“But suppose the goods will not allow all this.”
“They must allow it if they are to be handled by the trade in a regular way, and they will always allow it if proportioned aright; but what I complain of is that so many manufacturers are unable to comprehend the jobber's position. Here is a sheep-shear that is advertised to consumers at $1.25 per pair; the maker says the lowest he can sell at and make a small margin is $8 per dozen. There is a good margin between $8, factory price, and $15, consumer's price, but how is it divided? A retailer is quoted the goods at $8.65 and the jobber at $8. Don't you see that common sense would say $10 to the retailer and $8 to the jobber? If the jobber wants to sell at less than $10 let him do so (he is sure to do it), but the manufacturer should not.”
“Some houses ignore the jobbers altogether; what would you do with them?”
“They are all right; I have no fault to find with them; I can meet all of such competition, and without worrying. No factory can handle my trade so cheaply as I can. A great deal of my trade no factory can reach. Salesmen get higher salaries from the factories than we pay. They only get the trade they drum; there is very little of mail orders from the small trade sent East; what they need they want quickly. Both Russell & Erwin and Sargent & Co. have drummed the retail trade for years, but they have done jobbers no harm, and of late are very anxious to get the jobbing trade. I don't fear the drummers from the factories, but I do dread the low quotations they scatter around, because I must meet their figures.”
Mr. Shively seemed pleased at having a good listener, and had talked as if enjoying himself. While I was very much interested in his views, still it is probable I should have acted just the same even if I had cared nothing about what he said. No higher compliment is paid to a man than to place him over you as your teacher. I left him after getting a fair order from him, and passed into a large retail store.
That undefined line between the large retailer and the small jobber is a delicate one on which to tread. It is rarely that a retailer will buy of his home jobbers. Every jobber will sell more or less at retail; will tread on the toes of his retail neighbor, and the latter has a special desire to buy as low as the jobber does. Much of his stock is bought at such prices; on a large part he is assured by the salesman that he is getting as good prices as the largest jobber in the land. If one is not direct from headquarters it is doubtful ground to walk on, but it has to be taken care of.
I handed my card to the man whose face seemed to me to show authority and ownership, and I was not mistaken.
“Guns!” said he, “we don't handle guns.”
“But you do revolvers and cartridges.” I had seen them in the show-case.
“Yes, but we don't sell them. The jobbing houses are retailing at wholesale prices, and we poor retailers stand no chance.”