Delaware gazette and state journal. (Wilmington, Del.) 1883-1902, 1897-12-23
TRADING STAMP BUSINESS
Some Men Who Went Into the
Scheme Disguised.
THOSE WHO REFUSED TO ENTER
Congratulating Themselves on
Their Action.


Demand for Five Fer Cent OF the Trade.
Some OF the merchants OF this city
hnve become thoroughly tlisgusted with
tho trading stamp business aud wish
they had mover taken hold of it. Others
who would not 20 into the scheme are
congratulating themselves. The dis
gu5ted merchants are not confined to
any particular class of trade. hut ara
identified with nearly every branch of
retail business known here. The amount
Of business done appears to make no
difference, 80 far as objections are
concerned. Complaints are heard from
every quarter. Not only are merchants
aroused against the scheme. hut many
other people arc complaining, some
believing that at least a portion Of
the merchants have advanced the priree
of goods in order To be reimbursed for
the money paid for the trading stamps.
When the scheme was launched upon
Wilmington, about six months ago, il
had sort of fascination, upon the rep
presentations then made, and many of
the merchants felt that they were
willing to give it trial, which step
some now regret.
Several of the most in portant mer-
chants in the heart OF tie city, who
have for years been identified with the
retail business of Wilmington we're
asked IN Friday afternoon for their
opinions about the trading stamp
scheme.
"Well," remarked one of those gen
tleinen, II am thoroughly Disguised.
There are others who feel as / do about
l. "A II L..
ledge that orders have been given in
one or two stores not to give out any
more stalnpu
ION first representation it looked
like an alluring scheme. But, as a
matter of fact it is practically, a de-
mand for per cent of our business
Every person buying at stores where
trading stamps are given are entitled
to one stamp for every l0-cent pur-
chase. Each purchaser who is col
Letting stamps has book representing,
| when filled with stamps 500 spent with
the merchants. When one Of these books
is filled the holder is entitled TO one
stamp company. Each merchant pays
per cent, or 30 cents for every 100
stamps given uut--this expenditure
heing for the privilege t?) of being in
| the scheme. quantity of stamps is
left with each merchant and the people
who are engineering the scheme make
weekly collections, at the rate | have
| stated for all stamps given out, All of
this money turned over for stamps is
| that much of the merchants profit
given away. The trading stamp people
| get their money regularly 10 this way
whether the stamps given out by the
merchants are returned or not.
"My observation has taught me that
only small proportion of customers
are saving the stamps. But we have
10 pay for every one given out, no
matter whether the person receiving it
gets any benefit or not. Stamps that
are not made use OF are all clear profit
to the stamp company.
1T ia necessary to make 800 worth of
purchases before premium can be
claimed. For these stamps the company
| receives 81. 90 from the merchants.
| I'VE have had practical experience
| OF six months and find it does not nay
the merchant. Many people are under
the impression that they are receiving
something tor nothing. In many in-
tances this is mistake. l know that
some merchants have made an advances
of per cent on certain goods, un ac-
| count at having to pay at that rate for
the stamps. Some have overcome the
difficulty by reducing expenses and
thereby curtailing their facilities. Some
| with whom / have talked say they
cannot afford to continue and are will
ing to grasp my opportunity that will
give them relief. Their business, they
say, has not increased.
'Some people come into our stores,
and, knowing how it would be necessary
to save to obtain premium ON the
trading stamp plan ask for 5 per cent
discount ON their purchases, preferring
immediate benefit. Wo lose no more
by granting these requests than by
complying with the trading stamp
plan, but it can be readily seen what a
per cent reduction all around means.
II we make no advance in prices We
certainly have our small profita cut
down very materially, while il We do
advance the prices we are compelling
the purchasers 10 stand the extra ex-
penss and not treating them fairly. -
Another merchant who talked 10 the
same strain. said be would much rather
give the people the diroct benefit of
any reduction than contribute to the
support of another con cern.
Similar expressions were heard from
several others.
Those who are giving out trading
stamps have entered into an agreement
with tho company to do 80 for year.
The form of agreement, which is signed
by the trading stamp company and the
merchant, is as follows:
MEMORANDUM of AGREEMENT.