±err> Southern Branch of the University of California Los Angeles Form L 1 Q,eo\ This book is DUE on the last date stamped below OCT 13 t34j' SEP 2 1347 JAN 2b '-'^ OECl :4W9 Form L-9-5)n-7,'23 SELLING EXPENSES AND THEIR CONTROL A Study in the Retail Distribution of Clothing' BY NORTHWESTERN UNIVERSITY SCHOOL OF COMMERCE BUREAU OF BUSINESS RESEARCH HORACE SECKIST, DIRECTOR IN CO-OPERATION WITH THE NATIONAL ASSOCIATION OF RETAIL CLOTHIERS 44392 PRENTICE-HALL, Inc. NEW YORK CITY COPTEIGHT, 1922 nohthwestern university ajtd National Association of Retail Clotheebs PRINTED IN THE UNITED STATES OF AMERICA 4* «0 s PREFACE This study was undertaken for two primary purposes: first, to determine what it costs to sell clothing in stores operating as independent units, and second, to find, if possible, the prin- ciples governing these costs and the methods by which they may be con- trolled. A previous study made by the Bu- reau of the retail cost of distributing clothing showed that it was necessary to classify stores by years, by size and by location. Accordingly, such a classification is provided for in this analysis. But here the study is pushed further. It answers the question: What are the conditions which con- trol the amounts of selling expense? and it measures the degree to which the control is exerted under different conditions of store operation. The study was begun on the basis of certain hypotheses which, on an a priori basis, seemed to summarize the conditions controlling selling expense. These hypotheses were tested statisti- cally on the basis of store records for different years and for stores of dif- ferent size and location. Briefly, the analysis has led to the conclusion that the relations of selling expense to sales and to total operating expense are governed by conditions which, to a large degree, are subject to effective merchandising control ; that they vary according to clearly defined princi- ples; and that these principles can be stated and the conditions of ex- pense distribution under them meas- ured. In a word, the analysis has led to the belief that there are certain master or controlling facts behind in- dividual facts, as they show them- selves in modem business, and that these may be revealed through statis- tical analysis of mass information. There is a science of business. Its principles can be stated so that those who are interested can, if they will, act in the light of them rather than in the grip of blind routine. In the preparation of this study, the value of the services of the entire staff of the Bureau is cheerfully ac- knowledged. Special mention, how- ever, should be made of the part which has been taken by Miss Blanche Altman, assistant to the Director, and by Miss Irmgard J. Grabbe, the Di- rector's secretary. Northwestern University School of CommeTce, Bureau of Business Kesearch, Horace Secrist, Director CONTENTS PAGE I. INTRODUCTION 1 II. SUMMARY 3 1. Units of Measurement Used in the Tables and Text 3 2. Amounts of Selling Expense and its Components, Wages and Salaries, Advertising, and Other Selling Expense, for Stores Classified by Years, by Size, and by Location 5 3. Amounts of Selling Expense and its Components, Wages and Salaries and Advertising, in Relation to the Amounts of Stock Carried 17 4. Amounts of Selling Expense and its Components, Wages and Salaries, Advertising, and Other Selling Expense, in Rela- tion to the Amounts Sold per Full-time Sales-person .... 20 5. Amounts of Selling Expense and its Components, Wages and Salaries and Advertising, in Relation to Expenditures for Rent 24 6. Amounts of Selling Expense and its Components, Wages and Salaries and Advertising, in Relation to the Amounts of Fixture Investments per $100 of Total Net Sales 26 7. Amounts of Selling Expense and its Components, Wages and Salaries and Advertising, in Relation to Investments in Fixtures per 100 Square Feet of Floor Space 28 8. Amounts of Selling Expense and its Components, Wages and Salaries and Advertising, in Relation to Expenditures for Advertising per $100 of Total Net Sales 30 9. Amounts of Selling Expense and its Components, Wages and Salaries and Advertising, for Stores Classified by Expen- ditures for Advertising, by Methods of Paying Salesmen, and by Relative Rates of Profit per $100 of Total Net Sales 32 III. SELLING EXPENSE AND EXPENSE RATIOS IN CLOTHING STORES 34 1. Selling Expense for Clothing Stores Classified by Years, by Size, and by Location 34 A. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, 1919, 1918, and 1914 34 B. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores in 1919, 1918, and 1914, Classified by Size 36 V PAGE C. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores in 1919, 1918, and 1914, Classified by Size of City in "Which Located 37 D. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Size and by Size of City in Which Lo- cated, 1919, 1918, and 1914 41 E. Summary 52 2. Yearly Amounts of Selling Expense in Relation to the Amounts of Stock Carried, for Stores Classified by Years, by Size, and by Rates of Stock Turnover 53 A. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, 1919, 1918, and 1914 53 B. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Size, 1919, 1918, and 1914 60 C. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Rates of Stock Turnover and by Size, 1919 75 D. Summary 85 3. Yearly Amounts of Selling Expense in Relation to the Amounts of Goods Sold per Full-time Sales-person and to the Methods by "Which Salesmen are Paid, for Stores Classified by Years, by Size, and by Location 85 (1). Yearly Amounts of Selling Expense in Relation to Amounts of Goods Sold per Full-time Sales-person . . 86 A. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, 1919, 1918, and 1914 86 B. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Size, 1919, 1918, and 1914 89 CJ. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Size and by Size of City in Which Located, 1919 112 D. Summary 118 (2). Yearly Amounts of Selling Expense in Relation to the Methods by Which Salesmen are Paid 118 A. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Size, 1919 119 vi PAGE Yearly Amounts of Selling Expense in Relation to Expendi- tures for Rent and to Investments in Fixtures for Stores Classified by Years, by Size, and by Location 127 (1). Yearly Amounts of Selling Expense in Relation to Ex- penditures for Rent per 100 Square Feet of Floor Space , 127 A. Yearly Amounts of Selling Expense per $100 of Total Net Sales for Stores Classified by Size, 1919 127 B. Yearly Amounts of Selling Expense per $100 of Total Net Sales for Stores Classified by Size of City in Which Located, 1919 136 C. Yearly Amounts of Selling Expense per $100 of Total Net Sales for Stores Classified by Size and by Size of City in Which Located, 1919 139 D. Summary 140 (2). Yearly Amounts of Selling Expense in Relation to In- vestments in Fixtures per $100 of Total Net Sales. . . 141 A. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, 1919, 1918, and 1914 141 B. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Size, 1919, 1918, and 1914 144 C. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Amounts of Inventory in Relation to Sales, 1919 155 D. Yearly Amounts of Selling Expense per $100 of Total Net Sales, for Stores Classified by Rates of Stock Turnover, 1919 161 E. Summary 163 (3). Yearly Amounts of Selling Expense in Relation to In- vestments in Fixtures per 100 Square Feet of Floor Space 164 A. Yearly Amounts of Selling Expense per 100 Square Feet of Floor Space and per $100 of Total Net Sales, for Stores Classified by Size, 1919 164 B. Summary 170 Yearly Amounts of Selling Expense in Relation to Expendi- tures for Advertising, for Stores Classified by Years, by Size, and by Location 170 A. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Size, 1919, 1918, and 1914 170 vii PAGE B. Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Size of City in Which Located, 1919 182 C. Summary 185 IV, WAGES AND S.MiARIES CHARGEABLE TO SELLING 187 1. Amounts of Wagres and Salaries for Stores Classified by Years, by Size, and by Location 187 A. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, 1919, 1918, and 1914 187 B. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores in 1919, 1918, and 1914, Classified by Size 189 C. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores in 1919, 1918, and 1914, Classified by Size of City in Which Located 189 D. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size and by Size of City in Which Located, 1919, 1918, and 1914 195 E. Summary 204 2. Yearly Amounts of Wages and Salaries in Relation to the Amounts of Stock Carried, for Stores Classified by Years and by Size 204 A. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, 1919, 1918, and 1914 204 B. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size, 1919, 1918, and 1914 210 C. Summary 226 3. Yearly Amounts of Wages and Salaries in Relation to the Amounts of Goods Sold per FuU-time Sales-person and to the Methods by Which Salesmen are Paid, for Stores Classified by Years, by Size, and by Location 226 (1). Yearly Amounts of Wages and Salaries in Relation to the Amounts of Goods Sold per Full-time Sales-person 227 A. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, 1919, 1918, and 1914 227 B. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size, 1919, 1918, and 1914 233 viii 0. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size and by Size of City in Which Located, 1919 250 D. Summary 256 (2). Yearly Amounts of Wages and Salaries in Relation to the Methods by Which Salesmen are Paid 258 A. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size, 1919 258 Yearly Amounts of Wages and Salaries in Relation to the Ex- penditures for Rent and Investments in Fixtures, for Stores Classified by Years, by Size, and by Location 263 (1). Yearly Amounts of Wages and Salaries in Relation to Expenditures for Rent per 100 Square Feet of Floor Space 263 A. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size, 1919 264 B. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size of City in Which Located, 1919 266 C. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size and by Size of City in Which Located, 1919 270 D. Summary 271 (2). Yearlj^ Amounts of Wages and Salaries in Relation to Investments in Fixtures per $100 of Total Net Sales 272 A. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, 1919, 1918, and 1914 272 B. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size, 1919, 1918, and 1914 274 C. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales, for Stores Classified by Amounts of Inventory per $100 of Total Net Sales, 1919 . . 285 D. Summary 290 (3), Yearly Amounts of Wages and Salaries in Relation to Investments in Fixtures per 100 Square Feet of Floor Space 291 ix PAGE A. Yearly Amounts of "Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size, 1919 291 B. Summary 295 5. Yearly Amounts of Wages and Salaries in Relation to Ex- penditures for Advertising, for Stores Classified by Size, by Location, and by Rates of Stock Turnover 295 A. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size, 1919 295 B. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size of City in Which Located, 1919. ... 298 C. Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Rates of Stock Turnover, 1919 301 D. Summary 304 V. EXPENDITURES FOR ADVERTISING 306 1. Expenditures for Advertising for Stores Classified by Years, by Size, and by Location 306 A. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Ex- pense, 1919, 1918, and 1914 306 B. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Ex- pense, for Stores in 1919, 1918, and 1914, Classified by Size 308 C. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Ex- pense, for Stores in 1919, 1918, and 1914, Classified by Size of City in Which Located 308 D. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Ex- pense, for Stores Classified bv Size and by Size of City in Which Located, 1919, 1918, and 1914 315 E. Summary 318 2. Yearly Amounts of Expenditure for Advertising in Relation to the Amounts of Stock Carried, for Stores Classified by Years, by Size, and by Rates of Stock Turnover 321 A. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Ex- pense, 1919, 1918, and 1914 321 X PAGE B. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Ex- pense, for Stores Classified by Size, 1919, 1918 and 1914 ;.... 326 C. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales, for Stores Classified by Rates of Stock Turnover and by Size, 1919 344 D. Summary 347 3. Yearly Amounts of Expenditure for Advertising in Relation to the Amounts of Goods Sold per Full-time Sales-person 348 A. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Ex- pense, 1919, 1918, and 1914 348 B. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of SelUng Ex- pense, for Stores Classified by Size, 1919, 1918, and 1914 351 C. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Ex- pense, for Stores Classified by Size and by Size of City in Which Located, 1919, 1918, and 1914 367 D. Summary 370 4. Yearly Amounts of Expenditure for Advertising in Relation to Expenditures for Rent and Investments in Fixtures, for Stores Classified by Years, by Size, and by Location . . . 372 (1). Yearly Amounts of Expenditure for Advertising in Re- lation to Expenditures for Rent per 100 Square Feet of Floor Space, for Stores Classified by Size of City in Which Located 372 A. Summary 374 (2). Yearly Amounts of Expenditure for Advertising in Re- lation to Investments in Fixtures per $100 of Total Net Sales 374 A. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Sell- ing Expense, 1919, 1918, and 1914 374 B. Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Sell- ing Expense, for Stores Classified by Size, 1919, 1918, and 1914 377 C. Summary 385 VI. OTHER SELLING EXPENSE 392 1. Yearly Amounts of Other Selling Expense, for Stores Classi- fied by Years, by Size, and by Location 392 xi PAGE A. Yearly Amounts of Other Selling Expense per $100 of Total Net Sales and per $100 of Total Selling Expense, 1919, 1918, and 1914 393 B. Yearly Amounts of Other Selling Expense per $100 of Total Net Sales and per $100 of Total Selling Expense, for Stores in 1919, 1918, and 1914, Classified by Size. . 393 C. Yearly Amounts of Other Selling Expense per $100 of Total Net Sales and per $100 of Total Selling Expense, for Stores in 1919, 1918, and 1914, Classified by Size of City in Which Located 393 D. Yearly Amounts of Other Selling Expense per $100 of Total Net Sales and per $100 of Total Selling Expense, for Stores Classified by Size and by Size of City in Which Located, 1919, 1918, and 1914, Combined 394 E. Summary 396 2. Yearly Amounts of Other Selling Expense per $100 of Total Net Sales and per $100 of Total Selling Expense, for Stores Classified by Amounts of Inventory per $100 of Total Net Sales, 1919, 1918, and 1914 397 3. Yearly Amounts of Other Selling Expense per $100 of Total Net Sales and per $100 of Total Selling Expense, for Stores Classified by Amounts of Sales per Full-time Sales- person, 1919, 1918, and 1914 398 4. Yearly Amounts of Other Selling Expense per $100 of Total Net Sales and per $100 of Total Selling Expense, for Stores Classified by Amounts Invested in Fixtures per $100 of Total Net Sales, 1919, 1918, and 1914 400 YII. RATIOS OP OPERATION FOR STORES CLASSIFIED BY RELATIVE RATES OF NET PROFIT PER $100 OF TOTAL NET SALES, 1919 402 VIII. CONCLUSION 406 IX. Index 409 Xll I. INTRODUCTION The Bureau of Business Research secured the data for this study from the books of the members of the Na- tional Association of Retail Clothiers by means of questionnaires. After completing its study of Costs, Merchandising Practices, Advertising and Sales in the Retail Distribution of Clothing, the Bureau felt that it would be unfortunate if the material on selling expense and expense ratios were left in its files unanalyzed. Ac- cordingly, after consulting with the trade as to the conditions which seem to determine the amounts of selling ex- pense under different conditions of store operation, certain tentative hypotheses were set up for the pur- pose of determining numerically the amounts of selling expense for stores under the conditions established, and of discovering, if possible, means by which they might be reduced. The hypotheses which proved to be of no significance were abandoned. The others have been fully tested out, and it is these with which the volume deals. The plan of the study is as fol- lows: It includes an analysis, first, of total selling expense in relation to sales and to total operating expense ; second, of the amounts of wages and salaries in relation to sales and to selling expense ; third, of the amounts spent for advertising in relation to sales and to selling expense; fourth, of other selling expense in relation to sales and to total selling expense; fifth, of ratios of store operation for stores classified according to the rela- tive rates of profits per $100 of net sales for the year 1919. In each of these major sections, with the exception of the part relat- ing to profits, an analysis is made of data for stores from year to year; for stores classified according to the amounts of stock carried, as indi- cated by the amounts of inventory or average stock in relation to sales; for stores classified according to the amounts sold per full-time sales-per- son and to the methods by which salesmen were paid in 1919 ; for stores classified according to the rental pay- ments per 100 square feet of floor space, and the amounts invested in fixtures in relation to sales and to square feet of floor space ; and, finally, for stores classified according to the amounts spent for advertising in re- lation to sales. The Table of Con- tents outlines more fully the plan of the entire discussion. In order accurately to measure the amounts of selling expense and of its components, two types of units are used : First, those in which the dif- ferent elements of expense are ex- pressed in terms of sales, of total ex- pense, or of selling expense, as the case may be, and second, those in which conditions other than sales, selling expense, or total expense are reduced to a common basis. These measures, as they are used in the text discussion and as computed, are shown in the Summary. The pur- pose of expressing the amounts in various forms is to reduce, as nearly as possible, the different conditions of store operation to a unit basis. It has not been thought necessary, in view of the use of simple and com- posite units, to print the frequencies with which the different amounts of expense occur. The classification is detailed and the units of comparison are adjusted so as to make this largely, if not wholly, unnecessary. ^Moreover, to have printed the frequencies would have unduly extended the treatment. The analj'sis has been made with two points of view in mind : First, to determine standards or norms of ex- pense distribution and second, to establish the conditions controlling the amounts of expense and to meas- ure the extent to which they may be reduced. The analysis is necessarily detailed, but no excuse needs to be offered for this in view of the purpose which the Bureau, had in making the study. The features which distinguish "■■ from those in similar fields are number of instances included scope of the treatment, ar method follow^ The stud^ undertaken seriously, wi thought other than of subj a scientific analysis the data and of presenting +he facts ^^ ner most helpful to those wh terested in this field of dist It is believed that the volume information on the basis merchants may control their tions, test the reasonableness .^ expenses, and thereby actual^ them. nf: :T JI. SUMMARY It is difficult to summarize a study of this character within brief com- - ' The retail stores which are ied differ in size and location, in Viounts of their expenses, and in '^portant respects. In order to '^ct^unt of these-* differences, the '^'on and analysis are neces- Yailed and, "in some instances, ' ^^pes of fa '^s have been deter- ' First, the actual expense Jr standards for stores under ^conditions of operation, and ,ii^e tendencies for the amounts 3ase or decrease from year to -'Uith the size and location of '''S, and with varying condi- operation. Simply to have ed the amounts of expense ores as classified would have an extensive summary and e resulted in useless dupli- 4oreover, to have specified pense tendencies would have ed more space than could be 1 to this phase of the study. 'ingly, all that is attempted in jmary is to indicate the more ant amounts of expenditure o enumerate in a general way a of the expense tendencies which . •'■e been determined. While the umary is complete within itself, it •it not to be considered as a sub- te for the detailed discussion. ^ 3 use of the Index, those who are ^ ■ sted may readily turn to the ..ts of expenditure for stores ified in different ways and, by following the text in connection with the tables, determine the limitations and conditions which govern the ex- pense tendencies. 1. — UNITS OF MEASUREMENT USED IN THE TABLE AND TEXT. In order accurately to express the amounts of expenditure for selling expense and its components a variety of units has been used. These units are set out in the table on page 4 under two headings: First, in the form of statements, as used in the text and tables, and second, as for- mulae showing the method by which they are computed. The common bases of comparison are two: total net sales and selling expense. With these, however, are combined certain other measures, described in the table, the purpose being to reduce to a unit basis different conditions of opera- tion. To illustrate: Total selling ex- pense and its components are ex- pressed in terms of $100 total net sales. This is equivalent, of course, to expressing them as percentages of sales. In order, however, to provide for the conditions under which sales are made, a more complex measure is used which will reduce the sales to a unit basis in terms of the amount sold per sales-person. Expressed in this form, the unit of expense becomes : Selling expense per $100 total net sales per $1,000 sold per full-time sales-person. In this manner only is it possible to reduce to a uniform basis stores of different size with dif- ferent numbers of sales-people and with various amounts sold per person. If merchants will study the ex- pense ratios which have been de- veloped and compare them with sim- of MAssurenent — S IVFLE UHITS- Sallina Expflnee per $100 of Total _ Hot S»IeB niscia oo'») tagoB ft SalarlM, Advertising, We^ee ft &«lu>les. Advertising* or other Selling Expense per ftlOO of Selling Expense _ W ft S, Adv.. CiSdn go's) T£(ln oc's) _ Orose llergln msdn OO's) = ISE-Coet of lldee. net Profit Saleo per tlOO of Advertlsljig TllSdn co'e) Oross UarAln— TE— Kleo* Cbargea-^UlBe. Incoisa TlfS VI k 5lln Oo's) TKS Mv.lln 55 V) Sales per Pull*tlj3e Sales-person = — FtJfTndo'lT SE sq Pt.dn OO'e) sq W. (in oo's) Flxt. Acct. Sq. Ft. (In OO'a) COMPOEITS DNITS £rt)«isa(E£, V k S» or AdT. ) per (100 of Total Met Saloa par AK>\jQt Sold per $1 of InTentory Balline Expense per $100 of Total Net Sale I per Anount Sold per $1 of Average Inventory Averastt Inventory £]cpsn£e(SE, W & B, or Adv.) per $100 of Total Het Sales per Stock Turnover Stock Turnover Coet of Kerch&ndle Expense (« fc 6 or Adv.) per $100 of Selllog Bxpenae per Stock Turnover. ■niSCin OO'i) ' IBT. BJ5{la 66 ' ») ^ Av. Inv. " 1918 InT.-H91P Inv. TNS(ln OO'a) Coat of Mdae, ttcpenaetSE, W ft S, or Adv.) per $100 of Total net Salea per 51,000 of Sales par Pull-tlne Sales- person Boiling Ejcpenso per $100 of Total Expense (ff ft S or Adv.) per $100 of Selling Kxpense per $1»000 of Salea : per PuU-tlJne Sales-peraon - E:tpenfle TNE{1d OOft'el - THS(in OO'e) PTSP E3cpenBe{SE» W ft S, op Adv.) per $>100 of Total Met Sales per Sales per Sq. Pt* of Floor Space — Expense _ ^ THS ~ TKSdn OO's) Sq. Ft. Expense (W ft S or Adv.) per $100 of Selling Expense per Salee per Sq* Pt. of Floor Space ABBRBVIATIOMS USED Invcntorle Cost of Hd8e...CoBt of merchandise sold Plxt. Acct. •.*. Amount Invested in fix* nSP.. .