Page 6 Advertisements Column 3

Waipa Post, Volume 44, Issue 3178, 17 May 1932, Page 6

BUSINESS! Does advertising increase the cost to the consumer ? The fallacy is sometimes heard that it Answer the question with asother question. How does it happen that tin world's biggest advertisers sel the best goods at the cheapest prices ? Answer that and the fallacy is exposed I It is perfectly simple. Take any business. Rent, insurance, rates, interest on capital, and the many items classed as "overhead" are fixed and absolul > whether the turnover is large < Ismail. Obviously, then, the man whe can give the best value to hit 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 £lOl per month. Roughly, that meai that 25 per cent of sales value needed to pay overhead. Increase the turnover to £2OO per month and overhead absorbs only 12£ per cent. Add 7\ per | cent for advertising, and there remains a gain of 10 per cent Plainly, increase the turnover and the keen merchandiser cai increase his profits and give bet* ter values to.his customers. Who, around you in busines to-day, gives the best values a. the keenest prices ? The man who advertises or the man whe just sits still for orders to come his way ? Be wise. Get a?l the benefits I advertising offers. And if you don't buy from Waipa Post advertisers don'fi

A DVERTISING is accepted as a necessary part of modern business promotion. It has won a place for itself in virtually every industry. Rightly directed and prepared, advertising has proved that it can return a profit to the advertiser. But advertising should always be considered as a business enterprise and not as a magic formula for unearned success. Indifferent to all, they yield witfcßat hesitation to the first who asks^ "REPLACE those tired radio valves with Majestic Valves, the World's Best. Obtainable from Patterson's Music Store, Maajestic Agents. HO YOU KNOW SHEARSBY? The Cheapest Cycle Repairs In the province. Expert work only. Prove it yourself—now ! Work sho pand show rooms removed to Wihyte's Buildings (opposite the Farmers' Auctioneering Co.'s Store), Maniapoto Street South, Otorohanga. WAGES and Unemployment. Tax Record Books, one shilling each, at The Waipa Post.