> Be * | Do Not Believe in Quotas— By C.N. Cahill, General Manager, Autopoint Co.

* How American Coffee Company Fights the Premium Appeals of Direct Sellers

4 Public Favors Insurance as Safest, Most Productive Investment— MRCA Survey

* How Shall We Pay Our Salesmen? Let Field Research Supply the Right Answer

* Bruce Crowell—Marketing Flashes— Sales Letters— Designing to Sell—Spotlight

HE PERFECT PR od hac PAPER

FISHERMEN KNOW ABOUT /Zzre

Tue long, blue swells of the Gulf Stream are beau- tiful to look at. Yet every fisherman is cautioned against the glaring light they reflect ... The reason is the same one which prompts physicians and ocu- lists to warn us that: If we want to conserve our eyes, we must watch our reading habits and avoid direct lights and glare. Light reflections from water, like those given off by shiny paper, are a potent cause

of eye strain, “ Readers’ Squint,” and headaches.

HOW TO PROTECT YOURSELF AGAINST GLARE

(vainst the glare of water, colored glasses or tinted visors are an obvious precaution ... against glare in reading the Kimberly-Clark Corporation offers two non-glare printing papers whose colors and surfaces have been processed to neutralize it. These two non-glare papers, preferred by hosts of publishers, are Kleerfect and Hyfect. Though

they cost no more than ordinary printing papers,

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HOW TO CUT PRINTING COSTS

Moreover, their printing qualities combine so many practical characteristics that there are but few jobs on which they cannot be satisfactorily specified. In addition to freedom from glare. Kleer- fect and Hyfect are distinguished by lack of two- sidedness, unusual press strength, opacity and correct ink affinity.

If you are a publisher or an advertiser and are not already informed on how much readability Kleerfect and Hyfect can add to publications, mailing pieces and catalogs, write our advertising office in Chicago for samples. For estimates prov- ing how much these two papers can save you on

your present printing costs, talk to your printer.

on either Kleerfect or Hyfect.

KIMBERLY-CLARK CORPORATION

ESTABLISHED 1872

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CHICAGO + 8 SOUTH MICHIGAN AVENUE NEW YORK + 122 EAST 42ND STREET LOS ANGELES + 510 WEST SIXTH STREET

im "OSL

aimee 4, , Lec L

ALL- [Li BOOK PAPER

Fifty newspapers are published in the eleven U. S. cities which out- rank Milwaukee in pop- ulation. Only seven of them published more advertising than The Journal in 1936.

Se”

THE MILWAUKEE JOURNAL

HE Milwaukee Journal was FIRST

in the world in 1936 advertising gains—2,797,479 lines. And that’s im- portant to sales executives because of the conditions which made it possible. The Milwaukee area is far above national average in employment gains and now has more people on its payrolls than in 1929! They are buying a record volume of merchandise in many lines ... and the bulk of that buying is done through one newspaper.

FIRST BY MERIT

FEBRUARY 15, 1937

Nastiest Words

Those dealers in fervent and persuasive words—the copywriters of advertising agencies—were properly shocked when The Literary Digest published January 16 a list compiled by the National As- sociation of Teachers of Speech of the ten ‘‘nastiest’’ or most unpleasant words in the English language.

The teachers’ words were: Phlegmatic, crunch, flatulent, ca- caphony, treachery, sap, jazz, plutocrat, gripe and plump.

But the copywriters were rather pleased, too. It gave them a chance to strut their vocabularies. Here’s the list of words chosen by the copy department of Kenyon & Eckhardt (none of which probably will ever be used in advertising for Kaffee Hag, Knox hats, Siboney rum or Revere copper and brass):

Mucous, rachitic, putrid, dank, scab, blubber, ugh, spit, slimy and hickie,

“Matchless” Promotion—in Tins

Advertising matches can now be mailed. Barred until now, because of the fire hazard, except under special permit, the Universal Match Corp., of St. Louis, has found a way. It has designed a special asbestos package which is acceptable to Post- Ottice authorities.

The Chicago Evening American. taking advantage of the novelty of mailing matches, recently made a general mailing of 7,500 packages to a preferred list of business prospects. Each package contained 12 packets, “billboard” size, or holding twice as many matches as the ordinary booklet, in other words, there are 480 matches in each gift package.

On the inside of the folder was a table showing the com- parative gains in retail advertising for the American, as compared with the othe: Chicago newspape:s. This puts the American in first place. On the cover of the large size booklet of matches are the words, “Try to Match this.”

Tickled at the favorable reception accorded this stunt, the American's promotion manager, C. L. Gould, pulled another from

his capacious sleeve. There were some 2,500 members of the National Canners Association assembled by the waters of Lake Michigan, which gave him his cue When the canning fra-

ternity returned to their hotel rooms after conventioning all day, they found a curiosity-arousing tin can reposing on each and every dresser.

Now even the most frazzled canner who had listened, talked and viewed cans morning, afternoon, and evening, could not resist seeing what was inside his mysterious can No zipper or can-opener was attached, but that merely inspired a do or die spirit in the heart of the canners. Fancy a canner lord of serried ranks of shining tin, being worsted by a single can Somehow they penetrated the containers.

Inside was a book of matches and a small folder. The folder was imprinted with a huge can-opener and a legend stated, “You

can open the Chicago market easier than you opened this can if you use Chicago’s best can-opener—the Chicago American.”

Some 500 ad agencies and local food accounts also received one of the cans.

Chessie’s Daddy Chessie’s”” creator died on February 3.

Newspaper men remember Lionel Charles Probert as a veteran and capable “AP” reporter and executive, in Washington, D. C., Vera Cruz, Mexico, and elsewhere. (David Lawrence devoted an entire syndicated column to his career.) Advertising men re- membered him as the man who “humanized” the railroads through a kitten.

Retiring as Washington Bureau chief and Southern Division superintendent of the Associated Press, Mr. Probert went into railroading. Successively, he was vice-president of the Erie, the Pere Marquette and the Chesepeake & Ohio.

He put George Washington and Chessie to work for the C. & O.

Washington was once a surveyor. He blazed the trail through the Alleghenies for a canal, which the roads and later the rail- roads followed. Other railroads which used that same general route west, it was said, might have adopted him as their progen- itor, but the C. & O. did, and promoted the fact.

More important even than the Fath- ct of Our Country in C. & O.'s prog- ress in the last three or four years, however, was Ches- sie. When you travel the C. & O. through the Ohio valley between New York or Norfolk and Chicago or St. Louis, you will not,

of course, have to sleep with any kittens.

In February Chessie goes sentimental.

And yet, Chessie, a very charming little kitten, is shown asleep in a Pullman berth as the symbol of the railroad’s comfort: “America’s Sleepheart—Sleep Like a Kitten on the C. & O.”

Mr. Probert was sitting one Sunday in the Lotos Club in New York reading the gravure section of the Herald-Tribune. His attention was caught by a reproduction of a painting of a kitten. The next day he went to the art gallery which owned it, and bought the picture and all rights for its reproduction.

Chessie became the feature of the C. & O.’s magazine and newspaper advertising. She appeared on calendars, on playing cards distributed on trains, and, by permission, on other com- mercial calendars.

She has become a very famous kitten. And, in her lazy way, she has played her part in making the C. & O. one of the more prosperous units in the Van Sweringen’s great Allegheny Corp.

Calling All Beats!

If any cross-examining attorney waggles an accusing finger under the nose of E. L. Biersmith and demands, “Where were you on the night of January 25?” said attorney is going to hear an

iron-clad alibi. Mr. Biersmith, assistant sales manager of the

SALES M GEMENT, published semi-monthly, on the first and fifteenth, except in April and October, when it is published three times a month and dated the

first, tenth and twentieth; copyright, February 15, 1937, by Sales Management, Inc., 420 Lexington Ave., New York, N. Y. Subscription price $4.00 a year in vs t r > -— - 29 , _Wv r

advance. Entered as second-class matter, June 1, 1928, at the Post Office, 1 , under the act of March 3, 1879. February 15, 1937. Volume XL. No. 4.

SALES MANAGEMENT

t

Fs

pm cen ner

~ Study cra

DIE HARD anna BUY EASY

A SMART ADVERTISING MOVE—

The Chicago market, like any large metropolitan mar- ket, is composed of two separate and distinct groups— they’re not divided by class, nor cash, nor creed, nor color. They are divided by buying habits. They’re the liberals and the conservatives . . . the “Buy-Easies” and the “Die-Hards.”

The “Buy-Easies” are young, alert, modern individuals with open minds and open purses. Individuals who respond to new ideas. Individuals who may, or may not, be tops in the “social register”—but who are always tops in the “cash register.” And that’s what counts. The “Die-Hards” are older, more set in their ways. They stick to old ideas and old ideals. They’re cold to your sales messages.

We don’t know what newspapers the “Die-Hards” read. We don’t care—and neither should you. The American, with its terse editorial treatment, its dra- matic pictures and its modern features, is made for

FEBRUARY 15, 1937

wor to the [eberal Side

moderns —for young, alert, up-and-coming “Buy- Easies” who earn more and spend more.

Of course, it’s important that the American has the largest evening circulation in Chicago and that it had larger retail linage gains last year than any other Chi- cago daily paper—but—it’s more important that this great circulation is concentrated among the “Buy- Easies”—the best prospects for what you have to sell.

CHICAGO AMERICAN

»+.a good newspaper

Rodney E. Boone, General Manager

National Representatives: Hearst International Advertising Service.

[285]

SALES

Inanagemelm!

Vol. XL. No. 4 February 15, 1937

CONTENTS

is Fight...... TETTTEIRTLEL LETT cneewe wee What Cooperation May the Advertiser Expect trom the By Fred J. Wright Dealer Relations Crown Rayon Sections in 60 Stores Help Viscose Co. Sell

"By Lawrence M. Hughes

Ge | MEARE TIGNES. cccicdcssceeeccenneceseverceaversecws 293 Spotlight a Te ye 329 Bulletins on the Food | & Drug Legislation Fight........ «. 380

Management How We Minimize the Problem of Wasted Selling Effort.... 339 By J. Frank Martino, Sales Manager, Dallas House, Butler Bros. Paint Manutacturer Finds Robinson-Patman Act is a Boon In id ot Bane Cc eerercceoscecocores ° ° By Lester B. Colby Why I Never Tell a Salesman He Has to Lick a Quota.... 296 By C. N. Cabill, General Manager and Director of Sales Aut i int Co., Chicago

Man Power Problems But How Can Life Begin at 40 When Employment Stops

haat cae tee oe Kesmaded hed hen ae 316 By Malcolm G. Rollins How § We Pay Our Salesmen? Let Field Research By John Allen Murpi Utility Finds Every Customer Contact a Sales Opportunity... 3 Market Analysis ( | Public Favors Insurance as Safest, Most Productive Investment iveekeerenesdaeeethae seenenvassnen! See T/ lst f eries

Your Biggest Markets—and How They Seta in Retail Sales 322 By N. D. Farmer

Premiums

How American Coffee Fights the Premium Appeals of Direct

SONOS cvccsoece cece ° TEEPE TELIER TT EET 5U8 By R. G. Drown, Jr. Product Design I OE SM wc daviccbcnsewawebasdniddedsadexennes 373

Salesmanship

When You Strike a Dead End in Selling................. 299 By Bruce Crowell

Departments and Services

UOTE. CAI, 6 ince cdr docsdvedesnedsesoecns -- 320 Commence Werrvriririrririre rit re 38 ee ee ee 314 ET ee ee 301 ee eae er eee eee ee SE: BOONE: dc anscievenasskseeeedeasen cavaneaKelen 362 ee ere, Tee eee ee ee eae 358 po TTT TTT TTT TTT CTT re eee 284 BE BORO ic 0.02.000cbb er dinntssdecds wenenesioness 306 BAD de cavddc den twee usenet beac naeReene tes tanned hee nees 384

EDITORIAL STAFF RAYMOND Bitt, Editor and Publisher: PHitip SAcispury, Executive Editor; A. R. HAHN, Managing Fdi- tor; E. W. Davipson, News Editor; M. E. SHUMAKER, Desk Editor; F. L. SULLIVAN, Production Manager.

ASSOCIATE EDITORS: James R. DAntets, LAWRENCE M. Hucues, Lester B. Co.isy, D. G. Barro, Maxwett Droxke, Ray B. Prescott, L. R. Boutware, FRANK WAGGONER.

Published by Sales Management, Inc., RAYMOND BILL, President; PHILIP SALISBURY, General Manager; M. V. Reev, Advertising Man- ager C. E. Lovejoy, Jr., Vice-President and Western Manager; R, . SMALLWOOD, Vice-President: W. E. Dunssy, Vice-President; yf r KELLY, Secretary; Epwarp LYMAN BILL, Treasurer. Publica- tion office, 420 Lexington Avenue, New York. Telephone, Mohawk 4-1760; Chicago, 333 North Michigan Avenue. Telephone, State, 1266. Santa Barbara, California, 29 East de la Guerra. Subscrip- tion price, $4.00 a year. Canada $4.25. Member Audit Bureau of Circulation, Associated Business Papers.

[286]

Columbian Steel Tank Co., Kansas City, Mo., has a deep-etched recollection of that evening.

Far from the turbulent waters of the raging Ohio River which were inundating the city of Louisville, he had been enjoying the warmth of a bonfire with a group of skaters on a lake at the home of A. A. Kramer, president of the company, when a messenger from the house advised him that the long-distance telephone operator had an urgent call.

He stuck by the ‘phone for over two hours waiting for flood damage to be repaired and heavy telephone service to be handled before his connection was made. Finally, at one o'clock in the morning, he heard the voice of Luther Stein, vice-president of the Belknap Hardware and Manufacturing Co. in Louisville.

“Hello! Columbian? Biersmith? We want all the steel boats you have on hand. How many for immediate shipment?”

“We've got a lot—over 200,” Biersmith said.

“We can use them and plenty more,” Stein replied. “I’m stand- ing in water that is up to my ankles right now, and I’m on the second floor of our factory.”

“O. K.” said Biersmith, “I'll get busy, pronto.”

By three o'clock several score of workmen and even office employes had been called from their beds by Biersmith and were at work in the factory preparing the boats for shipment to Louis- ville. Company trucks were busy picking up other workers.

They toiled by the dawn’s early light.

Early the following morning the first two carloads of boats left the loading dock. The remainder of the shipment consisting of over 200 round- and flat-bottom Columbian steel boats left in other cars before noon. They were of all styles and sizes— every single boat Columbian had in stock built through the Winter months for early Spring deliveries.

All railroads participating in the shipment cooperated, and a fast freight was held up in Kansas City until the loading of the boats could be completed. After leaving the railroad yards, the shipment was ‘red balled” and given the right of way which all freight for the inundated areas commanded. The boats were accordingly delivered in Louisville in a fraction of the time re- quired for ordinary shipments.

Government agencies said they were ideal for relief purposes because of the air-tight bulkheads which prevent the boat from sinking even when filled with water and because the riveted and soldered seams assured the boat’s being water tight and ready for immediate service after the long journey by rail.

Space Buyer Swap

Four New York agencies—having duly swapped space buyers all around—are ready for the Spring season. Brown & Tarcher started it, several weeks ago, by taking Arthur C. Smith from J. M. Mathes, Inc. Then the Mathes agency took Dougles R. Hathaway from McCann-Erickson, Inc., to replace Mr. Smith. Then McCann-Erickson took John J. Flanagan from Geyer, Cornell & Newell, Inc., to replace Mr. Hathaway. And now Geyer, Cornell & Newell takes G. M. Lewander from Brown & Tarcher, to replace Mr. Flanagan. All four agencies seem quite happy about it.

SALES MANAGEMENT

=

DON’T TAKE OUR WORD FOR IT

ee

Let Mr. Roger .W. Babson, na- tionally known business analyst, describe the prosperous Louisville market! Mr. Babson said:

OUISVILLE has one of the brightest outlooks of any Amer- ican city for 1937. I am bullish on prospects for the Nation as a whole in 1937, but I am particularly optimistic on the South and on Louisville.

“Louisville is already well on its way to a building boom. At the bottom of the depression the monthly value of permits issued amounted to $30,000. The present level is close to $600,000. Next year’s to-

Louisville’s industry and Louisville’s citizens will benefit materially from this activity.

“Holiday sales have been the best in years, running from 20 to 40-per cent in some lines over last year’s Christmas total. This trend toward greater retail trade should be maintained in

1937.

“Kentucky’s great tobacco crop should

continue to bring its share of pros- perity to your

tal may run 25 per cent, per- haps 50 per

cent — higher!

ee

“I estimate that Louisville will run considerably ahead of the remainder of the country during the I forecast that we will see general business averaging 15 to 20 per cent above the corresponding months of 1936 in your city.”

early months of 1937.

area from both a trading and industrial standpoint.”

a2

Alert advertisers will profit from Mr. Babson’s analysis

of conditions in the rich Louisville area, economically

and adequately covered by one low-cost medium..

Che Conrier-Zournal THE LOUISVILLE TIMES

REPRESENTATIVES:

FEBRUARY 15, 1937

RADIO W 50,000 STATION AS WATTS

THE BRANHAM COMPANY.

Alfred P. Sloan, Jr., President General Motors Corporation

n 4 } ? ’ VRO ~ Clarence Schukei is one of the

508 Iowa Chevrolet dealers who sold 19,943 new cars in the first nine months of 1936— to set an all-time high in Chevrolet sales.

Speaking of all-time highs, Mr. Sloan, the folks in Clarence’s home town of Waterloo helped us set the new all-time record for Des Moines Sunday Register circulation—now more than 300,000. In Waterloo (in spite of it being 130 miles northeast of Des Moines) the Sunday Register reaches 6,935 out of the 11,957 families. And it’s that way in 200 of the

MR. SLOAN — meet MR. SCHUKE/

(your Waterloo, lows, dealer)

Clarence Schukei of Schukei Motor Co., Waterloo, lowa

# 204 Iowa cities and towns of 1,000 aan j tion and over, where the Sunday Register

has an average coverage of 65%!

Just as you, Mr. Sloan, speak of the 1937 Chevrolet as “the Complete car” — so we, too, might call the Des Moines Sunday Register the Complete Iowa advertising medium. Clarence Schukei of Waterloo, and other Iowa dealers co-operate with manufacturers who back them up with Sunday Register schedules—schedules that concentrate big volume readership right in their own local communities.

THE DES MOINES REGISTER AND TRIGUNE

r288}

SALES MANAGEMENT

——

REET ae

FEBRUARY

A LOT of magazines made good gains” during the year just ended. We’re glad to see this because it means good

business. ‘

The Post also did well. In fact, looking at the picture as a whole, The Post

shines with especially bright lustre.

For instance, The Post’s 1936 gain in

advertising revenue was more than

twice that of the nearest magazine

and exceeded the gain of any other

two magazines.

Stated another way, the total adver-

tising revenue earned by The Post

was more than that of all other

weekly magazines combined.

Here are the figures: total for The Post, $26,384,013. Total for the runner-up, $11,341,994.50.

The warm fact back of these cold figures is that the vitality of The Post keeps it way out in front—no matter how others

SATURDAY EVENING POST

“AN AMERICAN INSTITUTION”

)} INDEPENDENCE SQUARE, PHILADELPHIA

the ( 5reatest SHOW on EARTH

AYE &

MERCHANTS

in 1. MOTIONS

TEP right up, folks—see the greatest show on earth! See the most beautiful girls in the world . . . see the wild animals . watch death-defying feats . . . breathe an atmosphere of adventure

. ++ Escape from the dull routine of your life!

You leave care and trouble behind when you go to the “greatest show on earth.” You go for entertainment!

a: 2

Fawcett publications are skilled merchants in emotions. Between their covers is the greatest show on earth; they do not tire their readers nor bore them—they entertain. That is the reason for their remarkable success.

By dealing in emotions, Fawcett Publications appeal to the masses whose incomes now are up. They reach the market in which 80% of all buying is done. Circulation of Fawcett Women’s Group— 89% newsstand—is now at a new time high—2,200,000 A B C, with a generous bonus each month, Ist quarter, 1937, shows an adveriis- ing revenue of 44.5% over the same period of 1936—and 1936 was a record breaking year in both advertising and circulation!

FAWCETT

With incomes well above the average for the United States, Fawcett Women's Group readers represent a tremendous market for almost everything. They average 25.5 years of age and 56.7% of them are married. Their families average 3.89 persons each. 97% have family wage-earners.

Fawcett Women’s Group offers you a quick, economical sales route to America’s mass market. Ask your advertising agency.

RECORD GROWTH!

Circulation for Fawcett Women’s Group...

‘

ee last 6 mo. 1935 SOT ONE . ws Ist 6 mo. 1936 e-» |. last 6 mo. 1936 oy re January . 1937

*Publisher’s Estimate

PUBLICATION S inc.

The magazines with the human touch

FAWCETT WOMEN’S GROUP: Screen Book, Screen Play, Motion Picture- Movie Classic, Hollywood, Movie Story Magazine, Romantic Stories, True Confessions.

FAWCETT DETECTIVE UNIT: Daring Detective, Startling Detective Adventures e MODERN MECHANIX

New York ® Chicago © Los Angeles © San Francisco © Atlanta

[290]

© Editorial Offices: New York © Hollywood © Greenwich, Conn.