*...... .Kumber of fxill-tlsie saJes-people Inv Inventory taken at the eisd of the year 06£ Other selling expense Purch Ptu'chases Sq« Ft... ...Total nxinber of square feet of floor Bpace SE Total celling expense TE Total operating expense THS Total net sbIos Turn Number of tijnes stock is turned n & 3 WagOB ard BalBrle& This unit is used only as an illustra- tion. But the same principles apply to all the units and a similar explana- tion justifies their use. ilar ones in their own businesses, they cannot help but profit by the results of this study. An analogy will serve to make the point plain. If one were placed in a foreign country with no knowledge of the unit of value, it would be impossible for him to com- prehend the prices of the most com- mon articles of consumption without first expressing them in terms of his own price-unit and then converting them into the price-unit of the for- eign country. That is, some standard must be used. Until recently, retail establishments have had no standards by which they could measure their own operating expenses and their merchandising practices. One pur- pose of this volume in the field of sell- ing expense is to supply such stand- ards. I. AMOUNTS OF SELLING EXPENSE AND ITS COMPONENTS, WAGES AND SAL- ARIES, ADVERTISING, AND OTHER SELLING EXPENSE, FOR STORES CLASSIFIED BY YEARS, BY SIZE, AND BY LOCATION. In the following summary of sell- ing expense and its components, the amounts are expressed in terms of sales, total expense, and selling ex- pense, use being made of the simple and complex units which are de- scribed above. The tables and charts refer only to the conditions named therein. It is impossible briefly to set out all of the conditions which determine the amounts of selling ex- TABLE A eu«ifi«a Total Hot S«lea Classlflsd Soiling ficpoiuos Amounts of Clasairied Selling Expenses per $100 lof Total Ket Sale* 1919 19ia 1914 (in OOO'b) Actual 1 $0 $2 Oraphl* $4 $6 $3 $10 $12 1 Graphle Actual 1 $9 $3 $4 $6 $8 $10 $12 $1 1 Oraphlo Actual 1 1 $0 $2 $4 $6 $8 $10 $12 $14 Total $10.44 $10.94 $11.48 7.52 2.61 I.J5 9.1s 6.37 1.S6 0.92 Wagea 1 Salarloa Advertising Other 6.98 2.22 1.24 7.37 2.22 l.SS 6.09 Avoraco m — Total 6.77 3- tJniSar $40 Wflgea h. Salarlea Aivertlaln^ Other 4.50 1.46 0.81 s.6e 1.S3 0.88 7 Total 7.64 ».43 6. 55 1.65 1.23 11.14 7.58 2.23 1.53 - TIaga* It Salaries Advertising Other 6.50 1.35 0.81 t40 to $S0 ■ ^ Total 10.48 10.88 11. S5 - Wages !i Salaries Advertising Other 7.18 2.04 1.26 7.1a 2.41 1.38 7.66 2.96 l.SS |8o to tieo ■■ I" Total U.44 12. sa 13.93 Wagea h. Salaries Advertising Other 7.40 S.6S 1.S9 8.4« 2.59 1.S5 8. 48 5.62 i.es |180 & OTOP — — — pense and its components, and the reader is urged not to be contented with reading only the Summary, but to consult the detailed treatment under the respective headings. In the body of the text, different groups of stores are used, the pur- pose being to utilize all the informa- tion which is available for the com- bined and the individual years. In the Summary, however, in most cases, the tables show data for the three years 1919, 1918, and 1914, combined. In some instances it is possible to use but one year and in such cases both the tables and the dis- cussion indicate this fact. In the present section and in Tables A, B, and C, the amounts of selling expense are expressed in terms of sales. Subsequent discussion relates these amounts to total and to selling expense. A. — Amounts of Selling Expenses per $100 Total Net Sales, for Stores Classified hy Size and hy Loca- tion. The analysis of selling expense and its components is based upon the records of 154 stores for the years 1919, 1918, and 1914. In 1914 selling expense constituted $11.48 per $100 total net sales. In 1918 it was $10.94 ; in 1919, $10.44. In 1914, $7.52 of the $11.48 was spent for wages and salaries, $2.61 for advertising, and $1.35 for other selling expenses. In 1918 these amounts were $7.37, $2.22, and $1.35. In 1919 they were, re- spectively, $6.98, $2.22, and $1.24. For the combined years, out of a total selling expense of $10.82, $7.22 went to wages and salaries paid to salesmen, $2.30 to advertising, and $1.30 to other selling expenses. Table A shows the amounts of total selling expense and its components for stores classified by size, for the years 1919, 1918, and 1914. Table A shows that the amounts of selling expense and of its components in terms of sales in each of the years increase as the stores increase in size. Moreover, this condition obtains for the combined years as is shown in Table B. In these years, total selling expense for the stores with annual sales under $40,000 is $8.49. For those with sales of $40,000 to $80,000, it is $9.34; for those with sales of $80,000 to $180,000, it is $10.89 ; and for those with sales of $180,000 and over, $12.05. The amounts of total selling expense and its constituent parts are shown in Table B. For the combined years the total selling expense per $100 total net sales is larger for the stores in the large cities — those with population of 40,000 and over — than for those in the small cities — those with popula- tion under 40,000. The average for the stores in the first group is $12.17 and for those in the second group, $9.40. Moreover, for all stores, each element of expense is larger for the stores in the large, than for those in the small cities. When the stores are classified b}' size, total selling expense for each group is larger for the stores in the large than for those in the small cities. This condition generally obtains for each element of expense. TABLE B Cla30iriel tlO.82 $9.40 6.6B 1.7B 0.8S 8.M 5.73 l.M O.SZ Anngs Wegee k Salaries Advertising other T.22 2.50 l.SO 7 7.72 S.80 1.65 10.53 — Total e.4s Ikidar $40 Wegsa k Selariee Admrtlalng Otber 6. SI 1.70 0.88 "^^"" 8.13 1.77 0.49 ■ *ot«l 9.94 e.76 e.3o 1.60 0.86 ll.iS - - •40 to $30 ■agea k Salarlta Aa»ertlBlng Other 6. SI 1.72 1.11 7.03 e.24 i.se 7 Total io.e» lO.U 12.32 7.36 2.81 2.05 tso to tieo T,'aEoe ft £ftlarlf8 AdverllBlng Other 7.2« S.ti 1.90 - 7.U l.ae 1.02 7 — Tctr.l 12.0S 10.47 7.84 1.68 0.8S ilB'j & ov-,r nbgoB ft Sclarloa Ad»ertlBlng Other 7.84 8.71 l.SO - - 7.84 2.85 1.S7 — The amounts for the stores in the two city-groups are given in Table B. In Table C the amounts of selling expense and of its components for stores classified by size are shown per $100 total net sales expressed in dif- ferent units. The table gives the number of stores to which the figures apply, the years which are involved, and the table numbers in the text in which the detail, under more elab- orate classifications, may be found. It is imnecessary to indicate the amounts, although for summary pur- poses it may be well to indicate their direction of change. Section I of the table shows that the amounts of sell- ing expense, of wages and salaries, of advertising, and of other selling ex- pense increase as the stores increase in size. To this general rule there are no exceptions. B. — Amounts of Selling Expenses per $100 Total Net Sales per Stock Turnover, for Stores Classified by Size. Section II of Table C shows the amounts of selling expense, wages and salaries, and advertising per $100 total net sales per stock turnover. As the stores increase in size these amounts increase. The result of ex- pressing them on a per-turn basis is to modify the rate at which the ex- penses increase for stores of increas- TABLE C Aaoiuti ir Cluitriod S«Ulef IxpctiM I II III IV V CUsslflod Total (•t Salol (Is OOO'l) *tr tlOO of Total lot Salo* rar lloo of Total lat Sales per Stock TumoTar far $100 of Total Hat Sal^s par Aabunt Sold per $1 of InTectorj ?ar ♦lOO of Total lat Sa'.ei per ll.OOO of Sales per Pull-tiaa Salea.paraoo Per tlOO or Total I*t Ealaa fr SilM yar Elii4 otbsr Tota SaUlcg fitpenea Wajal t Salarlae IdTor- tliUig Total Sailing lagai k Salarlaa tlalD« Total Ballliic Bxpenao Wagaa t Salaries AdTer- tlsls( Total Sailing bpana Wage* h Salaries Averts tio.oz r.M »2.S0 tl.so »4.C2 13.03 11.02 t4.oe ♦2.74 ♦0.87 ♦0.67 ♦0.4S ♦0.14 ♦0.39 ♦0.2« »« to «ao *ao to tiso $U0 i o<«r 8.49 9.M 10.69 U.OS S.91 6.gi 7.M 1.70 1.72 a.M t.n 0.S8 lAl 1.90 1.90 4.00 4.14 6.9S 4.0« Z.S4 «.9e 3.61 2.93 0.78 0.79 1.09 1.00 4.74 4.26 4.39 3.38 3.31 3.00 8.90 2.21 0.»4 0.77 0.94 0.76 0.82 0.69 0.69 0.60 0.98 0.48 0.49 0.39 0.19 0.12 0.14 O.IS 0.49 0.3S 0.42 0.33 0.31 0.27 0.28 0.21 ■iKSMr or Btcrt-TWra 4 I 7". 4hab«r Xeaxi HuEber of Store-yeari las 3 yra. 462 216 S yra. 462 286 5 yra. 462 166 191S 26S 259 1919 269 168 3 yra. 438 261 S jra. 436 three years, 1914, 1918, and 1919, combined, for 154 stores classified by size and further by the size of the city in which they are located. The proportions of total selling expense attributable to wages and salaries for all groups of stores, except one, when classified by size, are less in stores in the small than in those in large cities. The proportions of total selling ex- pense which are attributable to adver- tising are higher for the stores in the large cities for each size-group except one. The same condition characterizes the miscellaneous sell- ing expense. For all of the stores in the small cities, roughly 71 per cent, of the selling expense is paid out in the form of wages and salaries, 19 per cent, in the form of advertising, and 10 per cent, as other selling expense. In stores in the large cities, the cor- responding percentages are 63, 23, and 14. In Table E, Section I, the amounts of wages and salaries, advertising, and other selling expenses per $100 of selling expense are sho^vn, for the combined years, for 154 stores, clas- sified by size. As the stores increase in size, wages and salaries decrease, while advertising and other selling expense increase. Moreover, this condition obtains for each of the years. J. — A'mou7its of Wages and Salaries and of Advertising per $100 Selling Expense per Stock Turn- over, for Stores Classified hy Size. In Section II of Table E the amounts of wages and salaries and of advertising per $100 of selling ex- pense per stock turnover for 1919 are shown for 269 stores, classified by size. The amounts of both expenses de- crease as stores increase in size. The direction of change in the amounts of wages and salaries, when expressed 16 in this form, agrees with that shown for wages and salaries when measured in terms of selling expense alone. The direction of change for advertising, expressed in this unit, is inverse to that shown for the amounts in terms of selling expense alone. K — Amounts of Wages and Salaries and of Advertising per $100 of Selling Expense per $1,000 Sold per Full-tvme Sales-person, far Stores Classified by Size. Table E, Section III, shows the amounts of wages and salaries and of three years holds for each year treated separately. 3. — AMOUNTS OF SELLING EXPENSE AND ITS COMPONENTS, WAGES AND SAL- ARIES AND ADVERTISING, IN RELA- TION TO THE AMOUNTS OF STOCK CARRIED. The method of classifying the stores, the expenses of which are summarized in this section, is accord- ing to the amounts of inventory which they had per $100 of total net sales. In view of the fact that each of the elements of expense is a func- TABLE F Aaujonts of Classified Selling Expense inount of loTsntory par $100 of I II III Total Rat Salas Far $100 of Total Net Sales Per $100 of Total Bet Sales per Stock Tamovor Fer $100 of Total Net Sales per AjBount Sold per $1 of Inventory Total Selling Srponse Wages k Salaries Advertising Total Selling Kxponee Wages fe Salaries Advertising Total Sailing Expense Wages k Salaries Advertising Averaga $9.S7 #6.59 $1.69 $4.14 $2.98 $0.76 $4.26 $5.00 $0.77 Under IBO tZO to $40 (to to $60 $60 k over 7.57 9.21 e.ei 8.57 5.10 6.10 6.94 6.97 1.22 1.77 1.67 1.75 1.59 5.24 \ 5.25 0.85 2.24 5.89 0.J5 0.67 0.85 1.29 2.76 4.81 6.69 0.89 1.85 5.47 4.88 0.21 0.5S 0.84 1.25 Table Number Years Huaiber of Store-years 22 5 7TB, 16S 139 5 yrs. 165 252 S yrs. 166 59 1919 106 144 1919 106 245 1919 106 26 5 yrs. 165 145 5 yrs. 165 856 5 yrs. 165 advertising, expressed per $100 of selling expense for each $1,000 sold per full-time sales-person, for stores classified by size. That is, the amounts are reduced to a unit basis of selling expense and of salesmen's sales. Ex- pressed in this form, both amounts decrease as stores increase in size. The data refer to the three years 1914, 1918, and 1919, combined. The direction of change shown for the tion of the size of the stores, a single group, viz., stores with sales of $40,- 000 to $80,000, is selected for pur- poses of summary. A. — Amounts of Selling Expenses per $100 Total Net Sales, for Stores Classified by Amounts of Iiv- vefitory per $100 Total Net Sales. For a group of stores with annual sales of $40,000 to $80,000, as shown 17 in Table F, Section I, the amounts of selling expense, of wages and salaries, and of advertising, based upon three years' experience, increase as the in- ventories per $100 total net sales in- crease. For other size-groups clas- sified by inventories in relation to sales, the amounts of total selling ex- pense for the combined years increase. The amounts of wages and salaries and of advertising, however, are un- certain as to direction of change. AVhen the stores are classified, irre- spective of size, but according to the amounts of inventories in relation to their sales, each element of expense, and also the total, decreases with in- creasing inventories. Moreover, the conditions for the three years gener- ally hold for each of the individual years. B. — Amounts of Selling Expenses per $100 Total Net Sales per Stack Turnover, for Stores Classified by Amounts of hiventory per $100 Total Net Sales. Table F, Section II, shows for 106 stores, having sales of $40,000 to $80,000 in 1919, the amounts of sell- ing expense, wages and salaries, and advertising, measured in terms of $100 sales per stock-turnover. The stores are classified by the amounts of inventory per $100 total net sales. As the inventories increase in size, the different expenses also increase. That is, they are relatively low in the stores with low inventories. This con- dition also holds for stores in other size-groups and for all stores, irre- spective of size. C. — Amounts of Selling Expenses per $100 Total Net Sales for the Amount Sold per $1 of Inven- tory, far Stares Classified by AmouJits of Inventory per $100 Total Net Sales. Table F, Section III, shows for a group of stores for the three years combined, the amounts of selling ex- pense, wages and salaries, and adver- tising for stores having sales of $40,- 000 to $80,000, classified by the amounts of their inventories per $100 total net sales. As the size of the in- ventories expressed in this form in- creases, the amounts of each of the expenditures increase. Moreover, this condition holds for the stores in the other size-groups and for all stores, irrespective of size. It also holds in each of the different years. From year to year, each of the different ele- ments of expense, expressed in thi^ form, decreased. D. — Amounts of Selling Expense per $100 Total Expense, for Stores Classified by Amounts of Inven- tory per $100 Total Net Sales. Table G, Section I, shows the amounts of selling expense per $100 of total expense for a group of stores with sales from $40,000 to $80,000, for the three years 1914, 1918, and 1919, combined, classified by the amounts of inventory per $100 total net sales. As the size of the inven- tories increases, the amounts of sell- ing expense decrease, if the group of stores having inventories less than $20 per $100 total net sales is omitted. 18 TABLE G Amounts of Total Selling Expense Amounts of Classified Selling Expense Amount of Inventory I II III per $100 of Total Net Sales Per $100 of Total Expense Per $100 of Selling Expense Per $100 of Selling Expense per Stock Turnover Wages & Salaries Advertising T/ages & Salaries Advertising Average $46.41 $70.27 $18.06 $39.96 $10.22 Under $20 $20 to $40 $40 to $60 $60 & over 37.62 43.27 46.39 45.13 69.21 66.23 72.20 72.83 16.56 19.20 17.32 18.34 14.50 31.45 49.70 5.64 9.42 10.91 Table Number Years Number of Store-years 32 3 yra. 165 149 3 yrs. 165 241 3 yrs. 165 153 1919 106 246 1919 106 A similar condition holds for the stores in each of the other size-groups, as well as for stores classified by in- ventory, but without relation to size. iMoreover, the condition established in this table holds for each of the three years 1914, 1918, and 1919. E. — Amounts of Wages and Salaries and of Advertising per $100 Selling Expense, for Stores Classified hy Amounts of Inven- tory per $100 Total Net Sales. In Table G, Section II, the amounts of wages and salaries and advertising are shown per $100 selling expense for a group of stores, for the three years 1914, 1918, and 1919, combined, classified by the amounts of inven- tories per $100 total net sales. As the amounts of inventory in relation to sales increase, wages and salaries in- crease, while advertising expenditures do not show a uniform tendency either to increase or to decrease. For other groups of stores, classified by size, the direction of change in the amounts of wages and salaries and of advertis- ing is uncertain. For all the stores, irrespective of size, the amounts of wages and salaries increase, while the amounts of advertising tend neither to increase nor to decrease as the in- ventories in terms of sales increase. In each of the different years for both elements of expense, the nature of the change with increasing inventories is uncertain. 19 F. — Amounts of Wages and Salaries and of Advertising per $100 of Selling Expense per Stock Turn- over, for Stores Clmsified hy Amounts of Inventory per $100 Total Net Sales. In Table G, Section III, the amounts of wages and salaries and of advertising per $100 selling expense are shown for 106 stores in 1919, clas- 4. — AMOUNTS OF SELLING EXPENSE AND ITS COMPONENTS, WAGES AND SALARIES, ADVERTISING, AND OTHER SELLING EXPENSE, IN RELATION TO THE AMOUNTS SOLD PER FULL- TIME SALES-PERSON. Throughout this part of the Sum- mary, a single group of stores having sales between $40,000 and $80,000, classified by the amounts sold per TABLE H Amounts of Classified- Selling Expense Amoimt of I II III Salee per Pull-tlme fiBles-person (In OOO's) Per $100 of Total Ret Soles Per $100 of Total Het Sales per Stock Turnover Par $100 of Total Hat Sales per $1,000 of Sales per Pull-tlme Sales-person Total Selling Expense Bagea ft Salarlea Advertising Total Selling Expense Wages k Salaries Advertising Total Selling Expense Wages k Salaries Advertising Avernga $9.20 $6.45 $1.67 $4.17 $3.00 $0.76 $0.69 $0.48 $0.12 Dndar Jl2 il2 to tl6 $16 to $24 $24 to $32 $32 t OTor 10.82 9.45 7.62 7.15 4.05 7.85 6.51 5.U 5.25 2.44 1.92 1.71 1.42 1.51 0.61 6.03 5.07 3.66 3.42 2.66 4.43 5.70 2.61 2.61 1.56 0.95 0.98 0.62 0.60 0.62 1.08 0.68 0.42 0.26 0.09 0.79 0.47 0.28 0.19 0.06 0.19 0.12 0.08 0.06 0.02 Table Muaber Voar Kraiber of Btore-ycara 49 3 yrs. 163 162 3 jrs. 163 255 3 yra. 163 46 1919 103 158 1919 103 252 1919 103 49 3 yra. 163 162 3 yra. 163 255 3 yrs. 163 sified by the amounts of inventories per $100 total net sales. As the inven- tories in relation to sales increase, both wages and salaries and advertis- ing, as proportionate parts of selling expense, when reduced to a stock turnover basis, increase. This condi- tion holds for the stores in each of the other size-groups, as well as for all stores, when classified according to inventory in relation to sales, but irrespective of size. Data are avail- able in this form for 1919 only. full-time sales-person, is used. The different parts of selling expense and the total are expressed in simple and composite units, the purpose being to reduce the varying conditions in these stores to a unit basis, A. — Amounts of Selling Expenses per $100 of Total Net Sales, for Stores Classified hy Amounts Sold per Full-time Sales-person. For a group of stores for the com- bined years 1914, 1918, and 1919, 20 with annual sales of $40,000 to $80,- 000, as shown in Table H, Section I, the amounts of selling expense, of wages and salaries, and of advertising expenditures per $100 total net sales decrease as the amounts sold per full- time sales-person increase. Moreover, this condition holds for the stores in each of the different size-groups. When the stores are classified by loca- tion the amounts of total selling ex- pense and of wages and salaries de- crease as the amounts sold per full- time sales-person increase. The direc- tion of change for advertising is un- certain. B. — Amotmts of Selling Expenses per $100 Total Net Sales per Stock Turnover, for Stores Classified hy Amounts Sold Per Full-time Sales-person. Table H, Section II, shows for a group of stores for 1919, having sales of $40,000 to $80,000, the amounts of selling expense, of wages and salaries, and of advertising per $100 of total net sales per stock turnover, for stores classified by the amounts sold per full-time sales-person. As the amounts sold per full-time sales-person in- crease, the total selling expense and its components, wages and salaries and advertising, expressed in this unit, decrease. Moreover, this con- dition holds for the stores in each of the other size-groups, treated in the text, as well as for the stores classified without respect to size, but accord- ing to the sales per sales-person. When the stores are classified by loca- tion, the amounts of selling expense and of wages and salaries decrease. The amounts of advertising are un- certain as to direction of change. How nearly these conditions hold when the stores are classified more elaborately will be seen by consulting the part« of the text having to do with these topics. C. — Amounts of Selling Expenses per $100 Total Net Sales for Each $1,000 Sold per Full-time Sales- person, for Stores Classified hy Amounts Sold per Full-time Sales-person. In Table H, Section III, the amounts of total selling expense, of wages and salaries, and of advertising per $100 of total net sales for each $1,000 sold per full-time sales-person are shown for a group of stores with sales of $40,000 to $80,000, for the three years combined, when the stores are classified by the amounts sold per full-time sales-person. When the amounts are expressed in this unit, the total, as well as the component parts, wages and salaries and adver- tising, decreases as the sales per full- time sales-person increase. This con- dition also holds for the stores in each of the different size-groups and for the total stores, when classified in this form, but irrespective of size. More- over, in each of the different years, each element of selling expense, meas- ured in this unit, decreases as the sales per full-time sales-person in- crease. When the stores are classified by location into two city-groups, the amounts of each element of expense and the total also decrease as the sales 21 per full-time sales-person increase. The significance of such decreases with increased activities of salesmen is brought out more fully in the text. It is, however, of interest at this point to suggest the savings in the different elements of expense which accompany the increased activ- ities of salesmen. To increase the amounts of goods sold per salesman is one of the many ways in which operating expenses in relation to sales may be reduced. TABLE I Ajnouzita of Total Selling B^enae Anount of 1 11 III Sales por Full-tiue Salea-psrson (in OOO'a) Per ilOO of Total Expense Per ClOO of Total Expense par Stock Turnover Per $100 of Total Expense per $1,000 of Sales per Pull-tine Sales-person ATSrage 1»;.07 $23.33 $3.44 tJnder $12 $12 to $16 $1« to $24 $24 to $52 $32 & over 50. M 45. J7 41.61 53.65 55.72 28.05 27. »5 ,21.70 19. S3 10.62 5.04 5.29 2.27 1.45 0.84 Table number Years Number of Store-yeare 59 5 yrs. 165 57 1919 103 59 3 yrs. 163 D. — Amounts of Selling Expense per $100 Total Expense, for Stores Classified hy Ammmts Sold per Full-time Sales-person. Table I, Section I, shows the amounts of selling expense per $100 total expense for a group of stores for the three years 1914, 1918, and 1919, combined, which had sales between $40,000 and $80,000 per year. The average amounts are shown for these stores when classified by the amounts sold per full-time sales-person. As such amounts increase, selling ex- penses, as proportionate parts of total expense, decrease. The same condi- tion holds for the stores