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base. If the manufacturers ever settle their differences we can take official action, but until they come to some agreement we can only just move along and use the plug.

The last note I have made is "Mr. Blood." All I can do is just endorse everything Mr. Blood has said. He gave a very accurate and complete description of the whole situation on concentric wiring and our job now is to put in these various installations.

REPORT OF COMMITTEE ON MERCHANDISING AND RECENT DEVELOPMENTS IN

ELECTRICAL APPLIANCES

WG STETSON, CHAIRMAN

DISCUSSION

MR. STET ON (continuing): I was not appointed Chairnan of this Committee until after the last meeting had been held, until after all of the work of the Committee had been laid down and practically completed, therefore, whatever credit may be due ir the work which has been done through the year and for the preparation of this report is due nt to me but to Mr CE Robertson of Baltmore, who was the former Chairman.

MR. JONES: Next possibly to getting a large volume of power business the average sales manager has n thing nearer täris heart than selling krowatt consuring appliances. As we at'ain the highest point of lighting eth tency some other means must be devised to use the kilowatt hours which the light has saved About three years ago we brought out before this Se tion te merchandising principle of selling appliances at spe ta! t, sales, and I think it may interest you to know sortething of the results of a continuation of that poi y in one company at least. For the past three years in Brooklyn we have male amit v special of one particular apghance. We have inserted with our bills, beginning with the 15th of the month profit the sile, an unstamped postcard des ribing the le in hand and on the back of the card an order to be signed by the enston er for one of the appliances, for wha h he agrees to pay the stated price. Two months ago, with a view to ascertamin, weeter there is anything real in the special sale of aptlan es t t is not generally known, I asked our appliance manager ti t ́e an appliance which most of us will agree has no speval sak at least in our own parti, rar baliwi ks a virator and see if we could sell it in quantities on a special sale We hid

(SEE REPORT, PA-E 519

been selling very few vibrators. In most of our shops the sale of electric vibrators is small; it is not like the iron or the toaster, or some of the other popular appliances that we sell. We took a good type of vibrator, got a manufacturer who would cooperate with us and give us a special price for a particular month for introductory purposes, and we advertised that vibrator and sale in the usual special sale. We sold 325 vibrators in one month. I think the sale during the entire eleven months previous was under a hundred. That demonstrated particularly well that concentration upon one particular thing produced the sale. I could go on down the list, picking out particular appliances which, applied to a special sale, get sold. After these special sales we invariably have a continuation of the particular appliance at the standard price during the succeeding month.

The point I want to bring out to you is that this merchandising method of making a bargain-this specializing on a particular article in a sale will introduce the goods and create the demand. I do not mean by a bargain a cheap price, I mean a price that will net a fair profit, at least 40 percent, a good fair profit on the appliance. Without that special sale you are selling your appliances at a normal rate only. Since we began this I understand that our friends in Philadelphia have started a special sale, and I think perhaps Mr. Israel can tell us something about their results. This is just a point that I want you to think about as a means of selling appliances.

MR. ISRAEL: The practice in Philadelphia has been in existence for a number of years; and for more than two years we have made a special feature of a certain appliance every month. A point that has I think helped in a great measure is undoubtedly the special price and easy payment plan. In Philadelphia, if the amount of the sale warrants it, we cover the period of the payment in six months. During the monthly special sale the period of payment is extended to one year. That together with a special price tends to produce good results. In one particular vacuum cleaner sale we were able to sell nearly 900 cleaners; and that, like in the case in Brooklyn, was in a year following a previous vacuum cleaner sale, and has since been followed with another cleaner sale, all about a year apart.

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