PROFITS ON AUSTRALIAN BOOTS.

Northern Advocate, 26 September 1919, Page 4

PROFITS ON AUSTRALIAN BOOTS.

FROM 27 TO 50 PER CENT

Following on a confidential statement by Mr H. ii. Lamo, manager of the boot department of thr G. M. Read Store Prahan (a suburb of Melbourne), the chairman of the Profiteering Commission announced that the gross profit made by that firm in-their boot department was 27.30 per cent, for the year ended July, 1917; 23.25 per cent, the following yi'iu-; and 25.54 per cent. last ye.it. Mr Lamb said his percentage of profit was calculated on tin' one-third jua3, salt's being on the average a third more than the cost. Nino months ago boys 'boots ranging in size from 10 to 13 cost 7/1, and vvere sold for 8s lid, showing a profit of a little- over 25 per cent. To-day similar boots cost 8s 6d, and were sold for lis 6d, a profit of about 35 per cent. On balm oral boots the profits had l'isen to 38 per cent. The chairman (Sir J. W. M'Cay): You take a larger percentage of prolit on boots for boys and youths than you do in similar lines for children. Witness: Yes. We sell more of the children's boots than we do of the other lines, and we endeavour to average the cost on the percentage bi.sis. The witness also said that for the working man's class, that balmoral boots were retailed nine months ago at 13s 6d, with a profit of almost 40 per cent. To-day the boots cost lis 9d and were sold for 14s lid, the profit being about 27 per cent. For a better-class boot the selling price has increased from 15s 6d to 17s lid; while for a still superior boot the price had increased from 27s 6d to 38s 6d, the profit on current wholesale cost showing 48 per cent. The chairman: That seems rather a jump. Witness: I would have to sell the boots for that price in order to mako the one-third profit all round. In the women's section a pair of boots, which cost the firm 16s 9d nine months ago, and were then sold for 25s a pair, now cost 26s a pair, and were retailed for 295, the profit being about 50 per cent. The profit of a "good dress shoe" was 43 per cent. , The chairman: There again is a high increase, but you explain it by saying they are slow selling, and that you must make up for the lowerpriced stock. These figures show that you make your smallest profits on the children's boots, then youths and boys' a little more for the men, and distinctly more for the women. Your instructions are to make a one-third gross profit? Witness: Yes.