JUST ARRIVED The Latest Model HIS MASTER'S VOICE RADIO Eight Valve Super-Heterodyne. Amazing " H.M.V. " Sensitivity. " Trigger Touch " Selectivity H.M.V. TONE. Phone 365 To-day for a Demonstration in your home. PATTERSON'S MUSIC STORE, H.M.V. & MAJESTIC RADIO dealers; Alexandra Street, Te Awamutu. Does advertising increase the cost to the consumer ? The fatlacy is sometimes heard that It Answer the question with another question. How does it happen that the world's biggest advertisers sel the best goods at the cheapest prices ? Answer that and the fallacy is exposed ! It is perfectly simple. Taka any business. Rent, insurance rates, interest on capital, and the many items clashed as "overhead" are fixed and absolute whether the turnover is large or Obviously, then, the man wha can give the best value to Ms customers is the one who goes right out to spread his overhead costs over a big volume of sale*. 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 2J per . cent for advertising, and there -:«■*•■'.■ - VcS'^flg remains a gain of 10 per cent ':■.■■■■,■■ Plainly, increase the turnover ' and the keen merchandiser can increase his profits and give bet- J ter values to his customers. i 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 aU the benefits | advertising offers. And if buy Waipa Post: advertisers don't
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https://paperspast.natlib.govt.nz/newspapers/WAIPO19311217.2.8.5
Bibliographic details
Waipa Post, Volume 43, Issue 3389, 17 December 1931, Page 3
Word Count
276Page 3 Advertisements Column 5 Waipa Post, Volume 43, Issue 3389, 17 December 1931, Page 3
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