Shoshone journal. [volume] (Shoshone, Idaho) 1884-1931, 1921-08-05
SECRETS OF SUCCESS OF
RETAIL MERCHANDISING
Continued from first page

SOOuS HiON L lIOill Tile SIlclN
His house benefits thereby, al
so does he. If he dosen't bent
fit the retailer he is q detrimeI
to the commercial world an
better be in some other line
When we get cooperation al
the way down the line we pas
the stage of unjust criticism 0
the retailer and get no adyers'
criticism at all.
Scores Haphazard Methods
THE business man gets les.
outside aid than any other call
ing in the country. We have
our agricultural colleges for the
education of those seeking to do
scientific farming. The farm
ers get aid from the federal
government in devious ways.
Where can the merchant get
such aid? Do you know? Most
! of them work haphazardly
and heard one business ex-
pert say it was astounding that
so few merchants knew the cost
Of doing business. At one state
convention of North Dakota
business men but Is of those
present responded to a question
by saying they knew the cost of
carrying on ther business.
Very few of the merchants
know the percentage upon
which to compute merchandis-
ing cost Here is an example:
Il was in Salina, Kansas. a
short time ago nd was attracted |
by a bulk coffee display in a win
dow of a large grocery store. |
No price cards were visible, and
that struck me as peculiar. The
whole advertising value of the
display was lost. | went in and
asked The proprietor if he had
carried any advance Advertising
or had any demonstrations? He
told me he had not. | asked him
why he did not advertise and he
said because he had never
learned to write an ad. asked
him about his business and he
told me that he lost money the ,
year before, but said he didn't {
Know how he had done it as he !
lad marked his stuff up3O9o {
md had found his cost Of doing
business 26%o. His turnover !
Nas too small and he based his q
'osl Of doing business estimates
lpon his cost price of merchan-
Use instead of cling price. l.
Wings which cost him dollar =
vent up 300, or to S1.3O. His C
ost Of doing business was $3.50 d
nd 26go of $50 was more t,
han his margin between cost il
nd selling prices. The things D
e sold at $50 should have
old for SLAP. All computa- tC
ons must be made upon the il
cling prices. In order to do Ii
usiness upon 53h96 basis W
on must add 500 to your cost s.
rice. The money returned to k,
on in sales is the basis upon er
hich to figure all of your com al
ltations. Yet nine out of ten w
erchants guess at the percent to
&c of their selling prices. Or
We are on trial and we have w
It to get away from guesswork en-
e must know where we stand re
he man who survives will be oh
e man who knows where he is dit
40 knows how to mark his
erchandise. It will be a sur
val of the fittist. whether it
The independent merchant /
the mail order house or the 9
ain store. (,
FavOrs Cash System. =
Personally I believe in the n
n system of doing business. t
ing credit only upon the con- G
CT or lnstallment plan, or by II
.e, and then not for more b
N 30 days. The day of the "
IN book account is going, if il
gone. The open book ac- "
mt system makes a dollar L
rth % cents in GO days, and a
most cases worth about pc A
he end of the account. NJ
The cash system. 7 bheIievo pl
he basis of the great advan- N
- possessed by the mail or was
house or the chain store Con
r the retailer. They have The No
ley in hand. They have no GOO,
accounts They have Oak
i is5l cash l 10 carry Them at it pi
rs. II is now said lhot sIe
$ < Roebuck, win all he Who