IS THERE PROFIT IN PRIVATE BUSNESS?

Chronicle (Levin), 27 February 1947, Page 8

IS THERE PROFIT IN PRIVATE BUSNESS?

PEEP INTO PRICE TRIBUNAL "* WORKINGS "What i's the Labour Government's workable margin for profit in private business?" This was a question asked a Palmerston North newspaper by a worrxed and oernlexed photogranhic dealer this week after receiving three dozen tubes of M.Q. photographic developer. The three dozen- tubes were 6s a d'ozen — 18s. Added- to~this was the saies tax of 20 per cent. — 3s 8d ; on top of this was postage— 8d; altogether the cost to the dealer came to 22s 4d. The way the price monnted ud after leaving the warehouse, is likely to make the buying publicf squirm, but the antics of the dealer can be -imagtned and understood when he found the price fixed bv the Price Tribun-al for retail selling was 24-s for the three dozen. or a profit on each tube of 5-9ths of a penny. • "Most of this stuff is sold to amateur photographers who ask a little instruction when ihey make the purchase," the dealer said. "I spend about five minutes with each- customer explaining how to use +he stuff. so that for the total profit of . Is 8d I spend something lik'e - tlp/eevhottrs: in expla nation. I ar/e ex;jqected tcFecoghis^^the iSay rent and . staff wages. as well as keep. ourselyes on a . prqfitv which must work out on ihe mihus side."' It is o-bvious we have a real grouch agairst the unseeirg eye of ihe Price Tribuna.l and the hope has been exp^es.sod that at somp ifi Hie future consideratin-i will be given ' h^-se mer^hants wh" liave a livelihood to make. Another fact oointed out which will be recognised by the astute reader, is that the dealer alsn losrmoney on th° saies tax computation. Four-fifths o-f a nemiy wenT into the Government" coffers because the tax is tak°n to the nearest penny-— but the nearest penny is always on the Government side. not that of the ever.suffering merchant.