Evening star., 1914-05-16
WHAT It COSTS
TO SELL THINGS
Seems to Be Most With Jew
eIry and Least With Groce-
ries, According to Expert.
From System.
NEW YORK.

From System.
A recent compilation of the cost OF
doing retail business in several different
lines shows that smaller percentage OF the
selling price is used UP in d;sposEG ui
groceries than of any other mertharG.sc
This compilation, which is based OF .Ae
figures supplied by a large n6Ebcr al
merchants in various parts OF the eo.'-
try and which may. therefore. he ;alsci
as indicative of the average cost of CO.
ing business in these lines. shows tina;
in selling groceries only 1871 pcr cons
of the sales price Is absorbed oy Ia. -
pense account. Strange as il may seem.
the highest cost of doing business tdat
is shown in the list does not set oPfo-
site the department store. for tie IN
for the expensive conduct of business S1.s
to the jewelry shop. This business re-
qurcs 25S1 per cent of the average SELF
ing price of the merchandise to carry it
on.
The list in question contains the eX-
pense percentages of eight kinds of re-
tail business-drugs, jewelry. groceries.
shoes. variety, hardware. dry goods and
furniture. Ten different kinds of cx-
penses are listed for each, and these are
rent salaries, advertising, heat and light.
deliveries, supplies. insurance and taxes.
general expenses, depreciation and shrinks
age and bad debts.
In the matter of rent the figures show
that first place. strangely enough. goes
to the variety store, where it consumes
AL per cent OF the average selling price.
Following it comes the drug store, with
4.O2 per cent: jewelry, with 3.9S per cent:
furniture, with 3.44; hardware, with BAL:
dry goods, with 3.24; shoes, with 3.2l.
and groceries, with 2.05 per cent The
palm for the highest salaries goes to tht
jewelry store, where this cost amounts
to 1896 per cent OF the selling price.
Closely following comes the drug store.
where the salary expense Is lOgo per
cent. Shoe stores come third with 1o.5l:
hardware fourth with lo.ll: dry goods
fifth with 9.65: variety sixth with s.s5:
furniture seventh with S.13, and groceries
last with 7.96 per cent.
Despite the belief inspired by the big
department stores of this city that this
branch of business activity goes in more
for publicity than any other. the depart
ment store is ranked fourth in the ad-
vertising comparison with an expense
approXimating 1.G1 per cent OF the sale
price At the top OF the advertising lsi
comes the jewelry stores again. with $50
per cent. Second place is occupied 10y
furniture with 2.72 per cent, while third
place goes to drugs with l.O per cent.
Shoes come fifth with 165, while the last
three places are iilled. respectively, by
variety with 1.52, hardware with liz and
groceries with 81 per cent.
The shoe stores lead in the matter "i
heat and light. spending for these ne
cessities 1.10 per cent of the price at
which the goods are sold. The Others
follow as named: Furniture. 80; va
riety. 81: drugs, SO: jewelry, 81. dry
goods. "a: hardware, AZ. ana groceries.
80 Deliveries is tho only item IN
which tn grocery store heads 'ae l!st;
the statistics showing an expense OF
2.o3 per cent. Second comes the dry
goods store with a rate approximately
only half as high. or l.o2 per cent.
Furniture follows with "a per cent.
hardware with 81 per cent; drugs With
81: shoes with .i6: jewelry with ."s.
and variety is last with 90. The last
named stores, as is well known, make
no deliveries.
In the matter of supplies, jeweiry
again tops the list, this time with "
go followed by furniture with ~
dry goods with IS, groceries with .5.
drugs with 30; shoes with 80. ana
variety with .2l per cent. In insurance
l57 per cent. The other lines foilnw
in the order named jewelry, 1.S2;
drugs. 1.21: dry goods. los; shoes. LOS:
hardware. 80: Narietg: IS; aud gro
eral expenses are claimed by the drug
stores with 4.49 per cent followed by
shoes with ABS: dry goods. LIS: jewel
ry. 800; furniture. 1.1o: hardware. l.o1;
- Il
Depreciation and shrinkage hits the
furniture stores hardest, this expense
amounting in these enterprises to PA
pei. cent of the selling price. Next to
furniture comes dry goods with LII:
next to dry goods comes jewelry with
95 per cent. Groceries are fourth
with 10 per cent; hardware fifth with
So per cent; shoes sixth with 80:
drugs seventh with A.. and variety last
with the low figure of .0G per cent
The last item taken up in the list is
bad debts, and in this the furniture
stores again top the list with 1.S4 per
cent. Second come the grocery stores
with AZ, followed by hardware with
81: .dry goods and jewelry with Il:
drugs with ~: shoes with 10, and
the variety store again last with 0.oo.
due u ne fact that this business is
conducted on strictly cash basis.
summarizing the foregoing figures by
addition il is found that the jewelry
business heads the list with a total ev-
peuse eaualins 25.Sl per cent OF tie
selling price Drugs follow with !; total
of .465 Der cent With the other totals.
risureS in Der cents. as follows: Furni-
tu-,. .3.%l: shoes 23.aa2: dry goods
2S.65: hardware, 1871, variety. 1876,
and grocery, 1921.