Evening star. [volume] (Washington, D.C.) 1854-1972, 1889-05-25
BUSINESS.
How Secured and Increased.

From Printers Ink.
No man can do business unless he deals in
something that people want. Unless he has a
clear field and no competition, he must not
only have what is wanted, but must have it of
the better quality, at a cheaper price, or serve
1t In more satisfactory manner than his COM
petitors do, otherwise he will attract only his
share of the trade. Every successful business
man must secure more than average share
In all trade it is important that the profits
shall be fair. The markets are accessible to
all dealers. The quality of goods offered by
one may therefore be as good as any other can
afford at the same price; consequently the
style of serving customers becomes the natural
avenue through which TO force an increased
trade. Suppose. them that the price of your
goods is a fair, full, market price, the quality
the best, selected with care and always reliable
Attention must now be paid to the appoint
ments for the transaction of trade-efficient
assistants, prompt dealing, ready and pleasant
adjustment of errors and careful attention to
all wants of customers. With all of these a
good trade can be secured, provided the Gus
toners are to be found within convenient
radius and made dlcdre of the facilities
which are offered for their accommodation.
The object of doing business is to make
money. When two or more persons en-
gagged in the same trade, and under the same
conditions the one whose transactions are
largest will not only make most money, but
will realize the largest percentage of net profit
For examples A sells $4,000 worth of goods,
which allow him an average gross profit of %
per cent. or $1,000 year. For store rent he
pays $500, for assistant $500, for fire and light
800, for miscellaneous expenses. 5000, or a
total of $4,000, leaving net profit of $4,000.
In the same town, in similar store, b. an
older merchant. longer established and better
known. sells SAC. 200 per annum. Ii gets along
with about the same rent; clerk hire doubled;
costing b 1000 where A pays but 300. BIS
entire expenses for the year are $4,000. while
his profits are $4,000, leaving him $1,000 net
profits. or ~ per cent on his business, while
A made but Is per cent net Any business man
OF experience will pronounce the above exhibit
fair. plan which will enable A to increase
his business to an amount equal to that done
by b without reducing his percentage of profit
will be worth to A the sum of $1,000 per year.
If expenditure of -, 900 per year i'll advertis-
ing will do 1t, such an expenditure would GER
tainly be justifiable. If all expenditure of
$4,000 will make AS trade double BIS, that will
be justifiable, for on the $4,000 OF business
there will be $50. 900 profit. and deductng the
expenses increased to 4.500, and $4,000 paid
for advertising, we still have Sl0.500 profit or
$500 more than that made by 3.
IL A has the capacity to conduct the larger
business, and Is located in region where the
population and distributing facilities are equal
to the support of SO large a trade, and if it
would be possible to secure the additional
trade by investing $4,000, or even something
more in advertising, then it would be a good
business operation for to do the advertising;
pay its cost; and thus secure the trade-and
with it an actual increase to his net income; as
well as added Importance in the community by
virtue of his larger transactions,