As soon as I had time, I went to Boston and saw Alex Cantling, as Barlow had suggested, to find out how much money it would take to start an automobile accessory department. Alex Cantling was a big-boned, clean-shaven, healthy-looking man. He was what I would call a brass-tack man. When I told him my business, he pushed his papers aside and gave me his undivided attention. Then after a little while he did some figuring on a piece of paper. "Well," said he, "I should say you would want to spend at least five hundred dollars for such a department." He promised to work out and send to me a list of the different items which I ought to stock, and he also gave me the name of one or two good people to buy my supplies from. "Now, come along and have some lunch with me," and he took me to a place near Faneuil Hall Market, where I had about the finest meal I ever had in my life. After lunch, he advised me to go to see Barker. As soon as I entered the store, and looked up at the little mezzanine floor on which he worked, he looked up and called out cheerily, "Hello, Black, come right upstairs." Well, he told me just about the same as Cantling, so I left him and went to see George Field, who said, "Well, if Cantling and Barker both tell you that, you may be pretty sure it's right." When I got back to Farmdale I had a long talk with Barlow about automobile accessories. After I had told him how much money I wanted, he looked out of his office window, and leaned back in his chair a few moments, then said, "I'll lend you three hundred and fifty dollars toward your stock of those goods. I think that that should be sufficient to encourage you to work with me on this gasoline deal." "There's one thing I'd like to ask Mr. Barlow, and that is, if I have to buy gasoline second-hand from you, shall I be able to sell it at the same price as Martin's Garage, and make a profit on it?" "Quite as much, if not more," he replied. "You remember I told you I would supply it to you at half a cent above what it cost me. Now, by buying twenty-five thousand gallons' worth, I get a very low price, and can make four cents a gallon profit on it. You then buy what you need and make three and one-half cents profit. If you bought a small quantity yourself, you would not make more than two and one-half to three cents, so you really make more money, buying it through me, than buying it direct." "I can't for the life of me," I said, "figure out why you are so anxious about selling gasoline." "Can't you conceive of my wanting to make some profit on gasoline?" he said, smiling. "Yes," I drawled, "but—" "Yes, indeed," I answered quickly. "Well, I'm helping you this time, and I'm going to make some profit on it, as well. There'll be room enough for you and me, Black, don't worry." Finally it was agreed that I should see these two firms which Alex Cantling mentioned to me, and try to arrange for three hundred and fifty dollars' worth of accessories, with the account guaranteed by Barlow. He said it might not be necessary for him to put in any money, but that if he did, I must give him my note for whatever he put in. I got a bit scared when he told me that, but he said all he would ask, as security, was the stock of automobile accessories, so that I didn't stand to lose anything. I was not going to put in the supply until the beginning of April. Barlow said he would be glad if I would not mention a word of it to any one until that time, so I agreed not to have my automobile accessories delivered until the oil tank was ready. Just as I was picking up my hat to leave Barlow's office, he called me back and said, "Do you know why your friend Stigler isn't getting on very well? It's because he's always talking about what he is going to do." "Yes, he is always shooting off his mouth," I said, "but—" "But what?" he asked, smiling. "Oh, nothing," I answered, "except that, when I hear he's going to pull off some stunt, I try to get there first!" "I'll take the hint," I said; then I left him. I wondered what Barlow's real reason was in encouraging me to go into automobile supplies. I didn't think it was the profit he expected to make on gasoline. I was beginning to have more respect for Barlow than I ever had in my life, and, frankly, I was beginning to have less fear of Stigler. Stigler's five-and-ten-cent store had been very slack the last few weeks, and really it was helping, rather than hindering, me, for, while he displayed cheap kitchen goods and was selling them just because they were low-price, cheap articles, I was displaying similar kinds of goods of real merit and quality, and selling them at a good profit. Any one, looking into his window and mine, could see no competition, for, while the goods were similar in kind, they were so different in quality as to preclude any possibility of comparison. At the last meeting of our Merchants' Association, we had had a speaker who was the advertising manager for a chain drug-store organization. He had interested me very much in the need for increasing the amount of sales per customer. He said: "I wonder if you people here know how much each customer spends on an average. For instance, our chain of drug stores must average thirty-five cents a customer; that is, excluding the soda counter. Have you ever added up the number of customers and "Suppose you