}≡≡ §§§. ~:::::::::-:-(::::::::::::::::::::-}}{5!} at 50c. to $8.50 FURS, RUGS AND DRAPERIES ŠTORED IN VAULTS ON THE PREMISES (Telephone 7000 Murray Hill) Jºſiſ; Aprimr, 34th alth 35th Éirrrts, 3 (rin ºra. Today and Tomorrow - the last two days for Men's High & Low Shoes at these reductions Button, lace and Blucher styles, in patent coltskin, gun metal skin, black and brown vici kid, and tan Russia calf. And every pair made on a new last, especially designed for us, that these Shoes may conform to current footwear modes and yet be readily distinguishable from the average. $5 High and Low Shoes at $3.85 $4 High and Low Shoes at $2.95 Men’s Duster Sale In our Motor Apparel Dept.—today $7.00 Dusters at $4.78 Mohnii and natural linen dusters of very service- able quality, in single and double breasted toodels. $12.00 Dusters at $7.50 Imported pongees in gray and tan and .mohatre in medium : id: ; either single or double breasted models. Very special for today and tomorrow—Men's $1.50 Negligee Shirts pleated and plain at 95c No half-way merit about these values—they are simply cat. Made of Madras, percale, crepe and mercerized #s, in a splendid assortment of designs and colors Extraordinary sale today and tomorrow of Men's $6.00 Blanket and Terry Bath Robes at $2.85 New—not resurrected patterns—but new, snappy merchandise, marked at a special price for a one- day drive. A splendid assortment of designs. Şākā8:Guittpattu Broadway at 34th Street TO THE Jºdº RATION OF WOAfEN'S CLUBSF 7 his $ tore extends places at those MARSHAILFIELDá)COMPANY the dasposal et the eacds of vidtors the ºtte vict ºf this crganisatiºn tº its Aretae say tº referry ºestrºyºf rººr fiascº Pºrs. A er breparºse_ſ^s .# 3ty RE: tºgtºº is tº gº pkr 'afr SroRAGE YA Ulfs vasre ºf esseef frvs. Tºrr §: B C RRAG, •ispºsas Prºvers ºn awaars O-6. Braxca to ºf sº wrºt star cºe ºf a et laf tes. $ºrºra gº ta $ºrwººt 33-6seh Prºpertad Motºra! Women's Summer Dresses, Hundreds, in a Special Sale at $10.00 Our new Wabash Avenue Salesroo In for Women's Street Dresses (from $5.00 to $25.00) has bec wee sands of the women of Chicago have visited it, drawn here by the excep- tional merchandise being displayed. fear "...º.º. Re All-Silk Ponges gesaral takırmases tº giadly We destrº spote at 65c a Yard. - into, wºrrº y and complete- A is bric Ancva for its sº §§ !y of all the recariants re- durabibty, ºpi *rs she whex. Afterºsat is asy crewºº- ra aſ a tº 1 a ! ing qualities acd fºr cral $ºrts ºf tº bºss - a ta e s ºf and Black Dress Goºds usefulness. It is arrcrtail tºss the $&zte R : ctions To acceroplish ble ſ veling dress- ºf ºs sº *: aed restſal º tºl. X's have ºr futuber 31, ºut.-usta. At ºt. thirokº Arloff ºu. and final re du c \le nº on for traveling, raea's skirts *3, Chº asºl wºrit- svtry one. for out in a wear, also $ng Rººm. tº a Mi best cº- jirias ked row at the Atxsanº-34twº Bºreau and ** Postal $tabæs an effuriaé. ruałęces tº tº is portunity of the esture sea- pº a Price wbicb abould sell y **** Federing T}resses of crud for finest valust we have evºr shown. tº Dresses ºf sºft wwari sae et &e best seedeis we have ever had. ºn sºta, &as :::::::::- 3: *::::::: º thus quantity quickl ORIENTAL RUGS- At Prices Hard to Parallel at Any Time *1f. 24-2: *a-- * § º * **, * *— it rººts tºº f ſº crºps drew, trººmdar. grº, N resisa, cºts, and try weijs dreases ºrtº èmèr estrº. is a t teste. Plah. use strºs asdron a des, six reas Coºgašafta As4 whitº. and ºar ºtºatá wrº. Matº- The Ribbon Sale is at its 4 rº- Hºw w w su j vu wy that the prices we quote an tagni are to individual that , is fitt eut Fine piece have been radically reduced for June Wedding I buyers. Attractively displayed in our newly located Chuna Sectica *, *ts ºsses tº a 3-ash ºssºm. All destrable pieces are uncluded 5 on small Olive Dishes to a piece of Dresden or Scts of Service Plates. Trºfit forwºº 3.4 g g of Afrºxx (ºrrs cost. *istºs ºf 3. cº, grº 23, g33.co ro g too od. CUT GLASS—LOW PRICED Specials • Giſts for June Bridca ſº g § *J-39 oilve Dishes, 6 lectes la diarietar, wtº cr with- out basales. 55c sach- 5ugar and Crºar, Sets, cut bardles. 31.73 set 12-isch Vases, cut with diaricod point in centrf of €aisy (see tilustratics). $3.30 saca. Laraps. bachts biſh. (lobe & irches erºs, bead tringe, cottiete with a c. p. baſs, $3.00- tºga traied. a cſ China from our regular tea. e wants of the future anticipated this week, as the o portunity will probably never be presented again. Furniture for cwery part . * of the home is represented. rºse rºle gły ºw-ox kokung at it troºn the other viewpornt that the Rugs are remarkably fine at the prices e de- the very expression of a room can changed by shifiring the position of the Rug We especially commend the fellowing Assºult-rºxy Bºkeºfºtºss - rich. ºt terrºe - has ry, dºes? º," "" " - *:::::::::: *** wºrº Ragº. 3 in tºy 3 tº... aſſº ix. 39 is $33.9%. tº... $2.39 te łłł & 2 fl & ba- ºr 3 ſº, $1339 tº $3. àº.º.º.º.º.º.º. rººt * —-r- Fine China Wedding Gifts ſº. At Reduced Prices, ...: º: ſº $1.00 to S25.00. ared ºf: A Mºse brº A Rare Cºlor:tica of 350 Japanese Water Colors has been increased every '* to iotacabrºaded.Tansu, unt as a dars 4. At 33°, brºceded satiº. 3 trºpºd ſaflata. 3×x. 33¢. 3&t, Pºiº Taitºts. Checked as 3 warp tºnnºi º a ſtats w tº Ptabs *aas Melrºs. ſassy and estix edge. be a barge variety of ratiºns, Ms. $º, and ºbe lºbbos tº twº airº desira*. Ge talry and bow karº Fahrrae, tº white, peak, sed Has been by far be most successful of an our previous events. The present stock u we behava the bargest and most complete collection in Ribbons aver placed on sale anywhere. The in - As rapidly as our present Baes are depleted they supplemented from an imrpense reserve—thus leaving the entire a th cl g ca ºn as barge variety as at any time since the sale began Mgh Height rnense assortment gº still compksts and intact wi tº ºt t blue. 3) tech plain ºats º ::::::::::::::::: thºs, eºs * 3 and $3 bºob tress4ad and sata strº-ed tº fists ºwhºts. plan said tº ºve. **tes. Nº. i. 1, 2, 3, 3, 9. ::sº-º-ºkºlº, 19 At 25¢ Yard. 31 tº extra tºne fy eatre aed plaïa tai- Weis Rubbee is white, runk sed ANNOUNCING An exhatrion of HI&H GRADE FoorweAR whicº, we can safety say, Aas never been equated. Cºr ºnferred Sections for Women’s cºnd rate the terrest, triost corvplets, cºnd most elegent Womasn's and Children's Shoe Section £n ºrtstºncs. Incºded cre many new tiers that wº be extensively eopted. The ex- *::::::::: tº cºrr, Alºfrican ºvº conſtratrº the week. Tº is prºbably The paºlic is cordicºy travtted. was fative ºwthſ efºreier ty cºs kada; 3 tºº ºrga artists that has ºver tº thicago et victºry <º:::::::::: & Jºiº sº jº.: Graduation Gifts White Novelty Crepe tº: :: *** Arts as: for Bora and Giris. Woile, Yard, 35c. *::::: y * *...*- d tº at wººl A not be r great White be as treasured as the guts Goods valus — ccrrect in These made de lytºgraphs as that cert, tº tra of a te any style, Yetight and falsh is *.*.º.º. Celers other tº ºf a lºſſe ºzº ty Crepe Voue, *** 1-ºctºr 3. f #: with desirable chtexed tſ. isplays on 9xxx J w at rººte cº-º: Firs of the tº a sh Avºnºit for asking sheer waists tºurs is signed by cº-e artial and Bedding. A fund of rag- We anticipate bºtan stay Yes are geaucas at any Entend a great deal et deserved cºrºazy śvited tº wºrst chea exprediture ls a this Tha Prºtes are 36t. ºf $3, for $1.23. 31.39, $1.73 and $2.3%. & Rasd-Cºleted Jayasase Phºtº- £nºs aſ 33t- only Seven Days More of the Clearance of COWAN FURNITURE The opportunity for securing gº rade Furniture at unprecedente rawing to *-close. should ieces of this ºff: rices is rapidly style, Swiss, o: watch Cºates *:::::::" ºr Flags for Flag Day 6 Woo! Bunting, fast colºrs, ºr red stripex, with beary canvas Stadlag, 48 stars, at $s Jane Specials. Maids' Aprons, }{alda" Arrons, red a d ºf: º' Gººd scabaped to broki- ruſle, bib and strapt, *s re- The Newest Ideas in Smart Blouses At $3 Öº-two tla. made wits pºsited tront and back. cellar fºals bed with robre tie; the other, sº crºps chbnt, tº white and Bash, with collar, west and & B. Ji ? tº b and white exabroºdºred ºrgandy. t!erves and rel] &alian *and reabºlisz At 1333-ſtºre - made with tºº maine liſh waltºreeſ st cºlºred bottºsa, loat ultsvee, treaf and ratts at reque. •º esca ºf tº eanº. ºf petsied scºat and thern Maeves. Linens for Wedding Gifts. are appredated as med, an any gift &e of her sºrt cxisnaive and the values tºº We suggest bat a few of the many articles te ct frotº- sºle lºſsºirº NAPKI) ºx $rººfered. Mexicº Estre+4. Jºi e s a & Exmºre ºf stºl and hºrt tºrs raagtag 3. *** ***** tºta Estºn, 43's $24.5% tº cºntrº. tº teakh tºmbº furt tºrº, handsºme de- &red. *::::::::::::: alºn. Hº tº is $163 tº. 34 e- $ti º ºx ºf rºck Eabrektarº and Mº- rºsºr 4*** | * brass ºwn tasting Prºdal wºes, dea-. §249, trººm ºf cote try to esca ſº tºo. º.º. $13 bo. Cºverv ten tºwaber ºrºrs rººt. Ha :*:::: º A rpedal lx ºf Mačius I alch ...; anº * Xºrºrºlºred £zatsy Pietas, lºcº, Lºry vºtea- tº 3.88 sack. Mead: £re tº ºrtº $ºsé Ples. Special Sale of Bed Spreads lmpertad Canterbury Crs tonne Bed Spreads .*. edges and Bolster Cov. to ty patterns *g. blue and yellow combunations ul! i Better telephone Oxford 1 and have your Furs put in Safe Cold Storage at once 2-y *T*. : º * wº Wºº /* J. - * A \ {i. /* Hº ..º. * w 6. *- ſº sº ~\ & S s § - Yºº | W/Sº, § rººm ºf º º º al & §3. C -tzaxł A. - --- º What are your summer plant—beach, moun- Business hours 8 tains, or a cool piazza with a turn on the links or £; a run in the car for the cooler hours? they are, this storo stands ready as usual with the right cloſhes at the right price. 29 ALL ABOARD FOR SUMMER 29 ours 8:30 {...". uring Juno and 5opternber. Closed all day every Saturday during !"; and August; 8130 to other days. Whatever In this progressive specialty store, Summer is a separate season, not a “tag-on” to Spring. Our stocks show it. Scan these columns of store news.in vain for even a mention of anything that is not entirely summery Saving Money Is Pleasant, Even on Class Dāy and Commencement Dresses Tomorrow one can come into the women's dress shop and buy a charming lingerie frock for a Class Day campus, a white net Commencement dress, or a silk : for a Class Day spréad for much less than such dresses usually cost, even Plenty of Summer dresses f for the demands that Jºe make. $15 for $25 Lingerie Dresses Tbe first embroidery-bordered voile dresses we have seen with the very long now tunic. Sashes of more $15 for $25 Nct Commencement resses These are the rezult of come very clever designing. The skirt is a soccession of Councea. each shorter than the one above; tho waist has deep "berggro" frills; bash is paſſeta- broche. &ººlºº. trºene'e-3b1th wedding gouras to street ſtocks are ready, too. Figured Crepe and Velvet Ribbon Made This Unusual Dress at $15 Only costlic, dresses, we believe, have eltown this bordering of long tunic and wide girdle with black, velvet ribbon. Mosaic silk-and-cotton thin crept in rose, greco, blue or black. Usually $22.60. $18,50 for $25 Cropa de Chine “Quaker” Dresses dress tº cotable for tho new pointed’ This "Quaker" collar of white organdie and the long box-plaited tunic below the hips. Cool blues, greens, browns, blocka and whltes. reºr, Women’s $40 New Silk Suits, $25 The model is the very one we have been selling in moire at $40. These sults ord of faille, in black, navy, blue, light blue and taupe. The fullness of the coat is held in with big silk c $25 New Blue Cloth Suits at 815 One is the most su ul plain-tailored model wo have had at $25. It is of sersc, with button-trimmed coat and tunic s - 9ther is very similar to what the Fall suits will lt is of scrge and gºth long Rus- g Q- * stan tank and Paquin coa crººre-ºrifth s. Long tunic skirt- $15 Cool Linen-Suits for $10 One has kimodo decwo coat and long “fishtail" tunic. Another has Mcdic! collar, lined with white pique, and three-tier skirt. WHITE SERGE SUITS are ready at $15 to $40. Flººr) Satin Hats Are Gleaming in the Millinery Shop ... White satin or blush-roto satin hats, decked with little wings or wound around with a soft pink bird-breast. ., PANAMAS were never more irreristible. Here are big and little ones, eashed or winged, all as cool as they look. KNOX sailors, horse-hair lace hats and soft crepo hats are other tokens of Summer in the Millinery Shop. You can pick up a charming Summer hat hero for sur- prisingly little, $5 and $7.50. true-stro Peen —l ee e 32 The “Eleanor Wilson” Cape has come to the Women's Coat Shop. It is made in the same way as the one chosen by the daughter of the President for her trousseau. Black satin, tined with black and white stripe silk, tied with long ends that pass arºund the raist. Capes Have Come to Stay Hero are dress capes and sport capcs, and caped that can go anywhere: in fatin, duvetyne, checks, eponge or Serge. At 8:10.75 are tweeds, scrges and checks, with big cape sleevte; and looed honcy- eponge capes with short belted front- At $15 are wonderfully good duvetyme capes with Roman stripe moire waistcoats. Inverness capo coats with sleeves are $18.50. Scrgo conts with removable capes aro 319.75, º § º º Sºś & §: §§ § oriº-Etfº rLevry Crest Brand Underwear will not shrink, ſits without fulness, and is cut to stay up on the shoulder where it belongs. Women's Crest Brand Union Sults are 500 and more. Wouncin's Crest Brand Vcats are 25c and moto. (ruras’s-Thbrd Fleev) June Sale of Aprons 59c for $1 Apron Sets ?ereale, gingbara and chambra ...tº: eſbow ... . in 79c for $1.25 Dress Aprons Pitted perealo dress aproar festering to waistline behind: º: *. º at waist; i.º.º. colored trabroidery piping. Sixts tº 81 for New Reversible Dress Aprons ther alde Ho front, giving doubl : Hººgºº,” “Jesus, cas be worn with ci bdi- Misde on accorate p8 $1.39 for $1.75 New Crepe Apron Sets A Füepe idoa. Dairty crepe fºie Vallace. New staped cock and pud derra, Geeded elses 84 to cº-fºlsº Lº torrºrsº i. with esp to match. Renovn Cleansing “tºo-rest ©ear stag ears ***teur Gieve clearistog Cºrries Specials for This Week ?". at 3 &ll&resn’s brº y $$..tº , is $3), fºsys * * >{ s º - - - - º You are going to See SOInne Interesting things º - in our clothes for spring º º OR 525 and upward, you can buy clothes made from imported fabrics º which formerly cost you considerably more. We are combining better fabrics with our fine tailoring at no increase in price. The finest imported weaves which have heretofore been used for the cost- liest custom tailoring are available to us under the new tariff law. Stripes, plaids, black and whites, and gray and whites are some of the principal effects. Decorations are mostly in silk. Style features of the new season are simple, yet striking. In young men's clothes, they follow the shape of the figure; no padding; wider lapels and collars; shorter coats, smaller sleeves, narrow shoulders, softer draping. Men's styles, while more conservative, tend in the same direction. In our Style Book for spring, you will see all the new styles portrayed in a series of artistic and interesting pictures; you can ascertain where, in your city or town, our clothes may be seen and bought. The style Book will be ready about March ºt. The illustration above, a drawing by Edward Penfield, will be shown in colors on the cover of the book. If you desire a copy, end your name. Hart Schaffner & Marx Good Clothes Makers Chicago New York 31, Lord street º, Brewer Street, Golden square-w Huddersfield, England Foreign Offices Lºndon, England - | º-º-º: | | | º f l º | * | | Jº Jº. a Heatinº | |Nº. it. | U º - |. lºſſ sº | Tº | IIIL | | |Jin ſ | Till You Read. This ºl Illululullinulimultipululullûlumnillmullºulumn milliſill W Ai Hot Water, Steam, Warm Air You will be amazed at the high quality heating plants we supply for the deal direct with us, that it means greatest value, greatest satisfaction, and strongest guarantee of perfect service. You take no risk whatever. Should years from the date of purchase we agree to return the money paid us and transportation charges both ways. There is We have put the quality into our & ºz ºr ºx º ºxº cº- heating plants to back up our two-year & Sears, Roebuck and Co., Chicago. bºt. But, & © ºlºs Book: milmſlimſimil rock bottom prices we ask. Our new free book will convince you that it pays to your heating plant fail in any way to give perfect satisfaction any time within two No Stronger Guarantee Than Ours! Please mail me your Heating Plant Book No. 73rd guarantee. I have checked the system that interests me most. It is - s understood that this places me under no obligation to you. Mail Coupon Now Hot [] st Warm - - --- Get our book if only as a guide to the 3. Water Air right quality and the right price. Please : mail coupon, checking the system of heating * Name that interests you most. Address f SEARS, ROEBUCK AND CO., # Address - Chicago - Jº City- State - tº es sº sº, sº sº Tº new Baby Book is ready. It contains \º merchandise of a quality \ that makes it easy for us to guarantee absolute satisfaction in every way. It quotes prices that make the services of this store doub/y attractive to our customers. If you have received copies of our previous Baby Books you will need no urging to write for º new edition. Baby Book," you will be pleasantly sur- rised with the pring and Summer edi- tion which we want to send you free and … " º postpaid. Please ask for Baby Book No. 66W86. (Mailed in a plain envelope.) ſº º - - º ſº Sº - "Y" º Baby Merchandise Dept Sears, Roebuck and Co Chicago sº "NATIONAL" Money-Saving Fall Style Book Thi-i- important --nd y for the "National." style Book- don't put it on. It oners many bar- rains like these: ------------ -- women - - - - - --- -- - - ----- --- Al-o a full line of Underwear, Ho-lory, Scarf-Weil-, Glove-Leather Groº- 3ºtºwº “NATIONAL” Tailored Suits Mººg s 1 Oes to sG5 semºgri- * NATIONAL". Tailor-Made suita are shown in a -ºut-º-o-o-º- containing tashion platºfºllºhºnº rºle- ºthin Suit Booklet - not a part of the rerular." NATIONAL" 8tyle Book. So plea-anote rarefully: --Sp-cua-suit Boºklet -----------ºut only ---------for- The "NATIONAL.” Policy — w-prºpa-pe-t-t- and expre-are on all our good- to any part of the -------- rvery "National" rarment has the "national" guarantee rar attached-thi-----ar-that you may return -ny-arment new-au-ta-tory wro-and---ill r-ſued your aoner and pay expre-charge-tou-way. National cloak & Suit Co. 296 W. 24th St., New York City A | MAll This coupon Now! rease-ºd me, ºre, my coºr at the "national.” Fall style tººk _laire- ar-yºu-interested ºn seein-tº-n-Tauer-Made sults ºr Faur and do non-ºn-º-º-º-º-º-º-º-ºnational." Mºnº savin-style rºok, the special rºlet a "National." M*-to-Mºº-sur- T-----it- at the same time ---in-end you -mp.ºr-oil-ºukul - Fall Mater-- -------------------------------------- c- - --- --> --ara-ºr -it- rear - ºne ºrº- ºr -r-e- - º Our low prices are the result of modern methods of manu- facture, enormous output and direct from factory selling. Our guarantee, "Your money back at any time if you are nºt perfectly satisfied," and our reputation for fair and square dealing make you sure of the quality of Economy Engines. The following prices enable ou to buy a large and a small ºconomy engine for less than the price of one ordinary engine. 1,4-H. P., $29.95: 2-H.P., $39.95:4-H.P., $72.95:6-H.P., $102.95: 8-H. P., $149.65; 10. H. P., $219.50. Turn to the gasoline engine pages of our new big General Catalog, see our complete line of sizes for every purpose. If you haven't our new big General Catalog, just write “Gasoline Engines" on a postal card and also request our free Catalog No. 73F71 VERY Economy Gasoline Engine is required to pull more than its rated horse power before it leaves our factory. Every part of the Economy fits perfectly, which means less fric- tion, less wear and greater econ- omy of fuel. Duplicate parts are absolutely interchangeable. The Economy is the simplest engine on the market. It has fewer parts, is easier to operate and is guaranteed to give as good service for as many years as any other make, regardless of price. If you need a gasoline engine, you will purchase an Economy if you investigate thoroughly, be- cause you cannot find its equal at anywhere near the price we ask. Sears, Roebuck and Co., Chicago &lºº T - ===Tº | I №. ſae (, ;-) ! ! ! !|×| ~ !… ( № = ·· … !”)! , , , JEWELERS CC * * - º wº | - L º H.; see . . . | | | Are Y º H - º Loaf Isell - G. | | | T | | - | | | ERHAPS you are “ loafing on yourself” without realizing it. The man who “dreams’” about a higher position is a “self-loafer.’’ It is an absolute fact that the most difficult problem of the greatest employers in the world is to secure men for big positions. Marshall Field, one of the greatest merchants in the world, publicly claimed that his greatest difficulty was to secure trained men capable of filling positions paying $25,000 a year. It is all the matter of training, not dreaming TiNTERNATIONALCORRESPONDENCEschools --ox 84.1 scit ANTon, PA. Explain, without any obligation on my part, how We can give you proved records of can nuality for the º before which I mark - thousands of men who have climbed from the dreamer's class to the director's class through the training of the International Correspondence Schools. We will show you how to do it. Whether you live in the flood-wrecked city of Nome, Alaska - in a sun-baked adobe cabin of Arizona—or in the great commercial centers, the I. C. S. will show you how to improve your position and increase your salary. All we ask you to do is to sign and mail the I. C. S. coupon as directed. This places you under no obligation. It simply brings to you FREE information how to secure the training that has made the success of thousands of men who thought they were “down and out.” Mark and mail the coupon today | | | I | | | | | | | | | l I | I -- nu- ~~~~d ill- Salesmanship Electrical Engineer Elec. Lighting Supt. - ------ tºlectric Wirennan Telephono Expert Architect ----1-line:Contractor are hitectural draft-man structural Enrin-er Mechanical draft-man iterrigeration Engineer Civil Engineer Surveyor Mine superintendent Metal Mining Locomotive Fireman-Enr. StationaryEngineer T-ul-Manufacturin- Gaº Engine- Civil Servico Railway Mall clerk bookkeeping fºllºr Trinning show Card Writing Letterin--sira rainular Advertising: Commercial illu-tratin- Industrial Designing commercial Law Automobile Hunnin- Teacher lºnglian branches Good English for Every one Agriculture Poultry rarming Plumbing - 8 team Fitting sheet metal worker Navigation Lanruare- chemi- u-rman Nanu- Present Employer street and No- APPLICATION UF THE TEN TESTS 101 Company in putting it up to the architect is bound to impress the architect 1, orably. The service idea in offering genuine information in the booklets is a very subtle and commendable appeal to the good-will of the house builders. In the National Lead advertisement a most effec- tive appeal to sentiment has been made. The Appeal to N ational Lead Company is fortunate in jº’sºnii having a deep-seated prejudice in the sº minds of painters generally throughout the Lead country in favor of lead and oil as against 99"P", mixed paints. To maintain this sentiment and create an impression of being willing to give valuable advice when requested is good business judgment, and the results are unquestionably shown in the sales of the National Lead Company The Quaker Oats advertisement deserves special commendation. The economy of the 25-cent size is prominently brought out, but there is no %;"sacrifice to the appetizing suggestion of good *:::: *"oats well cooked. In the fine type in the Small paragraphs strong points that have been prominently displayed in previous advertise- ments are reiterated, and the cumulative effect, which is one of the most valuable assets of all ad- vertising campaigns, is given additional impetus thereby. The Holeproof Hosiery announcement is unusually effective in the use of the illustration. The fact that holeproof hosiery is made for men and women, with 102 ADVERTISING—SELLING THE CONSUMER. especial emphasis on women, is brought out with two female figures in connection with that of one figure of the man. The Ivory Soap advertisement is interesting in having so much space given to the illustration. The problem of marketing a 5-cent soap is to con- tinually create the atmosphere of quality to counter- How Ivory act the impression created by low price. Soap Creº The Procter & Gamble Company has un- #.%;"doubtedly shown great wisdom in the care Iiºn given to illustrations. In this particular advertisement illustration and text are both strengthened by being used together rather than by giving all the space to one feature alone. The title of the booklet itself suggests greater service to people who are already using Ivory Soap, but might not be conscious that they could use it for other purposes than that for which they bought it. The Hart, Schaffner & Marx advertisement is an interesting departure from the style which was original with this house, and has been main- New Style . . tº e gº of Art Work tained many years in showing ideal figures §: of young men in natural positions with & Marr clothes that showed wrinkles and creases Advertising as they would appear when worn by a well- behaved human being. The mail-order idea of giving more information to people who specially ask for it is the keynote of this particular advertisement. The effect of a fine style- book sent out to all who ask for it is far reaching. APPLICATION OF THE TEN TESTS 103 Inquiries coming from high-class prospects handed to the traveling salesmen, and properly used by them The Mail in talking to local dealers, are bound to order Ideg largely increase the dealers’ own efforts to tin General tº e © Publicity make use of the advertising helps which * Hart, Schaffner & Marx sell their agents. I use the word “sell” because this house sensibly takes the ground that advertising material which is given away free is valued accordingly. A fair price to partially cover the cost of production is the best assurance that the dealer will make the most effective use of it. In the mail-order line, I have reproduced three Sears, Roebuck & Company announcements (which Comments indicate the wide scope covered by this ºf most successful mail-order institution) and "...one of the advertisements of the National Cloak & Suit Company. The latter makes the most of the word “National” and also of its New York City location, which with a large group of buyers stands for that intangible some- thing called style. The Sears-Roebuck announcements are charac- teristic in the fact that the successful mail-order house seeks more than anything else to get the catalogue, which is the real salesman, into the hands of the people who have been induced to express a desire to possess it. I have reproduced only one outdoor advertise- ment, and that is the White Rock electric sign, which 104 ADVERTISING—SELLING THE CONSUMER. Mr. O. J. Gude told me was the best thing that had ever been done in that line. Applying While it may seem hard to apply the ten }...". tests to an electric sign, a bulletin, or a Outdoor poster, I recommend making the attempt for * reasons previously given. Taking this electric sign, the White Rock for in- stance, the first test—“Is it institutional?”—is jus- tified by the fact that this advertisement ºff: #º was placed on Long Acre Square, the night * centre of New York City, the place to which Measures come the largest number of free spenders #. %* from all over the United States. White Rock as a trademark has been as- sociated with sales talks and educational advertising all over the United States. Its reproduction here reiterates, reaffirms, and reinforces all that has been said about it. The night life of New York City is an institution in itself, and the White Rock sign, with its brilliant light, is in full harmony with this insti- tutional spirit. The advertisement is natural (test No. 2). The big words “White Rock” and the suggestion of moving water are double embodiments of this idea. This electric sign is specific (test No. 3) because the White Rock trademark in its peculiar, distinctive form is accurately reproduced. It is certainly timely (test No. 4), for when two hundred thousand or more people are out on the APPLICATION OF THE TEN TESTS 105 street in a money-spending mental attitude, it is a good time to remind them that White Rock is a good thing to spend money on. It is pertinent (test No. 5), because White Rock appeals to the men who imbibe spirits in suggesting a high-ball, and also to the people who want to drink something else that does not seem cheap or puritani- cal. It is a consistent (test No. 6) announcement, in every way reflecting the spirit of the water itself, and the consuming group to which it belongs. The suggestion of persistency (test No 7), of authority (test No. 8), of plausibility (test No. 9), and sincerity (test No. 10) are all contained in large- ness, dominance, and location of the sign taken as a whole. The sincerity of an institution that would spend so much money to tell the story in the way that it is done in this electric sign cannot be open to ques- tion. The story is certainly plausibly told, because the association of the phrase with the clock makes the broadness of the suggestion of “all time” more acceptable than if the clock itself were not dis- played. - Authority is suggested in the bold, aggressiv manner in which the sign itself stands out as against all other placards claiming attention, and persistency is suggested in the accurate reproduction of the trade- mark itself. There can be no question that the orderly and sys- 106 ADVERTISING—SELLING THE CONSUMER. tematic application of these ten tests to any piece of The Tem printed matter, or any announcement of Tests Apply any kind, displayed in newspapers, maga- &##. zines, or outdoors, would result in more care of... being given to the work, and more thought Advertising © tº along the line of serving the final buyer, and hence, bound to benefit the advertiser’s business as a whole. CHAPTER X ADVERTISING AND SELLING THROUGH THE ORDINARY CHANNELS OF TRADE ROADLY speaking, there are five recognized routes by which merchandise travels from the man who makes it to the consumer. Perhaps the most important are: from manufac- turer to wholesaler or jobber, from the wholesaler to the retailer, and from him to the consumer. The place of the retailer in the distributive chain is universally conceded. Mail-order successes prove that many kinds of goods can be marketed The * tº * Retailer— by mail; but the retailer will always handle #. the bulk of the supply of the American Merchan- family. ** His stock is complete, if he be progressive and easy of access. Merchandise can be seen be- fore it is purchased. Very often the credit which the retailer can extend is a real service, which brings him a goodly share of the business of his trade terri- tory. The position of the wholesaler may not be so clearly defined. At first glance it might seem that the toll he exacts would better be taken from the sell- 107 108 ADVERTISING—SELLING THE CONSUMER. ing price and his service dispensed with. It would not pay, generally. He has a function, and is in- - dispensable in most cases. He keeps a finger The § - $ Functions on the pulse of local conditions. The manu- wi.