Evening times-Republican. [volume] (Marshalltown, Iowa) 1890-1923, 1905-01-21

out of style while they remain unSolu
on the shelves. Not a few years ;so
u clothing man in this city had nearly
SlOO 600 worth of goods left over on his
hands and it took him a long u ne,
with much sacrifice OF prices, to IN
load. Here is a fixed expense oil any
where from $4,000 to $4,000. If 1t
were only $1,000 on 100000 gross sales
the expense OF selling would be nearly
II per cent. hence there must be 6. ~
per cent margin in all the $4,000
worth of goods sold in II year. III he
sells less goods the margin must be
greater. If he sells 100000 worth OF
goods he could afford to sell on an
per cent margin If his liked
expense were no greater. Now 1t
Will cost him little more to sell $780,
600 worth of goods from that store in
one wear than it will to sell $4,000,
hence he decides to advertise. He fig
ures that 500 to $50 per month spent
in circulating news about the goods,
the STYLES and the prices in his store,
Is money we'll spent, If 1t will sell more
goods At certain seasons of the year
he can afford to buy half page alver-
tisements at S2l each and cut prices
in order to clean his shelves OF season.
able goods that are likely to be left on
his hands. AS his business grows In
volume. as the result of advertising, he
can actually sell and does sell
at lower prices than the
man who does not advertise.
If this we're not true the big depart
ment stores of Chicago and other cit
les could not undersell their compete
u, TN, hl1S
for they are the stores that buy ad-
vertisemcnts two pages wide at a cost
of nearly $500 per page.
1t is only the old-fashioned merchant
twenty five years behind the times IN
merchandising who does not advertise.
Within one year the Hot Blast stove
has outsold every other stove on the
market, because with every dealers
order went guarantee to advertise
the stove for him in the neWsI apers.
Three years ago the Kalamazoo Stove
Company spent $4,000 on advertising
and it was compelled to build one fac
tory after another to keep up with It's
demand. Then it spent 100000 on adj
vertislng and could not build factories
fast enough and today has made mil
lion out of the venture selling good
stove at very cheap price. Ten years
after the war such a thing as bak-
ing powder was unknown. Dr.. Price,
a travelling medicine man, traded a
baking compound for his board and
lodging. He went into partnership
with country banker and advertised
on a small scale. The banker was too
timid for DIR. Price, so the doctor
bought him out for $1,000,000. Then
two other rival baking powders were
| put on the market and advertised
war ensued and millions were spent
| on advertising, each company trying
| to bankrupt the other, but, strange as
| it may seem, the business responded SO
| rapidIy that all made more pronts.
Then the three combined and four of
| the partners have since retired worth
from two to FIVE millions each. Sales
| of soda cracker have been known 10
gain 1900 per cent in three years, and
a shoe factory output has gained l,VVo
per cent in four years as the result
Of advertising. Nothing could be
cheaper in price than Uneeda Biscuit,
vet the National Biscuit Company
spends s1,25O,OOO annually in advertis-
ing. Creme cigars are SOLD tne
country over, yet the Tobacco
trust spends a like amount IN It's
advertising. In later days has come
the breakfast food people. Ten years
ago the original breakfast food man
owed the newspapers of this country
$3.50, 900 for advertising bills which he
could not pay He and his advertising
agency were facing bankruptcy and
| oJla fn
ers with a bold story. "Fo-ce us now
and we are ruined" they said, "and you
get nothing. Give us mora advertis-
ing and we will make good" They
cot the advertising and mace good. In
1901 this mans profits were 100000.
So might the instances be recounted
indefinitely. Today the A,mours and
swifts and Fairbanks all advertise
their beef extracts and thei, soaps. one
doctor in Des Moines has just COM
| Vuh