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Show BUSINESS WRECKED UY P5UCE CUTTING Granting that a merchant must have about 25 profil to keep running, and supposing that he sells at that margir $100 in retail value of goods, then he makes $25 on the sale But suppose he cuts his price 10. He then sells $10( worth of goods and makes $15. But to keep running he musi sell enough more to gring him in $25 profit. How much more goods must he sell at the lower margin to make the other $10 and you find that he must sell $66 worth more of goods to gei it. At a cut of 15 on a sale of $100 he makes only $10, anc ho must make up sales to an additional $150 worth that same day to get his needed $25. In other words, cutting 15 he must sell $250 worth of goods that day to meet running expenses ex-penses and his own up-keep. This price cutting is the thing that has busted more businesses than any one other single thing. In a given towi: seldom can a firm continue to attract to it that added volume of business. And in due season it shuts its doors, or else gets up to making a legitimate profit. Statistics say that ninety per cent of firms ultimatelj fail to see that one doesn't the margin of profit must be sufficient suf-ficient to keep going on'which must be guaged over a large volume vol-ume of business and over' a long time not a short computation computa-tion on either. Beware of price cutting except in leaders. it Si it |