The Barre daily times. (Barre, Vt.) 1897-1959, 1917-01-30

tleboro Rcformer.
Advertising Does Not Mean Economi
Waste-It Means Economic Wisdom.
Louis L. KRISTEN, member of tn
firm of William Filene's Sons, Boston, il
his recent address at the Advertiser,
Club OF New York, expressed some sur
prising views. He contended that WI
cannot conclusively prove that advertis
ing has reduced the cost of goods; anC
| that it would be well to hand back to tn,
public in merchandise the amount in
volved in advertising it.
| If his contention and conclusions are
correctly reported, it is obvious that al
least one man high in the mercantile
world doubts the usefulness of advertis.
ing. and is inclined to think that il
should bee eliminated. This extreme
view, however, ia scarcely to be inferred
| from the other portions of his address
as summarized and sent to the press by
the clubs officials. Mr. KRISTEN spoke
on the economic waste of advertising
and argued for truth of statement, etc.
The mere suggestion, however, by a
man OF Mr. kirstein's standing that 1t
might be we'll to "hand back to the pub
lie in merchandise the amount involved
in advertising it," is so revolutionary as
to call for comment.
The Editor and Publisher long ago ex.
ploded the notion that advertising in
creases the selling costs and selling prices
Of commodities. In this connection it
may be cited that, within space Of 10
years or 80, advertising has served large
ly, perhaps chiefly, in reducing the aver
age selling price of automobiles from
about two thousand dollars to less than
seven hundred dollars. 1t will be claimed
that improved efficiency in manufacture
and greater volume of output have deter
mined the lowered selling prices.
The modern factory, however, has been
made possible-has been brought into ex-
istence through the enlarged demand for
its product. And advertising has created
this demand Advertising is the force
that has built the greater manufacturing
plants, through providing a market for
the increased output. Every manutac-
turer knows that it costs more per car
to manufacture ten cars day than to
turn ont fifty After the original invest
ment in plant and equipment has been
made, overhead expense does not increase
in proportion to increased output. With
a possible capacity to turn out fifty cars
a day, and a market for but ten, the
must collect from the buy
ers Of those ten cars profits sufficient to
cover returns on his initial investment as
well as all overhead charges. If he is
10 bot In
put of his plant, he collects his profits |
from fifty instead OF from ten purchasers |
4 day He reduces manufacturing costs to
/ minimum through being able to utilize |
TO the full his equipment. He must, Of |
course, meet additional overhead charges, |
but these diminish in proportion to his
volume of production. The |
buyer profts--and profits because that |
is an aggressive adyertis-
r.
The department store, as distributor,
8 subject to the same economic eondi-
ions. Quick turnovers of stock, made
possible only through advertising in the
newspapers, regulate selling costs. Here,
gain, the ultimate consumer profits
through the advertising of the commodi-
les he buys.
The advertising manager of a New
fork department store discovered recent
Y that the store had in stock twenty-one
ur coats Of certain kind, priced at
bout sixty dollars each. He advertised
hem-telling all about them-why they
we're good value and why the store did
ot want to carry them over until anoth-
r season. In less than twentv-four
ours they were all sold, and some dis
ppointed patrons found other things in
he fur department to interest them.
Without special advertising these coats
lould have been carried in stock, at
ONE expense and trouble, for many
lonths; the original investment in them
'ould have been tied up. That capital,
trough the quick turnover effected by
tile special advertising, was made
valuable for other purposes. Thus stores
renew themselves" day by day. To
lake twenty-onc sales in a day, of this !
article. involved no increase of
gerhead expense; and the purchasers Sc
Ired lower prices than if they had wait
! until next fall to buy the same coats.
Advertising gives to the people infor !
alton which Is of vital interest and inn
lrtance to them every day. To elm !
ate store advertising, or advertising of
'mmodities generally, would be TO turn
lck the processes of selling TO primitive =,
put a premium on dishon-
t wares and penalty on honest ones :
ID to vastly increase the selling costs =,
I'd prices of all goods.-From Editor I
I'd Publisher.