Honolulu star-bulletin. [volume] (Honolulu [Oahu, Hawaii]) 1912-2010, 1916-02-02
CHAPTER LXvII
CHAIN STORES EFFECT ON ADVERTISING.

modern tendency toward the yndieation of retail
into chains has much do today with the advertising prob
lens which manufacturer must face These chain outlets
change the selling conditions Also because instead of having
to persuade 700 individual store to stock your goods
need to persuade only chief buyer who will decide
proposition for the 700 stores which comprise his
dictate
The chain store element is becoming so important that it
figured today that there 5000 different chains of
stores and they include probably fifty sixty thousand retail
stores and the Kellogg people in shutting fifty sixty
thousand stores cutting down their market and they would
be glad to sell chain stores not for the fact that the
chain stores have their life and prosperity built the fact
that they buy bigger, sell and sell little cheaper If
Kellogg could force those chain stores to sell at 0c it would
be great thing for Them and that why he has tried to hold
the dealers price He has tried force them sell at 1Oc
and that basis he has been attacked in the courts for
sran of trade and he has been enoned from enforcing the
price.
prsng $4,000 retail Some of these simply the
private outlets of factories and therefore, directly
roed by the manufacturers for the exclusive sale of their
particular products Others simply retail chains which
buy the open market and sell price Their buying eff
cheney and their ability locate stores to the best advantage
gives them power offer goods at rock bottom prices
The argument of these stores is mainly that of bargain
Their avore method of driving home this point of attraction
price article which the advertising has made
known Such articles wanted and they recognized
being worth certain figure When the chain stores offer them
for less than that regular price many customers by that
fact ured into the stores The chain stores do not possess
any great advantage cost of doing business Usually the
financing of the chains involves investment which, coupled
with the usual individual stores capital might
capitalized Thus although the individual might have
actual working overhead expense to take Of he would not
have great comparative investment which to pay div
dends
Therefore, the idea that the syndicate store sell the
goods at much less than the individual seller is often
This impression is frequently created by the fact
that the chain offers few articles of well known regular price
less than usual These isolated instances make the public
think that these cut prices indicative of the superior value
which the chain stores render.
Meanwhile the Independent stores are overcoming the
start which the chains to have secured in the past few
The independents have learned many points of eff
cheney from the yndcates They have caught the details
of organization and the value of standardized ways of
ing their business These improvements making the
independent store fear the chain competition less and less
every day "@4
The public will continue to patronize the chain stores to
considerable extent But the main, human nature will make
establishments have good but these after
ALL but employees They cannot get the personal hold
their trade possible with the man whose adorns
the sign in front &c.,.
He and the other independents willing to sell the ma
ona advertised goods proper prices Such store
know that in the long the person would rather
have the guarantee of quality which from the Standard
lied than they would the few cents saving possible
under the cut price policy They know Also that the public
has more faith in their if they carry the goods of big
epue than if they seek to substitute and to force to the front
inferior private brands of their own.
Some big manufacturers have such faith III the future that
they refuse sell the chain stores for fear the chain stores will
price their product and in that make competitive
dealers unwilling handle their goods To shut off 10000
possible outlets this way takes courage. But these
acturers feel that the public wants the touch OF resi-
dent ownership well the qualtynsurance which comes
Willingness let the have advertised
goods at advertised prices.
collar the To his partner Yes wife s