The Scranton tribune. [volume] (Scranton, Pa.) 1891-1910, 1897-08-28
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ABSURD TRADE DISCOUNTS.
From the Philadelphia Record.

From the Philadelphia Record.
The ridiculous CON plex system OF single
double. triple quadrupie, quintuple and
even in some cases sextuple discounts
from printed price lists now prevailing
In some trades where competition Is Keen
has reached a height of absurdity which
IL is hard to believe can actually exist
in any business conducted by sane per-
sons. In the gas pipe trade, for example,
81 per cent off the price list may seem
to the uninltiated quite a liberal discount;
but there are "trailers" added to this, like
knots on a kites tail, increasing in num-
Der according to the size of the order
and the standing OF the customer. "fifty-
seven per cent and six tens Off" is IA
miliar quotation in this trade; and as we
presume that the majority of our readers
will not understand the meaning OF this
technical phraseology We will do the
arthmetcal sum for their benefit. Thus
an article is listed perhaps at one dollar;
81 per cent. off leaves 43 cents net; 10 per
cent. off of 43 leaves 1871 cents; 10 per
cent. off of 3S.7 leaves 3i.SS cents; 10 per
cent. off of 34.s3 leaves 3l.35 cents; 10 per
cent. off of 3l.35 leaves 2S.22 cents; 10 per
cent. off of 2S.22 leaves 25.io cents; 10 per
cent. off of 25. 40 leaves 22S6 cents-the net
price of the article!
The Oil, Paint and Drug Reporter In its
latest issue. in discussing the condition of
the plate glass trade, says: ut is not be-
lieved that there is much profit in selling
at the present low price of 80 per cent.
off the list" Further on we read: 1T is
thought by some people interested in the
business that the end is not yet, and that
80 and 10 per cent. will be reached before
the war is over" Discounts of $50 and 20
and 1O' per cent are allowed by manufac-
turers of steel screws: and were 1t not
for fear of confusing our readers we
might penetrate still deeper into this
maze of discounts.
What is the explanation of such SEEM
ingly puerile, or rather imbecile, pro-
ceedings? There appears to be a magic
charm in discounts. The customer is
supposed to believe, and he often does,
that for some occult reason the seller
is giving him peculiar favors. No matter
how transparent the trick may be, the
purchaser seems to be incapable of pene-
trating 1t; he is hypnotized by the mystic
charm of the seXtuple discount. This is
the more remarkable when we reflect
that the purchaser is, perhaps, also a
manufacturer engaged in playing the
same game himself. One obvious result
of this method of transacting business
is to wipe out the small retail traders,
who can not obtain the seXtuple dis
counts which larger dealers insist upon.
The discount system has penetrated al
most every trade, from the selling of
ponderous power punches to little pills;
and the only advantage of printed price
list is to beguile the uninitated retail
purchaser into the belief that he is Sc
curing a bargain when he buys an ar
ticle at cost less than the printed price
list.
A few years ago, before the depart
ment stores embraced so wide a range
of sales, the book publishers sold books
at retail often at the full list price, and
the catalogue with prices attached was
conspicuously displayed and consulted
for the purchasers benefit. If the pur-
chaser, however. knew the ropes" he
could always obtain at least 10 per cent
discount, and often a great deal more
than this. Now the purchaser is re-
lieVed of the necessity of this counter
play by purchasing the book at a fixed
price at department store. When the
department stores first began to sell
books the retail purchasers could ac-
tually obtain new books cheaper at their
counters than by buying directly from
the publishers. Book publishers do not
now seem to be able to meet the COM
petition of rival retail sellers of their
own products, and are giving up the
attempt. 1t is evident that trade dis
counts have attained such a height of
absurdity that the whole system has
become top-heavy, and is liable to fall
anV nlOmnnt