* facturer can afford to sell him at less than the price to the retailer, for the service he renders could not be duplicated by the manufacturer for the differential he allows the jobber. { The wholesaler buys in much larger quantities than the ordinary retailer does. He relieves the manu- facturer of all work and detail in connection with credits and selling small orders and collecting small accounts. He pays for what he buys and assumes entire responsibility for his own sales. He is par- ticularly indispensable to the manufacturer of an article of comparatively small consumption. The volume of sales to each retailer is so small that it would be foolish for the manufacturer to do business with individual retailers, either direct or through salesmen. - The wholesaler is of great value to the retailer who is doing business on a small amount of capital. His stock is large. Retailers in his territory. Wiśniºr can draw upon it and get the goods at once; º, º; so that it is not necessary that they cumber their small space with large quantities of each of the lines they handle. He is safe in granting credit, because he is on the ground and knows the retailer’s financial status. Some manufacturers selling privately branded ADVERTISING AND SELLING I09 goods in staple lines of steady consumption give the exclusive sale of same to one jobber in a territory. * This gets more coöperation from the jobber, jor if he has the right kind of a contract, he is building for himself as well as for the manufacturer. The exclusive jobber plan has been successful, especially when supported by general ad- vertising. Specialties of small consumption have never been marketed advantageously through ex- clusive jobbers; this method is feasible only when it is possible to divert an established demand to an advertised, trademarked brand. It will not create a market for a novelty. It would not do for an un- branded article. Most manufacturers sell to all reputable jobbers. They cannot expect them to put any special effort pº, into selling their goods, because the jobber Advertiser specializes on distributing, and is not Must Cre- * * * * ... ii., equipped for creative selling. It is, there- #º. fore, the business of the manufacturer to . Is a create his own market—by advertising to ” the consumer, by interesting the dealer with specialty work, and by trade journal publicity. Some manufacturers will put up goods under jobbers’ private brands. But it militates against the manufacturer who wants to sell his own brands, and the one who sells bulk goods. It is, nevertheless, legitimate competition. Many manufacturers sell direct to the retailer. It is hardly amiss to include in this classification the 110 ADVERTISING—SELLING THE CONSUMER. manufacturers who maintain an extensive selling force to solicit the dealer direct. The orders which Selling the the specialty salesmen get are filled through Retailer the wholesaler, who takes over the accounts. ” He can fill the orders more promptly, he is better equipped for looking after repeats, and he assumes the retailers’ accounts. These functions make his service worth while to the consumer, re- tailer, and manufacturer. Almost all manufacturers of national products employing the wholesaler do some specialty work on retailers at their own expense. The manufacturer who sells through an exclusive dealer eliminates the wholesaler. Selling direct to all dealers can scarcely be said to lower the price to the consumer, or lower his own selling cost, or even to increase the retailers’ profit. The manufacturer must take care of more detail in his office, must increase his traveling sales ex- penses in most cases, and must assume responsibility for retailers’ accounts, which means more bad debts. He may sell to retailers direct or through salesmen, and pocket the wholesaler’s commission; but if he is after volume and big business, I doubt if he would save money by doing without a wholesaler. na. The advantage of direct selling is that it for Selling gives the manufacturer a more intimate 'rect knowledge of selling conditions, a closer grip On his own business. It gives him the master's share, and the power to extend substantial coöperation, if ADVERTISING AND SELLING 111 his product is good and his organization able to jus- tify the sales expense by keeping up the steady sales incident to such expenditure. Some manufacturers sell to both retailers and wholesalers. But if they sell a retailer in the logical trade territory of a wholesaler to whom they have also sold, there will surely be friction. To sell the re- tailer at less than the wholesaler’s regular price to him is not in accordance with the ethics of the trade. Large retail stores that go direct to a manufacturer and demand wholesale prices are another problem, if the latter is committed to the general policy of selling to wholesalers. The third channel is through a third middleman, the manufacturer's agent, broker, importer, or exporter, ..., as the case may be. He buys from the The Thºrd Middleman manufacturer and sells to the wholesaler, º who sells to the retailer, and the retailer Importer, sells to the consumer. " * The functions of the importer and exporter are fundamental. He gets goods from foreign coun- tries and ships domestic products to markets where they can be sold. Only the largest and most com- plete wholesale or retail establishments are able, in their own organization, to take care of the particular service of the specialist importer or exporter. He sells to the wholesaler. He is seldom equipped for going direct to the retailer or the consumer. His margin of profit is small; volume is vital to his existence. Small sales do not interest him. 112 ADVERTISING—SELLING THE CONSUMER “Merchandise broker,” and “manufacturer's agent,” are practically synonymous terms. The merchandise broker differs from the importer * or exporter mainly in that his work is intra- *:::::::: national instead of inter-national. He is the manufacturer’s exclusive representative for a certain field. In this field he represents from two or three to fifty different non-conflicting pro- ducers. His margin of profit is smaller than that accorded the wholesaler; he is after volume. He makes it possible for the manufacturer more nearly to approximate a unit system of distribution. The manufacturer's broker carries on most of the negotiations with wholesalers. All difficulties are referred to him for adjustment. He may have much to do with framing the general policy for his territory. He comes nearer than any other member of the dis- tributive family (save the representative on salary from headquarters) to representing the manufacturer direct. The broker seldom goes straight to the retailer. His commission will not permit it. He must go to The Broker the wholesaler, where each order means big Sells the business. If he does any work at all on re- Wholesaler . . tº a º © º tailers, it is for the purpose of influencing demand upon the wholesaler. Progressive firms which employ a broker and want to get the maximum volume of sales allow him to engage a specified num- ber of specialty men; or they send specialty men to work for a time under the direction of the broker. ADVERTISING AND SELLING 113 These men call on retailers and stimulate demand upon the wholesalers by whatever arguments of merit, advertising, profit, or special coöperation seem best. House-to-house canvassing of consumers, Sam- pling, and store demonstration are means by which the manufacturer coöperates with the broker. The size of the manufacturer’s organization, the amount of capital he has, and the universality of the appeal of his product must determine whether or not he will use brokers and the amount of coöperation he shall give them. º The fourth route is from the manufacturer to the consumer, with no intermediaries save the manu- Selling the facturer's own representatives on salary or Consumer commission. This classification includes Direct (1) the mail-order house, and (1a) the manu- facturer selling by mail, and (2) the manufacturer operating his own retail stores or selling direct through agents or salesmen. Mail-order houses are of two sorts. The primary purpose of one is to sell goods of its own manufacture, the business of the other is to sell goods by mail. In the first class is the manufacturing house specializing upon a few articles; in the second, firms that maintain extensive manufacturing establish- ments, and also buy from other manufacturers ma- terials to complete their very extensive lines. There is the manufacturer, either of specialties or of articles of such a nature that it seems best to reach the consumer through a direct representative, who 114 ADVERTISING—SELLING THE CONSUMER. receives from the manufacturer either a salary or a commission. The automobile maker who maintains agents or branches in different cities for the purpose of selling his output direct to users is an example. But if he allows his cars to be sold by an independent local sales company, he must be accounted as using the second trade channel—manufacturer to retailer. The sale of advertised specialties has developed a type of manufacturer’s representative who is not at all like the ordinary merchandise broker, who goes to the wholesaler with a sample, quotes him a price, and wires his principal the wholesaler’s offer. The manufacturer’s representative selling advertised specialties must be a creative salesman in every sense of the word. He must understand how to conserve the value of the trademark. He truly represents the manufacturer in serving the customer and does not compete on a price basis. Small specialties are often established by solicitors sent out from the manufacturer’s office. Firms Introducing having only a small capital, and unable at Cº. the outset to advertise and sell in a big by way, often use solicitors, for a time only, ” as a means of making the goods known and as a preliminary to selling through retailers. Specialties which are limited in appeal cannot be sold successfully by any other means. If the mar- gin on them is small, the Solicitor handles them as one of a number of articles which he is prepared to present to the consumer. ADVERTISING AND SELLING 115 The manufacturer who operates retail stores is also a direct-to-the-consumer seller. In his advertising The Man, he often lays particular stress upon the state- ſº. ment that he has eliminated the middleman’s erates Riail profit and can, therefore, make the consumer ** a better price. It may be he can, but I doubt it. He has taken upon his own shoulders the burden of maintain- ing a more complex organization and of handling many men on the road. In other words, he cannot eliminate selling expenses by going direct to the con- sumer. He may minimize it, by perfection of sales equipment and the institution of economics in the supervision and conduct of his business. Unless he is a wonderful organizer and a handler of men, he may find at the end of the year that his net profits are less, and that the public has fared no better. That does not mean to say that direct- to-consumer selling is not economical; but that the highest type of business ability is necessary if the manufacturer is to make a success of it. Chain stores are not examples of manufacturer-to- consumer selling; they are organized retailing. In the fifth case, the mail-order house, instead of going direct to the manufacturer, buys from his sales r), agent. This means the mail-order depart- Mail-order ments of large businesses whose chief con- House tº * tº * º cern may be either wholesaling or retailing, but which maintain mail-order sections. It also covers the buying of goods by a mail-order house 116 ADVERTISING—SELLING THE CONSUMER. from an importer or exporter or a merchandise broker instead of from the manufacturer direct. The conditions which control the production of an article, the amount of capital to be used for pro- motion purposes, the utility and value of the article itself, the distance which separates it from its mar- ket—all those things must be considered in choosing a selling method. Almost all selling systems call for a middleman. Importer, broker, wholesaler, or retailer, whichever he may be, he is a helpful factor in distribu- The e ſº g & tº Middlemantion and has justified his existence. To º market merchandise costs a certain amount All Selling of money, varying in accordance with the * character of the merchandise and the ability and the amount of work that the selling organization will put into a campaign. A manufacturer who de- cides not to employ middlemen does so because he has developed—or is convinced that he can de- velop—within his own organization the distributing ability which is the primary function of the middle- man. Whether or not he can do this on a less outlay than it would take for middlemen is a matter which he must determine for himself by trial. The manufacturer must be a creative salesman, or surround himself with men who are, or his busi- ness will come to nothing. The middleman must be a producer—serving the consumer—or be elimi- nated. Nothing that I have said in this chapter should be ADVERTISING AND SELLING 117 construed as endorsing the idea that all merchandise going from producer to consumer, through all the five routes I have outlined, are the correct ones for the merchandise to follow. In many instances I believe radical changes in distribution should be made. There are manufacturers who sell to the jobber, through a sales agent; the jobber then sells to the retailer; the retailer then sells to the consumer. There are many articles handled this way which could be shipped in original packages direct from the manufacturer to the consumer, even if the sale were handled through two or three middlemen, and every party to the transac- tion be materially benefited and especially the con- SUIIIle I’. The route of this distribution should be adapted to the character of the merchandise. The functions ., of the middleman should be clearly under- The Mid- tº dieman's stood by himself, and he should not attempt §h. to do things that other people could do Clearly better, more economically, and with greater Defined . . . . o satisfaction to the consumer. There is need for radical adjustment all along the line, but the particular point that I have endeavored to drive home in this chapter is that it is possible for the manufacturer to reach the consumer, using all of the established routes of distribution, and the consumer hold the manufacturer responsible for the quality of the goods that he makes, and the manu- facturer be benefited by the sense of responsibility which he feels toward the consuming public. 118 ADVERTISING—SELLING THE CONSUMER. I recognize that many distributors are going to fight this change the same as the old hand compositor fought the introduction of the linotype machine. Yet, from my own experience, I know that linotype operators make from two to three times as much a week as they did in the very best conditions under the old system of hand composition. The same is true regarding many distributors—they have learned their business by blindly following customs as they found them. They have not analyzed and thought things out, and realized that there were better ways of doing business. Many manufacturers blindly accept the idea that the middleman who pays them for their goods is their customer. Goods in the market are a menace The Midijnan to the man who has made them—goods are é.... never sold until they are in the hands of the consumer—the final buyer, the man who does not want or intend to sell them again. Many distributors are recognizing the new order of things, and confining themselves to banking and purely distributive functions. They are not at- tempting specialty salesmanship when they can secure the coöperation of the manufacturer’s men on this point, get more expert assistance, and make more money than they could by having a larger margin of profit and taking the responsibility on their own shoulders of doing necessary specialty work educating of the trade. All along the line the distributive system is loaded ADVERTISING AND SELLING 119 with heavy labor costs—usually the lowest priced labor is the most expensive for the purpose for which it is employed. Advertising can, in every line of distribution, be used to a greater degree to reduce the cost of distri- . . bution, and at the same time to increase the Advertising e cºſ. compensation of the necessary personal labor #. required to maintain the various distributive enefit channels. One prominent retailer, who is generally reported to figure his cost of handling merchandise to the consumer from his source of supply at 30 per cent. On the gross price, told me that over half of his expense was labor, and including clerk hire, management, delivery men, janitors, etc. He took pleasure in telling me that his advertising expense was less than 1 per cent. On his total business. I told him that I thought he was overtaxing the consumer with an expense of 15 per cent. in labor and only 1 per cent. in the form of informative advertising, which could unquestionably reduce the cost of salesmanship, when it had the intelligent coöperation of clerks trained to thoroughly coöperate with the selling cam- paigns, of which advertising should be a more impor- tant part than at present. This same condition runs through the jobbing business. Many men unpack and handle goods and pack them up again, which, if standardized, and the consumer educated to want them in exactly the form in which they left the manufacturer, could be shipped 120 ADVERTISING—SELLING THE CONSUMER. direct from manufacturer to consumer, but bought intelligently in a retail store from well-displayed samples. There is tremendous opportunity for improvement along these lines, and I predict that the next ten years will see changes that might be characterized as revolutionary. I still affirm that the regular established channels of trade will be maintained fundamentally along the same lines as they now exist. REFERENCES ON CHAPTER X There are trade papers which deal with the prob- lems outlined in this chapter, many of them. Some are of unquestioned leadership, with offices in all important trade centres. Particularly noteworthy are the Dry Goods Econ- omist and Iron Age (both published in New York), which are edited by men of great power and national influence. There are five (monthly) publications for under- takers and eight for miners. The grocer, the general merchant, and the allied trades are served by sixty- eight publications. And so on down the list, from automobiles to watchmaking. Each one of these trades has its own literature, to say nothing of house organs and catalogues which display the highest type of advertising skill. CHAPTER XI RETAIL ADVERTISING—PREPARATION N CONSIDERING retail advertising, one must not forget that many merchants have gone into business without any carefully laid plans in an- ticipation of what they were to do. Many men have inherited the business—others have started in as clerks, and gradually worked up. In the agricultural districts are retired farmers who came into the towns to educate their children, and many of them engaged in the grocery business or dealt in agricultural implements. The numerous failures reported throughout the country tell a graphic story of unpreparedness, lack of expert knowledge of the business itself, and especially of the characteristics of the consuming public. Perhaps at this point I may be justified in digress- ing a little and expounding one of my pet theories A sºn, in reference to the United States Gov- Labor ernment, making as far as possible a con- Nºjo stant demand for labor. In 1896, when ; Secretary Bryan was urging the free coinage etailing e © e of silver, I wrote an article which was pub- lished in the Chicago Record, on the free coinage of labor. It will be found in Appendix No. 1. 121 122 ADVERTISING—SELLING THE CONSUMER, I have never been able to become very enthusiastic over the idea of the Government going into business government except on such natural monopolies as the Should Post Office Department and Government Operate * gº sº Natural savings banks, where, especially in the lat- **ter case, the people could have protection and absolute security, and in times of panic would not hoard their money to the serious detriment of business. The American people are too prosperous as a whole and too kind hearted to permit any human being to suffer for the want of food and shelter or raiment. If labor is not performed in exchange for these three fundamental needs of human nature, then society as a whole must bear the burden. Organized charity will provide for anybody who absolutely suffers for the lack of food, clothing, or housing. But society, as a whole, should have the benefit of the labor that every human being can perform. It is a little short of a crime to have idle men at any time, especially when they really want to work. This The condition is an indictment of the business §. ability of the American people to so manage tory their own economic affairs as to provide for * their bestinterests. Ihave often thought that if the United States Army would enlist men for a six months’ period, put them to work at road build- ing, pay them handsomely for it—this would be the surest method of establishing a minimum wage for labor throughout the country, and at the same time RETAIL ADVERTISING—PREPARATION 123 would ensure the general public as a whole getting the benefit of all work from people who were willing to work. Unless the Government does this, it means that retailers must always carefully consider the labor conditions in any section in which they wish to do business. Industries in which men are liable to be out of work for long periods of time make the re- tailing in such sections very precarious. The mer- chant cannot forecast, as he should, his purchases, and at times he is absolutely forced to take on serious credit risks. Other things being equal, the retailer should prefer a location in a city where the industries are largely advertised. Manufacturers who use advertising to create a permanent, steady market are least affected by industrial changes. Employees are benefited by this policy, as in times of general depression they are not laid off. Once having determined on the location, if such is within the option of the retailer, the next thing The to do is for him to decide the particular street Locºon upon which he will locate his store. º Here again we see the value of the group spirit: this accounts for the fact that so many square feet on the corner of State and Madison streets in Chicago are worth many times more rent than identically the same amount of space one mile therefrom. The fact that a large group of people have formed a habit of passing a particular corner, or along a par- 124 ADVERTISING—SELLING THE CONSUMER. ticular block, every day, is the reason why a location at that point is worth more to the retailer than the same amount of space a short distance away. The retailer, after securing his location, should then consider the characteristics of his group as a Apprecia whole, and also those of the many smaller ºf , groups of which the community is composed. Mental and tº ſº & Physical He should study their tastes, their preju- * dices, the influences that are at work to maintain or change their mental attitude and their method of living. The retailer should select his clerks carefully from the viewpoint of their fitness to harmonize with the tastes of the majority of his customers. Much could be said about fitting up his store so that everything would be convenient of access. Ample opportunity in the way of showcases, counters, and shelves should be given, after being carefully thought out, for the display of desirable merchandise. Mute salesmanship of this character costs little money but brings substantial results. The retail merchant should buy reliable, depend- able goods. It is always better to concentrate his Buying purchases to as Small a number of sources of shºe supply as possible in order to make his busi- ‘.... ness worthy of being sought by the best houses, and in this way insuring the largest amount of attention. Where the quality of mer- chandise or the general policy of the houses from which the dealer can buy his supplies, is the same, then he should, in justice to himself, give the pref- RETAIL ADVERTISING—PREPARATION 125 erence to the salesman who studies his needs and who is best equipped to counsel and confer with him on how best to merchandise the goods that the dealer buys from him. There are many dealers who owe much of their success to the counsel and advice and careful study of their business on the part of salesmen who regarded their line of work as an opportunity for service, and who valued the dealer’s confidence in their judgment as a sacred trust. After a dealer knows the purchasing capacity of his possible customers, he should endeavor at all times to bring them up to an appreciation of a little better standard than they naturally would ask for. In this way he secures the leadership which is necessary for him to build up his business, and to secure and hold the trade of people who like to feel that they are appreciative of quality and that goods have been brought to their attention because of that fact. The retailer should always put in advertised goods when they are of equal merit with the unadvertised lines. If he can buy other goods for less ; money, which in his judgment are equally ºf 4dver, good as the advertised line, then he should tised and te - gº tº Ünadier determine how valuable to him is the adver- p., tising on the higher priced line. If he can figure that this advertising will save him clerk hire, rent, and other expense, then the advertis- ing justifies itself. As a rule, however, the advertised lines are generally meritorious, and the cost of adver- tising is not borne by the consumer. In this case the 126 ADVERTISING—SELLING THE CONSUMER. dealer has no excuse to do anything else but handle the lines that are advertised. Careful discrimination should be exercised by the retailer in taking on exclusive lines of goods. There Exclusive are many manufacturers who use this 49*) method of marketing their goods, because they know the thought of having something that one’s immediate competitor does not possess ap- peals to retailers generally. Often retailers make a mistake in listening to this argument, for there are articles of great national sale which are open to any distributor who will buy them, that unquestionably give the greatest satisfaction to the final consumer because of the advertising which has been done in advance, and which is continued after the purchase has been made and the buyer's satisfaction ensured in every possible way. Retailers often make the mistake of trying to substitute an article on which they have exclusive National local sale against one that has a broad H. national sale. As I have tried to show in #: other chapters in this book, a manufacturer who can get control of the market and re- duces the price to entrench himself therein unques- tionably gives the greatest possible service to the final buyer. I do not know any of these manufac- turers who have reduced their prices who want the retailer to handle goods without a satisfactory profit. In fact, so far as I know, all of these agitations that are being waged, which advocate legislation in Con- RETAIL ADVERTISING—PREPARATION 127 gress in favor of permitting manufacturers to insist on retailers maintaining their prices, are done by the manufacturer. He wants the retailer to make money, and he does not want to reduce the retailer’s profit. He knows that if he can get the largest pos- sible volume of distribution, he can, in the economy of manufacture, reduce prices and entrench himself against competition in his own field. He knows that price-cutting on the part of the retailer reduces the volume of total sales, and that the retailer cannot render the consumer the best service unless he is sure of regularity of demand. Retailers often make a mistake in spreading their expense of doing business over all the articles they Analyze sell. For instance, it certainly costs a re- Selling tailer more in rent and labor and overhead * to serve a glass of soda at 5 cents a glass than to hand out a package of chewing gum, the demand for which has been created and developed by large national advertising. The retailer fools himself if he thinks that the washing of the glasses, the labor in dispensing the soda, and the amount of time taken up by people standing at the soda fountain is anything like the same degree of expense to him as the transaction in- volved in handing out the chewing gum. All he needs to do is to figure how many sales a clerk could make to people who came in