For some time Stigler had been telling around town what he was going to
do to me. I had heard he had made the remark that he was going to cut
the heart out of me, and he surely tried to, for, whenever I had
anything in my window or advertised in the papers, he immediately turned
around and sold the same article at a lower price. Whenever I had found
him doing this, I had immediately cut down below him, and many things I
had to sell below cost. But I didn't see any help for it--I couldn't let
him get ahead of me on prices like that. I felt that I had to follow his
lead wherever he went, and trust to making my profit out of other
things. But it surely was heartbreaking to have a fellow like that
bucking me.
One day, Rob Sirle, the editor of _Hardware Times_ called on me. He said
he had heard about my stunt for beating the mail-order people and he
wanted to know about it.
I told him all about it, but somehow he didn't seem very much impressed.
He didn't say much about it, but I remembered that some one had remarked
to me at the convention that he never spoke about anything unless he
could boost it.
I told him about Stigler and the price-cutting contest that was then on
between us.
"I'll tell you what you want to do to beat that," said he. "You put
goods in your window to-morrow morning and mark them at exact invoice
price. Wait until friend Stigler has put the same goods in his window
at less than cost, and then as soon as he has done it, remove your price
tickets. If any one comes in to buy them, sell them only at regular
price, except, of course, if they come in while the cut price is marked
on them. You can well afford to let Stigler sell all the goods he wants
at below cost price, because the more he sells the more quickly he will
eliminate himself as a competitor.
"Every day you can put a new line in the window. I don't think it will
be very long before he gives up the foolish task of cutting his own
throat. I always compare the price-cutter," he said musingly, "with a
hog which cuts its own throat as it swims. That is just what the
indiscriminate price-cutter does. He cuts his own throat first. I never
saw a price-cutter yet who had a real, solid business. People are wise
these days, you know. You offer anything at less than cost price and
people flock to buy it; but it doesn't mean that they are necessarily
going to buy other goods at the same time. No, sir! They'll buy the
cut-price goods from the cut-price store, but they'll buy the regular
goods at a regular price from the store which offers them courteous
service in place of cut-price chicanery!"
I at once decided to follow his advice.
Public-domain text, read in full here on John Shaqi.
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