SALES MANAGEMENT

FEBRUARY 15, 1937

Advertised exclusively in the Chicago Sunday Herald and Examiner, a model suburban home (price $17,500) drew thousands of interested visitors. 3,300 were later questionnaired—by mail. 650 responded. Among other things, nearly 90% of them —584— said: “I have $2,500 or more in cash ready for a down

payment on a home.”

Proved responsive, able to buy, ready to buy — the advertiser's dream come true! Vast groups of such prospects in the ‘most-a-million-family circulation of the Chicago Sunday Herald and

Examiner await the buying suggestions

your copy would give them.

\

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In the LIMA, Ohio, Trading Area

Of the 235,756 population in this prosperous trading area, 64°cis rural. Thus advertising addressed wholly to townspeople reaches but little more than one-third of those who patron- ize the stores carrying your product.

Nm \o N —

Farm Trade Makes Trading Centers

Every trading area map shows a focal point, the “trading center”, with radial lines reach- ing to minute dots that locate the positions of other towns.

All the rest of the area is filled with farms. The farmer ranges over the entire trading area to do all his buying, for today he shops

on wheels and even the farthest limits are but minutes away.

Almost always the farmer knows what he wants before he starts. He gets his buying ideas from the advertising he sees in the magazine he reads.

Timely, compelling pages like these shown here ... possible only with 4-Day Printing ... command thorough reading of your ad- vertising by 1.300.000 modern farm families.

Farm Journal belongs on every national magazine list.

FARM JOURNAL

Fastest Growing Magazine in the National Farm Field

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SALES MANAGEMENT

Strikes are always disturbing —especially to those mixed up in them—but some people forget that they are in the headlines only when business is improving.

Strikes and Floods

@ @ e Walter Paepcke, the progressive young presi- dent of The Container Corporation of America, put it this way to a SALES MANAGEMENT editor the other day: ‘““We have had strikes and of course we don’t like them. But we never have strikes when business is bad, and if I had to choose between strikes and expanding sales and profits, and no profits and no strikes, I would certainly vote for strikes.”

@ e@ e Workers naturally want to get theirs and they see a better chance of getting it as unemployment declines. They are then in a better bargaining position. It may be significant that until recently the American Federation of Labor in making its unemployment estimates figured that 600,000 persons per year are being added to the employable class by population increase. Recently they have cut that estimate down to 500,000 persons per year and even this rate of increase is much faster than allowed by other au- thorities. President Roosevelt recently used a figure of 400,000 a year.

@ @ @ It is fairly generally agreed that in the depth of the depression 15,000,000 workers had no employment. Now, with the 400,000 a year increase as a revised esti- mate, it seems probable that actual unemployment, including the workers on government relief projects, may not be more than somewhere between 6,000,000 and 7,000,000.

@ @ e@ The main economic effect of floods is the de- struction of wealth. Some buildings and factories have been ruined and of course there has been frightful suffering on the part of individuals. But as far as national business activity and national income is concerned, the flood influ- ence may not be so far reaching as it seems. Only a few major industrial organizations have been directly affected. Relief funds will compensate for much of the loss in indi- vidual purchasing power and the long term program of flood control will pour hundreds of millions of dollars into the affected areas. The longer term effect is adverse because new debts must be assumed; therefore, flood effects are inflationary. For the immediate future, however, business in many lines will be stimulated by the need for reconstruc- tion and replacement materials.

@ @ e@ SALES MANAGEMENT checked with a number of manufacturers and wholesalers in cities far removed from the flood sections and found that stocks of many commodi- ties in cities like New York, Philadelphia, Cleveland, De- troit and Chicago had been completely exhausted by the call for replacements and emergency supplies from the Ohio and Mississippi River Valleys.

@ e@ e A poll made last week by Congressional In- telligence, Inc., shows that the Senate is overwhelmingly in favor of the Miller-Tydings Price Maintenance Bill. Sixty-

FEBRUARY 15, 1937

Significant Trends

As seen by the Editors of SALES MANAGEMENT for the fortnight ending February 15, 1937

one Senators definitely favor it, six oppose it, and out of a group of twenty-two marked “uncertain” the majority are new members who are not familiar with the proposed legis- lation.

@ @ e@ Opponents of the bill, representing depart- ment and chain stores, had their innings before the House Judiciary Committee last week and warned Congressmen that passage of the Miller-Tydings Bill would give ‘‘certain manufacturers complete control over certain lines of indus- try and would mean the raising of prices to consumers and lead to a buyers’ strike.” Mr. Walker, of Macy’s said: “The effect of this bill would be to freeze retail and whole- sale prices at uniform levels. It would make retail prices higher than they now are. The bill would raise the cost of living. It legalizes a raid on the family pocketbook.

@ @ e “Under existing law,” continued Mr. Walker, “any manufacturer can control his prices by bona fide agency arrangements under which he assumes full distributive risks. He is also free to open his own stores or to sell direct to the consumer. Within the limits of the law, he is free to refuse to sell to those retailers who do not observe his sug- gested prices. He needs no further protection.”

@ @ @ ‘The somewhat raucous laughter you hear comes from manufacturers who have tried in vain to keep R. H. Macy & Co. from getting their merchandise and sell- ing it at cut prices.

@ e@ e Spring is the most active season in the pro-

=

Black Star Photo Building contracts last year were considerably more than double those of the depression low year of 1933 but we still have far to go. Last year’s contracts, for example, were less than half of the 1929 figures and they were also considerably under 1925 and 1926. One of the largest insurance companies in the country maintains a very detailed record of the build- ing situation in all important cities. Elaborate charts show existing buildings by types, the annual losses through fires and demolition, the number of births, the number of marriages, etc. It is their judgment after surveying all known facts that the country is going on a building spree during the next five years which will eclipse any other five-year period in our

history.

{293}

duction of durable goods and a relatively dull one in con- sumer goods. During March to May inclusive, production of durable goods usually runs between 10 or 20% or more above the broad monthly average for the year. Steel pro- duction has been getting nearer and nearer to capacity as a result of increasing calls for durable goods. Most of the recent unemployment has been higher in durable goods or in services depending on them.

@ e@ e Exceptionally rapid expansion—34% over a year ago—is shown by building permits for the past month and, barring serious labor troubles, greater things are prom- ised in the Spring. It is then that new structures are speci- fied in greatest volume, though of course their actual erec- tion continues through the Summer and into the Autumn.

The Employment Status of Leading Industries as Revealed by Government Reports

BASED UPON INDEX NUMBERS BY INDUSTRIES DEC. 1910

tron and Steel

Men's Clothing Women's Clothing

Meat Packing

Woolen Mills Cotton Mills

Tires and Inner Tubes Agricultural implements

Cr 6S O3 Aa

SOURCE OF DATA U_ 5S. BUREAU OF LABOR STATISTICS sername 10% Oe The Cemae Pome

The volume of industrial production in December, according to the Federal Reserve Board’s index, was higher than the monthly average for 1929 though not equal to the peak month of that year. The index figure stood at 121 (1923-1925 equals 100). The monthly letter of the National City Bank of New York says: “The business improvement is proceeding under the driving force of unsatisfied wants and the desire of busi- ness men to do business; the forward movement is cumulative, and the momentum will carry it on as long as the progress is orderly and the equilibrium is maintained. The rise in trade shows that the economic system is in better working order, with costs, prices and incomes of the various elements of the population all in better balance than for many years, thus promoting production and the exchange of goods.”

The average net income of farmers in 1935 amounted to $1,001, com-

Farmer’s Income puted on a

Now $1,000 |

it comparable to the income of urban manufacturing workers, who received $1,041. This is a summary of the National Industrial Conference Board's study called, “In- come in Agriculture.”

@ e@ e In arriving at its estimates, the Board included income earned by farmers from work done off the farm, amounting to more than a billion dollars, or an average of $150 for every farmer in the country. The farmer’s income received in kind was revalued at retail prices instead of at farm prices. Governmental rental and benefit payments, averaging $82 a farmer, were also included.

[294]

@ e@ e@ More than 1,500 corporations are subscribing to the Universal Air Scrip plan which enables personnel of the companies to save 15% on one way tickets and 5.5% in addition to the present 10% saving on round trips. The scrip permits the holder to fly over any or all of the 19 major airlines in the country.

@ e@ e@ The dollar value of retail sales of new pas- senger automobiles in December reached a point 75% greater than the 1929-1931 average.

@ e@ e Reports from Washington indicate that Gen- eral Hugh Johnson's plan of building a new NRA and making it work has considerable Congressional support. His idea is to let employers do as they please about hours and wages. But! Determine the hours per week that are desired, say 40, and the minimum hourly wage, say 40 cents. Then, Congress having the right of taxation, he proposes a revenue measure to provide funds for Federal unemploy- ment relief to come from three excise taxes:

@ @ e@ “First, a tax of 20 cents per man-hour for all man-hours worked over 40 per worker per week; second, a tax per man-hour equal to the difference between any man-hour rate actually paid which was less than the statu- tory rate and 120% of the statutory rate; third, to offset and provide unemployment relief for too rapid displace- ments of men by mechanization or otherwise, take as the normal yearly per man output in dollars for any particular employer, the value of this gross production divided by the number of workers (man-hours) he had that year. That was his output per worker. For every subsequent year. assess as an excise tax 10% (or some other per cent) of any increase in this figure of dollars’ worth of output per worker.”

@ e e For the first time in the history of the United States it is now possible to buy beer in each of the 48 states. Alabama was the last state to legalize it.

@ @ e More than 75% of food manufacturers, whole- salers and retailers who replied to a questionnaire sent out by the Associated Grocery Manufacturers of America ap- prove the intent of the Robinson-Patman Act. More than 40% reported having been benefited so far from the opera- tion of the act and another 15% expect they will benefit from the law in the long run.

@ @ e@ The results of the survey show that in addition to approving the intent of the Anti-Price Discrimination Law, a clear majority of all branches of the industry favors the restrictions imposed by the act on quantity discounts, brokerage, advertising allowances and also application of the act to both buyers and sellers.

@ e@ e@ Complete reports of new passenger cars regis- tered in the United States during 1936 show the following unit figures and rankings as compared with 1935:

1936 1935 Position Make Position 1—928,514....... | ere 655,772— 2 2—747,702....... pee: 826,076— 1 3—499,114....... Plymouth .......... 382,929— 3 Et , RE 178,763— 4 5—17GAF1 «occ Oldsmobile......... 149,370— 5 oe Yt ee DES arichestencases 140,116— 6 ee eee Rianne eaiaaid. 87,624— 7 8— 99,259....... Hudson © ......sss0. 75,424— 8 9— 68,753....... a 37,649—10 10— - 67,967 666065. Studebaker ......... 39,570— 9

* Includes Terraplane Total All Makes CO LESTER IAS 2,742,439

SALES MANAGEMENT

-FORWARD

er

Good By, Good Luck: Paul G. Hoffman, left center, president of Studebaker Corp., shakes hands with Harvey Stowers, sales training director of Stude- baker Pacific Corp., as the latter starts the tour. Others, from left to right, C. Scott Fletcher, sales promotion mgr.; R. F. Gloster, regional mgr.; Geo. D. Keller, v.-p. in charge of sales; D. R. Osborne, sales training director; Luther Johnson, M. DeBlumenthal, William Donnelly, research engineers.

Veteran: Daniel J. Saunders, with the Permutit Co., New York, for 17 years, is promoted from asst.

A Caravan Sets Off: (Left) Three van loads of sales promotion and research exhibits are started rolling by Stude- baker to hold meetings and demonstrations in 66 key cities of 35 states. Research engi- neers and sales execu- tives will go along to give talks, talking movies, and mechanical

exhibitions for three months. Studebaker dealers and _ salesmen

will form the audiences.

SHOTS FROM THE FORTNIGHT'S NEWS REEL

to mgr. of industrial sales.

Youngster: Lonnie Allmond, newly appointed _ regional sales and promotion director of the Texas division of the Borden Co. is only 29.

Switches: Merlin H. Ayles- worth, R-K-O board chairman, for ten years president of Na- tional Broadcasting Co., organ- izer of the first radio network, will resign on March 1 to join

Scripps-Howard Newspapers.

Harris & Ewing

Coal Man: James P. Duffy, ad.

mgr. for the past seven years of

Delaware, Lackawanna & West-

ern Coal Co., becomes asst. to

the president of Anthracite In-

dustries, Inc., in charge of ads and merchandising.

LOS SORDOS OYEN USANDO EL

ACOUSTIC 7

Underfoot Ad: The Mexico City traffic cop gets off the hot pavement and into the air where motorists can see him be- cause four merchants were alert to an advertising opportunity. They provided scores of these wooden stands without charge and put their selling messages on the sides. Translated, the Spanish legend reads, “The deaf hear again with Acousti- con.” Dictograph Products Co., Ine., congratulates its Mexican dealer for being wide-awake.

Soap Man: Arthur F. Danz, mgr. of the industrial division of Colgate-Palmolive- Peet, goes over to Kirkman & Son, Inc. He will serve as v.-p. and gen. mgr. of the Brooklyn soap company, which is celebrating its 100th anniversary.

Why I Never Tell a Salesman He Has to Lick a Quota

HEN the average sales man- ager feels his nose (maybe sensitive) being pressed down on the grindstone of urgency by the insistent demands of the big bosses for greater sales volume —can you blame his inclination to give up the knotty problems of scientific selling and take the easy, popular way?

Certainly far less mental effort will be required if he reasons that, if more sales must be made, it is only a mere matter of requiring that each indi- vidual salesman sell more goods—and forcing him to do it.

Of course no sales manager ever arrives at this rather brutal decision through such direct and elemental rea- soning, yet the final results are always the same—Presto! Chango! The same quota.

Does the sales quota really have any unusual merit?

Well—if wide, persistent and gen- eral use is any proof, then we must admit that the sales quota is a fully- tested, absolutely reliable, standard and unfailing method for increasing sales pronto and in a big way.

Yet I, for one, doubt the proof!

Quota’s Merit Goes Unproved

Mere popularity is not conclusive. For instance, the fact that mediocrity is far more prevalent than is high ex- cellence, is rather unreliable “proof” that mediocrity therefore has a value to be preferred. The sales quota is popular mainly because so seldom tested in comparison with other meth- ods. I am sure that when sales man- agers in general begin to try other means, the unmerited fame of the sales quota will rapidly grow dim.

However, the easier the preparation —the shorter and more simple the method—the quicker a thing can be done—the better (?)! Alexander the Great taught us than when he cut the Gordian knot. So (in our strictly hypothetical instance) George the Bellringer, who sold $7,500 last month, is informed that his sales are to be $9,000 this month. If not, the sales manager is ‘‘going to be terribly disappointed,” to say nothing of his embarrassment. George has been in- timately acquainted (and bored) with sales quotas off and on for 25 years, so there is really nothing in that

{296}

Moffett

BY Cc. N. CAHILL

General Manager and Director of Sales, Autopoint Company, Chicago

This sales director doesn’t believe in driving men to meet an arbitrary increase in

sales volume. Instead, he

puts them into competition with their own past records and lets sporting blood take

its course.

“news’’ to step up his pulse-beat, fire his imagination, or fill him with the fever of enthusiasm.

As to definite suggestions for the obtainment of that $2,500 boost in sales, he reads, “Step on the gas, Old Man, we know that you can do it. We are depending on you, George,” etc. Outside of the implied respect for his loyalty and unusual sales ability, there is nothing to elate him. In fact, he is inclined privately to resent thus being “rewarded” for winning distinction as the big shot of the organization.

“Go-getter Jim,” vastly pleased with his success in making ‘em sign on the dotted line for $5,000 worth, that came mighty hard during the tough days of the ultimo, loses much of his enthusiasm when he learns that there will be no joy in the home office un- less he turns in $6,000 worth of

encouragement during the proximo.

And so on down the line to the tail-enders who can be moved from the rut only by something far more potent than a sales quota enfeebled by age—exploding dynamite, for instance.

Whether so intended or not, this method of dictatorially imposing a set task on the salesman looks to me like nothing but just plain duress in dis-

uise.

Although the salesman is well aware that he will be remunerated by in- creased earnings for his extra effort, he is thus made conscious of being placed under a pressure that constantly will be increased by the setting of still higher quotas does he succeed in meet- ing the first. It is one thing to try by pressure to wring extra effort out of the salesman by setting a quota. It is quite another, and psychologically dif- ferent thing to encourage, to stimulate, and to aid the salesmen Aimself to step-up sales,

Really great salesmen are proud, or sensitive, or high-strung, or tempera- mental. Some are a combination of all of these—“bundles of nerves!” With them, as with a thoroughbred race horse, the use of either bit or spur is not advisable.

Good Men Are Insulted

All have highly developed initiative. So naturally they look upon the quota as a sort of left-handed insult to that initiative. They are inclined privately, if not openly, to resent the quota as an unjust penalty imposed for the pos- session of sales ability and an eager willingness to make unusual selling effort. To all practical purposes, is it

, not just that?

To support the popular theory that the quota inspires the salesman to un- usual effort, I have observed absolutely no proof. On the contrary, this method appears to me to be lacking in all elements of inspiration. What it does possess in full measure seem to be elements that distract.

Unavoidably it lays the huge part of the excess burden on the shoulders of the salesmen who are already carry- ing the big load. Thus it appears to be naught but a confiscatory tax on ability and initiative.

Assuming that capable salesmen have intimate understanding of the

SALES MANAGEMENT

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es tt

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Poa OSS

products, policies and merchandising plans of a company, I believe that little can be done to increase their productivity other than to take every- thing out of their way that would otherwise hamper their efforts—mean- ing both mental and physical bars. My own observations lead me to believe that a really great salesman uncon- sciously challenges any quota set for him. And he challenges it negatively, because a quota is a negative thing to him.

The poor salesman always considers almost any quota as being “‘too high.” If it is desired to eliminate him, that objective is easily accomplished simply by setting his quota so much higher that he will quit voluntarily. This, I believe, is one of the few really useful purposes of the sales quota.

I grant that if maximum sales are to be won, the sales manager must employ means to increase the efforts of all salesmen. Yet these means must be encouraging and inspirational—not mere methods of pressure. If the salesman does not himself have a genuine desire to sell—all the duress in the world will fail to make him do it!

It is true that the sales quota sets a definite goal for the salesmen. Yet at the same time there is unavoidably set —through autosuggestion—an equally definite limit. When the salesman reaches his limit, there comes the natural inclination unconsciously to let down.

“T’m the Best Man Here”

Instead of trying to increase sales through the shallow ruse of setting an arbitrary quota, I favor making an appeal to that irresistible desire, in- herent in the most capable members of the human family—the desire to win in competition with their fellow- men! This means that I favor putting salesmen in competition with them- selves, with one another—or both.

By this method you do not attempt to make the salesman a serf under duress; but challenge him as a free- man to demonstrate his ability. No really great salesman will refuse to ac- cept this challenge. It is a direct appeal to his ‘‘sporting blood,” the possession of which is the chief distinguishing characteristic of the highest type of salesman.

Through this method, sales of Auto- point products have been increased phenomenally. To be definite: We expected an increase in December, 1936, of 25% over our sales for the same month in 1935. Our salesman gave us an increase of 93%!

In connection with this method

FEBRUARY 15, 1937

In Person: The original “Napoleon” of the comic strip “Napoleon and Uncle Elby,” a 190-pound St. Bernard, is informed by his master——Cartoonist Cliff MeBride—that he is now appearing on billboards in six Pacific Coast states. Union Oil Co. is using the comedy characters to give its ads a change of pace. Lord & Thomas is the agency. An important reason for employing the dog and his fat boss is that they are well and favorably known to newspaper readers, their comedies being syndicated in 50 papers. The real Napoleon is undergoing training for movie work, performing in several pictures about to be released. Union is pleased at the additional publicity angles.

Utilities Chief: Campbell Wood has been named director for public utilities of the Kelvinator division of Nash-Kelvinator Corp. His department will maintain gen- eral offices in Detroit and branch offices in New York and Chicago to cooperate with public utilities in stimulating con- sumer use of electric service.

Climbing: C. M. Wilson becomes sales manager of the radio division of General Electric’s appliance and merchandise de- partment. For the past year and a half he was GE s.m. in the Middle Atlantic district, with headquarters in Philadel- phia. Previously hé was in charge of Pierce-Phelps, Inc., sales in Pa. and N. J.

[297}

“Comparative Sales Standings’’—one of the most important of the weekly mailings to salesmen is our ‘Confiden- tial Sales Standings’ sheet. This lists the sales made personally by each and all salesmen and district sales man- agers Not merely the grand total, but the total of each product sold by the individual. The tabulation enables the salesman to compare his sales on each product with those of any other sales- man he elects. He need not conjec- ture. He has facts and figures care- fully compiled and verified by the accounting department as a basis for helpful analysis.

Remarkable results show up by rea- son of the study of these comparative standings by the salesmen. For in- stance, a salesman in Kansas is thereby shown to be selling five times as many rubber erasers as is a certain salesman in Missouri. Maybe the Kansas sales- man has been somewhat favored by certain factors closely relevant to the recent Presidential election. Be that as it may, the salesman in the ‘‘show-me”’ state immediately asks himself why he does not sell as many rubber error eliminators as that chap in Kansas.

