SUPPLIES FOR CHEMISTS

Poverty Bay Herald, Volume LXIV, Issue 19336, 28 May 1937, Page 5

SUPPLIES FOR CHEMISTS

BULK-BUYING SCHEME

WHOLESALERS OPPOSED

COMPLEX SITUATION

(Special to tho Herald.) AUCKLAND, this day

Difficulties which are reported to stand in the way of the reorganisation of the businesses of chemists throughout New Zealand were the subject of comment yesterday by representatives of wholesale druggists in Auckland.

It was stated earlier this week that retail chemists were considering the possibility of establishing a system of hulk buying as an alternative to the scheme of rationalised manufacture and supply previously proposed, and it is to that aspect that the attention of the wholesalers is principally directed. It is understood that the matter is being considered at present by tho Bureau of Industry, but the wholesale druggists are apprehensive lest a section of the retail chemists should press unduly for a scheme of bulk buying, which they claim could only react to the detriment of the whole trade.

The wholesalers point out that their businesses represent large capital investments, and they take it that the Government will neither originate nor approve of any scheme which will seriously jeopardise that capital. Slow Selling Lines It is stated that the wholesale druggists carry on their shelves supplies of many lines that turn over only at rare intervals. They are forced to carry these lines in order to give the proper standard of service to their chemists and customers and (ire able to sell them at a reasonable price only because of the general turnover which they obtain from the quick-selling products.

It is claimed that any form of bulk buying could only embrace tho quickselling lines. Shorn of a great part of his turnover in this direction tho wholesaler would have to increase his prices on the slow-selling lines and the retail chemist would have to pass on these increased prices to the public.

The argument was put forward that the chemists, in organising a bulkbuying scheme, might elect to order and stock slow-selling lines tor themselves.

In reply to this the wholesale druggists state that in that event they themselves would bo forced out of business, and that the chemists would have to set up an organisation or their own with warehouses in all four centres, fully stalled and carrying full and expensive stocks in general. It seems that the wholesale druggist will not sit down and see his whole business jeopardised without making some fight to secure himself and his shareholders.