in the other size-groups, treated in the text, and also for all the stores when they are classified in this form, but without respect to size. In each of the differ- ent years, 1914, 1918, and 1919, moreover, the amounts of selling ex- pense as proportionate parts of total expense decrease with increasing sales per full-time sales-person. E. — Amounts of Selling Expense per $100 Total Expense per Stock Turnover, for Stores Classified hy Amounts Sold per Full-time Sales-person. Section II of Table I shows the amounts of selling expense per $100 of total operating expense reduced to a per turn basis. The stores included are those having sales of $40,000 to $80,000, and the basis of classification is the amount sold per full-time sales- person. As the amounts increase, selling expense expressed in this man- ner decreases. This condition holds for the stores in the other size-groups and also for the stores as a whole, classified in this form, but irrespective of size. F. — Ammints of Selling Expense per $100 Total Expense per $1,000 Sold for Each Full-Time Sales- person, for Stores Classified by Amounts Sold per Full-time Sales-person. Table I, Section III, shows the amounts of selling expense for $100 22 total expense for each $1,000 sold per full-time sales-person. The details apply to a group of stores having sales of $40,000 to $80,000, when clas- sified according to the amounts sold per full-time sales-person. As these amounts increase, selling expenses ex- pressed in this form decrease. The table refers to a single size-group for the three years combined. In each of the other size-groups and for all the stores in the combined and in the individual years, however, the same condition holds. Moreover, from years to year, the amounts decreased. Certain modifications of these conclu- sions must be made for stores, when they are classified not only by size, but also by location. These are pointed out in the body of the text. G. — Amounts of Wages and Salaries and of Advertising per $100 Selling Expense, for Stores Clas- sified by Amounts Sold per Full- time Sales-person. Table J, Section I, shows for the combined years 1914, 1918, and 1919, the amounts of w^ages and sala- ries and of advertising per $100 of selling expense for a group of stores with sales of $40,000 to $80,000. The basis of classifying the stores is the amount sold per full-time sales-per- son. As the sales per sales-person in- crease, the amounts of wages and sal- aries decrease and the amounts of advertising increase. For the stores in the other size-groups, the same con- dition obtains for wages and salaries, TABLE J Amounts of Classified Selling Expense Amount of Sales per Pull-tlme Sales-person (In OOO's) I II III Per $100 of Selling Expense Per $100 of Selling Expense per Stock Turnover Per $100 of Selling Expense per $1,000 of Sales per PuU-tima Sales-person Wages & Salaries Advertising Wages & Salaries Advertising Wages & Salaries Advertising Avorago $70.15 $18.19 $39.96 $10.16 $5.24 $1.36 Under $12 $12 to $16 $16 to $24 $24 to $32 $32 & over 72.53 68.95 67,07 73.4& 60.63 17.76 18.07 18.65 21.08 20.06 49.01 42.96 39.59 36.40 31.26 10.51 11.43 9.44 8.45 12.32 7.25 4.99 3.66 2.68 1.43 1.78 1.31 1.02 0.77 0.47 Table HTunber Years Number of Store -years 168 3 yrs. 163 261 3 yrs. 163 166 1919 103 259 19a9 103 168 3 yrs. 163 261 3 yra. 165 23 while the direction of change is un- certain for the amounts of advertis- ing. When all the stores are classified in the form shown in the table, the amounts of wages and salaries de- crease, and the amounts of advertis- ing increase. These generalizations are based upon the averages for three years. In a general way, however, the condition shown in the table for the combined years also holds in the different years. When the stores are classified by location, it is impossible to generalize as to the direction of change in the amounts. The reader is advised to consult the text treatment of this matter both for the actual amounts and for the nature of the change with increasing amounts sold per full-time sales-person. H. — Amounts of Wages and Salaries and Advertising per $100 Selling Expense per Stock Turnover, for Stores Classified hy Amounts Sold per Full-time Sales-person. Table J, Section II, shows for the year 1919 the amounts of wages and salaries and of advertising per $100 selling expense per stock turnover for a group of stores which had sales from $40,000 to $80,000. The averages apply to stores classified according to the sales per full-time sales-person. As such sales increase, wages and sal- aries expressed in this unit decrease, while the direction of change for ad- vertising expenditures is uncertain. For each of the other size-groups, as well as for all of the stores, the same conditions obtain. It is well, in this connection, to consult the detailed text treatment for the amounts as well as the nature of the change under dif- ferent conditions of store operation. /. — Amounts of Wages and Salaries and Advertising per $100 Selling Expense for Each $1,000 Sold per Full-time Sales-person, for Stores Classified hy the Amounts Sold per Full-time Sales-person. In Table J, Section III, the amounts of wages and salaries and advertising are shown per $100 of sell- ing expense for $1,000 sold per full- time sales-person. By expressing the amounts in this form, the different conditions of store operation are re- duced to a unit basis. For the groups of stores under consideration, as the amounts sold per full-time sales-per- son increase, the expenditures for wages and salaries and for advertis- ing decrease. Moreover, this condition holds for the stores in the other size- groups as well as for the stores as a whole, when classified by the amounts sold per person. The condition shown in the table for the combined years also holds in each of the individual years. From year to year, the amounts of both expenditures de- creased. For the direction of change in the amounts for the stores when classified by location, the reader is referred to the text treatment. 5. — AMOUNTS OF SELLING EXPENSE AND ITS COMPONENTS, WAGES AND SAL- ARIES AND ADVERTISING, IN RELA- TION TO EXPENDITURES FOR RENT. The method of classifying the stores, the expenditures of which are here summarized is according to the 24 TABLE K AnountB of Claaalf led Selling Expense Amounts of Wages & Salaries Rent per 100 Bq. Pt. 1 II III IV of Ploop Bpace Per ?100 of Total Net Sales Per $100 of Total Het Sales per Sales per Sq. Pt. Per $100 of Selling Expense Per $100 of Selling Expense per Sales per Sq. Pt. Totttl Selling Expense V.agee & Salaries Total Selling Expense Wages & Salaries Average $7.15 $5.09 $0.38 $0.27 $71.31 $3.82 Under $20 $20 to $40 $40 to $60 $60 & over 6.63 6.33 7.55 8.44 S.Ol 4.41 5.42 6,00 0.6S 0.34 0.35 0.28 0.50 0.23 0.25 0.20 75.57 69.61 71.73 71.10 7.50 5.69 3.30 2.33 Table H\:iiiber Year Humber of Store-yeaps 77 1919 113 184 1919 113 77 1919 113 184 1919 113 185 1919 U3 185 1919 113 expenditures for rent per 100 square feet of floor space in 1919. In view of the fact that the different elements of expense are controlled in part by store location and by the amount of floor space utilized, it is thought worth- while to summarize briefly the part of the discussion which relates to this topic. While it is impossible ade- quately to deal with this subject in a summary, certain general conclusions of the treatment may be summarized for a single group of stores. For this purpose, 113 stores having sales of $40,000 to $80,000 in 1919 are used. A. — Amounts of Selling Expensed per $100 of Total Net Sales, for Stores Classified hy Amounts of Rent Paid per 100 Square Feet of Floor Space. In Table K, Section I, the amounts of total selling expense and of wages and salaries per $100 total net sales are shown for 113 stores having sales of $40,000 to $80,000 when the same are classified by the rental expendi- tures per 100 square feet of floor space. As the rents, expressed in this form, increase, total selling expense and wages and salaries in relation to sales increase. Moreover, this condition, so far as the total selling expense is con- cerned, also holds for the stores in the other size-groups. The direction of change for wages and salaries for the other groups is uncertain. For all the stores, irrespective of size, the amounts of wages and salaries tend to increase, while those of total selling expense are uncertain as to direction of change. When the stores are clas- 25 sified by location, and by rental pay- ments per 100 square feet of floor space, the amounts of total selling expense and of wages and salaries in- crease as rental payments per 100 square feet of floor space increase. B. — Amounts of Selling Expenses per $100 Total Net Sales, for the Amount Sold per Square Foot of Floor Space for Stores Classified hy Amounts of Rent Paid per 100 Square Feet of Floor Space. Table K, Section II, shows for 113 stores in 1919 the amounts of selling expense and of wages and salaries per $100 total net sales for the amount sold per square foot of floor space. By expressing the expenditures in this form, the different elements of store operation named in the table are re- duced to a unit basis. The stores are classified according to the rentals per square foot of floor space. As the amounts expended for this purpose increase, both selling expense and wages and salaries decrease. Such a condition holds also for the stores in the other size-groups and for all the stores, irrespective of size, when clas- sified in this form. C. — Amounts of Wages and Salaries per $100 Selling Expense, for Stores Classified by Amounts of Rent Paid per 100 Square Feet of Floor Space. In Table K, Section III, the amounts of wages and salaries per $100 selling expense are shown for a group of stores, having sales of $40,- 000 to $80,000 in 1919, when they are classified by the rental payments per 100 square feet of floor space. As the rental payments increase, wages and salaries decrease. Moreover, this con- dition obtains for the stores in each of the other size-groups and for all stores classified in this form but with- out respect to size. D. — Amounts of Wages and Salaries per $100 Selling Expense for the Amount Sold per Square Foot of Floor Space, for Stores Classified hy Amounts of Rent Paid per 100 Square Feet of Floor Space. In Section IV, of Table K, the amounts of wages and salaries per $100 selling expense for the amounts sold per square foot of floor space are shown for 1919 for 113 stores classified by rental payments per 100 square feet of floor space. For pur- poses of summary, the stores having sales of $40,000 to $80,000 are used. One result of increasing rental pay- ments is a saving in the amount of floor space utilized. Accordingly, when wages and salaries are ex- pressed in relation to selling expense and the amount sold per square foot of floor space, they decrease as the rentals paid per 100 square feet of floor space increase. For other groups of stores, a similar condition obtains. 6. — AMOUNTS OP SELLING EXPENSE AND ITS COMPONENTS, WAGES AND SAL- ARIES AND ADVERTISING, IN RELA- TION TO THE AMOUNTS OF FIXTURE INVESTMENTS PER $100 OF TOTAL NET SALES. One section of the text is devoted to an analysis of the amounts of selling 26 TABLE L AmountB of ClasElfled Selling Expense Amoxints of Total Selling Expense Amounts of Classified Selliz^ Expense Amotmt of PlxtTire Account 1 II III per $100 of Total Het Sales Per $100 of Total Net Salee Per $100 of Total Zxpense Per $100 of Selling ExRer.se Total Selling Expense Wages & Salaries Advertising Wages & Salaries Advertising Average |9.50 $6.57 $1.68 $46.52 $70,68 $18.04 Under $2 |2 to $4 $4 to $6 te & over 7.11 9.56 11.65 5.27 5.71 6.39 8.88 0.95 1.64 1.89 1.95 45.03 43. U 47.30 51.51 74.16 68.31 66.81 74.93 13.30 19.66 19.79 16.42 Table Number Years Number of Store-years 89 S yrs. 153 193 3 yrs. 153 273 3 yrs. 153 97 3 yrs. 153 198 3 yrs. 153 281 3 yrs. 155 expense in stores with different fix- ture investments in relation to sales. It is the purpose of the summary and of Table L to indicate in brief the amounts of the different elements of expenditures for stores classified by the relation of their fixture account to sales, and to indicate the tendency, if any, for these amounts to increase or to decrease under different condi- tions of store operation. A. — Amounts of Sellhig Expenses per $100 of Total Net Sales, for Stores Classified hy Amounts In- vested in Fixtures per $100 of Total Net Sales. Table L, Section I, shows for the three years combined the amounts of selling expense, wages and salaries, and advertising per $100 total net sales for a group of stores with sales of $40,000 to $80,000, classified by the amount invested in fixtures per $100 of total net sales. As the amounts invested in this form in- crease, total selling expense, wages and salaries, and advertising expen- ditures likewise increase. For the stores in each of the other size-groups and for all the stores, classified irre- spective of size, a similar condition obtains. Moreover, increases in each of the different elements of expense are encountered in each of the years for stores classified in this form. B. — Amounts of Selling Expense per $100 Total Expense, for Stores Classified by Amounts Invested in Fixtures per $100 Total Net Sales. Table L, Section II, shows the amounts of selling expense per $100 27 total operating expense for a group of stores during the three years 1914, 1918, and 1919, combined, which had sales of $40,000 to $80,000, M-hen the stores are classified by the amounts invested in fixtures per $100 total net sales. As these amounts increase, selling expense as a proportionate part of total operating expense in- creases. For the stores in the other size-groups, and for the stores when classified in this form but irrespective of size, however, the direction of change in the amounts is uncertain. Moreover, in each of the individual years there seems to be no unmistak- able tendency for the amounts to in- crease or to decrease. C. — Amounts of Wages and Salaries and of Advertising per $100 Selling Expense, for Stores Clas- sified by Amounts Invested in Fixtures per $100 Total Net Sales. In Section III of Table L, the amounts of wages and salaries and of advertising per $100 of selling ex- pense for a group of stores for the three years 1914, 1918, and 1919, combined, are shown when the stores are classified by the amount of fixture investment per $100 total net sales. As the amounts of fixture investment per $100 total net sales increase, there seems to be no certain tendency for wages and salaries and advertising either to increase or to decrease. It is to be noted that this condition is true also for the stores in each of the other size-groups. 7. AMOUNTS OF SELLING EXPENSE AND ITS COMPONENTS, WAGES AND SAL- ARIES AND ADVERTISING, IN RELA- TION TO INVESTMENTS IN FIXTURES PER 100 SQUARE FEET OF FLOOR SPACE. Two methods of classifying the stores in relation to investments in fixtures are used. In Table L the amounts are stated in relation to sales while in Table M they are given in terms of floor space. A. — Amounts of Selling Expenses per $100 Total Net Sales, for Stores Classified by Amaunts Invested in Fixtures per 100 Square Feet of Floor Space. Table M, Section I, shows for 1919 the amounts of total selling expense and wages and salaries per $100 total net sales for 113 stores, classified by the amounts invested in fixtures per 100 square feet of floor space. As the amounts so invested increase, both selling expense and wages and salaries per $100 total net sales increase. This condition, moreover, holds for the stores in other size-groups and for all the stores, irrespective of size, when they are classified by the fix- ture investment in relation to floor space. B. — Amounts of Selling Expenses per $100 Total Net Sales for the Amount Sold per Square Foot of Floor Space, for Stores Classified by Amounts Invested in Fixtures per 100 Square Feet of Floor Space. Table M, Section II, shows the amounts of selling expense and of 28 TABLE M Amounts of Classified Selling Expense Amounts of Wages & Salaries Amount of Plxtxire Accoimt I II III IV per 100 sq. ft. of Floor Space Per $100 of Total Net Sales Per $100 of Total Net Sales per Sales per sq. ft. Per $100 of Selling Expense Per $100 of Selling Total Selling Expense Wages & Salaries Total Selling Expense 77age8 & Salaries Expense per Sales per aq. ft. Average $7.13 $5.09 $0.38 $0.27 $71.31 $3.82 Under $40 #40 to $80 $80 to $120 $120 & over 6.76 6.42 7.80 8.85 4.71 4.54 5.49 6.82 0.45 0.32 0.33 0.48 0.32 0.23 0.23 0.37 69.64 70.61 70.31 77.04 4.66 3.50 2.07 4.14 Table Ntnnber Toar ITunbor of Store-yaars 104 1919 113 203 1919 113 104 1919 113 203 1919 113 205 1919 113 205 1919 113 wages and salaries per $100 total net sales for the amount sold per square foot of floor space. The amounts re- fer to 113 stores with sales of $40,000 to $80,000 in 1919, classified by the fixture investment per 100 square feet of floor space. As the investments measured in this way increase, there seems to be a general tendency for the amounts of selling expense to in- crease. Such a condition holds also for the stores in the other size-groups and for all the stores, irrespective of size, when classified in this manner. The direction of change in the amounts of wages and salaries for the group of stores included in the table is uncertain. For other groups and for the total, the general tendency is for the amounts to decrease as the fixture investments increase. Certain exceptions to this tendency, however, occur, and it is impossible to sum- marize them in a brief statement. C. — Ammints of Wages and Salaries per $1W of Selling Expense, for Stores Clarified by Amounts In- vested in Fixtures per 100 Square Feet of Floor Space. Table M, Section III, shows the amounts of wages and salaries per $100 of selling expense in 1919 for 113 stores with sales of $-40,000 to $80,000, when the same are classified by the amount of fixture investments per 100 square feet of floor space. As the investments measured in this manner increase, wages and salaries per $100 selling expense also increase. That is, under the conditions named, wages and salaries constitute an in- 29 ereasingly larger proportion of the total selling expense. How nearly this condition obtains for stores in the other size-groups and for the total, irrespective of size, may be seen by consulting the text treatment and the tables concerned. D. — Amounts of Wages and Salaries per $100 Selling Expense for the Amount Sold per Square Foot of Floor Space, for Stores Classified ty Amounts Invested in Fixtures per 100 Square Feet of Floor Space. Table M, Section IV, shows the amounts of wages and salaries per $100 of selling expense reduced to a unit basis for the amount sold per square foot of floor space. The stores are those having sales of $40,000 to $80,000. They are classified accord- ing to their fixture investments in re- lation to floor space. As these invest- ments increase, wages and salaries, measured in this form, decrease, if the stores having investments of $120 and over per 100 square feet of floor space are excepted. For the stores in the other size-groups, the amounts of wages and salaries under the condi- tions established in the table also tend to decrease. 8. — AMOUNTS OP SELLING EXPENSE AND ITS COMPONENTS, WAGES AND SALARIES AND ADVERTISING, IN RE- LATION TO EXPENDITURES FOR AD- VERTISING PER $100 TOTAL NET SALES. In Table N the amounts of expenses, expressed in terms of sales, of total expense, and of selling expense, are shown in simple and complex units for stores with sales of $40,000 to $80,000, and with different expendi- tures for advertising in relation to sales. The purpose of the text treat- ment of this topic is to determine, if possible, the effect which different amounts of advertising have upon selling expense. It is impossible briefly to summarize all the conclu- sions in the text or to duplicate all the different ratios. Reference should be made to the text treatment under various classifications of stores. A. — Am&unts of Selling Expenses per $100 Total Net Sales, f&r Stores Classified hy Amounts of Adver- tising Expenditure per $100 Total Net Sales. Table N, Section I, shows for 1919 the amounts of selling expense and of wages and salaries per $100 of total net sales for 106 stores, classified by the amounts of advertising in relation to sales. As the amounts increase, selling expense and wages and sal- aries also increase. For purposes of summary, a group of stores with sales of $40,000 to $80,000 has been selected. To have ignored store size in this connection, in view of the fact that the amounts of advertising per $100 total net sales increase with store size, would have made such a compar- ison meaningless. Similar increases hold for the stores in each of the other size-groups. When the stores are classified by location, it is difficult to generalize as to the direction of change or briefly to indicate the 30 TABLE N Amounts of Classified Belling Expanse Amoimts of Total, Selling Expenoo Amounts of Wages 8: Salaries Amount of Advertising I II ■ III IV V VI per $100 of Total Hat Sales for $100 of Total Nat Salaa Per $100 of Total Vet Sales per Stock Turnover Par 5100 of Total pxpenea Per SlOO of Total Expenae per Stock Turnover Per $100 of Selling Expenoo Per 5lOO of Selling Total Selling Expense nages & Salaries Total Selling Expenaa Wagas & Salaries Ejcpenso por Stocl: T'lmovcr Average $7.45 $5.36 ?4.14 $2.93 $41.79 $23.32 $71.92 $39,95 Qader |l ♦l to $2 $2 to ii ♦3 i over S.77 7.54 9.32 13.23 4.53 6.25 6.14 8.57 3.21 4.32 5.18 7.73 2.S4 3.09 3.41 S.04 37.37 40.49 45.15 54.13 21.04 23.82 25.09 31.34 79.37 71.64 65.92 64.73 44.09 42.14 36.62 50.08 Table Humber Year number of 8tore-7oars 107 X919 106 206 1919 105 109 1319 106 206 1919 106 115 1019 105 115 1919 105 207 1919 105 207 1919 106 actual expenditures. The reader is advised to consult the text for a more elaborate treatment of the subject and the conclusions to which it has led. B. — Amounts of Selling Expenses per $100 Total Net Sales per Stock Turnover, for Stores Classified hy Amounts of Advertising Ex- penditure per $100 Total Net Sales. In Section II of Table N the amounts of selling expense and of wages and salaries per stock turnover are shown for 106 stores in 1919, having sales of $40,000 to $80,000, when the same are classified by the amounts expended for advertising per $100 total net sales. As these amounts increase, the total selling expense and the wages and salaries also increase. Similar increases characterize the stores in the other size-groups. The expenditures are reduced to a unit turnover basis, thus making more directly comparable the operating conditions of the different stores. C. — Amomits of Selling Expense per $100 Total Expense, for Stores Classified hy Amounts of Adver- tising Expenditure per $100 Total Net Sales. In Section III of Table N the amounts of selling expense per $100 total operating expense are shown for 106 stores in 1919, with sales of $40,- 000 to $80,000, classified by the amounts of advertising per $100 total net sales. As these amounts increase, selling expense becomes a proportion- ately larger percentage of total oper- ating expense. For other groups of stores, when classified by size, and for the total stores, note that the direc- tion of change in these amounts is uncertain. 