GIFT COUPONS.

Waipawa Mail, Volume LII, Issue 117, 8 July 1931, Page 3

GIFT COUPONS.

APPEAL FOR LEGISLATION.

COST OF LIVING AFFECTED. ROYAL COMMISSION’S FINDING. “Governments, captains of industry, and commercial executives throughout the world to-day are desperately appealing for efficiency and the elimination of unnecessary costs in production and distribution,” states Mr James H. Potter, secretary oi the New Zealand Master Grocers’ Federation, in a leaflet that is being posted to every retailer throughout New Zealand. It is entitled “Why Do the Grocers of New Zealand Oppose Coupon and Prize Schemes?” “It is contended,” he says, “that the placing of the Trading Coupons Act on the Statute Book would lead to a substantial reduction" in the cost of living; therefore it is undoubtedly worthy of the unanimous support of every member of Parliament by virtue of its protecting consumers’ interests in facilitating and encouraging a more economical distribution of goods. “The enormous expenditure involved in conducting coupon schemes

, throughout the Dominion unquestionably adds to the cost of production, I and frequently the public wrongly attributes this high cost to wages. ; EXPERIENCE IN AUSTRALIA. “Definite evidence of misrepresentation and fraud in connection with the sale of goods marketed with the aid of coupons was furnished the Victorian Government, supported by analysts’ certificates and the findings of the Royal Commission set up in that State some years ago prior to Australia abolishing coupons were as follows: ‘lf the coupon system becomes general there will be a general increase in price, or the goods sold will be of inferior quality.’ “In addition to Australia abolishing coupons, legislation has been passed in many of the States in America; Switzerland has also pronounced the system to be illegal. Over one hundred chambers of commerce in Great Britain have denounced the coupon gift scheme in no uncertain tones. This overwhelming consensus of trade opinion at Home surely in itself cannot be ignored. Across the Channel the French chambers of commerce have condemned the practice as unsound, pernicious and damaging to trade prestige.” Mr Potter states that he has in his possession a petition issued by an Auckland firm handling tea for which signatures are being solicited. As a reward for 50 signatures a gift is offered consisting of a bedroom clock, three stainless knives or a doll. “Comment is needless,” he says. He concludes the leaflet by giving the reasons why coupons are used and why grocers are opposed to the system as follow: —Coupons are used because: (1) The most direct and most powerful appeal possible to human nature is the acquiring of something for nothing. All the world enjoys a bargain. (2) It is the line of lease resistance in obtaining business. (3) They artificially stimulate business. (4) It is considered cheaper and more expedient to load commodities with prize scheme goods, rather than produce goods of genuine quality nnd pay attention to the efficiency of the salesman. The Prince of Wales once said, “Is our salesmanship thoroughly efficient?” (5) They have not sufficient confidence in the quality and value of i their lines to believe that a straightforward advertising campaign confined to a statement of quality, uses, etc., would be effective. GROUNDS OF OPPOSITION.

Grocers are opposed to coupons being used because:— (1) They want to return to prosperity by the shortest and quickest route, and believe that by eliminating coupons, manufacturing costs would diminish, proving an advantage to the public.

(2) They are generally associated with goods of inferior quality. (3) Coupons are generally used to prevent the efficient shopkeeper from successfully advocating the use of lines sold solely on a basis of quality and value as against inferior commodities supported by a chance in some prize generally worth a mere trifle compared to the value claimed. (4) Coupons are sometimes used to coerce shopkeepers into stocking inferior lines, which would damage their reputation as efficient and honest traders, and are unsaleable after the coupons are withdrawn. (5) There is no regular sale for lines bought with a view to secure something else, and no permanent goodwill is built up by that system of distribution. (6) Prize competitions invariably create more dissatisfied than satisfied customers, as winners are few and failures numerous.