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LOWERING THE PRICE
THROUGH ADVERTISING
Too many manufacturers believe that if they
"spend" money in national advertising (they don't
see that it is an investment) they must make it up
somewhere else.
They want to get their money back the first
year, and they turn to a raise in their prices as the
means a means which is usually a sure road to
failure.
In reality, the amount put into advertising is
a deferred profit It comes back later through
increased volume of sales.
The normal result of advertising, rather than
an increase in price, is a decrease in price, or a .better
article for the same price, which amounts to the
same thing.
And this in turn automatically brings still
greater volume of sales.
H
The case of the Hoosier Manufacturing Com
pany, of Newcastle, Indiana, is in point. This com
pany attributes its success to several factors, and
chief among them these:
(1) Constant effort to give the maximum for
the money.
(2) Advertising.
The Hoosier Company began advertising when
it first began making kitchen cabinets, fifteen years
ago. Its first advertisement was a small one in a
woman'u publication, costing $47.50. Today it is
one of the leading national advertisers, doing a
business of millions.
The story is perhaps best told by some direct
quotations from a statement made by the Hoosier
Company itself.
"For a great many years the Hoosier Company
did not take a penny of profit out of the business,
but put everything back into the quality of the
article, and we feel that it has been this policy more
than anything else that has founded the present
reputation the Hoosier Cabinet has among women.
"There has not been a single year since we
began making cabinets that we have not increased
the value put into the cabinet and improved manu
facturing and packing methods as a result of
increased volume.
"During the panic of 1908 we brought out a
cabinet which we featured exclusively in our adver
tising. As a result of this campaign, our sales
increased 36 per cent.
"A Hoosier Cabinet now is a much greater
value for the consumer than the one which sold for
the same money a few years ago; this in spite of
the fact that lumber in the past ten years has
greatly increased in cost and that our labor costs
have come up about 20 per cent.
"We feel that our case offers an unusually clear
example of the benefits that accrue to the consumer,
dealer and manufacturer from good merchandise
persistently advertised! s
A testimony of a trade paper publisher as to
the effect of the Hoosier advertising is as follows:
"They started in on a vigorous advertising
campaign, both through magazines of general circu
lation and the trade papers, and all of a sudden the
kitchen cabinet became the most-talked-of article ,of
furniture made. Today the kitchen cabinet is the
best-advertised and most easily sold article of furni
ture manufactured."
What this company did with a new product, by
advertising and by foregoing immediate profits for
the sake of future greater profits, many a manu
facturer whose product is already well established
can do much more easily.
After all, courage is the essential factor.
THE CURTIS PUBLISHING COMPANY
INDEPENDENCE SQUARE, PHILADELPHIA
The Country fientleman
Yil I . " s
Ml '
iLf s The Ladies Home Journal The Saturday Evening Post
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