Some More Price Cutting Figures

The price cutting figures given in the April lst editorial headed "The Demand That Price Cutting Puts Upot Business" has caused plenty of discussion, and brought us Eome interested letters.

But the brief tabte given in that article can fotrn the basis for a whole lot of interesting facts, if one is inclined to grab a pencil and paper and put down some figures of his own.

For instance: Suppose a merchant has been in the habit of getting $lfi) for goods that he pays $75 for, thus g,"ittg him a grioss profrt of $25 on each $lOO worth of goods he sold" He decides to cut his selling price 157o, thus selling the $75 worth of goods for $85, instead of $10O.

In onder to get the $25 profit that he has been making on each $f(X) sale in the past, he now has to do what? He has to sell $85 worth

NE\^I KILNS

The Fischer Soults Lumber Company, Eugene, Oregon, are now installing two Moore's Dry Kilns of the Baffle type, equipped wilh automatic temperature and humidity to get $lO; anotrher $85 worth to get $10 more; and then $42.50 more to get tlre other $S. So to get his original $25 profit, he now has to talre in $212.50. control, at their new milling in transit operation at Eugene, Oregon. They plan to handle considerable clear and common lumber through their new plant which is tributary to numerous small sawmill operations in the Eugene district.

"Not only that, but to take in this $212.5O and make this $25, he has to sell two and one-half time as much goods as he formerly did before he cut his selling pie-e 15/6 the total amount of goods sold this way to malae $25 being 25OVo of what he formerly had to sell to get that profit.

Furthermore, he has incneased his e:rpense because he has to sell, handle, insure, deliver, etc-r25OVo of the goods he formerly had to, by so doing cutting his NET profit down even further, by increasing the cost of doing business.

There are a lot of aide-lights on price cutting that you can dig up with a pencil, if you look at it this way.

TRY IT!