Evening star., 1924-06-16
EXPRESS AND PARCEL
POST ARE SWAMPED
Retailers Adopt New Method of
Frequent Buying in Small
Quantities.
BY j. G. ROYLE.
Special Dispatch to The Star.

SPetiai bispdtcn 10 Inc star.
NEW YORK, June 16.-The volume
of goods being moved by express and
parcel post in this country is increas-
ing by leaps and bounds. This un-
doubtedly is due to the new system
or buying frequently and in small
quantities. which has taken such
firm hold on the merchants of the
United States.
Opinions differ as to whether this
system has come to stay Some man.
ufacturers and wholesalers call it
"hand-to-mouth buying" and feel that
it will pass with establishment of
greater business confidence and price
stability. Others declare that the old
custom of ordering large amounts
in advance has gone forever from
many lines of business But at any
rate the system is in effect right
now.
Some Surprising Figures.
one conservative manufacturer es-
timated today that so per cent of the
total shipments of his factory now
were sent by parcel post and ex-
press. which represented 50 per cent
of their dollar value. Formerly e5
per cent OF the goods of this factory
were shipped by freight. This con-
Germ sells direct 10 consumers
A manufacturer of clothing, who
does most of his business with lob
bers, asserts that 40 per cent of his
shipments now are handled by the
post office and the express companies
and that these shipments represent
50 per cent OF the money value of the
Whole output.
This trend of goods movements un-
doubtedly was given considerab BILE
conslderation in the recent decision
or the Interstate Commerce Commits
sion raising express rates in eastern
territory about per cent. This in
crease in business in the east has
necessitated additional terminal and
delivery service, express companies
claim 1t is to be noted that the bulk
of goods which can be handled by
express and parcel post is manufac-
tured in eastern territory.
System Bitterly Opposed.
Many manufacturers are bitterly
opposing the tendency toward small
and frequent orders Formerly, they
say. they were accustomed to receive
advance orders for about Is per cent
of their customers seasonal require
ments The remaining 25 per cent
would be ordered as needed. but even
these additional shipments were usu-
ally hanrdled by freight.
This system. it is contended per-
mitted cheap handling Of goods and
allowed chearer manufacturing costs.
The manufacturer, it is argued. could
buy raw materials cheaper and in
large quantities if his production
were sold ahead. and could reduce
costs of each article by running at
high rate of production during his
busy season. These manufacturers
estimate the additional cost of han
rress at per cent of their cost to
the retailer. In the case of goods
sold thus to jobbers and resold on a
similar basis to retailers the addi-
tional cost would be doubled.
Retailers Like New Method.
On the other hand. the retailers
who follow the short-order plan, and
1t permits them to dispense with ex-
pensive storage space, that it pro-
tects them against drops in price
changes in style and falling off in
demand, that it cuts down their in
surance charges and that it minimiZes
the gambling risk.
These men contend that it is Of
benefit to the factories in that it
tends to give steady, all-the-year-
round production, instead of periods
VI CAFFEINE ACTIVITY ana extreme dull
ness. that it allows working forces
to be kept intact and that by quick
turnover the retailers are able to
discount their bills instead of de-
manding long periods of credit. These
factors. they feel, outweigh the ad-
ditional costs OF transportation and
the difference in price entailed by
buying in small rather than large
quantities.
At all events, the system is firmly
established as a fixed policy in many
retail and jobbing lines for the
present at least.