Brownsville herald. [volume] (Brownsville, Tex.) 1910-current, 1925-11-30
IN OUR
VALLEY

a little talk today on the question,
"Who PAYS For Advertising?" It's
from the Editor and Publisher, New
York. and applies to the Valley only in
the fact that large amount of money
is expended annually IN this section
for that important commodity, Adver-
tising.
Complete candor with the public is
a development of the days business
enlightenment. In New York the Gim-
bel Brothers great store recently ad-
vertised in page spaces that October
sales were $13.3OO,OOO, gain over last
years October of $1,9O0000 Another
conspicuous instance of business can
dor was exhibited at San Francisco last
week by Grant Brothers, manufactur-
fng jewelers., who took a five-column
newspaper space to explain to the pub
lie that advertising is not tax upon
the consumer.
This piece of copy, signed by Jay
Haight. the advertising manager of the
store, is a classic. In heavy display il
asks who Pays the Advertising
Bills" A Granat advertisement in
Sunday newspaper, it was shown, cost
$500, and Mr.. Haight declared: That
advertisement brought $4,000 in sales
costing 5 percent. 1t is so year in and
year out. Does it raise the price OF
the diamond ring you select? Does it
add a further tax upon your pocket
book? We believe not. The advertis-
ing increases sales and as a result the
ratio of other expense is lowered. Whe-
ther we sell $1,000 year or 100000
a year. the rent is the same.
This remarkable store publicity then
goes on to show that the average ov-
erhead expense Of 392 retail jewelers.
last year. as certified by the Harvard
Bureau, was 1873 percent of their sales,
but Granat Brothers expense was 25.2
percent Many of these jewellers did
not advertise. Their combined sales
reached S24.97S.000 and their net prof
it was only 1.2 percent of sales. Gra-
nat Brothers sold their goods at about
8 1-2 percent lower gross profit than
the average, but made 1-2 percent
net on sales.
Advertising" wrote Mr.. Haight,
Increased sales to a point where we
could afford to sell our diamonds and
jewelry at lower prices to you and still
make larger profit for ourselves.
That is having your cake and and eat
ing it. too SO our customers did not
pay for the advertising in increased
prices. Who did then pay for the ad-
Our competitors in the jewelry bust
ness, chiefly those who do not adver-
tise. paid for our advertising. They
paid for it in trade that slipped away
from them to US. They paid for it in
the new customers we got which they
might have had. They paid for it in
high profit and low net. They paid
for it in small turnover"
All advance announcements indicate
that the Valley MidW Winter Fair this
year will be the greatest exhibition
that has yet been staged by that in
creasingly important institution.
There will be more exhibits, more
entertainment, more and better racing
and greater attendance.
The week is opening with favorable
weather There is no reason why the
COMING ldlr SndlI not De tHe HOSI SUI
cessful from every standpoint.
San Antonio trade trippers will reach
the Lower Rio Grande Valley tomor-
row, going as far as Rio Grande City
and which vii be the first time that
trade trip has reached that city by rail-
road.
They return back down the Valley
stopping at all the towns and in the
afternoon and evening will attend the
fair at Harlingen in a body.
The Valley will also entertain other
visitors, including about $50 Houston
Rotarians and the delegates to the con-
vention of the Texas Editorial Associ-
alton.
1t promises to be big week in the
Valley.