Amarillo daily news. [volume] (Amarillo, Tex.) 19??-current, 1921-02-06
MERCHANTS he RE
IN FIRST TRENCH
N RETAIL BUSINESS
BOSTON MERCHANT DIsCOuRsES
on CONNECTION DEALERS 10
MERCANTILE GAME.

The following interesting business In.
terview has recently been given out by
Edward a. Fllene. president II VIM.
Filcne's Sous Company. Boston. Mass.
achusetts:
The retail merchant occupies tho
firnitsne trench IN business II II he.
ant not the manufactures ~ the whole
saler. who has 20 bear the brlfnt of pub.
lie dlaipproYal when prices rise. and
who In criticized when price rcccsslOns
In the primary markets are not immr
dlatcly reflected In his stock. The pub.
lie does not stop TO realize that the re-.
taller has "a plnce his orders months
ahead NJ MS To have seasonablc goods
on hand when the public wants 60 buy.
and that his selling prices have 20 b.
based on his costs II he IL to come out
even at the end 81 the year.
Just nj present the country II In TIL
midst of very considerable down
ward price movement. This In the rc.
suit OF combination of physical facts
and mental reactions. People are re-
fusing 10 buy except nj greatly r..
duccd prices AZ rcault. retailers un.
fortunate enough 10 be heavily stocked
with highprlced goods are having "a
make substantial sacrifices by marking
down 20 what the public regards as
reasonable levels Other retailers who
have placed orders with Jobbers q"
manufacturers Tor future deliveries n.
the old prices have cancelled these or
ders and have been properly criticized
for NJ doing. II should be- remembered
In this connection. however. that In tn"
last few years. when prices were ris
ing.. many manufacturers set very
had example by rcfusing 20 deliver
gcods ordered In advance nj the agreed
upon lower prices. Cancellation o. dc.
liveries In u rising market In no fairer
than cancellation OF orders IN falling
market.
II a retailer could turn" his stock
every two weeks. he would have little
60 fear In a falling market. This is. Of
course. Impossible. and nc finds him
self therefore faced by two dangers
a. that of losing IN his stocks on hand
as prices fall below his costs: t2l that 81
losing on goods ordered now for futur.
delivery. when prices may he even low.
or.
No general rule can be- invented
which viii guarantee the rctailc.
against loss under present conditions
The best policy to follow IN one thar
enables MIN to keep the confidence OF
his customers IL Is better o. take thu
necessary loss now and thereby keep
on god terms with your patrons than
To tnkc-tr possibly larger loss later ana
incidentally lose your following. More.
over. this larger loss In more than like
~ to come. especially on winter goods
which few. II any. carefully thinking
BUSINESS men will carry over To next
season. With an early Faster and tho
possibility OF mild winter, II seems
apparent that the time a. take the ne
ccssary mark downs IL now. The mcr.
chant who has sold out his high.prlc a
stock. or who can do so at once, VIII
be- In a position In February "a make a
profit on the goods he can then buy
at reduced prices.
The retail merchant can keep the con.
fidcncc 81 his public by bnsipg his sell.
ing prices on replacement, costs Such
a policy has n much better effect on
public opinion than the more spccta
cular method 81 having a series ~ spe'
cial mark.duwn sales. Drastic price
reductions lead customers TO suspect
inordinate profits and to question the
intrinsic value OF the goods thus re-
ducccd.
II retailers generally would agree "a
such program 1, might be possible e
get the cooperation 81 manufacturers
in plan which NJ first sight may seem
wholly impractical bu, which would re
far 10 restore confidence. This plan ii
for orders 10 be placed now for future
delivery under an agreement whereby
tho retailer and the manufacturer wall
each share. IN predetermined proper
ton. the loss caused hy any decline 81
the market prior 10 delivery Sueh "A
agreement would stimulate the imme
diaie placing Of orders. which would
give employment 20 thousands AL
thousands Of mill hands and skilled