Free trader-journal. (Ottawa, Ill.) 1916-1920, 1919-03-06
MONEY LEAKS BIG.
ITEM IN BUSINESS
SAYS S. N. FANNON
RETAIL MERCHANTS GIVEN TIPS
FROM MOVIE LECTURE DELIV.
Erred LAST NIGHT BY c. or C.
SPEAKER.

More than loo merchants gathered
In Commercial Hall last evening to-
iisten 10 the lecture by = N. ranEan
and to see the movies illus rating the
money leaks in a business house The
movie was the picture OF the days Of
business crisis in the life OF J.
White, general merchant
His tolls and struggles to keep his
business alive we've depicted, and is
harassed endeayors 10 secure loans
with which to tide him through his
crisis. The dozen little shiepng lea
Were easily recognized by every NEE
chant, through which the honestly
earned profits were streaming away.
The lessons OF these leaks We're c +
ried home by the merchants,
TWO customers III the store, three
clerks and the prorpretor 10 scg,e
them, but the proprietor struggling -
serve both we'll al once. There WIS
one situation. From the custome s.
looked at it. and same one custom er
hurry off impatiently without purchas-
ing, Wrong change alleged, and 20
record or receipt to check The refund
necessary to hold business, there VS.
another leak. In came custoh or
irate at being billed again for an al
ready paid account The store had
record, but the customer could r.
umphantiy produce reCeipted IN
signed by White" himself Owe
weight waste, short change. CEN
plants, customers estranged throGah
accounts OF Whites service given
by dispeased customers {. Q. l.
charges overlooked ana not entered
charge and goods taken items Do.-
gotten, cash out for goods bought IL
unrecorded, these and other leak
were all revealed in their natural
course OF action 1t was d movie sheH
with message and more for the mCr
chant II was movie show with
really practical lecture added for -
benefit OF the whole retail trade
Cooperation, not cutthroat com
ton, is the keynote Of toda5 S bus
ness declared Mr. Fannon. ana .e
showed further on in his address ho"
the wholesaler ani the banker arr
both partners Of the retail. merchaa.
in these days He showed how IT,
proper organization OF store the bur
den of the business can be shared bf
oil a bal Z n hot
the weight need not bear down On &
one mind which should be most fire.
of care-namely the owners. He e.
phasized at the outset the fact b .
in 1918 in the United States 1853 no 81
$40 has been lost through store lai
ures 6,49i stores being involved ia
Guiding as the principal business 2to
general stores, 1863 grocery store s.,
$40 clothing and furnishing stores, ~
dry goods businesses, and l52 harl
ware stores Little leaks for the mo {
part had sunk them all, and the hrn
dreds of other businesses which bal
failed, also.
Price cutting" said Mr. Fannot
is principal cause Of failures. IL
ting your competitor make the pr e.
is poor business Credit is important
Credit is as important as capital H.
doing business. Good business met.
DDS are essential to credit. Til"
chairman of the federal trade cos
mission has said. In the future the
business man, large or small, viii not
be able to get credit on loans unle7
he is not only sound financially hut
also able to show that he is conduc.'
ing his business inte.igently.'
A store organization plan ske ched
by Mr. F'annon for general merchant
was on these lines: First, the oWne.
with his mind freed from detail work
able to take care of the main prob
lens. and advance business on TIT
broad scale. Then the head clerk, Sd
pervising other help, assisting in buy
ing, watching credits and helping II
advertising Then the second CLERK
taking phone orders Ga man with d
smile in his voice and PLEASING
way of speaking to people for thf
work). He would also have othe'
duties, such as checking taken order.
and serving otherwise.
The third clerk would look aftel
stock, prevent shortages arising, keel
tab on SOW moving stock, report Of
conditions Of stock, etc. To the tourtt
cle~k would be assigned as his spc
ciaty window trimming and tn
watching of competing windows. Tn
delivery man would deliver, make oui
sales and get tips leading to sales
and especially note and report al
complaints. This last is important,
Returning to the leaks, Mr. Far
non mentioned the striking fact tina
one-quarter of a cent loss on eac
transaction in a store doing a turn
over of only 100000 a year woui
mean a dead loss of $213.75.
Delivery losses are exercising mel
chants everywhere, as Mr.. Fanno
indicated. He advised merchants 1
avoid long hauls, cut out unnecessar
deliveries, and watch closely for d.
Hyered goods of which no charge re-