Evening star., 1933-12-17
Consulting the Consumer
In Fixing Recovery Prices
BY HARDEN COLFAX.

An increasing inclination to consult
the consumer, not only as to his or her
wants and needs, but even as to his or
her ideas as to what is fair price for
merchandise, is becoming evident in
national recovery circles and among
private merchants.
In the testimony brought out at the
public hearings before the N. r. A. to
determine whether existing prices are
fair, or "unwarranted as the result of
monopolistic action" emphasis was laid
on the customers right, and fitness, to
say what he ought to pay for the things
he buys.
1t has come to be generally acknowl-
edged that the success or failure OF
the recovery campaign, in so far as 1t is
affected by prices, is very largely in the
hands of the women of the United
States, and this is shown at all N. R. A
bearings. Women particularly, have long
been in subjection to organized sales
methods, said one speaker at hearing
this week. They are, however, learning
to shield themselves from the arts of
these sales promoters and against their
highly concentrated, well-planned and
cleverly executed lines of attack" un-
less they can see honest prices"
4 \ y
Under the new deal women are not
only to be educated as to what they
are buying, but to take a hand in de-
termining what price they will pay. Sew
eral business organizations in different
parts of the country are reported to be
pushing the idea that manufacturers
should consult their customers when
considering the fixing of a price, par
ticularly on a new or improved prod
uct. Several of th0e organizations, as
1NEh
of New York, recently sent out ques-
tionnaireS to their customers asking for
the most satisfactory basis for set
ting prices" This attempt to find what
women consider fair prices was made
by producers and distributors OF food
stuffs, office equipment and automo-
biles. Details of the replies are not
given, but it is stated that, in all cases,
customers suggested prices which would
allow q fair profit to the producer"
A research experiment made by OHIO
State University is reported to show
of the amount of mark down. which
they expect at so-called special sales
is considerably more moderate than
might have been looked for and shows
real appreciation of the fact that the
merchant is entitled to fair profit.
Such a mark down, moreover. varies
when this price reduction is expressed
on a basis of dollars, percentages or
fractions Of the original price.
Some 1000 consumers In Middle
Western city were asked at what price
they would expect a certain garment to
be sold at a special sale in order to be
attractive. The average mark down ex-
pected on this basis was just short Of
81 per cent, when the question was In
terms of dollars, but only % per cent
when the question was asked in terms
Of percentage. Customers with charge
accounts expect smaller mark downs
than customers who pay cash. A de-
cided preference was shown for having
the stores express the mark down in
terms of dollars rather than in terms OF
fractions or percentages.
The testimony brought out at the N.
R. A. hearings showed that the Gus
toner not only appreciated the effort
to learn her preferences, but was de-
cidedly fair in her ideas Of what the
merchants profit should rightfully be-
thus confirming what was learned by
the investigations of private interests.
Another point brought out at the
hearings was thai 1t has become nee
essary for standards to be worked out
for the consumer, largely through Gov
ernment and private expert agencies, to
be applied TO products which are
labeled to aid the purchaser in making
| selections and in calculating Just what
are "fair" prices.
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Women should know what are the
many factors that enter into price and
quality standards. Very often manu.
facturers are tempted to disguise price
increases by asking the same amount
for goods whose quality standards have
| been lowered. Women buyers are re-
minded that competition for sales in a
rising market tends to put a premium
on this shoddy practice, and the Con-
sumers' Advisory Board of the N. r. A.
is demanding at ali the code hearings
that false aid misleading marking or
advertising and variations from stand.
ard size in containers. or in the quality
of the goods Themselves, shall be des
tected and branded as contrary TO pubs
lie policy. A representative Of the Blu.
reau Of Standards now deyotes his full
| time to the work of the Consumers
Advisory Board In this connection.
Copyright, 1ess.)