The Topeka state journal. [volume] (Topeka, Kansas) 1892-1980, 1920-11-27
Cooperative Buying VIII Not
Bring Lower Prices.
Merchants Can't Be Replaced,
Says John Wanamaker.
MANAGERS NOT A SUCCESS
Farmers Organizations May
Pay More, He Says.
1t Looks Simple, But There Are
Many Entanglements.


John Wanamaker, Philadelphia
merchant, does not believe that coop
erative buying by farmers will result
in lower prices, because merchants
can not be replaced successfully by
hired managers without interest in the
business
Mr.. Wanamaker's opinion of a plan
for farmers purchasing bureau
proposed for consideration by the
Kansas board of agriculture, is con-
tanned in reply to an inquiry made
by T. D. Hammatt, assistant secretary
OF the board, sent to men of wide
business experience.
I'm recent years many cooperative
buying and selling associations have
been operated in Kansas which, their
patrons believe, have proven very sue
cesSful"',' said Mr.. Hammatt. 1T Is
acknowledged, however, that there are
many difficulties involved. Mr.. Wan
amaker's views present that side OF
the question clearly"
at may as well say at the outset"
writes Mr.. Wanamaker. that under
present conditions of the commercial
markets thruout the world believe
the farmers organizations undertake
ing cooperative buying will in the
long run find themselves obliged to
pay more for their supplies than they
HOuAQ WHEEL buyAA5 AAOAAA AAOANSS csA-N
conscientious merchants.
1t Looks Simple.
''When you go into cooperative
buying it looks very simple, but you
will find yourselves obliged to do many
complicated things. You will have to
consult the wishes of all the individ-
ual members of your organization
concerned; you will have to consult
their individual and particular taste;
instead of combining your operations
merely to recognized staples, which at
first would seem to be few in number,
you will very soon find that you Will,
to avoid serious and actual disrupt
i've dissatisfaction, be obliged to pur-
chase and keep on the shelves OF your
storebouse an immense variety OF mer-
chandise involving naturally an i'm
mense outlay in cash.
For the proper selection, purchase,
assemblage, care, selling and dlstribu-
! ton OF this merchandise among the
members of the society you will have
to employ at least one very high
grade man with a considerable staff
of high-grade assistants to direct the
working forces.
Expenses Are Heavy.
"You will have to pay the expense
of light. heat, water, insurance. rent,
taxes, interest, freight deliveries, pos
tage, etc. You will be obliged to do at
least some Advertising. e., you will
have to notify members of the asso-
citation as to what the store has on.
hand and the selling price that is pro-
posed.
Now, when you have done all these
things, which you will be obliged to-
do, you will have done exactly what a
storekeeper does, and you will have to
meet the same expence, you will have
to meet the same difficulties, and you
will have to mark on the same pro-
70
"But you can not do these things as
well as a storekeepex can do them.
Unless your manager is a very high
priced man he can not bring to bear
the experience and the resources of the
storekeeper in the buying market; he
can not compete, nor is he able to buy
as low or sell as low as the man who
has spent his life among the complex
tiles of the market.
Won't Keep Customers.
Another matter is the human ele-
ment. You won't be able to keep your
customers. >ConsufnerS want eager
service; the man they are buying
things from must show a lively and
enthusiastic desire to please them.
There must be a dream, a vision and
ambition behind the management;
there must be a spirit of organization
and a desire to excel. This is all
theoretically possible in a cooperative
store, but in practice it does not occur.
There is life in the business of true
merchant, there is only machinery in
the operation of a society.
with prices equal Il do not believe
the cooperative society can sell many
things cheaper than an active ambi-
tious merchant can sell), g. convenient,
pleasant anxious-to-serve and anxious
to-please merchant will soon get the
business away from the cooperative
society"