Page 3 Advertisements Column 1

Waipa Post, Volume 42, Issue 3277, 26 March 1931, Page 3

11:111* I Does advertising increase the cost to the consumer ? The fallacy is sometimes heard that it does. Answer the question with another question. How does it happen that the world's biggest advertisers sell the best goods at the cheapest prices ? Answer that and the fallacy is exposed I It is perfectly simple. Take any business. Bent, insurance, rates, interest on capital, and the many items clashed as "overhead" are fixed and absolute whether the turnover is large or small. Obviously, then, the man who can give the best value to his customers is the one who goes right out to spread his overhead costs over a big volume of sales. Take a business which costs £25 per month for overhead charges. Give it sales of £IOO per month. Roughly, that means that 25 per cent of sales value is needed to pay overhead. Increase the turnover to £2OO per month and overhead absorbs only 12£ per cent. Add 2| per cent for advertising, and there remains a gain of 10 per cent. Plainly, increase the turnover and the keen merchandiser can increase his profits and give better values to his customers. Who, around you in business to-day, gives the best values at the keenest prices ? The man who advertises or the man who just sits still for orders to come his way ? Be wise. Get a!l the benefits advertising offers. And if you don't buy from Waipa Post advertisers don't buy.

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