"Of course," I said, "it is much easier for you people to make money
than it is for me, because you buy much cheaper than I can, and your
expenses are so much less. You could afford to sell cheaper than I do,
and still make a handsome profit."
"As a matter of fact," said Roger, "you are wrong; for, while the actual
operating expense of this store would be a smaller percentage than your
actual operating expense, we have a heavy supervision cost. It is a
fallacy to believe that the larger store can operate for less expense.
It cannot. The bigger business you have, the more money you have to pay
the executives to control that business, and there is such a scramble
for really big men that salaries of fifteen thousand dollars and twenty
thousand dollars a year are not unusual. Our general manager makes
eighteen thousand dollars a year!"
"Think of making eighteen thousand dollars a year! Three hundred and
sixty a week! Sixty a day! Working six hours a day! Ten dollars an hour!
And here I pike along on twenty-five dollars a week and work my head off
ten hours a day. Then you mean to say that it really costs you more to
do business than it does me?"
"It surely does," he said, "but, while we get a smaller net profit on
each sale, we possibly exercise more judgment in buying than you do, as
we see that everything we buy is a quick seller. That off-sets the
increased cost of doing business.
"Another big advantage the chain store has over the single store,"
continued Roger, "is that we have very little unsalable stock to dispose
of. For instance, I have just had a lot of brushes sent me from one of
the other stores. They cannot sell them, so, rather than have them sold
at a sacrifice, the brushes were sent on to us. I am doing quite a big
business in paint brushes--you know we specialize on brushes of all
kinds, and I really think that already we are beginning to dominate that
field in Farmdale.
"By the way," added Roger, "you ought to meet Pat Burke."
"Pat Burke?"
"Yes, he is the manager of the new Woolton store here--awfully nice
fellow."
"When did you know him?" I said.
"Strange to say, he was assistant manager of the Hartford Woolton store
when I was there, and I got to know him quite well."
"I hardly like to call on him," I said. "Remember, he's a direct
competitor of mine, and next door to me."
"Competitor nothing," said Roger good-naturedly. "You are not
competitors at all. You are selling different classes of goods, and you
ought to supplement each other."
That was a new thought to me. I wondered if a five-and-ten-cent store
was a hindrance or a help to an adjoining hardware store?
A man named Purkes ran a grocery store at the corner opposite Traglio's
drug store. He was an undersized man and fussed and interfered with
everybody else's business, and made a living chiefly because he hadn't
much competition.
Public-domain text, read in full here on John Shaqi.
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