and asked for chewing gum, provided they came in all day in somewhat similar manner to which the patrons of an elevated 128 ADVERTISING—SELLING THE CONSUMER railroad go through the gates and drop their tickets into the ticket-dropper receptacle. The elevated rail- roads—alargeinstitution—furnisha.good deal of trans- portation for 5 cents as well as covering the labor of people who sell tickets and receive them at the gates. This analogy applied to advertised goods explains why many merchants are so successful who take hold and coöperate with the national advertisers in the distribution of these goods by pushing them. The retailer can use every advertising medium that I have described in this book. Many of them he can afford to use directly. He could get the benefit of all of them indirectly by cashing in on the manufac- turer’s advertising on goods that he distributes exclusively in his own section, or by coöper- cº ating with the big, heavy, national adver- £º, tising campaigns on goods that are not confined to any particular store, and by doing this, he will get more than his ordinary share of the business which the manufacturer is creating. The dealer should do no advertising until he is ready with the goods to back up all that he promises in his advertising. REFERENCES ON CHIAPTER XI Mr. Harlow N. Higinbotham, formerly a partner of Marshall Field & Company of Chicago and president of the Chicago World’s Fair, has written a valuable book entitled, “The Making of a Merchant,” pub- lished by Forbes & Company, Chicago, 1911. RETAIL ADVERTISING—PREPARATION 129 Advertising has developed greatly as a service factor since Mr. Higinbotham was active in business. He recommends unadvertised lines as giving the dealer a greater profit. To-day he would find that the manufacturer's advertising on many lines saves the dealer clerk hire, rent, and brings him business. He recommends retailers to teach their clerks to be decisive in dealing with customers, and aptly says: “When the decision is put up to the customer he will invariably name the brand most widely ad- vertised, because it is the first that comes to his mind.” CHAPTER XII IRETAIL ADVERTISING—METHODS AND MEDIUMS HERE is no argument needed to convince any one that if people come to a store, make their selections, and allow the proprietor to deliver goods through an organized delivery method, that they can secure more for their money than if they make purchases from peddlers. The first purpose of advertising on the part of the retailer should be to bring people into his store. The people who pass the store every day are in- fluenced better by the store window than any other medium that could be used. Goods should not only be attractively displayed but should be marked with prices. In this way the effect of the adver- tising in the store window can be accurately checked up. - The same clear-cut fundamentals govern the suc- cess of a department store and a fruit-stand. Each exists, primarily, because of a group. Each has been established in a locality to which common interests and needs draw a group of people constantly. In polishing his apples, arranging the grapes and cherries in Small packages, and putting in his spare 180 METHODS AND MEDIUMS 131 time making up attractive assortments, the fruit- seller shows the same elemental appreciation of the au, advertising value of display which is revealed Favorable in the department store’s handsome win- Attention dows, neat shelves and counters, and care- fully trained clerks who impress all comers with the fact that “it is a pleasure to show goods.” The price ticket on a basket of grapes is at once an appeal to the bargain-hunting instinct of the suburbanite and constantly a confidence-compelling affirmation by the proprietor that the goods are worth the price asked, and that he is willing for any one to know it. This same fruit vendor has found out that he can depend upon a certain class of discriminating trade if he sells well-advertised goods in the original un- broken package. Many a small store proprietor would do well to follow his example and display them in his windows. A retailer in Chicago recently moved his store and paid $15,000 more a year for rent for identically the same space he had before. In the new location he had six show windows, as he took a corner, where before he only had two. It is a question whether the class of people or the number which pass the new store were any different than in the other. The $15,000 additional rent was more than justified by the four additional store windows. These windows were constantly changed with goods attractively displayed. 132 ADVERTISING—SELLING THE CONSUMER. After the store windows have been used to bring people into the store, it goes without saying that Inside goods should be attractively displayed in- §. side the store, not only to interest people, #. but to stimulate their desire to purchase. This mute salesmanship, employing the power of suggestion, often makes more sales than a clerk can do by trying to talk people into buying. The very best medium that a retailer can use to bring people into his store that do not regularly pass by his location, is the newspapers. A retailer who knows how to use a local newspaper and get a prompt response is very fortunate indeed. As I have said before, it isn’t necessary to adver- tise bargains all the time. It is wise for the retailer to regularly and systematically impress upon the readers of the newspapers the fact that he sells de- pendable goods, and he stands back of everything offered in his store. In only one way has modern business improved upon the method of the late Mr. A. T. Stewart, who used to stand at the front door of the The Chief s º - #...? store, greet his regular customers by name, ** and occasionally slip into a package a tape- Modern J. Business is line, a spool of thread, or some other useful #.9% little article, for good measure. The im- From a Per- º sonal to In-provement is the change from a personal to stitutional • * & e Bj an institutional business, the result of em- phasizing the fact that the business is being conducted according to such sound merchandising METHODS AND MEDIUMS 133 principles that the constant personal presence of the owner is not essential to perfect service. The one- price system and the “money-back if goods are re- turned within a reasonable time” have gained the confidence of the public. This thought should be continuously reiterated in the retailer’s newspaper announcementS. . One of the best ways in which a retailer can use his local newspaper is fully described in another chapter headed “National Advertising and Exclusive Dealers.” Where the retailer has exclusive sales of a nation- ally advertised specialty, it doubles the value of his own newspaper advertising by connecting his store with the national magazine advertising of the manu- facturer. There are many advertising mediums which the retailer should absolutely refuse to use. I refer par- The ticularly to those that are of a semi-benev- Retailer olent or semi-charitable character. Should Be © tº ſº Able to The retailer should make an advertising ** appropriation of from 3 to 5 per cent. of his total sales and then spend it as if it was the money of somebody else that had been entrusted to him to accomplish the best that could be done with it. The retailer who looks at his advertising appropriation in this way will not use the various schemes that are continually being put up to him. There are men who go around the country enlisting the retailers to advertise in their own local newspa- 134 ADVERTISING—SELLING THE CONSUMER pers on schemes that make the solicitors enormous profits. This, however, is being relegated to the past because of increased appreciation of the value of good advertising methods on the part of the retailer and the newspaper publishers. The retailer should not buy calendars or novelties or devices of any kind unless he knows in advance exactly how he is going to distribute them. - The very best way to distribute anything of this kind is to have people come into his store and get The them. He should have a distributing plan Plan Moré in the form of newspaper or mail adver- Im. nt . . . e e fan the tising to accomplish this before he buys. ** If a retailer feels that he must contribute something to a local church Organization, or a lodge, or some other semi-benevolent enterprise that ap- proaches him for an advertisement in a program, he ought to, in some way, find a method by which he could contribute the equivalent of this money in the form of merchandise which people would have to come to the store to see or to derive any benefit there- from. It would take several books to record all of the clever ideas that have been worked out along this line. There are trade-papers and special advertising papers that are continually recording these things, and it is not the function of a book like this one to go any further into detail. The dealer should, at all times, have his store in such an attractive condition that it is profitable for him to have people visit it. METHODS AND MEDIUMS 135 I have previously pointed out that the big depart- ment store is in the best position to use local news- papers. Fortunate indeed is the retailer in a town that has a good local newspaper, circulating entirely in his trade territory. An entirely different problem is presented to the neighborhood retailer in a large city or to the sub- urban dealer who has no local newspapers whose trade territory corresponds with his own. These suburban storekeepers, especially grocers and druggists, are just now discovering that if they nº display wares which are being widely ad- ; vertised in newspapers and magazines that ð... g., circulate in their neighborhood, they can #... cash in on this advertising identically as anufac- . tº turers' if it was their own. * A number of newspaper publishers realize how important it is that these retailers who cannot afford to advertise themselves know how to benefit by the manufacturers’ general advertising. No department store proprietor would even think of advertising a special line of goods, unless his clerks were properly educated and specially coached how to coöperate with the advertising when the people came in to see the goods. All retail stores can use the manufacturers’ newspaper and general adver- tising, without paying for it, by merely coöperating with it. The retailer who knows what is good in newspaper and magazine advertising, who knows the circulation of the general mediums in his ter- 136 ADVERTISING—SELLING THE CONSUMER ritory, can realize on the manufacturers' advertising just as completely as if he was paying for it himself. If he is in doubt as to the amount that is spent by the house that sells him, he can get accurate infor- mation by applying direct to the publisher, How the e ‘º gº tº fºil, or to any large advertising organization that "..."coöperates with national advertisers in pre- - paring and placing copy. Some retailers have been imposed upon by adver- tising promises that have never been realized, and have erroneously assumed that all advertising is alike, and that one manufacturer’s publicity is no more valuable than another's. No part of the re- tailer’s education is more important than that he have an accurate knowledge of advertising mediums, both national and local. This will enable him to dis- criminate between the manufacturers who use adver- tising to serve the consumer, and reduce the cost of distribution, and those who try to bluff him by making him think that the advertising is being done on a larger Scale than is really the case. The better grade magazines, newspapers, and class publications are exercising close censorship over the manufacturer who does business along questionable lines. Many publishers will not accept copy unless they know that the advertising is sincere, straight- forward, and done with the idea of benefiting both the consumer and the distributor. Just as any banker will give an opinion of any worthy investment, so any advertising house of standing will verify the METHODS AND MEDIUMS 137 claims of the reputable advertiser. Dealers certainly should not give their coöperation where this is lacking. In closing let me reiterate that a dealer should sit down at least once a year and map out for himself a Plan Your definite, tangible, complete campaign. He fºr." should know exactly how much his appropria- "...” tionis,and heshould spenditas if it was some- body’s money that had been entrusted him to get the very best results from. He should be regular and systematic, and he should use all of the means that are placed at his disposal. He can have all of the exhilaration of the chemist who works in his labora- tories, the satisfaction of the mathematician that solves problems, the zest of the hunter, and the calm satisfaction of the man who makes plans and sees them materialize. REFERENCES ON CHAPTER XII Very manybooks have been written about retail ad- vertising. Correspondence school courses are largely concerned with writing advertisements for retailers. A number of houses furnish a syndicate service in the form of ready-made advertisements selling one dealer in a locality. In almost every city of 10,000 population or more there are one or more advertising agencies or adver- tising service bureaus which make a specialty of writing copy for retailers. Practically every paper covering retail trades has a department devoted to retail advertising. 138 ADVERTISING—SELLING THE CONSUMER The live daily newspapers, in metropolitan and provincial cities, are the best primers for the man who wants to study the best, latest, and broadest aspects of retail advertising. Mr. George M. Reynolds, president of the Con- tinental and Commercial National Bank of Chicago, states that when a boy in a small Iowa town he sub- scribed for the great newspapers of our large cities, in order to keep constantly in touch with the outside world. CHAPTER XIII RETAIL ADVERTISING-MAKING GOOD T AN exhibit of farm vehicles, once, I heard A a barker point out clearly the institutionalism of banking and merchandising, and the labor- saving value of trustworthy methods of doing business, in his reply to a couple of farmers who were chaffing him about his sales talk for the buggies he was dem- onstrating. They told him he was the most in- teresting liar that they had ever heard. He turned on them and quickly said: “You are honest farmers, but you have a peculiar way of showing your honesty when you do business with each other. You trust your bankers with your money without question. You let your wife and children trade with your local merchants and it never bothers you at all, because you know they will be given a square deal. But I notice that when one of you wants to buy a horse or a calf or anything else from another farmer, this is never delegated to anybody. You always do the work yourself. You are honest, you certainly are, and you show it in the way you trust each other.” The particular point in this story is the fact that the dealer is expected to be honest and trustworthy 189 140 ADVERTISING—SELLING THE CONSUMER. as a matter of course, and there can be no doubt that his influence, prestige, and permanent position in the field in which he is doing business are in direct relation to the size of the group that has this kind of confidence in him. I have outlined in chapters XI and XII that the retailer should be prepared, and that he should use Maintain advertising mediums to accomplish a spe- Co ºl. cific purpose. But after all this has been i. done, there remains an additional respon- theº sibility which in my judgment is worthy of a separate chapter. And that is the idea of making good on every advertisement that the dealer puts out. The retailer who gets the most out of advertising is one who regards every advertisement in the same light that he does a note that he gives to his bank or to a house that supplies him with merchandise. He has invited the public to his store and put himself in the same position of a host who is giving a dinner party. If people come to the party and nobody knows about their coming, and there is a hurrying and Scurrying about to put extra plates on the table and apologies for the lack of preparation, the guest naturally feels that he was not really desired after all. It is of the utmost importance that the advertiser back up his advertising with the same sincerity that he expresses in his announcement. Clerks must be trained to appreciate that the word of the store has MAKING GOOD 141 been given, and that any failure to make good on their part is a very serious offence. One of the most successful heads of a big depart- ment store that I know believes that he cannot pos- Inviting the sibly cash in on his advertising unless he Return of maintains the confidence of every one who Mercham- te e 3:..." comes into his store to an extreme degree. *::::: As an instance, he told me one day, when I - called on him, that the man who had just left his office was the manager of his shoe depart- ment, and he showed me with great satisfaction a report that his manager had just left with him. He explained that three months before he had called on this department manager and told him that the percentage of returned shoes was too small. The subordinate mentioned that he had expected commen- dation instead of criticism for this, and insisted that wherever there had been the least reason he had permitted shoes to be returned and the money re- funded or other shoes sent out in place of them. “You certainly don’t want to let a girl come in here and get a pair of fine dancing shoes, wear them all night, and come in the next morning and change them for everyday shoes,” the department manager protested. - “That is exactly what I do want. Those girls have fathers and mothers who undoubtedly do not approve of what the girls do, but they will feel kindlier to- ward us when they find that we are indulgent with their children. Try it three months and see.” 142 ADVERTISING—SELLING THE CONSUMER. The report showed an increased volume in sales in the shoe department that the head of the store figured was due to no other reason than greater liberality in the matter of returns. On another occasion, I called with a salesman rep- resenting a large paint house on a prominent store. “Taking The keen eye of this salesman picked out a dºn, Small can of paint that was lying on the Dealer Did floor and asked the manager if he handled ** this particular brand. The manager laughed and said: “No, but a woman came in here this morning and said she had bought this can from us and didn’t want to use it, and so, of course, we took it back without argument.” This was certainly an extreme case, where a de- partment manager allowed the customer to say that she had bought an article that he had never had in the store and gave her the money which she claimed to have paid for it. It illustrates, however, the idea that the state of mind of the customertoward the store is of the utmost importance and cannot be trifled with without detriment to the group spirit, which is really, after all, the essential character of the store. Service to the customer should be the beginning, The Power the expression, and the “follow-up” of every of Service advertisement. Attractive window, counter, and floordisplays, which remind and inform passers-by, are true service factors. They economize the time of the consumer and dealer. Courteous, prompt, and intelligent attention of MAKING GOOD 143 salesmen who know their stock, and having constantly in mind the satisfaction of the customer, is the only good-will asset which will bring trade from a long dis- tance and hold it in spite of price competition. Retailers who sell service have no mail-order com- petition, and they do not advertise the mail-order business even by discussion. When we can be sure of price maintenance on ma- tionally advertised goods, we shall have reliable mer- , chandise at lower prices than ever before, dº, because of economy in wholesale production, ; unimpeded movement to the consumer, with minimum cost of salesmanship on the part of distributor and dealer. The retailer who adver- tises bargains is not giving his customer a square deal if he sells an advertised product of merit at a price less than the legitimate cost to distribute the same. The retailer is not giving the consumer, who is his customer, the service or the protection to which he or she is entitled when he cuts prices on advertised goods with the sole idea of making a profit out of selling other goods on which the margin of profit is abnormally high. I recognize that the statement that the retailer should maintain in all cases the prices that the manu- facturer puts on the goods to be sold to the consumer will be open to question. I want, however, to make myself perfectly clear. There are, especially in the drug field, lines of goods on which the profit is marked abnormally high for the retailer. On the theory that 144 ADVERTISING—SELLING THE CONSUMER, all business should benefit the consumer, we cannot exploit him by asking him to pay more than the service is actually worth. Many of the cut-rate drug stores are performing a legitimate function, but they are giving the people a wrong impression regarding cut prices. The fact of the matter is that the retail margin scheduled by the manufacturer was too high in the first place, and most manufacturers do not ex- pect these margins to be maintained. There can be no question, however, that on nation- ally advertised goods of genuine merit where the price for distribution has been scientifically fixed, the retailer will do best to coöperate along these lines. He cannot be true to his customers if he creates theim- pression that he is selling all goods on the same nar- row margin that he does advertised goods of real merit when he cuts the retail price on them. On the other hand, he cannot command the coöperation and sup- port from the manufacturer in developing a larger volume of business when he interferes with his scien- tifically developed plans to benefit the consumer. This brings up a question that might as well be discussed here as anywhere, and that is whether the price that is charged for many goods is pº worthy of the service the buyer receives. Between For instance, there are many conscientious Intrimsic, tº º gº Real, and people who believe that any business in °ºliquors, tobacco, and luxuries generally is an economic waste and a burden to the public. There are others who believe that the sale MAKING GOOD 145 of patent medicines is detrimental to the interest of the people as a whole. There are others who do not believe that investments should be advertised at all in themselves, but that advertising in connec- tion with investments should refer wholly to the integrity and the ability of the banking house or in- vestment institution that sells the securities. We must recognize that intrinsic value, real value, and commercial value are entirely different things. I would define intrinsic value as that quality in articles which scientific expert buyers would deter- mine by tests. Alcohol used in the arts might be intrinsically more valuable coming from one distillery than another. Yet in the minds of many people, alcohol has practically no real value. Real value is something that without question contributes to the benefit of the human race as a whole. There is no question that pure water pos- sesses real value. There might be some discussion as to the intrinsic and commercial value of pure water. These differences of opinion would depend wholly on the relation of other things connected with it. Commercial value is that quality in an article that creates satisfaction. Satisfaction is the test of every purchase. When the consumer is satisfied with his purchase we may safely say that the article that he bought possesses commercial value, and necessarily that is the basis on which we must discuss the ques- tion of value in its relation to advertising. 146 ADVERTISING—SELLING THE CONSUMER. The point has been made that the department store and its very attractive advertising has raised the standard of living to such a point that S., many people want luxuries and justify the hº possession of them on the theory that they are actual necessities. It has been pointed out that the most valuable work for the community as a whole has been done by people who endured privation rather than by those surrounded with luxuries which take time to enjoy as well as require heavy expense to maintain. I have never been able to see how advertising could in any way be respon- sible for creating a condition that would be injurious to the people in any degree. Perhaps I should qualify that by saying that truthful advertising could not in- jure the people in any possible way. Fortunately, the movement for truthful advertis- ing has been brought about by advertising men them- selves who realized that advertising’s greatest value would be demonstrated and developed by having it always dependable. The insiders in advertising have asked that the law take cognizance of the benefit of truthful adver- tising and discipline those who do not follow the lines of their best interests. From intimate observation of a number of captains of industry I have made up my mind that they get little more in exchange for their arduous efforts than shelter, clothing, and a very modest amount of food. These men work under self-imposed privations be- MAKING GOOD 147 cause they can accomplish the big work they are doing better by following such methods. Booker T. Washington is authority for the state- ment that until the negro is aroused to the desire to The possess things that are generally conceded P; jºr to be luxuries, he cannot be stimulated to sºft, scientific and fruitful methods of industry. I ** am sure that the cultivation of domesticity— the beautifying of the home, making it a more com- fortable place to live in, the possession of works of art, and the consequent care in preserving and caring for them—has its reflex upon the community as a whole. Personally I am not afraid of the extension of the service idea on the part of our big department stores, where it is true that the cost of concerts, lectures, rest rooms, and long-range deliveries must be covered in the price that people pay for merchandise. There are many compensations resulting from this method, but the best protection of its abuse lies in the fact that large national advertisers are competing with each other to give to the consumer or final buyer the greatest possible service for the amount of money he spends. This force is at work apparently at the present time in competition with the big department stores, , though there are signs that some of the Service Conjon larger and better managed department C ſº stores are seeing that there is a basis for oëperation e tº * coöperation with the large national adver- tiser. If the department store refuses to distribute 148 ADVERTISING—SELLING THE CONSUMER. the large national advertisers’ products because there isn’t sufficient margin to pay for all of this service, these goods will be distributed by smaller stores located closer to the consumer. This is competition along service lines that cannot help but benefit every- body that is engaged in it. . Advertising can—and I predict will during the next ten years—accomplish many reforms. It is . . going to show that the buying from peddlers Advertising . * ń ś is an unnecessary tax upon the people as a i.ſº. whole; that the time of these canvassers could be better spent in more productive labor for the community. Advertising is going to prove that food products handled in a sanitary way will not only eliminate the waste due to sickness, the result of unsanitary conditions, but that the possibility of doing things in a broad, large way will increase the market, and wherever markets are increased the proceeds of a day’s labor always buys more. Advertising is the most dependable force which we have to-day to overcome the ups and downs of labor conditions. It is very seldom that the large national institution that markets its goods through advertising channels lays off men. As a rule, the well-managed business is continually adding to its force of operatives and is doing business along steady, stable, permanent lines. - The large national advertiser necessarily has to be MAKING GOOD 149 a student of general conditions, and he prices his goods to the consumer on the basis that will take care of the fluctuations of raw material. There is Stable e - & Coºn, no argument that stable conditions are better rº, for industrious people than any other kind. - We need only go back a few centuries and realize in what a low state agriculture was when the castles along the Rhine and the shores of the Mediter- ranean were inhabited by warriors who protected the tillers of the soil from pirates, but at a price which gave avery slight return indeed to the farmerhimself. This should be contrasted with the continued prosperity of the six million American farmers of to-day. This is an unanswerable argument in favor of stable conditions. There is no force at work in America doing more to establish and maintain stable conditions than adver- tising. REFERENCES ON CHAPTER XIII Particularly recommended is “How to Run a Store at a Profit” (the System Publishing Company, Chicago), from which the following suggestions for the retailer have been culled: 1. Fixed price articles carried as an accommodation ought to at least take care of themselves. 2. Newspaper advertising appropriation should be from 3 to 5 per cent. 3. Carry the right amount of stock and no more. 4. Watch your overhead expense. Overhead is frequently figured incorrectly or charged incorrectly. 150 ADVERTISING—SELLING THE CONSUMER. 5. Know at all times what percentage of your profit is actually net. 6. Have your goods so arranged and displayed that the minimum amount of time is necessary for laying them before the customer. 7. Keep a record of the percentage of the selling price lost by mark-downs. 