This Challenge Gets Response

We have noticed that when a new top-notch salesman starts with us, he may pay no particular attention to the sales standings for a time. But slowly and surely the figures, and their mean- ing, get under his skin. Sooner or later we see plenty of evidence that he has a strong ambition to be Salesman No. 1, and in all of the classifications.

In this same connection another simple form—yet of indispensable im- portance—is mailed every month to each salesman and district sales man- ager. It is mimeographed on a regu- lar letter-size sheet. A sample reads: is biti tedik ine ik wn da dare eah I eee During January, 1936, your personal gross sales amounted to seccoscossenres BO BED a

lanning our production, will you kindly fill in elow the amount of gross sales you expect to secure in January, 1937?

AUTOPOINT COMPANY

(Signed) C. N. Cahill General Manager

C, N. Cahill, General Manager Autopoint Company Chicago During January 1937 I confidently expect to make personal sales totaling $................ This would be a ......% increase (Box for check), decrease (box) over January 1936. DNDN ‘.ttteeuabaddoucsiawhieses “LET'S MAKE 1937 A LUCKY YEAR”

Note that the salesman, at his own option, may indicate either an increase or a decrease! Either way, he has definitely indicated both his attitude and intent. And whether or not he desires to compete with other sales- men—he is being diplomatically urged to compete with himself.

Note also that there is no dicta-

{298}

tion from the sales manager—not even a vestige of any impending pressure. Most important is the obvious fact that he, himself, is to set his own quota as he elects.

The majority of our salesmen pass well over the marks they themselves set. We know that those who do not, are either marking time or beginning to go down-hill—a condition requir- ing prompt and serious attention by the sales manager. They get a kick out of telling us how much more they expect to sell next month over the amount sold during the same month a year ago. When they reach their self-set goal they experience another burst of enthusiasm that keeps them going ahead full-speed with their sell- ing, instead of letting down.

I am not attempting herein to dis- cuss incentives, such as contests, hon- ors, rewards, prizes and bonuses. Often these are so offered that the reward goes to those who least need it—the bellringers; while the medium volume sellers, who always constitute the majority, get nothing. These lat- ter are inclined to make no extra sell- ing effort as it is conceded at the start that the leaders have the rewards in the bag. For these reasons I be- lieve in giving rewards to those who beat their own records, or to divide salesmen into classes according to their abilities—just as golf players are grouped in four divisions. These give every salesman a chance to win.

We use three “Comparative Sales Standings” sheets! One for specialty salesmen selling to premium, adver- tising and incentive-use buyers. One for those selling to jobbers and deal- ers. The third for those selling in- stallations of Auto-points for official organization use.

We mail these sheets on Thursday of each week so that each salesman can make his own analysis during the weekend. The “Anticipation Sales Questionnaire” is, of course, mailed once a month.

Treat Men as Individuals

To gain the best results, it is obvi- ous that each salesman should be in- dividually directed to the extent found practical. This is why I dictate indi- vidual letters to the salesmen, each worded according to the type, educa- tion and characteristics of the individ- ual. I try to tailor these letters to the salesman’s personal experiences and problems. Sales may or may not be mentioned. Without forcing the issue I try to make an answer necessary. By reading between the lines of the reply I often obtain valuable suggestions as how further to aid the individual

salesman. This adds to the morale. A high morale is never of fortuitous development. Always it is mainly cre- ated by an executive who has imagina- tion, understanding, sympathy, diplo- macy, integrity of word, honesty of purpose—and the rare ability to in- spire men.

Assuredly the sales manager, in di- recting his organization, is not deal- ing with a machine. Neither does he command the group ev masse. I be- lieve this latter impossible. He must deal with individuals. With Jim, Bill, George, Henry, and others who all stubbornly refuse to exhibit a desired reaction to any uniform or standard handling.

They differ as black differs from white. They range from suave to pleasingly rough—from plain, hard- boiled and likable pluggers, to artfully hypnotizing diplomats. And by na- ture they are astonishingly variable— hard-headed, romantic, sensitive, sen- timental, hot-headed or mild-man- nered, open as a show-window, in- scrutably reserved, or temperamental as a Latin diva.

Sales Manager, Know Thyself

It seems reasonable to believe, there- fore, that if a sales manager is devoid of understanding, sentiment, enthusi- asm and imagination—his knowledge of morale and how to build it up will be restricted mainly to its definition as given in the dictionary. Certainly he will be unable to pass on to his men that subtle mental intangible, which he, himself, does not understand.

If he cannot inspire his men with a genuine desire to write their names higher on the sales standings sheet, and mainly because of that honor alone—

If he cannot fill them with the sporting urge to show the other sales- men of the force just what real sell- ing looks like—

If he cannot through oral or written word put determination into their brains to go out and, in the teeth of the toughest competition, make stubborn prospects sign for more goods—

If he cannot aid his men in de- vising definite and practical means for increasing the old B. R.—

Why, then—void, futile and falla- cious will be the sales manager's pleadings for more sales action—his dire threats of impending discipline— his dictated announcements of ‘keen disappointment” in the home office and the displeasure of the big bosses— his offers of reward and bonuses—and even his most lusty and stentorian bel- lowings of ‘Go get it, go-getters!”

SALES MANAGEMENT

When You Strike a Dead End

LL of us have had ex-

perience with the pros-

pect who, after long

and careful cultivation, time and time again balks just this side of the dotted line. The salesman may know in his heart that the buyer needs the product. He is convinced in his own mind that he has made a well- rounded, capable sales presen- tation. He has been able, at least, to make the prospect listen attentively. But on every call he butts smack up against the same discouraging dead end: No order. And he feels baffled because he simply can’t put his finger on the reason why he has failed.

I know one salesman who worked on one man for nearly two years in an attempt to get an order for advertis- ing space. After dozens of calls, in each one of which he had hammered home one

specific, important point— with no results—he went back again, with just 26

words to say. These were the words: “You know my whole story. I haven’t sold you. This time I have only one question to ask: Will you now give me a signed order?”

He got it!

One thing to do, then, is to keep on asking for the order on the chance that the man really is sold but won't give you the satisfaction of saying so. Another is to challenge the buyer. Even the toughest buyer secretly

in Selling

BY BRUCE CROWELL

Ewing Galloway

admires any salesman who re- fuses to be licked. Here's the way one man did this:

“Mr. Pecksniff, I’ve been calling on you for 18 months. I haven’t sold you—but I still think I can do you a service by selling you. You need my product. You're a difficult man to sell, because you never openly state your objections? Will you do this for me? If I’m going to be licked on this account I'd like to know the reason why, because it’ll teach me a valuable lesson in salesmanship. On the other hand, if you're still open to be sold and are not buying because of some objection you've failed to state plainly, will you state it now and give me a sporting chance to an- swer it?”

Now, there are very few buyers who, thus challenged, can very well get out of do- ing what the salesman wants them to do. Because of its superb diplomacy and direct- ness, neither can they be an- gered by it. And best of all, in such a sally, the salesman still retains control of the in- terview—the most important point of all in dealing with the tough guys.

Whatever you decide upon as your last-resort tactics, re- member these fundamentals: Never give a sign that you believe you're hopelessly de- feated. Never degenerate to the status where you're beg- ging for an order. And hold

your temper in a crisis.

Reprints of this page are available at three cents each, remittance with order.

FEBRUARY 15, 1937 [299]

U.S. Government and A.M.A. Enter California—Florida Citrus Fight

A.M.A.’s Journal declares there is no scientific justification

of Sunkist’s “22% more” claim. . . . Most media men stand

pat on refusal to take competitive copy, and an act-of-God

freeze in California tops off the fruit growers’ current

advertising and marketing troubles.

ONTROVERSY between Cali-

fornia Fruit Growers’ Ex- change and Florida Citrus Commission over the adver-

tised statement of the former group that its Sunkist navel oranges are 22% richer in vitamin C than Flor- ida oranges” swung into a new stage during the last fortnight with investi- gation and reports by divisions of the Federal Government and the Ameri- can Medical Association.

In its issue of January 30, the Journal of the A.M.A. not only cited recent findings of the laboratory of the Bureau of Home Economics, United States Department of Agriculture, but injected, editorially, some thoughts of its own.

The Bureau of Home Economics in- vestigators evaluated the relative pro- portions of vitamin C by determining the cevitamic acid content in milli- grams per cubic centimeter of juice of fresh Valencia and navel oranges grown in California and of fresh Valencia and pineapple oranges grown in Florida.

Respectively, it was found that these four varieties contained .40, .58, .45 and .51.

“There appears,” said the Journal of the A.M.A., “to be no justification, therefore, in this unbiased report to a claim that the oranges grown in Cali- fornia provide 22% more vitamin C than do Florida oranges, because the variety of orange, as well as the local- ity in which it is grown, must be considered.”

This latest of a long series of un- civil wars between California and Florida began December 3. On that date the California Fruit Growers Ex- change departed from its 30-year-old policy of “educational” advertising, during which it has been the primary factor in multiplying the nation’s orange consumption, to talk specifically

[300 }

about its own and Florida's oranges and to name names.

There were two reasons. One was that the California group had found— or thought they had found—after two years of independent laboratory study, that Sunkist navel or Winter oranges are 22% richer in vitamin C than Florida oranges. The other reason was that the Florida interests, then starting their second annual all-state-grower campaign through the Citrus Commis- sion had made considerable progress the previous year, largely on a “‘one- fourth more juice” theme. (Florida did not mention California specifically, however, in this connection—though the implication was there.)

Florida's $450,000-a-year advertis- ing, it appeared, had been more effec- tive, proportionately, than California’s $2,000,000.

Closer proximity of Florida to the large eastern and middle-western mar- ket was a factor. But Florida also was capitalizing on the pioneering work which Sunkist had been doing for a generation. Florida, spending the bulk of its money in about 75 large city newspapers east of the Mississippi, was making effective raids, and per- haps permanent conquests in_ these areas.

Sunkist has always used various media, but probably has spent more money in magazines than anything else.

This Winter, in connection with in- troduction of the ‘‘vitamin C’’ theme, Sunkist decided to spend the bulk of $650,000 appropriated for navel or- anges in the markets in which Florida has been so aggressive. Forty-eight newspapers in 34 eastern and middle- western markets were to be on the schedule.

Sunkist, however, it seems, did not reckon with the policies of newspapers with reference to specifically disparag- ing copy. Macy’s may say in any

‘

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One New York magazine ran the copy, and Sunkist boasted... .

newspaper, for example, that this is a “better coat for $24.95,”’ but no news- paper would accept the assertion that this is a “better coat than Gimbel’s (or Lord & Taylor or Bloomingdale's) could sell you for $24.95." The sum of it is, according to the censorship standards set by all large newspapers, that the only time you can mention your competitor by name is when you may decide to praise him.

Sunkist found that many newspapers could not run the copy. It would be all right to say “22% richer in vita-

SALES MANAGEMENT

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min C.” Even the Sun, the Times or the Herald Tribune would carry that. But the addition of “than Florida oranges” was taboo.

The exchange stood pat. No™.... than Florida oranges,’ no schedule.

Most of the newspapers also stood pat. The Hearst and Scripps-Howard groups turned it down. So did the Gannett Newspapers. The Chicago Daily News caught the first insertion and pulled it, after a couple of edi- tions. .

California claimed that of 64 news- papers to which the copy was sub- mitted, more than half ran it. Florida made a survey and could find, of 108 newspapers, only eight which ran it. Apparently, California, unable to get its intended list, approached other newspapers, with some success. But not enough.

Florida squawked, but California was adamant. Unable to get the news- papers in those strong, large city markets, California went after other media. “A newspaper magazine” ran one ad with “. . . . than Florida or- anges,” it was said, but refused to run more. The large weekly and monthly magazines would not touch it. One New York magazine ran the copy, and California forthwith boasted about that.

The Retort Discourteous

California had better success in car cards and outdoor. Subways accepted double, over-exit cards which socked Florida twice at once. The headline is “Sunkist Health Oranges for Juice.” (Taking the words right out of Florida’s mouth!) Supplementary copy says: “Leading laboratories re- port that the juice of Sunkist navel Oranges averages 22% richer than Florida orange juice.”

Just why the Barron G. Collier in- terests, which control the subway as well as most of the other car cards in the country, accepted this copy, is not known. Mr. Collier is said to own a county or so in Florida. He is one of the “biggest” men there. Florida people tell SM that they’re sore as hell about this ‘‘unneighborly’”’ attitude.

The Florida mention in Sunkist copy runs in outdoor posters, but not in spectaculars.

It should be said though that, de- spite the fact that Florida has refrained from mentioning California, it has done its part to provide provocation. A recent Florida newspaper ad was headed “Florida’s Challenge.’ It em- phasized the old theme of “‘one-fourth more juice.” Because Califorina has for so long been active in making “California” and “oranges” synony-

FEBRUARY 15, 1937

mous, a non-specific contrast with them can do more damage than if California employed the same technic against Florida.

The Journal of A.M.A. poured a bit of extra salt on California’s wounds by pointing out that “it is the opinion of the government investigators that the volume of juice per orange is also a factor worthy of consideration. The California navel orange yields less juice than do other varieties of the orange of equal size.”

The greatest blow to California pride and profits, however, came not from Florida, nor from the news- papers, nor from the government, nor

even from Dr. Morris Fishbein, editor of the Journal of the American Medical Association . . . but from the weather. Frost last month ruined a good part of California’s navel orange crop. The advertising program has had to be cur- tailed.

Florida, on its part, wants to be friendly, and helpful. ‘We don’t want to kick them when they’re down,” a Florida representative told SM. “We want to forget it.”

Perhaps, next year, there will be an interesting campaign for Califloritexas oranges, with more juice than you ever dreamed possible—and fairly alive with vitamins!

Marketing Flashes

Gadget for the Absent-Minded—Texaco Boils — Big Figures—A Successor to Jig-Saw Puzzles?

Clock Watcher

“Use a Clock Watcher and you won't have to be one,” advises M. H. Rhodes, Inc., New York, maker of ““Mark-Time” devices, in its first con- sumer announcements. A boon for people with poor memories, an elim- inator of dark smoke clouds and burnt smells from ovens, the Watcher may be set for any desired period. A musical chime warns that the pudding is done, the laundry washed, baby’s nap should be over, or whatever.

“When you buy a new range or washer be certain that it is equipped with a genuine Mark-Time” continues the copy, prepared by Arthur H. Ful- ton Co. and inserted in national maga- zines, mostly women’s. About three years old, the timer has not heretofore been offered to the public, though range and washer manufacturers have adopted it as standard or optional equipment.

It “dings” when time is up.

Rhodes devotes smaller space in its ads to its automatic switches that turn radios, sun lamps, roasters off; and to a light switch that “holds the light until you get safely from garage to house” or tie the pajama strings and climb between the sheets.

National Means Local

To a small town dealer the surge and thunder of a national ad campaign seems far away. Yeah, those hand- some color pages the salesman unfolds look mighty nice, and the millions of circulation he recites sound big, too big for a little place like this town. Overcoming this mental attitude and boiling down rows of zeros so that a local retailer can grasp them is one of management’s numerous vexations.

The Texas Co. tackles the problem in The Texaco Mission, its house organ for service station dealers. Ray- mond Browne, advertising manager, explains:

“ ‘National’ advertising is simply ‘local’ advertising everywhere at the same time.

“Right in your own town, the Texas Co, advertises every month in the year. To the Texas Co. this advertising is national. To the Texaco dealer it is local.

“Sometimes a dealer does not know how much local advertising he is actu- ally getting. . . . Let us take an actual case, which is fairly typical. The town of Little Rock, Ark., has a population of 81,000 white families. It has 15,- 913 passenger cars registered. How much of Texaco’s ‘national’ advertising is local in the town of Little Rock?

“There is a new booklet just printed

(Continued on page 382)

r301)

BY LAWRENCE M. HUGHES

Dey _ Brothers, N. Y., store plays up “Crown Tested Rayon Fabrics” in this corner of its women’s piece goods department. On the wall at rear are replicas of the Crown seal used on all textiles and manufactured garments.

Crown Rayon Sections in 60 Stores

Help Viscose Co. Sell Tested Quality

APID development of rayon to

a point where it now surpasses

apparel wool and silk and is

surpassed only by cotton in sales volume is a story of striving for and promotion of ‘‘quality.”

It is a story of overcoming, in 25 years, habits and prejudices centuries old. Of proving that machines can take spruce chips and cotton linters, and with the help of science, style and sales management, do at least as good a job as the silkworm, the sheep or the cotton plant.

In this period rayon has shown itself to be versatile, fashionable and trust- worthy.

Pioneer of rayon in America and for years consistently the largest pro- ducer has been the Viscose Co. Vis- cose has won this position not only by emphasizing but insuring quality.

Last year was the company’s 25th anniversary. Its production of Crown Rayon yarn increased from 362,544 pounds in 1911 to 10,004,126 pounds in 1920; from 62,637,847 in 1929 to 92,094,491 in 1935. Last year Crown Rayon production went above 100,- 000,000 pounds.

The first 15 years were concerned largely with methods of producing rayon. Since 1930 the Viscose Co. has concentrated primarily on insuring consumer satisfaction in finished mer- chandise made of its yarn product.

{302}

Viscose demonstrates that the “special department” idea for

getting goods featured by big-name retailers is highly effec-

tive in achieving big sales increases and inducing salespeople

to do a better job of educating the public to a better under-

standing of synthetic fabrics.

In that year was launched the Crown Quality Control plan.

Crown Rayon yarn is consumed in fabrics that find their way into various types of merchandise—piece goods, women’s and children’s ready-to-wear ; underwear for men, women and chil- dren; upholstery, curtain and drapery materials; men’s ties and mufflers, and many dress accessories.

Producing a basic yarn, Viscose sells to weavers, knitters and converters. It now has 96 manufacturing licensees.

The Quality Control plan was adopted to keep the products manu- factured by these companies up to a definite standard. These products then went through the channels of distribu- tion to the consumer bearing the mark of “Crown Tested Quality.” This identification the Viscose Co., the manufacturers and the stores have pre- sented consistently in their advertising.

It should be emphasized, said John A. Spooner, merchandising director of

Viscose Co., that the tests of products of licensee manufacturers have been made from the start by the retailers’ own \aboratory—the Better Fabrics Testing Bureau, official laboratory of the National Retail Dry Goods Asso- ciation.

Drapery, upholstery and curtain fab- tics are tested, for example, for fabric construction, fabric purity, tensile strength, color fastness to sunlight, dry cleanability or washability, and all- ‘round wearing satisfaction.

Fabrics for dresses and intimate ap- parel are tested on similar bases—with the addition of color resistance to per- spiration and resistance to fraying.

Prospective licensees whose products pass these tests are given a certificate entitling them to use the Crown Tested Quality insignia. This certificate bears the signature both of an executive of Viscose Co., and of Better Fabrics Testing Bureau.

Store executives recognized the value

SALES MANAGEMENT

Syracuse, °

rasa

On right a corner of the “Crown Tested” curtain and drapery section of R. H. White Co., Boston, where ads, clerks and store displays have concentrated on boosting rayon fabrics.

Strawbridge & Clothier, Philadelphia, was first to install a special section devoted to “Crown Tested Rayon” piece goods. Its lead was followed by 30 major depart- ment stores within the first year.

of this mark and have used it increas- ingly in promotions as a guide to rayon merchandise of proved merit.

A recent development along this line has been the establishment of sep- arate Crown Tested Rayon sections in piece goods and curtain and drapery departments.

This policy was first adopted by Strawbridge & Clothier, Philadelphia, in March, 1935. It grew in that year to embrace 30 major stores throughout the country. In 1936 the number was nearly doubled.

In less than two years Strawbridge & Clothier has found that the separate section and the more intensive promo- tion has trebled its annual volume in Crown Tested Rayon. Other stores report similar progress.

Some of the stores which have established Crown Tested piece goods departments are Abraham & Straus, Brooklyn ; Broadway Department Store, Los Angeles; Famous-Barr, St. Louis;

FEBRUARY 15, 1937

R. H. White, Boston; Lansburgh Brothers, Washington, D. C.; Kauf- mann’s, Pittsburgh; Hochschild, Kohn & Co., Baltimore; Mandel Brothers, Chicago; Emporium, San Francisco; The Golden Rule, St. Paul; the May Co., Los Angeles and Cleveland; the Boston Store, Milwaukee; Denver Dry Goods Co., Denver; Kresge Depart- ment Store, Newark; William Hen- gerer Co., Buffalo; Wolfe & Marx, San Antonio; Meier & Frank, Port- land, Oregon.

Some which have established sep- arate curtain and drapery departments are L. Bamburger, Newark; Mandel Brothers, Chicago; Golden Rule, St. Paul; Adams, Meldrum, Anderson, Buffalo; Schuster’s, Milwaukee, and McCurdy Co., Rochester.

Here’s what some of the stores say:

Schuster’s, Milwaukee, which set up separate Crown rayon curtain and dra- pery sections in its three stores, re- ported “very decided” increase in drapery business in the first year and “unusually successful” promotion of curtains.

Outlet Co., Providence, stressed the “high quality” of these fabrics, ‘‘as to washability, wearability and color fast- ness” and pointed to a “good deal of return business already from very satis- fied customers” in the first three months of its separate Crown piece goods department.

