Imperial Valley press., 1924-10-03

| various forms of self-helps stores
are fore-runners of other plans
which are sure to come and which
will help to transfer goods from
! maker to user on a more economical
basis. The rapid increase in the
use of advertising is helping TO get
the volume that brings distribu.
tion costs down. Direct mail mer-
chandising and new house to house
canvassing plans are other efforts
, in this same att empt to reduce the
high cost of selling. / believe that
the chain store has come stay and
that newspaper advertising cspe'
cially will be used more and more
as an economical and effective
sales agent. 1t is probable that
our great universities and technical
schools will consider distribution an
important subject and will give
much time and thought to it from
now on. The recent Baker gift of
$5,000,000 to the Harvard school of
business rather than ito any classi-
cal or technical school is indicative
of this trend.
"Stocks of the good chain stores
are high at the present time, from
an investment point of view, and
certain other chains are being pro-
NOTED largely for their sale of
stock rather. than for legitimate bus
mess purposes. Investors should
Therefore, be very careful in buy
ing chain store securities. On the
other hand the chain store indus
try is sound and is bound to pros
per.
off we are to improve the system
of distribution and reduce the
spread between the manufacture s
price and the retailers price it is
vital that many people change their
ways and begin to take a real in
terest in this complicated problem.
The cost of distribution, for instance
begins the moment the article leaves
the factory. Every railroad en-
ployce is a factor and can increase
or reduce this cost depending upon
whether he hinders or helps in the
transportation of these goods. Few
railroad men recognize this fact. 1t
is also true that few railroad Off
cials Lave done anything to help
them appreciate the Importance of
speeding up transportation so that
evel yone can save money. The
truck driver, the advertising agent,
the president, the newsboy are all
factors in this great system of dis
tribution. They can help or hinder
rs they Will. In fact it has become
far more than mechanical or eco
nomic problem. 1t is rapidly be-
coming a social almost a spiritual
.problem-w which can only be solved
when everyone involved in it rea-
Lies his position and his RESPONSE
bility and undertakes a veritable
crusade to cut sales costs and re.
duce selling expense.
Situation Challenges
"The situation presents Il chal'
lenge to the 100000 young men who
now have the opportunity of choos-
ing a vocation. Sonic of them arc
in colleges or in universities unde-
cided as to what they shall choose
as life work. OF course, they are
not all fitted to serve in this par
ticular field but to those young men
who have the qualifications neces-
sary for distribution work, and who
have a desire to be of the largest
public service rather than to make
the largest amount of money, 1
n
more effective and economical dis
tribution as real job.
"The high cost of selling is re-
sponsible in large part for the
dullness of business experienced this
year. Statistics now available clear
" show that 1924 is running far be-
low 1928. Those who forecast poor
conditions for this year have been
more than justified in their position.
The immediate trend, however, is
for the better and the speed of re-
ccvcry will depend very largely upon
our ability to solve this problem of
mole economical distribution. The
read iustmcnt is far more advanced
than it was a year ago. People
have learned needed lessons as to
'the necessity of honest industry and
thrift. The foundation is ready for
a solid and substantial advance.
During the next few months the
Babsonchart barometer of business
which now stands at 8 per cent be-
low normal will register our pro-
gress toward getting goods from
the maker to the user more quickly
,,,o,o .hoani1 -