MARKETING
"Anybody can slide down hill, but it takes good legs and good wind to
go up."--Silent Partner.
The brightest minds of the business world are endeavoring to solve
the problem of how best to market an article. Of course, unlimited
capital, and a good article greatly lessen the problem. But to start
with little or no money, build up a business, equip the plant, buy raw
materials, hire help, manage a factory, establish credit, advertise,
fill orders, collect accounts, and do the thousand and one other
things necessary to make success of a business requires a good, virile
mind, and plenty of hard work and close attention to detail, and
should be a steady, gradual development. With honesty of purpose,
quality of product, absolute fair-dealing, push and untiring energy as
guides, any man or woman given good health, common sense and a fairly
meritorious patented article can unquestionably succeed in profitably
marketing it. A steady climb with unflagging zeal and singleness of
purpose always win out. The motto should be, "This one thing I do."
It has been found from experience that it is usually well to get the
best expert advice in connection with the establishment of a new
business before making plans for spending much money. There are
specialists in all business lines today, and as a rule it proves to
be wise economy to spend money in payment of their services.
Some of the largest industrial establishments in the world are the
direct outgrowth of a very small plant judiciously handled and
energetically developed. Of course, in marketing a product, one
must know exactly what the product costs. Allow proper margin for
management expenses, fixed charges, depreciation, selling expenses
and the like. It is usually safe to add one hundred per cent. to the
manufacturing cost for the purpose of covering administrative and
fixed charges. Wholesale selling prices should always conform to the
list put out by other manufacturers. In other words,
An article retailing at 5c
usually sells wholesale for 35c to 40c doz.
An article retailing at 10c
usually sells wholesale for 60c to 90c doz.
An article retailing at 25c
usually sells wholesale for $1.75 to $2.25 doz.
An article retailing at 50c
usually sells wholesale for $3.50 to $4.50 doz.
An article retailing at $1.00
usually sells wholesale for $7.50 to $9.00 doz.
The gross prices are approximately as follows:
On a 5c article, $4.20 to $4.80 per gross
On a 10c article, $7.20 to $9.80 per gross
On a 25c article, $21.00 to $27.00 per gross
On a 50c article, $42.00 to $54.00 per gross
On a $1.00 article, $90.00 to $108.00 per gross
It is usually customary to give a discount of from 5 per cent. to 10
per cent., if ordered in gross lots. Terms of settlement show
considerable variation in different lines, and range anywhere from 1
per cent. to 8 per cent. for cash in ten days, with extension of
credit of from thirty days net to ninety days "extra dating." There
are some splendid books advertised and published along these lines
which can be had from the various publishers. There are also weekly
and monthly periodicals that will prove of great benefit to anyone
engaging in a new business.
Carefully prepared catalogues, stationery, printed matters, follow-up
letters, etc., should be used. Consult a specialist about these
matters.
"The world always listens to a man with a will in him."