Lansburgh & Brother, Washington, established a Crown Tested Rayon sec- tion adjoining its silk department. “Since its establishment we have en- joyed a wonderful increase in the sale of rayon fabrics, especially in those that are Crown Tested.”

John Gerber Co., Memphis, empha- sized the work of Viscose in creating a “better understanding of synthetic fabrics in general.”

Wolff & Marx, San Antonio, said that “this section has materially im-

proved our sales of rayon fabrics.”

Strouss-Hirschberg Co., Youngs- town, is “promoting only rayons that are Crown Tested quality.”

Abraham & Straus, Brooklyn, ex- pressed its “firm belief in Crown Tested fabrics.” These have “in- creased our business and eliminated most of our rayon ills.”

The stores with Crown Tested sec- tions are especially active, of course, in promoting tested fabrics made from Crown Rayon in displays and news- paper advertising. Also the sections are their own advertisements—each bearing the sign “Crown Tested Rayon Fabrics” and the disc mark of Crown Tested quality in white or gold against a black circle.

Miss Pauline P. Alper, advertising manager of the Viscose Co., showed SM one recent week’s total of news- paper advertisements, featuring Crown Tested fabrics, by the separate-section stores. It totaled 1,708 column inches, or 23,912 lines. Total circulation was 11,470,800.

(Separate Crown Tested section ad- vertising is only a small fraction of the millions of newspaper lines which hun- dreds of stores use yearly on Crown Tested Rayon fabrics.)

Local separate-section advertising is paid for mainly by the stores. The Viscose Co.'s work is concentrated in national and trade paper advertising and in helping the stores to establish effective sections. A portfolio of ad- vertising ideas, with illustrations avail- able, without charge, in mat form, is prepared annually for them.

The sections are set up by the stores, Mr. Spooner explained. All they ask for is ‘educational’ and sales promo- tional help. Some of them send “Crown Tested supervisors” to the Viscose Co., at New York, for instruc- tion.

(Continued on page 379)

[303]

Paint Manufacturer Finds Robinson-Patman Act Is a Boon Instead of Bane

This largest maker of water paints, in con- forming to the price maintenance law, is able

to scrap unprofitable accounts and revise

unsound trade practices.

O the Reardon Co., largest

manufacturer of water paints in

the U. S., the Robinson-Pat-

man Act is proving not a hamp- er, but an opportunity to realign and tighten its distribution set-up and price structure. The changes it makes will undoubtedly affect the policies of many of the other manufacturers in this field—some 52 in all—since Reardon, with plants in Chicago, St. Louis and Los Angeles, has been sell- ing 49.6% of all cement paint and 22% of all casein paints made in this country. Placed as it is in a position of outstanding leadership, many small- er companies naturally follow it in matters of price, policy, etc.

When the Robinson-Patman Act came along, and had to be taken into account, Reardon desired to conform and follow the law to the letter. It was apparent that the paint industry, like many other industries, would have to take a cinch in its belt and tighten up on a number of trade practices which, during depression years, had grown somewhat lax.

One of the first things that Rear- don did was to send out a question- naire to its trade. This was nothing new to Reardon. For 20 years it had followed a custom of sounding its customers in this manner whenever any problem bobbed up. It has fol- lowed this system even to the selec- tion of colors for its color cards.

The recent questionnaire was very simple. Under the law a manufac- turer can select its customers and can maintain its resale prices. The ques- tionnaire sounded Reardon wholesalers on the desired mark-up and asked how and to whom they were selling. A representative of SM recently called upon R. E. Reardon, vice-president in charge of the Chicago plant, to inquire about the results of the questionnaire and how it affected the company’s mer- chandising operations.

{304}

Reardon’s new “Water Paint Depart- ment,” valued at $60, is moved into any worth while store and set up as a unit.

He stated that approximately 4,000 questionnaires were sent out and that about 3,200 of them were returned properly filled in. As a result, based upon the desires of the majority, the mark-up to dealers was reduced from 50% to 331%4% and the resale list, formerly 214 times distributors’ cost, was reduced to 2 times distributors’ cost.

Further it was learned that the Rear- don line was being disposed of as fol- lows:

To wholesalers and manufacturers who sold to dealers and contractors, 65 to 75%.

To those catering to maintenance, 15%.

To the retail trade, the remainder.

The company has always confined its sales to jobbers and dealers; never to industrials or the consuming trade. The result was that Reardon immedi- ately checked from its customer list all those who catered to the retail trade. The results were:

1. It reduced the total numbers of its customers between 12 and 15%.

2. It concentrated upon the whole- sale business, meaning its better and more profitable customers.

3. It reduced a three-price-list sys-

industrial

BY

LESTER B. COLBY

tem to a two-price list system by elim- inating its jobber or semi-jobber list with its series of discounts. Today the company issues only one price list to authorized wholesalers and its sug- gested resale price list in effect in the

particular territory in which the wholesaler is located.

The simplicity of this new set-up of prices is indicated by the following, clipped from the two current lists:

From the authorized wholesalers’ list :

Modex—The Modern Casein Paint 300-lb. 100-Ib. 25-Ib. Cases of 10

Bbls. Drums Drums 5-lb. Pkgs

Cwt. Cwt. Cwt. Cwt. White ....$ 9.50 $10.00 $10.50 $11.00 Colors .... 10.50 11.00 11.50 12.00

From the local zone suggested resale price list: Modex—The Modern Casein Paint Dealers Contrac- Retail Lb. tors Lb. lo

300-lb. Bbls., White ..$0.13%4 $0.16% $0.19% Colors .. .14% 1814 21%

100-lb. Drums, White.. .14% 17% .20%

Colors... .15% 19 .22% $25-lb. Drums, White... .14%4 .18% 21% Colors.. .16% 20 -23% 5-lb. Pkgs., 10 to Case: Pkg. Pkg. Pkg. EE Sapa -76%4 95% 1.14 Se wacesews 833% 1.0334 1.24

The general plan of mark-up fol- lows closely the desires voiced in the questionnaires and approximates:

Se BOE CIES cris ccawcceceenes 33.44%

To contractors and industrial maintenance Oe, Ce DE i.c6yicsdatacwecewons %%

To retail buyers, over COSt........-.0-. 100 %

The mark-up is calculated on f.o.b. factory prices, plus the average freight rate to the trading zone in which the wholesaler is located, which is added

(Continued on page 342)

SALES MANAGEMENT

c&

Se

POPULATION DENSITY

COVERAGE INTENSITY G2

U.S. SALES MAP

a THE 48 STATES PROPORTIONED TO DOLLAR VOLUME OF RETAIL SALES / ~_____ Somree: US. CENSUS OF RETAIL DISTRIBUTION 1933

tana y= h i } i >

f s

T |

NORTH

| DAKOTA |

| —| MINNESOTA | SOUTH |

— | DAKOTA

ate, WISCONSIN MICHIGAN

/ WASHINGTON | mowr.

y, ss

\ OREGON wre |

-_+— | 1OA | wemnasxa | |

4 ITAN | AREA

‘a cou on iN tee ( CALIFORNIA | xawsas MISSOURI ILLINOL g IL. conweénicur |v | o SALES - \ )

| PENNSYLVANIA | TEN \ 3 7 RETA L- KENTUCKY Y oO" SALES | na TENNESSEE Sas Rein | | i

| NEW YORK MASSACHUSETTS | |

| ) | }

Oe ee i ia T. oF COL MARYLAN new TEXAS LA. | MISSISSIPPI ALABAMA ses as gas

' 4 ' Ante | a; 7 NORTH CAROLINA — = _ SOUTH CAROLINA f eer GEORGIA RLORIOA : \ X wd raSrOciAn SOA WEMLPOPAS at \s \ \" \ vi SS, ee

@ The Twenty-State area of the Northeastern section of the country embraces 60% of the population and 67% of all retail sales . . . and concentrated in this area is the all-embracing circulation of the Metropolitan Group, from 6,500,000 to 8,000,000* families.

* With additional or alternate papers.

Metropolitan Comics eckly

Color

METROPOLITAN SUNDAY

NEWSPAPERS, Inc. MEW YORK - CHICAGO

THE LARGEST CIRCULATION IN THE WORLD—FROM 6!/,, TO MORE THAN 8 MILLION FAMILIES

FEBRUARY 15, 1937 [305 }

e Additonal or alternate popers

Boston HERALD-Buffo/o COURIER-EXPRESS Detroit FREE PRESS-New York HERALD TRIBUNE 5t Louis POST-DISPATCH —Washington POST

@ Baltimore SUN- Boston GLOBE -8uffolo TIMES ~Philadelphia INQUIRER Chicago TRIBUNE- Detroit NEWS -New York NEWS ~Pittsburgh PRESS Cleveland PLAIN DEALER-S¥ Lows GLOBE -DEMOCRAT-Mashington STAR

A field scout with field glasses re- ports a Pennsylvania Railroad calendar hanging on the wall of a New York Central executive, a traditional rival. It may be some of that new brother- hood-of-man stuff; or it may be wish- ful symbolism—the New York Central hammering the Pennsy to the wall.

ee

Effectiveness Report: One Ralph Burdick inserted a classified ad in a Miami paper, with copy as follows: “Listen—I’m lazy, hate to work, I'm none too honest, must have short hours and decent salary; prefer chauffeur’s position; don’t want to work, but have to.” He got 17 offers of a job, seven of them as chauffeur.

* * &

Another sleuth reports a K-9 Ani- mal Hospital at 240 West 72nd Street, New York. A doggy dispensary, no doubt.

* ok of

I think I mentioned here last year that the battleship Maine was sunk in Havana Harbor on February 15, 1898. We kids wore celluloid buttons read- ing: ‘Remember the Maine—to hell with Spain.’’ I wonder now if the Fates didn’t take that curse too seri- ously. None of us wished Spain that much hell.

* ok *

Slogan for Heinz Ketchup: ‘‘Put it over the plate.”

* * &

Simile to replace that old one about two peas in a pod: “As alike as two Japanese.”

* * *

Conversation Piece by Chevrolet: “I'm all for its high-compression, valve-in-head engine . . . saves me a lot of money on gas and oil . . . and the whole family feels a lot safer in its new, all-silent, all-steel body with Solid Steel Turret Top and Unisteel Construction.” Do people really talk like that?

* * *

At last, there is a new version of the lover-in-closet theme. The travel- ing man wires his wife that he will be home the next day. Arrives, dashes into the house expectantly, hears man’s voice. Considers shotgun routine, but, on second thought, runs to next block to get wife’s father. The old gentle-

{306}

man counsels calm, saying there is usually an explanation for everything. Father-in-law returns with traveling man, saying: “Let ME talk to her.” Comes downstairs in few minutes, wreathed in smiles. “I £vew there was some explanation,” he says to out- raged son-in-law. “She never got your wire!” tO ¢ With my especial weakness for the play-on-words, I like that sausage headline: “Jones in January.” * ok Getting back to conversational copy, there is but a handful of copywriters in the business who may be entrusted with it. Study the smashlines of the movies that click. Study the short story. Listen closely to human beings talking in the subway, at the ball game, in the theater lobby. If you don’t have. a positive flair for natural conversation, don’t attempt it in an advertisement . . . don't! * ok If a certain loud-mouthed traffic cop (you probably have a candidate) would sit down and ponder how easily he could be replaced with an automatic traffic light, it might take some of the conceit out of him. **#

“Daily Smile Wins $500 for Wait- ress in Will.”—Headline. Dale Car- negie preaches that sort of thing in his swell book, mentioned recently by our own Maxwell Droke.

* * *

Label for a trusting soul: “Suitable for framing.”

* * &

By the time this issue of SM hits the mail-sacks, I shall know how I came out in Mid-Week Pictorial’s pic- ture contest. You remember the grim photograph of two Spaniards leading another Spaniard to certain doom at the hands of a firing squad. A fair title might have been: “Eliminating the Middle Man,” but it was no place for levity. I sent in an ironical title, reminiscent of the tourist folders of another year and indicative of the futility of a civil war: “Sunrise in the Sierras.” I'll let you know.

-

A & P denies any attempt to belittle

advertised brands. For a minute, I

thought “A & P” stood for ‘“Adver- tised & Private,” with the accent on the latter.

* * * Sometimes it seems to me _ that studio audiences will laugh at any joke, however bewhiskered; will ap-

_plaud any song, however badly sung.

Sponsors need a better gauge than this simpering claque. * * *

By this time, it may be said that General Motors’ Alfred Sloan knows his unions.

x * &

Incidentally, it wouldn’t be cricket in the steel business to strike while the iron is hot.

+ oe

Thanks to The Literary Digest, 1 now know the medical reason for my dread of overnight trains. I have “siderodromophobia,”” which means “dread of railways.” It is one of a long list of unpronounceable names which the medical profession has thought up, which that increasingly interesting news-weekly has compiled.

_

I have also smoked out one of the chief reasons for the success of two very dynamic salesmen of my acquaint- ance: They get plenty of sleep! I proved it by telephoning their homes at what I thought was a reasonable hour, having their families report they had retired for the night.

* 2's

“We learn you to drive automo- biles,” said a sign in a small town I was passing through. This may ex- plain many hazards of the road.

* * *

America continues to be a nation of phrase-makers. Our Assistant Secre- tary of War referred to the threatened world conflict as an “adventure in suicide.” “Cancers of injustice” is the latest one tossed off by the President. How about one to cover the strike situation ?—‘‘Tumors of turmoil.”

* * & . ‘Air France to Put World’s Largest Land Plane into Service Next Spring. Winter Garden, Bar, and Library to Be Features of New Ship.’’—News item. Hey, hey! ko * *

Apropos of nothing, it occurs to me that the phenix, that mythological bird that rose from its own ashes, was probably a smoked heron.

. = =

It was new to me, as it was to Jack Coffey who sent it in. Two customers were discussing “Othello” during in- termission. ‘I don’t like this show,” said one. “All it is, is a bunch of quotations!”

T. HARRY THOMPSON

SALES MANAGEMENT

OG COMPANIES. & PROBLEMS

| seo

Eleven teletypewriters in cities throughout California help Golden State Company deliver its dairy products fresh. The company enthusiastically reports: ‘“This service has speeded up our transmission of orders, and expedited delivery of our perishable products.”’

Fashions are perishable

products too. Neiman-

Marcus Co. flashes new styles, new colors, and new fashion de- tails instantly and accurately between its New York fashion organization and Dallas store by teletypewriter. Dallas is better dressed, Neiman-Marcus happier.

Armstrong Cork Co. isn’t floored by the need

for speedy communica- tion among its manufacturing,

laboratory, purchasing, and credit departments, and sales branches. Teletypewriters in ten key cities handle com- munications instantane- ously, and in type form.

== The Truscon Steel Co.

unifies its far-flung offices and plants by teletypewriter hook-up of 31 machines through- out the country. Aside from increased efficiency and swifter service for customers, Truscon says the teletypewriter Z Z

has made possible large G : Z “a

operating economies.

large and co small, for fast, flexible,

yards or 3000 miles

the same connection, ny forms, with

deliveries accelerated,

Sentatives will hel

How American Coffee Fights the Premium Appeals of Direct Sellers

Fighting fire with fire, this New Orleans coffee manufac-

turer uses a “money back” premium plan to offset the lure

of the “advance premium” offered by so many house-to-

house distributors.

BY R. G. DROWN,

NE of the most potent sales-

builders utilized by firms

selling by the house-to-house

method direct to the consum- er, has long been the ‘‘advance”’ premi- um—-an article advanced to the house- wife at the time she makes her first purchase and “paid for” by her with credits accumulated through purchases made on subsequent calls.

Combatting this premium plan has caused many an advertising manager and sales executive of firms selling through retail outlets—grocery and drug stores, particularly—considerable thought. It has proved itself one of the

JR.

strongest sales weapons at the command of those manufacturers and wholesalers who come in direct contact with the ultimate consumer. The principal ad- vantage, of course, lies in the fact that the salesman can offer the consumer an attractive and useful premium (or “gift” as he usually refers to it) as soon as she makes her initial purchase in- stead of asking her to save coupons for weeks or months or to pay part cash for the article she wants.

This approach is hard for many housewives to resist, as sales figures of the leading manufacturers in this field will attest. And once the premium has

Gertie and Dot “I said, ‘Well, if the law of averages says it’s past time for you to sell an Imperial Eight, we’d be perfectly safe in spending the commission on it tonight, wouldn’t we?’”

[308 }

been placed in the home and has been put into use there is naturally very lit- tle chance of that particular family dis- continuing the use of the produce in- volved until enough “credits’’ have been earned to “pay for” the item... and before this happy state is reached the wily salesman, if he is worth his salt, has again tempted the lady with a second equally beguiling premium. In which case she often accepts it and the process is repeated all over again.

The rather unwieldy coupon redemp- tion plan involving the saving of 25, 50, or 100 coupons packed with each can or jar of the product before re- demptions can be made, often fails to “click”’ with housewives who, attracted by some particular article, want it right away. The equally-prevalent “part cash” method of offering premiums also has one big drawback though in many ways it is doing a fine job for some of the nation’s largest and most successful premium-users . . . the con- sumer need purchase only one package —or at most a very few—of the prod- uct in order to secure the premium; and once the redemption has been made there is no reason for housewives to continue to buy unless a second and equally interesting offer is made. Few indeed are the premium buyers who can bat a thousand when forced to se- lect one item after another to attract consumers through this method.

A Practical Solution

All of which lengthy preamble leads us to the fact that something seems finally to have been done that enables the manufacturer who features premiums, but who sells through retail dealers rather than direct to the con- sumer, successfully to combat the ‘‘di- rect-to-consumer” distributor with his own peculiar adaptation of the ‘ad- vance’ premium method.

It is manifestly impractical for a manufacturer, located hundreds and even thousands of miles away from most of his best customers, to have a representative call at the home of each consumer and offer a premium on the “advance” plan as explained above. Were he to attempt such a procedure he would automatically revert to the “direct-to-consumer’” class and could just as well sell his own merchandise while he was about it, thus eliminating his wholesalers and retailers entirely. Instead of personal calls, therefore, he

SALES MANAGEMENT

5~2@

2 = ~

HISOGO” CONSECUTIVE COPY

On February Ist, 1937, O. F. Atteberry, Atoka, Oklahoma, took his 886th consecutive copy of ~~ |i The Farmer-Stockman* from his mailbox. For 30 years he has found it well worth while to keep his subscription alive.

+ SNiNATINANNNE

setnee tiied?

7

. oe Nor is farmer Atteberry’s case unusual for the 90D pac Southwest. Witness the cases of T. W. Tanner, Rule, Texas; TT. S. Henderson, Aline, Oklahoma; oat \ aman J.T. Bain, Hedley, Texas, and scores of others whose 1922 | a : habit of reading The Farmer-Stockman dates back ce more than 27 years. These folks have learned by experience that there is a reason why The Farmer- / Ws a Stockman has the biggest Oklahoma and Texas uae st lal circulation of any farm paper in the United States. Hut

*Mr. Alteberry’s subscription dates back to the days of The Weekly Oklahoman, which in 1911 became The Farmer-Stockman,

The FARMER-STOCKMAN

Oklahoma City, Okla.

THE OKLAHOMA PUBLISHING COMPANY

THE DAILY OKLAHOMAN OKLAHOMA CITY TIMES RADIO STATION WKY MISTLETOE EXPRESS

FEBRUARY 15, 1937 {309}

must substitute another means of ap-

proach. The American Coffee Co., Inc., of New Orleans, has bridged the gap through the use of its regular coupons packed with every package of coffee and tea that leaves its factory in the Crescent City.

Though this southern firm does not claim the credit for having originated the scheme it has been employing for the past few months, it has adapted it to its own uses in a manner that has proved eminently successful.

Each pound of Morning Joy, St. Charles, French Market and French Opera coffees and teas — all products of the American Coffee Co.—carries an “Acco” certificate offering a variety of premiums. Some of these—like Wm. Rogers silverware and LaVal- liere toiletries—are redeemable without cost with varying quantities of the cer- tificates. Others, principally alumi- numware and toys, require only three of the certificates for each redemption, together with a cash payment.

New Slant on “Money Back”

These certificates, showing the free premiums on one side and the arti- cles requiring cash on the reverse, have been packed with these particular products for the past few years. The silverware and toiletries, as a matter of fact, have been offered for some 20 years. Lately, however, additional copy has been included in the explanation of the premium offers which adds con- siderable attractiveness to the offers and entitles them to rank with the “advance” premiums featured by house-to-house distributors in effec- tiveness and appeal. This brief piece of copy reads as follows: “Note! After you have received one of our premi- ums requiring a cash payment, con- tinue to save your ‘Acco’ certificates. When their combined value (at one cent each) is equal to the amount you paid for the premium, return them to us and we will refund that amount to you in cash.”

This simply means that if the house- wife wants a streamline train, for ex- ample, such as the one the company featured during the past Christmas sea- son for three certificates and 87 cents, she simply sends three certificates from either of these brands of coffee or tea, or both, to the American Coffee Co. in New Orleans, together with the cash payment. She receives the train and continues to save her “Acco” certifi- cates until she has accumulated 87 more of them. She may then send these to the company and receive a re- fund of 87 cents. The toy train will then have cost her nothing.