31 D. — Amounts of Selling Expense per $100 Total Expense per Stock Turnover, for Stares Classified by Amounts of Advertising Ex- penditure per $100 of Total Net Sales. In Table N, Section IV, the amounts of selling expense per $100 total operating expense, when reduced to a stock turnover basis are shown for 106 stores in 1919, with sales of $40,- 000 to $80,000, when the same are classified by the amount of advertis- ing per $100 total net sales. As the amounts spent for this purpose in- crease, the expenditures for selling also increase. For the stores in the other size-groups, the direction of change is uncertain in some respects. The nature of the differences may be seen by consulting the tables in the text proper. For the amounts for stores classified by location, the reader is also advised to consult the text. E. — Amou7its of Wages and Salaries per $100 Selling Expense, for Stores Classified by Am,ounts of Advertising Expenditure per $100 Total Net Sales. In Section V of Table N, the amounts of wages and salaries per $100 selling expense are shown for 106 stores having sales of $40,000 to $80,000 in 1919, when they are clas- sified by the amounts expended for advertising per $100 total net sales. As the amounts expended for this purpose increase, wages and salaries become proportionately smaller parts of selling expense. This condition, moreover, holds for the stores in each of the different size-groups and also for the stores as a whole, irrespective of size, classified according to adver- tising expenditures per $100 total net sales. F. — Amounts of Wa{ies and Salaries per $100 Selling Expense per Stock Turnover, for Stores Clas- sified by Amounts of Advertising Expenditure per $100 Total Net Sales. Table N, Section VI, shows the amounts of wages and salaries per $100 selling expense reduced to a per- stock turnover basis. The averages refer to 106 stores in 1919, having sales of $40,000 to $80,000 and clas- sified by the expenditures for adver- tising in relation to sales. As the amounts spent for this purpose in- crease, wages and salaries, measured in this unit, decrease. This condition holds for the stores in each of the other size-groups and for all of the stores classified in this manner but irrespective of size. 9. — AMOUNTS OP SELLING EXPENSE AND ITS COMPONENTS, W^AGES AND SAL- ARIES AND ADVERTISING, FOR STORES CLASSIFIED BY EXPENDITURES FOR ADVERTISING, BY METHODS OF PAY- ING SALESMEN, AND BY RELATIVE RATES OF PROFIT PER $100 TOTAL NET SALES. In the body of the text special at- tention is given to the effect which expenditures for advertising per $100 total net sales in 1914 and 1918 had upon sales and selling expense in sub- 32 sequent years. The details resulting from this analysis are contained in Tables 112 to 114, inclusive. While it is impossible to summarize them briefly, it is concluded that the expen- ditures for advertising offer a means by which selling expenses may be re- duced. Obviously, there are limita- tions beyond which this is not true, and it is not claimed that the analysis shows conclusively a causal connec- tion between the two factors. It is interesting to find, however, that, generally speaking, the larger the ex- penditures for advertising in relation to sales, the greater is the reduction in expenses in relation to sales. In Tables 67 to 74 and 176 to 183, inclusive, of the text, stores are clas- sified according to the method by which salesmen are compensated. The purpose of these tables is to de- termine the relationship, if any, be- tween the amounts of selling expense and the methods by which salesmen are compensated. Generally speak- ing, two conclusions result from this analysis : First, when all the evidence is considered, stores which pay their salesmen a bonus show higher total selling expense and wages and sal- aries than do those which pay no bonus. Second, stores in which salesmen are paid on a salary and commission basis have, on the whole, lower total selling expense and wages and salaries than do those which use straight salaries alone. The reader is advised to consult the tables and the discussion relating to them for a fuller statement of the evidence to the above effect. In the final section of the text, stores are classified according to the relative rates of profit per $100 total net sales which they had in 1919. For the stores classified in this form, the amounts of selling expense, of total operating expense, of gross margin, and of cost of merchandise sold have been determined. Generally speak- ing, the conclusion which is reached is as follows: The greater the relative rate of profit, the smaller the cost of merchandise sold, the total operating expense and the selling expense, and the larger the gross margin. In the introductory paragraph a plea is made for the reader not to content himself with a hasty perusal of the Summary. Care has been taken throughout the entire analysis faith- fully to present the facts as shown by store records and the Bureau is anxious that the case, as presented in full, should be understood by those who are interested in the results. 33 III. SELLING EXPENSE AND EXPENSE RATIOS IN CLOTHING STORES The questionnaire used by the Bureau of Business Research in co- operation with the National Associa- tion of Retail Clothiers in the study of Costs, Merchandising Practices, Advertising and Sales in the Retail Distribution of Clothing* provided for expenses to be reported under four headings: rent, wages and sal- aries, advertising, and general ex- pense. These different elements of expense have been fully analyzed in the Bureau 's study referred to above. It is unnecessary here to describe either the method employed or the results obtained. Partly as a necessary step in the analysis of expenditures under the above headings and partly as an edit- ing process preliminary to analysis, the expenses reported were dis- tributed according to a classification in which selling expense plays an im- portant part. It is with the analysis of expenditures classified in this form that this study deals. "Selling expense," as used herein, includes the wages and salaries of salesmen and such part — as nearly as could be determined — of the sal- aries of proprietors who gave part of their time to selling, as should properly be so charged. It also in- cludes expenditures for bushelling, for wrappings and containers, for de- livery expense, and all expenditures for advertising, including the salaries * Prentice-Hall, Inc., New York City. of employees such as window trim- mers and advertising men. Such portions of selling expense as are separately discussed below are fully defined. For present purposes, the above definition will suffice to in- dicate what is meant by "selling ex- pense." 1. — SELLING EXPENSE FOR CLOTHING STORES CLASSIFIED BY YEARS, BY SIZE, AND BY LOCATION. For each of the years 1919, 1918, and 1914, the records of 154 stores are available for study, while for 1919 alone, use is made of the records of 303 stores. The experience of this larger group is treated separately, in- asmuch as it is desirable in the analysis to have as complete a sampling of stores as possible. The method of presenting the data is similar to that followed in the Bureau's study of Costs, Merchandis- ing Practices, Advertising and Sales in the Retail Distribution of Clothing, expense items being expressed in units of sales, total expense, or other- wise as the case may be. A. — Yearly Amounts of Selling Ex- pense per $100 of Total Net Sales and per $100 of Total Expense, 1919, 1918, and 1914. The average amounts of selling ex- pense in terms of sales for the 154 stores under consideration for the years 1919, 1918, and 1914 are set 34 TABLE 1 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 Nujnber of Store- years Total Net Sales Total Selling Expense Selling Expense per OlOO of Total Nat Sales Years Amount Per Cent. Graphic 3 20 40 60 80 100 120 Actual Total 462 $44,835,499 $4,851,112 $10.82 (Average ) ; 1919 1918 154 154 154 20,892,764 14,714,515 9,228,220 2,182,027 1,609,671 1,059,414 10.44 10.94 11.48 96,5 101.1 106.1 1914 Average tlO.82 out in Table 1. In 1914, $11.48 out of every $100 of total net sales was expended for selling purposes. In 1918, the amount was $10.94, and in 1919, $10.44. That is, between 1914 and 1918, and 1914 and 1919, selling expense in terms of total net sales de- creased, the percentage of change be- tween 1914 and 1918 being 4.7, and between 1914 and 1919, 9.1. These amounts and percentages of change characterize identical stores. During the period in question, both the sales and selling expense of the stores increased. Sales, however, in- creased more rapidly than selling expense with the result that selling expense in terms of sales decreased. These relationships are shown in Table 2. It is also of interest for the 154 stores to compare the relations of the selling expense to the total expense of doing business. In 1914 the pro- portion of total expense attributable to selling, as defined above, was $48.86. TABLE 2 AVERAGE AMOUNT AND PER CENT. INCREASE OR DECREASE OF TOTAL NET SALES AND SELLING EXPENSE PER STORE, AND AVERAGE AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 AvQrago Amotint of Ttatal Net Salea per Store Average Ano-mt of Sallina Expense per Store Average Arwunt or Selling bxpaa«a per $100 of Total Net Salea Yoora Anount Per Cent. Increase over 1914 AsKunt Per Cent. Increase over 1914 Anount Per Cent. Decrease from 1914 1 Oraphlo A«taa 1 20 40 60 BO 100 120 14 1 Crapblo Aetnftl 1 20 40 60 80 100 12C 1 Graptilc Actual 20 40 60 90 100 1919 19 IS 19X4 1155,667 95,548 59,924 126.4 59.5 114,169 10,452 6.879 lOS.O 51.9 $10.44 10.94 11.48 9.1 4.7 -^ : 35 By 1918 this amount had increased to $49.63, and by 1919 to $51.06. Stated in another way, essentially $50 out of every $100 of total expense is attributable to selling. Table 3 shows that the average total expense of these stores increased between 1914 and 1918 by 49.6 per cent, and between 1914 and 1919 by 97.1 per cent. At the same time, their selling expense increased between 1914 and 1918 by 51.9 per cent, and between 1914 and 1919 by 106.0 per cent. When selling expense is ex- the stores are classified by size. Table 4 shows the relation between selling expense and total net sales, and Table 5, the relation between selling ex- pense and total expense for the 154 stores classified by size. The amounts of selling expense per $100 of total net sales decreased between 1914 and 1918, and between 1918 and 1919 for each group of stores; the decrease being most noticeable for stores with sales less than $40,000 and for those with sales between $40,000 and $80,000. TABLE 3 AVERAGE AMOUNT AND PER CENT. INCREASE OR DECREASE OF TOTAL EXPENSE AND OF SELLING EXPENSE PER STORE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 20 40 60 80 100 ^ gg 49 6(1 ep IPC ISO gp 40 60 60 IPp 1S19 191B 1914 427,749 21,059 14,060 tl4,16e 10,452 6,679 106.0 51.9 tS1.06 49.63 pressed as a proportion of total ex- pense, it is found that there was an increase of 1.6 per cent, between 1914 and 1918 and of 4.5 per cent, between 1914 and 1919. B. — Yearly Amounts^ of Selling Ex- pense per $100 of Total Net Sales and Per $100 of Total Ex- pense, for Stores in 1919, 1918, and 1914, Classified by Size. What is true for the 154 stores treated as a total is also true when The direction of change from year to year in the relation of selling ex- pense to total expense, when the stores are classified by size, is not so evident. For the stores with annual sales less than $80,000, the amounts decreased between 1914 and 1918, and 1918 and 1919, while for those with sales of $80,000 and over there is an uncer- tainty as to direction, the average amount in 1918 being lower than the amount in either 1914 or 1919, for the group with sales of $80,000 to $180,- 000, and higher than the amounts for 36 TABLE 4 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE, 1919, 1918, AND 1914 Selling Expenea per flOO of Total Net Sales Average $10.82 these years for the stores with sales of $180,000 and over. C. — Yearly Am&unts of Selling Ex- pense per $100 of Total Net Sales and per $100 of Total Expense, for Stores in 1919, 1918, and 1914, Classified by Size of City in Which Located* It is of interest to compare the relations of selling expense to sales and to total expense, from year to * Population figures are for 1920. 37 44392 TABLE 5 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OP TOTi\L EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE, 1919, 1918, AND 1914 Years Number of Store- years Total Expense Total Selling Expense Selling Expense per ^100 of Total Expense Total Het Sales (m OOO's) Ap.oijmt C Per Cent. Graphic Actual ) 20 40 60 80 100 120 Total (Avercigc) 452 59,684,915 $4,351,112 550.09 ^^^ ; 100.0 Total 1919 1918 1914 154 154 154 4,273,325 3,243,123 2,168,367 2,182,027 1,609,671 1,059,414 51.06 49.63 48.96 101.9 99.1 97.5 (Average) Total (Average) 129 741,391 304,954 41.13 82.1 Dndar $40 1919 1918 1914 14 42 73 76,237 248,315 416,829 29,018 101,621 174,315 33.06 40.92 41.82 76.0 81.7 83.5 Total (Average) 172 1,981,375 913,357 46.10 92.0 ; 1919 1918 1914 57 63 52 566,182 755,488 659,705 246,207 345,293 321,857 43.49 45.70 48.79 86.8 91.2 97.4 1 Total (Average) 117 2,897,244 1,491,301 51.49 10?. 8 teo to $180 1919 1913 1914 53 35 24 1,361,844 905,972 629,528 719,436 445,138 327,227 52.83 49.14 51.98 105.5 98.1 103.8 i Total (Average ) 44 4,064,815 2,141,000 52. G7 105.2 tlBO & over 1919 1919 1914 25 14 5 2,269,062 1,333,446 462,305 l,187,36e 717,619 236,015 52.33 53.82 51.05 10 A. 5 107.4 ^^^^^ Average $50.09 year, for all the stores, when they are classified by the size of the city in which they are located. Such com- parisons are shown in Tables 6 to 9, inclusive. One hundred and fifteen of the 154 stores are located in cities with popu- lation of less than 40,000. Between 1914 and 1918 the sales of these stores increased by 49.4 per cent, and be- tween 1914 and 1919, by 109.4 per cent. Corresponding to these in- 38 creases in sales, were increases of 40.8 per cent, and 85.4 per cent., re- spectively, in selling expense. When the amounts of selling expense are expressed in terms of total net sales, they are found to have decreased be- tween 1914 and 1918 by 5.8 per cent. and between 1914 and 1919 by 11.5 per cent. The percentages of increase in sales were noticeably larger between 1914 and 1918, and between 1918 and 1919 for the 39 stores located in cities with population of 40,000 and over than for those in the small cities. The per- centages of increase in selling ex- pense, however, were also larger, the result being that the percentages of decrease in selling expense per $100 of total net sales were smaller for the stores in the large cities than for those in the small cities for both 1918 and 1919 when compared with 1914. Relatively, therefore, the advantage in the increase in sales accruing to the stores in the large, over those located in the small cities, is more than compensated for by the increase in selling expense. "When selling expense is expressed in relation to total expense for these same stores, as in Table 7, a somewhat different story is told. For the 115 stores in the small cities the percent- age of increase in the amount of sell- ing expense, as between 1914 and 1918, was almost precisely the same as that in total expense, while be- tween 1914 and 1919 it exceeded that in total operating expense. When the amounts of selling expense are expressed in relation to total expense, the result is that between 1914 and 1918 the amount decreased by 0.1 per cent, and between 1914 and 1919 in- creased by 3.6 per cent. TABLE 6 RELATION OF SELLING EXPENSE TO TOTAL NET SALES, FOR 154 IDENTICAL, STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 size of City iin OOO'e) Years Number of Stores Het Sales Selling Expense Total Average per Ajnount Store Total Average per Amoxint Store Per $100 of Total Net Sales Amount Per Cent. Increase over 1914 Amount Per Cent. Increase over 1914 Amount Per Cent. Decrease from 1914 1919 154 120,992,764 tl35,667 126.4 #2,182,027 114,169 106.0 »10.44 9.1 Total (Average ) 191B 154 14,714,515 95,549 59.5 1,609,671 10,452 51.9 10.94 4.7 1914 154 9,228,220 59,924 1,059,414 6,879 11.48 1919 115 10.005,585 87,005 109.4 696,865 7,799 85.4 8.96 11.5 'Onder 1918 115 7,156,283 62,055 49.4 680,787 5,920 40.8 9.54 5.8 1914 U5 4,777,138 41,540 483,712 4,206 10.13 1919 59 10,887,179 279,158 144.6 1,285,164 32,953 123.2 U.80 8.7 40 and ever 191B 1914 S9 S9 7,578,232 4,451,062 194,314 114.130 70.S 928,884 575,702 23,818 14,762 61.3 12.26 12.93 5.2 39 Similar, but larger, percentages of increase in total and in selling ex- penses were experienced for the 39 stores located in the large cities. Be- tween 1914 and 1918, the total oper- ating expense increased 57.0 per cent, and the total selling expense, 61.3 per cent. Between 1914 and 1919 the same expenses increased, respectively, 112.7 and 123.2 per cent. The result cities, when expressed in terms of sales, decreasing more, and when ex- pressed in terms of total expense, in- creasing less than the amounts for the stores in the large cities. The relations of the amounts of selling expense to total net sales and to total operating expense, respec- tively, for the 154 stores classified by the size of the city in which they are TABLE 7 RELATION OF SELLING EXPENSE TO TOTAL EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 of City (la OOO's) Total Expense Selling E:^p 31130 Years of StorcQ Amount Avorage Amcunt per Stora Total Average per Amount Store Per *100 of Total Expense Aco'ont Per Cont. over 1914 Amount Per Cent. Increase over 1914 Axoount Par Cent. Increase or Decreaaa from 1914 1919 154 $4,273,325 §27,749 97.1 ?,2,lfl2,0?7 fj.4,169 106.0 $51 .06 •4.5 Total (Aver.-co) 1918 1914 154 154 3,243,123 8,168,369 21,059 14,080 49. C 1,C03,C71 1,059,414 10, '.52 5,879 51.9 49.63 48.86 *1.6 1919 115 1,793,459 15,595 73.9 896,863 7,799 85.4 50.01 ♦3.6 Pndar 1918 lis 1,412,863 12,286 40.9 660,787 5,920 4C.3 43.18 -0.1 1914 115 1,002,412 8,717 483,712 4,206 48.25 1919 J9 2,479,866 63,506 112.7 1,285,164 32,953 123.2 51.82 .4.9 40 and 1918 59 1,830,260 46,930 57. 928,884 23,813 61.3 50.75 ♦2.8 1914 39 1,155,955 29,896 575,702 14,762 49.38 of these increases is that selling ex- pense, measured in terms of total operating expense, increased 2.8 per cent, between 1914 and 1918, and 4.9 per cent, between 1914 and 1919. When Tables 6 and 7 are compared, it is of interest to observe for both groups of stores that the amounts of selling expense in terms of sales relatively decreased, and in terms of total expense relatively increased, the amounts for the stores in the small located, are graphically shown for each of the years in Tables 8 and 9. In Table 8 the amounts are expressed in terms of total net sales. While for the three years combined, the average amount of selling expense for each $100 of sales is $10.82 for the entire group of stores, the amount is $9.40 for the stores in the small cities, and $12.17 for those in the large cities. That is, the amount for the stores in the small cities is 86.9 per cent., while 40 that for the stores located in the large cities is 112.5 per cent, of the average for the entire group. From 1914 to 1919 the amounts for the stores in both city-groups decreased, the extent of the change being relatively larger increased from 1914 to 1918, and 1914 to 1919. The changes, however, are small, the amounts for the stores dif- ferently located very closely approxi- mating the average for the entire group. TABLE 8 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 Size Years Duobep of Store- years Total Net Sales Total Selling E.-'.pense Selling Expense per $100 of Total Nat Sales of City (In OOO's) Amormt Per Cent. Graphic D 20 40 60 80 100 120 Actual Total (Average) 463 $44,835,499 $4,351,112 110.82 100.0 Total 1919 1918 1914 154 154 154 20,892,764 14,714,515 9,228,220 2,182,027 1,609,671 1,059,414 10.44 10.94 11..48 96.5 101.1 106.1 (Average) Total (Average) 345 21,919.006 2,061,362 9.40 : Under 1919 1913 1914 115 115 115 10,005,595 7,136,283 4,777,138 896,363 680,737 483,712 8.96 9.54 10.13 82.3 40 : 38.2 : 93.6 : Total (Average) 117 22,916,493 2,789,750 12.17 112.5 : 40 and 1919 1913 1914 39 39 39 10,387,179 7,573,232 4,451,082 1,285,164 928,884 575,702 11.80 12.26 12.93 109.1 113 3 over ! Average $10.82 for the stores in cities with popula- tion under 40,000. It is to be noted that, absolutely, the differences are almost identical. When selling expense is expressed in terms of total operating expense, the amounts for stores in the two city-groups, with one slight exception, D. — Yearly Amounts of Selling Ex- pe7ise per $100 of Total Net Sales and per $100 of Total Ex- pense, far Stores Classified hy Size and by Size of City in Which Located* 1919, 1918, and 1914. * Population figures are for 1920. 41 TABLE 9 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 Size Ye-ars Ilijuiber of Store- years Total Expense Total Selling Expense Selling Expense per flOO of 'Potal Expense of City (in 000' s) Amount ( Per Cent. Graphic 1 ^^t,^^^ 3 20 40 60 80 100 120 Total (Average) 462 $9,684,815 3.4,851,112 $50.09 Total 1919 1S18 1914 154 154 154 4,275,525 5,245,125 2,168,567 2,182,027 1,609,671 1,059,414 51.06 49.63 48.66 101.9 99.1 97.5 (Average ) ^^^^^1 : Total (Average) 545 4,208,754 2,061,362 48.98 : 97.8 ] 1919 1918 1914 115 115 115 1,793,459 1,412,065 1,002,412 896,865 680,787 483,712 50.01 4S.18 48.25 99. 8 96.2 96.3 40 1 1 Total (Average) 117 5,476,081 2,789,750 50.94 101.7 : 40 and 1919 1918 1914 59 59 59 2,479,866 1,850,260 1,165,955 1,285,164 928,384 575,702 51.82 50.75 49.58 103.5 101.3 CO. 6 over ■ : ; Average $50.00 Two groups of stores are available for the study of the relation of selling expense to sales for stores of different size. The first — 303 stores — covers the year 1919 alone; the second — 154 stores — applies to each of the years 1919, 1918, and 1914. In 1919, based upon the records of 303 stores, with total sales of $36,193,718 and selling expense of $3,595,401, the ratio of selling expense to sales is $9.93. In other words, it costs $9.93 in selling expense, as defined, to sell $100 worth of goods. This amount, however, varies noticeably for stores of differ- ent size. For the 45 stores with an- nual sales of less than $40,000 the amount is $6.46 and for the 43 stores with sales of $180,000 and over, it is $11.45. These amounts, respectively, apply to stores with the smallest and the largest annual sales. An inspec- tion of the total section of Table 10 reveals the unmistakable tendency for the ratios of selling expense to total net sales to increase as the stores in- crease in size. This table, however, refers solely to 1919. When another 42 group of stores is considered for the same year, as in Table 12, a like con- dition is observed. The amount of selling expense per $100 of total net sales for this group as a total is some- what larger, but the direction of and size. The total sections of these tables show the amounts of selling expense per $100 of total net sales, first for the three years 1919, 1918, and 1914, combined, and second, for the respective years. For the com- TABLE 10 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919 Size of City (m 000*3) Total (Average) Under 40 40 and over Classified Total Jlet Sales (In coo's) Total (Aver&cc) Under $40 $40 to S80 580 to 5180 $180 & over Total (Avernge) Under $40 340 to S80 ^0 to $180 JlSO Jc over Total (Average) Under $40 t40 to jeo $80 to $180 $180 &. over Jlumbor of Stores 45 113 102 43 44 99 70 12 Total Jlet Sales $36,193,718 1,399,886 6,500,336 11,986,362 16,307,134 17, 978, 319 1,372,066 5,610,593 8,138,365 2,857,295 18,215,399 27,820 889,743 3,847,907 13,449,839 Total Selling Expense $^3, 595, 401 90,453 463,566 1,174,364 1,867,013 1,490,026 86,813 386,503 72^,670 294*040 2,105,375 3,640 77,065 451,694 1,572,978 Selling Expense per $100 of Net Sales $9.93 6.46 7.13 9.80 11.45 8.29 6.33 6.89 e.ee 10.29 11.56 13.08 8.66 11.74 11.70 Graphic 100.0 65.1 71.8 98.7 115.3 83.5 63.7 69.4 89.4 103.6 116.4 131.7 87.2 118.2 117.8 Average $9.93 change in the amounts from store- group to store-group nevertheless fol- lows closely that observed for the 303 stores. In Tables 11 to 14, inclusive, 154 stores are classified by years, location, bined years, the average amount of selling expense is $10.82. For the smallest stores it is $8.49 and for the largest, $12.05, the amounts increas- ing as the stores increase in size. Such a condition is observed also for .43 TABLE 11 TOTAL NET S^VLES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SAI.ES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919, 1918, AND 1914, COMBINED Sizs of , City, , Classified Total Net Sales (In OOO'a) Number of Store- yeare Total Net Sales Total Selllnc Expense Soiling Expense per $100 of To' el Nat Sales Amount ( Par Cent. Graphic Actual 3 20 40 60 80 100 120 ! Total 462 $44,835,499 $4,851,112 $10.82 100.0 (Average) i^/t^^ «iin 129 172 117 44 3,590,553 9,775,007 13,695,639 17,774,300 304,954 913,357 1,491,301 2,141,000 8.49 9.34 10.89 12.05 78.5 86.3 100.6 111.4 Total (Aver=.