Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-01-19
CHAPTER LvI.
GENERAL RETAIL DISTRIBUTION.


The purpose of exclusive agency plan of distribution
to the dealer to back goods enthusiastically If
he does not do that you lose 1t would be better then that you
had two different dealers in the town rather than just
So to make your exclusive agency plan out want to
keep the dealer continually stimulated to the virtues of your
products And that as rule would be done through house
organs and circular letters and to the dealer well
by personal statesmen. - '5s~:"~.s. II
In that particular SYSTEM the manufacturer sometimes
virtually finances the dealer In of exclusive
distribution the manufacturer will say, Here you put my
goods your store You won't any risk you don't sell
them will take them back If you do sell the YOU pay
suchandsueh price for such you SELL That what is
known putting goods in consignment As rule the
excusveagency plan calls for quite little tentative selling
like this, by which the dealer takes all the risk.
But in the usual plan by which the manufacturer sells to
all good dealers and the dealers sell to the the deal
takes all the risk He business absolutely for himself
He buys from the manufacturer and that where the
facer ends his part the transaction For the dealer then
takes the sell those goods He sells them for what
price he wants quote and whatever terms he wants
offer The merchandise the dealers property without
strings of any kind - .=.."
This kind of distribution must itself with the
sumner also if is to be giant Because If
dealer town. for instance handles your SOAP dealer
going to particularly push So order create demand
that will make the ask for product you must
advertise to the general public. II Il
STILL by this SYSTEM however of getting every possible
dealer that you buy the goods from you and then sell
Them able to get goods into the greatest
number of stores if your price is right possible terri
put out line of dining chars According to
the way the freight fixed you cannot possibly sell
dining chairs Nebraska if you have to ship from the
East because you have to charge the dealer there SO much
for your chairs than does the Chicago manufacturer In
other words you have got to add to your prices much
take of the freight rate Nor could sell
Tennessee because there the Chattanooga
would probably be able to sell chair for 450at could
offer the dealer for under $5Oon account of your
handicap of freight rate
AS rule when you sell by this general dealer method you
have got take the least possible profit The only
dealer will push your goods all the other dealers handle Them
that he make money your goods Your soap
say sells for and the dealer &c. Another soap
the dealer &c and that sells for BE- Another soap
costs the dealer and that also sells for nickel The usual
dealer will sell your that whenever he because
then instead of making c he would make 2c because he
would get your soap at Sc, instead of 334. D. ~
Through price then is about the only way that could
the dealer to sell lot of goods do not enlist him
active support by granting him exclusive agency 10
sell price pulls profit down to the lowest possible bot
TOM because if you sell that soap Sc you may be making only
8c per cake whereas to get c for it would
be making nearly lie on every piece =".- .~*
you rely the dealer to push your goods for reason
other than the large he will get through selling
you profit to the bone to make that posi-
be If you do this competitor cut under and your
business slides unless you turn under him. That
will either inferior quality production heavy factory
losses for you to swallow.
On the other hand you give the dealer fair margin and
make him sell your goods by making the public buy them from
him, then you constantly building up indesructble
good will create that despite dealer de-
mand you would advertising Advertising would not only
thus insure fair business profit to producer as well
the dealer but would also insure the consuming public
against any letting down of quality