Many of the advantages of this pre- mium plan are apparent at a glance.

[310]

It combines the most attractive features of the straight coupon redemption and the cash payment plans, in addition to binding the consumer close to the man- ufacturer in practically the same way as does the advance premium. The consumer need not wait to acquire whatever premium she particularly wants, but can secure it as soon as she has purchased three pounds of coffee. But the transaction is far from com- pleted when the three coupons (or certificates) are mailed to the company with the cash and the premium is de- livered. What housewife will neglect to continue to purchase the product if its quality and price are satisfactory, when she knows that by doing so she will be able to regain the entire cost of the premium article?

The company values its coupons at one cent each, redeeming a premium that costs them 25 cents for as many coupons, so it represents no extra cost when a cash payment equal to the usual investment is substituted for the merchandise award. At the same time the offer of a cash refund is a con- stantly present guarantee of value and quality, keeping the consumer aware at all times that the company stands ready and willing to pay back every penny she has invested when the re- quirements have been fulfilled. This means that consumers are taught to have confidence in the products of the American Coffee Co., and the new pol- icy gives added meaning to the premi- um plan used by this concern.

Walter M. Swertfager is appointed direc- tor of advertising of Seagram-Distillers Corp., following his resignation from Lord & Thomas, where he has been an executive for the last eight years. Pre- viously he was with Vacuum Oil Co.

While the company makes no pre- tense of expecting the consumer to be- lieve she is getting “something for nothing” when she receives premiums with coffee and tea purchases, it does prove to her through this premium plan that she is receiving premium goods of her own choice without pay- ing any more for her merchandise than she would were she not to make use of the premium coupons. The coffee, with the coupon in each pound, costs her the same retail price whether or not she takes advantage of the premi- ums offered. The cost of the premiums, naturally, comes from an appropriation set apart for such purchases just as the advertising appropriation is spent for space in publications or time on the air. Premiums cost money but thev justify their cost by increasing sales and thereby decreasing the cost of man- ufacturing the individual package of the product, just as does advertising.

Buyers Rarely Take Advantage

As a matter of absolute fact, Ameri- can Coffee officials were not long in discovering that most housewives, after receiving their premiums, did not con- tinue to save the coupons and return them for the cash refund for the very good reason that before they had ac- cumulated the required number some new premium caught their fancy and persuaded them to use their new cou- pons for the purpose of acquiring this additional “‘gift’’. The very fact that the company is so willing to refund the cost of the premium and no ques- tions asked makes consumers less anx- ious to take advantage of the offer. They feel assured that the premium must be all that the company claims it to be and therefore are satisfied that they have paid a fair price for it and have, in fact, obtained it at a consid- erable saving compared with the regu- lar retail price.

The cash refund offer is similar in many respects to the “money back’’ guarantee used so successfully by many “manufacturers. The knowledge that the product is guaranteed is of inestim- able value in helping to complete the sale and unless the item proves defi- nitely unsatisfactory in some major re- spect the company is seldom called upon to make good on the refund. This is especially true in the case of American Coffee, which offers new and attractive articles every month or so.

Truly, the advance premium, long the bane of the sales manager's exist- ence (when competitors sell from house to house and his product moves through retail outlets) seems to have met its match in a plan that offers everything the advance plan can offer and seems to be even more adaptable.

SALES MANAGEMENT

“Ne

Well, how do 1 look ?

se \

f ail,

Just as you should — like one of the

“beauty-ad" women in

K— That merciless mirror, Media Records, re-

a. flects THE CALL-BULLETIN thusly: TOILET

REQUISITE ADVERTISING ... more than / twice the volume carried by any other San Francisco daily newspaper! We'll be glad to introduce you to a lot of women you ought to know!

Represented nationally by PAUL BLOCK AND ASSOCIATES

_ CALL-BULLETIN

THE CALL-BULLETIN-GREATEST EVENING CIRCULATION IN NORTHERN CALIFORNIA

— =e

ror =

—

“Saat Tf it takes money to buy-THE CALL-BULLETIN can sel/ it—in volume!

. . . . ) ee Divisions of Probable 1937 Investments Question: From the standpoint of safety, return on your investment, ete, where in the following group would you place your money, or how. divide it over the group if you were not going to place it all in the same type? Pre- Life In- Common ferred Savings Trust Real

Per ees surance, Stock, Stock, Banks, Fund, Estate, Bonds, ercentage : “> of % of > of — of “ of % of © of

of Distribution People People People People People People People 1% to 24% of total funds. 14 7 1 10 2 5 4 25% © to 49% of totalfunds. 24 19 15 17 ! 19 16 50% to 99% of total funds. 24 7 2 5 2 21 9 100% of total funds..... 13 l ; l l 6 l DE ertkacwscausiekneks 25 66 79 67 9] 19 70

New by

MRCA ranks real estate sec-

Consumer

survey in

York and Sioux City ond, and common. stocks, savings deposits, bonds, pre- ferred stocks and trust funds

in that order.

General Publie Favors Insurance as Safest, Most Productive Investment

OW will the savings of 1937 be invested?

If a cross-section of New York and Sioux City is typi- cal, insurance men should find it a bonanza year. Only one person out of every four with money to invest will fail to take out some insurance (as- suming that life insurance salesmen do their part), and 38 people out of every 100 are inclined to put up to one-half

of their savings into this medium. Real estate and common stocks are favored by many, but various forms

of insurance policies are selected by

the majority Of the money they have for investment, people will put the following proportions of their funds into insurance:

14% will put up to one-quarter 24% will put up to one-half 24% will put up to three-quarters 13% will put all

25% will put none

The tabulation headed ‘‘Divisions of Probable 1937 Investments” gives the exact wording of the first question, and a breakdown of the answers for seven popular forms of investment.

In making the survey field workers of the Market Research Corporation of America, under the direction of Per- cival White and Pauline Arnold, went to 200 middle-class-and-above _resi- dents of Sioux City, Iowa, and its immediate environs, and to a similar number of New York business men in their offices. It would have been a fair assumption that great differences in opinion would be found among people in such diverse cities, but it did not turn out that way. So far as investments are concerned the resi- dents of the great metropolis and a

[312]

pe ey Baried #130 0002. >| “Ba Now He Ta Man Nosopy Ways

ts

soar my

PAY Ihe Uouars A.Montu For Lire Yo the Order of : , eS Ee ae oomeces ae dpi ationny —— Higa St ie

Depression—and a continual barrage of

such advertisements as this—made annui-

ties popular.

medium-sized middle western city feel much the same.

Following the first question (see table) the MRCA field workers asked this:

Do you think common stock, well selected, is a good investment today?

Compared to five years ago, is it a better investment, worse, or same— and why?

The answer to the first of the two questions above indicates that very few of the respondents had confidence in common stocks in 1932 (and also probably they didn’t have any money). Stocks have had a tremendous rise since their low in that year, but the returns show:

65% consider common stocks, well selected, a good investment to- day.

30% think common stocks are a poor investment medium. 5% haven't the foggiest idea.

When asked whether they were bet- ter, worse, or the same, the responses were:

58% 11% 18% 5% 8%

The answers to the “why?” question reveal decidedly interesting opinions. Those who think that common stocks are a better buy now offered the fol- lowing reasons:

better worse

same

don’t know no answer

Business is better—all business is on ie WII, ORs. ini kin ke cacccpes 60% Stocks are now fairly well stabilized 11%

They're going to increase in value.. 6% Securities Exchange Commission and other governmental operations cur- f°" GPR errr 6% Business faces a boom............ 4% Stock prices are going up......... 4% — facing a big increase in build- Sid eameb ee eu ARs de wie ide 2% won dividends are being paid..... 2% Inflation is coming............... 1% Fear has been overcome........... 1% Supplies are decreasing, demand in- RS Oe ore ee 1% The water has been squeezed out of NN Be errr 1% The best year in the nation’s history 1%

Those who believe that common stocks are poorer investments, or at least not any better than they were five yeats ago, offered these as their rea- sons:

Common stocks are always risky.... 30% Policies of the present Administra- tion make the future of private business uncertain ............. 18% Five years ago stock prices were near the bottom; today they are high.. 16% Based on today’s earnings prices are are 11%

SALES MANAGEMENT

FEBRUARY 15, 1937

IN LOS ANGELES

——definitely the second largest auto- mobile manufacturing area in America, approximately 200,000 motor cars and trucks will be produced this year.

The workers who make these cars will be paid close to $7,000,000 in wages,—not including unknown thousands more to affiliated industries here.

Each year sees Los Angeles stride forward as one of the Nation's great industrial centers.

The newspaper advertiser who must reach economically the greatest part of this fertile and “able-to-buy” market invariably selects the West's Largest Daily as his Number One paper in this area.

—-and that is the

LOS ANGELES EVENING

HERALD~#xpress

NATIONAL REPRESENTATIVES PAUL BLOCK AND ASSOCIATES

Surplus taxes make stocks poor buys 11% They may be all right for big-city people, but those in small towns and on farms can't follow the

market closely .....cceccccsices 9% Labor troubles make common stocks WO TU ses tke co keowmecde 5%

Respondents were asked:

Do you think life insurance a good investment today? Compared to fwe years ago is it better, worse, same, and why? What type would you buy?

The answer to the first question was a rousing affirmative for insurance; 88% said “‘yes’’ and only 12% ‘‘no”.

In answer to the second question, they said:

Same—44% No answer—2%

Reasons why they thought life in- surance better were:

Insurance always good............ 35% General conditions improved...... 13% Poor companies have gone under.. 13% Oe rere ee ae 10% All companies stronger........... 8% Legislation makes it safer......... 8% Responsibility proved ............ 4% SO SOE WI cocks ciiescweus 3% More conservative ..............-. 3% Peace and comfort in old age...... 3%

Annuities are the favored type of

insurance. The vote for types was: TE fo heacnnadwaiedaneietnees 37% ID, a oa awk tren. waleged aid 32% ee eee 22% ET OG) ns ahwieninniedeeeeaaeen 5% ee ee 4%

(EDITORS Al LARGE

| Trade Winds—What America’s Executives Are Thinking, Talking and Writing About

Patman Aftermath

The quaint American custom of granting such bounties as advertising allowances without even the pretense or expectation of an audit is a single but sufficient illustra- tion of the mysteries of net returns. As a matter of fact, I have found literally hun- dreds of business men who while actively disliking the law (Robinson-Patman) admit to some gratitude that somebody is making them find out what they are doing.

Edwin B. George, Econo- mist, Dun and Bradstreet

Man to Man Justice The improvement of American distribu- tive processes offers one of the broadest opportunities in American economic life today. Perhaps it will be possible by regu- lation for our progress to be swifter and less painful than it would be if we relied entirely upon a competitive struggle for sur- vival. But we must first conceive the efficient functioning of the distributive system as our available means. We must now sub- stitute for these broad considerations the effort to work out on the basis of cost ac- counting a minute justice between man and man. Corwin D. Edwards, Commit- tee on Industrial Analysis, American Marketing Association

Anticipating the Future

It doesn’t take an Einsteinian mind to realize that the continuance of the New Deal means a continued drive for a broader distribution of the national income with greater purchasing power for the masses, and the protection of consumers and busi- nesses from unfair practices. The fact is they offer the possibility for the continued de- velopment of sales volume with an increase in the consumption of goods and the crea- tion of profit. The tide has definitely turned in that direction. Anticipation, not con- sternation as to how your product or your organization will fit in these conditions, is the course to follow. Burrowing into the ground and hibernating may be a good way for a ground-hog to keep from adjusting himself to the changing seasons. But

[314]

ground-hog tactics seldom preserve market- ing Organizations. Malcolm J. Proudfoot, Research Geographer, Bureau of the Census

Relativity in Values

Consumers are beginning to look with new interest at the goods and services which business offers them for their money. They want to know more about these goods. They want to know what makes them use- ful, what makes them durable, that is to say, what gives them value as something to be used, not merely purchased. And they want to know the relative qualities of goods so that they may compare variations in use- fulness with differences in price. In short, they want to know how to get their money's worth.

D. E. Montgomery, Consumers’ Counsel, Agricultural Adjustment Administration

Warning to Bankers Probably the lowest point that sound mar- keting has ever touched in this country was just before and just after 1929. For several years before the crash, financiers were run- ning all kinds of business. To many of them, working hard for honest profits from the sale of merchandise or services looked like a grubby occupation for which low- paid employes could be hired. So much quicker, neater money could be made by buying and selling slips of paper represent- ing equities—stocks, bonds and certificates. Seemingly indifferent to social and com- mercial consequences, there was an evil minority among financiers who also seemed callous to their destruction of reputations for fine integrity built by generations of wiser men of money. Frank R. Coutant, Director of Marketing Research, Pedlar & Ryan

Independents Not So Active

It is commonly believed that “the small independent retailer’ is providing the im- petus behind anti-chain store taxation. A closer scrutiny reveals, however, that while there are naturally many independent mer- chants supporting such movements locally, the driving power behind anti-chain store

agitation and legislation is actually a group of middlemen and brokers. John P. Nichols, Assistant Managing Director, Institute of Distribution

Consumer Preferences

Every market study and every study for

a new selling campaign should include

product research. This should be done

either to learn the current acceptability of

the product or to learn any new selling fea-

tures in the product which will appeal to current consumer trends.

Ben Nash, In-

dustrial Designer

Editorial Independence

When the shouting and tumult have died down, when the pros and cons of advertis- ing have been exhausted, when the last word has been said to every one’s satisfac- tion—a voice unheard though none the less emphatic says: Forget the advertiser in the real publication of a business magazine.

William E. McFee, President, National

Industrial Advertisers Association

Trying to Be Fair One of the new ideas arising in the public mind is fair play for the average man. Unfair discrimination seems to be on its way out, with all the discriminatory rates, prices, discounts and services which have so long prevailed. Legislation reflects it, both state and Federal. Public sentiment is solidly behind it. The motive and the spirit of it is fine. Let’s hope that the methods used will be practical and not un- friendly. Much depends upon the good sense and the good faith, not merely of politicians, but of industry itself. John Benson, President, American Association of Advertising Agencies

- Why Fixed Prices?

As to what stores may do by way of closer cooperation, it seems to me that much could be accomplished for all con- cerned if stores would abandon the rather general practice of maintaining at all times the same fixed standard prices. It seems to me that maintenance of standard qualities is more important and you can’t do both in a shifting market.

Recently the buyer of one of America’s leading stores which for five years has bought large quantities of a stocking from us and sold it at 69c, informed us he would have to discontinue it if he could not con- tinue selling it at the same figure. I think if I ran that store I would continue to give my customers the quality they had come to expect from me and ask them to pay the necessaty few cents more instead of my seeking out an inferior number in order to

, maintain the established price.

Frederic A. Williams, Presi- dent, Cannon Mills, Ince.

Selective Selling Pays

My study of the advantages of the agency or selective plan of distribution leads me to the positive conclusion that this con- tinues to be the most economical and con- structive avenue of distribution for nation- ally advertised lines. In this connection, it it worthy of note that one of the oldest of our textile manufacturers, who adopted only in 1935 a selective plan of selling, shows that in the year just closed there were net profits made between a quarter of a million and $300,000 as against a loss of nearly a million and a half in 1935, when they were without the selective plan of distribution.

Eugene B. Sydnor, President, Wholesale Dry Goods Institute

SALES MANAGEMENT

ay

Ine eighteen consecutive months the circulation of The New York Times has moved steadily upward. January’s circulation—511,505 weekdays and 793,788 Sundays—was the highest for any January in The Times history. Thus The Times adds steadily to the

number of sales opportunities awaiting the

advertiser in New York’s basic market.

The New Work Gimes

: ‘ALL THE NEWS THAT’S FIT TO PRINT”

FEBRUARY 15, 1937 {315}

But How Can Life Begin at 40 When Employment Stops at 36?

An article in the January 1 issue, “Is This a Young Man’s

Age?” drew this spirited reply—a reply in which the writer

takes a vigorous affirmative.

BY

N ballad, song and story—as well as in moving pictures—the night- watchman has been an elderly man, a superannuated employe eking out his declining years in a job rather lightly weighted by somewhat perfunctory duties for which he draws a nominal wage. Of course, every once in a while this typical honest yeoman of the guard is whanged over the head by a gang of thieves, but for the most part he sits by the fire until it’s time to ring his clocks. That's over now, if a recent adver- tisement in the Help Wanted page of the New York Sunday Herald Tribune may be taken as evidence. It read, “Wanted, Night Watch- man, Must Be Under 40.”

35 Tycoons Prove No Rule

Take away Old Grimes, and bring on his son! For this is the day of Youth, unless all signs fail, and in spite of the conclusions reached by Mr. N. D. Farmer in a recent issue of this magazine.

A few weeks ago Mr. Farmer pro- duced the birth years and the salaries and the positions of some 35 men who were the presidents and chairmen of the board of many of our largest and most important corporations. Based on the fact that all of them were on the windward side of 50 he con- cluded that so far as these corpora- tions were concerned, it was not “a young man’s age,’ and that the oldsters were not being pushed out.

Now this conclusion is perfectly right and sound for these particular men, but not necessarily, if I may beg to differ, for these particular cor- porations.

I do not know what their individ- ual company policies may be with re- gard to the employment of men over the age of 40—either in hiring them as new employes, or in retaining them as old workers.

I believe, however, on the evidence of the want-ad pages of metropolitan

[316]

MALCOLM G. ROLLINS

newspapers and by a survey made among employment agencies, that many companies do not want to hire men over 35—men over 30 in some cases, nor do they wish to take on women over 30.

So while Mr. Jonas Apple, of the Apple Steel Co., to rig up a name, may be 61 years old, and have a salary of $150,000 a year, it may well be true that 100 of his lesser execu- tives—salesmen, superintendents and senior clerks—whose salaries aggre- gate that same amount, may all be under 40. Or, if they are over that magic line, may have their ears cocked for the “sound of running feet”— the feet of those younger men who must, to get up, stay close to the heels of their elders. So close, in fact, that some times youth steps on age.

Yet, if you sell soap and shoes and chewing gum, the ninety-and-nine subordinates refute the biblical adage, for they are more important to you

than the one Mr. Apple, whose ap- petite is shrinking, whose family is dispersed, and whose four or five cars can't eat as much gas and oil as the combined individual motors of his employes.

So any information that tends to show the comparative value in the market place of youth vs. age, must be highly interesting to a salesman.

As to the public recognition of this situation you need only refer to the speeches of President Roosevelt and of Harry Hopkins in the past few weeks. Both spoke with serious pur- pose when they called on American business to consider the plight of men over 40—the forgotten men of indus- try and commerce.

On January 17 the New York Re- publican State Committee recognized this same situation and proceeded to start to do something about it. In a statement given out by the chairman of the committee the following per- tinent sentences appeared:

“Hundreds of thousands of men and women in this state, who have reached the age of 40 years and are dependent on their labor for a livelihood, are today find- ing it increasingly difficult to secure em- ployment because of present laws and policies.

“Men and women who through years of experience have become trained in lines of work for which they are peculiarly

What Are the Upper Age Limits for Certain Jobs? Employers Give Agencies These Specifications

Under 20-25 25-30 30-35

MEN 20 yrs. years years years years years 45 yrs. Experienced

ES eee 4 28 19 3 1 0 1 Executives ....... 0 0 3 27 20 7 3 Salesmen ........ 0 2 7 27 4 2 0 Skilled Labor .... 1 2 ll 9 8 4 2 IE occ vanes 3 5 10 4 4 2 2 Tora Men 8 37 60 1 37 15 8 —235 % MEN 3.4% 15.7% 25.5% 29.9% 15.7% 64% 34% —100% WOMEN Secretaries

Oe ae 3 33 23 2 0 0 0 Typists-Clerks .... 16 34 4 0 0 0 0 Saleswomen ...... 4 15 18 8 1 0 0 BE: éncne se news 6 10 3 6 1 0 0 Tora, Women ... 29 92 48 16 $ 0 0 —187 % Women ........ 15.5% 49.2% 25.7% 8.6% 10% .. a —100% Tora, MEN AND

EE vevnewss 37 129 108 86 39 15 B —422 Yo MEN AND

WoMEN ....... 8.8% 30.6% 25.6%

35-40 40-45 Over

20.4% 9.2% 3.5% 19% —100%

SALES MANAGEMENT

«9

oe

Pre-Vue News about the

E 4 a ~ “

. 4 Be: » 4 % "ad a >

EXPOSITIO IN eA

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Eee *

a ‘4 4

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THROUGH his visit to the Inter-American Peace Confer- ence at Buenos Aires, President Roosevelt and officials of his Administration helped pave the way for closer “neighborliness” in the Western Hemisphere.

The GREATER TEXAS and PAN AMERICAN EXPOSITION is inspired by and will celebrate this milestone in Inter-American friendship and closer irade relations. Corporations doing a national and interna- tional business are vitally interested in this commemora- tion of our nation’s “good neighbor” policies. The list of exhibitors already assured reads like the Blue Book of American Business.

New in Theme—New in Design Although occupying the beautiful $25,000,000 Texas Centennial plant of 1936, with its 26 mammoth, permanent exhibit halls, the GREATER TEXAS and PAN AMERICAN EXPO. SITION will be entirely new in theme and attrac- tiveness. The Texas Centennial was proclaimed the “Most Beautiful of All World’s Fairs.” With many new buildings—designed in the Aztec and Latin- American influence—with new landscaping, new lighting effects, the 1937 Exposition will even sur- pass the beauty of the previous Exposition.

