Evening journal., 1917-04-06
Proof That Advertising
Lowers Selling Cost
Some New Facts and Figures Throw a
Flood Of Light On This Subject

The rising cost Of living the great universal hard.
ship Of the present day. So great and so many have
these rises been that few people stop realize that there
nave been any exceptions to the rule. fact
that theme have been exceptions and all of
these exceptions belong to the great classha OF
nationally advertised goods
The present agitation the high cost of living has
led to some investigations which have brought out lot
OF facts hitherto unknown to the public. Some of the
most important this line is being done nv the
Association of National Advertisers an organization Of
s6O OF the leading advertisers of the country Mr. Sullivan
The secretaryreasurer of the association has given out
vitality Important facts concerning the relation of
advertising to selling cost.
"The old idea" said Mr.. Sullivan "that the cost Of
advertising raises prices dies hard the business
man knows better. He knows that selling goods costly
busnessnO matter what the goods what the selling
methOds And he knows that anything which creates
demand large scale, and thus makes selling easier
bound to reduce selling costs and thus helps reduce
prices
"But evidence is better than argument; facts are
better than theories, we have been at great pains
20 collect the facts. We have secured Immense amount
of data from which proves that advertising
does reduce selling costs and tends to reduce the
selling price Of advertised goods. me quote few
examples;
"The makers Of a famous Photographic camera, when
they began advertising twentyeght years ago. one
camera which took 1s inch picture and which sold
at S25 Today They better camera which sells
for SlO Another, which took 4x5 picture for &c.,
To-day they sell far better for $50. And so on
through the line
~ prominent hat manufacturer has, BY means Of ad
verisng, reduced his selling cost cents per hat
Resu-the buyer gets hat OF better quality at no
crease in price; this despite increased cost of raw
material and workmanship
~When the manufacturer Of a famous breakfast food
speciality began advertising, his goods sold at
package Today the package fifty per cent larger and
the price has been reduced to 10 cents Again advertising
did II, the same causes producing the results.
selling his goods at 25 per cent less to the wholesale
grocery trade than four years ago.
"Twenty years ago a nationally advertised shaving
stick sold in cheap metal leatherette covered box.
To-day a stick containing 20 per cent soap is sold
in handsome nickel box at the price.
~Then take conspicuous example Of them all
the automobile business; and compare the $1,000
$4,000 of ten years with the equally good
of today, selling for a fraction of the money
~And so on through a long list. In every case, the
manufactures either has been able to lower the price
improve the quality at no increase In price,"
How has he done it! BY of advertising which
created demand larger scale and thus permitted
production distribution n large scale. Result
improved manufacturing efficiency and reduced selling
costs And all OF this in the face OF steady Increase
In the cost Of labor and materials which, with adj
yertisng eliminated, might in many have doubled
the price Of the goods.
triumph of economical marketing" the only pos.
sbls verdict for advertising In the face of these facts