PROFIT ON AUSTRALIAN BOOTS

Dominion, Volume 12, Issue 307, 23 September 1919, Page 5

PROFIT ON AUSTRALIAN BOOTS

FROM .27 TO $ PER CENT.' Following on a confidential statement by Mr. H. G. Lamb, manager of the boot department of the C. M. Kead Store, Fraliim (a suburb of , Melbourne), the chairman of the Profiteering Commission announced that the gross profit made by that firm in their boot department was 27,30 per cent, for the year ended July, 1917; 23.35 per cent, the following year; and 25.54 per cent, last year. \ Mr. Lamb said his percentage of profit was calculated on the one-third basis, sales being oa the average a third more than the cost. Nine months ago boys' boots ranging in size from 10 to 13 .cost 7s. Id., and yore sold for Bs. lid., showing a. profit of a. littlo over 25 per cent. To-day similar boots cost Bs. (id., and were sold for 11s., Cd., a profit of about 35 per cent.' On, balmoral boots the prohts had risen, to 38 pet cent ' The chairman (Sir J. W. M'Cay): Yon take n, larger percentage of. profit on boots for , boys and youths than you do in similar lines for children. Witness: Yes. Wo sell more, of the 'children's boots than wo do of tho other lines, and wo endwivouri to aver-age-the copt on the percentage basis. The witness also said that for the working man's class, that balmoral boots were retailed nine months ago at 13s. 6d., with a profit of almost 10 per cent. To-day tho boots cost 11s. /Od. and were sold for lte. lid., the profit being about '27 pi , ? cent. . For' a, botter-class boot the selling ■price had increased from 15s. 6(1. to 17s. lid.; while for a still superior iMot the price had increased from 275. lid. 'to. 38s. Gd., the profit on current wholesale cost showing 48 per cent. ■ The chairman: That scorns rather a jump. .•-''. "Witness: I would liave to sell the boots for that price in order to lnake the onethird profit all round. In the women's section a pair of boots, wliich cost the firm 16s. 9d. nine months ago, and were then 1 sold for 255. a pair, now.cost 2Cs. a pair, and were retailed for 395., the profit being about 6fl per cent. The profit of a "goud dres.s shoe" was 43 per cent. The chairman: There again is a high increase, but you explain it by saying they are slow selling, and that yon must make- wp for tho • lower-priced stock. " These figures show that you make your smallest profits r on the children's lioote, then youths and boys, a littlo more profit for the men, and distinctly moro for tho women. Your instructions are to make a one-third gross profit? Witness: Yes.