Expected attendance is conservatively estimated at seven millions. Last year’s figures indicated that

Industry Acclaims this International

Celebration of Peace and Good Will

about 80 per cent of the Texas Centennial visitors came from the Southwest—Texas, Oklahoma, Louisiana, Kansas, Missouri, New Mexico and Arkansas. This represents a goodly portion of Industry's best market—a major zone with acknowledged high purchasing power.

Again, as in 1936, more than a million people from the more distant sections—New York, Illinois, California, Washington, and other distant states—will also make the long trip to Texas; drawn by the glamour of a truly great Exposition. 1936 vacationists found new and unexpected vacation attractions in Texas. They returned home to spread the good news about Dallas, other Texas cities, the Southwest and Old Mexico.

With prosperity now a fact throughout the Americas, with an even more brilliant, more colorful Exposition for 1937—Dallas is destined to be the bright spot on the vacation and business map this year.

Vacationists throughout the Americas are invited to make their plans now to enjoy the entertaining and instructive GREATER TEXAS and PAN AMERICAN EXPOSITION, June 12 to Oct. 31.

Exhibitors are urged to arrange for their participation now. The Exposition offers an unusual opportunity to contact America’s prosperous vacationists and to help further the spirit of good will now prevalent in the Americas.

Exhibitors! Send for Literature!

Complete plans and illustrations of the new 1937 Exposition will be sent prospective exhibitors and their advertising agencies. Write on your company letterhead. Address Mr. Ray Foley, Assistant Director General, Exposition Administration Building, Dallas, Texas.

AMERICA’S ONLY INTERNATIONAL EXPOSITION FOR 1937

FEBRUARY 15, 1937

[317]

fitted, are finding themselves out of jobs as they reach the age of 40.

“This has caused increasing alarm not only among those directly affected, but also among their wives and children, who are dependent upon them. The prospect fac- ing such a family after the breadwinner has passed 40 and finds himself out of a job is dismal, indeed.

“Estimates by the Division of Vital Sta- tistics of the State Department of Health show that as of July 1, 1935, there were 3,548,639 men and women in this state between the ages of 40 and 65. They con- stitute more than a quarter of the entire

population of the State. “Relief officials estimate there are today 92.000 men and 79,000 women between

the ages of 40 and 65, who are on the home relief rolls of the state. A _ large proportion of them are able to work and anxious to earn their own livelihood.

“It is the position of the executive com- mittee of the Republican State Committee that a way should be found to correct such conditions.”

Obviously this situation is far too big for it to become a political foot- ball and it is to be hoped that Demo- crats will join with Republicans in trying to do something about opening the door of opportunity for men over 40.

Just how restricted are the oppor- tunities for men of that age or even younger may best be told by two facts.

If you will turn to the want-ad page, of your local Sunday paper, you will find a great diversity of vacant positions. In a recent Sunday issue of the New York Herald Tribune there were about 2,000 separate want ads, for men and for women.

Dice Are Loaded Against “Age”

They asked for secretaries who knew Spanish, advertising agency ac- count executives, mechanical en- gineers, bookkeepers, accountants, and scores of other people, all of whom were wanted for work where some experience would seem utterly neces- sary. Most of them imposed such an age requirement as “‘recent college grad- uate’’ or the like, and 250 of them stated a definite age limit. Let’s dis- card 21 immediately because they called for office boys, theatre ushers or applicants for similarly youthful jobs.

Of the remaining 229, 215 specifi- cally stated that the applicant must be under 35. In other words, 94% of the employers would not put on their payrolls new men and women beyond the age of 35.

Not satisfied that these figures were necessarily as formidable as_ they seemed, the second step was a survey conducted among the employment agencies of New York, Chicago, De- troit and Cleveland. One hundred and twenty-six got letters asking them at what upper age limits employers

[318]

“*Carat!’ dumbbell, not ‘carrot’ !’”’

would hire workers in certain specifi- cations. Forty-six replies were re- ceived (a very satisfactory percen- tage, obviously, and apparently reflect- ing the pertinence of the question).

The table shows how these employ- ment agencies answered.

It will be observed, of course, that experience does count in the case of executives, and it would be a madder world than it is if this were not so. However, even in that favored class, 4 out of 5 must be under 40, With salesmen the ratio is higher and the ages younger—S8 to 1 against a man even 35.

What happens to women over 35 is apparently nobody's business.

Another question asked of these em- ployment agencies was, ‘Do the com- panies for whom you act, place a maximum age limit on jobs in different classifications?”

And here the answer was just as overwhelmingly yes, for 90% of them answered in the affirmative—and those age limits were in all cases 40 or under.

So it seems that while life may still begin at forty, it is not likely to be a life of ease and enjoyment. It’s more likely to be a life of difficulty—of try- ing to find work at middle age in a world that wants young people.

“Through at forty’’ is just as sinister a phrase as it sounds. To the sales manager its great threat is not a per- sonal matter. The chances are that he is secure in his place, and that for another ten years at least he can con- tinue at the height of his powers, and in full command of his forces.

But the threat to him of slackening

employment through age limitation is a teal one, just the same. If his own factory and office is putting up the bars against men and women of that age, it is certain that other companies are doing the same. Inexorably the aver- age age of all employes is coming down—which means that the average age of buyers is coming down.

Since business, after all, is simply a matter of mutual back-scratching, the baker sells his goods to the candle- stick maker's employes, while his own workers buy his neighbor's candles.

Carried out ad infinitum your em- ployes under 40 must be many people's buyers under 40 as well. Being brought together somewhere are Social Security age records on 26,000,000 American workers—in all sorts of work, and earning up to $3,000 a year. The ages of these people, broken down as they presumably can be, will furnish the greatest exposition of buy- ing power yet disclosed, for it will show definitely how many of these em- ployes are above and how many are below 40—and then advertising and sales efforts will be forced to concen- trate on the bigger markets.

When Dr. Walter B. Pitkin wrote “Life Begins at Forty,” he started an avalanche of paraphraseology. The defense mechanism which he set up for people passing that date line re- sulted in happiness for thousands of people who found in Dr. Pitkin a comfort and a solace. It shouldn't however, act as an anodyne for sales managers—for the brutal facts are that people after 40 are beginning to slip away as buyers, with simpler wants, fewer desires, and too often sadly di- minished buying power. Despite all wishful thinking, this definitely is a young man’s age for the seller as well as the buyer.

G-E-Man: Ralph C. Cameron, recently in charge of department store sales of General Electric kitchen appliances, be- comes manager of the entire department store sales division of the appliance and merchandising department of G-E. Thus are added radios, laundry equipment, etc., to the already large list of products of which he supervises the sales.

SALES MANAGEMENT

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Contests are old stuff, but Old Gold, by unlimbering the heavy howitzer of vast prizes

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Above the

easily guessed cartoons that opened the campaign.

Advertising Campaigns

Old and New Products as Promoted in ey ad

Magazines,

QO. G.’s, Luckies’ Big Guns

Cigarette makers, and especially the Big Four, are the closest-mouthed people in business today. Their ad agents, fully aware of the giant sums which the 15% commissions total from such accounts, would commit hara-kiri if word of a forthcoming campaign trickled into print before the first ads broke. Nevertheless, gossip does get around.

Recently newshounds sniffed hun- grily outside the door of Lennen & Mitchell, agents for Lorillard’s Old Gold. There was a rumor that Old Gold would bust loose with a super- contest, one so huge that this lowest volume member of the Big Four would be dynamited several steps up the lad- der of sales. Not a word issued from the majestically-paneled L. & M. office.

But on January 31 This Week car- ried a double spread, and the next day virtually every daily of importance in the U. S. also, setting forth Old Gold’s behemoth contest. First prize, $100,- 000; second, $30,000; third and fourth, $10,000; fifth and sixth, $5,000; 1,000 prizes in all amounting to $200,000. As a smaller ad stated, the contest had been scheduled to start a week earlier, but the Ohio- Mississippi river flood caused a post- ponement.

The contest is of 15 weeks’ dura- tion, requiring contestants to submit

{320}

Radio, Billboards and Trade Papers

solutions of six cartoon puzzles each week, plus wrappers from three O. G. packages, or “reasonably accurate, hand-drawn facsimiles.” Few contest- ants will send in facsimiles, for they know that O. G. is interested in sales not art.

Six years ago Camels offered $50,- 000 in prizes, with $25,000 for top place. “More than a million” entries were received. Today contests have lost their pristine novelty; yet with two hundred grand for lure, O. G. may expect to do at least as well. On that basis, 60 cigarettes a week for 15 weeks would equal 900,000,000 O. G.’s. With a strong possibility of even more entries, the company’s esti- mated volume of seven billion ciga- rettes last year may be hoisted sharply.

Meantime, over at Lord & Thomas, agents for American Tobacco’s Lucky Strike, things were humming. After a lapse of several months, Luckies were returning to newspaper advertis- ing. Testimonials (a tried and true device) from singers, movie stars and others whose ‘“‘voices are their for- tunes’ will vouch for Luckies’ “throat protection.”

The theme will appear on the back covers of magazines, also; and will be personally expressed by the celebrities in “Your Hit Parade’ programs on NBC and CBS networks. According to Variety, amusement trade journal,

“as high as $5,000 will be paid picture stars for two and a half minute inter-

views” on the networks. Movie pro- ducers are willing for their stars to share this gravy, because the radio and newspaper ads will mention pictures about to be released—a fine boost for Hollywood's “epics.”

Nash Makes It Four

Back in 1932 Ford and General Motors’ Chevrolet had thé low-priced car market safely tucked away«in their vest pockets—or so they fondly be- lieved. There seemed little welcome for newcomer Plymouth, Chrysler’s bottom bracket auto, J. Stirling Get- chell, head of the agency bearing his name, had, however, an inspiration. “Look at All Three” he exclaimed, and plastered that slogan atop all Ply- mouth’s ads. The rest is history, in which the shrewdly worded slogan played a not inconspicuous part.

Today Ford, Chevrolet, and Ply- mouth (with the lion’s share of the low-priced market divided among them) are challenged by a fourth rival. “Get Out of the ‘All Three’ Class” urges Nash Motors, “this great big Nash costs just a few dollars more.” Subtle sneers at “‘all three small cars” are spotted through the Nash copy, appearing in 1,360 news- papers of 1,000 cities. The Nash CBS national hook-up commercials, too, contain the phrase.

Whether history will repeat .and “All Three” will become “Ajl Four” is veiled by the mists of the future. Nash and the J. Walter Thompson agency are working and praying for that happy result.

Seminole Concentrates

Seminole Paper Corp. has started its first national newspaper campaign for Seminole toilet tissue through agents Paris & Peart. Heretofore ads have been sporadic, mostly color pages in This Week and The American W eekly. Now weekly insertions are to hammer away without ceasing in 87 papers of 46 markets. In the Spring the list may be extended.

Theme song is on Seminole softness and reiteration of ‘1,000 sheets to a roll.”

Oxydol Doubles Up

Oxydol’s “Ma Perkins,’’ dramatic serial which celebrated its third anni- versary on NBC last December, and which is broadcast over the NBC-Red network in the afternoons, Monday through Friday, will also be heard over the NBC-Blue network in the morn-

(Continued on page 354)

SALES MANAGEMENT

+e

F 88%

§ 93%

39%

| 66%

F 632%

ment dwellers.

ABOUT DETROIT

for SALES a

of Detroit’s families own their % Ss f own homes .

ST 4

Sf

live in single houses or two to four family dwellings

of all homes have employed members

of all homes have telephones ~*

of all homes own automobiles

of all homes taking any week-

day newspaper get The Detroit News

take no other newspaper but The Detroit News

% All these statistics are taken from a recent survey made bv Ross Federal Research Corporation among the homes of Detroit.

munity, not an apartment house city, and The News covers 631%

We wish to point out only this fact—Detroit is a home com- 4% of home as well as apart-

The Detroit News

New York, THE HOME NEWSPAPER Chicago, I. A. KLEIN, Inc. J. E. LUTZ FEBRUARY 15, 1937

[321}

Retail Sales—1935, 1933, 1929

(In thousands of dollars All Retail Population Sales Range Year % Cities of 1935 $2,450,032 143 50,000 to 1933 1,873,249 14.1 100,000 1929 3,608,276 13.9 Cities of 1935 $14,698,561 85.7 100,000 or 1933 11,409,836 85.9 More 1929 22,276,627 86.1 Combined 1935 $17,148,593 100.0 All Cities 1933 13,283,085 100.0 50,000 or 1929 25.884,903 100.0 More

add 000)

Grocery Store Drug Store

Sales Sales % % $184,290 17.2 $98,077 14.8 403,622 17.1 84,723 14.3

601,337 17.3

$2,330,536 82.8 1,950,780 82.9 2,879,704 82.7

$2,814,826 100.0 2,354,402 100.0 3,481,041 100.0

127,639 14.3

$565,876 85.2 507,715 85.7 766,237 85.7

$663,953 100.0

592,438 100.0 893,876 100.0

This completes the picture (started in the February 1 issue ) of cities above 50,000

and their retail sales. It an- swers the question “where do people buy?” Each city is compared with its own past—1933 and 1929—and the arrangement by popula- tion groups permits quick and accurate comparisons between cities.

Your Biggest Markets— and How They Vary in Retail Sales

BY N. D. FARMER

HERE are the major retail

markets, and how much is

spent in them? If you sell

through the retail trade, the success of your company may depend upon your knowledge of the answers to these two vital questions. In the issue of February 1, SALES MANAGE- MENT published figures for all retail, grocery and drug store sales in 98 cities of 50,000 to 100,000 popula- tion, for the years 1929, 1933 and 1935. The survey continues in this issue with corresponding figures for 93 cities of 100,000 or more. For comparative purposes, the grouping of cities is based on the Census of Popu- lation for 1930.

A natural inquiry is, why consider the population of 1930 with sales figures for 1933 and 1935. The an- swer is that this has not been done, and it is not suggested. Sales figures, or any other data, are of value only when comparable. When comparing cities, comparisons should be made be- tween those that have something in common, such as size, for instance, ex- pressed in terms of population. Mar- ket comparisons may be made that are full of meaning through bringing to- gether cities of about the same size. The basic consideration is the location and extent of the markets in terms of sales, not population, which is used only as a means to an end.

{322}

Population Range Year Cites of 1929 50,000 to 1933 100,000 1935 Cities of 1929 100,000 or 1933 More 1935 Combined 1929 All Cities 1933 50,000 or 1935 More

Retail Volume Percentages

All Retail Grocery Drug Store Sales Store Sales Sales % 0 % 100.0 100.0 100.0 51.9 67.1 66.4 67.9 80.5 16.8 100.0 100.0 100.0 51.2 67.7 66.3 66.0 80.9 73.9 100.0 100.0 100.0 51.3 67.3 66.3 66.2 80.9 74.3

If you desire revised population fig- ures, you can refer to the Census Bu- reau estimate of July 1, 1936, for all the states, or the latest estimate dated July 1, 1933, covering all cities of 10,000 or more. You may choose to develop your own curve of increase, based on the trend reflected in prior years. Bear in mind, however, that population is in a constant state of flux; and that, with increasing indus- trial activity, changes have always oc- curred in its distribution.

The worth of population figures in determining market facts is frequently Open to question, no matter how cor- rect or current, largely because other factors may be of greater importance, dependent upon the commodity being marketed.

A summary is given in this article which shows all retail trade, grocery and drug store sales (the two latter

are included in the former, of course) divided between the cities of 50,000 to 100,000 population, and those over 100,000. Despite the highly fluctuating sales in the three different years, which varied widely in charac- ter, the corresponding percentage of sales varies relatively little. Considering 1929 as 100% for purposes of illustration, the sales fig- ures for 1933 and 1935 indicate a quite comparable degree of recovery in the entire group of 191 cities. Increasing sales is not a matter of accident. It calls for the discriminate use of every available sales tool, and one of the more powerful is a knowl- edge of where markets are. If you know the number of dollars folks are spending, and where they are being spent, you are in a position to select the more favorable places for your promotion and sales attack. In a di-

SALES MANAGEMENT

®| 6

®| 6

Retail Sales by City Population (groups

(Cities over 100,000 population.

Sales figures in thousands of dollars—add 000.)

Cities of 100,000 or More Population

Lowell, Mass. Gary, Ind. Tampa, Fla... Duluth, Minn.. Utica, N. Y..

Evansville, Ind. Lynn, Mass...

El Paso, Texas... Somerville, Mass. South Bend, Ind....

Canton, Ohio. Peoria, Wil....... Knoxville, Tenn.. Wilmington, Del... Tacoma, Wash...

Miami, Fla.... Wichita, Kans... Reading, Pa...... New Bedford, Mass. Cambridge, Mass.

Elizabeth, N. J... Fort Wayne, Ind. Fall River, Mass. Spokane, Wash. Erie, Pa.....

Camden, N. J... ; Chattanooga, Tenn. Kansas City, Kans. Trenton, N. J... Albany, N. Y....

Jacksonville, Fla.. Norfolk, Va...... Yonkers, N. Y..... Paterson, N. J... Salt Lake City, Utah

Tulsa, Okla. ; Long Beach, Cal... Des Moines, lowa.. Scranton, Pa. : Bridgeport, Conn.

San Diego, Cal... .. Springfield, Mass... Nashville, Tenn... Flint, Mich........ New Haven, Conn...

Fort Worth, Texas ...

Hartford, Conn........ Grand Rapids, Mich.. . Youngstown, Ohio... .. Richmond, Va.........

Oklahoma City, Okla....

Dayton, Ohio. . . Syracuse, N. Y..

Omaha, Nebr....... ;

San Antonio, Texas. ....

Providence, R. |...... Memphis, Tenn.....

PR iv accnscess Birmingham, Ala... ...

Dallas, Texas.......... Atlanta, Ga.......... j St. Paul, Minn......... Oakland, Cal..........

Denver, Colo........

Columbus, Ohio.......

Toledo, Ohio..... : Houston, Texas... . Portland, Ore...... Louisville, Ky.......

NA—Data not available.

|

1930 er Po ulation

1935

100,234 $30,962 100,426 29,277 101,161 | 34,764 101,463 | 41,073 101,740 | 41,151 102,249 30,510 102,320 34,615 102,421 31,896

103,908 22,543 |

| 104,193 36,214

| |

104,906 39,802 | 104,969 46,816 |

..| 105,802 41,730 |

| 106,597 48,609 | 106,817 39,345 | 110,637 75,326 | 111,110 49,464. | 111,171 48,843 112,597 35,197 | 113,643 39,111 | 114,589 42,911 114,946 42,668 115,274 31,271 115,514 58,403 115,967 38,051 118,700 38,705 119,798 44,065 121,857 27,782 123,356 | «48,825 | 127,412 79,742 |

|

129,549 | 50,745 | 129,710 50,120 | 134,646 | 39,865 | 138,513 | 54,596 | 140,267 | 59,220 | 141,258 «| «(56,019 | 142,032 63,181 | 142,559 68,801 | 143,433 54,993 |

146,716 57,030 | 147,995 75,549 | 149,900 71,557 153,866 74,561 156,492 58,303 | 162,655 71,638 | 163,447 64,503 | 164,072 88,639 | 168,592 59,784 | 170,002 62,883 182,929 | 79,837 185,389 | 72,308 195,311 | 71,908 200,982 | 80,483 209,326 | 81,384 214,006 | 90,675

| 231,542 78,744

| 252,981 113,392

| 253,143 101,915

| 255,040 95,899

| 259,678 73,764 260,475 | 123,550 270,366 136,842 271,606 137,155 284,063 | 141,781 287,861 127,497 290,564 118,274 | 290,718 112,550 292,352 113,715 301,815 147,413 307,745 100,702

NC —Data not complete.

