The evening herald. (Klamath Falls, Or.) 1906-1942, 1915-02-05
WHO REALLY GAINS.

'tTHERE WILL undoubtedly b
i waiting and gnashing of teet
among some OF the buying public
the trading stamp. the "mile-in
Itraver'. the thrift coupon" and siml
lar trade premiums are legislated ou
of Oregon. but from the vast ma
jority Of the people including tn
business men. there will be sigl
of relief. The majority Of the mer
chants will state, upon inquiry. tha
they signed up to issue these so-callet
'trade-getters" simply for their owr
protectiOn--for fear their competi
tor might do so. As a result, they
ARE compelled to pay a tribute from
three per cent upwards on every bit
Iof merchandise they sell. this tribute
going to corporations outside of the
state who have no other intrest In this
section than as a field OF profit for
them.
This percentage paid the premium
companies has to be met somehow
by the merchant. How else than by
an increase In price? In other words,
the person purchasing for cost at a
store not only spend the money
for the article wanted. but also pays
for the premiums they secure with
their books, or the trips they might
take on travel coupons.
The one big secret of mail order
success is that the people who send
to the mail order houses for any
goods, pay in advance for these. A
house doing cash business is there
fore able to purchase for cash, and
In this way secure many advantages
that are not open to the merchant
who sells on time, and must wait for
his customers to pay. Some contend
that prices are no higher at stores
that are issuing trading stamps, etc.,
but they do not take into considera-
tion that all those persons who Sc
cure the advantage of these premiums
Ather pay cash or in thirty days II
which enables the merchant to make
nis margin of profit a little lower
because Of the quick realization of
money in this way.
There has long been feeling that
he prices asked by Klamath Falls
merchants are too high. For that
'eason many people have sent away
'old cash to outside firms to purchase
'rticles they could have purchased
lere-and then have thought moth
ne about asking the merchants here
o carry them almost indefinitely for
groceries,, etc. These merchants have
heir bills to meet. their rent to nay
md help to maintain, and on account
4 these longtime accounts. they are
t times forced to ask little higher
rice than otherwise.
II the same man who sends his
money away will insure the local mer.
hant that he will pay cash, there
: no doubt but what the catalog
rice Will be met. and the money
ept at home. The people OF Klam-
tn Falls. In the last few months
ave learned that at stores whore
hey trade for cash. or pay up their
iirty-day accounts before the tenth
they month. they secue AZ much I
lerchandise for their dollar a. they
ID before. and In addition, some
'rt of premium.
1t is the dollar on the spot or
the end OF the month that does
lis. and II the trading stamp, ct al, II
legislated out Of the state or dis
'ntinued, and the customers continue
pay as promptly. there Is every
JASON to expect that there will come
material reduction In the price OF
'srchandise--a reduction that will
mount far more to the customer
IAN the premiums issued. for, natur-
ny on these. the premium companies
AXE good profit or they would
ot be in business.