New-York tribune., 1908-11-29
TRADING STAMP GAINS
Ho7c They Help Merchant and Gus
tOmer-O11gin of Plan.

One Of the remarkable features Of modern mer-
chandising is the development Of the trading
stamp 1t is practical adaptation, for the benefit
Of the retailer. OF the CID premium Plan used with
great success by manufacturers and publishers Of
periodicals. The VITO thought OF the trad
ing stamp first recognized the value CT the premium
idea. and then sought for method of applying it
to q retail business He knew that premiums
were good for the manufa ctuTer; II So why should
they not be good for the retailer? How to apply
them TO the best advantage was the problem The
expense o. maintaining premium department
made II impractcabe for the ind vdual retailer to
adopt the premium system. except where many
stores under one propretorsh hip. Even under
that condition thera objections to the in
dividual" system. First It was found that the
plan tied up large amount OF working capital
and valuable floor space; second, the time required
to earn premium long that the average
person became tired and gave up saving stamps
or coupons. Il was necessary to adopt some other
method II the plan be made available to the
retailer and here it that the acumen of
Thomas A. Sperry, OF green trading stamp fame,
asserted itself.
He reasoned that there might be a central dis
trbuter Of premiums and a uniform coupon or
stamp, issued By any retailer against central
distributing bureau. 1t seemed logical to him that
in store devoted exclusively to premiums better
display could be made than in the individual store.
also, that a concern organized for that purpose
could buy premiums to better advantage, both as
IL
recommended the trading stamp to the retail mer-
chant and engaged his interest in this new method
of trading. Bat what about the purchas sing pub
lie? The success OF the proposition depended. after
ALL upon the attitude Of the purchase II is 10 be
supposed that the originator OF the trading stamp
had carefully studied the psychological aspects OF
his plan and become reasonably certain of its
effects That he dfd so is matter of history. The
public enthusiastically took the idea at once,
and its development was exceptional
Purchasers saw the great advantage Of being
able to obtain stamps with every purchase Of what
ever commodity; they the stamps accumulate
with surprising and gratifying rapidity. and their
interest in the plan held from the first Soon
this interest developed into habit which grew more
confirmed the premiums earned gave satisfac-
ton until 1t may b. safely said that the trad
ing stamp has become an integral part of modern
merchandising. AS evidence of the truth of this
statement. take the thirteen years experience of
the Sperry & Hutchinson Company. With the
satisfactory effect of tbs trading stamp upon the
purchaser il did not take the retail merchant long
to recognize the stimulus which the stamp impart-
ed to his cash sales, thereby enabling him not only
n discount his bills but to buy more cheapy to
buy better goods fer the same money He learned
that premiums have a greater trade pulling power
than discounts.
This. added to the convenience Of the cooperative
features OF the trading stamp plan. and the saw
ing OF space and capital necessary in the in
diyiduaI' premium plan. answered the arguments
Indeed attractive did the trading stamp be-
come that one great retail company. with stores all
over the United States and operating an 'inde-
uendent'' premium system. gave up its system In
cities where they could obtain the green trading
stamp" Of the Sperry Hutchinson Company.
Underlying these more apparent features OF the
trading stamp is the definite moral influence which
It exerts upon the purchaser Ii encourages cash
buying as against the troublesome credit system;
it ENCOURAGES the saving habit for to be able 10
pay cash the purchaser must save. Under such
conditions purchases are made with greater care,
with a view supplying actual need. The re-
taller was slo" TO recognize that the pre-
MUM constituted ever present advertisement
for the retailer who had given the stamps that
helped to earn it. 1t reminded the purchaser or
the advantage of the cash system Of buying. 1t Is
considerations OF this character that have demon
stratei the trading stamp plan to be the right one,
and have nrnlly established it as a part Of the
business system Of the country
An Inspection Of OF the premium stores OF
the sperrv & Hutchinson Company revealing the
range Of the business in the selection and purtnase
Of premiums will illustrate in the best way posi-
HE the advantage OF that companys plan over the
so-called individual method of premium giving