The Indianapolis journal. [volume] (Indianapolis [Ind.]) 1867-1904, 1900-10-21


cf French china dinner-ware and rich cut
glassware are now retailed al 3 per cent.
less than the prices Of ten years ago. This
reduction is TO. be credited entirely to the
influence OF the modern retail store.
1t can also be stated with fair degree of
certainty that tie net profits OF the sales
departments Of the great retail stores vary
from 20 per cent. on the dollar Of busi-
ness done Thus it viii appear that the
modern retail merchant IS giving public
service At a rate Of profit small as to
be merely a commission.
THE oNE-PRIcE SYSTEM.
The department store has been a great
factor in establishing the one-price system
IN the retail trade The minute that one
store adopts good system the store that
completes with IL must do the same thing.
The one-price system knew Of when was
n boy was that they did not change the
price, Of a thing except as the customer APP
peared. A ragged. poor man, mechanic.
comes in and the price OF the trousers is s..
II rich man were 10 come In they would
charge him $40. That was the system as it
first existed In the one place near the store
] was brought up in. When we started
this business went to the far extremes
OF everything. Not that we were one bit
more honest than other people. but it was
my idea TO be a real good servant, believ-
ing II L could be a good servant to you you
would be hunting me up when you wanted
anything I had So, the first thing you
must have IS the truth about the things
you are buying. 1t must not be one cloth
when you want another. You may find me
out and 1 would lose you. Then we must
make the right price. Third. you must be
satisfied with what you buy. II somebody
down at your house did not want II IT would
always be bother to you; you would hear
of it a good many times. That is my bust
ness, and we had great deal better have
the goods back than have you keep them.
So, when you come to consider the condi-
tions. the proft on sale is small you do
not feel when you are giving a man back
SO that you are losing 81 as the old way
was. You are losing 80, 60 or perhaps 20
cents. What is that If the customer is sat
tsfied.
EFFECT OF LOW PRICES.
The reduced prices Of merchandise slim
ulates consumption and increased employ
rnent- More labor is required for produc-
ton. transportation and distribution. The
last element is highly important especially
IN the selling. handling and delivering of
merchandise from large retail stores The
personal comfort and taste involved in the
vast majority OF retail transactions creates
immense detail that requires great num-
b-s OF persons for its administration. and
increases enormously the labor required for
distribution OF merchandise.
Great retailing in this country is the
product Of competition in buying and SELL
ing There does not exist in retail business
any known combination for the control Of
any merchandise nor for the fixing of the
prices, IN the interests either OF mer-
chants or manufacturers. The entire prac-
tical influence of the modern department
store Is powerfully against monopoly in
any branch of manufacturing or selling
Retail merchants. in common with the pub
lie. may be the victims Of combinations to
control prices and create profits, but they
are not, and never have been, parties to
such. measures. at least so far as publicly
known.
Public service is the basic condition OF
retail business growth. To give the best
merchandise at the least cost is the mod
err retailers ambition. He cannot control
cost OF production, but he can modify cost
of distribution and his own profits. His
principle is the minimum Of profit for the
creation OF the maximum of business The
keen rivalry OF retail trading is inimical
20 a combination between different and
competing firms and companies. The vast
varieties OF merchandise required by the
modern retail store make combinations for
the control OF manufactured articles and
their prices practically impossible
NO TRUSTS POSSIBLE.
II is possible for retail merchants in sew
eral localities to combine purchases for the
sake OF economy, but such cooperation
differs widely from the organizations COM
monty known as trusts. Neither would il
affect retail prices save to reduce them
The control OF the retail trade rests en-
tirely upon superior service and lesser
prices 1T can never be vested permanently
as possession in any single hands, nor
in any group OF organization. Popularity
founded upon respect and trustworthiness,
Is its only power to command Success in
retailing has its intense individuality
When personal ability and character can
be permanently translated into a franchise
retail business can become a valuable
entity. Until then merchandise real estate
and plant are the only items that have
commercial value and are the only real
assets.
That society in general is injured by the
united store system is not fact Business
Is generally a matter of the survival of the
fittest. Every great retail store is simply
small store highly developed. Its real
foundation is the old-time crossroads coun-
try store 1t is the wholesale Jobbing bust
ness and the organizations Of middlemen
that have been mostly affected by the con-
solidating of retail business The retail
store has supplanted the jobbers and
agents 5ecase they are no longer needed
For local convenience and preference of
direct personal service a small store will
always have its place. and the interesting
figures Of annual mercantile tax lists of the
cities Will show the immensely of its num-
erical growth In growing cities. in spite OF
the continually growing department store
1t may be well considered whether the
changes cccasioned by the rivalry OF larger
stores have not been of real advantage to
the retail trade in retiring adventures and
spectators. always detriment TO helpful
business and honest trade
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