^c; • ^40 to $80 ^0 to $180 $1S0 Je over i Total (AveraE?) 345 21,919,006 2,061,362 9.40 86.9 ! Ucder 40 DivJer i40 $40 to {^0 £80 to JI8O $130 li. over 121 136 77 9 3,317,333 7,650,532 8,832,022 2,119,114 276,723 670,140 892,563 221,936 3.34 8.76 10.11 10.47 77.1 81.0 I ; 96.8 1 Total (Average ) 117 22,916,493 2,789,750 12.17 112.5 ; Under $40 |4C to SSO #80 to $180 $180 & over 8 34 40 35 273,215 2,124,475 4,863,617 15,655,186 23,231 243,217 599,238 1,919,064 10.33 11.45 12.32 12.26 95.5 105.8 40 and over ; Average $10.82 each of the years when treated sepa- rately. In 1919, the average amount was $10.44, in 1918, $10.94, and in 1914, $11.48. That is, from year to year, the amounts decreased as is shown graphically in Table 1. Moreover, the amounts decreased from year to year for each group of stores. Attention should be called to the fact that store identity is not main- tained throughout the various years in any of the sales-groups. The rate at which sales increase for the respec- tive stores varies so that from year to year each group does not necessarily contain the same stores nor the same number of stores. An analysis of the relation of sell- ing expense to total expense may also be made for the 154 stores, classified by size. This is done in Tables 15 to 18, inclusive. It is thought to be suf- ficient to compare identical stores for this purpose. Based upon the three-year experi- 44 TABLE 12 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919 Size of City Classified Total Net Sales (In OOO'a) HumLer of Stores Total Net Sales Total Selling Expenee Selling Expense per *100 of Total Net Sales Anoijnt Fer Cent. (In 000*3) Graphic Actual 3 20 40 60 80 100 120 140 Total (Average ) 154 $20,892,754 $2,182,027 $10.44 100.0 Total (Average) Dnder ^40 $40 to 580 {80 to *180 Siao J: over 14 57 53 25 428,714 3,222,458 6,856,815 10,374,767 29,018 245,207 719,436 1,187,356 6.77 7.64 lO.ifl 11.44 64.3 73.2 100.4 103.6 Total (Average) 115 10,005,585 895,853 8.96 85.8 Under 40 Under $40 ^10 to S80 §30 to $180 Sl80 S: over 14 51 44 6 428,714 2,836,747 5,255,410 1,434,714 29,018 211,678 509,410 146,757 6.77 7.46 9.69 9.38 64.3 71. S 92.8 94.6 ; i Total (Average) 39 10,887,179 1,235,164 11.80 113.0 • 40 and over Onder Uo ^ to Jao $80 to $180 $180 & over 6 14 19 385,721 1,611,405 8,890,053 34,529 210,026 1,040,609 8.95 13.03 11.71 85.7 124.8 112.2 Average $10.44 enee of 154 identical stores, the aver- age amount of selling expense per $100 of total expense is $50.09. In 1919 it was $51.06, in 1918, $49.63, and in 1914, $48.86. That is, the amounts of selling expense per $100 of total expense increased between 1914 and 1918, and 1918 and 1919. When the stores are considered with respect to size for the combined and for each of the years, the amounts in- crease as the stores increase in size. For the three years combined, the amount for the stores with annual sales under $40,000 is $41.13, while for those with annual sales of $180,- 000 and over it is $52.67. Relatively, the amount for the small stores is 82.1 per cent., and for the large stores, 105.2 per cent, of the average for all the stores. Between these limits, the amounts increase as the stores in- crease in size. In 1919, the average amount of sell- ing expense per $100 of total expense was $51.06. For the stores having 45 TABLE 13 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PEE $100 OF TOTAL NET S.VLES, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1918 Eire Classified Total l!et Sales (In coo's) number of Stores Total Not Sales Total Selling Expense Selling Expense per $100 of Total net Sales of City (in CCO's) Aitoimt Fer Cent. Graphic Actual ) 20 40 60 80 100 120 Total (Average ) 154 *14,714,515 $1,609,671 $10.94 Dnder $40 $40 to §80 iSO to $180 Sl80 & over 42 63 35 14 1,256,795 3,662,794 4,090,205 5,704,723 101,621 354,203 445,138 717,619 8.09 9.43 10.83 12.58 V^ 9 Total (Average ) : 86.2 , Total (Average ) 115 7,136,283 680,787 9.54 i 87.'' Ur.der 40 ttader 540 J40 to $80 Sec to JI8O SI8O & over 41 49 22 r 3 1,2:1,199 2,776,272 2,504,412 634,400 99,513 244,788 261,307 75,179 8.15 8.82 10.43 11.85 74.5 ; 95.3 108.3 Total (Average) 39 7,578,232 928,884 12.26 40 and Dnder 340 $40 to 3eo $80 to $180 $180 & over 1 14 13 11 35,596 886,522 1,585,791 5,070,323 2,108 100,505 183,831 642,440 5.92 11.34 11.59 12.67 ^— 54.1 115.8 Average ClO.94 annual sales under $40,000 it was $38.06 and for those having annual sales of $180,000 and over, $52.33. Similar differences for stores of dif- ferent size hold for the other years. The graphic parts of the total sections of Tables 17 and 18 reveal these facts for 191 8 and 1914. In the discussion of the relation of selling expense to sales and total ex- pense for stores of different size, no distinction was made for stores ac- cording to location. A classification providing for this is made in Tables 10 to 18, inclusive, two city-groups being distinguished : cities with popu- lation of less than 40,000 and cities with population of 40,000 and over. The records of 303 stores for 1919 are available for the analysis of the relation of selling expense to total net sales for stores classified by both size and location. Details are contained in Table 10. For the 225 stores located in the small cities, selling expense constitutes $8.29 per $100 of total 46 TABLE 14 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1914 Classified Total Met Sales (In OOO's) Number of Stores Total Met Sales Total Selling Expense Selling Expense per $100 of Total Hot Sales S1Z9 Of City Amount < Per Cent. (In OOO'a) Graphic ) 20 40 60 80 100 120 14C Actual Total (Average) 154 $9,228,220 $1,059,414 $11.49 100.0 Total (Avar age) Dnder $40 $40 to J80 {80 to $180 $180 & over 73 52 24 5 1,905,044 2,889,745 2,738,621 1,694,810 174,315 321,857 327,227 236,015 9.15 11.14 11.95 13.93 79.7 07.0 104.1 121.3 : Total (Avoragg) 115 4,777,138 483,712 10.13 ao.2 Onder 40 Under $40 $40 to $30 $80 to $180 $180 & over 65 38 11 1,667,425 2,037,513 1,073,200 148,192 213,074 121,846 3.89 10.49 11.36 77.4 91. t 99.0 : • Total (Average ) 59 4,451,082 575, 702 12.93 112.5 ; Under $40 $40 to $80 $80 to $180 $180 & over 7 14 13 5 237,619 852,232 1,666,421 1,694,810 26,123 103, 183 205,331 236,015 10.99 12.69 12.32 13.93 95.7 110.5 107.3 121.3 40 and ovar Average $11.43 net sales, while for the 78 stores located in large cities it constitutes $11.56. That is, the average amount for the first group is 83.5 per cent., and for the second group, 116.4 per cent, of the average for all of the stores. For the 154 stores which are compared from year to year, the aver- age amount for 1919 for the 115 stores in the small cities is $8.96 and for the 39 stores in the large cities, $11,80. The amounts of selling expense per $100 of total net sales are not only larger for the stores in the large, than for those in the small cities, when the stores are treated as a total, but also when those of a given size but with different location are compared. For both groups of stores differ- ently located, the amounts of selling expense per $100 of total net sales increase as the stores increase in size. For the 225 stores in the small cities the difference between the amounts of selling expense per $100 of total net sales for the small and the large 47 stores is 62.5 per cent. Omitting' the single store in the large city-group, which has a selling expense of $13.08 per $100 of total net sales, the same tendency for the amounts to increase as the stores increase in size, noted for the stores located in small cities, holds for those located in the large cities. The number of stores located in the large cities, however, is rela- tively small and serves as an uncer- tain basis for generalization. The year-to-3^ear comparison of the relation of selling expense to total net sales for the 154 identical stores, dis- tributed according to location, is in- teresting. For each of the years, with a single exception, the amounts in- crease as the stores increase in size. The trend is so unmistakably evident as to warrant the conclusion that selling expense in terms of sales is higher in the large, than it is in the small stores. TABLE 15 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 OF TOTAL EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919, 1918, AND 1914, COMBINED Size ClasElfled Total llet Sales (In 000' £) ;i'OTber of Store- years Total Expense Total Soiling Expense Selling Expense per $100 of Total Expense of Cltv. (In OCiO's; Amoimt ( Per Cent. Graphic , ^ , Actual ) 20 40 60 80 100 120 Total (Averace) 462 $9,684,815 $4,851,112 $50.09 100.0 Under $40 $40 to $80 ^0 to tl80 Sl80 & over 129 172 117 44 741,381 1,981,375 2,897,244 4,064,815 304,954 913, 357 1,491,801 2,141,000 41.13 46.10 51.49 52.67 82.1 92.0 102.8 105.2 Total (Average) : i Total (Average ) 345 4,208,734 2,061,362 48.98 97.8 i Under $40 $40 to $80 $80 to $180 f.180 & over 121 138 77 9 669, 915 1,455,231 1,667,871 415,717 276,723 670, 140 892,563 221,936 41.31 46.05 53.52 53.39 82.5 91.9 106.8 106.6 Under 40 Total (Average) 117 5,476,081 2,789,750 50.94 101.7 Under $40 $40 to $80 .«60 to $180 $180 8: over 8 34 40 35 71,466 526,144 1,229,376 5,649,098 28,231 243,217 599,238 1,919,064 39.50 46.23 48.74 52.59 78.9 92.3 97.3 105.0 40 and : Average $50.09 48 A similar comparison of the rela- tion of selling expense to total ex- pense may be made for the 154 stores differently located. For the combined years, the average amount of selling expense per $100 of total expense for the 345 store-years, for stores in the small cities, as shown in Table 15, is $48.98, and for the 117 store-years, for the stores in the large cities, $50.94. That is, the amount for stores in the small cities is 97.8 per cent., and for the stores in the large cities, 101.7 per cent, of the average for all stores, irrespective of location. When stores of the same size, but with dif- ferent location, are compared, an in- verse condition obtains. The amounts are generally larger for the stores in the small than for those in the large cities. The size of the averages for the two city-groups is explained by the proportions of stores of different size which are included. "Within each TABLE 16 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 OP TOTAL EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919 81z» ClBBslfled Total Het Sales (In OOO'e) Number of Stores Total Expense Total Selling Expence Selling Expense per $100 of Total Expense or city. (la 000 8 ) Amount Per Cent. 5 20 Graphic 40 60 80 100 120 Actual Total (Average) 154 $4,273,325 C^2, 182,027 $51.06 i 100.0 Under S40 ^ to 2eo ^0 to $180 $160 & over 14 57 56 25 76,237 566,162 1,361,844 2,269,062 29,018 246,207 719,436 1,187,366 38.06 43.49 52.83 52.33 74.5 (Average) 85.2 103.5 102.5 Total (Avcrtre ) 115 1,793,459 896,863 50.01 97.9 Under J40 §40 to $80 $80 to S180 JlBO Sc over 14 51 44 6 76,237 481,773 953,437 282,007 29,018 211,678 509,410 146,757 38.06 43.94 55.43 52.04 74.5 Under 40 ^^^^^ 86.1 104.6 101.9 I ! Total (Avert ge ) Z9 2,479,866 1,285,164 51.62 101.5 ; 40 and Under S40 §40 to C80 $80 to $180 $180 h over 6 14 19 64,404 468,407 1,987,055 34,529 210,026 1,040,609 40.91 51.43 52.57 80.1 100.7 102.6 "" '" Averace $51.06 49 TABLE 17 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1918 Slzo of City (In 000' a) Classified Total Het Sales (in 000' s) llijmber of Stores Total Expense Total Selllne Expense Selling Expense per ClOO of Total Expense /c-.ount Per Cent. Graphic ^,<,t„3j_ D 20 40 60 80 100 120 Total (Average; 154 §3,245,123 Cl, 603, 671 §49.63 100.0 Total (Average) Under 540 ^ to feo 580 to $180 §180 & over 42 63 S5 14 248,315 755,488 905,872 1, oc3,443 101,621 345,203 445,138 717,619 40.92 45.70 49.14 53.82 82.5 92.1 99.0 108.4 i Total (Average ) 115 1,412,863 680,737 48.18 97.1 Under §40 §40 to §80 §80 to §180 §180 e; over 41 49 22 3 237,507 539,094 502,552 133,710 99,513 244,788 261,307 75,179 41.90 45.41 52.00 56.23 84.4 91.5 104.8 113.3 XJndQT 40 1 Total (Average) 39 1,830,260 928,884 50.75 102.3 * — 40 and Under §40 §40 to ^0 §80 to §180 §180 & over 1 14 13 11 10,808 216,394 403,320 1,199,738 2,108 100,505 183,831 642,440 19.50 46.45 45.58 53.55 32.3 93.6 91.6 107.9 Average ^43. 63 city-gToup, the amounts increase as the stores increase in size, the average amount being $41.31 for the small stores, and $53.39 for the large stores in the small cities. Similar differ- ences obtain for the stores located in the large cities. In this comparison the stores are combined for the years 1919, 1918, and 1914. In Tables 16 to 18, inclusive, facts similar to those given immediately above are shown for the years 1919, 1918, and 1914, separately. The aver- age amount of selling expense per $100 of total expense is larger for each of the years in the large cities than for those in the small cities. But when stores of the same size, but with different location, are compared an inverse condition obtains. It is this latter comparison which is the more significant. Within both groups of 50 TABLE 18 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OP SELLING EXPENSE PER $100 OP TOTAL EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1914 Classified Total Net Sales (In 000' a) Number of Stores Total Expense Total Selling Expense Selling Expense per $100 of Total Expense of City (in 000' 8) Amoijnt < Per Cent. ^'•^P'^^^ Actval 3 20 4p 60 80 100 120 Total (Average ) 154 52,168,367 51,059,414 $48.86 100.0 Under $40 $40 to $30 $80 to $180 $180 & over 73 52 24 5 416,829 659,705 629,523 452,305 174,315 321,857 327,227 256,015 41.82 48.79 51.98 51.05 85.6 99.9 106.4 104.5 Total Total (Average) 115 1,002,412 483,712 43.25 98.8 Under $40 $40 to 380 §80 to 5180 $180 k over 66 38 11 356,171 434,359 211,882 148,192 213,674 121,846 41.61 49.19 57.51 • 85.2 100.7 117.7 Under 40 Total (Average) 39 1,165,955 575,702 49.38 101.1 j Under $40 $40 to $80 $80 to $180 $180 k over 7 14 13 5 60, 653 225,346 417,646 462,305 26,123 100,183 205,381 236,015 43.07 88.1 98.3 100.7 104.5 40 and over "'^^"^^'" i Average 548,86 cities the amounts increase as the stores increase in size. To this gen- eral rule there are no exceptions, the regularity of the increase, however, being more noticeable in some than in other years. The graphic parts of these tables throw into relief the changes from store-group to store- group, the lengths of the bars being proportional to the amounts which they represent. 51 E. — Summary. From a consideration of Tables 1 to 18, inclusive, certain definite re- lationships between selling expense and sales, and selling expense and total expense, have been discovered. (1). The amounts of selling expense per $100 of total net sales de- creased between 1914 and 1918, and 1918 and 1919, not- withstanding the fact that the average amounts of total net sales and of selling expense per store increased between these years. (2). The average amount of selling expense per $100 of total ex- pense increased between 1914 and 1918, and 1918 and 1919, notwithstanding the fact that both total expense and selling expense per store increased be- tween these years. (3). The amounts of selling expense per $100 of total net sales de- creased between 1914 and 1918, and 1918 and 1919, not only for all stores, but like- wise for stores classified ac- cording to size. (4). The amounts of selling expense per $100 of total expense which, as indicated above, in- creased between 1914 and 1918, and 1918 and 1919 for the stores treated as a whole, de- creased for the stores with an- nual sales of less than $40,000 and of $40,000 to $80,000. They are uncertain as to direc- tion from year to year for stores with annual sales in ex- cess of these amounts. (5). The amounts of selling expense per $100 of total net sales are lower for each year and for all years for stores located in small cities than for those lo- cated in large cities. (6). The amounts of selling expense per $100 of total expense are lower for each year and for the combined years for the stores in the small cities than for those in the large cities, when the stores are treated as a total. When stores of the same size, but with different loca- tions are compared, an inverse condition obtains. (7). The amounts of selling expense per $100 of total net sales in- crease as stores increase in size. This condition obtains for stores treated as a whole and as classified by city location, not only for the combined, but also for the individual years, 1919, 1918, and 1914. (8). The amounts of selling expense per $100 of total expense in- crease as the stores increase in size. This condition obtains for the combined and for the individual years 1919, 1918, and 1914, not only for the stores as a whole, but also when they are classified by the size of the city in which they are located. 52 2. — YEARLY AMOUNTS OF SELLING EX- PENSE IN RELATION TO THE AMOUNTS OF STOCK CARRIED, FOR STORES CLASSIFIED BY YEARS, BY SIZE, AND BY RATES OF STOCK TURN- OVER. The discussion of store inventories in the fifth volume of the Bureau's study of Costs, Merchandising Prac- tices, Advertising and Sales in the Retail Distribution of Clothing showed that inventories in terms of sales decreased between 1914 and 1918, and 1918 and 1919.* The amount per $100 of total net sales for 223 stores in 1914 was $43.70. For the same stores in 1918 it was $41.44, and in 1919, $32.72. Similar de- creases for 149 stores are shown be- low in Table 20. In 1914 the average amount was $43.44, in 1918, $40.53, and in 1919, $32.84. For the two groups of stores the amounts are strikingly the same and the direction of change from year to year identical. • Moreover, a comparison for a vary- ing and an identical number of stores from year to year showed that inven- tories in terms of sales decrease as stores increase in size, the regularity of the tendency being apparent not only when the stores are classified in wide, but also when they are placed in narrow sales-groups. These changes from year to year, and from store-group to store-group may be said to have been established beyond doubt for the stores concerned and they are thought to be true for all stores.f * Vol. V, p. 418. t Ibid., Vol. V, p. 420. In seeking to discover the relations of selling expense to sales and to total expense, and to determine, if possible, the way in which selling expense may be reduced, a complete analysis has been made of selling expense when the stores are classified by the relative amounts of inventory carried. More- over, the analysis is extended to stores when they are classified by size and by rates of stock turnover. It was hoped, from a detailed analysis of the store records available, that it would be possible to determine quan- titatively the eifect of size of inven- tory on selling expense. In this re- spect the conclusions reached are not wholly negative. A. — Yearly Amounts of Selling Ex- pense per $100 of Total Net Sales and per $100 of Total Expense, 1919, 1918, and 1914. For the three years 1919, 1918, and 1914, the records of 149 stores are available for study. The selling ex- penses for the stores classified by amounts of inventory per $100 of total net sales are expressed first, in terms of net sales, and second, in terms of total expense. For the combined years, the stores having on the average an inventory of less than $20 per $100 of total net sales had a selling expense per $100 of total net sales of $8.40; the stores having on the average an inventory between $20 and $40 per $100 of total net sales had a selling expense, simi- larly expressed, of $11.66. From this figure as a maximum, the amounts of 53 selling expense per $100 of total net sales decrease as the size of the in- ventories increase. It will be noted that the direction of the change in the amounts from inventory-group to inventory-group is certain only for those stores having inventories in ex- cess of $20 per $100 of total net sales. This is true not only for the com- bined years, but also for the years separately. A casual inspection of Table 19 might lead to the belief that the oc- casion for the low selling expense per $100 of total net sales is the amount of inventory carried. This, however, is not necessarily the case. The dis- cussion on pages 42 to 44 showed that the amounts of selling expense per $100 of total net sales increase as stores increase in size. Further, the discussion in Volume V* of the Bureau's report on Costs, Merchan- dising Practices, Advertising and Sales in the Reiail Distribution of Clothing, and in Tables 28 to 31, in- clusive, following, show that the size of inventories per $100 of total net sales decreases as the stores increase in size. That is, the stores which have high selling expense have relatively low inventories in terms of sales. Ac- cordingly, the amounts of selling ex- pense in terms of sales decrease as the size of the inventories, similarly expressed, increases. This condition, however, may be due not so much to the size of the inventories as to the size of the stores that reported the sales. The importance of the size of the • Page 420. stores, as such, may be eliminated from consideration and the effect of the size of the inventory noted by ex- pressing the selling expense per $100 of total net sales in terms of the amount sold per $1 of inventory.f This is done in column 6 of Table 19, and is graphically shown by the cor- responding bars. What do these figures reveal? The average selling expense per $100 of total net sales for the amount sold per $1 of inventory is $4.09. For the stores having inventories of less than $20 per $100 of total net sales the cor- responding cost is $1.47. Selling ex- penses, so expressed, increase without an exception as the amounts of in- ventory in terms of sales increase. It should be kept in mind that in these figures the size of the store, as a con- trolling factor in determining selling expense, has been eliminated since in each case the selling expense per $100 of total net sales applies to the amounts sold per $1 of inventory. The uncertain trend of the amounts of selling expense per $100 of total net sales, reflected in Table 19 for the stores with low inventories, has been removed and regularity secured as to the direction of change for stores with different amounts of inventory. The above discussion which relates to the three years combined applies also to the individual years. With- out an exception the selling expenses per $100 of total net sales for the amount sold per $1 of inventory in- crease in each of the years as the size t The method by which this unit is com- puted is explained on page 4, item 17. 