BETTERING BUSINESS

Sun (Auckland), Volume III, Issue 734, 6 August 1929, Page 9

BETTERING BUSINESS

PERSONAL CONTACT AN ADVANTAGE RETAIL SYSTEMS Better business by personal contact— Mr. H. R. Rodwell, lecturer in Economics at the Auckland University College, praised this element in addressing the Karangahape Road Business Promotion Society this afternoon. Mr. Rodwell was speaking on retail trade systems in England and the United States. “A manufacturer is a producer, so he is really not fitted for retailing goods,” Mr. Rodwell said. “That is the retailer’s job. He produces, too —ho produces real utility for the community. So there should not be an abrupt distinction over the middleman’s position. The retailer is going to be recoginsed more fully in the community.” Mr. Rodwell said that retail stores were generally divided into five groups —the type of the country general store, the unit store, perhaps the most conmon in New Zealand, the departmental store, the mail-order house, and the chain store. Mr. Rodwell mentioned the need of personal contact as a means of building up business. Rapid turnover was important, and the speaker considered that the quitting of old stock was an urgent necessity. Mr. Rodwell said that newspaper advertising was undoubtedly valuable to departmental stores. Unit stores were particularly encouraged in England by manufacturers, who, with that type of retail business, had more bargaining power. “Generally speaking, far too much credit is allowed,” Mr. Rodwell added. “It does not help the consumer much in the long run, and it does not help the retailer. “In America, there is an excellent system of training business staffs in salesmanship. It could be: well adopted in New Zealand. The Americans have university courses in the subject, and there is no doubt bad salesmanship can cause a great deal of harm.’ Mr. Rodwell mentioned the huge business of departmental and mail-order stores in American and English cities. Country consumers were especially catered for. Restaurants and rest-rooms were provided for customers, and the mere size of a departmental store was a fact which impressed the public mind. It was a convenience to country people to have all their accounts concentrated in the one firm. Elaborate delivery systems could be developed by departmental stores. Extensive advertising was necessary to build up turnovers, and strict attention was needed in departmental stores to train staffs. Mail-order stores were chieflv American businesses one United States firm had 8,000,000 clients.