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The Object Of Advertising

The Object Of Advertising image
Parent Issue
Day
28
Month
August
Year
1874
Copyright
Public Domain
OCR Text

The N. Y. Neicspaper Reporter of the lat in6t. has a thoughtíul artiole on the object of advertising. The argument is trom the very sound stand-point that tho merchant whose transactions aro largest will, undor the general circumstanoes governing the trade, make the most money, and reap the largest percentage of net profit. Every man must realize the truth of this who is patiënt tmough to take all the f acts into consideraron. We quote one of the several examples given : " In the same town, in a similar store, B, an older merchant, longer established and better known, sella $40,000 per annum. B gets along with about the same rent, clerk hire doubled, costing him 1,000 where A pays but $500. B's antire expenses for the year are $3,000, while his profits are f 10,000 gross ; $7,000 net ; or 17 1-2 per cent. on the business done, while A made but 15 per cent. net. Any business man of experience will pronounce this exhibit fair. A plan which will enable A to increase his business to an amount equal to that done by B without reducing his percentage of profit, will be worth $4,000 a year. If an expenditure of $2,000 a year in advertising will do it, such an expenditure would be justifiáble. If an expenditure of $4,000 will make A's doublé that of B's, then such an expenditure will not be imprudent ; for on the $80,000 of business there will be $20,000 profit, from which to deduct the expenses, increased to $4,500, and $1,000 paid for advertising, we will have $10,500 proflt, or $3,500 more than that made by B." Emphasis is placed upon these two requisites - that adnertising brings the emtomer, and that he must be retained by bêing well served. The newspaper is the best of all mediums through which to reach him ; goods sold according to representation the only method of retainiug a patronage once bestowed.

Article

Subjects
Old News
Michigan Argus