have an average of one hundred customers a day, and that, through good salesmanship, you increase the sale to each customer ten cents only. That means that, at the end of the week, by good salesmanship you have increased your sales sixty dollars without any increase in your expenses at all, with the possible exception of the supplies or delivery. Now, suppose your average gross profit on sales is twenty-five per cent.; your increase of ten cents per customer means that you make fifteen dollars a week of additional profit, or a profit of seven hundred and eighty dollars a year. All this profit is yours, if you will only increase the sale of each customer by ten cents! "That is what it means every time you increase a sale: You increase total sales; you increase gross profits; you lower cost of doing business; you lower percentage of controllable expense; you lower percentage of advertising expense; you help cut down surplus stocks; you increase your turnover; you improve your service. "All these things happen every time you increase a sale by as little as a dime." I remembered particularly the way in which he had said, "Isn't it worth while, gentlemen, to encourage your sales people to sell every customer an extra dime's worth, over and above what they had intended to buy?" Seven hundred and eighty dollars a year extra profit, by increasing the sale to every customer by ten cents. That certainly had got me going, and I intended to I thought this a good point for discussion at our next Monday's meeting. We had dropped them while Larsen was ill; but, as the dear old fellow was better again, though not quite well, we were to start them again on the next Monday. When Larsen was first taken sick I had hired a young fellow, named Charlie Martin, to help out. Charlie was a college graduate, with a father who was quite well-to-do. After he graduated from a college of business administration, he had spent a year with a big chain cigar store organization, after which he had been six months in a department store in Detroit. He and Fred Barlow had gone through college together and they were good pals. He happened to be visiting the old man Barlow when Larsen was taken sick, and it was through Barlow that he had come to me. Martin told me that he would be glad to get some small store experience, so I had hired him and he had been working like a Trojan at $8.00 a week. His father was a banker in New York, and I had heard that he had been a little bit disappointed in Charlie because he didn't take to banking; but Charlie said that what he liked best was retail merchandising, and he had spent a great deal of time and money preparing himself for such a career. When Larsen came back I told Martin I didn't see how I could keep him, but he pointed out to me that our sales had been increasing, and that, as Larsen was not yet well, it would be putting too much of a burden on him, especially as we would really be short-handed. So I had kept him on and I was rather glad It surely had seemed good to get my small staff around me again at a Monday night meeting. Mater had taken over Betty's usual task, and sent in coffee and doughnuts, which quickly went the way that all good coffee and doughnuts should. It was really a treat to see Jimmie eat doughnuts. I didn't believe he did eat them; he just inhaled them. Of course, Jimmie was there with all the importance of a young boy who had been taken into the confidence of his grown-ups. Jones and Larsen were there, as well as Martin. What a contrast there was between Martin and Larsen—Larsen sadly in need of a shave, in rough home-spun clothes, sitting in his shirt sleeves with the wristlets of a red woolen sweater showing underneath them; and Martin, who always looked like the last word off Fifth Avenue, in spotless linen, narrow sharp features, with the air of a regular debonair young man about town. These two people, the exact opposites of each other, had quickly grown to be good friends. The one had gained his knowledge through more than two-score years of rather bitter experience; the other had gained his through five years of specialized training. Martin, the trained man, had the keen analytical sense which only comes from training. Larsen, through intuition, backed by practical experience, blundered more or less after the more quick-thinking Martin. Yet theory and practice thought pretty much alike. It certainly showed to me the advantage of training, for Martin had mastered in five years all that Larsen had learned in forty. The first was by applying the law of association. It was a simple thing to do, and yet it astonished me to find that, while we all knew about it, we had not been applying that law. For instance, only that morning Mrs. Wetherall had come in for a clothes line. Jones had got the line for her and had said, "Nothing else?" and she had said, "No, thank you," and walked out. Martin asked Jones if he would allow him to make a suggestion relative to that sale. Jones was a pretty good scout, and he said he didn't mind. "I don't think," said Martin, "we ever ought to say 'nothing else'? Because the natural thing for the customer to say is 'no.'" "By Jove, you're right. I should have said, 'Anything else,' shouldn't I?" "That I think would be better," continued Martin, "but even that puts up to the customer the