New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1915-02-14
WHAT THE BUYERS WILL
LOOK AT TOMORROW

or distributors. and hereby recommends
that this association put upon record
its disapproval of said device as an
incubus on business. and further rec
ommcnGs that every proper effort be
made 10 discourage their use.
An address on this subject was also
given by T.. W. Bloomingdale, counsel
for the Retail Drygoods Association OF
New York. lie said in part:
! 81 believe that the coupon device IS
dishonest, because it attempts TO de-
ceive the public into believing that II
! is getting something for nothing, or at
! least that it is getting back in the
/ premium the full face value that the
premium appears 10 have. This is OBJ
/ viously impossible. because the coupon
company. in addition to the merchan-
/ disc which il offers. is compelled to
pay all of the overhead charges at
] tendan. upon conducting a business OF
/ this character. such as rent (thc Ham
| ilton Company alone claims to have
/ more than 500 premium stOres), wages
/ printing and catalogues. advertising
/ and publicity, legal expenses, freight
| and eXpressage. printing and distrlbut-
ing coupons and auditing them, insur-
ance. besides officers salaries, etc,
/ dividends and capitalization, so that
any representation that the full cost
! Of the stamp is given back 10 the Gus
toner is obviously untrue.
"But there ale other evils not d.
rectly of a monetary character that
make the adoption.o of the trading stamp
an evil 10 business. First, under this
heading, il displaces the sale OF 50
much merchandise. represented by Mr.
Kirkman as S125, 100000, which the
merchant ought TO make directly over
the counter It its normal percentage
Of profit rs a part OF his regular busl-
ness. Second, il disturbs the eOui-
librium of his business and seeks to
stimulate the sale Of those articles
which perhaps because of inferior qua
ity or narrow profit it is not TO his ad-
vantage to encourage the sale Of
"Third rs a charge on the manufact-
urer or distributor. il adds to the cost
and diverts the discount or margin OF
profit which rightly belongs to the re-
taller. or at least which the retailer
should have as a basis for his selling
price. Fourth, it attempts TO force
upon him merchandise which he can
not offer TO the public on its merit
bur which the tnoughtle5s demand, be
cause they have been deceived INTO be
lievinC that they are getting a bonus
for which they are not paying. Fifth
its purpose is 10 stimulate the sale OF
merchandise in competition with arti
cles of relative value which do not IN
clude the stamp. Sixth, it is the OBJ
iect Of the stamp company to create
public demand for merchandise con
tanning the coupons. and when such de-
mand is established the manufacture
or distributor commands the marke
and can increase his prices to thu
dealer beyond those OF competitive ar
ticles OF the same value, the retail
price remaining liked.
"In my opinion concluded Nj
Bloomingdale, "there should be a gen
oral and concerted movement on tn
Part OF the retailers throughout th'
country TO show their disfavOr will
; this method OF merchandising by re
fusing to handle articles giving ava!
these coupons, and that this point o
view should be freely expressed to dis
courage manufacturers from employin;
this device in any o. its forms"
Other speakers were Lucinda "
Prince. director of the Union School o
Salesmanship i'm Boston, ard BeulaI
KcnnarG. educational director OF III,
Department store Education Associa
: ton.