8. Look out for negative expenses. They are: poor displays, dingy stores, insufficient light, heat, or ventilation, ice on sidewalks, discourteous or in- attentive clerks, etc. 9. In buyingforget that you ownthestoreandregard yourself as the purchasing agent for your community. I also call attention to the “Retail Merchant’s Ten Commandments,” which were published in the Monthly Bulletin of the National Association of Credit Men, 41 Park Row, New York City: 1. Confine purchases to as few houses as possible. 2. Do not overbuy. 3. Take all discounts and pay all bills when due. 4. Have some books, especially an accurate ex- pense account, a daily sales record, a book showing purchases, with cost and when due. 5. Carry enough insurance. 6. Make accurate reports to the commercial agen- cies and answer all letters. 7. Keep a clean, well-arranged store. 8. Do as much cash business as possible. 9. Do not make unjust claims. 10. Live within your means. CHAPTER XIV MAIL-ORDER ADVERTISING the consumer in the distribution of worthy merchandise through the natural channels of trade. Some people think that the mail-order business is an illogical and unnatural business, because it elimi- nates the jobber, the traveling salesman, and the retailer. It is not. It is the direct result of intel- ligent and adequate advertising. No one can fully grasp the power of national advertising and mer- chandising through the natural channels of trade Toº Mail until he clearly comprehends the possibilities order * and the limitations of the mail-order busi- 71.6 SS O A DVERTISING is most competent when it serves United IlêSS. ... .º. Two great mail-order establishments in $2,094,000- 000 per Chicago are credited with a combined annual * business of $113,000,000 for 1913.” The total mail-order business of the United States has been estimated to be $2,094,000,000, or about $22.76 per individual. During 1912 the Ameri- *Quoted from December Boston Traveler-Herald. iThese figures were given me by Mr. C. C. Parlin, who has been mak- ing an extensive research, recently, for the Curtis Publishing Company. 151 152 ADVERTISING—SELLING THE CONSUMER can family spent $785,000,000 for men's clothing, $600,000,000 for women’s clothing, and $1,125,000,000 for children’s clothing. The total, $2,510,000,000, is a little more than $27 per capita for the 91,972,266 people of the United States according to the census of 1910. There are 20,689,000 families in the United States. Their income is about $27,000,000,000. With twenty- planſ, of seven billions coming in and only two bil- Room for lions going out in mail-order business, there º is a chance for our 790,886 retailers and Pegler the 42,293 wholesalers who look after their Business © needs to do an excellent business. There are 2,164 towns of 2,500 people or more in the United States, having a total population of 41,140,847. More than 42,000,000 people live on our 6,361,502 farms. This leaves about 8,000,000 in villages of less than 2,500. Our 42,517 rural mail Mail-order routes serve 16,199,000 people. These ſig- jures suffice to prove that there is a natural *::::::*and strictly legitimate place for mail-order usiness, and it is bound to increase in vol- ume each year. A large wholesale jobbing house has recently been estimating the cost of doing business with three classes of merchants, i. e., those located in towns of (1) less than 2,500 population, (2) between 2,500 and 25,000, and (3) 25,000 and up. They found out that it does not pay to send a traveling salesman with a full line of samples to a town whose population is MAIL–ORDER ADVERTISING 153 less than 2,500; and that unless the merchant him- self goes to the market often, he cannot meet mail- order competition, for his merchandise will not satisfy the wants which the newspapers and maga- zines have aroused by the story of what is newest and best in the large cities. For many years I have been asking my dealer friends this question, “Does a live, wide-awake local merchant who comes to market at least #:... twice a year fear mail-order competition?” *:::::: I have still to find an instance in which a Fºr ºf good merchant was not able to meet and ãº. overcome it. Mail-order business depends on the inadequacy or incompetency of local merchants or serves a class of people so widely scat- tered and having wants and desires so occasional that it would not pay the local merchant to consider them. This, it seems to me, is the rightful field of mail- order business, and retailers and mail-order houses Tº are recognizing it. It includes courses of Field That instruction by correspondence, awarding Mail-order © j. premiums for the sale of soaps, perfumes, hairman teas, and coffees to one's neighbors, buying Any One diamonds and household furniture on the * installment plan, and all kinds of farm utensils, building materials, bicycles, buggies, pianos, piano players, and the like. Dealers in poultry and poultry supplies, and subscription agents have been especially successful with mail-order methods. The 154 ADVERTISING—SELLING THE CONSUMER. purchasers are so widely scattered and the lines so seasonable that it does not pay the retailer to stock them. Quite a number of nationally advertised lines of merchandise were started in a mail-order way. When a group of influential consumers had been wº, developed, the agency for the line was given 4;a to a local retailer, who coöperated with the Started in a national advertising. This plan has been Mºjº most economical and successful in introduc- ing such articles as card-index cabinets, sectional bookcases, guaranteed hosiery, tailors-to- the-trade supplies, washing machines, safety razors, typewriters, and cameras. Each mail-order house builds its own consumer group. The sum total of these small groups con- stitutes one great group which buys by mail. There are a number of publications of national circulation whose subscription lists are the result of sending circulars through the mails. There are some which are called “mail-order papers.” - Those who subscribe by mail are not likely to buy by mail. In Augusta, Me., a city of 13,000, two choosing publishing houses send out, each day of the the Medium year, an average of more than a carload of wº mail-order matter. To look through the * advertising columns of these publications, to answer the advertisements, and to study the follow- up material would be a liberal education in mail- order methods. MAIL–ORDER, ADVERTISING I55 No mail-order business that I know of selling direct from its advertisements has been successful. Almost without exception mail-order advertising aims to locate possible buyers. Whether or not a mail-order business will pay depends upon the con- tents of the catalogues, printed literature, and sales letters sent out. Many of the money-making mail- order businesses of the past twenty years have been based on plausible but insincere appeals. But the government took a hand and put most of these fakes out of business. g Mail-order houses which make good on their promises merit the confidence their customers have sal, in them. Their catalogues are informative, º; models of logical and emotional appeal, and #j,” could profitably be studied by every mer- § chant and clerk who handles similar lines. Mail-order Houses which put out large catalogues reckon * each page as worth several thousand of dollars in Sales power; and each department is charged with the cost of the space it occupies in the catalogues. Therefore a high premium is placed upon ability to write accurate, informative, sales-compelling descriptions of the items illustrated therein. Catalogues are not sent out indiscriminately. The utmost care is taken to prepare the mind of the recipient for the catalogue and to invest it with value in his or her eyes. Customers who have not ordered for some time are cut off the mailing-list. Each letter or inquiry is completely and cheerfully 156 ADVERTISING—SELLING THE CONSUMER. answered; each complaint is given courteous and careful attention. The confidence of the buyer is stimulated and courted in every possible Creating * C., way, even to sending goods out on approval. The Cºn- This is not really the risk it appears, be- stant Aim & Øf the cause the postal laws of the United States Mºr are very strictly enforced. Our Government deals promptly with the man who buys merchandise by mail and does not pay for it. Express companies allow buyers to inspect goods sent out by a mail-order house on approval, to be returned to them if unsatisfactory. It is interesting to note (as proof that the mail- order business does not encroach upon the territory supplied by the ordinary channels of trade) that large retail stores in big cities have found it impossible to build successful mail-order departments with the talent which is useful and valuable in serving the consumer over the counter. There is something fascinating about being able to write a piece of copy that will produce directmail-order arºº, replies within a certain cost. The prepa- Copy Must ration of mail-order literature, the answer- º: ing of letters, and the handling of the goods #geºgé, themselves must be delegated to persons who isplays, & and Pºr: realize that they must more than offset the *:::::: prestige-producing and confidence-building § º: effect of a well-located store, attractive coun- ter and window displays, and capable sales- men. The copy writer must understand the value MAIL–ORDER ADVERTISING 157 of these factors, and replace them in the printed words in the catalogues and in the letters which he writes. The building of an advertisement which shall at- tract new customers for a mail-order house is as severe a test as a copy writer can be put to. Unless he gets enough direct responses from the right class of people to make the merchandising effort as a whole profitable, his work is wasted. He must know how to tell an interesting and plausible story; he must also have the faculty of putting into that story an appeal to the buying impulse which will bring a re- sponse large enough to prove constantly that his work is being well done. He must keep in mind all the follow-up material which is to be used upon these in- quiries, so that he will not attract the merely curious; for confidence, once won, must not be trifled with. The trained writer of mail-order advertisements knows that a single word may effect seriously the Every Worgnumber of inquiries received. The head- Must Be line, “Increase Your Salary,” brought twice Carefully ge tº º © tº Wºn as many inquiries, in the same publica- ###. tion, as “Increase Your Income,” the rest Advertise- of the advertisement being exactly the ” same. A considerable portion of the want columns of daily newspapers and also of the advertising space of mail-order papers is devoted to “Agents Wanted” advertisements. The consumer unquestionably pays more for the article that is peddled from house to 158 ADVERTISING—SELLING THE CONSUMER house than for equivalent values to be had of any reputable retailer. It is safe to assume, however, that as long as human nature is as it is, the satisfaction of having one's trade sought after and the pleasure of listening to a forceful sales talk will make it profitable to peddle sewing machines, subscription books, enlarged por- traits, and many household articles. Almost all such agents are secured by mail. Manufacturers whose product is to be sold by can- vassers put out ingenious advertising and follow-up The Chang matter. The word “Rider,” in front of the mºstereotyped but none the less dependable dº...words “Agents Wanted,” brought the Mead º: Cycle Company 630 answers from a single Mediocre insertion of an inch advertisement in the * Youth's Companion. Something about the headline, “Rider Agents Wanted,” gave the old story a new significance, and many people wrote in who decided, when the agency plan was explained to them, to buy the bicycle but not to canvass for sales. Six pieces of copy, with different headlines, but all telling the same story, published on different pages good of the same publication, brought answers Mºgº costing from 8 cents to $1.54 per inquiry. Should Be A good piece of mail-order copy can carry ** an expenditure of from $50,000 to $200,000 before it wears out. A business which sells a course of instruction pays as high as $1.00 per inquiry, and makes good money on each of seven follow- MAIL–ORDER ADVERTISING 159 up letters which are sent out within the next eighteen months. I have indicated that the best foundation for a mail-order business is the list of names resulting from g dragnet advertisements in mediums of gen- ºil. º eral circulation. º: Businesses have also been built up by cir- cularizing lists of names. Several houses make a specialty of listing dealers according to sec- tions, ratings, and the kind of merchandise handled, and guarantee the names to be live and that the addresses are correct. There is also a business in selling names that are taken from answers to mail- order advertisements. At clipping bureaus one can buy lists of the names of persons who are accustomed to travel, those who are reported ill of certain dis- eases, those who contemplate building, and other in- formation which is gathered from the newspapers. Seldom are mail-order advertisements used for any other purpose than to get new names of possible customers. Some houses have used large space in order to get a certain prestige. But in mail-order work the custom is to use no more space than is necessary to locate a possible buyer. Prestige- Mail-order building and confidence-developing work Advertising must be done by the catalogue and follow- ſº., up literature. on the For many years a certain large seed house * that sends out more than 500,000 catalogues during December and January has used large space 160 ADVERTISING—SELLING THE CONSUMER. in big circulations in March, apparently to get new inquiries for the catalogues. But in reality it is to centre attention upon the catalogues already placed in these 500,000 homes, and to stimulate immediate purchases therefrom. Much of the “Agents Wanted” misleading mail- order advertising has been barred out by the better class of national publications. It will be refused by large daily newspapers as soon as their publishers realize that the confidence of the reader is an asset which should not be trifled with by advertisers who do not make good in every way. Many men who have been successful in planning and writing mail-order copy have found a larger and more profitable market for their ability in connection with the established channels of trade. For many lines of business, then, mail-order methods of acquiring and selling the customer are most economical, and for the introduction of a prod- uct often afford a quicker, more satisfactory, and more profitable national distribution than could be secured in any other way. - REFERENCES ON CHAPTER XIV A live and readable monthly, The Mail Order Journal (Chicago), contains all the news about mail- order advertising and much valuable information about general advertising. In 1900 the Sawyer Publishing Company, Water- ville, Me., issued an interesting book, “Secrets of the MAIL–ORDER ADVERTISING 161 Mail Order Trade.” Though much of its data is now obsolete, it is well worth reading as an historical document. A complete series of the catalogues of any big mail-order house shows up very vividly the develop- ment of mail-order methods and ideas. To answer the advertisements and read the follow- up literature sent out by a successful mail-order house is one way of making sure that one’s information is up to date. CHAPTER XV NATIONAL ADVERTISING AND EXCLUSIVE DEALERS NE of the fallacies which an advertising man O must combat constantly is the statement that if a little advertising is good, more of it should be a great deal better. Advertising is like food—it should be taken, not as an end in itself, but as a means to an end. Three meals a day three hundred and sixty-five days in the year is more economical and more valuable than alternate fasting and feasting. Too little starves and weakens; too much is a burden and does not allow the organization to function properly. In the preceding chapter I indicated that adver- tising will start a business. It will also maintain a business. The weakness or strength of mail-order advertising is at once evident in the business itself, for advertising is its very foundation. We see quite a different use of advertising when we consider the manufacturer selling to the exclusive dealer. Here advertising is the factor which amalgamates the work of two distinct and strongly entrenched forms of busi- ness. On the one hand is the retail merchant who values his personal reputation and standing in the 162 EXCLUSIVE DEALERS 163 community in which he lives; on the other the manufacturer who is proud of the quality of the merchandise he makes and appreciates keenly his responsibility to the consumer. The manufacturer does not care to have the identity of his goods lost in the average jobber's stock; the retailer does not want to put his An Ar- * e * * * & ſº rangement creative ability back of merchandise which #: can be supplied to his trade territory by any ‘...; of his competitors. ... The manufacturer approaches the merchant *;" and explains that he wants the same high quality of service in placing his goods in the consumer's hands that he himself puts into their design and making. He knows that the retailer can take care of certain elements of a complete service to the consumer better and more economically than he can. He must convince the retailer that he can maintain a high quality and make it possible for him (the retailer) to serve his community with the best The Manu- at the least cost to the consumer. facturers Coöperation of such sort cannot be effected Must Com- tº - i. ſſ unless the manufacturer brings to the mer- º chant all the selling helps which are produced Help: he in a national way most economically, and º, unless the retailer puts forth the best effort Push,the of which he and his organization are capable “ and takes advantage of the national selling helps that are given him. The manufacturer can afford space in national 164 ADVERTISING—SELLING THE CONSUMER. mediums which, as they circulate in the retailer’s territory, are the most valuable form of local advertis- ing. The manufacturer's national advertising doubles the value of the dealer’s local publicity when the dealer mentions in his local newspapers the nation- ally advertised lines he carries exclusively. It is evident that a manufacturer can employ ex- pert illustrators and the best copy writers, and supply the dealer with a complete retail advertising service, plates or matrices ready for use in local newspapers, at a cost which would be prohibitive to the dealer. Booklets, window displays, and sales ideas are fur- nished him at the minimum expense. The local dealer can draw upon the manufacturer for the best adver- tising and merchandising talent. Unfortunately the exclusive dealer plan has been abused. Therefore many retailers hesitate to back an exclusive line with their own prestige ſºft, and hard work. They are right in this stand, Fail to Give for some manufacturers have used national Proper tº gº gº Selling advertising as a bluff, pure and simple, to ###. load dealers with their goods, and then fail to give them the right kind of advertising help. This condition is particularly to be regretted, because it takes so little money to cover the United States in national mediums and so much can be done if the manufacturer acts in good faith and advertises to arouse the interest of the consumer. There are a number of national appropriations aggregating less than $100,000 a year which include EXCLUSIVE DEALERS 165 the use of national mediums and collateral advertis- ing helps for the dealer. This is only one dollar per thousand popu- *...lation, but it makes a wonderful showing in Advertising 5 by Pealers carefully selected publications of general to Connect . {º} {} Up in circulation. Dealers whose trade territory Áº:9 comprises 25,000 people find it profitable to spend from $25 to $50 annually onlocal news- papers, to connect up with this national advertising as it is the most influential kind of local advertising in their trade territory. If the national advertiser furnishes definite sale suggestions, the dealer will often spend more. As most dealers are committed to a certain amount of local advertising in any case, and since the exclusive sale of a high-class product is a trade-builder and is as profitable as anything they handle, it can be said truth- fully that local advertising which coöperates with national advertising more than doubles its own value. It is possible (it is being done every day) for national manufacturers to word advertisements in Drawing mediums of general circulation so that they '#; will bring direct mail replies. These letters Wºj are the dealer’s best weapon of defence *:::::::: against mail-order competition. They also to Local locate people who may be trading with his * competitors, and give him an excuse for paying them particular attention, so that he can get them into his store and demonstrate the superiority of his service as a whole. 166 ADVERTISING—SELLING THE CONSUMER. Luckily there are scattered throughout the United States dealers who are as good judges of national advertising campaigns as they are of merchandise. And the manufacturer who makes superior goods and supplements this work with a national adver- tising campaign which reflects the sincerity and honesty that goes into his merchandise will get the coöperation of intelligent dealers the minute his sales- men show them his nationaland local advertising plans. Selling goods to one dealer in a community appeals particularly to the manufacturer of high-grade mer- Selling to chandise. There are 559,000 families in the 6. Dai, United States having incomes of $6,000 a ###, year or more. Their trade is worth while. Particularly º e & to Manu- The progressive dealer makes a bid for it #. by having the exclusive sale of high-grade, *... nationally advertised goods which give him chandise wº * prestige and hold the trade of the wealthier families whose community pride makes them buy goods at home if the local dealer can give them the best quality. The exclusive dealer plan has been tried out by manufacturers of automobiles, pianos, fine silverware, paints, furniture, kitchen cabinets, stoves, candies, and shoes. Even in a small town one can pick out, by noting window displays and the contents of the shelves, the dealer who caters to the high-class maga- zine reading group of the community. The better magazines now refuse to carry the advertising of a manufacturer who seeks the coöpera- EXCLUSIVE DEALERS 167 tion of local dealers, unless his national campaign is adequate and accurate, safe and conservative. This m.a. censorship is winning the confidence of better Magazines class dealers throughout the country, and tº: gives manufacturers who have not yet taken Pealer by up national advertising assurance of success Censoring is when they do. 4;w The only basis for successful exclusive Mºjº dealer distribution is coöperation between a high-class manufacturer and a high-class retailer, each doing to the best of his ability that which he is best fitted to perform. Advertising, which is the cementing factor of this relationship, often gets results much greater than the financial outlay would seem to warrant. It appears to develop power in the same way a lever does. It brings out the latent force of both manufacturer and retailer as nothing else can. Certainly the retailer who has a choice between a fine line of goods from a manufacturer who does The no general advertising and one equally good 4. backed by a broad and skilfully executed anufac- © º tº * turer Gets plan of general advertising will not hesitate. º: But the man who makes a superior product *P* and supplements his service to the consumer by national advertising and sales-building coöpera- tion with dealers cannot afford to identify himself with a second-rate dealer, or to give the sale of his line to one who will not coöperate with him earnestly, vigorously, and honestly. 168 ADVERTISING—SELLING THE CONSUMER It is noteworthy that people who read general mag- azines and do not find the goods advertised at any e local dealer’s are inclined to consider it a re- ** flection upon the dealer rather than upon 48Vertised the manufacturer. Goods a º © Raftection Producers who advertise nationally should #: remain unrepresented in a community rather than allow an incompetent or unsympathetic local representative to weaken their prestige and lower the standard of service which they have established. A coöperative arrangement is impossible if either manufacturer or retailer is doing business on a price basis. Unless service to the consumer, which is nothing less than permanent satisfaction, is the goal of both manufacturer and dealer, this form of mer- chandising must fail. It is not altogether necessary that the manufac- turer use national mediums. For certain territories . . he may use publications which cover them Advertising . ... ." in a broad general way. For several years a 1:... certain manufacturer selling almost exclu- sively to dealers located within the State of Iowa has used three agricultural papers which cover Iowa. Daily papers published at wholesale markets are as competent as national magazines to reach in- fluential consumers and get the coöperation of local dealers within the territory which they cover. There are manufacturers who do no general adver- tising, but furnish the dealer with electrotypes, book- lets, mailing cards, form letters, posters, hangers, win- EXCLUSIVE DEALERS I69 dow displays, motion-picture slides, premiums, and novelties. A tailor-to-the-trade establishment which Advertising had built up a large business in this way Service spent about $100,000 for devices of this kind *; and put on a campaign in five national .."; magazines, including a double-spread in the of Different Saturday Evening Post, without increasing * their total annual advertising expenditure. Mailing cards and form letters were largely replaced by national magazine publicity because it sells both consumer and dealer. The net result was more con- sumer effect for the same money than they had ever had, and therefore more dealer coöperation. REFERENCES ON CEIAPTER XV The campaigns of national advertisers who dis- tribute through exclusive dealers are the best material for the student. Manufacturers who use this method of distribution and dealers who coöperate with them will undoubtedly furnish information in detail to all who are entitled to it. Each campaign is individual and distinct, and has solved its various problems in its own way. To copy the campaign of another would defeat your purpose. * The creators of new ideas and new ways of dressing up the old story make very good money. CHAPTER XVI TRADEMARKS E WANT to consider, first, what the trade- W V mark is worth to the consumer. I can think of no real reason why the con- Sumer should prefer goods which do not bear a trade- mark. He sometimes has a notion that they cost less than goods of equal merit which are sold under a trademark. But that wrong notion has been bred by a certain wasteful kind of advertising effort which aimed to develop a bargain-seeking class of buyers. Merchandise without a trademark lacks backing. People who buy cheap things, or because they are so-called bargains, are surely wasting their substance. The purchaser of a bargain assumes all responsibility as to the quality of the merchandise. So many of us are willing to do this because we do not realize how little our judgment of value is worth. Most of us are qualified to judge of the value of only the few lines of merchandise with which we have What I, had much experience. The highest salaried. Our men in large mercantile establishments are Amateur e judgment the buyers, but not until they have had ” years of selling experience are they en- trusted with the responsibility of selecting from the I70 TRADEMARKS 171 mass of mixed qualities that which is worthy. Much of the talk about the high cost of living is fathered by the flimsy, useless bargain which pleases for the moment but does not contribute at all to the comfort and satisfaction of the home. But the present-day consumer is beginning to demand utility in mer- chandise. Some retailers who will not handle goods bearing the manufacturer's trademark are sincere in this . . stand. They feel the responsibility of giving *ś" to the merchandise they sell the authority Mºjº of their own endorsement. This seems to and Dealer me one of the most encouraging features *::::::::º of modern business. It means that when the best retailers and the best manufac- turers are both animated by a high sense of re- sponsibility to the consumer, a degree of intimate coöperation will be possible which the merchandising world has not yet known. And the consumer will benefit thereby. It has not yet occurred to most of us that a trade- mark adds to the value of merchandise in our eyes. Persons who have declared that such was not the case have in the next breath admitted that the piano which they own would not be so valuable, even if they knew it to be the very same instrument, were the gold leaf which reproduces the trademark removed therefrom. The trademark fixes responsibility. The manu- facturer knows he must make good on the standard 172 ADVERTISING—SELLING THE CONSUMER. which he has established for his product, and the consumer actually enjoys more and derives a greater satisfaction from an article the fine points of which he has been educated to appreciate, an article from which he has been taught to extract the larges amount of usefulness. - Trademarked goods, intelligently advertised, yield the manufacturer a larger return for his labor, and cº, cost the consumer less money. - Profit to The maker of a competitive line of merchan- *::::" dise must base his selling price on the cost of Cost to manufacture and distribution. This price Consumer . wº is unstable. Its fluctuations depend upon the aggressiveness or lack of intelligence of his com- petitors. Under such circumstances, he cannot in- stitute or maintain the economies which are possible when he can count on a stable price, no matter what his competitors may or may not do. Given a profit of 25 per cent. on the selling price, grocers are glad to push goods sold under a well- advertised trademark. On unadvertised lines they demand from 33% to 100 per cent. The difference represents the cost of advertising to the manufac- turer and leaves him an additional profit besides. Yet the article costs the consumer no more. Why? Because of the elimination of waste in gathering the raw materials, in the processes of manufacture, and in the distribution of the finished product. The advantages to the manufacturer of putting a trademark on his goods are so obvious that I can TRADEMARKS 173 think of no reason for his failing to do so except that he wishes to escape responsibility for them. By put- ting them out under a trade name he recognizes the principle that his own individuality is the basis upon which he must build the largest possible influence with his fellowmen. Advertising a trademark and marketing goods un- der it give them stability. Stability means economy. It is not a physical or material quality, but The gº © © © Trailmark a state of mind which is the result of Satis- sº#, faction. e I have said that the trademark on mer- chandise invests it with added value in the purchas- er’s mind; because we associate trademarks with the creation and maintenance of quality standards. But the worth of the trademark to the manufac- turer lies in the fact that it serves as an anchor for all creative sales work which he has put out in behalf of that product. A trademark is the tangible thing that enables the manufacturer to tie to each piece of merchandise that he makes or handles the prestige and confidence which his ability and integrity have won for him in the buyer's mind. Mr. Edward S. Rogers, a prominent trademark lawyer of Chicago, states that the right to a trademark Do Not does not depend upon invention, discovery, #.