Show II HOME TOWN BUILDING I Following is a continuation of the letter on this subject which appeared in pr preceding ceding issues As I have already stated I have asked many country town storekeepers ers whether they can compete with the big city stores in price and qualIty quality quality ity when frei freight ht rates rents selling expense boxing and shipping together er with the fat dividends paid to the stockholders of the big stores are taken taken taken tak tak- en into consideration My l answer to td that question is an emphatic vided the country town merchant is satisfied with net earnings of frs from m 15 to 20 fo on his investment The stores of the city who have havo an I outlay which is simply appalling for forthe forthe the one item of catalogs to say nothing nothing nothing no no- thing of high rents insurance taxes postage etc freely admit that their selling expense amounts to 20 of their sales They claim also to base their list prices on op a margin of 30 to 50 per cent or say sayan an average of 33 per cent These big city dealers are satisfied with a net profit of 7 per percent percent I cent on the sale price of their goods On sales of that means a profit of The actual money invested in the business ma may be only I third one of that sum as the stockis stock is or should be turned over at least three or four times each year so I that 7 per cent on the sales means a avery avery very handsome margin on the actual i money investment The average I country town merchant can handle I two or three times his present sales I with but little or no increase in his 1 selling expense or say one third one third less than that of t the e city concern which means about 12 per cent Let us figure figure fig fig- ure it out Suppose we have a general merchandise mer merchandise mer- mer chandise store whose sales can be made to average per day Sales of per day gives for forone forone forone one year days Cost of goods goods 75 75 of sales Gross profit 2571 25 of sal sales s. s Selling expense expense 12 12 of sales Net Neb profit That means earnings of on onan onan onan an investment of and and if the the- goods are turned over only twice each year the same amount of business business business busi busi- ness can be with wj one half the investment in which case the annual annual annual an an- nual profit would be 34 per cent That's the whole secret of the moneymaking moneymaking moneymaking mon mon- making ey-making methods of the big stores of the city Its It's only a question of a large arge volume and a quick turn The season j-eason of the country merchants merchant's relatively poor showing is his lack of opportunity to make this thit turn quick quick turn of his stock into money Often there are goods on the shelves which have been een carried in stock for from 18 months to two years and not Infrequently infrequently infrequently I 25 per cent of the stock has been carried over from five to ten years It requires no deep insight to tose tose tose se that such business methods do not pay Now Mr Merchant dont don't get geb the id idea a that I am Jt giving ving away trade se se- se- se crets Your editor asked for suggestions suggestions suggest suggest- ions as to ways and means of improvIng improving improving ing conditions in your town and I am giving ing his readers the facts as I have found them in a selling experience of I forty years They are facts which i ev every ry man woman and child in the i co country towns of the United States should know Your local people have hav havea I Ia I a large forge interest in the welfare of the town to Their future is linked with yours yours Its It's a partnership for mutual benefit e It your our business is not prosperous pros pros- pe ous the town will die of dry rot as stated by the editor and the interests inter inter- es ests s of yo your r fellow citizens will suffer just as s sure re as as' as daylight follows the sun It is the right of every man to buy where where he can get the best value for his hie money If If-he If he wants to send Rend his liis ca cash h with an order to some distant city he has a perfect right to do so It is my purpose to show him that you can compete in price and quality with any dealer on earth and that when you publish your prices he will willbe willbe be surprised to learn earn that he can come cometo cometo cometo to your store and select what he wAnts wants without hazard of disappointment disappoint disappoint- m ment nt in cost kind or quality You may depend upon it that he will come corrie when you have demonstrated ed that you are doing business on the up-to-date up plan which 1 ha have e out out- lined Your proof must be in ill the shape of prices in plain figures Your customers are entitled to that evid evidence evidence evi evi- d dence dence nce of good faith M Make ke your lo local local local lo- lo cal paper serve as a substitute for a catal catalog g. g Describe your goods and quote yo your prices There is no reason why you should be ashamed of them You will find that they are just as as' as low if not below those of your big city competitor Whenever you begin to think that tha thata a pa page e or half page advertisement e each ch week in your you local paper is exp expensive ex ex- p pensive Just remember that one of the mail mail- order mail houses spends twelve million dollars every year for its catalog I IThe IThe The continuation of this letter will appear next week It will be of interest to taxpayers and and also to those mothers who have boys boy and Wand girls who are anxious to leave home and try their fortunes in some large city or or who are compelled to do so because of lack of opportunity to earn earna a livelihood in the home town town |