burden of thinking if there is anything else wanted. It would be better to suggest some articles. That is, of course, applying the law of association." "I see," said Jones thoughtfully, "I should have suggested she buy clothes pins before I let her go." "Yes, and other things." "Well," said Jones, "I don't see anything else I could have suggested to her, except that electrical washing machine we have got in, but it's sixty-five dollars, and people won't pay that price for it." I had bought this washing machine on the understanding that I could sell it at the rate of ten dollars down and five dollars a month, and pay them at the same rate for it. Then Jones said, "Huh, I suppose I didn't do a blame thing right in that sale. Well, I guess you can't kick at my sending the parcel home for her. That little booklet we got out said we were 'long' on service." "I guess you're all right there," I said, smiling. "What do you say, Martin?" "Why, yes, of course," responded Martin. "It is fine to give service." Then, as if it were an afterthought, he added, "I wonder if it would have made any difference if instead of saying 'Shall we send it?' you had said, 'Will you take it with you?' Most people act on the suggestion that is given. That is why, when we suggest to people to buy goods that are associated with what they ask for, we put the thought of buying those associated articles into their minds." "And," broke in Jimmie impetuously, "they fall for it. I got yer!" I told Martin that he had better make a list on cards of the articles which can be associated with each other, and then we could tack up the cards where we could see them and quickly suggest the associated articles to the customer. "I tell yer what," said Jimmie, "let's have a lot of cards printed, and then, if a carpenter comes in, shove out a card at him and say, 'Look through this and see what else you want'?" That didn't strike me as being such a bad suggestion after all. The second plan for increasing sales was to suggest novelties, or new articles in stock, to customers. "Look what we did with that Cincinnati pencil sharpener," said Larsen. "Do you remember how we mentioned that to every one who came in, and we sold a bunch of 'em." "And they're still selling, for I sold three last week," said Martin. "Gosh," said Jimmie, "everybody must be giving 'em to everybody else for presents." "I don't think," said Martin, "we have anything like exhausted the sales possibilities of those pencil sharpeners, and I am going to suggest that we make I shook my head dubiously. "We seem to have pushed those so much," I said, "I should think there would hardly be a novelty here now." "There has not been one on display for a couple of months," he answered, "and we have about half a dozen in stock. Let's put those around the store in different parts and then put a little card over each one saying, 'Sharpen your pencil.' I will wager that every man who comes into the store will sharpen his pencil, and if he does—" "And if he does," the irrepressible Jimmie broke in "good-by pencil sharpener, you're going to a new home!" A thought had occurred to me which developed into the third method of increasing sales. I had remembered that, when Betty and I were in New York, she had lost her handkerchief, and we went into a store to get one. When Betty said she wanted one handkerchief, the girl brought out one and said, "Ten cents. Anything else?" I had thought at the time that she could have sold Betty half a dozen just as well as one, and, furthermore, if she had brought out one at twenty-five cents Betty would have bought it just as readily. Then I remembered how often we did the same thing with our customers, to whom, when they came for a pocket-knife, for instance, we offered a twenty-five cent one when we might have sold a fifty-cent or a dollar one just as easily. I said to myself, "A number of our customers will go into a restaurant and spend two dollars for a meal and then they will come So with this thought in mind, I suggested that another way to increase the amount of each sale is to suggest higher-priced goods than the customer has in mind. Yet another plan would be to suggest larger size packages. For instance, we sold both ten- and twenty-five-cent packages of some articles. Once a customer had come in and asked for a stick of shaving soap and Jones had brought down the ten-cent size and the customer put the ten cents down and walked away with the soap. He might just as easily have been sold the twenty-five-cent size. So we decided that, when a customer asked for an article, if there was a larger size package, or a better quality, we would always show the largest or the best, taking care, however, in every case to show reasons why the better quality or larger package was best for the customer to buy. From all this we finally developed three rules. One was to offer higher-priced articles, another to offer a larger size package, and another to offer a larger quantity. Jimmie asked irreverently, "What's the diff between them last two?" "Well, for instance, we sell scouring soaps for enamelware, and, as we have two sizes, we always want now to sell the larger package. If, however, a customer comes in for, say, seven pounds of nails, we want him to take twenty-eight pounds, or a keg, if we can." The last rule