accounts
Why You Should Pay Now
mon^
have
..
"
r
"
THIS
Drug Co.
NIGHT,
every
TICKET
or
NOV.
given during
$1 paid
given by
'
Turiington
15
'pay-up week.
on
account.
""
"*
"
"
"
"
/"\;l^::-"B^DUGING
OVERHEAD
first action
''The
EXPENSE
of the committee
to arrange
was
for newspaper
advertising.By an agreement formerly
with the editor of the local paper, the association
made
to have
was
as
much
newspaper
it
as
space
required,
desired.
free of charge, whenever
"Two
weeks
prior to, and
from
one
used
by
signed
which
during
columns
half to two
the front page was
lend dignity the mayor
advertidng. To
'pay-up week'
proclamation (Figure 22),
published continuously.
the committee
advertisingin the newspaper,
10,000 envelopsprintedin red ink with the
a
"Besides
had
'Pay-up Week, November
help/
in these
A
WEEK"
"PAY-UP
PUT
THIS
BASIS
THAN
TOWN
everybody
their statements
ON
EVER
all store
that
series of five window
windows
cards
printed in
distributed by the secretary to every
so
to fit the
as
bore
in each
cards
four
about
measured
14
"Painted
on
were
the words:
And
\mder
banner
and
Four
Each
card
it
oblong, and
was
inches,and
after
the
30-foot
at
each
the
it was
on
printed
newspaper
banners.
These
banner, in 14-inch
'Pay-up
some
the mayor.
and
window
principalbusiness
Week
this slogan, in
carried
a
proclamationsignedby
seven
the streets
across
ink
member.
of windows.
fifth card
22
red
a
triangular in shape,
were
corners
by
the 'pay-up week'
in value
"Next
displayswere
set
The
slogan.
some
BETTER
A
BEFORE
might present
during 'pay-up week,' we had
appearance
of these
Let
"
the first of November.
on
order
uniform
8 to 13
mailed
merchants
The
CREDIT
"In
week,'
pay-up
on
the
was
words
*
such
"
8-inch
phrase
blue
as
comers.
red
November
himg
we
letters,
8 to
13.'
letters,each
'Start
dollars
'If you can't pay all,
moving,' 'Every littlebit helps,'
some,' 'Boost your town's credit,'and the like.
pay
banners
before.
were
These
put up the week
106
REDUCING
OVERHEAD
reported
collections
than
entire
the
and
year,
week,
tsame
previous,
the
'
Some
of
goods
are
have
of
for
delivery.
successful
A
sums
*'I
up
have
by
the
conditions
whole
be
placed
upon
to
charge
the
from
out
man
doing
both
60
my
to
90
must
do.
business,
receiving
I
and
have
my
equal
been
very
problem
credit
own
that
that
in
my
at
customers
benefits
in
that
credit
I
injustice
wait
you
worked
have
real
satisfied,
and
the
for
which
way,
dollars
should
an
makes
found
are
saying:
prices
longer.
last
is
same
own
in
patrons
it
who
naan
often
plan,
well
all
tlie
the
problem
own
have
"
order
an
impression
basis;
customers
days,
cents
pretty
the
same
as
delivery
losses.
situation
bettered;
cash
5
price.
selling
the
and
and
his
under
the
to
in
"cash-with-a-discount"
the
be
amount
plans
solved
been
where
bad-debt
credit
merchandise
same
in
departments,
credit
these
down
has
could
fall
eliminate
down
goods
of
using
always
year
to
able
marked
for
charged
who
successfully
are
certain
a
cutting
retailer
the
the
previous
been
cash
and
Both
in
best
not
merchandise
$1
on
during
camjiaign,
the
installed
add
their
preceding
collected
pay-up
have
delivered
not
the
more
store."
merchants
cent
for
the
20%
as
of
was
been
which
entirely
price
a
week'
November
than
having
concerns
Other
of
more
that
credit
1
month
without
history
*pay-up
for
150%
EXPENSE
every
pleasure
and
we
cents."
in
are
CHAPTER
TRAINING
HOW
X
SALESPEOPLE
YOUR
SALES
MORE
GLANCE
A
sales
sell his
to
is not
there
as
"
be
And
cost.
first increase
must
Investigation
the
each
dollar.
be
given
much
sales
the
responsibility
how
total
and
and,
(3) he
store's
was
retailer.
solution
he
a
"I
too
studied
lay in
to
each
sales
from
men,
salesmust
doing
^how
"
be
lower
his
the
why
year,
given
the
sales
employer;
interest
in
and
percentage
the
mission,
com-
profits.
sell," declares
situation
107
or
material
net
using
from
must
represents
a
much
is
last
raise
of the
increasing
the
are
salesman
store
bonus,
the
can
throughout
more
(2) he
can
given
share
direct
costing
he
a
or
merchant
they
the
in the
on;
so
by
be
the
results
best
the
personally
be
must
what
how
profits, either
or
"It
told
"
this
expense
lowering
of
get
that
increased
right, and
is
mark-up
get the
of
have
will
retailers
to
declare
idea
an
net
generally
actual
fimdamentally
To
of his
is
sales.
methods
same
retailers
(1)
do
to
It
it is
the
one
successful
that
the
these
total
among
practically
salary
in order
his
shows
country
^but rather
"
item.
indicates.
salaries
that
show
9%
over
lowering
indication
reduced
percentage
of
doubt
no
selling,however,
question
no
much
very
of
cost
a
is
merchant
business
doing
single
goods, investigation
the
Reducing
agreed,
retail
typical
the
will
largest
the
as
of
costs
merchant
any
salaries''
costing
list of the
a
almost
of
'^
at
MAKES
and
individual's
an
Ohio
decided
sales.
the
REDUCING
108
"I
but
thought
for
an
But
I
watch
to
It
took
a
lot of
needed
salesmen
my
I decided
day.
OVERHEAD
only
EXPENSE
good as the
their sellingmethods
were
as
long
that
training. If
discover
to
customer
a
average,
for
that
and
came
one
they
asked
article,the salesman
perhaps leisurelyImnted
aroimd
for it,found it,laid it on the counter
somewhat
and
'We're
disinterestedly,
probably said:
sellinga
lot of these/
If the customer
wanted
it badly enough,
he bought it,if not he walked
it.
out without
portant
"Right then and there I reaUzed what
vitallyimfactors in my
organizationmy salesmen were.
that sometimes
saw
the salesmen
their
opportunities and
everything I could to make
opportunities. Today
main
sales
to bring our
and
"One
sales
class.
At
up
employees
our
realize these
working with might and
force to a higher state of effectiveness
we
to realize this
evening
I made
failed to nize
recogmind
to do
my
are
important
weeks
every
two
these
meetings
we
we
factor.
conduct
talked
a
of
sort
sales
over
methods
increase our
by which we
can
business, and
all changes that can
be made
better work
to obtain
or
to
have
make
the
only
three
work
pleasant.
more
salesmen
but
we
make
Of
we
course,
it
plain
that
meetings, and that if they have anything
to say or any
suggestions to offer or any criticisms to
make, not to hesitate; for we are always eager to get
their ideas and
suggestions.
"We
also take up the study of merchandise; at one
these
are
meeting
their
history and
will discuss
taking
each
up
one
perhaps discuss tea and study its
methods
of preparation. At another
we
And
later
coffee.
or
so
we
proceed, sooner
will
we
almost
every
of
salesmen
the
about
our
Une
in
our
stock.
learns, and
merchandise
can
In this way
talk convincingly
to customers.
business
does not
typical small grocery
do
itself as readilyto commission
as
arrangements
I obtain
enterprises in other lines. Therefore
"The
lend
some
the
TRAINING
COUNTS
THAT
109
clerks
by paying a bit higher wages
and
the next
than
treatment
by considerate
man,
makes
which
employees feel satisfied."
my
observation
is," declares one merchant, "that
"My
clerks cannot
always be traced
I"oor sales results from
indifference
lack
of experience or
them.
to
among
be followed back
times
it could
desks
to oiur
Many
for by oiur incompetency as leaders.
and accounted
cooperation of
of
"Some
my
salesmen
think
us
and
clerks
are
the
same.
by a long shot. A clerk waits
sells goods.
the trade and takes orders; a salesman
on
It is true, however, that in the majority of instances
clerks and salesmen
rate.
are
paid at the same
"For
example, say we want to hire a salesman, as I
should not hire mere
clerks.
contend
that we
Suppose
fellow who
is popula^ and a good
we
pick out a young
His fitness for the work, or his sellingability,
mixer.
They
like
as
not
are
is
put in
we
a
located, and
salesman.
Next
about
talk
not
we
into the transaction
enter
hired
have
we
that
stock
me
not, does
as
"After
are
with
a
few
at all.
real
salesman, the chances
hours
tellinghim where the
then
him
turn
forget him.
salesmanship,
no
over
There
reference
another
to
has
to
been
our
no
store
of ways
to sell service.
There
is
have
that he may
latent sales ability,
chance
some
a
but surely this sort of procedure will not bring it out.
policy,no
"In
once
them
our
a
store
month
at
restaurant.
my
discussion
house
the
we
hold
meetings of the salespeople
the year round.
In the winter
and
store
get limch afterward
During
and help
the
the
summer
talk
we
at
have
some
get together at
with
along
we
refreshments
before the
we
cigars. Sometimes
go to the movies
car
meetings, or take rides in my
^my 'sales force'
is not so large that I cannot
I
auto.
get it into one
lot of good in our
find that these meetings do us
a
You
notice
I say
'us'
fight with higher costs.
I always learn something at these meetings.
because
and
"
"
REDUCING
110
"At
of
some
into
a
wanted
them
net
also
EXPENSE
meetings I took
I
showed
them
the
workers
exactly
how
I
sellingcost" 16%, and explained that
I did this because
profit of 10%.
at my
wanted
We
first
our
confidence.
my
arrived
OVERHEAD
to
obtain
discuss
store
customers, methods
for
information
the
I
I
first hand.
service, ways
approach
to
attracting interest in
lines,
new
getting acquainted with
our
newcomers,
advertising, competitors' publicity,window
dressing,
for
plans
and
arrangement,
store
HEBE
so
PLANS
ARE
THAT
FROM
"r
We
into customer's
hands
manufactxuing
details
If
argument.
handle
with
handled
a
or
in this way
interested
becomes
what
interest
we
the
in
large for
to have
try
close
or
attachment; in fact,carry
personal
RESULTS
simply putting an article
its
and then tellingthem
about
provides the best sort of sales
at least
to open
^as
"
BIG
that
article is too
an
readily,we
it
GET
list.
the
SALESPEOPLE
concluded
have
down
on
him
a
do
something
door, take oflfor put
a
out
any
desire
that will
act
to
customer
on
an
arouse
a
for
possession. When
customer
forgets the price and
^which is exactly
the article
"
want.
/right oflf the bat'
the market
that the article is superior to anything on
something about
by showing him that we reallyknow
'live' manufactiu-er
it. Of coiu^e,
cheerfully
every
tion
supplies literature prepared to give retailers informabehind
the
about
the manufacturing
processes
"We
strive
goods they
what
"Each
This
the
to
that
work
one
keeps
our
him
information
This
stock.
matters
basis,
convince
'manufacturers'
called
is
to
to
its face
probably
But
selling arguments.'
us?
It
on
gives
us
the
facts, or
on.
of
us
sets
stock
goods belong, and
to
out
looking
when
be
neat.
not
good stockkeeper.
a
We
busy
at
all know
sellingwe
where
work
Pigure 25:
in
10
ThU
different
pcrcent^et.
chart
Unei
The
you
as
ihows
compared
vehicle
BCC,
the
but
salary
with
business
not
has
far ahead
Ill
cost
the
a
of
perceotage*
total cost
to
net
sale*
of doing biuinen
high
salary percentage,
some
other
lines.
aa
112
REDUCING
the stock.
on
worth
dig
for
under
the
we
counter
article that
an
in order
another
"When
is not
that
means
or
enters
in to
come
waited
^we
"
several
to him
buy.
is what
until
we
'This
to take
ready
are
is ihe
manner
that
jump'
all entered
a
clerk
one
stores
decided
to
putting
up
try to avoid.
stereotyped *What
and 'Now, what
else?' are
We find it easy to signifyto
we
brisk
a
to discontinue
or
"The
that
have
to
salesman
any
'at the
We
minutes
in
basement
shout
store
our
assume
stop talking to associates
That
the
upstairs,or
goods.
to locate
business
into
be
busy sellinggoes
customers
stock.
down
go
should
customer
a
who
and
So
EXPENSE
always appear to be busy, whether
is reallya little dull, and that alone is
busmess
have
something. We
to
seldom, very seldom
not
or
OVERHEAD
I do
can
banished
for you
from
our
the customer
by
of him.
