Random Editorial Ramblings

(Continued ance on the difierence in stock carried, and taxes on same' as well as save on the lesser deterioration of the fast turnover stock, etc. Besides you save on the room required for the smaller stocks, and you give your customers fresher goods.

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The merchant who has only $5000 can beat the $25'000 capital man to death if he plays the turnover game to the limit. He can cut his price, and still beat him to death with his small investment charges, and the othe'r advantages iust mentioned. And he usually beats hirn on cash,discount. If you carry $5000 worth of stock, and sell it ter\ times a yedE, you evidently buy it that same number of times; if you take yoar 2 per cent cash discount each time, you have at the end of the year made ten times 2 per cent of your invested capital, or a return of 20 per cent on cash drlscounts alone. It is said that in rnany cases where competition is keen, stores have sold for exact cost, and got by on their cash discou4ts which their competitors were too close hauled to take.

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A piece of advice to every retail lumber dealer: GET FROM YOUR NEAREST NATIONAL CASH REGIS. TER COMPANYREPRESENTATIVE A COPY OF THEIR BOOK ENTITLED, "BETTER RETAILING'"

You will get so many ideas out of that that you can incorporate usefully into your business that you will be grateful forlifeto the great firm that produces it. It shows you

A. C. HORNER FLIES Tc'SEATTLE

In order that he might attend a meeting of retail lumber dealers in Palo Alto on the evening of May 27, and keep an engagement with Colonel Greeley in Seattle on the morning of May 29, A. C. Hoqner, Western manager of the NationalLumber Manufacturers' Association, left San Francisco at 8 a.m. May B on the West Coast Air Transport Company's tri-motored plane for Seattle. Fast time was made to Portland, according to Mr. Horner, the plane arriving there at 1:30 p.m. The plane took ofi at 3 p.m. for Seattle and arrived there on schedule at 4:3O p.m.

NE\,t/ HAMPSHIRE LUMBERMANVISITS COAST

H. Gregg of A. Gregg & Son, wholesale lumber dealers of Nashua, N. H., was a recent visitor to the Pacific Coast on a tour of the lumber manufacturing regions. While in California he visited the mills of the Pickering Lumber Co. in Tuolumne County.

from Page 6.)

exactly how to figure stock turns, and how rapidly turnover increases your profits. Herejs one of their examples:

Suppose you have sales of $30,000 at a margin of 3O per cent, and an average inventory of $5000 at selling prices, a stock turnover of 6, you having sold your average stock six times a year. Multiply $30,000 by 30 per cent, gettrng $9000 profits, from which you deduct expenses of say $7500, leaving profits of,$1500. Suppose you turn that stock seven times the next year, instead of six, at the same mark-uP, and with the same expense. Multiply your $5000 stock by seven' getting $35,OOO total business, multiplied by 30 per cent' giving you $10,500 profit, from which you subtract your cost of $7500, and you have a profit of $3000. YOU HAVE DOUBLED YOUR PROFITS BY INCREASING YOUR TURNOVER ONE-SIXTH.

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Read that book and you will find out why the chain stores are floruishing. Generally accepted is the theory tfiat vol' ume purchasiqg is the answer. The chances are that this is a minor rather than a maior factor. Stock turnoler is the big ansurer. Statistics show, for instance, that the average chain drug store turns its stocks 12 times annually, and the average individual drug store turns it stock only 2.3 times. With the same capital invested and the samp mark-up the chain makes more than five times as much as its individual competitor on this item done, and, they can cut their prices far below those of the individual and still make a generous return on their investment.

A. B. GRITZMACHER ON VACATION

A.B. (Gus) Gritzmacher, partner in the well known wholesale' lumber firmof Gritzmacher & Gunton, San Francisco, left on June 15 for his vacation, which he will spehd this year in and around Portland, Ore. - Mr. Gritimacher, who was born and raised in Portland, has not been there for the last four years, and is quite prepared to see the changes wrought in his'old home town by the active building program which has been in progress there during this time.

SAN FRANCISCO DEPARTMENT STORE HAS REDWOOD EI(HIBIT

Much interest was created during the past week by a display of California Redwood in one of the large display windows of The Emporium, San Francisco. The display featured a new fancy fruit pack in Redwood boxes, sandblasted Redwood panels, and the largest developments in distinctive finis,hes in colors for Redwood.