Evening journal., 1918-02-21
CUTTING cost Of
DONG BUSINESS
Expert Tells City Merchants
How They Can Stop
the Leaks
'SALESNANSHIP' IS
TONIGHT'S SUBJECT

James W Fisk, who lis conducting a
Business Institute In this city under the
auspices OF the Mercantile Section Of
the Chamber Of Commerce, addres ed
retail merchants OF the city 10 the Hotel
dupont last night on Cutting the Cost
: OF Doing Business Stopping leaks and
being careful Of expense and expcndl-
lures Of time service and money was
the remedy that he offered the mer-
chants for cutting down their expenses.
, His address was an unusually interest
ing one for the merchants
In his address last night he coniended
- that each business should carry It's own
b weight and that there was an appreci-
able monetary loss involved IN the loss
= OF time OF employers due to the lack of
convenient arrangement Of stocks, ani
their not being so placed as 90 mini
4 mize the time and energy required for
! clerks to secure and display or sell
T them. He pointed out that the mer-
, chant purchased the time and encrty
@ and Intelligence and loyalty Of the clerks
. and other employees, and that II tho
e merchant were a party 20 tho wasting
s Of that time and cnergy through faulty
% or inadequate arrangement Of the gOoas
b The salespeOple were required 10 handle
r he could not have any legitimate pro-
test II the time for which he paid them
e was wasted with a corresponding in
crease OF selling costs. he discussed the
= effect Of frequent and lnfrequcni turn
3 over" OF stock upon the expense ac-
count, and pointed out many ways IN
+ which frequent turn-ovors could be ex-
pedited, with corresponding dimlnullun
f. Of expense. and equally Corresponding
increase Of sales and service TO the pub
c llc
Mr.. Fisk told the assembled mer-
chants Of many small leaks. which, IN
The aggregate, made a material impres.
sion on the expense accounts, and
showed them many new, but simple
plans whereby, without any increase
OF salary or advertising accounts. oct.
] ter results could be secured through
the more efficient utilization OF the ser
I vice Of employees and department heads
? tie showed them where the adoption OF
such plants would mean the reduction
, Of The percentage. OF operating cost.
) without detriment 70 anyone concern
ed, employe, public or merchant, ant
invited their attention 10 the fact thai
operating expenses included the cost O
missed opportunities. He also told then
OF the expense Of the inactive dollar
rendered inactive by overstocking
goods being held too long. and throuel
similar causes. lie urged his hearer
4 10 mark their goods with a time limit
and 70 consider the carrying expeus
carefully, because II was really remark
II able how Il multiplied unless careful
- supervision was continuous IN connec
anHfN D. HHaaaa IA
ID selling expense. In this connection D
< cited another bad feature OF keepin
~ capital tied Up too long or too eXier
~ sively in large stocks. and that was IN
y loss Of Its earning capacity with ref
- erence 10 trade discounts for On
VI prompt payment Of bills These dis
ie counts, he said. while small in~them
Is selves individually, made an apprecI
able total In the course OF a year
s. the average business.
10 Ouoting from statistics compile
m from 1000 stores Of various lines. p
Is said that the net cost Of operating ax
T. penses amounted 20 27is per cent
10 based on the following figures Rent.
per cent. advertising, per cent sal
&, aries. A per cent, OF which 3 per cent
y was productive and per cent n0n-pro
, ductive: heat and light = of 4 pc
v cent; delivery. per cent T; insuranc
le ard taxes, 1 per cent; general expense
rs AZ per cent, and In this connection d
lo warned them 20 be careful OF their so
D. pervision OF this item, because II
ne were not closely guarded 10 woul
or cover, like charity, a muiiltude OF sins
h. / Depreciation and shrinkage, IL pc
" cent bad debts. y Of 1 per cent; an
"A supplies, such as twine, wrapping 20
~ per and simlar articles, p Of per cen
- In other words. that the invested dol
! lar Of the merchant really represente
!. by a fraction over 70 cents He told {
" cooperative delivery systems, whicl
in number Of places where he quote
IT, had reduced the cost OF deliveries ov,
r 80 per cent. annually and offered 10 sui
o. init plans COVERING such a system. II
IL were desired, without expense 10 loci
IS merchants He urged economy in th
III use az light and fuel. especially the us
~ OF light in stockrooms and smila
H. places where Il was unnecessary q
nj carelesslv used: or greater fire pr0tel
IL tion in order 20 reduce the fire ris
~ and Insurance rates. He urged careh
consideration Of the cost OF carryin
!, and handling long charge accounts, Oh
~ cost OF which increa ed In direct pro
portion 10 the length OF time they WEI
carried. Hidden leaks Of various cha
acters were discussed thoroughly. IL
'i- cluding odd lots and sizes Of good
ln which. often. were shunted into QUITO
~ way corners simply because the boxs
10 may have been soiled or the package
oi broken. while the goods remained q
GOOD as ever; the lack Of care Of mel
= bchandlse, foreotten charges. overstocl
m lng and similSr sources Of additions
to the expense account Wrong method
e. Of selling and wrong arrangement
Ia stecks. with that greatest OF errors
retailing. lost customers, also came
Ily for their share OF the discussion. an
no their causes were carefully diagnose
re and remedies sugge7ted
ne The subject for the meeting tonigl
ar Is Helping the Goods Sell Themselves
NO While this talk is especially for sale
M people it is one that viii be OF inc
~ est % every department manager an
IA merchant. It has 10 do with mammal
~, selling influences Of the store such
~ counters, display cases. the shelf o.
Ne rangement Of stock. the showing
goods I'm the windows as weil MS meil
,lu ods OF personal demonstration Su
We gestions will be made for dispIayir
as noerchandfes s0 that the showing mi