The Providence news. (Providence [R.I.]) 1891-1906, 1897-05-21
SENSATIONAL SELLING.

One of the innovations of modern times
Is tho custom of selling certain articles at
or bslow cost at the opening OF the season,
in order To make IA reputation for cheap
ness, and SO, draw trade.
This is good business and especially so
when merchant desires to attract popu-
lar attention to his store
For instance. the owner of "A very small
and unsuccessful store can, by Offering,
say, 2000 yards of muslin at 3 cents per
yard which Is properly known 20 be worth
cents per yard, draw people TO his store
and perhaps sell them quantity of other
goods upon which he makes a profit.
The example is purely fictitious, but
shows that the expenditure of few dol
lars in newspaper advertising tn reach the
public, and by sacrificing 800 in selling
value, how successful business enterprises
have been built UP.
When goods are thus offered below cost.
some merchants seek, by averaging their
profits, To recover the sacrflce that is,
they add "a slight percentage on other
things the exact value Of which Is not SO
obvious TO the consumer
DIsCoUNTING BILLS.
1t is common thing to hear it said
that the large department stores give
their entire profits TO their customers, and
rely solely on their cash discounts
They can do this and still show hand
some margin of gain upon the capital in
vested provided they figure accurately
and intelligently, and are able to clean
up their shelves quickly.
When merchant is able 10 pay cash for
his goods, he can usually obtain all the
way from two to ten per cent discount off
the list price of goods supplied TO him.
With the list price in mind, he adds n
certain percentage for rent, light and
heat, for clerk hire. for profit and loss,
for advertising. for delivery, etc, etc -
figures approximated and developed by
reference TO past experience-and makes
his solliDg price equal the sum total of
these.
He then seeks to sell the goods as
quickly as possible.
Every time he sells the entire stock or
turns it over, " as no calls IL. he makes
the discount above referred to as profit.
Thus successful merchants and the
largest retail dry goods stores are able 10
furnish the people with goods at cost.
A merchant doing business by this
method, say on two per cent basis, cal
oulatos TO turn over his stock at least
three or four times year. III he does 10
four times his profit will he ax2 per cent.
equals per cent. on the capital invested.
Each department Of store or each class
of goods Is made n unit in this method Of
selling
ADVERTISING.
All successful business houses advertise
and prefer and find that newspaper adj
vertising Is the most effective for Peach
ing all classes of people
IL is necessary to advertise in order to
sell goods in paying volume.
IL is necessary to keep advertising I'm
order To hold public attention and got
people In tho habit nf looking in the pa.
pers for things YOU have To sell.
Tho business world Is strewn with
wrecks cf once prominent firms which
thought they could curtail expenses 10y
cutting of the cost of advertising.
The most successful business houses I'm
every city are generally conspicuous by
the wide scope Of their newspaper adver-
tising.
The expense Of advertising should DO