Mohave County miner., 1899-09-16
Cutting Prices.

IL Is unfortunate Tor any community
that there should exist among its sup
plying merchants, one of even small
influence, says the New York CONNER
cial Enquirer, who attempts to gain
trade by cutting prices. Those in
clined to adopt the plan of drawing
customers from established competi-
tors by Offering goods at lower than
ruling and legitimate prices, should
consider we'll the situation and take
account of all the facts involved.
In every community the possible
amount of goods to be sold is limited,
and cannot be increased materially by
change in prices. If the people have
more money to spend there is simply
larger volume of trade within the
limit, but this volume is not changed
much by prices. If local merchants go
on in the even tenor of their way, the
trade will be divided up among them,
there always being some particular
condition to help each to certain ex-
tent, If one man or store becomes more
popular than others, it will be found
that 1t was not matter of prices, as a
rule. If people could be convinced
that they could make money by buy
ing in advance of their needs, or of one
merchant because he was making a
grand reduction sale, the excess of
present purchases would reduce the
buying for corresponding period fol-
lowing. But, generally speaking, it is
safe to say that only about so many
goods can be sold anywhere, and if
prices are maintained on an equitable
basis, every dealer will participate in
the business and its profits.
Again, we insist that no one should
be so shallow as to suppose that 9TH
ers will stand quietly by and let one
aggressive dealer take away their trade
by price-cutting. Self.protection is a
law Of our natures, and if one begins
to undersell, a war in prices is soon in
augurated. No one intends to sacri-
flee his profits for any definite period,
but expects to give the disturber
enough of his own game, and so induce
him to quit it, Moreover, the one who
has thus openly antagonized others
becomes a sort of commercial outlaw,
inviting criticism from all who can
find any occasion against his goods,
his methods or himself. The price
cutter very soon becomes known as a
disturbing element in trade. and in
variably as one who works for himself,
not for his patrons. The reputation
Of such a one always suffers by the
plan followed.
1t should also be remembered that
existing prices are pretty accurately
established upon trade necessities.
The percentage of profits placed on all
kinds of merchandise where competi-
tion exists at all, is only about what is
required to sustain the business. 1t
has been found as a matter of expert
ence that smaller profits bring only
disa ter, for the one who cuts prices
the deepest is the first to go to the
wall. And if profits should be placed
too high, not only would competition
quickly lower them, but the situation
would induce others to come in and
try to make money. As matter of
fact, the history Of trade everywhere
shows that the tendency is toward a
system of prices and profits which will
enable the merchant to receive fair
return for his time ana investment,
but rarely to get rich hastily. If one
attempts to overthrow this system, be-
lieving that he is not subject to the
same conditions and limitations as
others, he will discover his mistake
without fail, but perhaps not until he
has done irreparable damage to the
retail trade of his section.