We
care
oiu"
today?'
store.
attitude
also avoid
market/ and like platitudes.
start in by saying 'Do
Perhaps we
know, Mr.
you
Hawkins, that this article goes through 12 different
best
before
processes
on
the
it reaches
finisher?'
the
corresponding quality appeal. Our
the prospect in the article so
for the price when
the time
"Then
not
we
a
may
crude
some
All
clinching sales
quoted.
But
in other
him
work
is not
in
goods.
of
the
in
customer
one
some
like to
task
This
store
our
"
us
a
this?' but a
I sell you
additional
awaken
desires.
of
wants
argu-
the
it, its cheerfulness, its
^for we
service
shoppers, our
well as the goods."
^the arrangement
veniences
for busy
points as
Every worker
comes.
If the customer
strive to interest
these
quote it
receptive
'Can't
to
attempt
"
shoulders.
is
the sale.
with
mean
to
some
effort is to interest
to get his mind
as
other
price
try to interest
we
subtle
more
Or
end
not
hurry,
does
with
Finally the
ments.
does
follow
we
or
responsibilityon
feel that
well, that
our
we
work
are
con-
sell
his
plishing
accom-
is worth
OVERHEAD
REDUCING
114
retail merchant
Another
employees
on
last
the
meeting the merchant
holds
day
new
lines he wants
to
to secure,
As
supplement
a
keeps
and
like.
to
these
he made
He
month
this
At
discusses how
out.
also
lines
out-
tells which
"
of sales he is
volume
the
record
book
a
month.
plans which
the
coming
push, what
and
each
carried
the
for his
meetmg
a
just past^
been
plans have
plans for
far these
of
reviews
first of the month
at the
EXPENSE
ious
anx-
meetings, this merchant
shows
him
just what each
which
man's
salespeopleis doing. The book gives the salesrecord not only for the month
just past, but also
of previous years.
the corresponding months
In
of his
for
the merchant
this way
can
progressing.
are
increased
see
how
the various
Increased
sales
uals
individ-
totals, plus
in the details of store
conscientiousness
work,
plus increased abilityto work with others, taken all
value to the store.
for increased
The
together,make
merchant
to his desk,
frequently calls the salesmen
shows
and
In
their records.
them
fact, they quite
without
often come
being called,because they are eager
the best possibleshowing.
to make
salary in proportion to the
Fixing the salesman's
in the form of commission, bonus,
sales made, whether
premimn, or the like,is one of the greatest factors in
gaining the cooperation of salespeople.
An
eastern
that his
salesman
employer
fruits of his labors
to individual
retailer pays
at
is
is
that
proper
to the
willing to have him share
a
mighty good incentive
effort."
his
Semiannually 1% of
all employees
among
store
fo\md
have
"
reward
One
"I
says:
^like all of us, I guess, appreciate a
for oiu* labor.
Any plan which proves
salesmen
in the
druggist
salespeopleby salaryand bonus.
the
who
least six months.
total
cash
sales
have
been
employed
The
distribution
is divided
in the
is shared
"
on
a
basis
of the
wages
each
salesman
receives
"
the
TRAINING
bonus
of the
of the
one
COUNTS
THAT
receiving $20
receiving $10 a week.
is double
week
a
one
116
that
the amount
It is easy for this merchant
to determine
of bonus
should receive.
each salesman
He finds what
paid
the amount
percentage
the total amount
paid
for
out
salesman
to each
out
labor; then
he
gives him
that percentage of the 1% of the total sales.
For
example, if the total sales for six
amoimted
of
$30,000, the salesman
to
total
the
period will
paid
amount
receive
''Although
dividend
a
considerably, it is well
labor
amoimting
increased
plan
the
to $30.
this
it,'*
says
worth
that
during
labor
our
months
salary is 10%
whose
for
out
is of
expense
retailer.
sales force, and spreads
interest to our
gives new
salesman's
the spirit of cooperation. Each
interests
of
lies just where
does
own
oiu"
^boostingthe volume
"It
"
sales for the whole
store.
plan
sales have
A
and
into effect
clothier
finds
gives a bonus
that
that
and
And
from
for
or
over
by
good clothing.
wear
the
profitthat
comes
grades of merchandise.
better
automatically
that
the
increased
The
voliune
commission
method
of
a
of payment
unsatisfactory,a California
which has
plan for paying salespeople,
in his store.
He
plan only
method,
So he decided
that
25%."
sale of $25
sometimes
devised
well
likes to
is benefited
an
over
this merchant.
ReaUzing
was
everybody
selling the
been
increased
put this bonus
covered
surprisinglywell. He dislike to sell good clothing,
it works
his business
have
we
for every
his salesmen
almost
that
result has
sales
our
Since
a
and
considered
the
retailer
worked
salary and
mission
com-
of the
straight commission
equally unsatisfactoryin his case.
modification
to fix each
month
a
maximum
percentage
department ought to cost for sellingexpense.
the
Then
he planned to allow for distribution
among
salespeopleany saving in the actual cost of each department
^the saving t6 be divided
as
against the standard
each
"
REDUCING
116
equally
of
From
experience
for
work
returns
individuals,
department
tends
bring
conditions
making
The
and
stimulus
To
his
affairs
for
increased
is
he
and
himself
and
The
motive
to
his
power
will
shop
with
windows
both
the
to
has
fix
all
employees
give this problem
to
A
worked
it
before
it acts
as
a
month,
basis
yearly
forgot
but
maxi-
a
salespeople
the
constant
effort.
look
into
his
clerks
that
he
then
his
drives
which
him,
his
but
bright.
with
their
affairs; when
other
of
thinks
reflect
his
business
all who
workers
than
think
will
and
he
more
his workers
strengthened,
makes
in
interest
and
will
sales
retailer
the
ideals, shows
and
be
when
that
his
them
him,
is to
bonus
business;
success
only stay
also
department's
any
yearly
imselfish,
with
him,
It
the
convince
to
entire
proprietor
the
consideration.
each
ideals
lets
manages
of
people
sales-
strong
bring the
plan
retailer
it appears
up,
and
that
the
Paid
workers'
of
the
fair
is
figure,
up.
sum
of
This
to
because
was
year
his
that
easy
poorly
the
to
against
part
thoughtful
more
record
the
on
bonus
the
standing.
attention
operate
employer.
the
was
not
the
difficult
very
on
to
percentage
mmn
in order
everybody
As
lead
to
this
showing.
good
most
not
bonus-earning
a
which
a
and
weak,
to
up
to
the
method
it induces
benefit.
tendency
a
on
tion
principal objec-
the
that
equally
it has
develop
to
in
department
this
with
far
department's
divided
are
each
worked.
days
so
system,
the
in
it eliminates
that
bonus
a
of
number
finds
to
to
the
his
merchant
salespeople
the
among
basis
the
EXPENSE
OVERHEAD
this
spirit.
machine
will
success
help
for
to
keep
PART
III
WHERE
KNOWING
BUSINESS
YOUR
STANDS
CHAPTER
SIMPLE
RECORDS
XI
WHICH
FACTS
approximately
how
the
with
of
day
spend
much
work
who
men
losing sight
accounting
and
day
on
The
jeweler
of
this
chapter
of
each
month,
day
period,
profits, and
readily,
without
think
the
made
I use,
perhaps
the
to
on
again
with
are
too
in
they
the
are
will
give
so
help
119
simple
others.
over
and
the
today.
beginning
at
the
for
comparisons
previous
to
every
faces
facts
same
of
solving
the
a
right
work
at
in
amoimt
great
toward
fussing
much
The
"Promptly
I have
planned
fact,
still.
are
lost
becoming
statement
the
the
are
They
merchant
say:
too
trifling affairs
minutes*
far
go
time
takes
them.
a
few
a
too, I know
here
and
average
expenses
records
for
the
'^It
over
take
not
will
goes
ing
correspond-
perhaps
standing
are
will
who
know
expenses
haven't
or,
time
do
labor, and
and
"My
records
They
which
problems
their
could
books
your
that, I
the
These
big objective
system
time
your
of the
detail.
of
mass
busy."
too
employees
"I
say:
systems,"
spending
are
their
that
I'm
for
if so,
before.'^
merchants
and
before, and
than
figures
accounting
on
earned
sales, profits, and
same
Detroit
a
business
day
More
day's
year
hear
VITAL
says
my
the
me
much.
the
the
often
We
to
how
previous
compared
whether
for
money
o'clock/'
10
at
retailer, ^'I know
any
UP
QUICKLY
morning
EACH
SHOW
end
the
of
30-
sales,
year.
me
these
details.
helpful
facts
The
that
I
LESS
120
"RED
TAPE"
ACCOUNTING
IN
''I will start right at the b^;iiming. We
cash
and
charge sales through
instances
most
ticket which
the
the
cash
customer
wants
write it out
for him
then
into
goes
are
sales
are.
in
the cash
registergives
each
salesman.
of
These
(Figure 26),
interestinginformation:
the
are
which
assembled
gives
Clock
of
the
Merchandise
ledger (customers')
Charge
cash
as
the
the
made
by
in a special
following
sales
and
novelty sales
Optical sales
Watch
repairdepartment sales
Jewelry repair department sales
Clock repairdepartment sales
sales
diamond
small
one
sales
''Laid aways''
sales
Watch
sale,we
This ticket
of sales
amount
of cash
and
when
report which
the
SQverware
Jewelry
But
morning all of these tickets are
register.They go to the office,
''Paid outs"
Diamond
small
of the
register,instead
facts
record
to
the
when
next
cash
Charges
out.
sales-ticket book.
together with the actual cash and
Total amount
on
the sale is rung up.
successfullythe same
way
''Promptly the
from
a
cash
out
handled
removed
recorded
are
both
roister. In
cash
registerthrows
complete record
a
the
ordinarilythrown
sales
sales
the
the
handle
sales
Total of each salesman's
sales
'^This
specialrecord goes to the bookkeeper, together
and he makes
with the 'charge' and 'paid out' tickets,
his entries
in
(Figure 26).
a
For
the
information
I need
bookkeeper
also
This
shows
the
each
store, and
purpose
to
run
enters
my
the
each
and
journal
of
the exact
giving me
business
properly, the
sales
daily, monthly,
also
book
salesman
in
and
another
book.
yearly sales
of
(both charge and
ing
comparisons against the correspondprevious periods,and percentage rates of increase
decrease,for every department and each store.
cash
or
cash-sales
combmed
sales); with
LESS
122
''Quite
method.
the
TAPE"
often
a
specialenvelop
safe which
envelop
sales
sell
we
ACCOUNTING
IN
make
we
Whenever
put it in
of
"RED
by
'laid-away'
the
article in this way,
an
and
file it in
is reserved
for the
a
we
compartment
The
purpose.
(Figure 27) has spaces in which we
record payments
Whenever
laidas
they are made.
a
buyer calls,therefore,to make a payment
on
or
away
tell by looking
can
get the merchandise, the salesman
at the envelop the whole history and
present status of
the transaction.
I keep a separate ledgerfor these
laid
we
use
'
*
'
aways'
this is checked
and
envelops
in each
THESE
RECORDS
store
each
MERCHANT
ALL
THE
^laid aways,
"Payments
on
the cash
the
register. And
with
sales
the other
the
envelops
been
entered.
record
the
bookkeeper gets
slips.
make
to
a
against the
^
JUST
WHERE
TIME
of course,
record
we
following morning
of these
He
checks
the
sure
have
We
balanced
week.
ONE
SHOW
STANDS
HE
and
in
the
along
slipsagainst
payments,
the
amounts
proper
specialaccount
in the
have
general
ledger for ^laid aways.'
"We
receivable
keep separate ledgers for accounts
and
accounts
payable. All postings to the accounts
receivable
ledger
come
from
All credits to accounts
book.
small
the
combiaed
cash-sales
payable, with
the tion
excepcash-sales book
items
through the
from an invoice register(Figure 28).
and journal,come
it for only two purhave a journal,but we
"We
use
poses.
In it we
record, first,all bills payable; and,
entries in connection
second, the end-of-the-month
sheet.
Bills
with
monthly
closing and balance
our
for
payable are entered in a separate ledger accoimt
in which
each month
at
due, so we know
they become
is coming due each month.
all times how much
merchandise
records are kept in an interesting
"Our
of
way.
a
We
few
have
a
specialbook
for the
purpose
(Figure
Insure 27:
Here
is shown
gooda
Figure
records
28:
The
which
on
form
top
facts
about
goods,
and
an
customers
reproduced
invoices
so
on.
envelop
for keeping track
have
made
shows
the
received, detnt
Merchandise
of
'
"
'Uud-away
payments.
invoice
memoranda
is classified by
register, which
covering
turned
re-
departments.
LESS
124
29).
