Page 64 - Past Chair Book-Pre 2020

The Xational Supply and Machinery D ealers’ Association

“Resolved, that when the attention of our Secretary is
called to the fact that any line of goods is being sold generally
on an unprofitable basis, it shall be his duty to lay the facts before
the Executive Committee ; and if they believe that ordinary efforts
cannot be effective in having a more profitable line of prices pre­
vail, the Secretary shall submit to the membership for vote by
mail, this question: ‘Shall efforts be made to induce the manufac­
turer or manufacturers o f --------------------to adopt a rebate
system ?’

"If eighty per cent of the members responding to such letter
shall favor the rebate plan on the line in question, it shall be the
duty of the officers of this Association to use all possible influence
on the manufacturer or manufacturers of the line mentioned to put
into force a line of prices for the consumer, billing goods to
dealers at the lowest prices they shall be permitted to charge their
customers, they to receive at the end of three or six months a pre­
mium of sufficient amount to cover the expense of doing business
and a proper amount for net profit, provided satisfactory proof is
furnished of the absolute maintenance of the billed price.”

1 presume all of us recognize that to put some goods on
the rebate plan would reduce our profits. Many of the unim­
portant items we get a larger profit out of today than we could
ask the manufacturer for. That was the object of the resolution—
referring it to the membership and meeting with their approval
first. You notice this reads: “eighty per cent of the members
responding to such a letter.”

It is unfortunate that a great many members of the Associa­
tion never reply, and, therefore, their vote is not counted at all.
As I stated yesterday, if we go ahead and get up a lot of
these re-sale prices, without something to compel the outsider to
sustain them, the manufacturers, in about a year from now, will
say, as they say at the present time, “We fix prices for you, and
you do not hold them.” In my opinion we had better not have
any prices fixed at all unless they are fixed in such way that they
will be held.
I move that this resolution be adopted by this Association.
M r. M c Il v a i n e : I second the motion.