Evening star. [volume] (Washington, D.C.) 1854-1972, 1958-01-05


SIS per cent. but some will pay
as high as s per cent. he de-
clared.
Prices OF new homes will be
unchanged to slightly higher.
while those on existing homes
will reflect normal depreciation
in a buyers market" he pre-
dicted. Rents for older apart
ments will be raised by in
creased expenses. but rents on
de luxe apartments will be held
stable by aggressive competi-
ton, he said.
Profits vs.. Losses
Successful mass selling spells
the difference between profits
and losses in modern stores and
that's where the advertising
man makes his contribution
declared Arnold Fine Of the
Hecht Co.. president OF the
Washington Advertising Club
Mr.. Fine said a prominent
store executive here has illus
trateG this point as follows:
when a store buys IL pairs
of shoes. it must sell 7 pairs TO
pay back the manufacturer
and money from the next 4
pairs takes care Of expenses.
The last pair provides the profit.
OF which the Government takes
half in taxes.
IF Is pairs are sold. obviously
more profit is made on the in
creased business. II only IL
pairs are sold. the shop is in
trouble"
. Because of a high turnover
rate of more than 2 million peo-
pie who live in this area. WASH
ington has become one Of the
most significant test markets
for mass advertising. said Mr.
Fine. He quoted telephone ON
Gals as estimating 225,000
moved into the area while lS4.-
900 moved away during the last
year.
Emphasizing that mass SELL
ing requires mass advertising.
Mr.. Fine said he was optimistic
about advertising for 1858.
Sales Gains Expected
Ferd Nauheim. president Of
the sales executive club. said
more than 200 members OF the
club look for sales increases IN
the Washington area during
1858. with few exceptions.
"One Of the major founda-
tons Of this forecast Of an up
ward trend is the historic sta
bility Of the WASHINGTON mar
ket." said Mr. Nauheim.
Federal employees here are
not subject 20 the influence Of
labor cutbscks and reductions
in overtimk compensation now
being experienced in industrial
sections, he said.
Another favorable factor in
the sales picture is the in
creased interest in sales train
ing. reported Mr.. Nauheim.
Various types Of training
courses offered by the club in
recent months have attracted
more applicants than in the
past There also is more in
tereSt in in-comDany training
programs. he added.
Auto Profits Squeezed
This last year will 60 on
record as the third biggest year
in the history of the automo.
bile business. being exceeded
only by 1855 and 1850. declared
Robert Stewart. president Of
the Automotive Trade AsSocia-
ton. National Capital Area.
And yet most people will
say the automobile business
was of in 1857. Volume was
good, but everyone in the busi-
ness suffered from the profit
squeeze that hit all business
hard last year.
I'm Washington this profit
squeeze has shown up in the
number of changes that have
taken place among dealerships.
Many fine old company names
are no longer in the business.
Mr.. Stewart expressed hope
for greater emphasis on dealer
service and said recent maya
zine articles had helped in
crease public awareneSs OF the
Importance of this. He pre-
dicted that Nationwide auto
mobile business this year will
equal 1857.
The Washington area market
will continue TO expand as a
result of new defense spending
and stable Government pay
rolls and area automobile deal
ers can look forward to busy
and prosperous 1858, he said.
THE year 1858 will be q
real challenge for retail drug
companies Of the Washington
area" predicted George B.
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