$25,621 17,264 26,725 28,266 27,667

22,559 31,824 21,346 19,699 25,249

28,137 34,699 27,404 37,376 28,950

44,940 36,894 36,741 30,230 26,135

33,355 31,299 28,624 38,375 27,813

32,689 32,152 19,686 37,805 60,650

37,767 39,228 32,057 48,179 42,109

44,690 41,676 55,023 41,853 44,337

53,917 58,010 50,560 37,094 55,467

43,090 68,944 45,481 40,765 65,982

53,492 54,597 57,915 64,722 73,903

60,618 85,820 69,077 70,445 55,914

88,512 94,484 101,323 103,904 106,553

93,253 76,595 98,392 105,865 81,229

| |

$44,650 48 246 48,706 55,851 56,978

47,634 51,714 54,993 30,200 67,949

63,991 70,345 55,027 69,245 61,745

72,804 79,741 72,790 51,758 54,904

60,156 69,626 45,997 74,889 59,033

54,320 58,048 40,517 75,061 102,257

65,910 67,087 60,834 85,026 89,427

91,654 78,252 89,665 77,772 79,410

94,772 107,587 90,024 93,444 113,880

99,859 128,802 114,532

96,875 104,043

118,614 109,101 118,507 136,592 118,184

120,259 173,489 151,235 140,469 129,369

178,927 180,565 170,733 201 ,637 194,163

170,930 180,023 184,680 208,601 152,850

11,175

10,092 8,768 8,288 8,746 9,859

9,928 10,472 11,783 11,319 12,062

12,526 14,047 13,969

9,822 12,588

8,953 16,425 12,043 12,670 14,044

11,797 16,756 15,877 15,263 18,020

13,518 20,520 18,255 16,478 14,161

20,166 21,337 20,399 23,945 21,499

21,005 20,356

|

11,092

8,851 8,072 6,407 8,001 7,563

8,546 6,431 9,035 9,084 10,603

9,532 12,020 9,834 8,099 10,764

7,838 12,911 9,297 10,089 12,220

9,511 11,209 12,102 12,173 14,445

11,190 17,597 13,536 14,015 10,625

15,184 16,847 16,864 18,539 19,369

18,648 15,926

| |

DRUG STORE SALES

1929 1935 | 1933 1929 | $8,486 $939 | $926 $1,283 10,392 1,136 | 768 1,679 8,774 1,534 | 1,289 2,125 11,809 1,279 | 1,020 1,419 8,913 1,233 | 862 1,645 | 9,465 1,368 | 1,179 1,541 12,667 1,336 1,285 | 1,682 8,634 1,451 1,069 | 2,041 9,052 1,042 | 802 | 1,387 9,257 1,441 | 1,107 | 2,074 9,425 1,349 | 1,198 1,799 10,791 1,604 | = 1,283 2,718 10,110 1,816 | 1,430 2,093 11,711 1,477 | ~—- 1,364 1,757 8,502 1,221 | 915 1,780 12,002 3,977 | 2,616 3,186 11,542 2,398 2,759 3,376 10,306 1,493 1,244 1,769 11,701 1,576 | 1,437 2,237 12,308 1,522 | 1,493 1,952 8,613 1,222 | = 1,044 1,553 10,817 1,656 | 1,537 2,925 11,341 823 970 1,577 9,114 | 1,787 1,596 2,075 8,334 | 976 923 | 1,623 | | 9,685 | 1,239 1081 | 1,231 5,612NC| _—-'1,752 1,378 2,385 10,445 1,908 1,769 | 2,928 12,609 | 1,810 1,305 | 2,089 11,629 2,151 2,285 3,334 12,002 | 2,939 2,212 3,458 9,309 | 2,290 2,163 3,006 10,934 | 1,209 1,038 1,975 9,957 1,378 1,601 1,748 10,305 | 2,156 1,910 2,987 | 13,464 | 3,095 2,767 4,396 11,310 3,258 | 2,556 | 4,228 12,922 3,284 | 3,288 3,729 13,092 1,491 | 1,283 2,016 14,671 1,779 1,560 2,375 11,752 3,131 2,483 3,577 18,133 2,377 2,055 2,884 13,233 2,934 2,339 3,547 16,411 2,392 1,391 3,230 15,399 2,329 2,001 2,995 15,440 2,798 2.572 5,383 19,754 3,292 2,415 3,453 16,029 2,643 | 2,127 4,062 17,250 1,633 1,357 2,737 15,969 3,582 2,942 3,871 15,174 4,398 3,910 5,766 18,479 1,905 1,636 2,481 18,867 3,655 2,871 4,492 18,850 2,644 | 2,197 3,832 20,704 3,609 3,493 4,827 16,870 3,672 | 3,259 5,620 28,138 3,913 3,371 5,755 24,578 4,498 | 3,466 6,400 24,405 3,648 3,159 5,024 21,287 3,533 | 2,588 5,690 26,538 7,088 | 3,966 8,728 26,676 6,133 | 4,764 8,075 24,719 4,165 | 3,657 NA 35,727 3,856 3,321 5,120 25,799 8,268 6,804 7,980 28,882 5,104 4,715 6,533 29,383 4,299 3,515 5,919 30,217 5,301 5,026 7,698 27,661 | 8,151 6,447 6,402 31,022 | 5,624 4946 | (7,237 |

(Continued on page 324)

FEBRUARY 15, 1937

[323]

Retail Sales by C

(Cities over 100,000 population.

iity Population Groups

(Continued from page 323)

Sales figures in thousands of dollars—add 000.)

ALL RETAIL SALES GROCERY STORE SALES DRUG STORE SALES Cities of 100,000 or 1930 ee ee — ee More Population Population | | 1935 1933 | 1929 | 1935 1933 | = 1929 1935 1933 1929 ee | we ‘ = Se aa 4 Jersey City, N. J. 316,715 $76,954 | $61,730 | $121,085 | $17,543 | $14,804 | $20,527 $2,744 | $2,263 $3,857 Rochester, N. Y. 328,132 132,420 | 106,321 | 206,492 | 26,905 | 23,526 | 27,768 | 3,887 3.319 | 5,650 Indianapolis, Ind. 364,161 | 139,084 | 104,177 | 220,628 25,620 21,496 | 36,149 | 9,433 7,239 11,957 Seattle, Wash. 365,583 | 163,185 | 129,096 | 252,169 | 22,880 20,080 30,851 6,326 6,538 9,087 Kansas City, Mo... . 399,746 209,399 | 163,680 | 349,918 | 27,107 | 26,829 39,710 15,961 15,082 17,307 } | Newark, N. J. 442,337 | 197,527 | 188,167 | 322,778 | 23,453 | 24,331 29,964 3,601 5,408 7,028 Cincinnati, Ohio............. 451,160 | 196,867 | 160,488 | 291.083 | 32,643 29,009 42,664 7,710 7,545 9,980 New Orleans, La... 458,762 123,524 | 103,386 | 162,948 | 21,858 21,206 25,060 6,908 6,281 7,655 Minneapolis, Minn. 464,356 | (220,834 | 168,636 | 298,577 | 34,448 25,869 36,832 8,573 6,843 9,282 Washington, D.C... 486,869 | 330,813 | 241,515 | 336,262 57,222 48,395 52,703 19,255 15,494 16,414 Buffalo, N. Y... 573,076 205,306 | 162,526 | 342,855 | 34,938 31,127 | 46,043 6,250 6,136 8,906 Milwaukee, Wisc. 578,249 236,941 | 178,740 | 353,894 | 39,398 29,353 46,214 8,630 8,175 12,347 San Francisco, Cal. 634,394 298,371 | 254,075 | 474,683 | 40,379 32,523 51,576 10,559 11,342 12,966 Pittsburgh, Pa. 669,817 | 266,551 195,681 | 441,143 | 48,648 40,691 64,134 9,008 8,191 15,232 Boston, Mass. 781,188 | 439,121 | 374,805 | 672,760 60,310 53,506 74,417 12,865 12,667 16,840 | Baltimore, Md. 804,874 301,137 | 251,461 | 406,352 | 48,471 47,943 57,133 12,225 10,479 | 13,112 St. Louis, Mo. 821,960 316,398 | 252,813 | 471,950 | 61,388 | 50,332 76,271 13,195 | 12,196 | 18,394 Cleveland, Ohio 900,429 355,210 | 275,935 | 534,061 56,026 | 47,243 66,225 12,974 11,886 | 17,348 Los Angoles, Cal. 1,238,048 593,902 | 453,340 | 875,775 81,702 66,174 92,806 26,204 25,148 38,368 Detroit, Mich. 1,568,662 543,690 369,936 | 890,189 79,421 72,776 | 139,263 20,529 19,841 | 34,333 | | | Philadelphia, Pa. 1,950,961 656,744 | 514,456 | 1,083,914 | 105,689 81,716 | 125,448 20,274 19,198 | 33,082 Chicago, Itt. 3,376,438 «1,215,706 | 990,084 2,127,520 | 155,544 | 140,998 | 218,407 55,709 50,034 80,409 New York, N. Y. 6,930,446 2,847,332 | 2,245,801 | 4,272,633 | 379,141 308,640 | 404,181 83,086 | 77,305 | 125,884 - = x : a ~~ = | NA—Data not available. NC —Data not complete. rect attack, it may pay to use a rifle ent customers, the other to get mew im many quarters. Has this been

rather than a shotgun, in developing the sound idea of selective selling.

Green pastures flowing with milk and money may be waiting for your product if you know where they are But that’s the rub—knowing where the green pastures are. So many sales managers plan sales attacks without knowing, and cannot tell whether the volume that may—note the word may —be obtained will justify the sales expense and time involved in terms of profit to the company.

A sales executive recently inquired

“How can I increase my _ sales?” The answer, “Go where your markets are’ caused him to reply, “That's

simple!” Yes, it was simple, but many salesmen are sent out with a blessing and a pat on the back and are expected to bring home the bacon, when the sales manager should know there is not even salt pork in the ter- ritory.

One of the ways to make sales ef- fort more effective in terms of profit, is to make it more direct, and to con- centrate the attack. Aim for the bull’s eye! Use the spotlight more, the floodlight less!

There is universal interest in in- creasing sales, and millions of words have been printed and spoken on the subject. After all, there are two ways to do it! One is to sell more to pres-

[324]

customers. A knowledge of market facts will indicate where to go, and where not

to go, for business.

tant.

Both are impor- They point the way to increas-

ing sales, and decreasing sales costs. They may be used in developing quotas for salesmen and district offices, and thus used as a yardstick in meas- uring results obtained in relation to

sales dollars spent.

sales promotion.

A Practical Application

They are vital in

From the large tabulation which is a part of this article, select a group of cities of about 100,000 population.

1930 1935—All City Population Retail Sales Knoxville, Tenn.... 105,802 $41,730,000 Wilmington, Del... 106,597 48,609,000 Tacoma, Wash..... 106,817 39,345,000 Miami, Florida.... 110,637 75,326,000 Wichita, Kansas... 111,110 49,464,000

Miami was out in front in 1935.

It had a larger retail trade that year than any city in the country in size up to Albany, N. Y., with a popula- tion of 127,412, and retail sales of $79,742,000. The next larger city which exceeded Miami in retail trade was Hartford, Conn., with a popula- tion of 164,072. Business in Florida has long been reported as improving

your experience in Miami, and other cities? Check up, and see if your volume was satisfactory to you.

Note the leadership in the different groups. Wilmington, for example, had a large retail and grocery trade, but Knoxville led in drug store sales in 1935. Duluth, Utica, Peoria, Al- bany, Long Beach, Des Moines, Hart- ford, Richmond, Omaha, Providence, Memphis and others are worthy of no- tice. Among the larger cities, note the position of Boston.

Refer this time to a group of larger cities.

1930 1935—All

City Population Retail Sales Cincinnati ...... 451,160 $196,867,000 New Orleans.... 458,762 123,524,000 Minneapolis 464,356 220,834,000 Washington, D. C. 486,869 330,813,000 EN. ib wh ab ss 573,076 205,396,000 Washington stands out in _ this

group, due to the expansion of gov- ernmental activities with the resulting increase in population. Business has been good there for a long time—in fact, the depression probably had less effect in Washington than in any of the larger cities. Retail trade there in 1935 was greater than in any of the larger cities of Milwaukee, San Fran- cisco, Pittsburgh, Baltimore, or St. Louis, despite the much larger popu- (Continued on page 385)

SALES MANAGEMENT

THE BALTIMORE NEWS-POST

45 | Business Opportunities

68 | Typewr

Nationally —

FEBRUARY 15, 1937

YOU CAN reach 84% TYPEV of Baltimore’s A. B.C. City Radi

Zone with this one evening newspaper. Total daily Free ') circulation 204,735 —(six ANY months ending 9/30/36.)

tion,

mo

Average net paid circ ending September 30

st c “ X « ~ I g | B .

GARAGE — Dealership, Pa & Stone building 50x100 feet. Splendid loca- — main boulevard, nine

Baltimore. Lifetime opr.” :"°

ulation of the Sunda » 1936—230,239: the

service

miles

y American for Six months largest in all the South.

station. ity

from | ==

"ws 1837 oht rr

[325]

1. On November 30th, LIFE said, “But a second issue sell-out begins to look significant” 550,000 ovnt order) : ‘LIFE: Se”? {er w 480,000 (Paid circulation) ®| @ 460,000 (Paid circulation) 415,000 (Paid circulation) 380,000 (Paid circulation)

-

[326] SALES MANAGEMENT

750,000

(Print order)

700,000

(Print order)

675,000

(Print order)

650,000

(Print order)

600,000

(Print order)

z: rr . . = 2. Now, on February 1, there have been

10 issues ...10 sell-outs ... each bigger than the last...and LIFE can only ask:

“What does that begin to look like?”

3. (Some sort of natural phenomenon?)

ADVERTISING OFFICES--135 EAST 42"> STREET, NEW YORK CITY

FEBRUARY 15, 1937 {327}

@ Where Do Retail Prospects Originate?

THE BANKER

Once upon a time prospects for many nationally advertised products were

considered as limited to the so-called “carriage trade.” But price reductions,

time payments and an improved American standard of living have leveled

the former barriers of high income and social status

@ Voday no dealer knows who will be his next cus- tomer. It may be the banker or his butcher, the lady of fashion or her laundress.

The only real bar to factory sales is the distance

between dealer and consumer. Merehandising has advanced beyond selling the dealer to the job of helping the dealer sell.

Retail selling requires localized advertising— sales promotion in the locality of prospect and dealer. And that means newspaper advertising—the mainstay of

THE BUTCHER

retailer and salesmanager.

Localized advertising can be bought at low cost in the Chicago Tribune. The rates per line per hundred thousand circulation are among the lowest in_ the

publishing business.

@ As Chicago's first newspaper, the Chicago Tribune gives more coverage of today’s prospects in this market mass and class—than any other medium.

The Tribune not only reaches the cream of metro- politan Chicago but practically all of your prospects in Chicago and suburbs. It sells more merchandise for retailers than any other Chicago newspaper. It starts the buying action that brings customers into the open and keeps retailers in business.

To get maximum effect out of vour advertising, con- centrate it in the communities in which vour dealers operate. Put it in the medium that all their prospects read. In Chicago, you can get greatest return at lowest cost by advertising in the Chicago Tribune.

r32s

THE SALESMANAGER’'S MEDIUM

CHICAGO TRIBUNE

THE WORLD'S GREATEST NEWSPAPER Tribune Tower, Chicago

5-167 General Motors Bldg., Detroit 220 E. 42nd sSt.. New York

820 Kohl Bldg., San Francisco

SALES MANAGEMENT

ae & 3 ; . } ' \ | | @

24

22

Everybody knows Life Savers.

.. the candy mint with the hole. Everybody sees them every- where .

. . largely because Edward J. Noble, in his years at the head of Life Savers, Inc., has made an art of open-top counter displays and a shrewd science of getting them put in exactly the right spots. “A difference of 36 inches can drop our sales 50% in some places,” he says. So his 200 salesmen are trained in the art too. This vigorous chairman-of-the-board began developing his art and science soon after he—an advertising salesman—and J. Roy Allen bought “Crane’s Peppermint Life Savers’—unmerchandise and unsung but with the

now-famous hole—for $1,000 in 1913. He helped run the business up to $25,000,000!

At 17 he left Gouverneur, N. Y., to fire a boiler at Pueblo for the Colorado Fuel & Iron Co. It was too tough for a kid. The next month he sold accident policies in the plant; “made” $120, collected only $4.20! Since college days Noble collections have been better. Example: He turned a $250,000 group of the Thousand Islands into a million-dollar real estate develop- ment. In Summer, E. J. Noble—always in a rush—flies between his Thousand Islands place and his plant near New York. He looks like Walter Huston, but he’s no actor. He’s an advertising-minded merchandiser. Life Savers prove it.

se ee es ae

~ . te "“~ SS See

The most entertaining part of that $805,620 Jell‘’O spent on last year’s advertising went to Jack Benny, radio editors’ choice for America’s No. 1 comedian on America’s No. 1 radio program. Since October, 1935, Jack Benny has been talking up Jell-O sales to the biggest unseen audience on record. For four years he has been radio’s top comedian; for three, the Jell-O program has been radio’s top program.

Talking and making people laugh no matter what he says. is Jack Benny's business. As a mid-western youth he thought he could get what he wanted by playing a violin for it, but an unremunerative attempt to raise funds through musical appeal at a seaman’s benefit during the World War taught Benny that he would have to ask for what he got. So he

folded up his fiddle, relegated it to a mute silence under his arm, and started wise-cracking his way to fame. And he gets a bit more than laughs for his talking. He even got a marital

team-up with another talker. Mary Livingston, who furnishes her share of the laughs to Benny programs.

Primarily a radio entertainer, with four sponsors to his credit—Canada Dry, Chevrolet, General Tire. and now Jell-O—Benny has put his verbal wit across both on stage and screen. He is now waiting for television, but not biding his time about it.

+ PA

SSRIS

The man behind today’s success of the novelty soap industry ... originator of amusing soap figures used in advertising Ivory Snow ... creator of many o the Avenue’s smart mannequins . . . Lester Gaba not yet 30, has carved his way to fame through soap Seven years ago Gaba, originally from Hannibal Missouri, came East with an idea: A “soapy circus’ for children. Three days after the crash of 1929 he landed in New York, sold his little soap animals i a gaily painted wagon even to depression-struc shoppers, and started a business that has developed into an industry.

His host of juvenile friends, comparable to those o another Hannibalian, Mark Twain, is paralleled only by his adult admirers. For them Gaba designs man nequins, from miniature soap originals—real arti ficial people that sell clothes right off their owrx backs in the “best” stores; his 22-inch dolls tha parade du Pont Acele yarn; his novelty soap fo adults; his clever fabric patterns conceived in soag and executed in textiles and wallpapers.

His feet were his fortune. Flat feet at that! Robert E. Lee, a busted broker out of LaSalle Street, Chicago, was pounding the pavements back in depression days—and how his feet hurt! One day he met a man peddling a new kind of shoe. Mr. Lee bought a pair. Falling in love with them, he went up to Belgium, Wis., where they were made by the Allen Edmonds Shoe Co., and applied for a job. Selling from door to door, he invented a “dem- Qt onstration.” It consisted of bending, twisting and jumping on his shoes—and showing how ¢O they spring back into shape.

a Today he’s vice-president and sales manager of the company. Instead of selling door to & door, office to office, the Osteo-Path-Ik shoe now is in leading stores from the Pacific to the Atlantic and from Hudson's Bay to the Gulf. Six manufacturers in the United States and Canada make Osteo-Path-Ik under license but the method is called Osteo-Nailess Shoe

Construction. A national advertising campaign is coming up.

Mr. Lee has three hobbies: Golf, but no time for it; fishing, but no time for it; playing with Sed his three kids, but this is limited to his occasional visits home. He has one fixed belief: The

mousetrap legend is a fake. His argument: The Osteo-Path-Ik shoe had been getting nowhere for years until his sales demonstration was perfected. That did the work.

Even though Katherine Fisher left McGill and Columbia classrooms to direct Good House- keeping Institute, she is still teaching. She has over 2,000,000 students—readers of Good Housekeeping—women in their homes who are looking to Miss Fisher and her staff for

information about their business, the greatest in the world—housekeeping.

Since her Canadian farm childhood she has watched many household crafts depart from the home and seen “mechanical maids” taking the place of the strong right arm. In 13 years of directing Good Housekeeping’s Institute—-its staff of thirty-five investigating house- keeping problems and testing products offered for the Institute’s seal of approval... testing by the same high standards advertising offered to Good Housekeeping—she has helped emancipate women from drudgery. In her work she is actually selling standards

of living. That, she believes, should be the essence of merchandise salesmanship, too.

Devoted as Miss Fisher is to her work, she takes time to be an unusually broad and

versatile reader, to go on long tramps, far away from the highways; and she adores picnics. In her office lined with books—books on home furnishing, cooking, economics—

within easy reach is a copy of “Alice in Wonderland.”

Alva R. Simmons, 1936 top-hole salesman for International Business Machines Corporation, works on this principle: Never try to dazzle a prospect. Know his problem. Make sure your product can help him solve it. Then you can reach the top man—and his whole organi- zation stays sold. The principle works. Last year Simmons topped all IBM men by making 559% of his personal quota. His Baltimore office for the Time Recorder Division made 317%. So he automatically became President Simmons of the IBM Hundred Per Cent Club for this year and banged the gavel for the Club’s convention of 1,300 men in New York late in

REWD January, receiving laurels and eclat. He endured it—this quiet, steel-eyed thinker with the

slow smile—but he could get along without so much spotlight stuff.

He began to do his own thinking in school; gave up engineering as too crowded; pedagogy because there was “too much baloney” in the education classes; decided on salesman- ship ... earning nearly all his way through William and Mary selling space in The Flat Hat, managing football programs and punching doorbells Summers for Pictorial Review. Out of college in 1927 and into the IBM sales training school where most of the boys were rushing into the roseate Tabulating Machines Division, he turned to time recorders on straight commission, where a man could write his own ticket. He has been writing his ever since.

Born in New York's East Side, out of school at 11, little black-eyed Joseph Martinson now sells people of good taste America’s highest-priced coffee. After a lifetime in coffee (starting his own business at 16) he maintains high quality by his own expert testing (he rates as one of the six best tasters in the country) and by a buying skill so highly developed in 40 years of it that “they say” he can name the hillside any

coffee comes from by looking at a bean.

