GIFT COUPONS

Dominion, Volume 24, Issue 65, 10 December 1930, Page 13

GIFT COUPONS

Correspondents’ Views , VARIED OPINIONS .Criticism of Scheme Some interesting comment on the giftcoupon system is made by various correspondents in letters to the Editor of “The Dominion,” some of which are published below. , ' ■ Sir, —It was a pleasure to me to read the report in “The Dominion” of the meeting between the Minister of Industries and the N.D.A. delegation, particularly as the members had the courage, to sheet home the blame for* the adoption of the pernicious coupon system in the butter business. ... It might appear ,to the casual reader that those who adopted the system were deserving of commendation 'for their bright thought and enterprise; such is not the case, however, as to my own knowledge butter merchants had long before given thought, to such a scheme and rejected it by'reason of the fact that ■ it was a vicious system of trading and could only lead to competitive schemes t with a consequent loss to all engaged in the industry. ... The coupon system has undoubtedly cqpt the dairymen ing the Wellington market £5OOO m the last two months—at a time when they ' - can least afford it—a system from the evils of which only Government intervencan enve us. . . .—I am, etc., DAIRY FACTORY DIRECTOR. Palmerston North, 1 December 5. Checked in Hastings Sir, —The Hastings Retailers’ Association must pass the palm to Dannevirke. Speaking for the .Hastings association, we have not achieved the complete unanimity in turning deaf ears to the pleadings of the canvassers of the coupon certificate companies, though we are not far short of that ideal. We had no advance information of the coming of the canvassers; they had started their canvass and had secured some support before their presence was reported. Immediately the executive met, and a letter was drafted informing all business people that the scheme was a money-making proposal for the companies concerned, and the part the retailers were invited to take was to provide both the money and the customers, so that the companies could sell what goods they liked, at what prices they liked, with- a certain win. of .a considerable percentage ~ of coupons or certificates which the retailers would pay for, but which would never be presented. We suggested that if any retailer could afford to give presents, he could do it better and. cheaper, either on his own, or in-conjunction with others in his own town. In conclusion,, the hope was expressed that as the Hastings business men had turned down other proposals to extract . tribute from . their trade, the latest . proposal should receive the same treatment. - ; ' • .- - At the annual meeting of the association, held this last week, a resolution was unanimously carried requesting the Government to take the earliest action to stamp out all concerns which exploit the fears of losing the support of their customers, that 1 -is so present with many retailers. It is true that one company advertised twenty names of Hastings retailers as issuers, of their certificates, but Some of the. twenty were unable to withdraw when they were fully aware of the position. The whole sale of certificates in bur town is so limited that the expense of advertising and canvassing are riot likely .to leave 'anything for the socalled gifts. We were not surprised to learn that one canvasser, when in another town, stated that his company was considering spending a thousand. pounds to carry Hastings people to Napier, to shop with their supporters! When dealing with the other 'coupon scheme, generally known as extended credit, and also the Government when it acted .' as, debt /collector for overseas .retitilcrs, we issued several studies showing how well and cheaply New Zealanders ire Served by their business people, and how the burden of .taxation upon retailers helped both Government and' local bodies; - how the Press of New Zealand, the greatest service per capita in the world, could not continue its present standard without the extensive support of traders, and how the .diversion of retail trade overseas extended , unemployment, and would operate to reduce the standard of hours and wages to those in force in competing countries. There is need for education in these matters. The retailers are the heaviest payers of local rates. The Government is a partner in every successful business, • and the percentage that continues to be successful is all tpo small. Apart from the tragedy the loss lessens the national wealth. An analysis of well-established and successful business showed that their service was supplied at a net profit of less than 5 per cent, on the turnover. Business cannot afford to carry companies such as those under consideration. So in the publicinterest they should be hit on the head with a legal axe just as quickly as it can be applied.—l am, etc., . H. R. FRENCH,- . U- ■ Chairman, j Hastings Retailers’ Assn. Hastings, December 5. Remedy in Own Hands • Sir,—With regard to the agitation by various chambers of commerce-and other business bodies for legislation to deal with-the-coupon system,. I should like, to ask, have these bodies abandoned their cry £ "less Government in business,” of which we hear so'much? The coupon system is purely an internal- business matter. and is. aided arid abetted by the business people themselves., The remedy is therefore in their own hands. Have they not the “business ability” which they contend is so lacking in our politicians? Are they unable to manage their own affairs without Government assistance? It would be interesting to know how many of those agitating for the abolition of the coupon system are supporters of the pernicious'arid costly, credit system, which is encouraged by many .of the larger firms. I have no interest whatever in the coupon system,, but I cannot understand the inconsistency of business organisations in advocating "less Government in . business”. rind at the same time rushing- to tile Government for aid when it spits their purposes.—-I ain, etc., ANTI-HUMBUG. . Wellington, December 5. “I read recently a list of about 500 retailers who are giving a certain brand of discount coupons,” writes T.P., who adds: “Taking their monthly turnover at the modest figure of £2OO and the cost. of coupons at 2 J per cent, that means £2500 „ per month or £30,000 per annum to the promoters of the scheme.” “Ban Price-cutting” Sir, —During the last week I have seen many protests against the coupon system fo.- prizes given by many of the smaller traders and certain butter distributors. ■ Big firms throughout the Dominion buy goods by the. gross or hundreds, getting them at a price that the small retailer cannot buy at if he can only afford to buy two or three dozen lots. If coupons are to be banned, let the Government ban all price-cutting and discounts. and so place all retail firms, whether large or small, on an equal footing. Wholesale firms, too, should be banned from having two prices, a high price for small quantities and a low price for large quantities. For example, a big retail firm may buy five or six gross of an article at. say 24/- per gross (2d. each). They can sell at three or tour for 1/-. A small retailer, perhaps, can only afford to purchase tw.o or three dozen of the same article and can ■ nly »ell it at 6d. each. Is that fair? I think got 1 Ban conpons—yes! put ban all prieeAntting and discounts also. —I am, etc., Da&smbor 4