54 TABLE 19 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES FOR THE AMOUNT SOLD PER $1 OF INVENTORY, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 AnoMnt of Inventory per $100 of TotBl Hot Salsa Onder |20 t20 to t40 140 to (60 %60 i over Itadsr |20 tSO to t40 |40 to (60 leo 4 over Doder tZO |20 te %*0 %*0 to $60 $60 fc over 168 177 Omlar tso $£0 to $40 |40 to $C0 $60 & over Graphic 20 40 60 60 100 120 $10.88 8.40 11. «6 10.08 9.37 10.52 6.75 10.98 9.54 7.65 10.9 6.06 12.47 9.74 9.55 11.56 10.94 12.71 10.96 9.9S 100.0 77.2 107.2 92.1 86.1 96.7 80.4 100.9 87.7 «9.4 100.9 S5.6 114.6 89.5 es.9 106.2 100.6 116.8 100.7 91. S Selling EipenM per JlOO of Total Ilct Sales per Amcvint Sold per $1 of Inventory O 20 40 60 80 li $4.09 1.47 5.50 5.01 6.55 5.45 1.55 S.29 4.77 5.28 4.44 1.06 3.74 4.87 6.54 Op 12p 140 1^ lap 5.03 1.92 5.81 5.48 6.96 100.0 35.9 es.6 122.5 160.1 84.4 37.4- eo.4 116.6 129.1 108.6 25.9 91.4 119.1 159.9 123.0 46.9 9S.2 134.0 170.1 ATer&s« $10.89 Averege $4.09 of the inventory measured in sales in- creases. A moment's consideration should be given to the averages for the three separate years. It will be recalled that inventories in terms of sales were relatively low in 1919. For the 149 stores in this year, the amount of sell- ing expense per $100 of total net sales was $10.52, or $0.46 less than in 1918 and $1.04 less than in 1914. When the amounts of selling expense per $100 of total net sales are shown for the amount sold per $1 of inventory, the difference in the conditions be- tween the various years is increased, the selling expense in 1919 being ap- proximately $1 less than in 1918 and $1.58 less than in 1914. This differ- ence is attributable, not so much to the sales as such as it is to the low inventories in relation to sales in 1919. The amounts of selling expense per $100 of total net sales for stores in the combined years and for the years separately are averages. If the dis- tribution of the amounts of selling expense per $100 of total net sales is TABLE 20 TOTAL NET SALES, INVENTORY, AND AMOUNT OP INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Selling Expense per 3100 of Total Net Sales Huraber of Store- years Total Net Sales Total Inventory Inventory per JlOO of Total Ket Sales Years Amount Per Cent. ""P'^^^ 1 Actual 20 40 60 80 100 120 140 160 Total (Average) 447 £43,599,972 ♦16,369,406 e37.54 100.0 Total (Average) Under $6 ee to Sl2 $12 i over 93 247 107 4,247,831 26,191,256 13,160,885 1,930,599 9,702,173 4,736,634 45.45 37.04 35.99 121.1 95.9 • Total (Average) 149 20,303,641 6,657,055 32.84 Under 8S ♦6 to «12 $12 It over S8 80 31 2,322,782 12,418,163 5,552,696 879,810 4,055,317 1,731,929 37.33 32.66 31.13 100.9 1919 : : i Total (Average) 149 14,322,667 5,804,340 40.53 ; Under $6 •6 to $12 $12 & over 30 86 33 1,187,535 9,197,800 3,937,332 653,961 3,650,841 1,499,533 55.07 39.69 38.09 146.7 1913 ; Total (Average) 149 6,973,664 3,893,010 43.44 115.7 Under |6 $6 to 412 $12 h DBer 25 81 45 737, 514 4,575,293 3,660,857 396,823 1,996,015 1,505,167 53.81 43.63 41.12 1914 109. S Average $37,54 studied, it is found that 76 per cent, of the stores in the combined years had selling expenses per $100 of total net sales less than $12 and 55 per cent, between $6 and $12. In further proof that the amounts of selling expense per $100 of total net sales decrease as the size of the inventory in terms of sales increases, it may be noted for the combined years, as is shown in Table 20, that the average amount of inventory so expressed for stores with selling ex- pense under $6 per $100 of total net sales is $45.45. For the stores having selling expenses between $6 and $12 per $100 of total net sales it is $37.04, and for those with selling expenses of $12 and over per $100 of total net sales it is $35.99. For each of the three years, similar decreases in the amounts of inventory per $100 of total net sales characterize the stores with increasing selling expense. These relations are shown in Table 20. In the foregoing discussion of 149 56 TABLE 21 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OP INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Inventory per $100 of Total Net Sales Nujnber of Store- years Total Expense Total Selling Expense Selling Expense per vlOO of Total Expense Years Anotmt Per Cent* Graph lo Actual 3 20 40 CO 30 100 120 Total (Average) 447 $9, <■ 50, 641 :>l,745,e29 $50.22 100.0 I Under $20 §20 to $40 ^40 to $60 §60 4 over 14 168 177 83 365,310 5,806,322 2,456,513 824,496 172,900 3,088,085 1,128,967 355,877 47.59 53.18 45.96 43.16 94.3 105.9 91. S 85.9 Total (Average) 1 1 Total (Average) 149 4,168,820 2,135,072 51.22 50.52 52.91 46.03 37.42 102.0 Under $20 §20 to ^ t40 to $60 J60 & over 7 83 51 8 209,266 3,117,375 751,639 90,540 105,711 1,649,518 345,965 33,878 100.6 105.4 91.7 74.5 1919 * I j Total (Average) 149 3,163,345 1,573,249 49.73 99.0 i Under $20 #20 to $40 S40 to $60 560 & over 3 46 60 40 81,440 1,728,776 950,082 403,047 32,117 937,441 427,462 176,229 39.44 54.23 44.99 43.72 78.5 103.0 89.6 87.1 1918 • 1 Total (Average ) 149 2,118,476 1,037,508 48.97 97.5 1 Under $20 $20 to $40 $40 to $60 $60 & over 4 S9 66 40 72,604 960,171 754,792 330,909 35,072 501,126 355,540 145,770 48.31 52.19 47.10 44.05 96.2 103.9 93.8 87.7 1914 ^^^^^ I ^^^^^^^^^ stores for three years, comparisons have been made of the selling expense first, in terms of total net sales, and second, in terms of net sales for the amount sold per $1 of inventory. The conclusions which have been reached are first, that selling expense per $100 Average $50.22 of total net sales decreased between 1914 and 1918, and 1918 and 1919. Second, that for stores with inven- tories in excess of $20 per $100 of total net sales, the amounts of selling expense in terms of sales decrease as the size of the inventories in terms 57 of sales increases. This tendency, however, as has been shown, is due to the store size and not to the size of inventory. Third, that the amounts of selling expense per $100 of total net sales for the amount sold for each $1 of inventory uniformly increase for the combined and for each of the years as the amounts of inventory per $100 of total net sales increase. Fourth, that the selling expense per $100 of total net sales per amount sold per $1 of inventory was noticeably less in 1919 than in either of the other years, largely because of the relatively small inventories for the stores in this year. The general conclusion from the above discussion seems to be that irrespective of store size, stores which have large inventories have relatively high selling expense, and to suggest the practical conclusion that for all stores one way of keeping down sell- ing expense is to reduce the size of the inventory in relation to sales. Another method of comparing the amounts of selling expense for stores from year to year and for stores with different-sized inventories is to ex- press them in terms of total expense. This is done in Table 21. For the combined years, the average selling expense per $100 of total expense is $50.22. For 1919 the amount was $51.22, for 1918, $49.73, and for 1914, $48.97. That is, the amounts in- creased between 1914 and 1918, and 1918 and 1919. During these years both the total operating expense and the selling expense increased. For the 154 stores shown in Table 3, page 36, the total operating expense per store increased between 1914 and 1918 by 49.6 per cent, and between 1914 and 1919 by 97.1 per cent. The cor- responding increases in the amounts of selling expense per store were, re- spectively, 51.9 per cent, and 106.0 per cent. Similar increases from year to year hold for the 149 stores as shown in Table 20. But selling ex- pense increased more rapidly than did total expense, with tiie result that from year to year selling expense in- creased when expressed in terms of total expense. When the stores for the combined years and for the years separately are classified by the amounts of inventory per $100 of total net sales, as in Table 21, the amounts of selling expense per $100 of total expense on the whole de- crease as the amounts of inventory per $100 of total net sales increase. That is, there is an inverse relation- ship between the two factors. But this is more apparent than real. The same line of reasoning which is used above * to account for this margin applies here. It should be remem- bered that the stores with small in- ventories per $100 of total net sales are generally larger than those with large inventories so expressed, and that both selling expense and total operating expense per $100 of total net sales increase as stores increase in size. By consulting Tables 10 to 14, inclusive, pages 43 to 47, this condi- tion for selling expense may be ob- served for stores with different loca- tion. The movement of total operat- ing expense for stores of different * Page 54. 58 TABLE 22 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED Claselfled Total Net Sales Araoint of Inventory per SlCO of Total IJet Sales Ifumber of Store- years Total net Sales Total Selling Expense Selling Expense per $100 of Total Hot Sales Amount Per Cent. (In OOO'b) Graphic 1 20 40 60 80 100 120 "^ Total (Average) 447 $43,599,972 $4,746,829 $10.63 100.0 : Total (Average) Under $20 $20 to $40 $40 to $60 $60 & over 14 168 177 88 2,059,425 26,478,436 11,263,282 3,798,829 172,900 3,088,085 1,128,967 355,877 8.40 11.66 10.02 9.37 77.2 107.2 92.1 86.1 Total (Average) 127 3,532,911 298,231 8.44 77.6 Dnder $40 Undor $20 $20 to $40 $40 to $60 $60 & over 1 18 52 56 28,933 560, 460 1,412,525 1,530,993 948 54,036 112,294 130,953 3.23 9.C4 7.95 8.55 30.1 88.6 75.1 78.6 Total (Average) 165 9,360,348 877,524 9.37 86.1 $40 to $80 Under $20 $20 to $40 $40 to $60 $60 & over 6 52 82 25 402,009 3,083,049 4,458,869 1,416,421 29,622 283,795 428,579 135, 528 7.37 9.21 9.61 9.57 67.7 84.7 88.5 88.0 Total (Average) 112 13,121,494 1,445,029 11.01 101.2 Under $20 $20 to $40 $40 to $60 $60 !c over 5 60 40 7 555, 107 7,076,841 4,638,131 851,415 53,399 602,575 499,659 89,396 9.62 11.34 10.77 10.50 88.4 104.2 99.0 96.5 $30. to $180 ; Total (Average ) 43 17,585,219 2,125,045 12.08 111.0 $180 & over Under $20 $20 to $40 $40 to $60 $60 & over 2 38 3 * 1,073,376 15,758,086 753,757 88,931 1,947,679 68,435 8.29 12.36 76.2 113.6 Average $10,89 59 size is comprehensively treated in Volume III * of the Bureau's report on Costs Merchandising Practices, Advertising and Sales in the Retail Distribution of Clothing. Table 21 should be interpreted with these facts in mind. As shewn on page 57, the amounts of selling expense per $100 of total net sales decrease as the size of inventories in terms of sales in- creases. But the amounts of selling expense per $100 of total net sales per amount sold per $1 of inventory in- crease. A direct relationship would also be secured, as in Table 19, were the amounts of selling expense per $100 of total expense determined for each $1 of inventory sold. It seems unnecessary to express the amounts in this form or to repeat the discussion on this point and the con- clusions to which it has led. It will be sufficient briefly to summarize the relation of selling expense to total ex- pense as follows: First, the amounts increased from 1914 to 1918, and from 1918 to 1919. Second, the amounts decrease as the amounts of inventory per $100 of total expense increase. Third, the amounts per amount sold per $1 of inventory in- crease as the size of the inventory per $100 of total net sales increases. B. — Yearly Amounts of Selling Ex- pense per $100 of Total Net Sales and per $100 of Total Ex- pense, for Stores Classified by Size, 1919, 1918, and 1914. In further consideration of the rela- tion of selling expense to sales and to * Pages 244 to 252, inclusive. total expense for stores with inven- tories of different size per $100 of total net sales, it has been thought of interest to classify the stores with re- spect to size. This is done in detail in Tables 22 to 35, inclusive. The method of presenting the data is as follows: First, to classify the stores by size and by amount of in- ventory per $100 of total net sales for the combined and for the indi- vidual years, and to show the amounts of selling expense per $100 of total net sales for the stores so treated. Second, to show the amounts of in- ventor}' per $100 of total net sales for the stores of different size classified by amounts of selling expense per $100 of total net sales. Third, for the same group of stores, to express the amounts of selling expense in terms of $100 of total expense for the stores classified by size and by amounts of inventory per $100 of total net sales. In Tables 18 to 35, inclusive, the same 149 stores which were consid- ered above are classified by years and by size. For the combined years 1919, 1918, and 1914, the average amounts of selling expense per $100 of total net sales increase as the stores increase in size. For those with an- nual sales under $40,000, it is $8.44 ; for those with annual sales of $40,000 to $80,000 it is $9.37 ; for those with annual sales of $80,000 to $180,000 it is $11.01 ; and for those with sales of $180,000 and over, it is $12.08. These amounts closely correspond to those for the 154 identical stores shown in Table 11, page 44. On the other hand, when the 60 TABLE 23 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919 Amount of Inyentory per $100 of Total Bet Sales Number of Stores Toial Met Sales Total Selling Expense Sailing Expense per $100 of Total Net Sales €la»iirie4 Total Bftt Sales (In 090'a) Amount Per Cent. Graphic 1 ' Actual 20 40 60 80 100 120 Total (Average) 149 $20,303,641 $2,135,072 $10.52 100.0 Under $20 $20 to $40 $40 to $60 $60 & over 7 83 51 S 1, 208, 118 15,018,367 3,628,188 448,963 105,711 1,649,513 345,965 33,878 8. 75* 10.98 9.54 7.55 Total (Average) 104.4 90.7 71.8 Total (Average ) 14 423,714 29,018 6.77 64.4 Onder $40 under $20 $S0 to $40 $40 to $60 $60 it over 2 8 4 68,054 244,012 116,648 6,275 15,797 6,946 9.22 6.47 5.95 87.6 61.5 56.6 — — Total (Average) 55 3,082,152 233,343 7.59 72.1 $40 to $80 Under $20 $20 to $40 $40 to $60 $60 i over « ZS 23 3 150,276 1,237,723 1,472,999 171,154 7,320 94,720 122,592 9,211 4.87 7.36 8.32 5.38 46.3 70.0 79.1 51.1 ^— Total (Average ) 56 6,607,089 700,800 10.61 100.9 Under $20 $20 to $40 $40 to $60 $60 & over 4 37 14 1 384,466 4,382,158 1,679,299 16i;i66 34,307 465,124 183,648 17,721 8.92 10.61 10.94 11.00 84.9 $80 to $180 ; 104.0 104.6 ! ; Total (Average) 24 10,135,636 1,171,411 11.50 109.3 ; Under $20 C2Q to S40 $40 to $60 $60 8c over 1 22 1 673,376 9,230,452 231,873 64,084 1,033,399 23,923 9.52 11.67 10.33 • 90.5 110.9 98.1 $180 & over i Average {10.52 61 TABLE 24 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 Amoujit cf Inventory per tlOO of Total Net Sales (hjjnber of Stores Total Net Seles Total Selling Expense Selling Expense per $100 of Total Ket Sales Claeelfled Totai Vet Sales Amount Per Cent. (In OCiO'e) Graphic Actual p 2P 4P €<) 80 100 120 Total (Average) 149 $14,322,667 $1,573,249 $10.98 i ^^^« ttoder i20 ISO to ^ |40 to $60 ?60 & over 5 46 60 40 630,649 7,617,748 4,369,893 1,884,377 32,117 937,441 427,462 176,229 6,05 12.47 9.74 9.35 : Total (Average ) ^^^ 55. 1 113.6 88.7 • ! 1 Total (Average ) 42 1,256,796 101,621 8.09 73.7 Vaier |40 Under JeO $20 to $40 $40 to $60 $60 fc over 6 13 23 209, 528 381,673 665,694 17,520 27,892 56,209 8.36 7.31 8.44 76.1 66.6 76.9 Total (Average ) 60 3,501,019 331,958 9.48 86.5 ^^^ #40 to $80 Under $20 $20 to $40 $40 to $60 $60 & over 2 15 29 14 130, 649 901,852 1,632,061 836,457 7,270 97,097 144,693 82,898 6.66 10.77 8. 87 9.91 50.6 98.1 80.8 90.3 Totnl (Average) 33 3,860,130 422,051 10.93 99.5 .$80 to tl80 Dnder $20 $20 to $40 $40 to $do $60 & over 14 16 3 1,623,524 1,854,280 382,326 194,659 .190,370 37,122 11.98 10.27 9.71 109.1 93.5 i 88.4 ! Total (Average) 14 5,704,723 717,619 12.68 114.6 4160 !t over Under $20 $20 to $40 $40 to $60 J60 & over 1 11 2 ■ 400,000 4,782,844 521,879 24,847 628, 265 64,507 6.21 13.14 12.36 56.6 112.6 i Average $10.98 62 TABLE 25 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EIXPENSE PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 Amount of Inventory per f-100 of Total llet Sales H\imber of Stores Total Not Sales Total Selling Expense Selling Exponae par $100 of Total Net Sales Classified Total Anount C Per Cent. (In OOO'e) Graphic 1 Actual 20 40 60 80 100 120 140 Total (Average) 149 $8,973,664 $1,037,508 $11.55 100.0 Under tZO JSO to ^ Uo to $60 $60 i over 4 39 66 40 320,653 3,942,321 3,245,201 1,465,464 35,072 501,126 355,540 145,770 10.94 12.71 10.96 9.95 94.6 109.9 94.3 86.1 Total (Average) ^ Total (Average) 71 1,847,402 167,592 9.07 73.5 tinder Uo Under §20 $20 to Uo 540 to $60 $60 i over 1 10 31 29 23,933 282,873 736,840 748,751 948 30,241 63,605 67,793 3.23 10.69 8.72 9,05 28.4 92.5 75.4 73.3 * Total (Average ) 50 2,777,177 311,723 11.22 97.1 Uadar t20 $20 to Uo Uo to 560 §60 8t ovor 2 15 25 e 121,084 893.474 1,353,809 403,810 15,032 91,978 161,294 43,419 12.41 10.29 11.91 10.62 107.4 Ho to $80 103.0 91.9 Total (Average) 23 2,654,275 322,173 12.14 105. Under $20 $20 to $40 Uo to $60 $60 & over 1 9 10 3 170,641 1,071,159 1,104,553 307,923 19,092 142,892 125,641 34,553 11.19 13.34 11.37 11.22 96.8 115.4 96.4 97.1 ^0 to ^0 1 Total (Average) 5 1,694,810 236,015 13.93 i 120.5 JlSO i over Under $20 $20 to $40 $40 to $60 $60 8: over 5 1,694,310 236,015 13.93 ! ' 120.5 1 I Average $U.S6 63 amounts of selling expense per $100 of total net sales are expressed in terms of sales per $1 of inventory, as in Table 26, they are essentially con- stant for the stores with annual sales less than $180,000, and noticeably less for the group having annual sales of $180,000 and over. This, however, is due not so much to the size of the store, as noted above, as it is to the size of the inventory. The large stores are precisely those with low in- ventories per $100 of total net sales. When selling expense is expressed in terms of sales per $1 of inventor}', the advantage accruing to large stores because of small inventory is at onca evident. We are not so much con- cerned here, however, with the selling expense per $100 of total net sales for stores of different size as we are with the amounts for stores of essentially TABLE 26 AMOUNT OP SELLING EXPENSE PER $100 OF TOTAL NET SALES FOR THE AMOUNT SOLD PER $1 OF INVENTORY, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OP INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 ATsrag* iS.03 the same size, but with different amounts of inventory in relation to sales. If the comparisons are re- stricted to selling expense in terms of sales alone, for the stores of the same size, but with varying inventories, it is difficult to see any unmistakable tendency for the selling expense either to increase or decrease. This is noticeably true for the stores with sales under $40,000. For the stores with annual sales of $40,000 to $80,- 000, however, the amounts seem to in- crease with the size of the inventory for the stores having inventories less than $60 per $100 of total net sales. On the other hand, an inverse condi- tion characterizes the stores with an- TABLE 27 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF AVERAGE STOCK PER $100 OF TOTAL NET SALES, 1919 Amount of Averaro Stock per $100 of Total K«t Saleo Number of Stores Total Het Sales Total Selling Expense Selling Expense per $100 of Total Net Sales Classified Total Amount Per Cent. (In 000' a) Graphic Actual 3 20 40 60 80 100 120 140 Total (Average) 124 $18,301,848 {1,928,893 $10.54 100.0 i Total Under JZO $20 to f40 540 S: over 13 65 46 4,466,232 10,722,916 3,112,700 557,827 1,093,673 277, 193 12.49 10.20 8.91 118.5 96.8 84.5 (Averaee) : 1 1 ! ! Total (AverBEo) 16 485,550 32,474 6.69 63.5 Dnder fr40 Under tZO £20 to J-iO J40 & ovor 7 9 229,242 256,308 15,387 17,087 6.71 6.67 63.7 63.3 Total (Average ) 48 2,747,107 215,513 7.65 74.5 UO to J80 Under f20 $20 to S40 §40 ft over 3 18 27 213,343 1,044,586 1,489,178 17,503 72,369 125,641 8.20 6.93 e.'i4 i 77.8 C5.7 80.1 ; Total (Avori-ee) 36 4,411,137 448,296 10.16 96.4 j Sec to $180 Under §20 '20 to $40 '40 k over 3 24 9 301,036 2,974,765 1,135,336 25,147 312,612 110, 537 8.35 10.51 9.74 79.2 99.7 92.4 1 Total (Avfrace) 24 10,e50,054 1,232,610 11. £7 Sieo U over Unccr J 2D C20 to $40 f40 t- over 7 16 1 3,951,653 515,177 13.04 10.71 10.52 123.7 1C1.6 97.9 1 "'- Averasc $10.64 65 nual sales of $80,000 to $180,000. For the largest stores — those with annual sales of $180,000 and over— the in- stances are insufficient for each of the inventorj'-groups to serve as a basis for generalization. Tables 23 to 25 show similar details for 1919, 1918, and 1914, respectively. "When, however, as in Table 26, the selling expenses per $100 of total net sales are shown in terms of the amount sold per $1 of inventory, no such uncertainty as to direction of change from inventory-group to in- ventory-group in stores of different size exists. In every group the amounts grow larger as the amounts of the inventories per $100 of total net sales increase. This does not hold alone for the combined years; it like- wise characterizes the selling expense of the stores in 1919, 1918, and 1914. It is unnecessary to note in detail the size of the amounts and the nature of the changes from store-group to store-group or from inventory-group to inventory-group for each of the three years. Both the amounts and changes are graphically shown in Table 26. The outstanding fact shown by this graphic summary, for the vari- ous groups of stores, is the similarity of the increases in the selling expense per $100 of total net sales per amount sold per $1 of inventory in each of the three years. From these arrays it seems safe to conclude for stores which do a given amount of business, that the selling expenses per $100 of sales for the amount sold per $1 of inventory decrease as the inventories in terms of sales are reduced. This is only another way of saying that selling expense may be reduced in terms of sales by increasing the rapidity with which stock, as shown by size of inventories, is turned. Moreover, it suggests at once the soundness of the conclusion found in the Bureau's study on Costs, Mer- chandising Practices, Advertising and Sale9 in the Retail Distribution of Clothing that the more rapid turnover of stock in the large stores is a com- pensating feature for the increased costs of doing business in these stores.* In addition, it connects up, in a very definite way, selling expense, sales, and the size of the inventory. The relationship between the amount of stock carried per $100 of total net sales and the selling expense in terms of sales may be tested by classifying the stores according to the amount of average stock carried.f This is done in Table 27. The records of 124 stores are available for such a study. While it cost, on the average in 1919, $10.54 to sell $100 worth of goods, the corresponding cost for * It is true that a comparison of inven- tories, on a cost basis, with sales of goods at selling price, does not suffice to measure properly stock turns. If the annual inven- tory at the close of the year is taken roughly to represent the average stock carried throughout the year, such a comparison serves to measure capital turn. The rela- tionships between the annual stock and annual capital turns for 1919 are shown in Volume V of the Bureau 's study of Costs, Merchandising Practices, Advertising and Sales in the Eetail Distribution of Clothing, pp. 488 to 492. ■f To determine the average stock carried, merchants were directed to add together the amounts of stock on hand at the close of each month and divide by 12. 66 TABLE 28 TOTAL NET SALES, im'ENTORY, AND AMOUNT OF INVENTORY PER $100 OP TOTAL NET S.VLES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED Claeslf lad Total Nat Sales (in 000' 3) Total (Average) (Alder S40 i40 to tao $aO to $130 llSO & over Ajnoimt of Selling E;toon39 per JlOO of Total (Jot Sales Total (Average) Onder J6 §6 to $12 $12 & over Total (Average) Under $6 $5 to |12 Sl2 8t over Totol (Average) Under |6 $6 to 812 $12 i over Store- years 2-17 107 Total (Averaje) Under $6 $6 to $12 $12 k over Total (Avorsse) Under $5 $6 to C12 $12 i over Total Hot Sales J4J,500,972 4,247,831 26,191,?56 13,160,895 3,532,911 1,196,433 1,765,845 570,623 9,360,348 2,255,483 5,029,311 2,075,554 Total Inventory 516,369,406 1,930,599 9,702,173 4,736,634 1,989,513 690,355 963,401 335,762 4,254,795 978,714 2,341,134 934,897 13,121,494 795,910 7,966,900 4,353,684 17,585,219 11,429,200 6,156,019 5,193,li: 261,530 3,260,280 1,671,321 4,931,962 3,137,308 1,794,654 Inventory per $100 of Total Net Sales 39.58 32.86 40.92 38.34 27.45 29.15 $37.54 45.15 37.04 35.99 56.31 57.70 54.56 58.34 45.46 43.39 46. SS 45.04 Graphic 100.0 121.1 98.7 95.9 150.0 153.7 145.3 155.7 121.1 U5.5 124.0 120.0 105.4 87.5 109.0 102.1 74.7 73.1 77.7 Average $37.54 Stores with average stock un(ier $20 per $100 of total net sales was $12.49. For those with average stock of $20 to $40 per $100 of total net sales it was $10.20, while for those with aver- age stock of $40 and over it was $8.91. This ten(iency to (iecrease, however, is due to the size of the store rather than to the amount of stock carried. By expressing the selling expense in relation to sales for a given amount sold for each dollar of average stock, the $10.54 given above drops to $3.06. The amounts for the stores, classified by the relative size of the stock car- ried, increase from $1.87, for those 67 TABLE 29 TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SELL- ING EXPENSE PER $100 OF TOTAL NET SALES, 1919 Classified Total net Salee Amount of Selling Expense per ?1C0 of Total Net Sales Number of Stores Total Net Sales Total Inventory Inventory per $100 of Total Net Sales Amount Per Cent. (In OOO'e) Graphic S 20 40 60 60 100 120 140 160 18C Actual Total (Average) Under $6 $6 to $12 $12 & over 149 $20,303,641 $6,667,056 $32.84 100.0 58 80 31 2,522,782 12,418,163 5,562,696 679,810 4,055,317 1,731,929 57.88 52,66 31.15 115.5 99.S 94.8 Total (Average) ', i Total (Average) 14 428,714 215,607 50.29 153.1 i Dnder ^0 Under J6 $6 to $12 $12 i over 5 9 140,498 268,216 81,658 133,969 58.11 46.48 176.9 141.5 1 Total (Average) 55 3,082,152 1,280,953 41.56 126.6 Uo to 4eo Dnder $6 $6 to $12 $12 5: over 25 23 7 1,386,374 1,319,132 376,646 536,642 595,425 150,888 38.71 44.99 40.06 117.9 137.0 122.0 : i Total (Avorage) 56 6,607.089 2,366,933 35.82 109.1 ; $80 to $180 Dnder $6 $6 to $12 $12 8c over 8 30 IS 795,910 5,633,935 2,177,244 261,530 1,350,781 754,622 32.86 57.17 34.66 100.1 113.2 105. S Total (Average) £4 10,185,686 2,803,563 27.52 83.8 j llflo tc over Dnder $6 (6 to $12 $12 & over 18 6 7,176,880 3,006,806 1,977,144 826,419 27.55 27.47 83.9 83.6 : Average $32.84 •with average stock under $20, to $4.46 for those with average stock of $40 and over per $100 of total net sales. The same tendency which was ob- served to characterize stores with in- creasing inventories likewise applies to stores with increasing average stock in relation to sales. In the discussion of Table 20 it was observed, for the combined and for the individual years, that the amounts of inventory per $100 of total net sales decrease as the amounts of sell- ing expense per $100 of total net sales increase. When the stores are classi- fied by size, as in Tables 28 to 31, this tendency is less certain. From the foregoing discussion of 68 TABLE 30 TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OP TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SELL- ING EXPENSE PER $100 OF TOTAL NET SALES, 1918 Classified Total Net Salop Amount of Selling Expense per $100 of Total Net Sales Hijmbor of Stores Total Net Sales Total Inventory Inventory per $100 of Total Net Sales Amount Per Cent. Graphic 1 1 Actual ? 