Postal Riders and Raiders

by W. H. Gantz

Now, I desire to talk somewhat directly to the rural and village storekeeper and of storekeeping.

The manufacturer, wholesaler or jobber always sells the retail merchant—the quantity buyer—cheaper than they will sell in broken lots to the consumer. They will always sell to you cheaper than they will sell to your customer, will they not?

You have an “edge” of 20 to 40 per cent., have you not? But to hold that “edge” now, you must order in quantities which anticipate the demands of your custom, must you not? You must “stock up,” must you not? If you miss your guess, and underbuy the demands of your trade, you must, later, “sort up,” must you not? If you sort-up, you do it at “broken-lot” rates and pay excessive carriage charges for delivery to your place of business, do you not? If, on the other hand, you overbuy the demands of your trade, your shelves are soon full of “shelf-worns,” are they not? These shelf-worns you must unload, must you not? To do that, you offer “bargains,” do you not? Unloading “bargains” loses your “edge”—your profits—does it not?

But still another point in your present and compelled method of business. Your customer is never so well pleased with your sacrifice “bargains” as he or she is with the fresh, up-to-date article, which you sell at a profit. Is that not so?

Now, let us see how a cheap parcels post would “knock your business silly.” Let’s put the rate, say at 5 cents for parcels up to one pound, 8 cents to two pounds, 10 cents to three pounds, 12 cents to four pounds, and so shading up in weight to twenty-five pounds, at one cent a pound. I present this scale of weights and prices merely to illustrate. I have given them no particular thought or consideration—that is, I do not present them as a recommended basis for a parcels carriage system. I believe, however, that the government can carry and deliver parcels at about the rates named and not create any larger “deficits” than the postal service now shows.

That aside, let us see how you, Mr. Retail Country Merchant, would come out in the deal:

First: You would not have to “stock up” beyond the known demands of your customers. Your “shelf-capital,” then, would need not, necessarily, be more than half what is now is.

Second: You could serve your customers fresh goods of latest pattern and at less cost, and still serve them at a profit, instead of working off shelf-worn “bargains” on them at a loss.

Third: Mrs. Lucy Smith sees a Sereno Payne imported glove, advertised by an “eastern merchant” or some distant “mail order house.” It is the “very latest” and guaranteed to be the very best “kid” ever built—from a premature calf. Or Uncle Joe wants a mop rag-holder for Martha. It, too, is advertised by some distant manufacturer, merchant or mail-order bogey man. Say the advertised price of each is $1.00. Each, of course, weighs less than one pound.

Now, if Mrs. Smith or Uncle Joe orders direct, the article costs them, postage added at our hypothetical rate, $1.05. Of course, they will have inquired of you before they ordered—to see if you have it in stock—will they not? Well, you haven’t it in stock—and you can’t work off on them “something just as good.” Mrs. Smith just must have those particular gloves, and no other mop-holder will satisfy Uncle Joe. Now what do you do?