"RED
This
section
and
TAPE"
book
the
sections, each
of the finns we
buy from,
numbered
contains
being devoted to
firm being known
one
the section
by
separate sheets in each section
and
so
So,
when
on
^while the lines
"
enter
we
have
price tag
a
to show
costmark
symbol
where
us
3-F-12
lettered
are
sheet
each
on
which
numbered.
are
that
means
matically
auto-
we
place on
find the cost.
can
we
The
^A,B, C, D,
"
must
we
the
the
Thus,
paid, the
price we
sellingprice,and a full descriptionof
found
by referringto the merchandise
fijm whose
number.
article in this book,
an
the
ACCOUNTING
IN
will be
the article,
book
under
the
This method
F, line 12.
of keying proves
very satisfactory.
''This book
is for original entry only and for a full
descriptionof the article. In addition, I have a set of
cards (Figure 30) by which
I keep track of what
chandise
mernumber
is on
is 3, sheet
hand
and the merchanin the stock room,
dise
descriptionon hand in each store.
of every
''This is checked
time
to tell
hand,
on
at any
call
we
of
form
for those
book
stock
oiu*
descriptionof
of the
stock
and
room
"From
articles which
record
the various
makes
and
up
a
have
does
a
book
ties
novelthis
on
mentioned,
The
second
been
entered
contain
not
of the
record
merchandise
any
bution
distrito
the
stores.
sheet
merchandise
is kept for all mounted
day's business,the
showing the cost of all
sold.
A
separate
record
diamonds.
recapitulatethe total of
day, and obtain a monthly total.
"We
above
direct to the card.
record, but
item, merely
stock
entered
book
the
and
the sales tickets for each
bookkeeper
diamonds
the
in
quantitiesare
clocks
for alarm
merchandise
The
recorded
is used
one
what
stock room,
but in each store
form is used for all articles
also
specials,
entry being made
the
the
The
all kinds.
is not
form
in
time.
one
which
only in
able at any
are
we
articles and
just what
not
daily and
up
the
cost
With
sheets
"this
each
figurewe
SIMPLE
RECOKDS
EFFECTIVE
AND
125
journal entry creditingthe stock accoimts, and
Of course,
charging the cost of sales,by departments.
make
a
for
account
the
between
difference
the
the sales
profit of that
is the gross
department
a
of sales and
cost
department.
monthly
''The
extended
all three
show
to
listed
much
separately.
store
this
on
FACTS
monthly
trouble, be worked
extra
is
statement
ADAPTABLE
ALSO
ARE
e3q)enses
without
the
ESSENTIAL
THE
GIVE
WHICH
AND
keeper
the book-
the results from
of my
stores; and
the results for each
RECORDS
SIMPLE
"The
I get from
in the first set of columns
shows
operating
which
statement
report can,
out
on
a
per-
ful
basis,and I find such percentages helpcentage-of-sales
of comparison.
for purposes
Checking the expense
for
against corresponding percentages
percentages
previous
And
the
to show
sure
and
once,
I
of
this sort
with
taken
are
sheets
out
of
which
the salesman
the
a
customer
department,
to
the
can
might
and
office and
write
be
as
his
a
as
soon
opinion as
mailing list and
our
next
thus
original
the
in
spaces
to whether
of any
other
This insert goes
prospect
if so, which
ones.
is entered
the name
our
These
attached.
inserts contain
The
also
expenses.
paper
envelops
sale is made.
record
on
laid-away envelops contain
and
of carbon
of the
erly.
prop-
are
check
a
managing
am
startingare pretty
looking for the holes at
I find it mighty impor-^
in time.
''Repairjob envelops
inserts
leaks
start
can
stop them
I
whether
place where
up.
have
to
tant
I know
years,
supplies
accordingly
ammunition
on
for
mailings.
buyers to place orders unless the
and
ofiSce purchase requisitionis obtained
signed by
and
the merchandise
a
duplicate is left on file
man,
in the office. By
chandise
taking this precaution, the mer"I
do
not
man
allow
knows
at
all times
what
is
on
order
Figure 29:
above.
of
A
This
goods
from
page
book
keeps
hand
on
the
a
merchandise
department
INDIVIDUAL
^MtCalHvd
of the
rumiing record
in each
ledger is reproduced
stock
be
can
the
stock, and
glance.
at a
seen
amoimt
RECORD
STOCK
DwcriiMlon
Stock
DlMioml
Ifl
Petfaction
NumiMr
WboM
_
Color
rrr
RECORD
"
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MLLEirS NGfiEST
UTTIE
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.
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I
Figure
mounted
The
30:
diamcmds
handkerchiefs.
form
upper
The
sold
form
in
each
this
day.
just below
126
group
It
is a
might
supplies
a
I
I
J
l,4.itti
special record
as
III
lii
N^
Slwet
NOb
I
STORES
SiMkCwd
Slofv
a
I
I
easily be
check
on
for cdl
tools
or
repairs.
Figure
to
keep
a
dH
The
31:
purchase
of the
record
rate
of mark-up,
watching
Figure 32;
old f"MTn,
before
it became
it
was
"mark-up,"
changed
and
"%
into
three
marked,"
the
no
way
importanoe
great
of
apparent.
Thelargetpaceheaded"refaarka"
so
provided
above,
ledger, shown
was
headed
columns
in this
seldom
new
'
uaed
in the
'sellingprice,"
purchase
ledger.
LESS
128
"RED
TAPE"
ACCOUNTING
IN
and
tindelivered,
lihood
whether
there is a likeI, also,know
of overbuying.
"The
cashier also keeps a record of the probably due
dates of the invoices that will be rendered against these
orders
file.
In this way
liabilityis not assiuned
on
cashier, under
of what
only
to the
yet been
not
and
"The
with
the
that
due,
or
terms
result
is to
put
which
having
have
after discounts
issued.
records
such
in the
without
closest
I have
as
possible touch
seeing anything
I like to have
mean.
definite and
possibly
cannot
right
to
the
merchant
discovered
after
at
our
anything
my
records
point that
the
that he
his
a
was
jewelry store it
Ihies,as you can
the verge
on
of
situation
carefully he
changed his accounting sjrstem entirely.
His new
system is made
up of a journal,a cash book,
ledger,a department-'
a
pmrchase ledger, a customers'
stock ledger,a reduction
alized perpetual merchandise
mark-down
trolling
sheet, and a private ledger. A conor
remained
in the private
merchandise
account
by
ledger, its totals matching with the totals shown
failmre,and
the
more
In
stock
studying
"
I feel
me."
escape
Although this system is used in
be adapted very
easilyto other
can
readily see, by a few changes.
One
invoices
facts of my
business.
liable to look
merchants
are
we
records
clear and
facts
become
may
office also looks
The
me
really important, I
so
on
what
not
ing
accord-
really essential
sometimes
business
of
due
shortly become
file
The
intelligentidea,
an
all orders
on
month.
one
he also knows
on
that too much
sure
any
has
will
received.
net
described
plan,
orders
the
by
this
books, but
from
due
is
make
we
ledger.
He
also
divided
closelyby increasingthe
order
to
secure
stocks
a
bit
of
departments.
figures regularly, he
mmiber
mark-up
the
merely added three columns- to the sheets
ledger. There was a large colimm to
in the
the
chase
pur-
right of
LESS
130
''RED
TAPE"
IN
ACCOUNTING
these sheets headed "remarks."
This column
was
seldom used,so he justdivided it into three columns
headed "selling
price,"
"mark-up,"and "% marked,"
respectively.
The selling
entered in red ink. The result
are
prices
is like the usual bill register,
except that he uses a
for each line. The old form and the new
shown
in Figures31 and 32.
one
are
He also improvedhis forms for coveringa monthly
tabulation of expenses, a monthly departmentalprofitand-loss statement, and
annual
tabulation of
an
special
page
and
forms are
expenses
accounts.
profit-and-loss
shown
These
four
self-
in Figure 33. They are
sheet.
explanatory.Figure34 shows the mark-down
"These
exceedinglysimple changes," says this
new
facts to my
attention
merchant, "brought startling
almost automatically.For instance,
I found that I
for my
was
paying more
candy stocks than I was
gettingfor them. It took me months to adjust this
situation carelessweighing
the explana*
was
particular
remedied.
tion but it was
finally
"My new system has now been workingnearlyfive
"
"
that were
all the difficulties
drivingme to the wall. My sales were
relentlessly
$17,000the firstyear I used my new system, $20,000
and last year they crossed
the next, $37,000the third,
years.
It has
overcome
the $40,000mark."
The perpetual
inventorysheet which is shown in
Insert I was
devised by a largewholesale clothing
firm for retail clothing
mer*
stores, and progressive
chants are findingit an effective dailywatch on the
i
f
trend of their business.
there must
In order to keep this system accurately,
cash or
be a written record of every transaction,
credit,every day; the cost of every item must be
time as the selling
written down
at the same
priceThis
givesan
accurate
check.
I
SIMPLE
AND
EFFECTIVE
regularsales book
(Figure35),both ruled
A
and
a
RECORDS
"returned
for cost and
131
goods" ticket
also
selling
prices,
used in this system.
The perpetualinventorysheet,as you will notice,
is
ruled for five weeks and one extra day to provide for
axe
of 31 days, the first day of which falls on
Saturday,the last day on Monday. The columns are
numbered
and in describing
their use we
or
lettered,
a
month
will refer to each
Column
1
'*
"
by its number
Merchandise
letter.
or
on
hand"
"
ogivesthe
inventory,at cost,the firstday that the form is
exact
used.
This colujnn is not totaled.
Colunm
2
"
''New
goods added
to
stock"
"
covers
nothing but goods received from manufacturers.
If
merchandise
is retiuned immediately upon
its
before it is put into stock,the cost is deducted
receipt,
from the invoice and only the net amount
is entered.
the
is totaled every week and every month.
of goods returned during the day
total amount
This colunm
The
is inserted
by customers, figuredon the selling
price,
in column
3, and this column is totaled every week
and
every
month.
of merchandise
returned to
takes care
the makers after it has been put into stock.
Column
6 is totaled every week and every month,
and gives the total of the sales checks for the day,
Column
5
the seUing prices,after the amount
7 gives the
3 is deducted,and column
in
figuredon
column
total figured
on
cost
same
prices.
The gross profit the difference between the amounts
is recorded in colunm 8.
in columns 6 and 7
Colunm 9 "Percentage on sales" is figuredevery
"
"
"
"
and is found
day, week, and month without totaling,
by dividingcolxmm 8 by column 6. This column is
extremelyimportant and should be watched closely.
Often in
the
reason
j"
making comparisonsit is necessary to know
why sales increased or decreased from the
elgned by
an
usher"
No.
Figure
inventory
It is worth
returned
This
35:
sheet
shown
remembering,
merchants
have
goods
in
Insert
ticket
however*
that
stopped giving the
132
accompanies
The
I.
470
ticket
during the
returned
the
perpetual
is self-explanatory.
war
period
many
ff"
goods ''privilege.'
STOCK
TICKET
^
From
Whom
^^
^
Date
I Al
Cost
SellingPrice
vuM
""
I Quantity
ti"
^
Profit
y
P"r
CMit
Remarks
PURCHASING
TICKET
ArUele
By Whom
"^
Purchased
Di^
Quantity
Cost
M
f
Selling Price
Profit
*,
Per
Cent
570^
Remarks
PAID OUT TICKET
^
C/j^^ (^^,,^
ByWhom
Charge
\"
Expense
rf^Klifi^rfTrf^y.
Date
Amount
Artidea
OuAjl.
""0 ^
I
/Hf^^-/^'
LOSS
AND
CAM
TICKET
Artfel"
Quantity
jsf ^jUU^"-^^
c"w"
.
Regular Retail Price
Amount
Received
toss "r-CMii'
*
7^
Remarks
Figure
Stock
36:
jobber
or
purchase
"i
tickets
manufacturer.
made
'Loss
and
by
a
gain"
are
used
Purchase
salesman,
tickets
and
record
to
tickets
are
paid
out
help the
133
purchase
every
salesman
used
tickets
from
record
to
for
locate
every
payments.
losses.
a
LESS
134
"RED
TAPE"
IN
ACCOUNTING
corresponding day of the previous
supplies this information.
The
exact
from
taken
the
Column
a
sales
charge
and
in colunm
keeping this information
entered
are
sales in column
totaled
every
When
you
should
inserted
take
is
11.
the
day
week
on
and
to date.
up
month.
every
inventory,
equal "merchandise
sheet,but
is
day in column
13, and
every
of these columns
14.
Both
are
and
week
10
receivable
accounts
gives the total collections for
receivable,"and is totaled every
month,
Cash
books
total
12
accounts
every
of
amount
Column
year.
the
hand"
on
of
amount
as
shown
stock
on
the
shortage from goods which
have
of the store without
out
being paid for.
gone
Column
XX
of this shortage.
gives the exact amount
In the "slunmary, LL," only five items
of expense
are
given: "rent," "advertising,""general expense,"
"salaries,including owners'," and "freight and express."