20 40 60 80 100 120 140 160 Total (Average) 149 $14,322,667 $5,804,340 $40.53 1 100.0 Under $6 $6 to $12 $12 & over 30 86 J3 1, 187, 535 9,197,600 3,937,332 653,961 3,650,841 "1,499,538 55.07 39.69 38.09 135.9 97.9 94.0 total (Average ) ; ; i Total (Average ) 42 1,256,795 734, 523 58,44 144.2 Chder $6 $6 to $12 $12 tc over 16 20 6 463,643 601,649 191,503 266,299 359,296 106,928 57.44 59.72 66.88 141.7 147.5 140.5 Under $40 Total (Average) 60 ' 3,501,019 1,729,460 49.40 121.9 Under $6 $6 to $12 $12 & over 14 34 12 723,692 1,970,722 606,405 587,662 954,790 387,006 53.55 48.45 47.99 132.1 119.5 118.4 $40 to *eo 1 Total (Average ) 33 3,860,130 1,741,562 45.12 46.25 42.31 111.3 i $80 to $180 Under $6 $6 to $12 $12 & over 23 10 2,749,060 1,111,070 1,271,499 470,063 114.1 104.4 ; Total (Average ) 14 5,704,723 1,598,795 28.03 69.2 $180 & over Under $6 $6 to $12 $12 & over e 5 5,876,369 1,826,354 1,065,256 533, 539 27.46 29.18 67.8 72.0 Average $40.53 the amounts of selling expense per $100 of total net sales and per $100 of total net sales for the amount sold for each unit of inventory, for stores of different size and having different amounts of inventory per $100 of total net sales, it may be concluded: First, that for the combined and for the individual years, the amounts of selling expense per $100 of total net sales increase as the size of the stores increases. Second, that for a given store size, the amounts of selling ex- pense per $100 of total net sales do not show an unmistakable tendency either to increase or to decrease as 69 TABLE 31 TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OP TOTAL NET SALES, FOR 149 STORES CL-N.SSIFIED BY SIZE AND BY AMOUNT OF SELL- ING EXPENSE PER $100 OF TOTAL NET SALES, 1914 Amount of Selling Exponae per SlOO of Total net Salea Himbar of Stores Total Hot Sales Total Inventory Inventory per $100 of Total Net Sales ' Total llet Salea AmD'jnt Per Cent. (in 000' s) Graphic Actual 3 20 40 60 80 100 120 140 Total (Average) 149 $3,973,664 $3,393,010 $43.44 100.0 Total Under $6 $6 to $12 $12 & over 25 81 43 737,514 4,575,293 3,660,857 396,328 1,996,015 1,505,157 53.31 43.63 41.12 123.9 100.4 94.7 {Average ) Total (Average) 71 1,847,402 1,039,383 56.26 129.5 Onder $40 Under $6 $6 to $12 $12 i over 22 35 14 532,297 875,930 379, 125 342,413 470,136 226,834 57.31 53.67 59.33 133.1 123.5 137.7 Total (Average) 50 2,777,177 1,244,532 44.81 103.2 $40 to $80 Under $6 $6 to $12 §12 & over 3 31 16 145,217 1,739,457 892,503 54,410 792,971 397,001 37.47 45.59 44.48 86.3 104.9 102.4 Total (Average ) 23 2,654,275 1,034,635 40.86 94.1 $80 to $180 Under $6 $6 to $12 $12 tc over 13 10 1,583,905 1,070,370 638,000 445,635 40.23 41.73 92.7 96.1 Total (Average ) 5 1,694,310 529,604 31.25 71.9 $160 2c over Under $6 $6 to $12 $12 & over 2 3 375,951 1,313,959 94,908 434.696 25.24 32.96 53.1 75.9 Average $43.44 the amounts of inventory per $100 of total net sales increase. Third, that the amounts of selling expense per $100 of total net sales for the amount sold for each $1 of inventory increase with the size of the inventory for stores of all sizes. Fourth, that the amounts of inventory per $100 of total net sales decrease as the amounts of selling expense per $100 of total net sales increase. The practical aspects of these con- clusions may be expressed as follows : If it is desired to decrease the amount 70 TABLE 32 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED Classified Totel Net Sales (m ooo'b) Amoiiit of Inventory per 3100 of Total IJet Sales Etore- yeara Total Expense Total Selling Expense Selling Expense per JlOO of Total Expense Graphic 20 40 60 80 100 120 ''I'll Total (Average) 447 J9, 450, 641 }, 745, 629 Total (Average ) Dtoder $20 $20 to |40 ^0 to t60 560 i over 14 168 177 88 363,310 5,606,522 2,456,515 624,496 172,900 3,086,085 1,128,967 555,877 724,495 298,231 Dnder ^0 320 to J40 $40 to $60 $60 £c over 1 18 52 56 3,315 104,594 505,231 511,357 948 5'{,036 112,294 130,953 $40 to Total (Average) Under $20 $20 to $40 $40 to $60 $60 & over 1,690,810 877,524 6 52 62 25 78,735 567,892 923,878 300,307 29,622 283,795 426,579 135,526 Total (Average) 2,809,487 1,445,029 $60 to $180 Under $20 $20 to $40 $40 to $60 $60 £; over 5 60 40 7 101,792 1,468,341 1,026,522 212,832 53,599 602,575 499, 659 89,596 Total (Average ) 4,025,849 2,125,045 $160 & over Under $20 $20 to $40 $40 to $60 $60 & over 2 38 3 179,472 3,645,495 200,682 88,931 1,947,679 68,435 $50.22 47.59 53.18 45.96 43.16 41.16 26.61 51.66 36.79 42.06 46.41 37.62 48.27 46.39 45.13 51.43 52.46 54.66 48.67 42.00 52.79 49.55 53.43 44.02 100.0 94.8 105.9 91.5 65.9 62.0 57.0 102,9 73.3 63.8 92.4 74.9 96.1 92.4 89.9 102.4 104.5 108.8 96.9 83.6 105.1 98.7 106.4 67.7 Averaee $50.22 71 of selling expense when expressed in terms of sales, one method by which it may be done is to reduce the amount of inventory in relation to sales. How completely such a reduc- tion is within the power of the indi- vidual merchant it is difficult to say. The study by the Bureau of Business Research, however, leads to the con- clusion that in many instances the inventories in terms of sales are unnecessarily large, as a result of unscientific purchasing or through failure to secure sales. In this con- nection the fifth volume of the Bureau's study of Costs, Merchandis- ing Practices, Advertising and Sales in the Retail Distrihutian of Clothing, which has to do with purchases and turnover, may be consulted for a more detailed treatment of this par- ticular phase of the subject. Selling expense may also be ex- pressed in terms of total operating expense. Out of every $100 of total expense, $50.22, on the average for the three years, for the 149 identical stores under consideration, was ex- pended for selling as the term is used in this volume. For the stores with sales under $40,000 the amount was $41.16; for those with sales of $40,- 000 to $80,000 it was $46.41; for those with sales of $80,000 to $180,000 it was $51.43; and for those with sales of $180,000 and over it was $52.79. That is, as the stores increase in size, selling expense becomes an increasing proportion of total operat- ing expense. For the group of small- est stores, the amount was 82.0 per cent., and for th(; group of largest stores, 105.1 per cent, of the average for all stores. Do the amounts of selling expense per $100 of total expense tend to become larger or smaller proportion- ately for these stores as the amounts of inventory in relation to sales in- crease? When the stores are con- sidered as a whole, Table 32 shows that the amounts of selling expense per $100 of total operating expense decrease as inventories in terms of sales increase. Moreover, this condi- tion generally holds for stores when classified by size. If the amounts of selling expense per $100 of total ex- pense are expressed in terms of the amount sold per $1 of inventory, the direction of change from inventory- group to inventory-group is unmis- takable. While it cost $47.59 on the average during the three years for every $100 of total expense for stores having inventories under $20 per $100 of total net sales, it cost but $8.33 when the selling expense, so expressed, is determined for the amount sold per $1 of inventory. From this minimum the amounts rapidly increase to $30.18 for stores with inventories of $60 and over per $100 of total net sales. This condition holds not only for stores unclassified as to size, but is also true when they are classified in the customary groups according to sales. Perhaps the relations between selling expense and total expense, in stores having different amounts of inventory in relation to sales, will be understood more readily if the results of the analysis are put as follows: 72 TABLE 33 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SAliES, 1919 Classified Total Net Sales Amount of Inventory per SlOO of Total Net Sales Ilwibor of Stores Total Expense Totsvl Selling Expense Selling Expense per $100 of Total iixpenae Amount Per Cent. (In OOO's) Graphic . ^ , Actual 3 ?.0 40 60 eo 100 120 Total (Avor-.ce ) 149 $4,160,820 $2,135,072 $51.22 100.0 Under 520 $20 to $40 $40 to $60 $60 & over 7 83 51 8 209,266 3,117,375 751,639 90,540 105,711 1,649,518 345,965 33,878 50.52 52.91 46.03 37.42 98.5 103.3 89.9 73.1 Total (Average ) ! i Total (Average) 14 76,2:.7 29,018 38.06 74.3 Under $40 Under $20 $20 to $40 $40 to $60 *;60 It over 2 8 4 14,142 47, 188 14, 907 6,275 15,797 6,946 44.37 33.48 46.60 86.5 65.4 91.0 1 Total (i.veruge) 55 536, 176 233,843 43.61 85.1 ^^^""""^^ Under $20 $20 to $40 $40 to $60 $60 J: over 2 22 28 S 16,881 208,870 276,474 33, 951 7,320 94,720 122,592 9,211 43.36 45.35 44.34 27.13 ^^^^^ 84.7 88.5 86.5 53.0 $40 to 580 i Total (Avers-ge) 56 1,326,311 700,800 52.84 103.2 Under $20 $20 to $40 $40 to $60 $60 i-. over 4 37 14 1 67,086 860,490 357,053 41,682 34,307 465, 124 183, 648 17,721 51.14 54.05 51.43 42.51 99.0 105.5 100.4 33.0 $80 to $180 1 Total (Average ) 24 2,230,096 1,171,411 62.53 102.5 ! Under $20 $20 to $40 $40 to $60 $50 & over 1 22 1 125,299 2,033,873 70,924 64,084 1,083,399 23,928 51.14 53.27 33.74 99.8 104.0 65.9 vl30 & over ; Average $51.22 73 TABLE 34 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 Claselfled Total Ket sales Airount of Inventory per $100 of Total Net Sales Number of Stores Total Expense Total Selling Expense Selling Expense per $100 of Total Expense Amoimt Per Cent. (In coo's) '^^^P^^'^ 1 Actnal CO 40 60 80 100 12o' Total (Average ) 149 ti, 163, 345 $1,573,249 $49.75 100.0 Under $20 $20 to $40 $40 to $60 $60 k over 3 46 60 40 81,440 1,728,776 950,082 405,047 32,117 937,441 427,462 176,229 39.44 54.23 44.99 43.T8 79.3 109.0 90.5 87.9 Total (Average) 1 Total (Average) 42 248,315 101,621 40.92 82.3 j Under $40 Under $20 $20 to $40 $40 to $60 $60 & over 6 IS 23 52,127 61,880 154,308 17,520 27,892 66,209 54.53 34.06 41.85 109.7 68.5 84.2 Total (Average) 60 719,568 331,958 46.13 92.8 — $40 to $80 Under $20 $20 to $40 $40 to $60 560 li over 2 15 29 14 27,267 187,585 329, 9e0 174,756 7,270 87,097 144,695 82,898 26.66 51.76 43.85 47.44 53.6 104.1 88.2 95.4 1 ^^^1 i Total (Aver&ge) 33 862,014 422,051 48.96 98.5 j $80 to $180 Under $20 $20 to $40 $40 to $60 $60 & over 14 16 3 359,747 408,284 93,983 194,559 190,370 37,122 54.08 46.63 39.50 108.7 95.8 79.4 Total (Average) 14 1,333,448 717,619 53.82 108.2 Ondep $20 $20 to $40 $40 to $60 $60 & over 1 11 2 54,173 1,149,317 129,958 24,847 628,265 64,507 45.87 54.66 49.64 92.2 109.9 99.9 $180 & over Average £49.73 74 The selling expense per $100 of total expense for the amount sold per $1 of inventory is $8.33, when the in- ventory per $100 of total net sales is less than $20. When the inventory is between $20 and $40 the amount is $15.96, and when the inventory is $60 and over the amount increases to $30.18. Tables 32 to 35, inclusive, show that selling expense becomes a pro- portionately larger part of total ex- pense as stores increase in size. On the other hand, it is large stores that have relatively small inventories in terms of sales. Accordingly, when the stores are classified by the amounts of inventory in relation to sales, the amounts of selling expense per $100 of total expense decrease as is shown in the total sections of these tables. The large stores seem to be operating at a disadvantage so far as this proportion is concerned. On the other hand, when the selling expense per $100 of total expense is related to the amounts sold per $1 of inven- tory, an inverse condition obtains. The selling expense of the stores having the small inventories — the large stores — rather than being rela- tively large is relatively small, the amount for the stores with inventories averaging less than $20 per $100 of total net sales being only slightly more than one-fourth as large as the amount for those stores with inven- tories of $60 and over. After all, it is the amount of sales which produces profits, and which suggests, in this connection, the wisdom of low in- ventories. C. — Yearly Amounts of Selling Ex- pense per $100 of Total Net Sales and per $100 of Total Expense, for Stores Classified by Rates of Stock Turnover and by Size, 1919. The records of 282 stores for the year 1919 are available for the study of the relation of selling expense to total net sales and to total expense according to the rates of stock turn- over which the stores had in this year. The annual stock turnover rates are computed by dividing the total cost of merchandise sold during the year by the average of inventories taken at cost at the close of the years 1918 and 1919. "Cost of merchandise sold" is determined by adding to the 1918 inventory the purchases, plus the freight and cartage, less returns to manufacturers, 1919, and deduct- ing therefrom the 1919 inventory. In Table 36 the 282 stores, without respect to size, are classified accord- ing to the annual rates of stock turn- over. Nine of the stores turned their stock on an average less than once, 136 between one and two times, 100 between two and three times, 23 be- tween three and four times, and 14, four times and more. The average number of stock turns for the stores as a whole was 2.2. This figure closely agrees with that for a somewhat larger number of stores, the stock turns of which are discussed in Volume V * of the Bureau's study on Costs, Mer- chandising Practices, Advertising and Sales in the Eetail Distributio-n of Clothing. * pp. 464 ff. 75 TABLE 35 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 Classified Total Net Sales (In OOO's) Total (Average) Under $40 |40 to to $130 $180 8t over Amount of Inventory per JlOO of Total net Sales Total (Average ) Under $20 $20 to $40 $40 to $60 $60 3c over Total (Average) Under $20 :^20 to $40 $40 to $50 $60 & over Humber of Stores Total (Average ) Under $20 $20 to $40 $40 to $60 $60 & over Total (Average ) Under $20 $20 to $40 $40 to $60 $60 4: over Total (Average ) Under $20 $20 to $40 $40 to $60 $60 li over Total Expense $2,118,476 72,604 960,171 754,792 330,909 399,943 3,313 58,325 176,163 162,142 635,066 34,585 191,437 317,444 91,600 621,152 34,706 248,104 251,185 77,167 462,305 462,305 Total Selling Expense Selling Expense per '^100 of Total Expense $1,037,508 35,072 601,126 355,540 145,770 167,592 948 30,241 68,605 67,798 311,723 Graphic 20 40 60 80 100 120 15,032 91,978 161,294 43,419 322,178 19,092 143,692 125,601 34,553 256,015 236,015 $49.97 48.31 52.19 47.10 44.05 41.90 23.61 51.85 38.94 41.81 49.09 43.46 48.05 50.31 47.40 51.87 55.01 57.59 48.10 44.73 100.0 93.7 106.6 96.2 90.0 85.6 53.4 105.9 79.5 35.4 93.1 103.8 96.8 105.9 112.3 117.6 93.8 91.4 Average $48.97 76 The average selling expense per $100 of total net sales for these stores is $10.16. For those with less than one turn it is $7.66 and from this amount as a minimum the selling expense increases for each group of stores classified by rates at which stock was turned until the stores with between three and four turns are en- countered. The average for this group is $11.47. For those having four or more turns, the corresponding amount is $8.64. A casual inspection of this table would seem to indicate that the stores having low turnover rates are in an advantageous position so far as selling expense is concerned. This is not the case, however, when the number of turns made is taken into consideration. This latter point of view is developed in the column of the table with the caption, * ' Selling expense per $100 of total net sales per stock turnover. ' ' * The average * The method by which this unit is com- puted is explained on page 4, item 19. amount of selling expense so ex- pressed for the entire group is $4.62. For the stores which turned their stock less than once it is $10.21, and from this figure as a maximum the amounts rapidly decrease to $1.73 for those stores having four or more annual turns. These decreasing amounts of selling expense in relation to sales per stock turnover immediately suggest the saving which is possible to stores by increasing the rates at which they turn their stock. After all, the amounts of selling expense in terms of sales alone do not tell a complete story. It is only when such expense is expressed on a unit basis that the true comparative significance of the costs for stores operating under dif- ferent conditions is revealed. Table 36, moreover, needs to be considered in connection with the foregoing tables in which the size of stores is considered from the point of view of selling expense. It has been TABLE 36 AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL NET SALES PER STOCK TURNOVER, FOR STORES CLASSIFIED BY RATES OF STOCK TURNOVER, 1919 Rates of Stock Turnover Total (Average ) Onder 1 1 to 2 2 to 9 9 to « 4 h over Nvanber of Stores 9 136 100 23 14 Selling Expense per $100 of Total Net Sales fer Cent. Qraphlo 20 40 60 80 100 120 ♦10.16 7.66 9.60 10.60 11.47 8.64 100.0 75.4 94. S 104.3 112.9 85.0 Average flO.ie Selling Expense per $100 of Total Net Sales per Stock Turnover Graphic 20 40 60 80 100 120 140 $4.62 10.21 6.40 4.24 3.13 1.79 ICO.O 221.0' 158.5 91.3 67.7 57.4 Average $4.62 Pull length not shown 77 TABLE 37 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR STORES CLASSIFIED BY RATES OP STOCK TURNOVER AND BY SIZE, 1919 Classified Total Hot Sales (m COO'e) Number of Stores Total Net Sales Total Selling Expense Selling Expense per $100 of To\,al Hot Sales Ratea of Stock Tvimover Amoiuit Per Cent. Graphic ^,^,^^ D 20 40 60 80 100 120 140 Total (Average ) 282 $35,563,014 $3,611,688 $10.16 100.0 IHHaB^ Total (Average) Under $40 $40 to eso fcO to Jl80 $180 & over 33 106 98 45 1,012,152 6,020,400 11,667,072 16,863,390 60,684 448,806 1,185,724 1,916,474 6.00 7.45 10.16 11.57 59.1 73.3 100,0 111.9 ; ^1^^^^ Total (Average) ' 9 601,109 46,063 7.66 75.4 Dndor 1 tJnder $40 $40 to 580 fee to Jieo $180 k over 2 4 3 64,787 226,698 309,024 4,850 15,794 25,419 7.49 6.97 8.21 75.7 68.6 80.8 i 1 Total (Average) 136 11,010,775 1,057,084 9.50 94. S ■ 1 to 2 Under J40 $40 to $80 $80 to $180 $180 & over 19 65 45 6 570,712 3,571,041 5,487,136 1,391,385 36, 307 269,785 591,407 159,684 6.35 7.55 10.78 11.55 62.6 74.5 106.1 113.7 Total (Average ) 100 15,987,018 1,694,631 10.60 104.3 i 2 to 3 Under C40 $40 to 580 $80 to $130 $180 J; over 12 26 40 22 376,653 1,561,875 4,663,355 9,385,135 19,527 120,377 452,493 1,102,234 5.18 7.71 9.70 11.74 51. 75.9 95.5 115.6 Total (Average) 23 4,443,953 509,713 11.47 112.9 3 to 4 Under $40 $40 to $60 $80 to $180 $180 & over 8 5 10 510,510 617,557 3,315,886 35,529 75,426 398,758 6.96 12.21 12.03 68. S 120.2 lie. 4 Total (Average) 14 3,520,159 304, 197 8.64 85.0 4 tc over Under $40 $40 to $80 $80 to $180 $180 i over 2 5 7 150,276 589, 400 2,780,463 7,320 40,979 255,898 4.87 6.95 9.20 47.9 68.4 90.6 ^^^^" 1 Average $10.16 78 shown repeatedly that the selling ex- pense of stores increases directly with their size. When the additional fac- tor of turnover is considered, however, it is precisely the stores which are large that have relatively high turn- over rates and, accordingly, it is these stores which have low selling expense per $100 of total net sales per stock turnover. From this point of view, the large stores operate at an advan- tage as compared to the small stores. The relations of size of store and rate of stock turnover to selling ex- pense per $100 of total net sales are developed in Table 37. The total section of this table shows for 282 stores classified by size the amounts of selling expense per $100 of total net sales. The comparison reaffirms the conclusion that the amounts of selling expense increase as the stores increase in size. When stores are classified by size for the different classified rates of turnover, in each group the amounts of selling expense per $100 of total net sales are shown to increase, with one exception, with the size of the store. The consistency of the increase from store-group to store-group is in- dicated by the graphic parts of the table, while the average amount for each group is given in dollars and cents. Another way of expressing the amounts of selling expense of these stores, according to size and rates of stock turnover, is in terms of total expense. This is done in Table 38. From an analysis of this table it may be concluded that the amounts of selling expense per $100 of total ex- pense increase for all the stores, and for those having classified rates of stock turnover, as the amounts of sales increase. How consistent this increase is for each group of stores classified by rates of stock turnover is shown graphically by the lengths of the bars which are drawn propor- tional to the amounts. The significance of Tables 36 to 38, inclusive, may be summarized as fol- lows: First, the amounts of selling expense per $100 of total net sales increase as the rates of stock turnover increase. This condition holds for every group except for the one having four or more turns per year. Second, the amounts of selling expense per $100 of total net sales per stock turn- over decrease as the number of stock turns increase. Third, the amounts of selling expense per $100 of total net sales increase for each classified rate of stock turnover as the stores increase in size. Fourth, the amounts of selling expense per $100 of total expense increase as stores increase in size for those having classified rates of stock turnover. The relation of selling expense to sales and to stock turnover for the same 282 stores may be further illus- trated by classifying the stores by size and by the amounts of inventory on hand at the close of the year 1919. This is done in Table 39. The amounts of selling expense for stores of different size and with different amounts of inventory are expressed first, in terms of total net sales, and second, in terms of total net sales per 79 TABLE 38 TOTAL EXPENSE, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE, FOR STORES CLASSIFIED BY RATES OF STOCK TURNOVER AND BY SIZE, 1919 Rates of Stock Turnover Classified Total Het Sales (In OOO'b) Nujnber of Stores Total Brpanse Total Selling Expense Selling Expense per $100 of Total Expense AjnouBt Per Cent. <^»P'^» Actual > 20 40 60 80 100 120 140 Total (Average) 282 $7,409,502 $5,611,688 $48.74 35.10 41»79 51.66 49.55 49.79 i 100.0 « TotEl (ATerane) raider |40 $40 to $80 $80 to $180 $180 & over 55 106 98 45 172,887 1,073,679 2,295,137 5,867,599 60,684 448,806 V 185, 724 1,916,474 72.0 85.7 106.0 101.7 Total (Average) 9 92,517 46,063 102.2 raider $40 $40 to $80 $80 to $180 $180 fc over 2 4 5 12,529 39, 626 40,362 4,850 15,794 25,419 38.71 39.86 62.98 79.4 81.8 129.e Vaier 1 i i 1 Total (Average) 136 2,200,164 1,057,084 48.05 98.6 raider $40 $40 to $80 $80 to $180 $180 Sc over 19 66 45 6 97,094 648,685 1,147,039 307,346 36,307 269,786 591,407 159,584 37.39 41.59 51.56 51.92 76.7 85. 