Time Telling through the AgesBrearley, Harry Chase
History
Time Telling through the Ages
Brearley, Harry Chase
Clocks and watches -- History; Time measurements
Then, in the natural course of business, competition developed from
the marketing of inferior goods, and the firm found it necessary to
place its name on the dial for purposes of identification. In spite of
all difficulties, there grew up in course of time a very considerable
public demand. Whereupon certain dealers undertook privately to raise
the price in order to increase their profits. This situation was met
by emphasizing the price more prominently on the boxes and in the
advertising, a policy which soon put an end to price-raising but led,
in some instances, to the even greater difficulty of price-cutting.
The better known became the price, the greater became the temptation
to dealers of a certain class to advertise its reduction in order to
bolster up "bargains" upon other goods. This naturally demoralized the
sales of neighboring dealers and caused them to lose interest in the
line. Thus, instead of increasing the sales, the reduced price proved a
serious selling obstacle.
The same difficulty has been encountered by other manufacturers of
widely advertised goods, and some of them have sought through the
courts to compel adherence to their prices, the argument being, as in
the case of the Ingersoll watch, that price-cutting does not serve the
interests of the public but tends to interfere with sales since it
obstructs the channels of distribution. At this writing, the question
in its legal phase has not yet reached a final decision in the courts,
but the Ingersolls have solved it in a practical way, since their
trade-policies have brought about the voluntary cooperation of the
retailers.
Such cooperation, however, was not to be attained at once. It came
about through much study and after much experience. It involved the
assembling of a large amount of data upon commercial economics and a
deep inquiry into the fundamental principles of retail distribution.
It proved necessary to weigh and compare recent and important factors
in the retail situation. For example, because of the fact that so
many manufacturers were giving indiscriminate discounts for quantity
purchases, it had become profitable to establish huge department
stores, chain-stores, and mail-order houses whose scale of operation
made it possible to handle goods in large amounts.
For a time, the Ingersolls, in common with other manufacturers, gave
discounts for purchases in quantity; later, as the business grew and
its distribution problems were more scientifically studied, they saw
more clearly the way in which the principles of equal opportunity and
equal treatment could be applied.
Public-domain text, read in full here on John Shaqi.
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