"General
heat, light,
expense" includes
there
usually
a
insurance,interest,charity,taxes, deUveries,supplies,
of which
depreciation, bad debts, and so on, most
tabulated
are
separately in the cost-of-doingbusiness
tables given in the Appendix.
that all
using this inventory"sheet,
the same
for one
of the records
given on
day are
horizontal
greatly simpUfies the posting.
line,which
You
will note, in
merchants
Many
full year
The
have
are
averages
in reports
sent
Average percentage
Average percentage
Average percentage
Average percentage
give
business
these
this
installed it.
this system
for
showing their percentages.
29.1
of gross profit
of expense
of net
19.0
10.0
profit
3.3
of discount
net
profitplus discount
percentages
system
After
a
follows:
as
Average percentage of
We
used
have
who
the
has
to
show
been
details
to
are
13.1
what
those
worked
a
guide
who
out
to
have
in the
LESS
136
and
price
All
the
and
potato
and
rebates
a
second
year."
for
much
these
about
right
in
"
will
retailers
them
facts,
at
then
all
times.
and
it
^but,
unless
profits,
net
be
their
they
use
best
and
and
make
of
in
and
expense
system
gressive
Pro-
you.
to
systems
keep
the
use
accoimting
then
a
dollars
all
you
to
we
only
of
you
accounting
them,
$2,200
are
give
worthless
absolutely
use
year,
However,
may
losses
the
the
years,
and
hundreds
spend
down
cutting
your
devised
system
two
records
that
may
business
your
facts
mind
You
end.
the
increasing
the
in
last
the
accounting.
and
and
bookkeeper
the
first
the
recording
it.
during
$1,500
records
bear
an
getting
facts
sales
that
so
retail
the
at
''gain"
entering
methods
these
word
the
when
recorded
are
When
price.
gain,
a
and
figured
course,
cost
discounts
All
ledger.
the
through
mistake
our
to
the
at
recording
using
means
of
are,
barrels,
boxes,
gain.
gain.
a
as
of
gains
as
in
recorded
a
as
counted
drawn
always
must
counted
not
increased
So
ever
is
no
"By
in
and
line
a
make
the
sales
gains
when
we
the
column
gain
and
reverse
will
is
also
the
price,
loss,
price
is
are
Losses
selling
retail
from
sacks
to
"
IN
received
money
direct
new
ACCOUNTING
TAPE"
"RED
on
get
using
CHAPTER
HOW
ilAKE
TO
SURE
did
We
be
We
in
This
due
of
the
most
in
the
West.
*'To
mind,''
my
and
where
eliminated.
in
volxmie
house
in
profit.
merely
"But
am
I to
Profit
and
"
did
probably
country
This
would
guessed
at
just what
know
is not
for
only
been
push
knowing
just
be
must
changing.
week.
next
shrinkage
a
business
every
showed
one
merchants
true
almost
is
satisfactory
a
had
possible
we
facts."
am
soimd
what
a
a
salary
example,
he
can
had
we
long
so
condition
a
by
be
not
have
profit
interest
to
are
not
constantly
still
not
lines
we
today
''we
when
^we
"
times
Guesswork
may
year,
the
it is not
would,
^as
keen
of the
clothing
apart
are
last
this
During
But
time.
the
such
now
if
bankruptcy,
Unes
all
with.
which
who
man
continues,
yesterday
true
a
costs.
Conditions
was
*'
he
deal
expense
apart
small-store
expense
stand
we
profit and
by
with
successful
tendency
Years
longer."
made
fast-rising
to
sales,
them
much
face
to
to
profit
What
push
was
face
mainly
the
must
very
costs
conditions
The
pulling the
statement
was
ago
other
DAY
evolution.
an
rising
of
business
EVERY
mark-down
many
one
together.
live
have
profit margin.
our
to
seems
have
not
not
and
competition,
decrease
did
PROFIT
undergoing
RETAILING
we
A
OF
is
back
XII
on
be
I
entitled
profit
paid
for
you
managing
investment.
correctly
137
is?"
to,
These
classified
and
how
ask.
a
business,
items
two
if
a
man
LESS
138
managed
"RED
TAPE"
for
store
a
in stocks
money
would
another
and
bonds
fellow under
other
The
be
getting
ACCOUNTING
IN
instead
these
invested
or
man,
of in
his
business.
a
circumstances,however,
profit the owner's return for the
risk he takes for being in business as an owner.
The
realizes that a profitof this sort
successful merchant
is due
him, and he stands
steadfastly for it, in
up
spite of temptation to cut prices.
Investigation revealed that a majority of retailers
a
"
"
in all lines
unfair
are
themselves
to
figuringcosts and profits. Many
business
their
their
own
stocl^.
few
But
for
all of these
be added
to the expense
mark-up
for
of
are
charge
fixtures
to
comes
fail to
charge
Others
themselves
their
on
and
true items
in order
it
themselves.
charge ofif interest
depreciation
or
of them
buildings and
store
Very
rent.
salaries
with
when
no
ment,
invest-
shrinkage
of cost and
to arrive at
of
must
profitable
a
them.
sells women's
clothingreported that
his yearly sales were
$100,000 and his cost of doing
His store is located in a live Uttle city
business 18%.
in the 25,000 population class and not over
100 miles
from a largecity. Competition also is very keen there.
The
that the merchant
was
investigatorfelt sure
of doing business
he claimed
low when
of only
a cost
bit further.
So he questioned him
He
then
18%.
a
One
dealer
discovered
who
the dealer
figurein any salaries
for himself and his three daughters, although his daughters
Moreover, he did not
helped greatly in his store.
that
did not
charge interest on the money
business,or depreciationon old
When
the
among
and
that
would
has
stock
others
admit
the
his costs
he
is
invested
and
investigator remarked
charge these items
several
he
store
that
of
he
in the
fixtures.
should
doing business,
overlooking,the retailer
point.
he said, "I'd only be transferringmoney
"Why,"
from one pocket to the other, and that's a fool's game."
not
PercentagesBased on Total Net Sales. Gross Marknjp,
Costs, and Net Profit AveraKOfor Each Une
Operation
"2%
Figure
aod
tbe
net
This
37:
chart
profitsin
Mnollett
net
Note
showi
11 retail
lines.
profit*,but
the
high
net
the
these
gross
marlc-up,
Department
two
lines
costof
stores
have
high
profits for clothing and
139
dcnngbusineM,
and
BTOcerief show
rates
of tumovtr.
hardware.
"RED
LESS
140
And
TAPE"
retailer could
that
ACCOUNTING
IN
not
and
would
not
that
see
of
from
transferringmoney
other
one
pocket to anbe transferringit from
he would
the wrong
side
balance,
of the profitand loss accoimt
to his bank
^e
could not understand, either,that when
he failed to
charge up these legitimate costs of conducting his store,
all of his competitors lost money,
too, if they met his
he setting the skids for an
old
prices. Not only was
the income
he deserved, but he was
forcing
age without
of his competitors.
that impleasant fate upon
some
mstead
'
has
Price-cutting always
and
the
been
considered
in his fight with keen
best weapon
perhaps it always will be. If you are
of "overhead"
comers
buyer and
expenses,
your
PROBLEMS
WHICH
ARE
RETAILER
EVERY
ANSWERED
able
if you
are
therefore
HAS
TO
chant's
mer-
competition,
discounts,and
to take a lower mark-up without
losingyour
most
certainlyhave the right to give your
the benefit of your
good management.
take
a
to cut
a
good
are
able
profit,you
customers
MEET
HERE
But
always there is the danger of cutting prices to
meet
competition without
reducing the costs at the
time, and thus lowering your net profit. The
same
who
does
have
this, although he may
man
a
good
volume
of sales,usually will lose in the end.
There is only one
to know
just how far you can
way
retailer.
"You
must
cut yoiur prices," declares one
"
know
and
to
the
Knowing
amoimt
a
penny
exact
amoimt
these
for
how
the
much
of
facts,you
it costs
profit you
can
to
sell
must
easilyarrive
an
article
make
at
the
on
it.
right
mark-up."
Investigation indicates that a heavy percentage of
retailers are
not
figuring their mark-up correctly.
They often are using the buying price as a basis for
and the selling
Either
one
calculation,
pricefor others.
the buying or sellingprices may
be used, if the one
"t"/
"""
""
.4^
B""4l(t
"
10 1112
17 ItlfllO
IS 14 isie
21 22 23 24 2S
7;?
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hand
OR
SibflMtiDttiCraiMi
2T 282930
n
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21
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ffla
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^
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iimL
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if
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12.
fo_
2^
JSl
4/^53^6
M.^
m.
tLt
z?^ 1^
$
J
l"^k
Pr""fi^Record
ot-
Sales
Costs
i
U
"I!L'A
L
"^M
m
n
illk
"^
Mon+h
^)^/
l"
%
Profile,
/Sf
I
29
7 '^^7
N"+
i
111
i
/^9
k2JL
k
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DisLOuur
P*-otitPlu^
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L
Prof if""flts ExP.
Discount
^alJ
/aSlf
a Cc
3or
2^
fc
M^
n
tt
3^
ii
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51
i
Z^
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yfyf.^i^
j"ii
UL
/
Figure
38:
order
keeps them
retailer
draws
In
up
have
to
on
cards
charts, like the
one
records
his
of
a
handy
convenient
a
size.
in Figure
shown
these, profit leaks
in
have
141
small
From
39.
chance.
form,
these
V^th
cards
records
one
he
like
142
LESS
chosen
is used
"RED
TAPE"
ACCOUNTING
IN
consistently. However,
think
of expenses
So, if the expenses
as
a
certain
merchants
most
of their sales.
percentage
expressed in percentages of sales,
it is necessary
the sellingprice,and not the cost
to use
price,in figuringthe percentage of profit.
For example, suppose
whose
ness
doing-busia merchant
of his sales,desires a net profitequal
costs are 25%
of his sales.
to 10%
to find the
Suppose he wants
sellingprice of an article which cost him $1.30. He
knows
that the sellingprice represents all,or 100% of
his income, and
since the cost of doing business and
the desired net profit amoimt
of this, the
to 35%
of the article,
be nothing
which
is $1.30, can
cost
less than 65%
of the desired
more
or
sellingprice.
If $1.30 is 65% of the sellingprice, then
1% is 1-65
of $1.30 or $0.02, and
$2"
or
100% is 100x$0.02,
the correct
it may
selling price. In this connection
be well to remember
of 50%
the
that a mark-up
on
on
buying price is only equal to a 33"^% mark-up
the
are
sellingprice.
Mark-downs
always
almost
are
"evils'' ; yet it is often
with care, to learn lessons
necessary,
them
avoid
to
one
costly mistakes
in the
if
unpleasant, even
by studying
possible,
which
help you
may
future.
Here's
merchandisHig expert says about them:
"I've always found it extremely important
what
to record
record
mark-down, and to study the mark-down
before making further purchases. When
I know
how
every
times
many
lines,we
"A
we
have
marked
down
stop buying those that
careful
analysisof
goods
are
not
in the different
profitable.
reveals
the mark-downs
It may
show, for instance, that we
down
and then another
because
first one
secrets.
mark
competitors offered the
so we
probably paid too
we
may
discover
been
that
a
same
much
house
is
profitable,
now
many
had
of
lower
to
our
prices
in the first place. Again,
tofore
whose
goods have heregoods
at
causing
us
a
"
loss.
On
"RED
LESS
144
lines,we
some
been
merchandise
better
been
specializingon
^mark-downs,
several
goods
to
soiled.
were
favor
in
of
that's
that
if
of course,
mark-downs,
the
the
chase
pur-
losses.
stores
some
and
amoimt
down
and
carefullystudying
usually
their
dends.
divi-
unavoidable
are
^but the number
by writing
And
mean
further
prevent
have
protecting
may
experience
my
mark-downs
style lines could prevent most of
doubt
no
they could double their
Some
"
ACCOUNTING
^perhaps it
"
glass cases
has
"It
the
good argument
a
of
IN
find that
may
because
taken
usually
TAPE!'
can
be reduced
the
reasons
for
reducing prices.
"Before
going into the market
record
the
of mark-downs
shows
to
buy,
us
what
of
study
a
lines have
This analysis proves
frequently reduced.
or
pretty clearly,other points being equal, whether
been
most
the
not
workmanship
lines
certain
on
was
wrong,
or
it is a tremendous
too high, and
prices were
help in buying our next stock.''
Occasionally,too, we find a retailer using a mark-up
This
is too high.
mistake
which
usually is just as
is usually found
disastrous
the low mark-up, and
as
whether
where
the
should
mark-up
does
merchant
HERE
IS
A
MARK-UP
PLAN
WHICH
GROSS
the
He
would
talked
have
as
a
result:
branded
a
OVER
his
time.
on
he
ONE
3%
losing trade
was
a
merchants
problems
same
says
to
INCREASED
PROFIT
retailer,for example,
costs
rising at the same
were
locate the trouble, so he went
One
had
exactly what
be.
