based the diagnosis and treatment of ailments of industry and commerce.

In last analysis success in business depends upon the intelligence of the individual manufacturer. If he does not understand both the details and the broad aspects of the industry of which he is a part, he cannot expect to be successful. American business men do not realize the value which trade journals and technical magazines may be to them in increasing the efficiency of their factories and in giving them a broad and comprehensive view of their business. Our foreign competitors read almost every article published upon their business with great care and thoroughness. Many of them have duplicate copies of their favorite trade paper sent to their homes so that they may read them away from their business without being disturbed. Many foreign manufacturers contribute articles to these journals on phases of the business with which they are most familiar. Such articles are bound to be helpful and have a constructive effect. Our trade journals and technical papers are the best in the world and they should be encouraged and supported by our business men. Copies should be placed where employes can see them and they should be urged to read and study them. These papers are preaching the gospel of sound business on practical lines and are helpful not only to business but to the country as a whole. If the suggestions made by them in the past had been followed by our business men it would not be necessary at this time to point

out some of the fundamental weaknesses in American business.

We all know that lumping all business together the real need is for better business methods. We must get down to the hard facts of business, to learn precisely what they are, where the weaknesses and losses exist, and practise the same thoroughness which characterizes trade and industry in Europe. To be progressive manufacturers we must be improving our methods of production, changing our designs to meet the new conditions both at home and abroad, and always endeavoring to adopt some new method that will reduce the cost of operation in every part of the business.

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CHAPTER IV

MERCHANDISING

NE of the most important problems of modern business is proper methods of merchandising.

The keen competition of the present day has rendered obsolete the old method of waiting until a customer comes in and selling him what you have in stock. Salesmen no longer are able, by means of a dinner or an evening's entertainment, to induce a merchant to stock up with a line of goods which may or may not be easily sold, but which represent the largest profit to the salesman.

No matter how efficient a factory may be, no matter how low the prices a merchant may pay for his goods, without proper merchandising methods success cannot be attained.

The first step in merchandising is to price the goods properly, and to do this a modern system of accounting is necessary. The system must show the purchase price of the goods delivered at the store and also the expense of doing business, which must be added to the purchase price before the selling price is determined.

The next step is to get the product known, and this step requires advertising in some form. While in

judicious advertising results in loss, judicious advertising means a larger output and greater profits. A merchant should be sure of his supply before stimulating demand. He should live up to his advertisements and never claim that he will do a thing and then fail to do it. Above all, he should never misrepresent the goods or their true value. It is comparatively easy to cause the public to lose faith in your advertisements, but it is almost impossible thereafter to regain their confidence. Without that confidence even the best-devised campaign will fail to produce desired results. The buyer of to-day knows more about the goods he purchases than ever before. He knows their quality and their worth.

Some advertising campaigns have proven unsuccessful because the attempt was made to cover more territory than the funds would permit with the result that the goods were only half advertised. If the advertising in such cases were done in a more limited territory the results would be very much better.

The next step is proper presentation of the goods. This requires proper, attractive, and careful packing. Some of the most meritorious goods ever advertised have failed to sell simply because they were not put up in an attractive form or were carelessly packed. In a retail business the appearance of the store itself is also a matter of vital importance. The way goods are displayed has a very decided effect on the volume of business done. Goods should be arranged so that they can be readily found when wanted rather than

piled anywhere and everywhere, obliging customers to wait while a clerk hunts all over the store for the desired article, sometimes saying they do not have it in stock and losing the sale when actually the article wanted was in the store. We have all met the oldtime merchant whose standard remark when asked for something was, "Well, I did have some of that somewhere but I can't just put my hands on it right now." His day has gone. We have no place for him in the modern business world.

In lines of merchandising where seasonal goods are carried those appropriate for the season should be given the place of honor in the store and staple goods placed in the rear.

A good appearance of the store has another desirable effect on the business which is generally overlooked. It is one of the items taken into consideration by a number of credit men when determining the line of credit to give. Credit men know that the merchant who arranges his store properly is very much more apt to be successful than the one who pays no attention to this matter, and they act accordingly. Some credit men go so far as to insist on salesmen reporting on this from time to time.

The cheapest thing in the world is courtesy, and it brings a larger volume of profit than any other factor in merchandising. Some business men think that this applies only to the salesman who comes in personal touch with the customer, but this is not the case. Instances are numerous where a little courtesy shown