The Oskaloosa herald. (Oskaloosa, Mahaska County, Iowa) 1885-1919, 1915-05-27
Address by H. G. Larimer at
Southern Iowa Editorial
Gathering. b,
IOWA SELLING COST LESS 4.
THAN ANY OTHER STATES
Advertising 10 a Means Of Conveying
Thoughts About Things People
Want, Or Creating a Want
BY Teaching People Tho
Convenience or Saving. ,

about the high cost of living. about
the costs and expense OF distribution.
College professors and students of
economics have laid this increase cost
to various causes. Some would have
you believe that transportation of the
railways, hauling the raw material
one way, and the finished product the
other Is the cause. Others say the
middle man" gets too much. Just
who they mean by the middle man"
! am unable to discern.
That people generally demand q
better service, and insist on paying
others for many things they could
Well do for themselves will, / think,
be acknowledged by all.
However, much of the talk is silly
and the mere guess work OF the unin-
formed. a.. ..
There are several links in the dis
tributive chain between producer and
consumer. They are there because
they perform a certain service neces-
sary to the handling Of that particu-
lar product. They are paid just in
proportion to the service they rem
der. II they oyercharge, they elimi-
nate themselves, because the product
finds, way around them to the con-
sumner that is less expensive.
The convention promises Of politi-
cal parties, the mouthy vaporings OF
the demagogue or the muckraker will
not solve any OF the problems OF dis
tribution, or the increased costs of
living Certain economic laws gov
ern these things.
There Is common fallacy much
talked and written about termed an
unnecessary expense" known as the
middle man" Commercially speak
ing the only man known to business
men as the middle man" is the
wholesaler. He is the man who han
dies the manufacturers products and
diGtrihntas IL to thN retailer ..'-~.
Most of the stores in Iowa do a suf-
ficient volume of business to enable
them to buy in original packages or
case lots that are never opened from
the factory to the store. The whole
saler only acting as a clearing house.
and his commission or profit is so
small that you find 1t difficult to un-
derstand how he can afford to do his
part for the little he gets out OF it.
It may be surprise to some OF
you to know that this wholesaler per-
forms a service that actually reduces
the cost OF distribution. His credit
department and selling forces do the
work that several hundred factories
would be compelled to maintain in
IN
institution that acts as a clearing
house for them. He performs this
service for them for less than they
can do 1t. He in some degree per
forms some of the same kind OF serv-
ice that the retailer does. Both are
necessary links In the chain Of dis.
tribution and to eliminate them would
increase the cost OF merchandise.
OF the many good things that Iowa
enjoys, there is one that stands out
boldly. 1t costs less to distribute
merchandise in Iowa than any other
State in the Union. The per cent OF
loss to wholesaler or manufacturer
through insolvent retailers Is the low.
est.
A product OF merit finds the de-
mand more nearly constant. There
is less change to other brands or
makes, and the conditions more sta
pie and less fiuctuating, this enables
the wholesaler to figure more closely
his selling expense.
The people read more, are given to
closer investigation. They are intel
ligent buyers. They read about things
they want or are going to buy. For
articles OF merit and necessity, more
buying impulse can be created per
dollar OF selling expense, than in any
other business zone of the United
States. The element. OF risk and
chance is less. That no very large
city overshadows the corn belt is a
fortunate thing for the consumer.
II Is commonly believed that goods
can be bought cheaper in the larger
cities. This Is not true. II costs
more to distribute merchandise in
New York than any other place in
America, yet, It is our largest city.
Goods are sold cheaper in Iowa and
the middle States, The costs of dis.
tribution lis, much less than In other
portions OF, the United States, q is.
OF the elements entering into the
distribution what is known as the
selling forces" or expenses will.
think, interest you the most. The
expense to create buying impulse
or to direct the demand toward the
nearest and best place to get the de-
sired service Is an item OF salesman
ship. Expense Of salesmanship Is
composed OF personal salesmanship
and publicity, or knowledge circulated
about the product to be marketed.
The more the consumer knows about,
or has favorable opinion about
product, the more II reduces the cost
or personal sslesmanship and reduces
distributive costs. aas asge fs.i
Advertising Is cost chargeabls to
Aha understandable expau4e. II II q