WARTIME TRADING

Evening Star, Issue 23702, 9 October 1940, Page 9

WARTIME TRADING

SOME HELPFUL HINTS Here is some shrewd advice offered by G. Ivan Morris, editor of the ‘ Irish Accountant and Secretary “ Well bought is half-sold ” is at all times a very true saying, but its truth is particularly evident in wartime. Buying at a low price is not the essential thing about good buying. It is far more important that your purchases bo of a kind that are readily and quickly saleable. In my opinion it is a mistake under present conditions to buy a line of goods just because they are to be picked up at a low price. What benefit is the transaction if the goods cannot bo disposed of without delay? In such a case you are merely tying up capital which might profitably bo used in other directions.

Therefore aim at buying, at the best possible price, goods which will sell quickly and easily.

If you are sure of an increase in price it is a wise policy to buy in advance. But can you be sure? If not. do not gamble. It is too risky. The subject of discounts has snags. Never let yourself bo persuaded into buying too large a quantity of goods for the sake of obtaining what appears to be a generous discount. Discounts or cut prices are of no real value until you have actually sold tho goods. Tf you buy too much at one ordering you may have to sell at a reduced price, thus losing any advantage gained by tho bigger discounts. For wartime trading the ideal discounts are those allowed to a buyer of small quantities for prompt payment. Thus the buyer is able to avail of discounts without having to lay in unnecessary stocks, and the supplier receives payment of his account more promptly. So long as purchases are made in fairly small quantities the trader is reasonably secure against serious loss. Therefore do not swallow too readily the scaremongers’ tales about shortages, increases, etc. When a trader is nervous or in perplexity he should refrain from buying. Such an important task as buying requires a clear mind and calm judgment.