Page 6 Advertisements Column 4

Waipa Post, Volume 44, Issue 3195, 25 June 1932, Page 6

BUSINESS! Does advertising: increase the cost to the consumer ? Hie fallacy is sometimes heard that ft Answer the question with aftother question. How does it happen that thi world's biggest advertisers sal the best goods at the cheapest prices T Answer that and the fallacy is It is perfectly simple. Take any business. Rent, insurance, rates, interest on capital, and tht many items classed as "over head" are fixed and absolul whether the turnover is large t small.

Obviously, then, the man wht can give the beat value to his customers is the one w,ho foot right out to spread his overhead costs over a big volume of sales. Take a business which coats 126 per month for overhead charges. Give it sales of HOt v** per month. Roughly, that meai that 25 per cent of sales value needed to pay overhead. Increase the turnover to 1200 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 f and the keen merchandiser cai increase his profits and give better values to his customers. Who, around you in busines to-day, gives the best values a. the keenest prices ? The man just sits still for orders to com* Be wise. Get all the benefits advertising offers. And if you don't buy from Waipa Post advertisers don't