WHOLESALE TRADE IN NEW ZEALAND

Press, Volume XC, Issue 27397, 9 July 1954, Page 8

WHOLESALE TRADE IN NEW ZEALAND

FUNCTIONS OUTLINED BY SIR JACK HARRIS The distribution of goods and the role of wholesalers in New’ Zealand’s economy were discussed by Sir Jack Harris, of Wellington, in an address to members of the Institute of Management at Canterbury University College. Sir Jack Harris, who is president of the New Zealand Softgoods Wholesalers’ Federation, has been president of the Wellington Chamber of Commerce and is managing director of one of New Zealands biggest wholesale firms.

After illustrating the importance of distribution to production, and the effects of modern technical knowledge and skill, Sir Jack Harris said: “Probably there are other countries which want New Zealands exports. Some of the countries may not have the money to buy our goods, but wholesalers can play an important part in developing other markets for our exports. Wholesalers had to select goods, foresee buying and market trends, and maintain supplies to satisfy demands, said Sir Jack Harris. To make profits, a quick turnover was essential to the wholesaler. Stocks should be turned over at least five times a year, but because New Zealand was so far from markets, and delivery times were often up to 10 months from the placing of orders, quick turnover was made more difficult. Wholesalers gross profits averaged 12J per cent to 17J per cent., said. Sir Jack Harris. Net profits were from li per cent, to 3 per cent. Out of this profit taxes and allowances for contingencies and business expansion had to be met. A considerable degree of misunderstanding of the part played by wholesalers in New Zealands economy existed in the minds of the public and retailers, Sir Jack Harris said. The wholesaler played a more important part in New Zealand than in many other countries, because of the Dominions geographical situation.