TRADE PRACTICES

Evening Post, Volume CXVIII, Issue 78, 29 September 1934, Page 28

TRADE PRACTICES

SOMETHING FOR NOTHING

SOUTH AFRICAN LEAGUE

The following is from the "Cape Times" (South Africa). "E. 8." is the secretary of tho Motor Trade Yssoeiation. His reference to bad nai.ing of the league the article refers to is that it incorporates the word "African." We read:: —

There has sprung up in Johannesburg another of those motorists' leagues whose motto as usual is "Something for nothing." The public gets the something and the motor trade gets the other end of the stick. At least that's how it looks to roe (writes "E. 8." in the M.T.A. Bulletin) after reading the various advertisements and write-ups which havo been circulated.

Here is the scheme in the league's own words: —

"The idea is this. It costs you 35s to join the African Motorist Service League. When you havo paid it, you aro eligible to receive £10 5s worth of free first-class service for your investment. This, of course, has been made possible only through the close co-opera-tion of the leading automobile specialists, in the city, all of whom have pledged themselves to be of service to you.

"On joining the league, you aro issued with a small book of 20 service

coupons of varying values from 5s to 20s, each of which entitles you to entirely free service up to the value of that particular coupon. Thus, all you have to do is to take your car in to the particular garage or repair works specified on the coupon, have tho job done to your satisfaction, and then tear out the coupon and hand it in in placo of silver or treasury note. The book also entitles you to four days' free garaging. "The novelty of the scheme should appeal to every motorist, for it caters for everyone, in that a member is able to bring his car up to a higher state of efficiency than ever before, and at no cost to himself." Perfectly simple, but by no means novel (continues "E. 8."). The motorist pays 355, the motor trade gives 2055, the league keeps tho 355, and everybody is happy. Tho league's advertisement says'further: "The firms cooperating with the league are all wellknown and reputable firms (in this, as a matter of fact, they aro quite right), and the 'presentation of the- league voucher secures full service. No additional outlay whatsoever is necessary." On reading this over I got into touch with one of the traders in the advertisement, and the following convcrsaton (more or less) took place:— " Myself: .What's the dea? Since when have you given something for nothing? Trader: ;It's just: .advertising. The motorist will come to us ;to have his brakes tested, and we will sell him something else at the same time. Myself: But will you do his brakes up on presentation of a voucher? Trader: Oh, no! Will only test them. If they want adjusting they have to be paid for. Myself: Will the league pay you? Trader: Oh no! (Again you notice!) The leagiie keeps tho 355. Myself: So for. every 35s book the league sells • the motor trade gives the public £10 5s of its time. Trader: That's so! But it means we get tho man's name and address and may havo him as a regular customer. Myself: And does the league tell the motorist that you will only do testing? What about his "full service" and his "no additional outlay" business 9 Trader: I don't know anything about that. All I will do'is testing, and that costs nothing anyway. Myself: Precisely! You would do it anyway- —league or no league. Trader: You said it, brother. j : After this illuminating conversation, I got into touch with tho league, and found him a very pleasant, and, I should judge, a very shrewd gentleman. From my conversation with him it emerged that my trader friend was barking up the wrong tree, and had actually contracted to give certain services, having a definite value, in exchange for league coupons. None of these services aro duplicated, and cover the ordinary running adjustments, which might quito conceivably cost the amounts stated. It is a self-confessed advertising scheme. No 0110 man can have more than one book of coupons, and the solo purpose of the coupons is merely to effect an introduction of the trader to the motorist, and in honour of the meeting the motor trader makes the motorist a present of certain labour, polish, water, or hood material, as the case may be. This league differs from most others which havo come under the purview of this association from time to time inasmuch as it is above board (except possibly that it is badly named), but it is founded on a bad business principle. The offering of an inducement either in cash or kind in order to

secure business is bad salesmanship, and as often as not leads precisely nowhere. The labourer is worthy of his hiro, and so on. Obviously tho people who will bo attracted by tho scheme are those who aro not at present wedded to any garage and who are on tho lookout for cheap service. It is rather too much to hope that any of the thirteen firms on tho league's list will,bo ablo to hold many of these people except by continuing the policy which brought them together. The old game of give and take.. Tho motor trader gives and the public takes. And so it goes!