MARKETING EXPENSES

Dominion, Volume 24, Issue 239, 6 July 1931, Page 2

MARKETING EXPENSES

Results of Searching Investigation A survey just completed by the Department of Commerce among 93 manufacturers of medium-priced jewellery located in New England strikingly illustrates the value of advertising as a means of selling goods. The survey was undertaken at the request of the New England Manufacturing Jewellers and Silversmiths’ Association. The association wanted facts on which it might consider possible improvements in the distribution of its products. The survey shows conclusively that the business of Arms which advertise Is substantially greater than that of firms which do not advertise. What is of even greater interest, however, is the showing that the selling expenses of the advertising firms is proportionately less than that of the non-adrer-tisers. . ", During the four-year period covered by the survey (1926-1929) the concerns which advertised made net sales amounting to £23,287,649 annually, while the non-advertisers' net sales amounted only to £4,317,318. The average sales per concern of "the . advertising group amounted to £352,843 annually, while those of the nonadvertisers amounted to £159,901 , a year.

Comparison of the annual totals for pach of the four years shows that" the average sales per advertiser were greater than the average per sonadvertiser. For instance, in 1926, the average sales per advertiser were £74,495, compared with an average of £40,211 for the non-advertiser. The selling expense per £2O of tho advertising group amounted to £2 3s. in 1926 and £2 4s. in 1929. On the Other hand, the soiling expense of the non-advertisers was £1 7s. ip 1026, £1 9s. in 1927, £1 10s. in 1928, and £1 15s. in 1929. From 1026 to 1929 the nonadvertisers experienced an increase of 30 per cent in their selling costs, whereas there was virtually no increase in the selling costs of the advertising group, despite a greatly increased business volume, and despite an increase in the advertising outlay.