The Leon reporter. (Leon, Iowa) 1887-1930, 1915-05-27
The Distribution Of Merchandise.

clOtnlQS merchant Oh SudTlIOu, Ia.
Much has been said and written
F, about the high cost of living, about
the costs and expenses of distribu-
ton. 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 ma
terial one way, and the finished pro-
duct the other, is the cause. Others
say the middle man. gets too much
Just who they mean by the middle
man l am unable to discern.
That people generally demand a
better service and insist on paying
others for many things they could
we'll do for themselves will, think,
be acknowledged by all.
However, much of the talk is silly
and the mere guess work of the I'M
informed.
There are several links in the dis
tributive chain between producer and
consumer. They are there because
they perform certain service neces-
sary to the handling of that particu-
lar product. They are paid just in
proportion to the service they rem
der. If they overcharge, they elm
mate themselves, because the pro-
duct finds way around them to the
consumer 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
distributes it to the retailer.
Most of the stores in Iowa do
sufficient volume of business to en-
able them to buy in original pack
ages or case lots that are never open
ed from the factory to the store. The
wholesaler only acting as clearing
house, and his, commission or profit
is so small that you find it difficult
to understand how he can afford to
do his part for the little he gets out
of it.
1t may be a. surprise to some of
you to know that this wholesaler per-
forms 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 indi-
vidually if it were not for his big in
stitution that acts as a clearing
house for them He performs this
service for them for less than they
can do it. He in some degree per-
forms some of the same kind of SER
vice that the retailer does. Both are
necessary links in the chain of dis
tribution and to eliminate them
would increase the cost of merchan-
disc.
OF the many good things that Iowa
enjoys, there is one that stands out
boldly, !, 1t costs less to distriRaate.
merchandise in Iowa than any, other
state in the union. The per cent of
loss to wholesaler or manufacturer
through insolvent retailers is the
lowest.
A product of merit finds the de-
mand more nearly constant. There
is less changes to other brands or
makes, and the conditions more sta
pie and less fluctuating, this ena bles
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 the
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 other business zones 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.
1t is commonly believed that goods
can be bought cheaper in the larger
cities. This is not true. 1t 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 cost of dis
tribution is much less than in other
portions of the United States.
OF the elements entering into the
distribution what is known as the
selling forces" or expenses will, l
think, interest you the most. The
expense to create a buying impulse
or to direct the demand toward the
nearest and best place to get the de-
sired service is an item of saleman-
ship. Expense of salesmanship is
composed of personal craftsmanship
and publicity, or knowledge circulat-
ed about the product to be market
ed. The more the consumer knows
about, or has favorable opinion
about product, the more it reduces
the cost of personal craftsmanship
and reduces distributive costs.
Advertising is cost chargeable to
the salesmanship expense. 1t is al
selling force or salesman. 1t is less
expensive than personal salesman
ship. Where lit is used intelligently
it reduces the selling costs, because
it reduces the costs of personal sales
Personal salesmanship is |
one of the most expensive forms Of |
selling force. The pack peddlers
represents all personal craftsmanship. |
If he rents room, displays his |
wares Dl9ceS a sign over tho door |