Daily Kennebec journal. [microfilm reel] (Augusta, Me.) 1870-1975, 1921-01-25
Retailers and Better Business

AeClouCkS anu OCttCl DuSAACSo
The agent of the Edwards Manu-
featuring Company, in an interview
published in another column, corrob-
crates the expressions of confidence
in the business situation, now become
quite general, and gives excellent
reasons for his conclusions. In this
he alludes to the predicament in
which the retailer now finds himself.
a matter of great import at this phase
OF the price reactions.
More extended reference to. this
feature of the situation is made in a
recent statement of the president of
the VIM Filene's Sons Company,
Boston, in course of which he said:
Just at present the country is in
the midst of a very considerable
downward price movement. This is
the result of a combination of physi-
cal facts and mental reactions. Peo-
pie are refusing to buy except at
greatly reduced prices. AS a result,
retailers unfortunate enough to be
heavily stocked with high priced
goods are having to make substantial
sacrifices by marking down to what
the public regards as reasonable lev
els. Other retailers, who have placed
orders with jobbers or manufacturers
for future deliveries at the old prices
have cancelled these orders and have
been properly criticized for SO doing
1t should be remembered in this con-
nection. however, tina. in the last few
years, when prices were rising, many
manufacturers set a very bad exam
pie by refusing to deliver goods or
dered in advance at the agreed upon
lower prices. Cancellation of deliv-
cries in rising market is no fairer
than cancellation of orders in a fall
ing market.
IF retailer could turn" H.; stock
every two weeks, he would have
little to fear in a falling market.
This is, of course, impossible, and he
finds himself therefore faced by two
dangers. Cd that of losing on his
stocks on hand as prices fall below
his costs; (2) that of losing on goods
ordered now for future delivery.
when prices may be even lower.
NO general rule can be invented
which will guarantee the retailer
against loss under present conditions.
The best policy to follow is one that
enables him to keep the confidence
OF his customers. 1t is better to take
the necessary loss now and thereby
Keep on good terms with your pa
irons than to take a possibly larger
loss later and incidentally lose your
following. Moreover, this larger loss
is more than likely to come, especial
iy on winter goods, which few, if any,
carefully thinking business men will
carry over to next season. With an
early Easter and the possibility of a
milo winter, it seems apparent that
the time to take the necessary mark
downs is now. The merchant who
mas sold out his high priced stock. or
VINO can do SO at once, will be in q
position in February to make a profit
on the goods he can then buy at re-
duced prices"
He thinks the retailer may keep the
confidence of the public by basing
selling prices on replacement costs.
that drastic price reductions lead
customers to suspect inordinate prof
its. If there could be agreement
along this line he thinks it possible
manufacturers might agree respect
ing future deliveries, to.share to some
extent in loss caused by decline in
the market prior to delivery. And
he foresees trouble if something be
not done to start the flow of advance
orders soon, for a later food of orders
might increase prices again.