Page 71 - Past Presidents' Club Book 1

74 The Xational Supply and Machinery D ealers’ Association

the best prices. T do not suppose there is a supply house in the

country which buys enough to make itself important with the
screw manufacturers.
Mr. J o h n s t o n : I want to get some information in regard
to this. Suppose a manufacturer charges a dollar for an article,
and makes a re-sale price of $1.25; is it expected the manufacturer
retains twenty-five cents or a part of the twenty-five cents?

P resident S t r o n g: M r. M cIntosh’s suggestion is that he
retain the whole twenty-five cents, and I agree heartily with him.
M r. S cotti I had hoped some of the representatives of the
Pittsburg houses would give an expression on this, because it
comes directly in line with work we have been carrying on for the
last six months.
In seconding this motion I want to say that it is the only
way. in my judgment, in which a satisfactory re-sale price can be
obtained and established for any length of time. We have in
Pittsburg seventeen houses. That takes in all the supply houses
of the city, in addition to three houses which are dealing almost
exclusively in belting, packing and rubber goods. Out of the
seventeen houses, I know of only one that has given us any trouble
—any dissatisfaction or regular trouble. We have an established
and regular price. From what I know of the method of con­
ducting that business, the only way to get them to retain this price
is for the manufacturer to retain every dollar of profit which
shows on the goods. Houses sometimes take advantage of
conditions. This house may have three houses scattered over
different parts of the state. I had an officer of that concern come
to me and say, “I am in favor of establishing prices, and I would
like to see us get a better profit and more margin than in the
past, but I will tell vou what you do; if you can’t get these prices
in Pittsburg, you advise me by mail and you can get it from the
other office.” I said “Not as long as I am a member of this
institution.”
That is one of the methods by which houses secure business.
That is not germain to this, but it shows that you have to tie this
five per cent up in such shape that there is no escape from it.
Speaking for the house I represent, in upholding an agreed