MERCHANT'S
and
know
not
He
short
could
tour
in other
and
his
not
of investigation
towns
who
my
trip I
my
up
mark-
faced.
"Before
I went
suggestion that
on
I cut
held out for
have
I would
absolutely absurd.
by marking up more, not for getting more
gettingmore
by marking less. But the retailers I visited quickly
as
MAKING
convinced
SURE
that
me
PROFITS
OF
I
had
to
the
been
146
making
ingly
exceed-
an
costly mistake.
awoke
"They
me
fact that
1
was
getting
not
satisfactorynet profitbecause I had marked
up
I
was
goods so high that
losing trade.
They
convinced
I was
that
me
practically without
a
my
also
any
control.
merchandise
mapped out in detail
before I returned
to the store was
simply a set system
for merchandise
control.
It provided, first,that I
take only a sufficient mark-up and hold to it;second,
would
that I establish
standard
figiu*eswhich
point
I could safelyinvest in each line;third,
much
out how
that I spread my
purchases under these figuresso as
stocks always fresh.
to keep my
"I was
the only remedy
convinced
that this plan was
difiiculties.
Later
for my
events
proved that this
"Therefore,
conclusion
"
On
was
way
my
the
plan
I had
correct.
the
to the store
I got back
day
I looked
in at several
Goods
that
competitors' estabUshments.
I would
at $1, I saw
probably have marked
sellingin
Under
these conditions,
competitors' stores for 85 cents.
I finallywould
be forced
I knew
to mark
below
down
85 cents
^not to meet
competition, but
"
get rid of the goods.
to
"The
from
competitors
my
that
trade, of
of the
cream
figure in order
at
to
85
course,
I cut
When
cents.
itself
below
of
of volume
sort
get any
supplied
sales,
to lay in a surplus stock
customers
simply induced
attractive to them, but
at the prices I offered
^prices
with
ruinous
Provided
the surplus goods,
to
me.
I
"
these
customers
then
periods. This condition
dwindling profits.
"As
soon
the retail
and
then
as
I reached
pricesbe
tabulated
marked
so
of the market
out
were
the
was
the
on
explanation of
I gave
the invoices
store
that I would
for abnormal
have
orders
for
a
my
that
month
the percentage
"RED
LESS
146
of
the
knew
by
the
of
mark-downs
only
^I
"
bills
The
costs.
had
office
ACCOUNTING
record
no
origmal
and
me
had
I
mark-up.
IN
TAPE"
of
record
no
the
K.'d
O.
merely
were
of
percentage
mark-ups.
'T
hfid
credit
expected
the
a
handed
figures
of
mark-up
average
And
groceries.
"I
was
now
before
in
my
the
and
including
applied
that
the
33^^%.
of
my
average
It
between
nmning
an
gross!
ordered
vicinity
was
gross
stocks,
groimd
I
hardly
showed
24%
only
my
hesitation.
held
be
mark-up
of
all
on
making
was
could
They
me.
42%
over
sure
without
remedy
long
I
to
I
but
showmg,
poor
not
was
and
27.5%
27.8%."
have
Costs
become
necessity
in
leaks,
order
successful
the
total,
And
of
the
wherewithal
costs.
is
^for
"
course,
profit
for
in
keep
merchant
cheapest
keep
the
the
margin,
keeping
up
we
with
from
the
all
and
expense
profit
ahead
most
business
the
know,
an
profit
The
do
can
bit
widening
as
all.
at
who
a
for
watch
race
one
oflf
cutting
means
close
it
found
have
a
has
competition
merchants
to
to
and
rapidly
so
that
keen
so
absolute
risen
margm.
suppUes
of
the
higher
CHAPTER
WAYS
TURN
TO
THERE
Only
of
remaining
With
such
his
exact
his
How
the
can
rate
indicates
before
for
take
tiunover
the
in two
without
stock
average
and,
tigation
Inves-
obtained
be
can
the
how
(2) by
increasing
the
increasing
stock
at
and
stock
on
hand
the
at
cost
stock
or
dise
merchanif
merchandise
or
sales
at
the
prices
into
average
retail, or
total
the
they
rate
result, dividing the
same
cost
sales,
results
only by dividing
the
secured
the
into
be
turnover
are
confusion
Stock
selling prices into
give practically
of
rate
turnover
true
much
secured
the
at
not
are
such.
be
of
rates
it will
methods,
two
figure
to
average
as
can
these
up
of turnover,
of turnover
stock
of
increased?
proportionately
Sometimes
considered
cost
this result
results, however,
rates
will
be
voliune;
know
to
us
dividing
are
of tiunover
know
man
ra^te
the
in
one
business
every
his
without
we
correctly.
lliese
smaller
stock.
average
by
of
staring
rate
profit, and
that
sales voliune
well
death
sales
the
decreasing
But
the
so
concerns,
failures
year.
retailers.
decreasing
(1) by
ways:
the
last
times?
all
at
indicate
business
costs,
failures
large
were
logical,isn't it, that
is
face, it
these
of them
a
FASTER
business
20,000
many
STOCK
YOUR
22,000
were
2,000
businesses,
Xm
what
age
aver-
sales
at
prices.
Figures
prices
into
secured
sales
by
at
dividing
retail
might
147
average
be
stocks
called
at
capital
cost
rate
148
"RED
LESS
of turnover
they
he
stock
not
are
secured
has
the added
of turnover,
of tiunover.
rates
and
tiunover
profitwhich
gains climb
net
capitalrates
figures for
cost
difficult for the retailer to demonstrate
his store, it is not
The
ACCOUNTING
IN
figuresor merchandise
but
Once
TAPE"
when
the
will
turn
extra
an
bring.
are
cut, the
expenses
owing from customers
increased, the totals
reduced, or the gross profitslengthened. As soon
as
largerstocks accumulate, customers
neglect to pay, or
increase,the net profitsdwindle, and the merchant
expenses
turnovers
is headed
To
show
so
these
balances
reach
$90,000
Then, if
days'
average
many
a
your
or
year,
is
$250
the total due
only
and
sales.
stock
average
days' sales,and
to ruin.
conditions, it
the customers'
express
to
the road
on
necessary
the stocks
Your
equal
as
sales,at cost,
day, let
a
to
us
suppose.
costs
$7,500, it equals 30
from
customers, 15 days',
Also, if your gross profitis 25%
and your cost of doing business 20%, the net profitfor
these two
the period will equal the difference between
of the stock and the
percentages, divided by the sum
customers'
plied
accounts
due, expressed in days, and multiby 360.
Or, in figures:
if we
Net
take
it as $3,750.
profiton
your
capitalfor the
year
"
"
r;"
r
X360,
"
40%.
oO+lo
If the
turnover
stock
is increased
lessens,and
to
the net
a
days' supply, the
60
profitat
falls:
once
25-20
Net
profiton
3roiir
capitalfor the
year
X360|
".,
or
24%
,,
00-|-lO
if you
buy closer and push the goods on the
shelves down
turnover
to a 15 days' stock, the increased
But
carries the net
profitupward
:
25"20
Net
profiton
your
capitalfor the
year
=-7-"
10
-z
+10
x360,
or
60%.
FASTER
STOCK
TURNS
14"
Although these relations of profitsto turnovers
are
of
conditions
the number
universal, individual
vary
The standard
stores and lines.
turns secured in specific
given in this chapter therefore requires modification
local influences
when
in
unusual.
are
The
large department store and
general store will,of course, differ.
in
a
In
order
watch
that
small
a
with
turnover
retailers agree
accuracy,
have
to
the store
obtained
turns
any
country
of
degree
concerned
must
like those we
one
perpetual inventory system
tory,
Without
have previouslydiscussed.
a perpetual invenit normally is almost
impossible for a merchant
a
"
to know
how
fast his stocks
slow-moving lines,and
THSBB
METHODS
SHOW
OFTEN
The
first method
hand
without
carries too
found;
HOW
CAN
BE
turning, which
much
THE
he
RATE
much
TURNOVER
OF
INCREASED
of
for its voliune
stock
the
are
safely buy.
can
increasingthe rate
is by decreasing the amount
decreasingthe sales. Almost
laid down
we
how
are
of
of turnover
of stock
every
on
store
sales,it
was
After
studying his inventory and stock records,
the merchant
usually can easilylocate the fast-turning
lines and
''stickers.'^ Then
the
he
can
push the
the dow
quickly tiuming lines,and discontinue
ones
far as possible.
as
''We were
dise,''
merchancarrying altogether too much
clothier.
I had records of the departments'
says one
I fixed buying
sales. With
these before
me
tion
quotas for each department, after taking into considerathe stock on
hand.
the
Gradually I cut down
authority to buy, and thus eliminated the danger of
''
*
too many
''The
could
on
cooks.'
salesmen
saw
get along all right and
"
less stock.
that
soon
many
for themselves
I also discovered
lines
were
do
more
from
my
even
lying idle.
I
that
they
business
stock
"
cards
investigated and
"RED
LESS
150
found
that
them.
there
Some
from
the
was
field of
IN
ACCOUNTING
demand
longer a
no
women's
department
for
goods, for example, had
the
clothing
passed
that
to
store
of
some
of
the
store.
"Discretion
valor.
TAPE"
here
the better
certainly was
not paying their way
were
lines
These
of
part
we
so
"
dropped them flat. After analyzing my stock cards
overloaded
more
on
closely,I decided that we were
the better grades of suits. I pointed out to the salesmen
the advantages of sellingthese grades quickly more
profits for the store, larger sales for them, greater
"
for the
satisfaction
"I
put
salesmen
our
Another
stock
$15
or
'walked'
$20 suit
a
still higher
a
a
he
that
out.
overcoat,
or
$25 grade,
quality and
discovered
merchant
much
too
of
one
a
man
simply
smts
marked
overcoat
or
their efforts to sell him
bent
perhaps
or
Those
sellinga
suit
each
on
$25.
of
Instead
bonus
a
above
at
customer.
price."
carrying
was
for the
in his suit department
sales it
brought in. His suits were
priced at $12.50, $13.50,
$15, $16.50, $18, $20, $22.50, $23.50 and $25" nine
^and when
prices
"
by prices,he foimd
years
obtained
at foiur
made
That
nine
reduce
it clear that
his stocks
was
in the bank.
a
all sales had
if he
When
and
been
$25.
all of the
eliminated
four, he could put a larger
live pricesand at the same
time
did that
He
35% to 40%.
from
"
and
faster rate of tmnover
longer obliged
no
ahnost
these
into the iour
the result
that
the sales for three
prices" $12.50, $15, $20,
prices,except
selection
tabulated
had
he
the end
to close out
of the
at
a
season
"
he
comes
loss the slow
$13.50, $16.50, $18, $22.50, and
vital
always a big and
Buying
the
money
more
$23.50
problem
is
movers,
lines.
"
^is
so
of stock that it is
closelyassociated with turnovers
As
ahnost
impossible to separate them in discussion.
a
general rule, if your buying is right your rate of
turnover
will be
right.
162
LESS
store's
common
accordingly.
that
carry
owns
a
to
from
that
and
tastes
the
high-grade
buy
high-
a
stock.
vehicle and
prosperous
in
staple lines.
line confine
my
I decided
make
not
that
of
the most
the first I made
a
chant
mer-
must
ment
imple-
I
investigationwhich
business
for myself convinced
file of retailers do
"So,
agreed
"The
says:
merchants
much
too
must
going into
many
It is
instance, if he is located in
who
store
before
he
ACCOUNTING
his customers'
For
class section
man
IN
demands.
know
must
One
TAPE"
"RED
made
me
themselves
the rank
and
specialties.
drive both
to carry
full
push specialties.I had a favorable
I
location
and
12-foot
two
plate glass windows.
in carrying out the
these windows
to use
determined
different manufacturers'
advertisingplans.
lines and
also
to
LIKE
PLANS
ARE
THESE
VALUABLE
LINES.
PROFITABLE
LOCATINO
IN
YOU'LL
AGREE
to hang in the writing room
of
''My initial step was
the local hotel a glass sign that read :
Vehicle
Bamlene
and
'The
Implement
Company
Main
at 241
is located
Street, and carries stocks of
acessories,electrical goods, and
hardware, automobile
lines.
It will be pleased to have
kindred
traveling
but
call.
We
caimot
buy from
men
we
everyone,
and yoiur lines caretreatment
will give you
courteous
ful
''
attention
time
every
call.'
you
of us
"My experience on the road told me that many
miss promising new
lines,good ideas,soimd suggestions,
and attractive bargains by not going a littlemore
than
half way
to make
when
a
dealing with
wide-awake
road
man
transfer
along his
good ideas he encoimters
up the sign in order to get
"The
traveling men.
It is easy
all the
to you
route.
^So I put
share.
my
I stocked
first specialtiesthat
electrical
supplies.
