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Show Inefficient Distribution of Business Responsible for Enormous Losses By DR. JULIUS KLEIN, Federal Bureau Director. Merchandising distributors are pretty well at -the bottom of the scale in terms of business income with an average profit of 2.2 per cent in 1925 in business as compared with 5.9 per" cent for manufacturers and 12.5 per cent for bankers. Thousands of business firms beckon disaster by the inexcusably wasteful sales method of "going national," that is, "spreading the line ell over the country." This danger is courted many times merely to gratify the vanity of the firms' executives. National distribution is an excellent policy for a commodity with it deservedly nation-wide appeal, but not so profitable in the long run for thousands which are less favored. - The fundamental philosophy of lowering prices, so as to increase-consumption, increase-consumption, of minimum margins of profits and mass turnover, which have been so conspicuous an item in the success of many of our industrial undertakings, can be -applied with equal effect to distribution. But such application is obviously impossible unless our distributors match our producers in the scrutiny of details. in cost and the complete efficiency of their respective processes. |