Quick Sales and Small Profits
Our modern system of transacting business has so materially changed from what it was a decade or so ago, that a special training is required to make a success.
Theoretically, the difference between the cost price and the selling price represents profit. But it often represents loss.
If goods could be delivered at your place of business at the invoice or purchase price, the selling price might cover some profit. But complications begin as soon as you have made a purchase.
There is transportation, insurance, demurrage, haulage, rent, light, heat, clerk hire, taxes, and perhaps license fees, to be added to the burden of the cost price.
With such, and so many additional charges, how can there be any profit, if the goods are sold customers at a fair price that will attract them?
There is only one way to cover possible loss and that is in getting rid of the goods at a small profit. If you do not, depreciation enters the field to compete with the other troubles, and with handling, dust, mussing, etc., you will have to put up a sign “Selling below cost,” or “Bargain Sale.”
A quick turn is the best turn in business, and to hold on to a price until you get a fixed profit you have determined on, is like refusing a good job because the wages or salary is lower than you have calculated upon getting. The opportunity slips away.
A landlord demands a certain rent for his premises and he will not come down a dollar a month. So his property is untenanted for a long time, and he loses in pocket although eventually he gets his price.
Make quick turns at small profits and repeat often. Nickel car fares are making the car companies multi-millionaires.