I decided
to
meet
There
it and
was
to
go
local
it
one
heavily were
competition, but
better.
I did.
-
STOCK
FASTER
"At
the time
about
I
TURNS
opened
153
turer
store, the manufac-
my
line of electric flashnationally advertised
work
hard
into starting his
lights was
putting some
product. The line had a utiUty appeal and looked good
local competition offered only about
to me.
The
two
of
a
sizes of flashes and
"I
took
knew
an
the
extent
"Now
small
very
him
to send
reach
dressingand
that
so
fresh
a
I
Saturday morning.
every
me
He
with
cooperates
I
advertising.
line in my
entirelyceased, and
as
has
batteries
me
danger of overstocking on batteries to such
that they grow old and fail to give service.
I annually buy about $300 worth of this manufacturer's
line.
attention
of batteries.
stock
by this manufacturer, and
size made
every
arranged with
supply would
a
any
window
on
me
give this specialty as much
local competistore.
The
tion
my
is
of turnover
rate
a
rapid one."
have
"I
policieswhich
three
have
made
my
stocks'
faster," reports a progressive jeweler. "They
(1) locating and pushing the fast-turning lines;
are:
(2) holding down
stocks; and, (3) cooperating with
turn
competitors.
my
"First, then,
come
fast-turninglines
to
ways
in order
to
put yoiur
pu^
them.
in most^ there are
certain staples
carried almost
at a loss.
My diamonds
as
in
a
correspond
way
to
the
finger on
the
In my
stocks
which
be
must
and
grocer's sugar.
silverware
Stocks
of
this type usually are a necessary
evil and the best that
be done is to keep them
turning as fast as possible.
can
"But
"
I
this necessary
evil
compensations accompany
lines.
The
^fast-turning
problem is to locate them.
do this by keeping a sort of perpetual inventory in
each
on
drawer
stock
which
are
or
marked
the
additional
purchases, and
"The
of these
value
probably kept by
These
case.
are
initial stocks
the
simple cards
on
hand,
the
sales.
types of inventories,which
all retailers in
some
shape
or
are
other^
"RED
LESS
164
TAPE"
abnost
depends
IN
the
entirely on
be instrumental
ACCOUNTING
made
use
of
them.
giving you what amoimts
to a scientific merchandising plan, and
they may
stop
at merely showing you that it is time to send in another
order for goods.
*'When
much
to the
carefullystudied they mean
as
They
may
of
welfare
business
a
patient.
each
week.
been
possibleto
do biisiness without
Sometimes
to
it
usually means
earnings normally
effort and
hard
that
speed
effort to
earnest
is not
experience that
not
it is
fast-turning stock
a
profits. And
are
without
bread
be made
to
and
without
work.
condition
''One
will show
.
But
attractive
more
poppycock
reduction
from
it soimds.
it
habit.
a
I know
how
see
all
seems
rapid-tiuning stock
a
as
easy
butter
have
few of the orders
a
experimental
obstacles,however.
as
a
two
or
it would
little less and
a
when
stocks,an
road
''The
not
with
overstocking has become
that
hour
an
not
or
to
mean
show.
out.
reduce
to
for
them
whether
*'Try getting along
works
with
Consider
cards
these
temperatinre charts
as
Sit down
fever
in
is the consumer's
always threatens
the
up
to
swamp
of stock
niunber
turns
desire for
larger selections and greater
Possibly this is partiallythe fault of the
price ranges.
more
distributors,since they have offered the consumer
and
each
more
hand
whip
over
competition
whatever
And,
us.
has
the
had
the
cause,
the
once
set
still exists.
condition
"It
But
year.
what
is remarkable
ourselves
to
do
only $5,000
yearly sales are
was
it.
Six
less than
can
years
my
be
ago
annual
done
my
we
average
sales.
$17,000 ahead
about
if
stock
Today
of my
my
average
stock.
is
"I
have
no
secret
did
it.
increased
about
I located
There
25%.
^I have
described exactly how I
fast-turninglines by studying
my
it
"
the
turnover
rate
FASTER
simplest
the
forcing
^'It
and
fast
the
lines
faster
bank
back
12
"Today
When
buy
if
idea.
as
long
at
as
you
less
In
for
those
from
averaged
to
doubled.
12%
their
And
of
rates
prices
of
profit,
little
the
profit received
the
tiunover.
merchants
fixed,
margins
this
retailers
loss
the
rapidly,
profits
is better
cover
your
to
for
rising
him
costs.''
get
costs,
merchant
the
fast
work
answer
discover
will
today.
acciu^tely
more
small
at
doubt
And
10%.
money
the
no
profits
but
profits
from
fewer
margins.
sales
It
fast
the
wholesaler
paying
narrower
on
exceed
even
wider
"Quick
only
the
you
or
selling
turned
is
or
with
turns
which
line
taken
that
years
business
with
sell
and
equal
may
15
increase
they
rise
stock
the
a
balances.
pretty
unless
costs
must
reducing
is when
faster
practically
are
measures
take
must
and
or
doing
costs
difference
then
rule.
a
as
of
have
It
you.
are
you
of
cost
and
find
you
it, you
manufactiu-er
than
15%
to
over
the
merchandise
the
to
attractive
paid
you
days
over
if
push
to
rolling
"Looking
that
neglect
open
into
inventories
possibility
that
saying
opportimity
go
increase
the
155
out.
without
goes
turns
filled
I
TURNS
perpetual
consider
to
order
half
simple
of
myself
every
STOCK
who
has
"
is
^that
three
than
is
f oimd
sales
5%
at
it is
to
able
to
a
modem
the
make
make
large
part
net,
one
his
of
APPENDIX
TO
HELP
WITHOUT
is like
captain
Without
able
attain
longitude,
his
to
like
but
is imable
will
you
business
of
they
been
attained
latitude
shortest
and
course
to
because
you,
influences
this
Publications
that
the
find
them
been
economic
this
figures
as
will
good
the
the
occur
radical
Great
questions
any
from
Standards
War.
you
may
changes
remain
now
the
figures.
Biureau
has
and
indicative
when
as
Bureau
they
would
studies.
its current
"""
XUl
the
the
on
the
Shaw
the
of
watching
constantly
observation,
useful
Otherwise
figures
answer
after
of
question
mind
in
and
Business
of
has
current
of
to
hold
abnormal
by
the
figures
point.
Bureau
The
aflfected
have
prices during
is inserted
These
naturally
will
you
p'ages
cost-of-doing-
concerns.
nevertheless
they
not
on
note
on
and
following
form, the
period
a
course,
or
new
have
his
the
on
concrete
during
whether
result
given
is
figures of 1,219 retail
changes,
of
ship
a
longitude.
men
the
out
costs,
like
his
which
has
find
is
not
by
who
to
find, in
collected
have
methods
captain
a
information
where
This
the
he
other
costs
his latitude.
men's
other
but
man
destination.
This
were
own,
the
find
to
of his
of
^and
"
is
he
them,
unable
latitude
business
the
of
his
COSTS
costs
knowledge
costs
idea
some
to
has
knows
who
of
sort
some
some
he
though
RISING
ship captain
a
Without
even
FIGHT
YOU
that
were
have
effect
As
a
decided
you
will
first
lected.
col-
supplied
APPENDIX
of the
percentages
as
store
at
which
as
it costs
usual
run
As
business
is
Here
has
Biureau
expressed
been
been
The
Graduate
recently announced
current
placed
another
place
page,
it at
remained
the
are
costs
more
merely
"
the
hidden
On
them.
you
costs
your
you
at
retail.
sales.
this
On
book
percentages
have
the
costs
actual
no
page
other
In
now
is
figured
words,
^it will
"
and
increases
xxiv
The
more.
percentages
w:ant
cost
a
a
blank
on
explanation
the sales
this book
help
you
suggest ways
form
which
is
cloak
should
be
ferret out
to
meet
will
Bear
in mind
costs.
figuring yoiur own
affected by ciurent
conditions, and
are
calculations accordingly.
in
It
cost
^much
sell
to
the higher costs.
just what
of the Harvard
percentages in this book
that rising
to conclude
reason
problem. Of course, it really
the
longer
no
that
while
lected.
col-
were
investigationinto
an
the
cost
them.
indicative, is
costs
see,
same
because
course,
remain
the
You
20.4%.
\mder
of
these
20.6% of the
the figures in
at
find
will
you
about
changed
Of
cost
common
the
Administration
selling hardware
of
of
accurate
they
Research
Business
results
the
cost
the
of
School
that
for which
of Business
Bureau
how
indicates
purpose
in the cost
indeed.
in its conclusion
the
figuresstill serve
which
in
stores
percentages
as
small
very
instance
an
50,000, increases
to
about
certain
a
"general"
or
So,
of cost
held
of
of fact, in stores
30,000
stores' sales have
the
sales),have
particularlydepartment
doing
the
of the
matter
a
cities of around
of
in
be sold.
must
store, the percentages
a
(expressedas percentages
tyP^i
increases
recent
articles in stock
to
more
same.
The
expressed
accompanied by greatly increased
least springing from
the higher prices
at
the
sales.
figuresare
been
have
costs
sales,in part
the
the cost
explanation is that
The
help
that
make
APPENDIX
In
of grooeriee
of the expeDasB
to Oregon
York
New
from
Attered
bneiiieae.
cost of ddng
fixed this average
trade
drawing
that
groceries
Note
(1)
small
or
either
with
ciwtomere
from
not included; (2) that,
are
largeincomes
mark-up is 19.91% of
since the average
of
are
the turnovers
prices*
the selling
low net
a
and
carry
AnalyiM
_
expenses
the rent.
Salaries
Advertising
Rent
Salaries
Advertising
Heat and light
Delivery
Supplies
and
General
expenaoB
taxes
Depreciationand shrinkage
percentage
Total
It
is
natural
h"w"iing for
cash
modest
fix
from
an
dkould
14.8 %r-*-below
a
figures from
type of grocery.
that
a
incomes,
Total
drawn
investigation
"
Heat
and
Insiuanoe
General
taxes.
O.Syo
Depreciation and
shrinkage
21.62
43.25
21.62
or
Bad
or
0.2
0.4
or
0.2^0
86.50
or
0.8%
$1,567.73
or
14.5%
.
Depreciation and
shrinkage
Bad debts
Total
expense
HARDWARE
or
or
General
light
Delivery
Supplies
and taxes.
Insurance
General
expenses
Depreciation and shrinkage
Bad
percentage of
16.4%
or
STORE
264
864
2.5"
8.3"
0.2*
0.8*
w
or
24
or
78
120
or
36
32
or
or
0.3%
0.3%
60
60
or
0.6%
or
0.6%
1.2%
or
$1,538
or
14.8%
STORE
HARDWARE
6,000, a
oi about
In an
a
sales of $45,000
with
store
hardware
are
whidi
these
expenses,
pays
year
(1) that
Note
standard.
close to the
of the
sons
because
excessive
salaries are
abnormal
at
in the store
work
owners
that the losses from bad debts
(2)
unusually
town
wages;
are
high.
Rent
Salaries
Advertising
andlight
Delivery
Supplies
Heat
and taxes.
Insurance
General
expenses.
Depreciation and
.
shrinkage
Bad
debts
.
.
2.9"
$1,306.61
6,042.35
or
405.20
225.10
270.13
180.08
495.23
360.17
or
0.9*
or
0.5{
or
or
or
11.2^
0.6"
0.4*
or
1.1^
or
0.8Vo
.
225.10
180.06
or
0.5"
or
0.4%
......
0.3yo
debts
Total
...
expense
Indiana
10.1
1.1
0.4
0.9
0.6
0.1
2.0
0.5
Advertising
and
0.3^
or
,
AVERAGE
AN
3.4%
Rent
Salaries
taxes.
expenses
debts
Total
COSTS
STORE
and
Insurance
of retailing
cost
This is the standard
fixed by analyses
as
in America
hardware
in Canada
and, the
of tsrpical stores
business
the
that
Note
States.
United
not
does
takes
healthy net profits but
handling
sales as stores
as
many
secure
costs.
average
involving lower
lines
tion
concentraoften
l^at
indicate
Reports
profitable repairs results in dingy
on
selling fioors and lost sales.
hardware
Heat
0.3Vo
Advertising
and light
Heat
Delivery
Supplies
or
expenses
0.6"
or
$
or
Delivery
Supplies
or
Salaries
21.62
82.44
291.92
1,048.76
andHisht
301.27
150.63
or
GROCERY
AVERAGE
2.7
9.7
0.2
Advertising
0.4*
0.3"
0.5
1.9
$8,834.68
expense
Rent
debts; (2)
rented.
S
or
or
siq;"plycosts.
average.
