Convinced that trust--as he insisted upon calling credit--was a
millstone upon the neck of the merchant--let alone a struggling man of
thirty-five who previously had known failure--Macy insisted upon
matching his purchases for any ensuing week close to his sales for the
preceding one. He did all his own buying at first; and for a number of
years thereafter he employed no professional buyers whatsoever. In this
way he kept his margin closely in hand and at all times well within the
range of safety. There was little of the spirit of the gambler in him.
It would not have sat well with his Yankee blood.
A second principle of the store in those early days which has come
easily and naturally down to these--when it is accepted retailing
principle everywhere--was the marking of the selling price upon each and
every article. It seems odd to think today that the installing of such a
fair and commonsense principle should once have been regarded as a
stroke of daring initiative in merchandising. Yet the fact remains that
in the days when Macy's was young, in the average store one bargained
and bargained constantly. There was no single price set upon any
article. Even when one went into as fine and showy a store as New York
might boast one bartered. _Caveat emptor_, "Let the buyer beware," was
seemingly the dominating retail motto of those days.
But not in Mr. Macy's. The selling price went on every article displayed
in the store in those days and in such plain and readable figures that
any fairly educated person might clearly understand. This principle
alone was one of the huge factors that went toward the early and
immediate success of the enterprise.
There was still another merchandising idea born of that great and
fertile New England brain that needs to be set down at this time. For
many years a notable feature of the advertising of the Macy store has
been in the peculiar shading of its prices--at forty-nine cents or
ninety-eight, or at $1.98 or $4.98 or $9.98 rather than in the even
multiples of dollars. A good many worldly-wise folk have jumped to the
quick conclusion that this was due to a desire on the part of the store
to make the selling price of any given article seem a little less than
it really was. As a matter of fact it was due to nothing of the sort.
With all of his respect for the honesty of his sales-force, the Yankee
mind of R. H. Macy took few chances--even in that regard. He felt that
in almost every transaction the money handed over by the customer would
be in even silver coin or bills. To give back the change from an
odd-figured selling-price the salesman or the saleswoman would be
compelled to do business with the cashier and so to make a full record
of the transaction. With the commodities in even dollars and their
larger fractions the temptation to pocket the entire amount might be
present.
Public-domain text, read in full here on John Shaqi.
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