TOPICS FOR TRADESMEN

Lyttelton Times, Volume CXXIII, Issue 15902, 13 April 1912, Page 8

TOPICS FOR TRADESMEN

[Fkom Oua Correspondent.] LONDON, February 24,

PRICE MAINTENANCE,

As is well known, articles which originally bore a retailing price which gave the shopkeeper a living wage margin of profit often, through tho operation of competition and price-cutting, become very nearly a loss to the retail trader. Among these articles are some which, by reason of the publio demand for them, must be stocked.- How to get a fair price for such is one of the serious problems the modern retailer has to solve. At present drapers are concerned os to this aspect of business in connection with reels of cotton, and tire suggested way out of tile difficulty is one which might well be tried in connection with other articles and other trades. It lias been agreed that retailers in, this line shall be given an opportunity of voting on whether the selling price of the reels shall be advanced or not. The producers havostated that if a majority of their customers say they wish to havo a pricemaintenance scheme instituted it shall he done. It therefore now lies with the retailers to vote. Some doubt has been expressed as to whether the end will not be defeated after all by the apathy of some members of the trade. It is now about eleven years since tho samo producers stated to the Drapers’ Chamber of Trade that if there was anything like a unanimous feeling in London they were prepared to fix a minimum price. Apparently the drapers were suspicious of one another, and no good resulted. At a* recent- meeting of the trade, however, it was urged that to-day there was a different feeling among members and a repetition of tho previous suspicion would not bo apparent. It was also suggested that tho public had not appreciated having reels of cotton at practically cost price, and in some ceases less than cost price, and if tho trade were prepared to sell at a profit the public would pay. Ouo member, in pointing out the position, said he believed in some cases tho reels which cost 2s 7)d -net per dozen, with the ordinary and cash discount taken off, were sold at 2s 3d per dozen, at other places at 2s Gd. and others at 2s 9d. SURPLUS STOCK.

In a daily paper a large linn of drapers quite recently inserted an advertisement- of a sale in tho course of which they stated that they had a stock of electro-plated articles which they were offering on especially favourable terms to tho public. The firm further stated that the goods were accumulated stocks of two manufacturers who had found themselves with tho surplus through cancelled orders,, and that they (the drapers) had secured these at a handsome discount, and could therefore offer them at exceptional prices. Such an announcement strikes a London ironmonger as revealing a state of affairs which ought not to exist. He does not blame the storekeeper, but be does object to the manufacturers unloading the articles on to the drapers. Why had not ironmongers secured these goods, he asked, and suggests that if the reason war. v’.'.at tho large drapery firm, on account oi size and capital, was able to do v,-hat-individual ironmongers could not do, then tho latter ought to adopt a system of collective buying. In connection with this question of accumulated stocks, grocers ns much as any traders arc interested, though in another way. They are frequently placed in the position of having a largo stock of goodn which for sonic reason or other havefailed to sell well in the locality. Price reduction is the usual method resorted to in order to clear, hut the, Birkenhead Association oi "Grocers have adopted a different method. This was that the secretary of the association should draw up a register of goods so overstocked. Members who might be able to dispose of the goods could purchase from the register at reduced rates or effect exchanges. This will, it is contended, render unnecessary the practice of under-selling to the public. It was considered, too. that articles which did not sell weil in one locality might be wanted in another. TRADING IN FACTORIES.

Choeolate clubs continue to he a source of annoyance and injury to the confectionery trade, more particularly in tho north of England, where, it is said, the system is rile among the factories. Of course, it is not confined to these places, as is evidenced by the protests which are constantly being made against the trading clubs run in connection with religious institutions. while, at least- in one instanco trading in a school has come to light. This latter was in Bradford, where, it is reported, a woman teacher was actually selling five-hundred hoses of chocolate, (each weighing one pound) a year through the agency of the children. to whom she gave as" a commission one box free for every six sold. Tho British Federation of Confectioners’ Associations discussed the .position fully at their last meeting.- Vigorously as the clubs wore condemned a satisfactory solution r.f the difficulties surrounding the ouestion was not found. One trader, while condemning the system, admitted that if anyone came to him and asked for five-hundred boxes' of chocolates and openly-said they were selling in a factory, lie would not refuse the sale. He held that if he did the customer would only go elsewhere and obtain the goods Tho majiu£ant.ui.a.r S when approached*

by theso people, referred thc-m to tha wholesalers, and the latter either had to accept- the orders or lose the business. Another member suggested that they sliogld be prepared to make sacrifices, and that the loss on the sale of a few pounds' worth of confectionery was • not to be compared with the damage tho system did to the trade as a whole. Tho only conclusion the meeting could come to was that factory owners should be asked to prohibit the wholesale buying of confectionery for trading purposes by their employees, and a resolution pledging the Federation to endeavour to destroy the system was passed.

COMPETING WITH CO-OPERATION,

High service, among other" methods, has been suggested as a means of meeting the competition of co-operation oni more equal terms. The latest idea put forward by a retailer is that of giving to customers a dividend on the goods bought, in a similar way to that adopted by the co-operative stores. The trader referred to, who happens in this instance to be a grocer, suggests that the individual members of the. trade associations should, through the Federation, register a trade-mark, which; should he a distinct device. _ This should ho attached to every conceivable proprietary article dealt in, -which should he sold at fixed prices, determined from time to time according to the position of the market. That price should be fixed so that the retailer might, besides obtaining a • profit* bo able to give a small dividend. Then the customer who regularly comeg in and buys these goods so branded; could be given for each cash transaction a receipt bearing an intimation’ that at the close of the quarter, tha half-year or year, as the case may be, he or she can obtain a dividend. Then at the fixed period for the distribution 1 the customer would get a circular stating that so much will be paid as a bonus on the transactions. By entering all trading done in the special branded articles in a separate book the retailer it is asserted could easily calculate the amount of bonus due to each customer.

“CO-OPERATIVE” AS A BRAND, Colonial and Irish . butter Imported into this country frequently bears on the" easo the word “ 00-operative.” " To" this grocers in England object. Tha point they make is that while tho trada well understands what the word indicates. the ordinary purchasing pub!ia is very often misled by tho term. Seeing a case of butter so marked the purchaser naturally jumps to the conclusion that the grocer is obtaining hia supplies from the co-operative societies as ordinarily understood. It is not in" tho interest of tho private and individual trader that- this misunderstanding should, exist, say the grocers, y who have made efforts to remedy the grievance for some time past. The Bristol Association of Grocers have now taken part'in the protest, and have communicated with various Irish firms. These latter has replied indicating that .tha suggestion that tho word should he omitted from the boxes has been well received, and that they (the Irish factories) were quite willing to fall into line with other firms in the matter. Efforts in the same direction are being made in Australia.