Rent
Salaries
0.7"
or
store
Ohio
from
an
These
figure
of a
sales volume
annual
has an
which
rate of
$10,000. The average
little over
no
tbat there are
Note
is 8.
turnover
These
ei^ store represent this
Note
(1) that there is
bad
loss from
or
delivery expense
ever,
that a good location is. how-
no
or
are
grooeriea
trade
percentage
eq}en8e
the
351.48
251.05
954.01
150.63
200.84
160.63
and
BaddebU
AN
among
only
taxes..
expenses...,
Depredation
shrinkage
GROCERY
CASH
and
Insurance
17.91%
SMALL
8.1^
to
of expense
sales
A
Delivery
Siq"plie8
General
3.3"
or
0.47Vo
debts
Bad
fiiBht
and
Heat
or
$2,256.95
4,067.09
Rent
8.07
8.46
0.83
0.39
2.63
0.37
0.58
0.45
0.76
43,OO0L
sales oi
the
to
dose
an
expense
Note
(1) ttiat advertising costs
in other lines : (2) that delivery
much
as
as
to almost
amount
average.
less than
necessity rapid
profit.
Insmanoe
annual
handles
this grocery
at
$50,000
of
town
middle-'westem
a
STORE
GROCERY
AVERAGE
AN
COSTS
STORE
GROCERY
expense
to
10-4^
xvi
Total
expense
$8,689.06
or
19.
HELP
TO
CLOTHINO
STORE
COSTS
FIGHT
AN
OOSTS
of aeiUng clothes at
States
set by
was
the
investigation's analyses of actual
all sections of the country.
figures from
in
stores
that
Note
large cities, for
cost standard
which
of 30.12%
a separate
fixed, are not included; (2) that the
was
en)enditure
is the
hi^est
advertising^
if furniture
scheduled
the standards,
in
stores
and depwrtment
excepted.
are
cost
This average
retail in the United
AVERAGE
This
cost
Rent
Salaries
9.5*
8.2"
Advertising
0.6*
Heat
0.7*
0.4*
1.1*
2.3*
2.2*
Delivery
Supplies
Ught
Delivery
Supplies
and tazee
Insuranbe
General expenses
Depreciation and shrinkage
Bad
percentage of expense
Bad
(1)
Jewelry
The
stores
not
are
considered,
higher
in any
other standard
fountain
letidl activity; (2) that soda
niake it possible to pay
profits nomuuly
spedalties
high rents; (3) that many
vie
with
old line drug stocks
connected
not
above
used to build net returns
now
are
rents
the
than
i^aid
are
rising expenses.
0.7'
0.7J
0.4*
1.2*
4.5*
Supplies
taxes
expenses
Depreciation and
of expense
percentage
itemised
therefore, follow:
$
Insurance
and taxes
General
expenses
Depreciation and
....
900
or
2,730
or
780
800
180
or
or
or
8
9.1
2.6
1j
0.6
360
540
or
1.2%
1.8%
660
or
2.2%
or
21.5%
or
debts
AN
cost
average
net
of
(1) that, under normal
weak; (2) that,
profits are
your
success
closer
demands
light
$
shrinkage
Bad
0.5%
STORE
778.13
2,786.21
.
4.4*
debts
.
.
.
376.51
225.91
76.30
100.40
301.21
1,029.14
or
or
or
Z.V
11.1^
1.5'
or
0.9^
or
0.3'
or
or
or
0.4*
1.2*
4.1 Vs
150.61
25.10
or
or
0.6%
0.1%
$5,848.52
or
23.3%
0.1%
debts
Total percentage
sake
SHOE
Insurance
and taxes.
General
expenses.
and
Depreciation
0.3*
1.0*
Insurance
and taxes
General
expenses
Depreciation and shrinkage
AVERAGE
These
New
figures from
England
a
shoe store fit the average
closely. Three
and one
half turnovers
made
under
are
a
loss of about
mark-down
9%.
Therefore,
is forced
the owner
to r"uise
throu^
the stock
close to 85%
a
mark-up
in
order to get a sound
net
profit.
Advertising
Heat
andhgfat
Delivery
Supplies
0.5*
Delivery
Supplies
$6,450
expense
Rent
Salaries
3.2"
10.5
1.7*
1.1*
Advertising
Bad
21.3%
STORE
Salaries
Total
in styles.
and
DRUG
or
to
Rent
Salaries
Heat
AVERAGE
or
expepaoa
shrinkage
by
retailing shoes set for the country
(1) that rents are
the investigation. Note
also heavy,
high; (2) that salaries are
These
conclusions,
proportionately.
buying
or
Rent
COSTS
STORE
SHOE
hence,
$12,801.73
or
here itemised
are
paid
bsr a druggist who
handles
annual
sales
in an
Ohio
of $20,000
city. They are
below
the
iot
the
oountry,
average
Note
given to the ri^t.
(1) that the
supply costs are inchaded in the general
which
almost
lower
are
3%
expenses,
than
the average.
Bad
24.9%
is the
mark-ups,
expense
or
0.2%
sales
This
0.4%
or
0.5*
shrinkage
debts
Total
2.2%
or
Delivery
Siq"pUes
1.8*
Advertising
Heat and light
Delivery
Bad
or
240.41
HeatandHght
10.9'
General
1,822.24
....
Advertising
4.0*
Rent
Salaries
Insiurance and
I.870
.
debts
AN
of doing a retail drug badness
Note
averaoed
to this standard.
furniture, and
that, if department^
Costs
were
or
taxes.
expenses
Total
COSTS
OTORE
or
l,061.8d
and
Depreciation and
shrinkage
23.3%
DRUG
or
$1,322.24
5,469.29
2,043.47
fiight
and
Geiieral
to
sales
180.31
860.61
120.20
661.12
2.2
9.1
8.4
0.3
0.6
0.2
1.1
Insurance
0.3%
debts
Total
is paid
heating is reduced by supplying tenants;
into
(3) tiiat these savings are thrown
the advertisingappropriation.
3.0J
and
doing
a
Salaries
Heat
STORE
business
clothier in the Middle
who
West
annual
sales of $60,000.
Note
secures
"1)^
^at the rent is low because an entire
leased and
building was
improved until
needed
for selling could
be
not
space
subleased
at a profit; (2) that the cost of
by
Rent
Advertising
CLOTHING
of
of expense
to
Total
23.3%
XVU
expense
APPENDIX
STORE
FURNITURE
COSTS
AVERAGE
staiidaRi here given is the average
after analysing the cost of retailing
Note
States.
furniture in the United
(1)
stocks
of the
that
the
bulky
nature
drivee
other
in any
rent
higher than
national
for
itemised
thoee
average,
and
jewelry stores excepted;
department
are
(2) that general expenses
unusually
of the incidental
heavy^ partly on account
by poor packing.
lepainng necessitated
The
found
Rent
fialaiiee
and
Heat
Ught
Delivery
Supplies
,
Insurance
and taxes
General
expenses
Depredation and shrinkage
Bad debts
Total
highest
the
of
some
Insurance
General
largest
AN
pay
if
expenses,
stores
department
4.9"
10.9
2.9*
Rent
Salaries
Advertising
General
0.9J
1.4*
3.9*
0.9*
taxes
shrinkage
of expense
percentage
ia the
investigation
a vehicle and
percentage
as
or
1.9%
or
1.2%
$25,453.76
or
25.4%
$1,080.40
3,361.23
1,050.38
Advertising
andfight
Insurance
and taxes.
General
expenses.
Depreciation and
.
.
.
180.07
30.01
270.10
540.20
630.23
360.13
90.03
........
debts
the average
Note
Crtionate^
"ge
Total
AN
pcnnted by the
cost of doing
in the
implement
States.
Dusiness
that salaries
sales
because
are
are
pronot
ooimter-
2.1"
9.4*
1.2*
0.5*
1.1*
0.4*
1.1^
Rent
Advertising
light
Delivery
Supplies
and taxes
Insurance
General
expenses
Depreciation and shrinkage
debts
Bad
of expense
$7,592.78
....
AVERAGE
VEHICLE
STORE
or
or
or
3.6"
11.2
3.5*
0.6^
or
or
0.1"
or
0.9^
or
1.8^
or
2.lVo
or
or
1.2%
0.3%
or
25.3%
These
figures are from the books of a
selling$57,600 worth of vehicles and
implements annually in an eastern
city of
to within
total
33,000.
They
1% of the
for the country, given to the left.
average
$1,094.63
5,818.81
Advertising
Heatandlight
Delivery
Supplies
Insivrance
and taxes
General
expenses
Depreciation and
....
0.7J
shrinkage
Bad
0.6*
STORE
store
Salaries
Salaries
Total percentagB
sales
expense
Rent
their inf requency.
and
1,904.03
JEWELRY
AVERAGE
shrinkage.
COSTS
STORE
high
enou^i individually, to
Heat
1.8^0
1,202.54
Rent
Salaries
Bad
26.9%
VEHICLE
bauukce
or
or
to
sales
United
1,402.97
1,803.82
l.V
0.5"
1.4"
or
or
0.3Vo
debts
Here
expense
.
expenses
Total
2.9^
0.8^
and
Delivery
Supplies
0.1"
Depreciation and
Bad
or
or
In Kansas
show
one
Jeweler's books
these
There
is not
i"ayments.
expense
item
in which
from
an
the
they vary
national average
than
An
by more
2%.
Indiana
jeweler has cut his payrollto
5^0 by advertising his repairbench and
it and
dividing the clerks' time between
the counters.
Heat
0.7J
Heatandught
Delivery
Supplies
and
.
.
...
debts
Total
is here
The
standard
that
turnovers
the
these high costs
slow;
are
secured
often
are
(2) that, therefore, net profits
when
even
unsatisfactory*
heavy net
realised; (3) that, hence,
mark-ups
are
healthier
returns
from
safe novelties and
repairs are needed.
Insurance
or
601.06
taxes.
5.6"
8.3
or
1.102.33
and
year
a
801.70
shrinkage
Bad
(1)
Note
under
given.
sells
which
$5,511.56
8,317.60
2,906.15
expenses
Depreciation
overlooked.
are
Rent
Salaries
0.9J
retail
average
store
in
the
South
are
typical of the average
established
for the line in this countiy.
Note
that
the loss from
bad
d'^bts u
the
heavisat
encountered
the
among
assembled
from
costs
stores
operating
under
normal
conditions.
0.4*
1.6'
l.V
2.2*
COSTS
investigation showed,
Jewelers,
the
a
fumiturd
of
Heatandught
Delivery
Supplies
26.4%
STORE
worth
to
sales
JEWELRY
figures from
STORE
l.9^/o
of expense
percentage
These
#$100,000
Advertising
6.0*
9.7
2.7*
0.9"
Advertising
FURNITURE
debts
.
633.73
345.67
518.51
230.45
460.90
230.45
403.28
115.22
or
1.9"
or
10.1^
or
Ll^
or
a6{
or
or
or
or
0.9*
0.4*
0.8*
0.4*
or
0.7^
or
0.2^^^
0.3^/o
to
Total expense
17.4%
XVUl
$0,851.65
or
17.1%
VARIETy
STORE
Tsrpioal variety
States
found
were
when
(1) that
at
counters
2,000 cheek
for the country.
average
$11,000
store
can
under
a
a, year.
delivery
no
are
losses from
a
defaulted
%
Advertising
Advertising
1.9'
0.8%
Heatandlight
Delivery
Supplies
0.2"
1.0*
Insurance
and taxes.
Qeneral
expenses
....
Depreciation and
Depreciation and
23%
investment
through
Bad
401.49
166.18
19.11
.
shrinkage
0.9J
0.1^
shrinkage
this
(2) that
the
10
or
080.07or
8.5j
Insiuance and taxes
Qeneral expenses
of
Rent
Salaries
4.4"
andl^t
on
in
well
with
the
The
sales total
Note
(1) that
and
oharges
no
debts;
60%
net mark-up
net
Rent
Salaries
Delivery.
Supplies
STORE
variety store
turnovers.
mark-^p.
Heat
a
of
about
there
loss to attract
trade :
is rapid and
(3) that, since the turnover
of doing business
the cost
low" this line
and
is profitable under a suitable volume
the
VARIETY
figures from
town
a
Note
aTeraffed, these expenses.
good locations
rents raaJc high because
(2) that the adverare
usually demanded;
tiung expenditure includes "leaders" put
on
AVERAGE
These
United
the
paying,
be
to
AN
COSTS
in
stores
COSTS
FIGHT
HELP
TO
22.02
99.11
66.06
11.01
or
or
or
0.2*
or
0.9"
or
0.6
or
0.1%
or
17.1%
debts
debts.
Bad
Total
percentage
of expense
to
Total
17.8%
sales
Retailers
they
because
to
go
sheriff at
Here
are
placeswho
are
guess.
retailers in three
their cost of
about
the
.91.803.05
the
of 30
rate
a
day
the
proportions of the
actuallyguessingtoday
doing business:
96%
CSty of
5,000 (Indiana)
30,000 (Illinois)
of
26,000 (Illinois)
29%
Town
CSty
of
Costs
of
doing
business
39%
and
profitsfrom
tables which
analyzed in the
follow.
