DISCOUNTS BY RETAILERS

Press, Volume LXXXIX, Issue 27096, 20 July 1953, Page 10

DISCOUNTS BY RETAILERS

SPECIAL PREFERENCE OPPOSED FEDERATION’S ADVICE TO MEMBERS New Zealand retailers have been asked by the official journal of their national organisation to resist approaches made by any organisation seeking discount privileges. The “Retailer” says that the New Zealand Retailers’ Federation has always opposed the granting of privileged discounts or other unethical methods of trading, and has always stood firm against special discounts, gifts, coupons and all such artificial stimulants to trade.

Members should not show preference to any section or association of the buying public in the opinion of the federation. This decision, made some time ago, *was confirmed at a recent meeting of the council of the federation.

“From time to time, various organisations in New Zealand, endeavouring to apply ‘pressure group tactics,’ have sought discounts ranging up to 10 per cent, for purchases by their members,” says the “Retailer.” “Most retailers have rejected all overtures for privileged discounts; but certain organisations are still agitating for them.

“The granting of such discounts is bad business from any angle. As soon as the practice becomes general, bigger discounts have to be offered to retain privileged customers, and in the end everyone is back where they started—and also about 10 per cent, worse off. Moreover, to give 10 per cent, on some lines means that stores have to increase certain prices, with the result that their merchandise becomes uncompetitive and regular customers are driven away.”