º; or registration; but upon priority of adop- Under a tion and use upon goods, and upon contin- * uous occupation of the market with goods bearing this mark. 174 ADVERTISING—SELLING THE CONSUMER This statement is interesting in that it implies an obligation on the part of the owner of a trademark to be aggressive in salesmanship, to dominate the market. He dare not assume that his trademark Once established he can rest on his oars. If he pushes his product constantly, he may be able, later on, to reduce the price to the consumer. The resultant in- crease in volume would at least maintain the same net returns, if it did not actually increase his profits. The Ford Motor Company is a notable instance. The manufacturer who does not advertise cannot take business from the one who does. He may get Backing some business, temporarily, by price-cutting T º the •] to distributors who will, for a larger margin, 7°(ld.67770.7°/C •e de e with attempt to deliver to him business that has * been created by the producer who advertises. But manufacturers and dealers who do this can never succeed, save in the sense that piracy and highway robbery succeed. When business reaches a state where one man can acquire the property of another with- out adequate compensation, and keep it, commerce will have sunk to a low level. Fortunately proof is abundant that the merchant or manufacturer who possesses a franchise in the form of the good-will of the general public is stronger than any of the powers of pillage or thievery. Dealers and consumers have been educated to be- lieve that a lower price is a confession of inferiority, and that the cost of the trademark (apparently paid by the consumer) is so little that its elimination by TRADEMARKS 175 the non-advertising manufacturer gives him no prac- tical advantage in the market. The consumer is not benefited by the extra sales cost or the inferior quality of unadvertised lines. If, however, a man takes up a line of business which has been established by a manufacturer using a trade- mark, and competes with him intelligently, sº the by advertising and straightforward sales º; work, the competition is a distinct benefit the Benefit to the original manufacturer, the dealer, and #: the consumer. marked The manufacturer who lets his competi- Product de ge tº tors make his prices loses his sense of respon- sibility to his customers, and puts a premium on mediocrity, Slovenliness, and carelessness. Legally the trademark must indicate with cer- tainty the commercial origin of the article to which it is affixed. Thedevice or symbol has novalue apart from the business itself. The courts have ruled that a trademark cannot be sep- arated, for a price, from the business of which it is the visible sign. It is not necessary to register a trademark, but it is always advisable. In many foreign countries registration of the trade name gives the right of ownership to the one making the first registry. In the United States it is merely presumptive evidence. Title to the business and the right to use the trademark depend entirely upon pri- ority of use. The Legal Aspect 176 ADVERTISING—SELLING THE CONSUMER. The law of unfair competition has been the most valuable protection that users of trade names have had. It says that no one has the right to represent his goods to be the goods of another. The best trademark is an arbitrary or coined word which has no descriptive quality in connection with the goods to be sold thereunder. It should be of such character that it can mean one thing and nothing else, both legally and practically. It is quite easy to in- vent a word which is easily pronounced but does not appear in the dictionary with a meaning which be- longs altogether to the goods on which it is placed. It is wiser not to advertise anything like “Michigan” celery, or “Minnesota.” flour, as these are generic, descriptive terms and could be adopted by any one who wants to enter the same field. Before deciding upon a trademark it is best to get expert legal assistance. There are many names in which no exclusive right can be secured because they are descriptive, or are otherwise legally objectionable, or cannot be protected because they have been pre- empted. Several large advertising campaigns have been held up, after they have been launched, because it was discovered that some obscure manufacturer doing a small local business had prior right to the use of the name which had been selected for a trademark. One of the most valuable elements of the service of a national advertising organization is its ability to devise effective trademarks. Years of experience TRADEMARKS 177 with trademarks have taught them where the shoals are which threaten the manufacturer who contem- plates adopting a trade name and marketing his wares under it. REFERENCES ON CHAPTER XVI For additional reading on trademarks, I refer the student to the following treatises: “Sebastian on Trade Marks,” “Paul on Trade Marks,” “Hopkins on Trade Marks,” and “Nins’ Unfair Business Competition.” “Good Will, Trade Marks, and Unfair Trading,” by Edward S. Rogers (A. W. Shaw Company, 1914, Chicago), is a most interesting and exhaustive pres- entation of the whole subject. . “Trademarks and Their Advertising,” 1913, by Charles G. Phillips, president of the Dry Goods Econ- omist, 231 West Thirty-ninth Street, New York City, is a two-thousand word monograph crystallizing the experience and convictions of one of our foremost trade-paper publishers. Mr. Phillips will send a copy to any reader of this book who requests it. CHAPTER XVII PRESTIGE-BUILDING ADVERTISING XPERT salesmen agree that their work must be authoritative, i. e., it must lead the buyer to accept their judgment as to what he had better buy, instead of following his own bent. A The capable salesman knows more about the Sglesman's goods he sells than any buyer can possibly Part ºn Establishing know. Of course he must also be able to * produce in the buyer that mental attitude which will afford him the greatest possible utility and satisfaction in his purchase. I have said before that the salesman who wishes to establish his position as an authority on his par- ticular line must not let his aim be too apparent, lest the buyer resent it. His prestige must be an out- growth of the buyer's satisfaction with the goods which he is accustomed to purchase on his recom- mendations. The most satisfactory customers are those who think they buy, not those who know they have been sold. Prestige is that quality which causes others to accept one’s statements without question. It is the crystallization of earnest, faithful work on the part of 178 PRESTIGE–BUILDING ADVERTISING 179 the producer of the goods in realizing the best quality for a given purpose and then impressing upon the Prestige mind of the purchaser all the possibilities of lº 77. usefulness which the merchandise will possess jºj for him when it passes into his hands. %... Advertising builds prestige for the manu- facturer and good-will for all his products. Prestige is not inherent in an article, but is what people say about it, and to whom they say it. The prestige of the political leader is gained by confidently affirming and by continually emphasizing to the group which looks to him as its leader Constant tº & a tº R. that he possesses certain qualities. He may Fº have them in common with many other per- sons, but the group does not realize that, because he is advertised, and the others are not. Politicians know very well that what is said about them and the manner of saying it measurably affect the amount of influence they have with their camp followers. Both praise and condemnation may add to prestige; but no man can be laughed at and hold a loyal following. We are respected as much for the enemies we make as for our friends. No one who needs the support of prestige the public dare neglect the manner in which Pººl, º the story of his achievements, his move- the Manner ments, his opinions, and his ideas on certain #ſº subjects is to be told to those whose appro- Four Story bation he would win. In many instances public service corporations 180 ADVERTISING—SELLING THE CONSUMER that are giving real service are unpopular because their officials have overlooked the fact that prestige can be gained by telling a story scientifically, i. e., an interesting and informative story which will, at the same time, create that apparently intangible but none the less real factor which is called “favorable public opinion.” So often we have misunderstood the motives of public men who were discharging their duties faith- tº fully. We have regarded their refusal to º;ſ talk about their work as proof that they were dishonest. Such a situation has usually been due to their misconception of what is true publicity. Many who were severely criticised while they lived have a high place in history, because the publicity given them by the historian has accomplished after death what a well-trained advertising man could have done when it would have been worth while. Those who knew intimately and came into per- sonal contact with Mr. Taft while he was President A pointed of the United States were sure of his sin- * cerity and his keen appreciation of his re- sponsibilities. - Mr. Taft is not our President now because he did not understand that it is not so much what one does as it is what is said about what one does that adds to or takes from prestige. Some day some writer of history will find, perhaps in Mr. Taft’s personal correspondence, or in the private papers of men who were close to him, proof PRESTIGE-BUILDING ADVERTISING 181 that he possessed qualities that would have gained abundant prestige for him during his term of office had we all been told about them in a simple, straight- forward, understandable way. Such a prestige might have been produced, I believe, that Mr. Roosevelt would not have risked opposing him. By neglecting to control the manner in which the story of his work was told, Mr. Taft deprived himself of the prestige to which his work judged alone gave him clear title. Much of the present-day prestige of the dis- tinguished men of the past they owe to the men who recounted the tale of their deeds. Many *. of the master artists of all time have lived *; }* and died poverty-stricken, because no con- Mºsier temporaneous historian interpreted their ###, work so that their fellowmen could under- stand and appreciate it. Nor would most of us value these masterpieces to-day did not art dealers and collectors, by one means or another, constantly keep up our interest in them and direct our attention to points of excellence which must otherwise have es- caped us altogether. The man who is to profit by whatever prestige may The legitimately attach to his achievements needs Prestige. Some one to tell his story for him. Unless §, indeed he chance to be one of those few for- ºw tunate men who are able both to do and to get the rest of us to appreciate what they do. It might be remarked in passing that the man or 182 ADVERTISING—SELLING THE CONSUMER. woman who knows how to teach the many to value his or her talent often gets a larger share of honor and glory than the public thinks is due. It is just at this point that most of us fail to reason accurately. Doctor Cook had ample publicity; but it won no prestige for him, because he gave us something which pººl, fell far short of what his publicity had led wblicity © Without us to expect of him. Each year new names * and faces appear above the horizon which separates the “unheard of' from those who have “arrived’—and disappear; because they could not “make good” on their publicity, or sustain the prestige which it would have created for them. There can be no permanent prestige unless the story fits the facts. Many will contend that there are more far-seeing statesmen than Theodore Roosevelt, that there are Masters of actresses whose work is truer than Sarah Prestige. Bernhardt’s has been, that Mary Garden ” cannot sing; but the fact is that large groups of people believe in each of them, and evidence that belief by continuing to give them their support. That is proof absolute that they “make good” on their publicity. It is only when the publicity has overstated or has been more liberally interpreted than it should have been that a sense of disappointment has resulted in connection with any one of those geniuses who possess so bountifully the knack of telling the story of what they do in just the way which insures them maximum public appreciation. - PRESTIGE–BUILDING ADVERTISING 183 The reflex of using a trademark is to create a sense of responsibility which forces the manufacturer to maintain a high quality standard. The he * ę tº º Penai, same thing is true of publicity. The manu- º: facturer who advertises that his goods will represent a certain well-defined standard has practically discounted his note of hand with the pub- lic. He has to make good. Sometimes a manufacturer takes up general ad- vertising because he thinks he will make more money Advertising that way, and for that reason only. As soon Makes the as he realizes that the advertising has com- Goods Live . C. !-- 1 - 3--> e #... mitted him to maintaininga certain standard *...; with the public, he bestirs himself to im- prove his inside organization. Better mer- chandise is the result. The consumer gets the benefit. Other manufacturers have decided, after investi- gating the power of general publicity, to improve the quality of their merchandise before undertaking a general campaign. I know a man who considered the pros and cons a long while before he made up his mind to advertise. He knew that if he started it, he would have to keep up the quality, no matter what the raw materials cost. And he was afraid he might not be able to increase the price to cover such a rise. That man is a national advertiser now. He found out that the confidence of the public (which advertising gets for him) is the best means of adjusting prices to the market conditions of raw materials. 184 ADVERTISING—SELLING THE CONSUMER. Some years ago another manufacturer had to face a decided rise in the price of his raw material. His salesmen gave him to understand they could Where a tº fºr not sell goods at the price necessary to cover P# this advance if the quality was not to be changed. He was tempted to use an inferior raw material, or to cancel his advertising for the year. Instead, he went to the consumer and the dealer and explained that in order to keep up his quality he was obliged to increase the price. By inference he created the impression that competitors who did not do likewise must be using a poorer quality of raw material. This publicity strengthened the bonds of confidence between his brand and dealers and con- Sumers; he increased his advertising appropriation, and the net result was the best year he ever had. In planning a campaign, the advertiser should re- . . member that it can build for him, if he co- Advertising e ſº * dº gº & #. i. operates with it, a prestige which will give Pºw him the balance of power when buyers hesitate, because everything else is equal. Certainly an advertiser who shows by his man- ner of conducting his business that he values the quality of its prestige, more readily gets the co- operation of publishers who believe that admis- sion to their columns bestows upon the advertiser the prestige which the publication has with its readers. An advertiser who wins first the confidence and PRESTIGE-BUILDING ADVERTISING 185 support of the leaders of the group to which he wishes to sell is wise. He is realizing on their prestige, which, it will readily be admitted, is a force quite separate Building from the inherent value of the merchandise Prestige on he offers or the salesmanship he uses in pre- Prestige & e Senting it. --- Advertising mediums confer prestige upon the ad- vertiser who uses them in exact proportion to the reader's confidence in the advertisement pages as a whole. The advertising of one firm has more prestige than that of another for exactly the same reason. Prestige rests upon confidence, and confidence is publicity, the foundation of which is satisfaction. The creation of prestige should be the aim of every advertiser. It means conservation of power and elimination of waste. There is a certain kind of salesmanship which finds a market among those who positively enjoy possess- * ing things which their less fortunate neigh- Prestige Is ſº Substantial bors have not the means to buy. Dealers in —º|al antiques, small exclusive shops that are Sup- Snobbish- posed to be patronized only by the socially " elect, freak restaurants and summer and winter resorts often get business by an appeal to Snob- bishness. This might be mistaken for prestige-building. It is not. Fashions, fads, and fancies come and go con- stantly. The man who elects to make a living by catering to them leads a precarious existence. * 186 ADVERTISING—SELLING THE CONSUMER. Of course there are many people who need not con- sider the cost of gratifying a desire. They are willing rº, to pay for the pleasure of dealing with per- Price of sons of refinement and culture. They are Confidence ...:11: e willing to pay for knowing they are not going to be thrown in contact with objectionable persons. They are willing to pay for their confidence in the merchandise they buy, although they may not be conscious that they are paying so much for mer- chandise and so much for confidence. The practice of institutions which have been es- tablished by the use of prestige-building salesman- ship and advertising is to reduce their prices to a point where no customer need pay more than he would elsewhere for the same service. Then the pres- tige of the business, which undoubtedly is an element of the purchaser’s satisfaction, is service plus. No business is safe which charges more, simply be- cause its customers will pay more. Prestige is busi- ness life insurance. #. The patrons of certain dealers in musical instruments, jewelry, and art objects, and of certain tailoring and dressmaking establishments in- sist they get full value for every dollar they spend, Quite apart from the question of the prestige of the house from which they are buying. Competitors have their groups of customers who are equally sure that they get full value in the merchandise of stores which sell lower-priced lines. When does a customer pay for prestige and when PRESTIGE–BUILDING ADVERTISING 187 does he get it as an additional satisfaction? It is the old story, “How can you tell the difference between a mushroom and a toadstool?” A business is decidedly in danger when customers who have unlimited means leave it for competitors whose prices are lower. A waiting-list would seem to be the only positive insurance which a business that depends altogether upon prestige may have. 4." The dividing line between the house which ‘.4 Hair charges for prestige and the house which Perhaps . ſº { } Divides gives full value in service cannot be deter- * #. mined by consulting the customers of either or both houses, for there will be radical dif- ferences of opinion. When a lawyer has more possible clientsthan he can take care of, when a physician’s reception-room is crowded with people waiting their turn, when motorcars have to be ordered several months in advance, it maybe assumed that the high price is justified by the service. But that business is doomed whose customers, having ample means to pay the highest prices, go else- where believing they are getting the same value for less money. And the management usually wakes up too late to reëstablish the business on a soundservicebasis. REFERENCES ON CHAPTER XVII Lord Rosebery’s “Napoleon, the Last Phase,” 1900 (Harper & Brothers, New York), detailing Napoleon’s life after he reached St. Helena. 188 ADVERTISING—SELLING THE CONSUMER “The Greatness and Decline of Rome,” 1907–1909 (W. Heinemann, London), by Guglielmo Ferrero. William Hickling Prescott’s “The Conquest of Mex- ico,” 1909 (E. P. Dutton & Company, New York). These books are as fascinating as modern fiction: they tell of men who believed in and attempted to create prestige for themselves. They trace clearly the effect of ideas dominating the group consciousness in the history of nations. They show how real leaders of men have always striven to sway the minds and especially the emotions of the people whose confidence gave them their power. They show clearly the diffi- culty of the historian in separating fiction and fact, because leaders of people have always been more con- cerned as to how the story of what they were doing was told the people than in the story itself. CHAPTER XVIII COöPERATION BETWEEN SALESMEN AND ADVERTIS- ING—SALESMAN, THE CLOSER—ADVERTISING, THE MISSIONARY of salesmanship when the salesman perceives its power to implant the buying impulse in the minds of prospective customers. Then he can devote to closing sales the time and energy he had been put- ting into stimulating them. A worth-while sales- man's time is valuable, and should not be frittered away on work that could be done by advertising. A salesman should be a closer, not a missionary. Advertising serves the salesman by putting the dealer in the most favorable mental attitude before Creating he calls. The dealer soon discovers that the Buying advertising serves him, too, by continually Impulse tº e & e creating in his customers the impulse to buy. It follows that advertising cannot be completely competent unless it has the salesman’s confident co- operation. The most successful salesman uses advertising in selling goods, just as the factory superintendent uses modern machinery in manufacturing goods. It may seem strange, therefore, that it should ever Aº becomes a significant element 189 190 ADVERTISING—SELLING THE CONSUMER. be difficult to get a salesman to coöperate with the advertising of the institution which he represents. Team Salesmen really sell ideas. The sale takes ** place in the buyer's mind when he lets the salesman’s idea supplant his own. - Salesmen are human beings and must themselves be sold on new ideas to replace the old ones. So for the past ten years my work has been largely selling to salesmen who were already doing a good business the idea of coöperation with advertising. First, it is necessary to convince the salesman that by coöperating with the advertising he can so largely increase his sales that his net personal in- ſº come will be larger, although computed on a sº. smaller percentage of direct return to him on ` the amount of his sales. Advertising is right only when it serves the con- Sumer. Personal salesmanship can be permanent Service only when it survives the same test. No cº- manufacturing institution or retail store —the can advertise and pay its salesmen the same sº rate per dollar of actual sales without in- , Both creasing the burden to the consumer. If the Advertising e e e o jsij salesman is putting in full time and con- *P centrating on his work, it is comparatively easy to convince him that more competent tools mean larger aggregate sales. He cannot make ad- vertising count for him until he understands what it really is, and what are the purposes of the campaign of which his work is a part. SALESMEN AND ADVERTISING 191 The salesman who scorns the assistance of adver- tising, if he is to be consistent, should refuse to use The the mails, the telegraph, and the telephone. Salesman Because the cost of these three agencies, with a g e g o Medieval which multiply so many times the possible * number of buyers within his territory, must be charged to the selling appropriation. There are 92,919 commercial travelersin the United States, and 611,139 retail salesmen. Most of these Reducing 704,058 men and women are distributing the Selling merchandise to the consumer more economi- * cally than he could be served by any other means. There are also 317,811 agents and peddlers. It may safely be said that no agent or peddler de- livers goods to the consumer at less than double the price he has paid for them. No advertised line that I know of, sold through a local dealer, bears anything like such a selling cost. - Utilizing The commercial traveler and the retail tiºn salesman must decide whether they will be **śl peddlers and do practically all the work of of Selling * iº & selling, or whether they will be salesmen in the true sense of the word, coöperating with all those forces which mean volume of business and are most Advertising economical and serviceable to the consumer. and selling I have often said that the first manufac- *: }, turer of a competitiveline who advertises can Salesman- market his product by means of advertising ** and the best type of salesmanship, pay his salesmen better salariesthan his competitors can afford 192 ADVERTISING—SELLING THE CONSUMER. to pay their men, and keep his total appropriation for advertising and salesmanship within the figure which previously had been sufficient for personal salesmanship only. This statement has been proved to be true for many lines, notably ready-made clothing. The clothing manufacturer did not advertise to the con- sumer at all twenty years ago. The best houses pay their salesmen 3 to 4 per cent. on their total sales. The advertising appropriation is generally less than this. It would not pay a salesman who handles a well-advertised line at 3 per cent. to exchange it for an unadvertised line at 10 per cent. With advertising, his volume of sales goes up immediately, and the conditions of work are more pleasant. Salesmen for a certain manufacturer which adver- tises nationally to the consumer but distributes The through the local dealer stop at the best jº. hotels wherever they go, carry a packer Bigger whose salary and expenses must come out * of their sales, and arrange in advance for customers within a radius of eighty miles to call on them on specific days, allotting two hours a day to each customer. They get these customers together in the evening for a conference and general coöpera- tive discussion of trade-building plans in which all are interested. Under the old régime, the salesmen had to pack and unpack their sample trunks, and could not cover nearly so large a territory, Result: their total sales were much less. SALESMEN AND ADVERTISING I93 A commercial traveler who understands thoroughly that his salary and expenses must come out of the goods he sells will take advantage of every force which will help him get the same result at less cost to the dealer and consequently to the consumer. He knows (at least he can know if he investigates) that in- telligent advertising does work that he must otherwise perform—and does it at less cost. A retail salesman ought to beglad topush advertised lines,forby so doing he is rendering the consumer the largest amount of ser- vice, and making himself more nearly indispensable. There are to-day a number of large mercantile establishments which must adopt another method of dealing with their salesmen, or—have no Adºlina chance at all twenty years from now. Un- Insurance less they soon perceive that scientific adver- Against ... : jºjo tising Saves money, young merchants who do are going to crowd them out. There are wholesale grocers who permit their sales- men to quote cut prices on staples, and then measure their value to the house by the amount of Whº. merchandise they have sold on which exor- Şalºmº bitant profits have been made. This prac- Cooperate . . e is tº a º ſº with the tice fosters a merchandising condition which º; is just about as bad as it could be. The retail §i. grocer ought to respect the wholesaler’s sº, salesman; he ought to realize that this man #. #: can be an immense help to him in building Clº l,637 a business. The grocer should be sold on coöperation, and taught how to explain to his trade 194 ADVERTISING—SELLING THE CONSUMER. that his service is worth the difference between the cost and the retail price of his wares. The handling of advertised staples by retailers fosters such a rela- tion; but the salesman or jobber who confuses the retailer and destroys his conception of values is a force that pulls in the opposite direction and is de- moralizing. The commercial traveler who represents an adver- tised line and the retail salesman who talks to the a 1.g., consumer across the counter have a chance Salesman's to study the buyer at close range and to prºhi, adapt their merchandise to his desires and 6.