38 stores
They
were
are
lected
col-
Association.
It is
by the National
Dry Goods
that the average
of doing
cost
exceedingly significant
of the sales,while System's
business is set at 23 8%
national
made
investigation,
independently, had previously
fixed the average
at 23 05%.
of interA number
esting
facts will be brought out by a few
moments'
.
.
study of these figures. The
averages
for all of the stores
profit,30.45%; net profit,6.45%; cost of
It should
be understood
that
doing business, 23 8%.
are:
gross
.
these
percentages
figuresthat
gone
over
only refer
established
and
audited
to
these
dry goods
averages
by experts.
stores.
were
The
carefully
APPENDIX
PROFITS
GROSS
(States with
Five
Minnesota
33.86%
33.30%
Tennessee
33.12%
Kentucky
COSTS
AVERAGE
(States with
Six
Highest Percentages)
Virginia
31.41%
Alabama
30.50%
DOING
OP
BUSINESS
Highest Average Percentages)
Tennessee
27.34%
Nebraska
Indiana
27.00%
Alabama
26.83%
25.94%
Minnesota
27.00%
Texas
25.58%
(States with
Six
PROFITS
NET
AVERAGE
Highest Average Percentages)
Utah
11.00%
Louisiana
9.40%
Kentucky
10.66%
9.80%
Michigan
8.00%
6.00%
West
Virgmia
AVERAGE
York
New
PROFITS
GROSS
(By Population and
Locality)
33.23%
31.29%
.31.07%
30.20%
30.00%
31.80%
30.00%
75,000 to 100,000 population
15,000 to 25,000 population
100,000, and over, population
60,000 to 75,000 population
25,000 to 50,000 population
Fanning districts
Manufacturing and fanning localities
29.95%
Resorts
Manufacturing
29.88%
centers
COSTS
AVERAGE
OF
DOING
(By Population and
BUSINESS
Locality)
300,000, and over, population Gowest)
75,000 to 100,000 population(highest)
Shipping centers
Farming districts
Resorts
Manufacturing
centers
AVERAGE
NET
(By Population and
300,000,and
100,000,and
Fanning
over,
over,
XX
27.03%
24.88%
24.52%
24.00%
23.22%
PROFITS
Locality)
population(highest)
population (lowest)
districts
21.25%
8.40%
5.91%
7.28%
TO
FIGHT
HELP
COSTS
Manufacturing centers
Manufacturing and farming localities
6.66%.
6.25%
5.95%
S.50%.
Resorts
Shipping
centers
the
portion of the table below appear
have
savings actually seciu^ed by distributors who
In the lower section is
replaced horses with trucks.
^ven the cost of a typical day's work by a power
In the upper
and
wagon
team
a
:
Miles
Loads
per
T3rpe of
East"
East"
East"
Middle
Middle
Business
and
Location
truck
1,000-lb. eL
hardware
heavy
;
3-ton
West"
coal
5-ton
g"s.
West"
furniture....
2-ton
el.
dry goods.
dry goods
gas.
l"500-lb. gas.
1.000-lb. gas.
goods.
West"dry
2,000-lb. gas.
West"
Middle
dry goods
750 sas.
dry goods...
NewEngland"
1,000-lb.eL
West"
dept. stoxe
3.000-lb. gas.
West"
groceries
Middle
.
and
Wagon
.
or
day
stops
"av.) (pkgs.)
.
82
46
55
27.92
88
58
58
62
40
75
205
Horses
Cost
$00.00
...
810
25.18
2
12
4
mo.
9.74 day
.05 pkg.
11.09 day
195
195
180
185
Team
replaced
.05
.05
.08
30
46
24
8
83^
4
40
14
pkg.
pkg.
pkg.
Three-ton
Truck
$910.00
Originalcost
$3,500.00
3.79
Interest at 5%
16%
Depreciationat
11.37
Saving
%
14.38
(at 20%)
68.33
Repairs
9.20
14.10
Insurance
1.00
12.90
.80
2.00
License
26.00
Shoeing
3.00
(tires)
(gas)
Miscellaneous
9.00
(oil)
Feed
31.10
31.66
6.80
Wages (driverand jumper)
93.00
(driverand jumper).
98.68
Rent
10.00
(garage)
10.00
Cost
per
The
Kansas
$6.15
day (27)
retailers in 29 towns
use
a
$10.34
and
cities in Missouri
cooperativedeliverysystem.
and
The
savings
deliverycosts
by this method have cut individual
Following are figures
anywhere from 25% to 40%.
the equipment savings which result
^inthree towns
on
made
"
59 wagons
and
one
saving it
truck have
must
been
be admitted.
XXI
discarded
"
^a
while
worth-
APPENDIX
Wagons
Stores
now
using
Independenoe, Mo
Columbia^Mo.
Mejdco,Mo
Wagons
fonnerly
used
used.
22
11
35
16
10
32
11
6
19
noting that in but a few instances was
retailers' lightingexpense
found to be in excess
of 1%
this 1%, because the different
of the net sales. Below
stocks requirevarying amounts
of light,a wide range
of percentages appeared. Averaged
for the various
lines, these percentages give the following norms
be advantageously
against which similar expenses
may
checked in a general way:
It
IB
worth
Percentage
of net sales
Line
volume
Shoes
1.10%
.92%
.81%
69%
.62%
61%
M%
51%
.43%
Pomiture
Variety goods
Drugs
Clothing
Jewelry
Dry goods
Vehicles and
implements
Hardware
Crroceries
.39%
Department
following
the National
Dry
The
lines
.22%
stores
mentioned.
figures were
turnover
Goods
Association
These
averages
compiled by
for the
must
not
various
be
sidered
con-
as
absolute,but will serve
a basis of comparison
is
for your
own
figures. Rate of stock turnover
147 and
on
fully discussed in Chapter XIII
pages
of figuringit accurately. It
148 you will find methods
is one
is worth
noting that a rapid rate of turnover
of risingcosts.
Even
of the bitterest enemies
a small
it is
the net profitpile up
stock makes
rapidly, when
tinned again and again,with a small profitat each turn.
as
"
"
ZXll
"
XXIV
XXV
INDEX
ADVERTISINQ
holds
that
copy
"
trade
19
how
the
to improve
meoial
inezpennve
"
"
^Dorel
"
methoofl
Bam^ee
"
"lunud
"
be
store
,
yalne
of^
what
"
medinms
^
102.
108,
104,
106
CUSTOMERS
47,48
--being
21
49,fiO
"
21
"
28
friendly with
oalUng
on
gettiiusnew
handling
disgruntled
prises for
"names,
of
winning
friendship
46
21
"
12,
18,14
44
store
to
95
47,
planned
personality
small
to
lines
46,
8, 9. 11.
-"
weeks*'
101,
19
of
well
bnilda
that
"
various
46,49
good
of
in
'*~**P*y*'Up
62,63
use
21
21
"
"winning
28
women
zm
Arrangement
of
floor
store
plans
92
D
Debt,
in
losses
bad,
various
lines
96
B
DELIVERIES
BONTTS
deliveiy
men
paying
salespeople
72
^f
or
"
"
114,
a
116
116^
BUYING"
the
having
"
derks
store
the
for
help
small
20
19
store
for
"charging
74, 76, 76
ooo|"erative
77, 78, 79, 80
war-time
needs
69
to
meet
"cutting,
instead
of
20
Discounts,
system
coupon
"
DISPLAYS
"effective
merchandise
22
"shelf
FLOORS
CASH
advantage
"
"
22
of
changing
credit
100
basis
on
99
-^wliich
89,90
upper
valuable
most
are
88
20
qrstem
coupon
and
*K3ash
business
cash
from
to,
"discount
a
Carry,'* starting
ss^stem
a,
H
76,77
Charge
Color
accounts,
aid
an
as
in
for
charging
bulding
76
store
sonality
per-
11
meeting
Conmetition,
the
customer
desk,"
how
for
Helps
"Hurry
16,
to
17,
18
71
use
outK"f-town
I
20,42,48
COMPLAINTS
"
"
"
build
confidence
handliny
to
preventmg,
l^ good
delivery
reducing
"
^reducing,
"
tabulation
Confidence,
72
71,
ddiveries
130,
73
of
winning
customers*
"for
"
to
24
them
1
107,
reduce
operation
reducing
of
"tendency
rising
costs
-^why
are
cuts
most
of
"that
speeds
Letters
108
LOCATION
21
2
-clangers
"effect
2, 3, 4, 6
CREDIT
how
to
"making
100,102
of
"on
96,97,98
extending
from,
to
96,
cash
basis
96
99
work
up
66,
64,
66
67,
60
66,
choosing
poor
67
44
91
of
83
rents
89
choose
capital
upper
",
**hit"
a
from
on
61,
space
sales
make
that
27
costs
small
60,
increases
"
for
that
the
"that
111
"
"changing
store,
a
making
2
salary costs
of knowing
importance
"of
selling
how
134
LAYOUT
20
cutting
selling,
133,
74
66%
attainable
"of
132,
21
"
"
131,
.
COSTS
"
perpetual
Inventory,
72
of
a
84
poor
89,
noors
"overcoming
a
"overcoming
poor,
90
22
poor
with
the
phone
tele86
INDEX
"
LIST
MAILING
to date
keeping up
keyinc the
leeaonB from
eome
"
"
"
stocks
mslring
-.planning
"
reoords of, help to buy
it affects sales
145
-
.
how
Moving,
to
"
bonuses
"
loss of trade
"
"
"
;meetingsof
"
101. 102, 103. 104, 105
Pay-up weeks"
PERSONALITY
^records of
what
they cost
"
"
12, 13, 14
6, 7, 8, 9, 10,
building business with
11, 12, 13, 14, 15, 16, 17. 18
and
"store"
between
"difference
based
"
7
"owner"
to
reach
new
29
35, 36
families
TIME
26
65,66
"
SERVICE
31, 38. 39
win
into
enters
sales, that
-"what
improving
"
^in delivenes
time
in war
"
140
140
of
"dangers
^value of
26
27
69
69
79
27
68
71
72
bureau
"
39
sales
CUTTING
PRICE
"
84, 35
32, 38
events
"plan to
^plansthat help in
POLICIES
"
touch
setting quotas
"
SAVING
6, 7, 8, 9, 10. 11
14,16
develop
in price tags
list
with
mailing
on
keepingin
"
"
"how
"shown
PLANS
SALES
displasrs
in window
shown
-Hts
109
108
113
26
106, 109. 110. 112
109, 110. 114
114
107. 108
classes for
contests
for
how
to pay
how
to train
"
87
*"
114, 115, 116
for
choosing
"
when
a
,."
I^
prevent
into
enters
SALESPEOPLE
140. 141. 142
figure
percentage of
"
what
"
to
25
25
27, 40, 41
sales poluQr
39
reducing lost
"special
"
MARK-UP
"how
"how
for greater
store
55, 56, 57
142
144
anabrsis of
how
the
quotas
"
"
increasing
151, 152
by suggestion
56, 57, 58
without
increasing,
"
MARK-DOWNS
"
24
25
22
increasing by suggestion
"
23
23
54
53
buikUncup
"
ddireries
boost
can
tact will increase
4iow
how
"
"
policies
"
farmers
it is
what
-^with
"hurry desk"
a
Stickers that speed service
-Hio
PROFIT
"
a
"
common
in
error
138
figuring
142
141, 143
^how to figure
"records
to show
it is
"what
"
STOCK
137,138
that helps sales
^arrangement
"choosing
Store front, a distinctive
23
Profit sharing
"
62
27
6,10
RECORDS
"
a
"
a
perpetual inventory
130. 131. 132, 133. 134
simple
for
system
any
128, 129, 130, 135,
stand
119,
how
show
"that
you
121. 122. 123. 124, 125. 126, 127,
141,
that show
profits
store
"
TURNOVER
retail
136
120.
128
143
RENTS
"
how
how
location
they
"overcoming
"
"
"
"
are
affects
rising
high
^ratio to sales
should
be spent for
what
most
floor is worth
which
83
84
85
87
83
88
150
148
147, 148
to figure rate of
147
iportance of rapid rate of
the rate of
"Ucies that increase
153, 154, 155
rate of 147,149
to increase
"two
ways
how
how
^how
"
"
"
rapid, increases
BOOK
WANT
to
24
"
70
use
28
of
DISPLAYS
WINDOW
Salary, cutting cost of
profits
w
~-how
"value
8
affected by bu3ring
building
store
personalitywith
12, 13, 14
SALES
by courtesy
"cooperative
"displaying stock to make
"displays that help
"
built
30
24
62
25
XXVUl
"local
"
some
"^unusual
Women
28
olt M
interest
hints on
and
customers,
inexpensive
wmning
28
28