DISTRIBUTION COSTS.

New Zealand Herald, Volume LXIX, Issue 21099, 5 February 1932, Page 11

DISTRIBUTION COSTS.

KEPT DOWN BY ADVERTISING.

In an address in Glasgow last year Lord Camrose declared that advertising is a, method of reducing costs of distribution.

"The force of competition," said Lord Camrose, " makes it impassible to maintain the sale of an article unless at a competitive price. As an example, take a modern product, the motor-car. Who can question that advertising, by increasing demand, has reduced cost? That same principle is applicable over the whole range of industry. " May we consider for a moment the economic advantage to the public of advertised ailkles. The bulk of them can be proved Mo bo cheaper, when quality i.-i taken into consideration, than unadvcrtised goods competing with them. " Mr. .Amery, when Secretary of State for the Colonies, said that ' under modern conditions of industry, advertising is absolutely an essential element in efficiency and cheapness of production.' " There has been too great a tendency on the part of merchants and manufacturers to curtail for the timo being their expenditure because of a temporary fall-ing-off in demand and smaller balances of profit on trading. " To put your pencil through certain items and amounts in an appropriation is a comparatively simple thing, but it is no simple thing to deal afterwards with the inevitable result, which will be, although, perhaps, not immediately, a lessening of the demand and a fall in sales."-