Belding banner. (Belding, Mich.) 1889-1918, 1916-01-26
THE STORY OF THE
TRADING STAMP
AS USED TO-DAY
NOT A MERE ADVERTISING
SCHEME BUT A PROFIT SHAR-
ING BUSINESS FOR PEOPLE

lNG BU SlNESS rOR Ell IL
Ii will be of interest to many to
know something of the Green Trading
stamp business as handled by The
Sperry 4 Hutchinson company under
the direction of George b. Caldwell,
former Greenville man and well
known here. The following article is
contributed by C. c. Corbett of New
York
can remember what sensation
the giving away of Sperry a. Hutch
inson trading stamps for cash pur-
chases created when first introduced
in Boston. There were the usual pes
simistic prophecies that such an inno-
walton would not meet with public IA
vor. There were disgruntled mer-
chants who held aloof from the pur-
chase of stamps which were to give to
cash customers, carrying with them a
promise of premiums. Those who
opposed such methods vowed that
il would hurt their business and an
appeal was made TO the courts to sus-
tain their grievance. The courts, one
after the other, up to the Supreme
Court Of the United States, decided
that the idea was perfectly legitimate
and proper, and the long litigation re-
suited in an overwhelming verdict In
favor of the originators of the trad
ing stamp business, Messrs. Sperry
and Hutchinson. Ofcourse, there were
followers, imitators in a way, but 1t
required the investment of such large
capital and the carrying of such var
led quantities of merchandise that
these followers with their cheap rugs,
clocks and cooking utensils, could not
successfully compete with company
that offered every conceivable kind OF
merchandise of first quality suitable
for the American home.
To MANY minds trading stamps"
means Just an advertising scheme. AS
a matter of fact the trading stamp
is but the medium by which mer-
chant transfers to his patrons an IN
terest in some article of merchandise
which they have earned by paying
spot cash for purchases.
The term trading stamp" conveys
no idea of the transaction for when
it stands. 1t is unimportant whether
this token takes the form of a stamp
or a check, or a certificate, or some
other piece of paper, only so lar as
one is more convenient than the other.
In fact, it was the matter OF con-
venience which brought the tradlng
stamp into existence. From issuing a
card which bore numerals aggregat-
ing. say, $500, and as customer
made a cash purchase the merchant
punched numbers from the card tot
alling the amount of cash paid. When
All the figures had been eliminated,
the holder of the card was entitled 70
a choice of certain merchandise. 10
reduce the merchants expense and
trouble connected with this primitive
form of discount, and also TO make IL
more attractive a cooperative organl-
cation of merchants was formed, but
it tied up money of those interested
and took up valuable floor space 70
display the premiums.
Then came the Sperry a Hutchln-
son idea, the issuing of stamp Tor
the convenience Of all, the merchant
and the purchaser, with stores at
tractivelv stocked with high-grade
merchandise suitable for premiums,
and better ones than were possible
along the old individual lines.
This plan was an instantaneous
success.
First discountfi paid in cash,
would amount to but few pennies on
each purchase; the pennies would dls-
appear, with nothing to show TOT
them.
The trading stamp solved the prob
lem. 1t was like putting money into
bank, which could not be extracted
until it had accumulated to an amount
worth while. There was the further
advantage that with the stamps pur-
chasers could obtain an article OF mer-
chandise of greater value than they
could purchase at retail for the money
the discount amounted to.
Encourages Cash Payments
Primarily the purpose of the trad
ing stamp" therefore, is to encourage
the public to pay as they go. III
is to discourage credit. 1t Is to en-
able the merchant to have cash when
he goes to market, that he may DIS
count his bills, take advantage OF con-
ditions and buy for less. :,
Followed to its logical conclusion IT
means that the public, If 1t conforms
to the conditions under which the .
& II. stamps are issued, keeps out OF
debt. thus enabling the merchant to
sell goods for less than when he Is
compelled to wait for his pay and sui
fer a large percentage of loss by rea'
son of bad accounts.
The responsibility of The Sperry &
Hutchinson Co. behind the trading
stamp is of utmost Importance, as
much SO as is the responsibility of the
institution behind life insurance pol,
lev or the bank in which you deposit
your money. There are upwards OF
1000 stores in Greater New YorE
which give S. e. II. stamps, and tins
represents but one of the numerous
cities and towns Of the United States
The bsuiness has grown to enormous
proportions.
The "Sperry System" not only EN-
bodies the Green Trading Stamp bu
the Hamilton coupon so satisfactorily
used by many manufacturers, packed
in original packages and exchanged
for as. & H." Green Stamps at and o,
the premium stores of The Sperry &
Hutchinson Co. No other system cal
give such service.