Saturday news. (Watertown, S.D.) 19??-19??, 1915-02-04
CATALOGUE HOUSES AND THE RETAIL

CATALOGUE HOUSES AND THE RETAIL MERCHANTS.
The press il making much ado over the report that the Sears
Reebuck catalogue house in Chicago transacted business aggregat-
ing in volume approximately one hundred million dollars for 1914
and that its net profits, above its regular dividends, amount to about
SIX millions.
II is not particularly surprising if true. The net profits arising
frsn a business depend somewhat upon the volume. Ordinarily
speaking, the overhead charges (such as rentals, light, heat, sal
aries for superintendent and managers) are substantially the same
whether the volume be a quarter of a million " merely hfteea to
twenty-five thousand, referring, OF course to the average business
house in the smaller cities throughout the country. These expenses
would amonnt to no more had the volume been a half million.
Expenses a Large Percentage.
statisticians claim that it costs the average merchant about
twenty per cent above the cost of his goods to conduct his business
each year. That is to say, the average merchant in the average
town must make a profit Of at least twenty per cent above the
cost Of his merchandise in order to live at all-in order to continue
hm existence as a business man.
On top of that he mast make a sum sufficient to pay dividends,
70 allow for wear and tear and depreciation, and to give him a profit
on his investment and to remunerate him for the time and energy
expended in conducting the business.
Wehold no brief for any retail merchant, nor have we consulted
any with reference % tins matter, but a few observations and com
pansons OF our own may serve as a reminder OF some OF the diff
culties under which the local merchant labors and which do not
confront the catalogue houses.
How Buying Has Changed.
In the olden time the professional man or the laboring man
the capitalist would step into a store on his way home, buy a
dollars worth of goods, tuck it ander his arm, and proceed on his
Does he pursue this system nowf Not on your lifel His wife.
or his daughter, or his butler, or the family cook, rings up the store
and orders q quarters worth of something to be sent up right
away
Maybe, after lunch, the husband and father is asked to call at
the same store and order another quarters worth OF something
else and is reminded to be sure to tell the clerk to hasten it along.
As the dewy eve draws nigh the cook thinks of another quarters
worth that she forgot to order earlier in the day, and that, too, must
so forth ON the last delivery.
That makes three deliveries which the merchant is compelled
e make ct this hospitable home whereas in former times he made
none.
The Cost Of Delivery.
Experience shows that it costs the local merchant approximately
Ayc cents tor each delivery, which means that if but a dollars
worth ct goods has been ordered in the three deliveries, fifteen per
cent q the gross cost to the purchaser is eaten up in the delivery.
Uncle Sam makes the delivery for the smaller items under the par
cl post system and the railroads carry the bulky stuff as freight,
te purchaser paying the same.
Reaching the Consumer.
But there is another factor which enters into the business under
discussion, and that i . matter of reaching the consumer with such
information as fits his case. The big catalogue houses do this; the
average rural merchant does no.-44%%
Within the past six months, in WatertoWn, there have been
mailed several carloads Of catalogues, the postage on which ran npI
anto the thousands Of dollars. These catalogues went everywhere
fAnily reminders Of the things needed with the prices plainly indi-i
scated.
How Many Merchants Get Therea
How many local merchants throughout the country ever get!
ssamliar information, or anything approaching i, into these same
We are not making ! plea for more extensive newspaper ad-l
Syersasng: So Tar as the Saturday News is concerned, it has no
complaint 10 enter against its advertisers. AS d rule, it has been
literally dcalt with BY the local business houses.
But II goes without saying that the average merchant-not i'll
SSNatertown especially, for We are generaIzing herein, not having
% mind ay particular city ~ town-rarely appeals directly 70 the
consumer. He thinks his place Of business il known ana that iH
sanybody wants any OF his goods he or she will come and ask tori
#them@s
Living Oh one Anoshar.
Too many business men Iii too many Sc our cities ana towns are
lilmitssdi S way.s We are ns speaking with reference & mere news
.papSr adverNsing---w have the whole scheme 81 publicity Isl mind