The Bismarck tribune., 1922-05-19
AID CLUB HEAD
SEES BUSINESS
+. ON NEW BASIS
Different and More Difficult
Problems Must be Faced by
The Retailer, He Says
POWER OF ADVERTISING
c. H. Mackintosk in Address Be-
fore 200 People Discusses
Selling Within Store
POWER OF ADVERTISING

There never was time in the conf
mercial history of the United States
when it was so urgent that We busi-
ness people get together and discuss
business conditions thoroughly and
carefully said Charles Henry Mackin-
tosh, president of the Associated Ad-
vertising Clubs of the World, address
ing 200 business people here last nigit
at meeting held in the American
LEGION hall under the auspices Of the
Town Criers club. 1--WE have got to
learn to do business today on an en-,
tirely different basis than for the past
quarter of century; and for another
quarter of century to come we will
have to do business upon this new.
basis"
History. is and will merely repeat
itself with regard to business, Mr..
Macintosh said. the price rises and
falls of the past are to be repeated
again. Taking the statistics worked
out on this subject, Mr.. Macintosh
developed his ideas of the new way to
win business and to do successful bus
mess.
When the meeting opened Mr.. Mac
kintosh presented charter to the
Town Criers club, it being accepted by
Worth Lumry, president, in behalf OF
the local organization.
MIR. Macintosh dealt particularly
with retail selling and with the rela-
tion Of advertising to retail selling. He
stressed the methods Of selling in re-
tail stores, declaring that sales people
kill or make 55 per cent of the sales
to people whom advertising may have
brought into the store.
"There are just two phases OF bust
ness in America, if We make the dl-
vision general, namely, production anG
distribution" he said, Il presume most
Of YOU are more interested in distribu-
tion than in production so let us con-
slider distribution. l like to compare
the process of distribution to the Gre
ation of a vast pipeline leading from
a great tank into which the producer
nours his manufactured article. The
first link in the pipe line OF dlstrlou-
ton is the merchandise broken. Then
there ia a point of transportation, car
rvine on to the second link. the whole
sale house. Another joint of transpor'
tations carries that link on to the
great iobbing house, and again there
is a Joint of transportation which car
ries on to the last link in the pipe
line which is the retailer. Now any
ma nufacturer who thinks that he mas
made a sale because he has moved MS
merchandise out of this tank to one
or the other links of that pipe is
making a great mistake. brokers
wholesalers, jobbers and retailers 40
not use merchandise; they merely nan.
die Il Let a manufacturer move a
thousand cases of his merchandise IN,
70 the. warehouse of wholesaler anu
mill that merchandise moves along
tho nineline of distribution to the ulti
mate consumer, the only erect Is 10
clog the pipeline at that point.
ONLY Sales Thzt Count.
"rhe only sale that really counts . ,s
s.le made to the person VINO VIII
woar the stuff out or eat it or in soma
wav render the reproduction OF that
merchandise necessary The merchan'
disc must pass clear out through the
end of the pine before the sale has
really been completely made. AT the
end of the last link in this pipe OF
distribution, we have tap, anu
through! that tar. ninetv-odd Per cent
Of all merchandise sold in America
m must St pass and does pass into IT., the I,
: hands of the ultimate consumer. That
tao is the retail sales person benlno
the counter. Experiments made re
Gently have shown us lin the case OF
our experiments at 1east'. that this. It. tat y
is is lust 45 per cent omen today: thai
!, fftv-five out of ION sales made by al
: vertising are killed hv salesoeop,e ;
Advertising seldom sells goods. Ad
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