ADVERTISING DOES PAY
Who is the better qualified to judge of the value of advertising—the small, self-contained merchant who never ad. vertised and therefore from the dearth of his experience says “advertising doesn’t pay,” or the president of an American soup company, who speaks as follows ?—
“In 1898 the output of our company was 500,000 cans for the entire year. “Now 1 —18,000,000 cans are produced in one week. “In 1898 the expense for salesmen was 71 per cent, and for advertising 14 per cent, of the selling price. “Now-—the cost for salesmen is 21 per cent., and for advertising less than 3 per cent., making a total selling cost of 5 per cent., or 21 per cent less than it cost for salesmen alone in 1898.
“The advertised price of our soup is twelve cents a can anywhere in the United States. This pays for the cost of the materials, the manufacturing charges, the transportation cost, and the profits of jobbers and retailers. “The cost of advertising in a single can of soup is seventeen onehundredths of one per cent. “Advertising, and advertising alone, has made this possible.”
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Bibliographic details
Greymouth Evening Star, 11 February 1929, Page 7
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189ADVERTISING DOES PAY Greymouth Evening Star, 11 February 1929, Page 7
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