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Show Cost of advertising Who pays the cost of advertising? The bureau of corporations of the United Unit-ed States is investigating the subject of the value of advertising, and trying to determine how far it is economically profitable, and whether it costs the public anything. It will no doubt be found that money judiciously spent in advertising reduces the cost of getting the goods to the consumer. The hignest selling costs are found in the store where sal -s are slow. When a merchant doubles sales by lett ng the public know about his goods, he usually adds but very little to the expense for sales force. The overhead expanses, such as taxes, insurance, heat, light and rent, are increased but little, if any. Consequently th charge that has to be made to each article to pay clerk hire and everhad expense is reduced. A merchant can afford to sell for less money, meanwhile making a larger profit for himself. If there were no advertising, buying would be very heavy at the height of the season, and would drop off more than it now does between the rush periods. The most economical agency for distributing goods is one that keeps along somewhat the same from one month to anotiier. Advertising informs people that there are special bargains at mid-season periods. It teaches people, peo-ple, that by waiting for those periods, they can make economics. That tends to equalize retail trade, and saves the necessity of extra expense during rush periods. Advertising performs all that could be accomplished by house to house solicitation and at a far less cost. It visits a hundred homes and lalks to the inmates thereof, while a solicitor could enter but one. Advertising then is not an extra charge added to the cost of the goods. It is simply a part of the normal selling expense, reducing the cost of the sales force. |