“Yes, I do. Men saw that their small line of crockery, or tinware, or stationery sold well, and they increased the assortment, and finally led up to the 'department' idea.”
“How is this 5-cent counter business managed? I mean, how are the sales made?”
“Largely in assortments; for instance, if you pick up advertisements of the houses making a specialty of such goods, you will find that they offer assortments for a certain amount of money. They give the goods in detail; the dozen price of each article, the quantity sent in the assortment, the cost to the dealer, and the total retail price. Of course if the dealer is just starting out in such goods the entire assortment is what he wants, but if he is in it already the list enables him to buy just those things he needs. You'd be surprised to see the profit there is in these things, even in the present hard times. For instance, I saw an assortment of 5-cent goods consisting of 167 dozen articles which would retail, as you can figure, for $100.20; cost to the dealer, $60; profit, $40.20, or 67 per cent, on the investment.”
“Let's go into the 5-cent business,” said the cutlery man
“Better start a knife-stand on the street. Do you make goods for street-men?”
“No; they handle the cheapest Dutch trash.”
“Where do they get it?”
“In New York and Philadelphia. Seven or eight years ago some street fakir got hold of a showy two-blade penknife at about $2 a dozen. He took his stand on the street and they went off readily at 25 cents. The business seemed to spread all over the country like wild-fire, and especially during the fair season. Jobbers in the inland cities were cleaned out of stock they looked upon as dead and worthless. Of course, as soon as this demand was felt houses began to prepare to supply it. At first the fakirs were willing to pay $2 per dozen, but when new stocks came out cuts were made and the prices steadily went down.”
“What do they pay now?”
“These 25-cent tables do not cost, on an average, $1.50 per dozen knives. They get out a very handsome-looking two-blade knife, in bone or ebony handle, for $1.32 per dozen; a good-looking jack-knife for $1.40 to $1.75; pearl handle penknives for $1.75 to $2.”