Little Falls herald. [volume] (Little Falls, Morrison County, Minn.) 1889-1950, 1916-07-28

ne SCaIc highway COum1SSlOA ~ III
right, but-we get the Jefferson High
way, anyhow, so what g the difference.
1t is to be hoped that care will be
taken to see that management of the
land credit banks does not fall into
the hands Of men who are exploiters
it is apparent that the former have
got hold of the federal reserve banks.
WHO PAYS FOR ADVERTISING?
(By William Woodhead, former Presi-
of the Worldly
Business is no longer private. It is
public. At his own invitation, we have
come to look upon the modern business
man as a public servant and upon his
place of business as an institution ex-
listing to help us. And the whole i'm
preston is of the modern business
man s own making.
At about the time in the history of
bookkeeping, when one inflexible price
became the rule in all good stores, the
business man awoke to the fact that it
was possible to make people under
stand that they could buy with safety
without expert knowledge of the goods
they were buying-that they could be
brought to the thought Of relying upon
confidence in him as their assurance
that the wares he offered were worth
the price he asked.
Interest in Business Growing
About that time business men and
the pull bile began to take more interest
in each other. The business man began
to realize that if the people were to
believe in him, they would have to
know about him-for we rarely find
ourselves in sympathy with things we
see or hear about for the first time. We
are a bit suspicious at first.
This interest in business men, and in
business methods has grown partly be-
cause business has become more and
more public, business men becoming
more and more frank the while, and
because the public has come to recog-
nize business methods as an interesting
topic.
So it is natural for us, as buyers Of
things, to be interested in advertising
and in every device which the seller
uses in our service, and to inquire into
the effect which advertising has upon
the cOSI OI CuluSS we DuV.
Who Pays?
Perhaps you ask then, who pays for
advertising. Nobody pays for it if you
mean by the question to infer that it's
cost is added to the price of the goods,
for it is not.
Suppose a great store has a depart
ment whose sales are lower than they
should be, so that too much, proportion
ately, has to be charged to the salary
of the head of the department. Too
big percentage Of all the money TAX
en- in has to go to pay his salary. The
department is operated at loss, let
us say.
Now, suppose the owners of the store
dismiss this department. head and hire
a manager for the department whose
salary is a little higher, but whose
sales are very much larger. His salary
is a smaller percentage Of his sales than
the former mans salary was Of his
sales. He pays his way, and more.
Sells More Goods
1t is the same with advertising.
There are certain fixed charges that
must be added to the cost of the goods
merchant sells. He must add enough
to pay rent, heat, light, clerk hire, etc.
Out Of each dollar in sales, a certain
percentage must go to pay for these
things. But with advertising, he can
sell more goods with the same clerks,
IN the same store, etc. His sales in
crease while his fixed charges either in
crease very little or stand the same.
His advertising makes two dollars come
IN where only one came before. With
out it, his relative cost for the other
items mentioned would likely make it
impossible for him to do business at all.
Advertising, therefore, can be said to
pay toi itself. It is self-supporting.
It makes it own way.
II this were not true-if ADVERTISING
added to the cost of selling-would not
great non-advertising stores spring 40
and drive the advertising stores out of
business. %
EDITORS AT CASs LAKE AUG. Sc
CaSS lake. Jn1v 06-The a+h1oo+;o