"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 divided them into the day's cash
total, and found how much each customer averages in expenditure?
"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 devise some ways and means of increasing the sale to
each customer.
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.
Public-domain text, read in full here on John Shaqi.
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