Evening star., 1917-04-13
PROOF THAT ADVERTISING
LOWERS SELLING COST

The rising cost of living is the uni
versal hardship of the present day. So
great and so many have these rises
been that few people stop to realize
that there have been any exceptions to
the general rule. But the fact is that
there have been numerous exceptions
and all of these exceptions belong to
the same great class-that of nation
ally advertised goods.
The present agitation on the high
cost of living has led to some investi-
cations which have brought out facts
hitherto unknown to the public Some
Of the most important work in this line
is being done by the Association of Ma
tional Advertisers. an organization of
go of the leading advertisers of the
country Mr.. Sullivan, secretary
treasurer of the association, has given
out some vitality important facts con-
cerning the relation Of advertising to
selling cost.
The old idea" said Mr.. Sullivan.
that the cost of advertising raises
prices dies hard. But the business man
knows better. He knows that selling
goods is costly business, no matter
what the goods or what the selling
methods. And he knows that anything
which creates demand on a large sea lie
and thus makes selling easier is bound
to reduce selling costs, and thus helps
to reduce prices.
But evidence is better than argu-
ment; facts are better than theories,
and we have been at great pains to COL
lect the facts. We have secured an
immense amount of data from our
members which proves that advertis-
ing does reduce selling costs and thus
tends to reduce the selling price of ad-
vcrtised goods. Let me quote a few
examples:
The makers of a famous photo
graphic camera, when they began ad-
vertising twenty-eight years ago
made one camera which took 2la
inch picture and which sold at $25.
Today they make a far better camera
which sells for $40. Another, which
took 4x5 picture, sold for $50. Today
they sell far better one for $50. And
so on through the line.
"A prominent hat manufacturer has
by means of advertising, reduced his
selling cost I cents per hat. Result: the
buyer gets Il hat of better quality at
no increase in price; this despite In
creased cost of raw material and
workmanship.
when the manufacturer of a break
fast food speciality began advertising
his goods sold at Is cents a package
Today the package is so per cent larger
and the price has been reduced to 10
cents. Again advertising did it, the
same causes producing the same re-
suits.
The producer of another well known
food speciality is selling his goods at
25 per cent less to the wholesale
grocery trade than four years ago.
Twenty years ago a nationally ad-
vertised shaving stick was sold in a
cheap metal leatherette covered box.
Today a stick containing 20 per cent
more soap is sold in a handsome nickel
box at the same price.
Then, take the most conspicuous ex-
ample of them all-the automobile busi-
ness, and compare the $4,000 or 10000
cars of ten years ago with the equally
good cars of today, selling for frac-
ton of the money. And so on through
a long list. In every case, the manu-
facturer either has been able to lower
the price or improve the quality at no
increase in price"
How has he done it? By means Of
which has created demand
on larger scale and thus permitted
and distribution on a large
scale Result: improved manufacturing
efficiency and reduced selling costs.
And all of this in the face of a steady
increase in the cost of labor and raw
which, with advertising
might in many cases have
doubled the price of the goods.
"A triumph of economical market
ing" is the only possible verdict for
in the face of these facts,