The mirror. (Stillwater, Minn.) 1894-1925, 1917-10-11
in many diff
ferent forms have been
used by retail merchants

lFB&lHSHH uSeO Dy retail mercnanCS
Nv for generations. These
trade stimulants" first took the
form of extra weight; then compe-
tition evolved an elementary sys-
tenn of bonuses. The retail pur-
chaser bought a pound of merchan-
disc at a certain price, and received
an ounce of another commodity
free of cost. This premium gen
orally consisted of a commodity
with which the store-keeper was
overstocked; or perhaps it was a
new line he wished to push. Later
on, about 1875, some retail mer-
chants arranged system of pre-
miums based upon the value of the
purchase. An individual purchase
amounting to, say five dollars, car
ried with it a stock premium of,
say a pound of tea or coffee, or
some other commodity carried in
stock by the merchant.
After few years the demand
for premiums produced a system
adopted by thousands of stores in
this country. This was the card
or bond" premium, printed OH
fine bristol board and handsomely
autographed. Denominations were
from one to one hundred dollars.
These bonds we're issued to custo-
mers who had purchased merchan-
disc to the face value of the
bond" The bond was redeemable
at fixed percentage of its face
value, and the amount must be ap-
piled to further purchases of ar
ticles in the store. Another popu-
lar premium system of a few
years ago was plan by which
bonds were issued with every
purchase of fixed sum. These
were redeemed with a specially Sc.
lected stock of merchandise car
ried by the store for this special
purpose. The articles carried usu-
ally consisted of highly ornate
near .silverware, cheap furniture
and miscellaneous bric-a- brac,
heavily veneered to cover multi.
tudinous flaws. This merchandise
was purposely over. priced and it's
value fixed the rate of discount.
Jones Brothers might claim they
allowed a premium discount on all
goods of ten per cent, but, by
over-pricing the value Of the pre-
miums, and thus lowering the pur.
chasing power of the bonds" they
reduced the actual amount of dis
count of five per cent, or less.
The cash discount has always ap-
pealed to the family with good
purchasing power who bought in
dividual lots of merchandise of
some considerable value on which
the discount was appreciable. But
with the advent of the department.
al store, with its big purchasing
facilities and its low prices. came
also the need of satisfying the de-
mand of the small buyer for pre-
miums or discounts.
= 1t was impossible to figure the
cash discount on a purchase of a
fractional part of dollar where
thousands of customers demanded
quick service. But the demand
was imperative and now the origi-
nators of the Trading Stamp en-
tered into the discount game.
In the early nlnetles there were
two big companies handling the
original Trading Stamps in the
United States. These were IS &
H." and "B & NJ" Both were
we'll backed financially and for
years did business running into
millions of dollars. The original
plan was based upon ten-cent
stamp. These were in sheets of one
hundred with perforations between
Seamps and were gummed ON the
reverse side. The plan was to sell
these stamps to the merchant in