A Standard Quality must be inseparably linked to a Standard Policy.
Without a definite and Standard Mercantile Policy, it is impossible for
a manufacturer to long maintain a Standard Quality.
To market his goods through the jobber, a manufacturer must provide a
profit for the jobber as well as the retail dealer. To meet these
conditions of Dual Profits, the manufacturer is obliged to set a
proportionately high list price on his goods to the consumer.
To enable the glib salesman, when booking his orders, to figure out
attractive profits to both the jobber and retailer, these high list
prices are absolutely essential; but their real purpose will have been
served when the manufacturer has secured his order from the jobber, and
the jobber has secured his order from the retailer.
However, these deceptive high list prices are not fair to the consumer,
who does not, and, in reality, is not ever expected to pay these fancy
list prices.
When the season opens for the sale of such goods, with their misleading
but alluring high list prices, the retailer begins to realize his
responsibilities, and grapples with the situation as best he can, by
offering “special discounts,” which vary with local trade conditions.
Under this system of merchandising, the profits to both the manufacturer
and the jobber are assured; but as there is no stability maintained in
the prices to the consumer, the keen competition amongst the local
dealers invariably leads to a demoralized cutting of prices by which the
profits of the retailer are practically eliminated.
This demoralization always reacts on the manufacturer. The jobber
insists on lower, and still lower, prices. The manufacturer, in his
turn, meets this demand for the lowering of prices by the only way open
to him, viz.: the cheapening and degrading of the quality of his
product.
The foregoing conditions became so intolerable that, ten years ago, in
1899, A. G. Spalding & Bros. determined to rectify this demoralization
in the Athletic Goods Trade, and inaugurated what has since become known
as “The Spalding Policy.”
The “Spalding Policy” eliminates the jobber entirely, so far as Spalding
Goods are concerned, and the retail dealer secures his supply of
Spalding Athletic Goods direct from the manufacturer under a restricted
retail price arrangement by which the retail dealer is assured a fair,
legitimate and certain profit on all Spalding Athletic Goods, and the
consumer is assured a Standard Quality and is protected from imposition.
The “Spalding Policy” is decidedly for the interest and protection of
the users of Athletic Goods, and acts in two ways:
FIRST—The user is assured of genuine Official Standard Athletic Goods,
and the same fixed prices to everybody.
SECOND—As manufacturers, we can proceed with confidence in purchasing at
the proper time, the very best raw materials required in the manufacture
of our various goods, well ahead of their respective seasons, and this
enables us to provide the necessary quantity and absolutely maintain the
Spalding Standard of Quality.
All retail dealers handling Spalding Athletic Goods are required to
supply consumers at our regular printed catalogue prices—neither more
nor less—the same prices that similar goods are sold for in our New
York, Chicago and other stores.
All Spalding dealers, as well as users of Spalding Athletic Goods, are
treated exactly alike, and no special rebates or discriminations are
allowed to anyone.
Positively, nobody; not even officers, managers, salesmen or other
employes of A. G. Spalding & Bros., or any of their relatives or
personal friends, can buy Spalding Athletic Goods at a discount from the
regular catalogue prices.
This, briefly, is the “Spalding Policy,” which has already been in
successful operation for the past ten years, and will be indefinitely
continued.
In other words, “The Spalding Policy” is a “square deal” for everybody.