Debate On Stamps

Press, Volume CVIII, Issue 31835, 13 November 1968, Page 40

Debate On Stamps

(N.Z. Press Association) |i AUCKLAND, Nov. 12.

It was a case of C.A.R.P. versus trading stamps, with the outcome inconclusive, when the rival factions faced each other across the table at the Auckland Clerical and Insurance Work e r s’ Union Luncheon Club today.

The joust, arranged by the club for its lunch-time meeting, failed to produce anything dramatic in the battle being waged between those for and against the introduction of trading stamps. Dr W. N. Robb, who recently returned after four ; years study in the United i States, said New Zealand ap- ! peared to be a society wide I open for “soft sell” methods. :He described trading-stamp companies as “parasitic.”

“Another Gimmick” ! “Trading stamps are just another gimmick to relieve us of our money for things we don’t really want," he said. “Trading stamps benefit two parties only. There is financial gain for the suppliers, who certainly would not give! them away, and an increase) in turnover for the retailer.l

"The disadvantages are for the housewife,” said Dr Robb. “She is already buying al) she needs—but with trading stamps, she is getting less products for a greater cost, plus trading stamps.”

Dr Robb said that the retailer would have to pay possibly 21 per cent of his turnover to the trading-stamp company. “Either he gives the stamps away and loses 2i per cent or he increases prices,” he said. “Or he winkles the housekeeper into buying more goods—that she does not really need. “The retailer would be better to reduce his prices by 21 per cent,” Dr Robb said. “Fuddy Duddy”

New Zealanders were “fuddy duddy” towards trading stamps, said Mrs R. A. Kerr, a representative of the Tiki Trading Company, Ltd.

“In the United States, Britain. Italy, and the Netherlands, intensive investigations have shown that trading stamps are good for the economy in the long-range plan,” she said. “The housewife gets something, the retailer gets something, and, of

course, the stamp company I gets something. “Prices don’t need to go up. The retailer increases his turnover, and the man across the road has to reduce prices to compete. “So who benefits but the! housewife?" Mrs Kerr said.

Opposition Mrs F. Humphries, the! president of C.A.R.P., said] her organisation was highly i opposed to “gimmicks” of all i kinds.

She had been assured by), Woolworths (N.Z.), Ltd, Four! Square. 1.G.A., and many , other retailers that they! would not introduce trading] stamps, and they supported i C.A.R.P.’s stand. “C.A.R.P’s idea is that if a trader can pay Li to 21 per j cent for promotion, then he I should reduce his prices by : this amount," Mrs Humphries j said. (Loud applause.)

It required some 1280 stamps to equal $1.60, she said.

Spokesman Mr K. M. Jones, a spokesman for the Trading Stamps Retailers’ Association, said the association had been formed by the retailers to protect their right to promote their stores in the manner they wished. Tea coupons, and cards with goods, were a form of trading stamp, and had been m use for years.

“Trading stamps are the ultimate in sales promotion —and in time any other gimmicks will disappear,” he said. “Trading stamps are a way that the shop-keeper can say thank-you for patronising my shops. “They are only a method of advertising. They replace the advertisement in the newspapers or on radio and television,” he said.

"Like Russia" Mr Jones said that prices could not be reduced without cutting out advertising. "If we took that all the way, then we would be like Russia, where they don’t need it," he said.

i Trading stamps were most (effective in reducing inflaItion. It had been proved that advertising helped to stabiljise prices. I “Other shops which have not got them will have to their prices, give a (better service or free delivery, to compete," he said. “Trading stamps are only listed as fourth in the reasons why a customer shops.

“Why Not?” “Why shouldn't we have trading stamps?” said Mr Jones. “You are not paying ifor them. . . . Instead of puti ting money into radio or television advertising, they are giving it to the consumers.