Page 68 - Past Presidents' Club Book 1

First Annual t Cm iiilnm 71

the manufacturer asks "IIow much do you want, hern ley* 1
sav five. He thinks it is right, and then I put the cost of selling
fifteen per cent, and he says "W hat, twenty per cent r" (Laughter).
Some of us try to argue it is twenty-five, as was done yesterday.

1 have hcen merchandising a great many years, and 1 never made
one hundred per cent on anything unless it was given to me.
We had a meeting of the wholesale and retail joint committee.
The word “joint” does not sound very well, but it is the retailer
and wholesaler. ( Laughter.' W e had a meeting of that com­
mittee in Xew York, and we summoned about forty manu­
facturers to come before us during the three days’ session, and
discuss this catalogue question, a question which you are simply
asleep on, and some dav von will wake up wishing you had taken
some vigorous measures to prevent the sale of goods which you
handle, to catalogue houses.
At this meeting the catalogue houses found out which
gentlemen had been summoned before us. Every manufacturer
came there and showed us what profit there was on the goods
as compared with the catalogue price, and our price figured on
the cost, and told us we were making fifty per cent when we were
only making thirty-three and a third.

1 say it is important you should not allow manufacturers to
figure with you and tell you that you are making fifty per cent
when you are only making thirty-three and a third.

'['lie tendency is that the manufacturers do not allow you
enough, and that is the reason the suggestion is made that only
such lines be taken up on the rebate system as are thoroughly
demoralized. I f you go home and do some honest figuring, you
will find you have enough work for your secretary and one or two
other secretaries next year if he attempts to get on a profit basis
the goods you are now selling. Advocate, if you adopt this
method with the manufacturer, the absolute maintenance of the
arrangement, and take no excuse.
I know of one organization that has been in business several
years which has penalized up to the extent of $13,000. They had
forty thousand dollars of their money and they violated the terms
of the Ammunition Society. They appealed from the decision of