In his own office in his own seven-story twin building

in the shadow of Wall Street he tests coffee samples, judging flavor by the smell, body by the taste, and so on, so that the Martinson blend shall be right. The travail of depression did not force him to lower qual- ity. His price remains the highest; proving people will pay for quality if they know it's there. To tell them, he distributed coffee in Rolls Royces until this year. His advertising is distinguished. But coffee, not phrases, does it best. So he gave away 32,000 full pound samples last year; will make it 100,000 in 1937. He lives in Cedarhurst, Long Island, now. He works from 8:30 to 6:00 five days a week, safeguarding that high quality, with no hobbies, no sports, little on his mind but coffee, and drinking more of it, he thinks, than anybody else in America.

WS NNR ene ON RE AB CUE

nisl

Not “two-faced” but many-faced is Margaret Horan. That's one reason this dark-haired,

dark-eyed., graceful New York Irish beauty is close to the national top as a photographers’

model helping advertisers sell merchandise. You may see her four times in a single maga-

zine as an Ipana girl “lovely—until she smiles,” and as a model for Fisher Body, Camel, s and Allen-A., without realizing she is the same girl. Varying expression, facial make-up AN

and coiffeur do it. Her versatility helps her earn $10 to $27.50 instead of the standard $5 Mw D ‘or an hour-and-a-half. Her best week: $350 from General Electric radio. Her best year: $5,000. cE Margaret Horan’s work is pretty trying, posing furs in August; making “Summer” shots in & AN

February. She has fainted from exhaustion holding poses for hours under studio lamp heat. Lejaren 4G Hiller scared her to tears last Fall making fright shots.

Aiter high school she started as a store stock clerk, then modeled clothes, learning how to make things appeal to customers. That taught her to get into character with products she poses for now. She knows she can’t model forever, so she studies dress design and merchandising to start her own shop some day.

-

jy, es tio million babies are born every year. Most of these are their mother’s first children, some the second, third, and so forth. The chart (below) plots the first, second, third and fourth children by ages of mothers. As a measure for showing the starting point of the family market, this chart fairly shouts “buying begins in the twen- ties.”

o

—s

ps PE Seg Se see Ss,

Markets of people move in, on and out of the buying picture as the years go by. Magazines, like mighty combs, select their audiences at various points along the march. MODERN MAGAZINES, by careful editing, corral a concentrated unit of young women under 30 who are in their first years of buying experience. With years of purchasing ahead, these young women constitute the primary market for advertised merchandise. They are your je Customers, anxious to replace the older customers you lose from year to year... an unsaturated market for your product.

AGE DISTRIBUTION OF MOTHERS AT BIRTH OF CHILDREN

15 35 40 45

. ce . THE PRIMARY MARKET WHERE BUYING BEGINS © SECONDARY MARKET WHERE BUYING DECREASES CEGEND =~ FIRST CHILD mms SECOND CHILD sommesmm THIRD CHILD sevmmmese FOURTH CHILD ecemmmens

~ MODERN MAGAZINES

FEBRUARY 15, 1937

“Well, what diga know - CHESTERFIELD, too, is buying “THis WEEK’ and getting BOTH”

ial Dial

Here’s the combination that does the job?!

Want to open up more markets, more outlets, more retail sales? 8 4 Try a campaign that sells both the consumer and the trade. That covers the best markets and penetrates locally into each. In short, try THIS WEER, the one and only medium where you get BOTH—

* A FIRST-CLASS MAGAZINE

with * NEWSPAPER SALES PUNCH

Here’s volume circulation of over 4.700.000 families ... but with newspaper concentration, thru 21 great metropolitan papers that average | in every 3% families in their 21 key markets * Here’s topnotch magazine fiction and articles that make the whole family read it and preserve it... combined with the newspaper’s local in- fluence that makes the family shop thru it, and the dealer tie up with it * Here’s rich magazine color at less than %¢ per family for a full color page ... plus newspaper flexibility that allows your color ad to change its local message in each city.

In short, here’s BOTH for the price of one!

“THIS WEEK” MAGAZINE _

[338] SALES MANAGEMENT

How We Minimize the Problem of Wasted Selling Effort

A selective selling plan in which salesmen concentrate on

only the best dealers keeps sales continuously on the up-

erade for Butler Brothers.

BY Jj.

FRANK MARTINO

Sales Manager, Dallas House, Butler Brothers

UR Dallas house of Butler Brothers has won for two suc- cessive years “Ye Mystic Cuppe,” the elaborate trophy award for seven-house leadership in the application of a new sales policy for drygoods and variety wholesalers. Back of the honor reposes a selling plan that has in one form or another proved alluring in specialty lines, but which is original, we believe, as back- bone for the merchandising of stock so diversified as that of Butler Broth- ers. This plan is based on the principle of concentration of selling effort, or selective selling.

“Cream Separator” System

Concentration, which is nothing more nor less than elimination, en- ables us to separate the wheat from thé chaff, and to devote our efforts to those accounts that observation and experience tell us are capable of de- velopment into profitable outlets for our merchandise.

This application of concentration re- sults in a radical departure from the established selling practice of the or- dinary wholesale house of our type. Instead of sending salesmen into a territory to sell all concerns which are acceptable purchasers of our merchan- dise, we predetermine the accounts upon which our salesmen are to call. This predetermination means that our salesmen—who, incidentally, are re- ferred to as concentration salesmen—go into a territory with definite objectives set up and do not waste valuable sell- ing time on concerns from which we could never anticipate profitable vol- ume.

The following outline will illustrate, in a general way, the mechanics of our selling:

The territory which, in the case of the Dallas house, covers all of Texas, the southern half of Oklahoma, west-

FEBRUARY 15, 1937

ern portion of Louisiana and a small portion of eastern New Mexico, is sliced into sales zones.

These zones are determined not by extent but by the accounts of requisite type contained in them, and upon which our concentration salesmen will be able to call at monthly intervals. Experience has shown that 60 well- developed accounts are about all that one salesman can adequately serve.

Having established the zone, our next step is selection of accounts. A list of merchants handling merchandise distributed by Butler Brothers is sub- mitted to the credit department for its approval before being placed upon the salesman’s list. Here again, we take steps to avoid dissipation of effort by salesmen—for time was when salesmen in old line houses would spend three or four hours selling a retailer a bill of goods only to find later that the re-

tailer’s credit would not stand the or- der.

Running Record of Account

Having been sanctioned properly by our credit department, the individual accounts are entered on MHandifax cards in order that we may have be- fore us a running record of the ac- count. This card reveals in detail the story of the salesman’s effort, personal sales, mail sales, house sales, specialty sales, and date of calls by the salesman. In the event that the account record does not show a tendency to develop into a profitable one and our corrective measures indicate that the fault is not that of the salesman, it is dropped and replaced by another one.

In connection with this phase of the procedure lists are reviewed with the salesman the first of each year. To each account is assigned an account- quota which we agree is potentially attainable. Accounts with estimated quota too small to prove profitable are dropped, and accounts suggested

by the salesman as replacements are submitted for credit approval for ad- dition to the list.

Our compensation method is based on sales in excess of individual pars. This par is based on an allowable per- centage of the cost to sell, with “pay point” established to cover salary and expense allowance. Pars and allow- able percentages for selling vary, of course, according to territories and their state of development, but the average, as a whole, must be within a certain defined limit.

Included in the general concentra- tion list, and forming the foundation upon which this list is built, are the accounts comprising our two voluntary chains: Ben Franklin League (variety) and Federated Stores (drygoods). These accounts, some 4,000 in num- ber in the entire United States, are the result of the conviction on the part of the heads of this business that the wholesaler of today should accept a new philosophy which is, to quote our president, F. S$. Cunningham:

Wholesaler-Dealer Partnership

“The wholesaler who wishes to play his proper part in the new scheme of distribution must in future treat the independent merchant as his partner. He must realize that his own success will depend upon his ability to help the independent man to remain in business at a profit.”

It was the application of that phi- losophy that resulted in the creation of both of the voluntary chains, the mem- bers of which, operating individually owned stores under a franchise, agree to give Butler Brothers preference in making merchandise purchases. In re- turn for this preference, we, through our voluntary chain headquarters, act in an advisory capacity and supply merchandising assistance comparable to that received by units of national chains from their headquarters.

This assistance includes physical store layout, window and interior dis- play; advertising counsel; promotions designed to create store prestige and build good will through the use of merchandise specials; merchandise control; accounting procedure; and even merchandise item selection.

For example, in buying candles for a little boy’s birthday cake, it is more natural to select pink than black. Pink candles burn faster than black, and it is to our advantage to have the retailer select pink rather than black candles for his stock. To keep our customers’ buying habits directed toward these faster-turning items, we prepare spe- cial lists with spaces for checking and ordering. Also, we send out a sheet

[3393

Keo Sa

A

’

ET "

“KNOW YOUR MARKET!”

Here is the exclusive “McCall

Method of Editing” that has

made MecCall’s the best read

women’s “Consumer” magazine:

This situation is typical of American Step 1. McCall’s Field Editors

, oi . f determine women’s problems social life. The conversation gives more than

eh : and interests through nation- a clue to America’s economic problems. For, as men wide visits with women in their are the producers and earners, so women are the consumers homes. Step 2. Then McCall’s . ° Homemaki Sty i- and purchasing agents for their homes and for the nation. pomomaning and Shyte Authors : ties solve these problems. Step 3. McCall’s Editors dramatize these findings to make them most interesting and readable. ° . ‘ ; ‘ -_ St . Me % search. tunerctewinn — in the home. Good business is dependent on maintaining oy Senco Meaty Ceeneeh, tneecentny: Oe tie home, checks up on the page-by-page reading.

Production is no end in itself. Consumption must follow

this balance between Production and Consumption. That is the reason for advertising —to increase Consumption.

A BUILDING BOOM

Likewise, the editorial purpose of McCall’s Magazine is THAT BUILDS SALES to educate the women of America to be better Consumers. Every month, McCall’s As such, the reader’s interest in the editorial and adver- architects design a new — : eli ‘ ‘ “Home of the Month,” tising pages in MecCall’s is one and interchangeable. Witn- which is erected complete OUT A LINE OF ADVERTISING. McCCALL’s WOULD STILL SELL by local builders. Some 64 of these modern, livable

MILLIONS OF DOLLARS WORTH OF MERCHANDISE. McCall Homes have been For McCall’s. as “The News Magazine for Women. aa ao seman Hamens te SE Ciena siete, aoe Yiemae : = by more than 500,000 prime home-building prospects. deals with the news of style— of food—of homes, furnish- ings and equipment— of child care and health—of beauty —of movies, stage and books. The kind of news that sells merchandise — Consumer News.

FASHION NEWS THAT SELLS

McCall’s is tied up with the largest selling dress patterns in the country. Merchants , . a ; know that McCall Patterns are a magnet for Women recognize the authoritative, practical helpful- the store and they're smart enough te pre- ‘ o . ‘ . . ~ oi _ . . " . - , ness of MecCall’s, resulting from MeCall’s greater knowledge mote McCall-advertised products. McCall's a 7 _ ied publishes more full-color fashion pages than of their problems. That is why, page for page, McCall’s is : any other wounill’s waguaine — andl tas Sel the best read of “Consumer” magazines. \\ | the greatest gain in full-color advertising a pages of any women’s magazine ... last year 465 or the year before! Emb. 1610

Wherever women live and consume—there you will find McCall’s. Wherever you find homes above the bare

subsistence level, where women are interested in reading PAGES THAT ARE SEEN MORE—SELL MORE!

about the products of Consumption —there also you will All fiction is grouped together; . yyy . . é . ; all the | »smaking interests;

find MecCall’s. For McCall's is the primary: consuming pope ers wempenr Tawesr

all the fashions and beauty facts. influence in more than 2,600,000 homes—the volume Each subject is a magazine in it-

onsuming market f 4merica.* et as a self, complete with related ad-

, 5 Y | - x . . .

: , oe a ; a oS vertising and a beautiful cover. bs og , : : Magnetic McCall’s is “three

*Beginning with the March issue —a new, more magnetic magazines in one,” with 2,600,000

McCall’s—new color—new excitement—a new capitalizing of circulation—the volume con- > \S — Sa - ai es |

the visual appeal. a suming market of America!

MAGNETIC Me CALLS

MORE meets FOR McCALL’'’S—MORE SALES FOR ADVERTISERS

3 and Make Em Pant

for BIGGER SALE$

Sounds nutty, doesn’t it? Well, it is—but if you’re interested in bigger and better sales from your sales force don’t let that keep you from reading every word of this.

You see, this Nudist Sales Contest has smashed all sales contest ree- ords from coast to coast. Sales man- agers have deliberately set “impos- sible” quotas (admitted that they did so, after it was over!) and the boys on the firing line have gone over the top.

We wish you could read fifty or a hundred of the letters we have from big shots and pip-squeaks, both. We wish you could see the complete set-up for the Nudist Contest: framed, colored manikins, die-cut clothing, song sheets, colored badges, manuals (three of them!) and the advance mailing card. We wish—shucks! Tear off the corner below and mail today; better yet. wire, collect! (Be sure to state how many salesmen you employ!)

BE SURE TO TELL HOW MANY SALESMEN!

Fill os ee INVLO Your Vetterkead and mail te

“HAHN- RODENBUR

COMPANY SPRINGFIELD *ILLINOIS+

[342]

of four items for each Saturday's spe- cial promotion—as table cloths, socks, jersey bloomers and shoes, and illus- trate specifically how to build up dis- plays of those items.

Each month a promotional chart for the entire 30 days goes out to each of these merchants. Drawings on how to trim windows for holidays, how to tie-in windows with floor displays and similar data are detailed for easy com prehension.

In fact, selectivity has come to char acterize our entire sales policy, and governs even our distribution of cata- logs (around 50% of our business is still done by catalog and mail selling). We have to determine what accounts bring in enough business to rate our catalog every month, or every two months, or Once a year, as in the case of resort stores.

That this principle which encom- passes both selective selling and selec- tive merchandising is sound is evi- denced by the consistent increase in our sales volume since its adoption, not to speak of the saving it has effected in our salesmen’s time.

Paint Manufacturer Finds Patman Act Boon, Not Bane

(Continued from page 304)

S¢

to the suggested resale price schedules. As a further aid the company has pre- pared a map which divides the terri- tory into zones; local, A, B, C, D, E and F, In zone A the resale schedules are 50 cents per cwt. higher than in local zone; in zone B, 75 cents; in zone C, $1, etc. This differential in the schedules covers the freight charges from either Chicago or St. Louis to those particular territories.

As a sales aid, Reardon has just issued an elaborate hand-lettered loose- leaf folder for the use of its own and wholesaler salesmen. This lists its complete line of paints and points to its extensive national and _ business paper advertising campaign. The publications used follow:

SEP, Better Homes & Gardens, Archi- lectural Forum, American Builder, American Painter & Decorator, Paint- ers Magazine, Western Paint Review, American Paint & Oil Dealer, Na- tionai Real Estate Journal, Building Supply News, American Lumberman, Sweet's Architectural Catalog, Hard- ware Age, Hardware & Metal (Can- ada), Canadian Paint & Varnish Jour- nal, Building Age (Canada) and Le

Prix Courant.

Further assisting sales Reardon gives the following supports:

1. A direct mail campaign to a list of architects, interior decorators and painting contractors (of the whole- saler’s selection).

2. Attention-getting stickers for the Reardon customer's letterheads, in- voices, etc.

3. A complete assortment of ad- vertising helps such as mat service, folders, leaflets.

Again the company has developed and is offering for the first time this year what it calls a “Reardon’s Water Paint Department.” This can be moved into a store and set up without altering shelving or fixtures. Built on a substantial base it has a backboard, shelves and compartments for display- ing the full Reardon line of water paint products as well as pigeon holes to hold color cards, folders and other advertising matter. It is described as “worth at least $60,” but is free with an order for an assorted ton of Rear- don products. This display rack is available to those handling the com- plete Reardon line.

Reardon is also announcing for the first time a new hot water kalsomine under the name “Quick Cresto.” This dissolves instantly in hot water and is ready for use in 15 minutes. It has been customary to mix the old kalso- mines the night before using.

To promote this a series of ten /post- cards are being prepared. These will be mailed each week to thousands of painters all over the United States.

“When the publicity department of the World’s Fair in Chicago told the world of the great new discovery— casein paint—it overlooked a bit of history,” Mr. Reardon said to SM “We invented it away back in 1884. We've been making it ever since. More than 20 buildings at the fair were painted with our paint made ex- actly to the specifications we used more than 50 years ago.”

McCall’s-Lux Fashions to Tour

Jointly sponsored by McCall's Magazine and Lever Brothers, stylists are to exhibit the latest women’s costumes to 125-150 stores throughout the country from February until June. A similar fashion show last year by the two concerns was viewed by approximately 150,000 women. Each of the costumes, day, evening and sports, is made from McCall’s printed patterns and the fab- rics have been tested in Lever Brothers lab- oratory and guaranteed “Luxable.” It is expected that the stores cooperating will run 175,000 lines of newspaper advertising in promoting the exhibition. Textile manu- facturers whose products are used and the press saw a pre-view of the show at the Hotel Lexington, New York, February 4, before it started across the continent.

SALES MANAGEMENT

“

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raised the root

..and uncovered the DIAMOND MARKET

ITH a list of American Magazine

subscribers in hand, Credit Men visited 31 key cities . . . and, figura- tively speaking, raised the roof.

They discovered that eighty-three per cent of The American Magazine readers either own their own homes or live in single dwellings . . . that most of them have charge accounts . . . which is just another way of saying that they out-buy the average man and woman about three to one.

They found that the majority of the Diamond Market are “preferred credit risks . . . the kind of people who buy regularly, and promptly pay their bills.”

Unencumbered by a crushing burden

THE

of old debt, the Diamond Market can use current income to buy currently advertised goods. So, their response to advertising is broader, less reserved.

Leaf through the pages of The American Magazine and you'll see at a glance why it attracts the better ele- ment in every neighborhood. Synthetic “‘smartness”’ is absent. In its place are stirring articles—lively, true-to-life fic- tion—and interesting, useful features.

The American Magazine, as its name implies, is the zational monthly maga- zine of the better American families. That’s why it has always played such an important part in the advertising pro- gramsof thenation’sleadingadvertisers.

HIGH INCOMES

MEDIUM INCOMES v

Low INCOMES

Concentrate on the DIAMOND MARKET... the heavy buyers of Branded Merchandise... The American Magazine audience is like a diamond in shape and value. Extend- ing from top to bottom of the national income triangle, it 1s wide in the middle where sales are greatest; tapers at the top where there are fewer people; tapers at the bottom where selectivity is all- important because there is a decreasing market for most nationally advertised products. A profitable market through- out—a concentrated market of con sumers who buy freely, pay promptly.

American Magazine

The Largest 25¢ General Magazine in the World— Average Net Paid Circulation More Than 2,100,000

THE CROWELL PUBLISHING COMPANY, 250 Park Ave., New York

FEBRUARY 15, 1937

Publishers of: COLLIER’S .. WOMAN'S HOME COMPANION .

THE AMERICAN MAGAZINE...

THE COUNTRY HOME

Copr. 1937, The Crowell Pub. Co

{343}

NBC COVERS THE

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NBC Crew on the flood scene

Only NBC had the benefit of the nationwide facilities of RCA and its family members. These vast resources — including regular and special equipment and personnel NBC to ser- L800 miles of flooded areas along the Ohio and

—were enlisted by

vice more than

the Mississippi.

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SALES MANAGEMENT

i

FLOOD FRONT...

to keep a waiting world informed

**... 1. humbly salute radio for its tremen- dous contribution in this hour of need... The complete story of radio’s contribution to flood relief as yet cannot be recorded but sufficient reports have been received to in-

dicate that in the saving of lives, the safe- guarding of property and in the raising of funds, radio and the splendid men and women associated with it played a major role ... Radio has done a magnificent job.”

From a speech by Anning S. Prall, Chairman of the Federal Communications Commission, over NBC Networks

More than 100 Pickups from 21 Cities in 11 States

The first flood broadcast was made by NBC at Kennett, Missouri, on January 20th. It was the only one that day—and the first of many NBC broadcasts during the week that followed! From every point, NBC Microphone Crews ~announcers, commentators and engineers— kept a waiting world informed. They broad- cast from ’planes .. . from boats in the tide- washed floods of Main Streets ... from mobile units which often replaced the crippled radio

transmitters in the cities of the affected areas.

Over the great NBC Blue and Red Networks of 116 stations sped more than 100 broadcasts in that one week. Broadcasts ranging from 10 minutes to | hour described conditions as they developed. American Red Cross appeals brought instant and generous response to the stricken. Crisp news summaries crackled into the air from coast to coast. America heard the news—N BC was on the scene.

NATIONAL BROADCASTING COMPANY

A Radio Corporation of America Service

FEBRUARY 15, 1937

[345 }

Newspaper’s Party: A General Foods salesman, aided by a newspaper, arranged it so that several hundred youngsters had a Mickey Mouse party at a movie theatre, with empty Post Toast- ies cartons the token of admis- sion.

What Cooperation May the Advertiser Expect from the Newspaper?

Many newspapers have merchandising services which are

available to advertisers.

Intelligently used, they can often

increase returns from space investments.

BY FRED J.

S a