º: needs. Of the two the commercial traveler should have the broader outlook. He should be able to talk not only to the merchant but to his clerks, from their own standpoint, which is that of the man who purchases goods to sell again. He must also convince them from the standpoint of the con- SUIDO €T. In Chapter IV. I have outlined the advantages to the individual of being a member of various groups. There is also this: that the leaders of the various groups to which you belong, by reason of the obliga- tions of their office, relieve you of various duties, and much planning and Organizing. Just here I want to point out that the man who co- operates is constantly educating within himself the highest type of individuality. We all know the man who, as a youngster, went into a large business house and did willingly and cheerfully everything he was SALESMEN AND ADVERTISING 195 asked to do; until it became a matter of habit to give him the first opportunity to handle whatever new re- sponsibilities arose as the business grew. This type of man rises to the head of an institution as inevita- bly as cream comes to the top of milk. His ability to assume and make good on the varied tasks en- trusted to him gives him a broad grasp of the business as a whole and develops individual competency and the sense of power which is the product of responsi- bility. The word responsible really means “ability to respond,” which is about as true a definition of “co- Respons operation” as could be framed. The per- bility–Co- son who cultivates the ability to respond is operatuon constantly exercising those qualities which characterize the best type of manhood. I would qualify this statement only thus far—that such a man must test what he does by this one query: “Does the business I am engaged in and the work I am doing in connection with it give the con- sumer the best service which he or she can possibly obtain?” - Advertising flourishes where coöperation is under- stood and practised. A baseball team will have better catchers, more wonderful pitchers, more re- markable basemen and fielders if each member of the team positively desires each one of his fellow players to perform brilliantly, to excel. The reflex upon the man who practises coöperation makes him a better man; it enlarges his individual 196 ADVERTISING—SELLING THE CONSUMER, powers. It instils in the minds of his associates the idea of reciprocity, thus assuring him of their support yo, A., when he needs it. Coöperation reduces the to ##. cost of production. By elevating the stand- T. º. ard set for all—because that standard con- º' stantly embodies the best thought of each How Much individual member of the organization—co- ** operation improves the quality of the joint product of all the members of that organization. REFERENCES ON CHAPTER XVIII The idea which underlies scientific management is intelligent and confident coöperation. Salesmen will enjoy Frederick Winslow Taylor’s “Principles of Scientific Management,” 1911 (Harper & Brothers, New York City), and Harrington Emerson’s “The Twelve Principles of Efficiency,” 1912 (the Engineer- ing Magazine, New York City). CHAPTER XIX PRICE MAINTENANCE E CAN best approach a consideration of price maintenance by reviewing the fol- lowing points: (1) The one-price system builds business for the retailer. It serves the buyer best, by saving time which he must otherwise spend in bargaining. It conserves the selling energy of the salesmen who must concentrate on demonstrating the specific value to the consumer of the goods offered for sale. (2) Mail-order business is possible only because prices can be fired and vast editions of catalogues printed and extensively circulated. Consider the confusion, loss of time, and congestion which would be inevitable were any time devoted to writing letters to ask for prices or to haggle over charges! (3) The exclusive dealer, or the agent of the manu- facturer, likes the one-price plan because it insures him a profit. In fact, this price argument is the basis of the abuse of the exclusive dealer idea. Many manufacturers put in time selling the dealer which could be spent more profitably upon the consumer. Many retailers load up with exclusive lines; whereas I97 198 ADVERTISING—SELLING THE CONSUMER. a keener appreciation of the value of service in the dis- tribution of staples would have been more valuable to the consumer, and, therefore, more profitable to the dealer. - Producing a staple and advertising and distrib- uting it through every possible channel is the big- The gest thing a manufacturer can do. It calls Field ºf for more kinds of ability than any other Tremendous , . * e Accºmplish kind of commercial effort. It is no task for * the quitter, the faint-hearted, or the “piker.” The results it gets are princely in scope and splendor. Given an article of merit and a fair price (which means a margin of profit for all who assist in getting Getting the maximum distribution for it), an ade- ***P"quate national advertising campaign will so entrench one manufacturer's position that a competi- torwho makes equally worthy merchandisemust spend many times as much for advertising in order even to divide the field with him. Price cutting by retailers must be fought on the theory that the manufacturer who creates and con- trols the market for his own goods can best serve the consumer. Retailers who make leaders of advertised goods by cutting the price will eventually substitute to the detriment of both manufacturer and consumer. Unfortunately, the Supreme Court of the United States has been ruling against the manufacturer who wants to put a fixed reselling price on his merchan- dise. Some lawyers believe that the fact that a man PRICE MAINTENANCE 199 can control the use of his name and can prevent others from selling goods which purport to be his will even- The Su- tually find legal expression in a decision prºjöºrt which will give owners of trademarks the rº. right to determine the price the consumer shall pay for goods bearing that trade name. Present rulings proceed upon the assumption that the man who buys and pays for an article owns it ab- solutely and can give it away or sell it for any price he sees fit to place upon it. There are two ways of handling price-cutting on staple, trademarked products which all manufactur- Two way, ers agree are reasonable: of Main- (1) Moral suasion. I could cite many in- taining e Priogºth stances where a salesman has induced a * dealer to give up price-cutting on his prod- uct. Each dealer promises to quit if the others will. Dealers are in business for the money there is in it. If price-cutting does not bring trade which buys other goods at a profit, the dealer soon throws out the article he has been cutting and substitutes a com- petitive article. The manufacturer who created and developed the market loses; and the consumer loses. (2) By refusing to sell to price-cutters. It is illegal Selecting to agree not to sell, but a manufacturer may *..., refuse to sell to a distributor without giving Salesman Able to any reason. Stop e * Price- The advantages of price maintenance are so *9 universally conceded and the evils of price- cutting so generally condemned that salesmen should 200 ADVERTISING—SELLING THE CONSUMER. be selected with direct regard to their ability to put a stop to the latter in the territory which is assigned them. When dealers are fully conscious of the power of a trade-building advertising campaign to locate new buyers for advertised staples they will not be so prone to cut on them. A salesman who comes to the dealer with sugges- tions, plans, and methods for increasing his business by coöperating with the manufacturer’s advertising plans (which means new business for both manufac- turer and dealer) can easily convince him of the folly of diverting an established demand, for a little time, by price-cutting. For each buyer who knows the value of a piece of merchandise and would be tempted by a cut price there are twenty prospectives who have been almost convinced by the advertising and need only the dealer’s invitation to buy and assurance of quality to close the sale at a profit. Cutting the price to these prospectives may “queer” the sale altogether by suggesting inferior capº, quality. What little is gained by enlarging 7°W.C62 to One the market among those who are already dº convinced of the value of the article is more º than offset by the loss of confidence among * those not yet sold and the certain curtail- ment of distribution by dealers who will put under the counter goods that are sold at cut prices elsewhere, and only supply them upon positive demand. PRICE MAINTENANCE 201 Retail merchants’ associations know what the effects of price-cutting are. Sometimes retail grocers have met department store price-cutting at the instigation of the secretary of their local organiza- tion, who keeps them informed of exactly what is being done. The department store has to make a profit, and will stop cutting when there is nothing to be gained by it. It is commonly believed that the grocery section of a department store is only a bait to get trade into Plus the store. It is noteworthy, in this con- S. nection, that to reach the grocery section cº, one must usually pass through other de- wt Price partments where profitable goods are at- tractively displayed. Many successful retail grocers meet the situation squarely by selling customers on the value of their service, and by convincing them that a reasonable profit on dependable merchandise is just. Some years ago there was considerable talk about the manufacturer advertising to the consumer, there- by creating a consumer demand which would force the retailer to handle his goods. In many instances this policy has apparently worked. Wherever such is the case, there exists an opportunity for a com- peting product of equal merit to supplant the present leader, if the manufacturer will work out a scientific plan of advertising to the consumer, sell to the logical distributors, and give each link of the distributive chain a reasonable profit. 202 ADVERTISING—SELLING THE CONSUMER. To one dealer who can be coerced by advertising which creates a consumer demand there are twenty pº, who can be convinced that in the “almost vs. persuaded” consumer there is a chance for ” manufacturer and dealer to coöperate and build business for each other. The salesman who calls on the dealer can say truth- fully that he is not interested in the sales the dealer is forced to make through advertising. His house is bound ultimately to get the business of the consumer who will seek the store that keeps advertised goods and refuse to trade at the store which does not. This salesman can say that he is not sent out to get the business that is the result of advertising demand, but to get new business by showing the dealer how to make sales which have been started and partially de- veloped by advertising. The dealer who understands the power of adver- tising will not be a price-cutter. He will be a con- servationist, not a pirate; and will push his busi- ness on service lines; for service brings him the good-will and fixed buying habits of satisfied cus- tomerS. No advertising and selling campaign of national Scope can be considered complete or likely perma- nently to entrench the product advertised as the leading staple of its class unless the price of the ar- ticle to the consumer has been fixed justly. Merchandise of universal distribution should be priced low, for two reasons: PRICE MAINTENANCE 203 (1) Because the patronage of the masses cannot be expected unless they get maximum value for their money. (2) While cost does not measure the value of goods to people who have money enough to gratify their desires, a low price does enlarge the market of any product by bringing it within the reach of the largest number of people. It also fortifies the manufacturer against future competition. Persistent advertising supplemented by shrewd, competent salesmanship will hold a market once preempted. Why? Because good advertising is the cheapest Confidence salesmanship; because the skilful advertiser .." can pay the highest salaries for the best fº salesmen, and still keep his total selling cost under that of his competitors. Goods marketed through all channels of distribu- tion use advertising in the largest way, to benefit Advertising the consumer, the advertiser, and all in- sº termediaries in the plan of distribution. Ai. Goods become staples and the cost of moving P; ºr them is diminished to the least figure. They actually pay best every one who touches them. They are sold at a low price, to get the wid- est market; but bear a sufficient margin to pay all those whose services are needed to give them the adequate distribution. This is the ideal condition. The lower the price to the ultimate consumer, the less trouble the manufacturer will have with price- cutting, the wider will be his market, and the more 204 ADVERTISING—SELLING THE CONSUMER likely he will be to establish himself permanently in it. He must remember, though, that the laborer is worthy of his hire, that stable conditions must be fostered, and that price maintenance is the mother and father of stability. It cannot be out of place to close this chapter with the statement that a manufacturer who trademarks an article of merit and plans a comprehensive mer- chandising and selling campaign, the objective point of which is the confidence and convenience of the con- Sumer, creates a staple in every sense of the word. A well-advertised product towers above its com- petitors in the public mind, though it may be no more deserving. It has achieved distinction and acquired the consumer’s preference. Its maker can count on a certain known demand. This insures better qual- ity for the consumer. All this because he and she, the consumers, put their trust in the manufacturer’s trademark. Price maintenance is the manufacturer’s duty to protect the business he has created. REFERENCES ON CHIAPTER XIX “Price Maintenance,” 1912 (the Commerce Pub- lishing Company, Philadelphia), by Thomas A. Fernley, is the most complete exposition of the idea that has reached me. It contains many specific ideas for trade betterment. But the author betrays a peculiar lack of appreciation of the power of adver- tising to do away with many of the evils for which he suggests other remedies. PRICE MAINTENANCE 205 In “Concentration and Control,” 1912 (the Mac- millan Company, New York City), Charles R. Van Hise, president of the University of Wisconsin, dis- cusses at considerable length the debasing effects of price competition as compared with the splendid results which the other two kinds of competition— namely, quality and service competition—get for us. On price maintenance, see also: “Price-maintenance Encourages Individual Enterprise,” Collier’s Weekly, July 19, 1913, by Louis D. Brandeis; “Cut-throat Prices,” Harper’s Weekly, November 15, 1913, by Louis D. Brandeis; “Competition and Coöperation,” The Fra, December, 1913, by Dr. Charles P. Stein- metz. CHAPTER XX ADVERTISING OPPORTUNITIES HE word “opportunity” suggests a human being at once. Imagination is the key of opportunity. To man only is it given the power first to project a mental picture of a possibility, and then to transform it into an actuality. Progress is thought that has found expression in physical labor. Work without thought will always be menial and have to pay a heavy tribute to super- vision. Thought which does not find concrete form in creation makes man a mere dreamer. The line between success and failure is so thin that a man has to keep two thoughts constantly in mind. One is to know what he can do better than other people. The other is to know how to impress people that are in the market for the kind of ability he possesses that he can and will deliver without friction with other people who are selling their services to the same buyers. He must know what he knows and know how to coöperate in rendering service. First, let me emphasize the fact that there is nothing mysterious or strange about the business activities which are covered by the word “advertising.” 206 ADVERTISING OPPORTUNITIES 207 Young men who want to study advertising often come to me for advice. A little questioning makes it Advertising plain that they think advertising is a marion- a Serious ette show sort of thing, operated in some * strange fashion by wires and hands not seen, and speaking a lingo all its own, a magic formula for making money rapidly—something which can be ac- quired in much the same way that we learn the multi- plication table. The big field of advertising is its application to ordinary everyday business. The business of pro- ducing, marketing, and using advertising space does require various kinds of talent and experience. But the big opportunity in advertising lies outside what is commonly known as the advertising business— for the next ten years. The key to success for the gyoung man whose sole capital is brains and energy is the application of the principles of advertising to ordinary everyday business. There are several distinct types of advertising ITQ62Il. 1. The publisher or plant-owner is the man who produces advertising space. It happens that he is rarely the best judge of its value to the advertiser; The for he is primarily an organizer and execu- * tive. The best publisher is the man who knows best how to get and hold subscribers. The men who own street railway advertising and bill- posting privileges, painted bulletins and wall space, and electric signs, are concerned largely with leases 208 ADVERTISING—SELLING THE CONSUMER and with details incident to building and maintaining a plant. 2. The advertising solicitor who represents the publisher and plant-owner must possess marked sales rº, ability. The advertising solicitor of twenty Advertising years ago did not at all resemble the man * who does this work to-day. Business men no longer need to be persuaded to advertise. Adver- tising is not on trial now. Each advertising medium has won its own place in economical merchandising. Contract-getters are constantly being replaced by men who know the characteristics of the groups of people reached by the mediums they represent, and who can advise how best to use the space they sell. The ideal representative advises against the use of his medium when he knows that the advertiser’s story is best suited to another. He seeks for cus- tomers those whose business can best be advanced by using his medium. He is after permanent busi- ness, and that predicates the possession of satisfied, loyal customer groups. 3. The advertising writer’s work is to find out the Salient points of the merchandise he is expected to The sell, and its points of contact with the people Advertising whose confidence in the medium makes them &ſ accessible to him. The mere writing is simple, once the preliminary study has been completed. The illustrator differs from the writer only that he uses pictures instead of words. Both of them know well that in the interpretation of the advertiser's ADVERTISING OPPORTUNITIES 209 message to the group which can most be benefited by it lies the highest expression of the art. 4. The buyer of advertising space must be an analyst and a statistician. A goodly measure of ex- perience and common sense added to this, The * * * * Buyer of and ability to read human nature, Soon put * him in the foreground of the advertising field. 5. Printers, plate-makers, and typesetters advance Printers beyond the limits of trade lines in direct pij, ratio to their ability to comprehend and in- ºterpret the advertiser's message. ypesetters Broadly speaking, one of the best open- ings for the young man who wants to take up advertising is with the publisher. Each one of nº our 22,141 daily, weekly, monthly, and mis- 4dvertising cellaneous publications has a permanent Opportunity * e inth the place for the man who can increase its * revenue and eliminate waste in the distri- bution of the fruits of intelligently directed labor. To do this he has only to insist that the advertising columns of the paper must be as informative and interesting as the news columns. Many publishers have added to their personal in- comes and made their publications more useful to the readers, and therefore more valuable to the ad- vertisers, by writing copy for them. It would pay each one of the 790,886 retail dealers of America to study advertising, the laws which govern it, and its methods; and then apply them. 210 ADVERTISDNG—SELLING THE CONSUMER, The manufacturer who advertises serves the con- Sumer by keeping in touch with him in gathering data for advertising, and by teaching him how to make the best use of what he buys. Every merchant, every salesman behind the counter, every commercial traveler, every sales manager, should know what is right and what is wrong in advertising. Those who neglect so to equip themselves must not complain when they are supplanted by those who have done so. It is noteworthy that universities are now offering courses in journalism and advertising, and that there Advertising * several correspondence courses in adver- Courses in tising that are well worth the time and money * they demand. The only warning I should voice with reference to the study of advertising applies with equal force to all theoretical knowledge. A fact is a theory that has been demonstrated. All learning is valuable in so far as it trains to think and teaches the principles which control the everyday events of life. The spirit, not the letter, is the thing. To imitate is servile. Many an advertising failure is the result of follow- ing precedent blindly, of applying the letter of the law instead of its intent, the slavish imitation of the mannerisms and style of the successful. It is the frank, spontaneous expression, allowing the style to take care of itself, which has the appeal. The quiet, unobtrusive service methods of the present-day salesmanship, as contrasted with the ADWERTISING OPPORTUNITIES 211 boisterousness and occasional sharp practice of its forerunner of a quarter of a century ago, is paralleled by the differences between the advertising man of that period and the writer of copy, the illustrator, and the solicitor of to-day, who rely upon a simple, straightforward story to the consumer. An expres- sion which diverts his attention from the main issue —the service he is to receive—is wasteful. The opportunity in advertising is the opportunity which exists in all merchandising and selling—to eliminate waste, and to install and maintain simple, direct methods which conserve the buyer's time by giving him, with the least effort on his part, a com- plete understanding of the usefulness he is to have in his purchase. REFERENCES ON CHAPTER XX “How to Get a Position and How to Keep It,” 1908 (Funk & Wagnalls Company, New York), by S. Roland Hall, will help the beginner market his ability. “The Message to Garcia,” by Elbert Hubbard, must always remain a classic in revealing the kind of man who grasps and makes the most of the oppor- tunities that are in every one’s path. Mr. Hubbard’s brochure, “Get Out or Get in Line,” is typical of his Sound business philosophy which he expounds every month in the Fra and Philistine in a style which can be profitably studied by every advertising writer. CHAPTER XXI THE ADVERTISING MANAGER HE average young man who considers the advertising business as an opportunity for his own future usually thinks that the posi- tion of advertising manager is the most desirable one. Many men think of the advertising manager as sitting in his office and receiving calls from men who have all kinds of space to sell, also from photographers, printers, engravers, artists, dealers in novelties. True, there are many men who bear the title of advertising manager but whose duties go no further than acting as a buffer for the man higher up. And to a certain limit this is worthy work. Many of those men have Keen discrimination and judgment in knowing which of the many things that come to their attention every day to take up to the sales manager or head of the house. The position of advertising manager is one not strictly defined in its scope nor standardized. Many men having the title have absolute authority; others have the authority only to investigate and make recommendations; still others are no more than clerks to whom detail work is delegated for checking up. 212 | THE ADVERTISING MANAGER 313 The advertising manager in the full sense of the word should be synonymous with sales manager. ... He should be the man who interprets the Advertising º * Manage.” sales policy of the business, both to the per- s: , sonal salesmen and to those who are reached with Sales through the medium of printers’ ink. The Manager experience that I have had in the advertising business through more than twenty-five years leads me to say that the advertising manager's job is just about as big as the man who occupies it. Mr. H. M. Swetland, president of the Class Journal Publishing Company, once said to me that he couldn’t make a bigger trade paper than the editor that he could get to run it. The same is true of the position of adver- tising manger. The job is as big as the man who fills it. Instance after instance could be cited of large busi- ness institutions where the men who now direct and control their policies started as advertising managers. Many other instances could be given where men as advertising managers secured their first broad insight into business and grasped the possibilities of the market in its relationship to the group of people that sustain and make the market possible better than the men for whom they were working. As a result they advanced to the highest executive positions in other concerns where those in charge were big enough to appreciate creative ability and grasp of selling opportunities. It may be truthfully said that a young man, in 214 ADVERTISING—SELLING THE CONSUMER. developing his business career, passes through four distinct epochs. First, in the days when he is earning The Four enough money to pay for his clothes and Epochs board and have something besides, without Bºis, being dependent in any way upon his parents, * comes the consciousness that he can support himself. This is a delightful sensation to any young man and is always to be fondly remembered. It is one of the best foundations upon which an executive builds his career, to be able to say that at a certain age he performed a certain duty for a certain sum and he earned what he got without any pull, preference, or any other consideration than the actual value rendered the house upon whose payroll his name appeared. In the second epoch the young man has advanced to such a position of responsibility that he can be Second entrusted with work without supervision. Epoch- He realizes that he is trusted and must act Working º tº & – º – tº sº * Without upon his own initiative and on his own judg- *ment. In this second epoch a man realizes that honesty, dependability, and the power to accept responsibility bring him cash dividends in addition to the amount of physical and mental labor that he can put into his task. This is the position occupied by many salesmen out on the road. Unfortunately, for themselves and for the houses they represent, they feel that they have reached the limit of develop- ment. This thought in their minds is a handicap both to themselves and to the houses which employ their services. THE ADVERTISING MANAGER 215 The third epoch in a successful man’s career might be termed the executive epoch. He realizes that if pººl, given assistants to whom he could delegate elegating & g e tº º to Šub- duties for handling under his supervision he %; could accomplish more for himself and for Number his house. The man who does reach this Three º stage is on the sure road to advancement, because there is always somebody ahead of him who is doing work that he can well afford to delegate to take up other work that will insure his own advancement. The institution which makes every man feel that there is work to be done whose execution is worth more money than he is now getting, and in order to handle this higher grade of work he should delegate all possible duties to men getting less than he is, is bound to develop a growing, successful, united, pro- gressive institution. The fourth epoch is where a man is able to com- mand the coöperation of men more expert than cºng himself. As the head of a department he ing Co- greatly increases his power by winning the .#º, confidence of other heads who are coördinate 1.