Evening star. [volume] (Washington, D.C.) 1854-1972, 1924-02-17
PRICES DROP
ASCOSTS mount.
Industry Alone in Field Not to
Charge for Better
Service.

Automobiles are the only group
OF buyers who have not been Obliged
to pay for sales and service improve
ments, according TO the Washington
Automotive Trade Association.
While there haze been similar i'm
provements in virtually every other
line of retailing, say the dealers, til ,
automobile business is unique in that
it actually sells its stock for less
i money than at any time since it's
origin.
The average person" Says re-
cent w. 4. n. A. bulletin, "is we'll
aware that increased sell ing eXpenSa
involves increased cost to the con-
sumner. and he shows healthy dis
position to pay for the extra service
he receives. But II is a gnifica Mt
fact that. while automobile dealers
have steadily kept pace with the re-
tailers of their communities. the mo-
torist Goes not find the price tags on
automobiles repriCcd accordingly.
Trend IL Revers..
LAS a matter Of fact the trend has
been the reverse for quite some time.
Dealers have even found il necessary.
in many in.:tanCes. to operate with
lower commissions. Yet all the while
the motorist has found sales and
service improving tremendously.
''Hcw is it done? That is Il ques-
ton that now interests the business
world and the motorist alike. 1t is
not many years ago that the average
PERSON considered a car as LUXURY,
Tor the price alone was enough to
discourage him. And yet in those
days Il salesroom might be the
shabby corner OF garage and "a
Gemonstra ton might be Il run around
the block.
The public did not appreciate this
any more than II enjoyed. buying its
table provisions in the days when
few articles were done up in sanitary
packages, and there Is every reason
to believe that given a choice OF
modern methods or old 1t would pre-
fer the former even if II involved
additional outlay. But the motoring
public has never been asked to do
this.
Higher Sales Costs.
Sales expenses have steadily
mounted. Automobile statesmen repre-
sent a high order of craftsmanship,
involving proportionaIIy high salaries
or commissions. The saiesroom itself
has undergone as radical change
as any to be found ia the business.
THE automobile is one of the most
expensive articles to display. for IT
not only takes up valuable space, but
must have wide margin of space on
every side in order that it may be dis
played to best advantage.
1.-The entire stock of an automobile
establishment, expressed in terms or
actual values, could be placed in one
tray in a jewelers. safe. Then, to top
this off, the salesroom must be where
1t will be seen, which Invariably
means q location where the rents are
necessarily high.
This picture of the rising cost of
selling automobiles is by no means
complete, but it will suffice to give
the motorist an idea of the unique
ness of the situation.
1T is at once evident that the mod
Crn automobile dealer, as well as the
manufacturer. is encouraged to stay
in the business only through what
profits he can realize through sell
ing a quantity of cars. Thus every
time a dozen people buy cars the
next fellow in the market benefits
through increased service at less
cost, and, because he buys, those who
bought previously as we'll as those
who intend buying also benefit.
The low-price tags on cars an.
nounced for the early spring and
the exceptional service promised by
dealers are based upon an anticipa-
ton OF a greater volume OF sales
than at any previous season In the
business. Those who have been buy
ing cars during the past year have
already benefited through this an
ticipation. Likewise those who buy
This sprine stand to gain equally.