was one suggested by Martin, and it We decided that we must not ask the customers if they were interested in the articles they are looking at, nor must we bring the articles to them, but we must casually say, "That's quite an interesting so-and-so, and is proving a mighty useful little thing," or some such remark as that. In other words, just make a casual comment on it, and then, as Martin said, "If they respond with a remark expressing interest, the sale is half made." I really felt that Martin had, in his quiet way, dominated the whole of this meeting, but he had done it so neatly, and without in any way trying to overstep my authority, that I really felt that he had been a lot of help to us without making his show of knowledge obnoxious. I really believed Martin knew more about retail merchandising than all of us put together. What he had done was to suggest that it might be a good idea to do such and such a thing, instead of arrogantly thrusting his knowledge on us by saying we ought to do so. He was a clever man, Martin, and Barlow's son was lucky to have a fellow like him for a friend. I wished I could tie him up to my store somehow, but, of course that would be impossible in a little store like mine, for there were no prospects for a young fellow like him. ... The day after our meeting I saw the cleverest example of selling that I had ever seen. Probably it was old, but it was surely new to me, and the man got a small order from me, too. About 10:30 in the morning, a well-dressed, jolly-looking man came into the store. I was busy serving "How do you do?" said the stranger, smiling. "I've got a message to tell Mr. Black," and he nodded toward me. "He'll be free in a few minutes," said Larsen. "Thank you," replied the salesman. Then, noticing a display of electrical goods which we had on one of our center tables, he said, "The man who dressed that table knows something about display, doesn't he?" "I did it," said Larsen. "Oh, I beg your pardon; I thought that one of your assistants had done it." I heard this even while serving my customer and I don't think I had ever seen Larsen act so pleased. The old chap almost purred with delight. The salesman didn't say any more to Larsen, however, but turned around and inspected the electrical goods. When I was disengaged he walked over to me. "Good morning, Mr. Black; I have a message for you; but, before I deliver it, I wonder if you have such a thing as a bit of scrap zinc or tin around the place?" "Yes," I said, and told Jimmie to bring a piece. The jolly-looking man then took a pocket-knife from his pocket, opened it and cut two or three slivers off the zinc. Passing the knife over to me, he said: "Did you ever see a pocket-knife before that could do that without denting?" "No. But I never heard before of any one cutting zinc with a pocket-knife." "Yes, indeed." I looked at the knife curiously to see if the edge was dented at all, but it wasn't. "That is the kind of pocket-knife we sell," he continued. "Isn't that the kind of pocket-knife that will please your trade? Just a moment," putting up his hand, "there's a bit of copper wire on your counter yonder. May I borrow it a moment?" I smiled and fetched it to him. This time he brought out a pair of shears and snipped three short pieces of wire from the coil, passed the scissors over to me and said, smiling in the most friendly manner, "Same story on the scissors, Mr. Black." My hand instinctively stretched out for those scissors and I examined the cutting edges carefully. "Look at this, Larsen," I called out without thinking. ... "Mr. Larsen looks after our cutlery—tell him about it." I held out the scissors to the stranger, but he didn't take them. "Try it for yourself," he said to Larsen. Larsen did try it. "Any good shears'll do that," said Larsen. "Exactly," said the salesman, laughing; "which shows these must be good shears. Isn't that so?" "How much?" asked Larsen. Well, I need not go any further. We had always bought most of our cutlery from a jobber, feeling that it was best for us under the circumstances. This sales Martin had been unpacking some goods which had just come in and didn't get behind the counter until afternoon. I told him about the selling stunt that we had seen. "That's fine!" he said. "Let us adopt it," and thereupon we decided that on pocket-knives of one dollar and over, and shears of seventy-five cents and over, we should demonstrate their superiority in the same way that the salesman had done. "Why not on the cheaper ones?" I asked. "Do you think," replied Martin with a dry smile, "that people would pay extra for the higher priced knives or shears if we demonstrated to them that the lower priced ones would stand the same test of quality? There would be no logical reason for them to pay the extra price, would there?" A few days after our meeting Jimmie complained that the whole town was using our store as a pencil sharpening emporium. "Everybody is sharpening their pencils all day long, since we put up that notice about the Cincinnati pencil sharpener," he said. "How many have we sold?" I said, turning to Jones. As a matter of fact I had forgotten our plan. "There's only one left," he answered. "Great Scott! Order another dozen right away!" I said excitedly. "Martin ordered them on Tuesday." Martin again. He thinks. |