ºth with him. As the chief executive of any big poch e business, the man who can get the most help from his lawyer, his banker, and all the experts associated with the other houses from whom his house buys and to whom it sells, is worth more than if he is particularly prolific in original ideas himself. True executive ability is getting things done by others most competent to do them. 216 ADVERTISING—SELLING THE CONSUMER The advertising manager should delegate as much work as possible on the theory that by working with Good experts he will get work done on the most #"º expert and economical basis. His judg- More Im- § portant ment of where and how things should be Hºw done is worth more to the house than his Pºlº skill in personally doing things himself. In this way he is bound to put himself in a position where he can grow with the house. Fortunate, indeed, is the young man who can get the position of advertising manager in a house whose head is dominated by the ambition to be a controlling factor in the market. Such a man is ready and will- ing to take on more responsibilities himself, and will freely delegate the work he is doing to men who will take it off his hands. It is often necessary for a young man in a subor- dinate position to take work away from the executive by main force, but if he is a dominating factor in his market he will like these methods rather than resent them on the part of the advertising manager. Such an advertising manager, fortified with a simple system of accounting by which he can show at all times that he is taking care of the responsibilities entrusted to him, is bound to advance more rapidly in a large business than a man of similar ability oc- cupying any other position that I know of, unless it is the general sales manager himself. A. An advertising manager should keep in touch with general literature of all kinds. He should constantly THE ADVERTISING MANAGER 217 watch the development of new ideas. He should take his work very seriously, and develop the broadest pos- sible culture, and at the same time keep in close touch with all of the men who have practical experience in details of the business with which he is connected. It is the same principle that inspires the head of the largest business to use the best banker, the best physician, the best architect, the best engineer, the best lawyer, the best expert in every line; and it is the man who entrenches himself in modern business in this way that makes his position practically im- pregnable. The advertising manager in every institution should be the peer of everybody else in it. To fully perform The his function he should, as I have said before, g; supervise the sales. He should be pres- an Open ent in every conference where the policy of *:::::: the house is under discussion. Advertising Manager can be utilized in so many different direc- tions that there is no question coming before any in- stitution in which the effect of advertising should not be carefully considered. An advertising manager, to fully grasp his respon- sibility, should be one who has passed through the The Strong three preliminary epochs of experience and Advertising is in the fourth epoch. He should be able # to merit and hold the confidence, and secure Maſure ºn the intelligent coöperation of the head of Development e the business. He should be able to com- mand the confidence and coöperation of the factory 218 ADVERTISING—SELLING THE CONSUMER. superintendent, of all the salesmen on the road, whether they report directly to him or to another man who has coördinate authority in the sales with himself. He should be able to employ and secure the best re- sults from his personal contact with expert printers, advertising writers, publishers, and organized adver- tising institutions that are equipped to give service. It has been well said that a bad workman quarrels with his tools, and nothing more clearly demonstrates the mediocrity of the advertising manager aft, a than the statement that he cannot get good 94% service from people with whom he comes Operation . tº * tº gº tº º in contact. The ability in the advertising manager himself to inspire men with whom he does business to do their best is one of his greatest assets, and the quality in him that will make his efforts count for the most. Advertising in itself is too complex, too broad in scope, too infinite in detail for any one man to master ... it all. The men who accomplish the most Knowing . e - ſº tº ſº Where is in the position of advertising manager are £º. those who know where the best work can *:::::/ be done and how to secure it for the institu- tion with which they are connected. No advertising manager can get all of the assistance that he needs by sitting in his office and waiting for good things to be brought to him. There are often cases of men who are able to per- form valuable service, but have not yet learned how to sell it in a market where it would be most ap- THE ADVERTISING MANAGER 219 preciated. No man ought to be more conscious of this than the advertising manager himself, and he should be most alert to leave his office on a search to find out where the best service that he can use can be secured and developed. If a young man were to accept the position of ad- vertising manager in a concern that had never done agº, º any advertising, I would advise him to pro- Advertising ceed about as follows: ##. As is usually the case, he would probably º,*# be expected to write copy. The best thing for him to do—and he shouldn’t undertake the job at all unless able to write plain, sensible, ordi- nary, everyday, one syllable English—would be to get Saturated with the ideas by which the best sales- men of the house produce permanent business. By permanent business, I mean sales to those customers that give evidence of being satisfied with their deal- ings with the house through repeat orders and con- stantly increasing volume of business on the basis of annual sales. The advertising manager when saturated with the qualities of service in which his house excels will gºing embody his knowledge into the copy and sº letters he writes, intensify the hold that the Information house has on its present group of customers, * and intelligently devise ways and means by which the customer group can be enlarged. Then he should select a printer in whose honesty and integrity he has complete confidence. He should not accept 220 ADVERTISING—SELLING THE CONSUMER. favors of any kind from this printer. If he goes to lunch with him he should make it a rule either to Ge: a Good pay for his own lunch or alternate in pay- Printer ing for lunches. The temptation to accept little favors from people who are selling is very great, but the advertising man- ager, who places himself on a basis where he cannot be influenced in any way, or who insists in the name of his own house in reciprocity on matters of this kind, has gone a long way toward insuring his own standard and the securing of the best service from those with whom he deals. The good printer is a man who knows how to manage his own business successfully, who doesn’t The good estimate on a hit or miss basis, who has an fº organized, systematic scale of prices, and who figures things fairly and honestly. Such a man is more likely to have time to confer with the young advertising manager, and, being a good busi- ness man himself, is more likely to discuss selling prob- lems along sound, fundamental business lines. Many instances that I know of could be cited where young advertising managers owe much of their development to having given their confidence to self- respecting, successful printers who had a regular scale of charges for their work, and who, therefore, did their business on a sound, economic, but profitable basis. - Everything said of the printer is true of engraver, paper house, and all others who come in to sell THE ADVERTISING MANAGER 221 the advertising manager supplies. The advertising manager should never forget for an instant that he is gain, a trustee of interests that have been placed Competent in his hands, and that he owes it to himself *...* to maintain his self-respectbyhandlingevery §eller ºf dollar in a manner which will produce the Supplies sº largest possible return for the house who delegates this responsibility to him. Many young men do not seem to realize that a high standard of responsibility has its reflex in the develop- ment of their own character. It also attracts to them a class of men who can afford to be discriminat- ing in the customers that they select. A man who buys on a service basis is bound to be cultivated by men who sell on that basis, and there Tº can be no question that intimate, confident Necessity coöperation between men who buy and sell cº, on the fundamental principle of giving the #., best possible service to the concern for which uyer an tº e º 'º tº te Siller of advertising is being developed is bound to * place advertising itself on the highest pos- sible plane. Much could be said about the observance of or- derly, systematic habits, in relationship to one’s own personal life as well as his associates in the busi- IleSS. An advertising manager makes a mistake to allow any man in a responsible position inside his own organization to remain in an indifferent and especially in an antagonistic attitude toward him. 222 ADVERTISING—SELLING THE CONSUMER, The function of advertising is to create good-will, and an advertising manager can hardly expect to or- € ganize and systematize the protection of Advertising good-will for his house as a whole unless he * can himself master the art of creating good- Command will inside his own organization. Good-will tº e © in His The general manager of a large institution * told me once that his advertising manager, if he never wrote any copy, nor did anything else except to promote harmony and good fellowship between the many heads of departments, would more than earn the very large salary that he was being paid. Another thing I would advise every young adver- tising manager to shoulder would be every bit of Shoulder Re-responsibility he could find floating around *P*9 the institution in which he is employed. What a young man wants to do as quickly as he can is to create the impression that if there is work to be done he can do it, and then he should sys- tematize his own work so that not over 50 per cent. of his time would be occupied in doing the actual details. A good executive can unquestionably so organize his work that he can be free at least half his time, to give audience to all the people who call upon him, and to go out himself in search of new ideas. I believe an advertising manager should accord an audience to every man who calls on him, at least once. If the salesman at that time does not demon- THE ADVERTISING MANAGER 223 strate that he has something of value for the house which employs the advertising manager, he is not Give One entitled to second interview. Aji. An advertising manager wastes his time *:::::: when he tells callers about his own achieve- ments and what he intends to do, unless he does it deliberately, with the idea of stimulating more valuable suggestions or confidences from the people to whom he is talking. The best way to get the whole story of any man who is calling on an advertising manager is to let Be a Good the caller do all the talking; and few men * have a story that will take them more than fifteen minutes to tell. A man who has posted him- self sufficiently on the business of the house, who takes more time than that to tell his story, ought to be listened to with respectful attention, and encour- aged to go out and get more helpful ideas on which specific suggestions of usefulness could be based. Nothing proclaims the business ability of an adver- tising manager more than his willingness to accept ideas and suggestions, and to freely accord Credit to whoever brings such to him. REFERENCES ON CHAPTER XXI “The Job, the Man, the Boss,” by Blackford and Newcomb (published by Doubleday, Page & Co., New York), is a valuable book for an advertis- ing man to read. It will help him determine the character of the men who call upon him, and it 224 ADVERTISING—SELLING THE CONSUMER, will put him in position to advise and counsel with the executives. “Thoughts on Business,” by Waldo Pondray War- ren (published by Forbes & Company, Chicago), are suggestive and stimulating to guide one's own thinking. It is well to remember that thoughts must be put into action constantly in order to pre- vent the thinker becoming a dreamer. “How to Write a Business Letter,” by Chas. R. Wiers (published by the author, 631 W. Delavan Avenue, Buffalo, New York), is the most thoughtful and practical treatise on this subject that I have seen. Anybody who writes will be benefited by reading Mr. Wiers’ book. CHAPTER XXII THE ADVIERTISING SOLICITOR HE actual work of selling gives me the greatest pleasure of anything that I can do in a busi- ness way. I have said many times that I do not think I am a salesman by nature. It was wholly a bread and butter proposition that started me out to sell space on an Iowa newspaper which my father edited for over fifty years, and on which I secured whatever education I received after one year in a small academy succeeding my gradu- ation at high school. - The first attempt that I made to sell space in our newspaper was both gruesome and ludicrous. I A rº, tried to persuade a man in the tombstone *; business to have a clearing sale, because from reading the Chicago daily papers I assumed it was along those lines only that retail merchants could advertise. Three months later when I called on the tombstone man he told me, with considerable anger, that I had done him a great injury. I asked him if nobody had read his advertisement, and he answered: 225 226 ADVERTISING—SELLING THE CONSUMER. “I think everybody must have read it.” He then went on and said that he had lost ten good jobs which had been promised him by farmers if their harvest was good, because his competitor had told them he was going out of business, and the farmers would not have believed it unless they had read the clearing-sale advertisement. I have said many times that all I know about ad- vertising is what I gained in actual sales experience, from which I deducted fundamental working prin- ciples. I am perfectly willing to concede that adver- tising can harm the advertiser as much as it can help Advertising him. Advertising, in itself, is a good deal G. H. like food. Taken in proper proportion three (IS #.º times a day a man lives in better condi- tion and does better work than if he al- ternately gorges or starves himself. He should not attempt to get along on too little or digest too much. Advertising, to be successful, will always require fine adjustment and careful judgment based on act- ual knowledge of conditions. In Chapter XXI I have indicated that an ad- vertising manager who desires to give his customers the largest possible service for their money can well afford to cultivate the coöperation and confidence of printers, engravers, or dealers in advertising sup- plies who are creative salesmen in a true sense of the word. This fact gives to the advertising solicitor his greatest opportunity. He ought to know accurately THE ADVERTISING SOLICITOR 227 the merits of the medium he represents. He ought to know what the medium he is selling will do under A sº, certain definite conditions. This is a part |Must Give of his regular equipment. * His success depends upon his ability to see that the person or institution which buys from him gets the largest possible service in results. No retail merchant ever came in to buy space in the daily paper for which I first solicited adver- tising. The traveling patent medicine man, the advance agent of the circus, the man who came to the city to rent a storeroom and conduct a fire sale, always called on us and bought space with an apparent intention of appearing liberal and free- handed in their expenditures. Some of the most valuablelessons that I ever learned was in assisting the retail merchant in writing copy for him. When I came to Chicago, in 1891, very few business men were willing to admit that any- body except themselves could write their advertise- ments. Nothing has marked the progress of advertising more than the change of sentiment of heads of large Writing the business houses and even of advertising man- Advºse agers themselves on the question of who tment Once © cº the dealers' should write the advertisements. ** Ability to put into clear-cut, understand- able English the sales-impelling thoughts of a masterful, creative salesman is possessed by few men. The physical appearance of these men is no indication 228 ADVERTISING—SELLING THE CONSUMER of their ability. They are not always impressive or personally magnetic, but they have the quality of The Power putting words and phrases on paper, or of ºft.” putting ideas into the form of pictures which 4;w influence thousands at a time to do what the personal salesman can get only one at a time to do after a talk lasting from twenty minutes to two hours in each individual case. - The advertising solicitor's opportunity lies in un, derstanding the service possibilities of the advertis- zº, ing accounts he is soliciting. He must be Solicitor resourceful in ideas, and he must be able Must Un- e - tº .#. to impress people whose business he seeks Prospeg's with the thought that his medium and his Proposition . © © e ideas in connection with the use of the medium can give the largest possible service to the advertiser. The service idea in advertising salesmanship is very marked to-day. It will be more so in the future. The old idea of salesmanship that it is clever for a man to catch the buyer unawares and to “put some- rº, wº, thing over” on him is being rapidly relegated Order of to the discard. Nothing emphasizes this Soliciting thought more clearly than to remember the men who were prominent in advertising salesmanship twenty years ago, and compare them in personality and methods with the men who are preeminent to- day. Often have I said that I was trained in the school THE ADVERTISING SOLICITOR 229 of salesmanship which taught that the best salesman had the most turndowns because he made the most calls. There is no question that the lost sale is the greatest opportunity in advertising work to-day. overcoming The salesman who sells advertising space *S* or advertising material must himself master the art of overcoming as many of his own lost sales as possible. The fact that men refuse to make sales when they could is one of the most effective means of winning the confidence of the buyer and insuring a hearing as against competitors whenever the buyer is again in the market. This is itself a form of advertising which the ad- vertising solicitor can most profitably cultivate. One of the surest ways to convince another per- Turning e ë wº f;..." son of your sincerity is to refuse to make º: money when the chance presents itself to Road to YOU!. Hº, When the buyer is convinced that you only want his money when you can give him the largest possible service for it, you emancipate your- self as an advertising Solicitor from making many fruitless calls. You put yourself in the position where buyers will look upon your call upon them as an honor, and when they learn you are in the recep- tion-room, or are telephoning for an appointment, they will feel that you have something to tell them that they cannot afford to miss. 230 ADVERTISING—SELLING THE CONSUMER Along these lines an advertising solicitor can build up personal prestige and loyal customers pººl, which overcome, to the largest possible ex- wºldºng e {º Personal tent, the handicap that a human being has a * body that can only be one place at one time, and is able scarcely to stand up under more than ten hours’ strenuous labor each day. - If I were asked to advise a young man who wanted to become an advertising solicitor, I would urge him to get a connection with a well-established, well-man- aged newspaper, magazine, printing, or engraving house. Select as an employer one that has a repu- tation of making good upon every responsibility, and pay no attention to what the salary is the first year. The next step would be to make up a list of pro- spective advertisers, selecting people who are logically a..., situated, because of their position in the Solicit market, to deliver a larger service to the ” group of people that your advertising me- diums serve better than any other. Learn everything about your own medium; and the best way to do this would be to simply go out and make calls. When a man asks for information, jot down his question in a memorandum book. When you go back to the office have this answered by the man who knows most about it, and the next time the same question is asked you can answer it clearly, succinctly, and definitely. You will be surprised to find how in a little time you will be able to have ready at your tongue’s end THE ADVERTISING SOLICITOR 231 clean-cut, definite, convincing answers for practically every question that a buyer will ask. Always present the merits of what you have to sell from the viewpoint of how it will assist the prospec- tive advertiser in what he is trying to accomplish in his own market. Avoid discussions of technical detail. Never discuss competitors. This is the safe path Things to for young solicitors to follow, and is usually 4” followed by old-timers who are in position to discuss competitors intelligently and accurately. Their time is too valuable to do otherwise. • The best-informed salesmen that I know, if they discuss competitors at all, generally get the buyer to state in his judgment what is the most favorable thing regarding the competitor; then, conceding this, they proceed to show how their own house is even better equipped along this same line. The advertising solicitor should take his job se- riously. He should be serious in his approach and Soliciting in his discussion of business matters with the i.” buyer. He should never joke about his own sº business or talk flippantly about it. He can- not command the respect of other people unless he treats his own business respectfully. Con- fidence and respect are so interwoven and synony- mous that it is difficult to separate them. Confidence is the only basis on which the permanent business building sales are made. By this I do not mean that a man shouldn’t joke 232 ADVERTISING—SELLING THE CONSUMER. or laugh and have a good time, but I do mean that his stories should be clean, and his jokes should be about things outside of his own business, and not in any way reflect on the honor or the integrity or the ability of the people associated with him or of the house that he represents. An advertising solicitor should know more about the use of the medium that he represents than the The man he is soliciting. He should make the Solºšor man to whom he is talking believe this, Must Know & – e -Bluffing and the best way to do it is to be so strongly ** equipped with knowledge, facts, and figures of how his medium has been used that he can discuss the subject accurately and intelligently. The advertising solicitor should be very definite in his statements. He should not deal in generalities. He shouldn’t tell a partial story. If he gives a defi- nite transaction in detail, he should tell both the good and the bad, and endeavor to show how any bad features could have been avoided by forethought. One of the best rules for an advertising solicitor to follow is the old one “Plan your work and work plan you,” plan.” The advertising solicitor should gº.j avoid antagonizing the buyer, and for that "...” reason he shouldn't discuss outside subjects with him on which he would have a justifi- able difference of opinion. Under no circumstances should an advertising solici- tor or a salesman allow criticisms to be made of the house he represents. This is the most serious re- THE ADVERTISING SOLICITOR 233 flection that can be made on his own judgment. If a man is a good salesman he does not have to connect himself with a poor house. The best houses in the world are ready, open, and eager to hire more salesmen of the right sort. The salesman who allows a buyer to say that he is all right but that his house is wrong is committing business suicide. If the house is wrong he should quit it—if it is right he should defend it and absolutely discountenance unfavorable criticism. There is no work in which a man has a more pleasant opportunity to exercise the best there is in sailing him than in the sale of advertising space for Spºº a large institution. He is working with or Big g te ſº & e Pºlishers 13-inch guns, but he is doing things in a *** constructive way to help mankind rather than to destroy people. The opportunity for big men as advertising solicitors is much greater to-day than the supply, but the amount of training that is necessary to develop men for those positions is greater or fully as great as is necessary to fill large places in law, medicine, architecture, or engineering. It is the old story that it takes more time to lay the foundation for a twenty-story building than it The Hunt does for a two-story cottage. for Young men want to be willing to work and *** learn while they are developing. The train- ing of the judgment is an essential factor in making one ready to fill the large positions that are open. 234 ADVERTISING—SELLING THE CONSUMER. Fortunately, judgment is something that can be trained—judgment is experience, intensified by clear, analytical thought. Judgment gives men courage to try things over and over again that they figure out in their own minds are fundamentally sound, with the conviction that all obstacles will be ultimately over- COIſle. The two largest publishing interests in the United States are conducted by men who are conspicuous for periodically going out on what they call “A man hunt.” The large positions in their organizations have been recruited from all over the United States. Men in small places (who have fulfilled respon- sibilities in a well-rounded way) are sought for to fill the larger positions. A well-rounded character, the ability to see below the surface, the courage to con- tinue no matter how many rebuffs one receives, the confidence that sound business principles will ulti- mately prevail, a rigid adherence to what one is convinced is sound basically, tempered by courtesy, kindness, and forbearance, is bound to win in the long run. The advertising solicitor has more things to meet that will prevent him from being successful than in any other line of business with which I am familiar. Mastering all these difficulties, he gains the satis- faction of achievement and accomplishment which maintains his own self-respect. This, after all, is the ultimate goal in life that is well worth striving for. THE ADVERTISING SOLICITOR 235 REFERENCES ON CHAPTER XXII Every chapter in this book and all of the references thereto are supplementary reading that I can heartily commend to every man who aspires to be an adver- tising solicitor. The daily papers, the monthly magazines, and es- pecially the trade papers, in any line to which an ad- vertising solicitor is giving special attention, should be carefully read for new ideas or revivals of old ones and the extent to which they are taken up by one Or many groups. The editorials of Arthur Brisbane in the Hearst papers should be carefully read, for three reasons: (1) he understands the group spirit and knows how to hold the continuous attention of a very large por- tion of the reading public; (2) his remarkable ability of keeping in close touch with the development of scientific and philosophic thought, and (3) his mas- terly style of interpreting technical subjects in plain, simple language that any one can understand. It is my firm conviction that an advertising solicitor ought to be continually reading the works of men who have given long thought to specialized subjects and put their ideas on paper; such works are Ruskin’s “Unto This Last”; George Horace Lorimer’s “Old Gorgon Graham: More Letters from a Self-made Merchant to His Son” (Doubleday, Page & Co., Garden City, N. Y., 1904); Otto Weiniger’s “Sex and Character” (G. P. Putnam & Sons, N. Y., 1906); 236 ADVERTISING—SELLING THE CONSUMER, Crewson’s “Tales of the Road” (Grossett & Dunlap, New York), and H. G. Wells’ “War of the Worlds” (Harper Bros. & Company, New York, 1909). All these books stimulate thought and suggest new ways of approaching the solution of fundamental problems. CHAPTER XXIII THE ADVERTISING AGENCY ENJAMIN FRANKLIN’S mother-in-law ob- jected to him before he married her daughter because the business in which he was engaged was overdone—he was publishing a newspaper, and there were already six in America! Now there are 22,141—2,600 dailies, 15,097 weeklies, 2,491 month- lies, and 1,953 of various other kinds. Practically all of them carry advertising. The business of soliciting, preparing, placing, checking, and paying for all the advertising space involves an infinite amount of detail and a wide range of talent. Nearly all retail stores buy space direct from the publisher, who may be represented by one or more advertising solicitors. It all depends upon the size of the field. In large establishments the ad- vertising manager may write the copy. The owner of the store may attempt it. He may use copy writers proffered him by the publisher. Or he may employ a “free lance” copy writer, who will, of course, have a number of other customers. Amail-order house generally buys space through an 237 238 ADVERTISING—SELLING THE CONSUMER. agency. It either has its own copy men, or uses those allotted to it by the agency. Foreign advertising is the local publisher’s term for out-of-the-city advertising. The national or “foreign” advertiser usually places his business through an agency. These agencies furnish a service which varies greatly in scope and character. The successful advertiser must supplement in his own organization the service he needs but does not get from the agency. To understand the present status of the adver- tising agency, read George P. Rowell’s “Forty Years The Early * Advertising Agent,” which tells of the Days of the early days when an agency was merely an * office with a list of publishers' rate cards, files for papers, and a shipping department. The agent sold space at publishers’ rates, forwarded the copy to the publisher, collected from the advertiser, and remitted to the publisher the proceeds less his commission. It was a valuable service then. News- paper circulation and values were hard to get at. It was a service for publisher and advertiser. In time, however, competition arrived. Publishers increased their commissions, and their rates had to go up accordingly. As publishers did not limit the number of representatives they might have, the num- ber of agents increased rapidly, and their competition gave rise to many bad practices. Commissions were split. The agent, sometimes honestly and sometimes not, adjusted his service to THE ADVERTISING AGENCY 239 the compensation, accepting a lump sum for a list of publications, but making as much as possible out of pºp, the publisher by short payments, refusing to of Split allow for alleged incorrect insertions and commisſions short measurements, and by payment in ... type, printers' rollers, and other kinds of merchandise instead of cash. This was “playing the game.” Then came the era of the agent who took business at a certain percentage over net, and “agents’ net rates” were commonly interpreted as the publisher's rate card less his regular agent’s commission. The customer was billed at this rate plus 10 to 15 per cent. previously agreed upon. And the agent felt he was justified in keeping anything else he could get from the publisher. This system irritated the publisher, who still had his troubles with short measurements, incorrect in- sertions not allowed for, and various other expensive and harassing deductions which left him no time to consider how he could best serve the advertiser. It kept him quite busy making sure he would get the money his orders indicated was owing him. Then came the race of agents who, realizing the value of the publisher’s good-will and coöperation, The Lowest specialized on some certain class of adver- #jº" tising, and got inside special rates from the *...* publication most logically suited to carry it. This made it possible for him to underbid competitors when they were called in against him; 240 ADVERTISING—SELLING THE CONSUMER, and to make a very long profit when he had no com- petition. This practice further demoralized the ad- vertising business. There was so much juggling of rates that strong publications employed special rep- resentatives, who should see to it that advertisers were informed of their circulation, prestige, and other good points, and to see that their papers appeared on competitive lists. The special agency idea was abused by a number of men who bought outright all the space in a group of papers, and then increased the rates. Or, because they had a few strong papers on their list, would in- duce theadvertiser or his agent to takeon the whole list by making apparent but not actual price concessions. The fact that the advertising agency has survived all these schemes and questionable practices is a sin- cere tribute to the inherent power of advertising to make good, even when the odds are against it. It is also a tribute to the integrity and constructive ability of the men engaged in the business to-day. In spite of the fact that at times both agent and pub- lisher have been doing business with the advertiser on a basis which almost invited an unfair deal, they have established their position—because they have made good with their customers. 9 *...* Much might be said about the history Ajºie, and development of the advertising agency, *::::..but we can take time only to consider the Four Types y four definitetypes which are now in existence. In this count Iam not includingavariation now practi- THE ADVERTISING AGENCY 241 \ cally extinct—the man who merely clears business at a small advance on the net cost. He cannot make good any more, for most publishers either refuse him any recognition, or else give the service agent a so much lower flat rate that he cannot deliver. There is the agency which sells copy service, but does no placing. It may be one man, or a group. The Agency The charge is usually a fixed amount, weekly Tiji or monthly. They handle none of the details § of buying or contracting space. Their meth- ods are open and straightforward, and the copy is usually satisfactory and well worth what it costs. Their customers know exactly what they get and what they pay for. Type 2 is the agency which solicits and places busi- ness at publishers’ rates, writes copy, and gives a certain amount of merchandising counsel. "###"Most of the men who are doing business on Plºes this basis are honest, capable, and successful. Business & © at But I think this system does not pay them, P * neither does it pay the publishers nor their customers. The customer does not always know how much he is paying for agency service and how much for space. A weak publisher may secretly increase his commission to the agent, and because the advertiser is doing business at publishers’ rates he would not be informed of the change. The agent himself often has a wrong conception of his proper relation to the customer and the publisher. He is apt to think it is the publisher’s commission that 242 ADVERTISING—SELLING THE CONSUMER. gives him his status—when he should know that it is the advertiser’s money that is paying for both space and service. Type 3 is the agency which tells its customer it will charge him 10 to 15 per cent. above net; and then asks the publisher for protection by allowing a com- mission. The agent who charges publishers’ rates is a pub- lisher’s representative, and must look to him for Agents of protection. Such a man must cast his vote Types 2 with the publisher in case of conflict. Most &: publishers recognize that the advertiser is Rºº., entitled to a square deal, and they implant the this thought in the minds of the agents who * do business at publishers' rates. This is the only assurance the advertiser has of being well served by such an agency. On the other hand, the agent who offers to charge a certain percentage above net, as guarantee that he will not allow himself to be influenced by any in- creased commissions offered him by the publisher, and then asks the publisher for larger commissions (not lower rates) for protection, is carrying water on both shoulders and cannot represent anybody—not even himself—for any length of time. This type of agent is in hot water continually. If he is doing business at publishers’ rates, he can keep for himself any rebates, discounts, or free space (publishers do not generally offer these things to advertisers direct). If he is charging 10 to 15 per THE ADVERTISING AGENCY 243 cent. above net, and at the same time asking the publisher for favors for himself, neither he nor any The pººl, one else knows whether he is really entitled ºf the to free space, special discounts, cash ad- Agency §. vances, bonuses on volume of space used ſº within a certain time, short time rates which sent the the customer may have paid to the agent * but the agent has not paid to the publisher, and other profitable perquisites which an appreciative publisher is glad to allow a producer. This kind of business must go as surely as the 5 per cent. “placer” has gone. I believe the publishers’ rate agent is to be with us for many years, perhaps permanently, because he is apt to specialize on a cer- tain classes of mediums, and to be a truly important business-getter for the publisher. If he is an honest and able man, and he usually is, his service is well worth what the advertiser pays for it, for it is the advertiser's money that pays for both space and service. Type 4 of agency is my ideal. A number of suc- cessful organizations have realized its main features The Highest in everyday practice; so that I can safely Type of say the type is well defined. It is an out- sº. growth of the organization idea. It proves §:à* that coöperation and specialization develop a higher standard of service than can be attained by an individual, and that the advertiser will get more for his money if he grasps its methods and adjusts his own organization to it. 244 ADVERTISING—SELLING THE CONSUMER. Such an agency sells service, and nothing else. It should have no ownership interest in space or supplies it buys for its customers, nor any stock or financial interest in the business of its cus- tomerS. Its compensation should be a retainer fee, for ad- vice and counsel and the relinquishment of any con- The Best flicting interests, plus a percentage on the System of amount of detail work handled or a specified Agency g Compensa- amount per day for the actual work of its * various members. By far the most satis- factory system is a minimum monthly fee which is credited againsta minimum 15 percent. Service charge to be added to the net amount of all purchases and deliveries of space and supplies. This organization has four definite functions. It can, if properly equipped and intelligently managed, The Four do each of these better and more economi- Definite cally than the advertiser can. They are: º 1. Counsel of Mediums. The organization 4;" which undertakes to advise for or against of the any advertising medium should have had **constant successful experience in the use of all kinds of advertising mediums. A fully equipped agency organization should make money for small advertisers who use only one medium; as well as for larger businesses which use several in combination. Its experience should cover newspapers, magazines, trade papers, mail-order mediums, all class publica- tions, street cars, electric signs, painted bulletins and THE ADVERTISING AGENCY 245 walls, and all sorts of printed or lithographed matter, follow-up material, and novelties. 2. The buying power of an organization is kept un- impaired by refusing to accept anything from pub- lishers or space producers for itself. I believe that the ideal organization must refuse to sell its service, under any circumstances, to publishers or space pro- ducers, or to any one else from whom it may buy for its customers. The number of advertising mediums which have a fixed rate is small, though all the best ones do. A complicated rate card is a challenge to the trained space-buyer. Many mediums offer a net flat rate to large agency organizations, for the reason that they are wholesalers. Their customers are rebated the difference, of course. Where there is an opportunity for trading or dickering, it is certainly advisable to employ a man who knows how to do it. It is quite generally conceded that the space-buyer for a large agency organization holds a very responsible position. The agency buys outright, and pays for space at once, in cash, which is an important factor in buying. The buying department of such an organization has nothing to consider save the actual value of the service offered; it is, therefore, in better position to get a low price and collateral coöperation than the agency which asks the publisher for a commission and protection. 3. Copy service. No matter how carefully mediums have been selected, or how economically space has 246 ADVERTISING—SELLING THE CONSUMER. been bought, it is without value to the advertiser until it is filled with copy which will get the desired result. The copy staff of a successful organization must represent the picked men of a nation, working together harmoniously in confident coöperation with the advertiser’s organization. - Sometimes, after the analysis has been finished and the selling points agreed upon in conference with the advertiser, one man writes all the copy; sometimes several men work on a national campaign where there are several groups of consumers and trade literature and selling helps to be taken care of. 4. Sales coöperation, the most recent development of agency service, has been misunderstood in many places. It does not mean sales direction, nor the displacement of salesmen. Sales coöperation means getting more service from the publisher and space- producer, because you can convince him that the best way to entrench his own business is by giving the advertiser more for his money. It also means making the advertiser’s salesmen more valuable to himself and to his principal. The very best salesmen make many calls which are non-productive. Anything which increases their per- centage and volume of sales as compared with calls makes them more valuable without increasing their labor. Sales coöperation is the result of applying the principles of scientific management to selling methods. It is sharing with salesmen the responsi- bility of planning their work. Advertising does the THE ADVERTISING AGENCY 247 missionary work and the salesman becomes an expert “closer” and business-builder. Nowadays a banking corporation regards itself as the trustee of its depositor’s money, and does not loan money to any business in which its alºw officials are interested. The same general #. principles should govern the conduct of an of the advertising organization. º,* Advertisers should have at all times ac- cess to the books of the organization which places their advertising. Once each year they should receive from an audit company a report which shows Advertise, that their advertising appropriation has been Shºuld Have spent as had been agreed upon. Access to & ge e & e Agent. The highest type of advertising service is * offered by the organization which attracts as customers only those businesses which are acknowl- edged leaders in their respective lines, and then at The Agency all times regards them as a group of non- of the conflicting interests coöperating for their #ºn common good. Advise Such an organization will advise against Against tº e º g e Ajng advertising if the advertiser is not ready for if #ºr it. It will tell him, how, when, and where, Ready advertising should be done. It should be ** consulted long before the advertiser starts to plan about prices, distribution, the package, sell- ing methods, and the instruction of salesmen about ways and means for cashing in on the advertising. CHAPTER XXIV ACCOUNTING more important than a system of accounting which records all transactions accurately, so that the totals unmistakably show the trend of the business as a whole. Advertising is creative and constructive, and largely a matter of spontaneous expression—the best reason in the world for knowing how to determine exactly the strength and competency of it as a pro- ductive force, and the positive value of each separate factor thereof. Accounting is not a matter of books, cards, blanks, and specific forms. It is keeping track of the details Accounting of advertising all the time, so that they may *...* be considered in the aggregate as well as a Ready separately frequently, and intelligent deduc- *†, tions made therefrom. There is a good deal Peductions of red tape about modern accounting. Some of it is valueless, but much can be accomplished if there is a proper system of recording everything that is done. The cumulative figures will be full of mean- IIlg. N" ELEMENT of successful advertising is 248 ACCOUNTING 249 I have often said that my most valuable business experience was that gained during the installation of an accounting system in our business Some years ago, and during the process of emancipating our- selves from the system by putting into practice the principles which supported it. We all got a thor- ough grounding in the essentials of accounting. Frequently I have been appalled at the inadequate knowledge upon which a prospective advertiser was basing his conclusions. So often overhead Proper Dis- © * = e jo.; expense is not properly distributed in figur- º: ing costs. In the one case a particularly profitable transaction may be made to bear far more than its share of general expense; in another case a positively unprofitable item, which, however, appears to be making money, is continued— because it has not been charged with its rightful portion of overhead. It is my conviction that each department of a retail establishment should be charged directly with every line of publicity for which it has been respon- sible and from which it is to profit, and that “general publicity” or “cumulative results” should be “vel- vet,” or a plus commodity. Advertising that has for its purpose general pub- licity is usually purposeless publicity. Even if it does accomplish what it is expected to do, it is only half as valuable as it should be; for the same results would have been had, at no cost whatever, had this publicity been charged and paid for by the proper department. 250 ADVERTISING—SELLING THE CONSUMER. A simple, accurate system of accounting, to check up results, is necessary to “make advertising pay.” If a salesman is able to reduce his percentage of Checking unproductive calls by talking the advertis- Ujiji, ing of his house in addition to the worth ; of the goods, or if he is able to increase the GS3/ © º amount of his average sale, his reports should show it. All salesmen’s reports should be tabulated, so that the sales manager can plan intelli- gently for the future. Such a method does not work the salesman any harder, mentally or physically; but he accomplishes more, is worth more, and is entitled to know of his increased value and to receive a fair share of the profits of his coöperative work. Every accounting system should be able to give the executive head of the business all he e.* , wants to know, whenever he wants to know sº it, and in such condensed form that a com- K.A., parison or an analysis will be simple. #.. On the opposite page a sheet from a daily Know at a time book devised by Herman A. Groth, *...* Secretary and Treasurer of the Mahin Ad- vertising Company, is shown. You will see at once how easily and exactly each man’s time can be recorded there. Any one can use this blank, no matter what his business. And I guarantee that if the habit of using it is formed, and the summary studied each month, many useless or unessential tasks will be omitted and the more profitable ones developed into expertness. This Record to be filled out each day by Ea:ecutives, Department Managers, Copy Writers, Service Managers, and Representatives of the Mahin Advertising Company. DAILY SERVICE TIME RECORD. NAME DATE 191— DETAILS OF SERVICE BIOURS CUSTOMER. 8 A.M. 9 A.M. 10 A.M. 11 A.M. I2 M. I P.M. 2 P.M. 3 P.M. 4 P.M. 5 P.M. 6 P.M. 7 P.M. 8 P.M. 9 P.M. 10 P.M. II P.M. This form is designed for the man who every hour strives for 100% Efficiency for Customer, House, and Self. 251 252 ADVERTISING—SELLING THE CONSUMER. Nothing impresses a banker more than an exact system of accounting. To most bankers advertising good Ac- is more or less of a mystery. The man- counting an ufacturer must establish in his banker’s Asset in * * > tº Negotiating mind something besides the fact that he “” is advertising; he must convince him that he knows how to use advertising so that it will get results. When you call on your banker for a loan, there is just one kind of advertising that he will look fa- vorably upon—the kind that has been so accurately recorded by a comprehensive accounting system that you can prove to him that it has accomplished what it set out to do. * The building of a national good-will bears a direct relation to the amount of money spent for national The advertising. I have known many an ad- Relation of vertiser who at the end of three years of Advertis- º tº º ing to Good-national advertising would not sell the brand * he had established for all he had spent for national advertising in those three years, although it had been charged off to expense each year. When a business is being sold, the amount spent for general advertising is often the basis for computing the value of the good-will. I certainly do not advise inventorying advertising expenditure as an asset, but I do believe an account showing the annual expenditure for each brand which has a national sale is properly an item of a financial statement. I think the time is coming when banks ACCOUNTING 253 will ask for a statement by years, for profits may not be radically lessened for a number of years after advertising has been dropped. But the original net profit could not be restored without spending all profits for advertising for a year or two, or per- haps more. Most people, if asked to name the highest moun- tain in Colorado, would say “Pike's Peak.” But An Accu- the fact is there are twenty-six that are ... ...a higher. There are many articles that are sº really staples and are known only by their Annual Ex-trade name. No one knows whether there ſº. are twenty-six, or more, equally good Ones. tising Bagh The consumer’s preference, which is a mix- Product ſº * * * * * tº ture of experience, familiarity, and friend- liness, is the manufacturer's biggest asset. No one could estimate how many pages have been written about Pike's Peak, or how many times its name has been mentioned in magazines, newspapers, or by word of mouth; but all agree that in that way, and only in that way, has it acquired its distinction with reference to other Colorado mountains. Granted, then, that what has been written, printed, and said about a certain staple is what gives it prefer- ence, it follows that an accurate record should be kept of the cost of this favorable mental attitude, and that due regard be paid to the expenditure neces- sary to keep this investment intact and enhance its value if possible. It is impossible to say just how much should be 254 ADVERTISING—SELLING THE CONSUMER. spent for advertising, or how much for salesmanship. I can only repeat that price is never a measure of How Much value. It only measures the pocket-book’s j ñ, relation to the intensity of desires which *::::::: have been created by personal salesmanship ertising tº º wº and advertising. Practically every one has more wants than he has means. Lowering the price broadens the market; raising it, contracts the mar- ket. Many people who have unlimited means gladly pay for exclusiveness and distinction. Price never can determine or measure intrinsic value. A five-dollar safety razor leads the market against a competitor which sells as low as 25 cents. How is it done? The manufacturer put his price high enough, at the start, to provide him with a margin of safety. Then he has had to determine, by accounting, whether the market shall be widened and competi- tion discouraged by reducing the price and making on volume, or if he shall keep up the price and give his goods the added value of distinction and ex- clusiveness. If there is one idea that I wish more than another to have impressed upon the readers of this book, it is this: successful advertising is the active employment Successful of many factors properly balanced with re- Advertising lation to each other, inter-related, one to Defined another, so that their movements coördinate without waste or friction in carrying out plans capable of varying to meet an emergency situation but bear- ing directly toward a fixed goal. If I have made ACCOUNTING 255 this point clear, the importance of careful, compre- hensive accounting, up to the minute at all times, is obvious. Advertising is so many sided—it builds and con- serves business, it reduces expense, it strengthens credit, it eliminates waste, it puts a business on a rock foundation, as immune as is possible to compe- tition—that facts and figures with reference to it cannot be too carefully gathered. No one can accomplish much in this age without using some phase of advertising. And if this book shall inspire some to make use of it in a wholesome, helpful way, I shall be well repaid for the pleasant labor of producing it. REFERENCES ON CHAPTER XXIV Twenty-five years ago I read “Goodwin’s Improved Bookkeeping and Business Manual,” published by J. H. Goodwin, 1215 Broadway, New York City. It seemed to me then to expound the fundamental principles of accounting better than anything I had been able to get hold of. Quite recently I asked George F. Watt, president of the Elliott-Fisher Company, Harrisburg, Pa., maker of The Bookkeeping Machine, about this book, which has been rewritten and brought up to date. Mr. Watt told me when he was vice-president of the Baker-Vawter Company he inaugurated the policy of giving a copy of this book to each new sales- 256 ADVERTISING—SELLING THE CONSUMER man, to make sure that he thoroughly comprehended the basic principles of accounting. The Baker-Vawter Company, Benton Harbor, Mich., and the Burroughs Adding Machine Co., of Detroit, Mich., issue booklets emphasizing the broad scope and value in creative work of modern ac- counting methods. “Works Administration,” a twenty-eight page booklet of Gunn, Richards & Co., New York City, is a model piece of advertising matter for a profes- sional house, as well as an exposition of accounting principles. “Accounts—Their Construction and Interpreta- tion—for Business Men and Students of Affairs,” by William Morse Cole, A. M., Assistant Professor of Accounting in Harvard University (Houghton, Mifflin Company, Boston), is an authoritative pres- entation of modern accounting in its scientific as- pects. APPENDIX The following communication was published in the Chicago Record (since absorbed by the Chicago Herald) on September 30, 1896: FREE COINAGE OF LABOR. If free coinage is such a good thing, why not have free coinage of labor? The proposition that a miner of silver can take his silver to the mint and receive a fixed compensation for it is an excellent thing for the man who has silver. If this could be done, and a ratio of 16 to 1 be actually maintained with gold, it would show a handsome profit to the silver producer, or, if it should prove that free coinage would bring the dollar down to its intrinsic value in silver, it is still a convenience to the silver mine-owner to have a ready market for his product. In the interest of labor, it seems absurd to urge the free coinage of silver. Who has silver? Anybody but the mine-owner? Must we assume the worry and unnecessary labor of rearranging our system of business, our fixed values, our railroad rates, and our government salaries by changing our standard of measurement, simply to accommodate him? * But there is one thing every man possesses which he should in a wisely ordered government have a free and unrestricted market for, and that is his labor. I would join heart and soul in any movement which 257 258 ADVERTISING—SELLING THE CONSUMER. sought the free coinage of American labor. A govern- ment which kept open an opportunity for every able- bodied man to turn his day’s labor into not less than $1.50 to $2 in money on the gold standard would fur- nish an equilibrium for business, and do more to pre- vent depression and panic than any system of metal coinage that could be devised. See how simple the proposition is. Here we have 70,000,000 of people. Of that number there are per- haps 12,000,000 able-bodied men. Every person in the United States is fed, clothed, and housed every day. People are not dying of starvation. In exchange for food, shelter, and clothing, what does man give in return? His labor. With a free and unrestricted market for his labor, his productive capacity is increased. He is able to add more to the actual wealth of the country and se- cure a larger portion of it for himself. Every day spent in searching for employment, every idle day spent in waiting while mills and fac- tories are shut down, means a loss of production, while steady, regular employment, with its proceeds prop- erly distributed, means an increase in the comforts and possessions of the people. If every man in the country were absolutely sure he could market his services for not less than $1.50 a day, what ease of mind and comfort of body it would mean to the laborer—he would be able to act in- dependently of harsh employers and be assured of support for his family. This would make $1.50 a day a minimum price and would act as a regulator of the labor market. It would insure a steady and regular income for the laboring people and thereby establish a fixed and firm foundation for trade and business. APPENDIX 259 I would not have this market in the form of a sine- cure or fat political job. I would want to see it sim- ply a government affair where any one out of work could go for three months at a time—transportation to and from the place where work was going on free—and receive $1.50 a day, or its equivalent, less a fair and reasonable cost of board and lodging, which should be similar to that furnished soldiers in the regular army. The government could undertake great public works—canals, fortifications, harbor improvements —under this system, and when times became better and wages rose above $1.50, as they did in 1892, the work could be contracted to a smaller scale, and when times became dull and the demand for labor became scarce, the government works could be expanded again under the direction of army engineers and officers, of which there are plenty waiting around for something to do. No one will object to the government issuing bonds to furnish funds to pay labor of this kind in dull times if such were necessary, which is not likely, as a normal healthy business system would undoubtedly be the result, and deficient revenue would be very unlikely. It would entail no additional burden on the people at large, as every one in the country must be sup- ported in some manner. By this system there is gained the result of every worker's labor in addition to the self-respecting and well-ordered mind possessed by an employed man. If unskilled labor has a ready market, skilled labor needs no assistance. It will take care of itself. The prosperity of a country rests upon the pros- perity of its unskilled labor. A scheme like this would act as the governor of a steam engine to reg- 260 ADVERTISING—SELLING THE CONSUMER. ulate and keep in a steady and even condition the foundation upon which a healthy and aggressive busi- ness must float. One of my friends says this is socialism. But un- der the circumstances I have described where could there be anything but good results from such a pro- cedure? It certainly is fairer to all men if we have free coinage of anything at a fixed value to have that which all men possess and can give if they so desire. There is certainly no discrimination or favoritism in it. It would greatly simplify the demands in charity to refer all able-bodied men to the govern- ment works where all who would could work and be paid for it. JoBN LEE MAHIN. Chicago, Ill., September 24, 1896. MAY 2 g lºš THE COUNTRY LIFE PRESS, GARDEN CITY, NEW YORK ***, ….…… ••••••••••••••••••••••••••• ∞ √∞·، ، ، ، * *º _ ·---- ºg * &: ·&#*(?:(?:-)Lae :gº º ſº № . . . . . . , , , , , , , , ſº · ·:·º·:·º·sseta:rº:ſs ºtº.º.º.º.º.ººººº eºs, see!!!!!!!!!!!!!!!!!!!!!!!!!!! ººººººººººº ≡ ' * · · - *******wºwałae:-seaeae: º ! »· · · *** **** ,Ģ )º. • • • • • • • • • • •