3 los.e 106.5 1 to 2 ! Total (Average) 100 3,461,675 1, 694, 631 48.95 30.87 42.48 50.34 49.74 100.4 2 to 3 raider $40 $40 to $80 $80 to $180 $180 & over 12 26 40 22 63,264 283,383 898,948 2,216,078 19,527 120,377 452,493 1,102,234 63.3 87.2 10S.5 102.1 ; ) Total (Average ) 23 957,575 509,713 53.23 109.2 1 > 5 to 4 raider $40 $40 to $80 $80 to $180 $180 & over 8 5 10 85,304 121,706 750,565 36,529 75,426 398,758 41.65 61.97 53.13 85.5 127.1 109.0 1 1 Total (Average) 14 697,573 304, 197 43.61 69.5 1 4 & over raider $40 $40 to $80 v80 to $180 $180 l^ over 2 5 7 16,681 87,082 593, 610 7,320 40,979 255,698 43.36 47.06 4o.n 89.0 96.6 88.4 ^^^^^1 I 1 Average $48.74 80 stock turnover. Table 39 merits care- ful study. It shows: First, that the amounts of selling expense per $100 of total net sales increase as stores increase in size. Second, that these amounts for stores of a given size, on the whole, increase as the size of the inventory per $100 of total net sales increases. Third, that the amounts of selling expense per $100 of total net sales per stock turnover for stores of different size increase according to the size of store, for those stores with sales of less than $180,000, while for those with sales in excess of this amount, they de- crease. Fourth, for each group of stores, when classified by size, the selling expenses per $100 of total net sales per stock turnover increase as the amounts of inventory per $100 of total net sales increase. Certain practical conclusions seem to follow from the foregoing summary statement. To illustrate: There are 106 stores with annual sales between $40,000 and $80,000. For these stores it cost, on the average, $7.45 in selling TABLE 39 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOR STORES CLASSIFIED BY SIZE OF STORE AND BY AMOUNT OP INVENTORY PER $100 OF TOTAL NET SALES, 1919 Amount of luioiitcry per tioo of TDt«l lot Salea IhJinbor of Stores Selling Expense per $100 of Total Net Sales Selling Expense per »100 of Total Vet Sales per Stock Turnover BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919 Classified Total Amount of Inventory per $100 of Total Net Sales Average Annial Stock Turnover Number of Stores Having Specified Rates of Stoclc Turnover Net Salea (In 000' 6 ) Total Under 1 1 to 2 2 to 3 5 to 4 4 8: over Total (Average) 2.2 282 9 136 100 23 14 Total (Average ) Obder $$0 $20 to $40 $40 tc over 4.4 2.4 1.4 17 153 112 2 7 42 94 90 10 6 IS 1 IX S Total (Average) 1.5 33 2 19 12 _ _ Dhder §40 tfader $20 $20 to $40 $40 & over 2.1 1.3 10 23 2 2 17 8 4 - Total (Average ) 1.8 106 4 66 26 8 2 |40 to $80 Onder $20 $20 to $40 $40 & over 4.2 2.2 l.S 3 45 58 1 5 17 49 21 5 1 6 1 2 Total (Average ) 1.9 93 3 45 40 5 5 #80 to $180 Uoder $20 $20 to $40 $40 & over 4.2 2.2 1.5 5 63 30 X 2 13 27 39 1 2 3 3 2 Total (Average ) 2.8 45 . 6 22 10 7 $180 & over Under $20 $20 to $40 $40 k over 4.5 2.6 1.2 9 35 1 ^ 5 1 22 3 7 6 83 tables are of interest in themselves, but are included primarily at this place to supplement Table 39 and to show how nearly the respective aver- ages, used in calculating the selling expense per $100 of total net sales for each stock turnover, are charac- teristic of the conditions in the vari- ous stores under consideration. Table 42 is identical with Table 39 except in the order in which the data are classified. In this table the amounts of selling expense are shown both in terms of sales and in terms of sales per stock turn for stores with different amounts of inventory. For all the stores unclassified by inven- tories, selling expenses increase as the stores increase in size. This condition holds, moreover, when the stores are classified by the amounts of inventory on hand at the close of 1919. The nature of the changes in the amounts from group to group is shown in the graphic part of the table. TABLE 42 AMOUNT OP SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOB STORES CLASSIFIED BY AMOUNT OF INVENTORY PER $100 OP TOTAL NET SALES AND BY SIZE, 1919 Classified Total Met Salee (In OOO'e) Hmber of stores Sftlling Kxpenae per ^00 of TBtel net 8*lea Selling Bxpense per per $100 of Total Wet Sales stock TumoTor Ir.vo itory per vlOO of Total Net SdoB Aneunt tar Cent. Amenmt < Per Cent. Crapble 3 20 40 60 80 100 120 Aotual ) 20 40 60 Orophlo eO 100 120 140 160 ISO £00 Actual Total f Average ) 282 510.16 100.0 $4.62 hv 100.0 Under $40 (40 to $80 880 to JISO SlBO 4 over 106 98 45 6.00 7.45 10.16 11.36 5S.1 73.3 100.0 HI. 8 4.00 4.14 s.ss 4. OS 86.5 Totnl (Averago) mmaim Total (Averace ) 17 9. OS 88.9 2.05 Under #20 Dnaor J40 ^0 to J80 £80 to $180 SIBO k over S s 9 5.85 8.82 9.27 57.6 86.8 91.2 1.39 2.10 2.06 30.1 44.6 Total (Average) 15S 10.79 106.2 4.50 ■■■'" tso to Uo Under S40 ^40 to {80 SSO to $180 tieo & over 10 45 63 S5 5.72 7.13 10.23 11.03 56.3 70.2 101.2 117.4 2.72 3.24 4.67 4.59 S8.9 70.1 1 99.4 1 1 Total (Average) 112 e.84 87.0 6.31 ^M^^ I.—. 1 Under $40 $40 to $80 $80 to $180 $1S0 t over 2i 58 »0 1 6.13 7.64 10.10 10.33 60.3 77.2 99.4 101.6 4.72 5.23 6.73 e.eo I »40 k onr 186.1 '• Avorago t^O.lG Avoro^o $4*62 D- — Summary. (1). The amounts of selling ex- pense per $100 of total net sales and also per $100 of total net sales per amount sold per $1 of inventory de- creased between 1914 and 1918, and between 1918 and 1919. This is true for all stores and also for the stores classified by size and by amount of inventory per $100 of total net sales. (2). Inventories in terms of sales decreased between 1914 and 1918, and 1918 and 1919. (3) . As the inventories in terms of sales increase, the amounts of selling expense per $100 of total net sales on the whole decrease. For stores of a given size, they increase. In terms of the amount sold per $1 of inventory and per stock turnover the amounjts in- crease for all stores and also for stores of a given size. (4). As the size of the stores in- creases, the selling expenses per $100 of total net sales per amount sold per $1 of inven- tory generally increase for stores with sales under $180,- 000 and then decrease for the stores with sales of $180,000 and over. (5). The proportions of total ex- pense attributable to selling increase as the size of the stores increases, and decrease as the inventories in terms of sales increase. (6). For stores with a given rate of stock turnover, the amounts of selling expense, in terms of sales alone or of sales and stock turnover, increase as the stores increase in size. (7). For stores with a given rate of stock turnover, the amounts of selling expense in terms of total expense, alone or com- bined with the rate of stock turnover, increase as stores increase in size. (8). The amounts of selling ex- pense per $100 of total net sales increase, and the amounts per $100 of total net sales per stock turnover de- crease as the rates of stock turnover increase. 3. YEARLY AMOUNTS OF SELLING EXPENSE IN RELATION TO THE AMOUNTS OF GOODS SOLD PER FULL- TIME SALES-PERSON AND TO THE METHODS BY WHICH SALESMEN ARE PAID, FOR STORES CLASSIFIED BY YEARS, BY SIZE, AND BY LOCA- TION. Sales of goods in clothing stores are determined in part by the personnel of the sales force, and the selling ex- pense in its relation to sales is con- trolled largely by the number of salesmen employed and the amount of sales which they make in a given length of time. In order to get some measure of the variations in selling expense for stores under different 85 conditions of operation and different methods of paying salesmen, it has been thought of interest to study a group of stores in detail. In the present section the analysis of selling expense is directed toward this end. Two units have been used to measure amounts of selling expense. First, they are expressed in terms of sales, and second, in terms of total expense. Both of these units, how- ever, are now refined so as to secure the amounts in terms of $1,000 of sales per full-time sales-person and in terms of the rapidity with which stock is turned during a year.* (1) — YEARLY AMOUNTS OP SELLING EXPENSE IN RELATION TO AMOUNTS OF GOODS SOLD PER FULL-TIME S^VLES-PERSON. A. — Yearly Amounts of Selling Expense per $100 of Total Net Sales and per $100 of Total Expense, 1919, 1918, and 1914. The records of 146 identical stores for the years 1919, 1918, and 1914 are available for a study of the amounts of selling expense in stores in relation to the amount sold per full-time sales-person. Subsequent analysis — pages 89 to 111 — shows the amounts of selling expense expressed in terms of both sales and total ex- pense for stores classified by size and by the amounts sold per full-time sales-person. The present discussion is concerned with the relation between * The methods by which these units are computed are explained on page 4, items 19, 20, 22, and 23. selling expense and sales measured in both units for the 146 stores for the three years. Table 43 shows for the 438 store- years, 1914, 1918, and 1919, combined, that it cost $10.76 to sell $100 worth of goods. In 1919 the corresponding amount was $10.39 ; in 1918 it was $10.94; and in 1914, $11.35. That is, the amounts decreased between 1914 and 1918, and 1918 and 1919, the per- centage of difference between 1914 and 1918 being 3.6, and between 1918 and 1919, 5.0. When the amounts of selling expense per $100 of total net sales are shown for each $1,000 sold per full-time sales-person they are reduced, but follow the same general direction from year to year. In 1919, the average amount was $0.51, in 1918 it was $0.70, and in 1914, $1.00. That is, the amounts decreased between 1914 and 1918, and 1918 and 1919, the percentage of change from 1914 to 1918 being 30.0, and between 1918 and 1919, 27.1. The occasion for the decrease from year to year is shown in Table 44, wherein the amounts sold per full- time sales-person are given. For the combined years the average amount so sold was $16,149. In 1919 it was $20,437, in 1918 it was $15,613, and in 1914, $11,345. That is, between 1914 and 1918 the amounts increased by 37.6, and between 1918 and 1919 by 30.9 per cent. The stores have much lower average amounts of sell- ing expense in 1919 than in the other years, when they are expressed in the activities of their full-time sales- people, than when they are expressed 86 solely in the amount of their total sales. In Table 3 attention was called to the fact that for the 154 stores con- sidered, the amounts of selling ex- pense per $100 of total expense in- creased between 1914 and 1918, and between 1918 and 1919, the percent- age of change being 1.6 per cent, between 1914 and 1918, and 4.5 per cent, between 1914 and 1919. For the 146 stores now under consideration, as shown in Table 45, the actual amounts closely correspond to those for 154 stores, the direction of change, from year to year, however, being somewhat different. In 1914, $50.18 out of every $100 of total expense was due to selling. In 1918 the amount was $49.39, and in 1919, $50.90. TABLE 43 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PEE FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSI- FIED BY AMOUNT OF SALES PER FULL-TIME S.VLES- PERSON, 1919, 1918, AND 1914 Aneunt of Sales p«r Pull-ttme Salee-perBoz (tn OCo'al 80 40 60 60 ICO 120 Selling Expense per Sioo of Total Ilet Sales per $1,000 of Sales per Pull-tliw £Qlee-por30n 20 40 60 80 100 120 140 160 180 200 Under tlS ti2 to tie tie to $24 tZi to $32 $52 & over 151 107 iia Total (Average) Under $12 $12 to $16 tl6 to t24 £24 to *32 $52 & over Unfler Jl2 Sl2 to 3l6 Sl6 to 324 #24 to 4S2 f 32 & over Cndor $12 Sl2 to $16 tie to #24 •24 to $32 #32 & over $10.76 11.19 10.97 11.22 10.05 8.54 10.59 9.21 10.15 11.34 9.99 8.62 10.94 10.24 11.26 11.57 10.11 S.59 11.55 12.02 11.19 9.81 U.S9 2.85 100.0 104.0 102.0 104.5 95.4 77.5 85.6 94.1 105.4 92.8 80.1 101.7 05.2 104.6 105.7 94.0 51.9 105.5 111.7 104.0 91.2 105. S 26.5 $0.67 1.19 0.80 0.59 0.57 0.22 0.51 0.95 0.72 0.60 0.56 0.23 0.70 1.01 0.84 0.57 0.57 0.15 l.CO 1.34 0.80 0.55 0.41 o.oa AToraBS $30 •76 AToraga $0.67 100.0 177.6 119.4 88.1 SS.2 32. a 76J. I4i.a 107.5 89.6 53.7 54.3 104.5 150.7 125.4 85.1 55.2 22.4 149.3 200.0 119.4 79.1 61.2 11.9 87 That is, between 1914 and 1918 the amounts slightly decreased and be- tween 1918 and 1919 slightly in- creased. The differences in actual amounts and the direction of the changes from year to year are, of course, due to the fact that stores differing in number and identity are considered. When the amounts of selling ex- pense per $100 of total expense are shown for every $1,000 sold per full- time sales-person, as in Table 45, the $50.18 for 1914 becomes $4.42, the $49.39 for 1918 becomes $3.16, and the $50.90 for 1919 becomes $2.49. That is, between 1914 and 1918, and between 1918 and 1919 the amounts decreased, the percentages of change being, respectively, 28.5 and 21.2, TABLE 44 TOTAL NET SALES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 AiBOxmt of Selling Expense per ?100 of Total Ret Sales number of Store- 7«&ra Total Het Sales Number of Full-time Sale 8 -people Het Sales per Pull-tlmo Sales-person Years Amouat < Per Cent. Graphic ^ Aotual ) 20 40 60 80 100 120 140 Total (Average ) 4S8 $42,655,162 2,641.4 $16,149 100.0 • Dnder $6 ♦6 to $12 $12 & over 95 241 102 4,475,628 25,752,733 12,428,801 278.3 1,509.3 853.3 16,075 17,057 14, 566 99.S 105.6 90.2 (Average ) i 1 Total (Average) 146 19,931,753 975.3 20,437 126.6 1919 Dnder $6 ♦6 to $12 $12 Je over 39 78 29 2,447,315 12,206,633 5,277,805 127. C 560.6 287.1 19,180 21,774 18,383 118.8 134.8 113.8 i Total (Average ) 146 13.981,287 895.5 15,613 96.7 ! 1 19ia Under $6 $6 to $12 $12 & over 31 83 32 1,266,945 8,994,157 3,720,185 86.6 547.5 261.4 14,630 16,428 14,232 90.6 101.7 88.1 ( 1 Total (Average) 146 8,742,122 770.6 11,345 70.3 ; Vnder 56 $6 to $12 $12 & over 25 80 41 759,368 4,551,943 3,430,811 64.1 401.7- 304.8 11,847 11,332 11,256 73.4 70.2 69.7 : 1 Average $16,149 These decreases from year to year, like those shown immediately above, where the unit of interpretation is sales, are to be attributed largely to the increased sales per full-time sales- person. Without repeating the conclusions reached on page 52, concerning the amounts of selling expense, first in terms of sales, and second in terms of total expense for the different years and the change from year to year, all of which are confirmed by the figures shown in Tables 43 and 45, it may be concluded from these tables that sell- ing expense per $100 of total net sales and per $100 of total expense for each. $1,000 of goods sold per full-time sales-person was less in 1918 than in 1914 and less in 1919 than in either of the other years. That is, in spite of the increased selling and total operating expenses from year to year, increased sales per salesman sufficed to reduce the amount of selling ex- pense both in terms of sales and in terms of total expense. B. — Yearly Amounts of Selling Expeme per $100 of Total Net Sales and per $100 of Total Expense, for Stores Class^ified hy Size, 1919, 1918, and 1914. Two measures of the amounts of selling expense per $100 of total net sales and per $100 of total expense are available for stores classified by size and by amounts sold per full-time sales-person. The first is in terms of stock turnover, and the second, in terms of $1,000 sold per full-time sales-person. The present discussion has to do with the amounts in terms of sales per stock turnover for stores for 1919. The analysis above, page 42, and in various other places throughout the discussion, has shown that the amounts of selling expense per $100 of total net sales increase as stores increase in size. Moreover, the dis- cussion in Volume I * of the Bureau 's study of Costs, Merchandising Prac- tices, Advertising and Sales in the Retail Distribution of Clothing, shows that the amounts of sales per full- time sales-person are larger in the large than in the small stores. Ac- cordingly, when stores are classified by size and by the amount of sales per full-time sales-person, as in Table 46, it might be expected that the stores within each sales-group which had large amounts of sales per full-time sales-person would have large selling expense per $100 of total net sales. This result, however, is not brought out in the table. The reason for this may be explained as follows : Not all large stores had large amounts, nor all small stores small amounts sold per full-time sales-person. Moreover, not all stores having small amounts of sales per full-time sales-person had relatively large selling expense, nor did all stores which had relatively large sales per full-time sales-person have relatively small amounts of sell- ing expense per $100 of sales. The size of the store alone would tend to cause selling expense to increase, while higher sales per sales-person would tend to reduce the amounts * Page 92. 89 TABLE 45 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919, 1918, AND 1914 Apourt of SbIos per Pill-tlmo &elos-p«roos (In OOO's) [*umbor of Store- years Selling ExT-friee per $100 of Total expense .elllne Expense per :ilOO o*" total Lxpjnso per ;i.000 of Seles per FVll-:lne Sales-persen Ve»r« Anount Pi-.r Cent. •iKxint F-r Cent. Orophlc 1 1 20 4f 60 OP 100 120 OTiphU 1 fo 40 .0 ^i 100 120 140 160 180 200 TctDl (AvoraB*) 416 $60.23 ICO.O M.ll 100.0 Under $12 512 tc $16 416 to $£4 $24 to $J2 t52 1- over ISl 107 118 39 21 51.06 50.fl8 51.81 47.45 43.11 101.7 101.1 103.1 «14.5 65.8 5.*4 3.71 2.70 174.9 U9.S 66.8 Tetol Uv&r&£0 ) ~ Tottl (AvoI-aTe) 146 5C.90 101. -^ 2.49 80.1 Under $12 $12 to $16 $16 tc $24 $24 to $12 $5? t ever 15 10 61 21 19 45. -59 56.29 51.40 49.06 41.62 90.4 112.1 106.3 97.7 86.6 4.'f 4.02 2.fl4 1.76 1.16 149.0 ^^ Total (Avcrife) 146 49.19 9t.l : . u ICI.6 Itaoer $12 $12 to $16 $16 to $24 $24 to $32 Cl2 «. over 60 42 57 14 5 49.16 49.97 60.77 41.12 16.24 W.3 99.5 101. 1 es.B 76.1 3.73 1.58 1.02 t5e.5 1 52.8 Tc tal (Avertpe ) 146 50.16 99.9 ..>: Cnaer $12 812 to $16 516 to $24 $24 to $12 £;: i. ovtr 66 15 20 4 I 5?. 7 4 48.77 46.04 4^.95 20.11 105.0 97.1 91.7 65.5 40.1 5.36 1.47 2.-17 i.JC 1 17.0 Avcrt.RO $60,25 when they are expressed in sales. These different tendencies do not wholly balance each other. In so far as it is possible to gener- alize with respect to the amounts of selling expense for stores with dif- ferent amounts sold per full-time sales-person, it may be said that in terms of sales they vary inversely with the amounts sold per full-time sales-person. That is, the reduction in selling expense, accompanying in- creased sales on the part of salesmen in the larger stores, tends more than to balance the higher selling ex- pense associated with these stores. When the amounts of selling ex- pense are expressed in terms of net sales per stock turnover, however, as in the column of Table 46 bearing this caption, the direction of change in the amounts for stores having different 90 TABLE 46 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES ' PER FULL-TIME SALES-PERSON, 1919 Claselfled Amount of Sales per Pull-tlme Saloo-person (in OOC'e) NuiEber of Stores Selling Expeme per $100 of Total Nat Salee Selling Eipense per $100 of Total Net Salea per Stock Turnover Total Met SttlM Amount For Cent. Per Cent. '^-•''^'^' 1 Actual 20 40 60 80 100 120 140 Amount *°P"^ 1 Actual 3 20 40 60 80 100 1£0 140 Total (AveroRe ) 269 $10.19 100.0 $4.63 100. c PiuJer tl2 «12 to lie tie to tS4 t24 to tJ2 $32 & over 50 56 103 44 36 9.73 9.71 10.89 9.59 9.88 B5.5 86.3 106.9 94.1 »7.0 6.72 4.62 5.45 4.00 5.53 Total (Average ) i ^^^^ ; 76.2 Total (Averaeo) 31 5.88 i 67.7 5.92 84.7 Under 312 Jl2 to $16 tie to $24 t24 to $32 $32 4 over 9 4 7 7 4 7.26 5.59 6.43 4.23 5.31 71.2 64.9 63.1 41.5 62.1 5.19 5.11 4.95 £.49 5.52 112.1 67.2 106.9 S3.e 71.7 Under $40 ^■l^^B Tttel (Averafe) 103 7.50 V3.6 4.17 90.1 Under $12 tl2 to $16 tl6 to $24 •24 to $32 t52 & over 16 54 31 9 15 9.04 8.62 6.58 7.18 5.06 ee.7 64.6 64.6 70.5 49.7 6.03 5.07 3.66 3.42 2.66 |4C to t80 79.0 73.9 57.5 Tiital (Average) 92 / 10.04 98.5 ; Dnder $12 $12 to $16 $16 to $24 $24 to $32 $52 & over 4 IS 50 14 9 10.86 11.29 9.46 loe.6 110.8 93.0 67.9 123.2 tSO to tlBO 115.8 i ; Total (Average) 45 113.2 4.27 Under $12 $12 to $16 tl6 to $24 $24 to $32 $32 k over 1 5 IS 14 114.6 96.5 136.5 100.9 99.4 100.9 1180 & over 3.39 ; 85.5 68.5 10.13 3.17 B_ ! Average $10.19 Average $4.6S 91 sales per full-time sales-person is not so uncertain. Both turnover rates and selling expense in terms of sales are relatively higli in the large stores. When the amounts of selling expense are expressed per $100 of sales per turnover, they decrease as the amounts sold per full-time sales-person in- crease. That is, the more rapid turns associated with large sales per sales- person convert the questionable direc- tion of change from store-group to store-group into one which is abso- lutely certain. The regularity of the change in the amounts of selling expense per $100 of total net sales and per $100 of sales per turnover for the stores, when classified by size and by the amounts sold per full-time sales-person, is shown graphically in Table 46. The detailed analysis of the figures points the following conclusions: First, the amounts of selling expense per $100 of total net sales increase as the stores increase in size. Second, amounts of selling expense per $100 of total net sales for stores of a given size roughly decrease as the amounts sold per full- time sales-person increase. Third, the amounts of selling expense per $100 of total net sales per stock turn- over increase as stores increase in size for stores with sales under $180,000. This condition is also true for stores of different size, but with the same amounts of sales per full-time sales- person. Fourth, the amounts of sell- ing expense per $100 of total net sales per stock turnover decrease as the amounts of sales per full-time sales- person increase. This condition holds not only for stores as a whole, but also when they are classified by size. The practical significance of these conclusions to merchants is that the amounts of selling expense in terms of sales and in terms of sales per stock turnover may be decreased by increas- ing the amounts sold per full-time sales-pereon. The latter condition may result from stimulating the sales of a given force or from securing the same sales with a diminished force. The foregoing discussion refers to the amounts of selling expense for 269 stores with different amounts of sales per full-time sales-person, for the year 1919, the measures of selling expense being given first in terms of sales, and second in terms of the num- ber of stock turns per year. Another method of analyzing the selling expenses for these stores for 1919 is to express them in terms of sales per $1,000 of goods sold for each full-time sales-person. This is done in Table 47. In this year for the 269 stores it cost on the average $0.50 to sell $100 worth of goods for each $1,000 sold per full-time sales-person. For the stores with sales under $40,000, the corresponding amount was $0.35; for those with sales of $40,000 to $80,000 it was $0.45; for those with sales of $80,000 to $180,000 it was $0.52 ; and for those with sales of $180,000 and over it was $0.50. That is, the amounts tend generally to increase as the stores increase in size. It will be recalled that amounts of selling expense in terms of sales increase as stores increase in size. The amounts sold per full-time sales- 92 TABLE 47 AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE OF STORE AND BY AMOUNT OF S.VLES PER FULL-TIME SALES-PERSON, 1919 ci>sBiri(>cr Pjll-tliie Seles-parson (In OOO'l) Kunbcr or Store- jeara Selling Expense pfir $100 of Total llct Soles Selll Tfi Bipeiuo per Oloo of Tctjl li;t Sale: per 51,000 of Solec per F\ill-tl^e walee-peraon Total Net Selce (In OCO'a) Amo'jnl Per Cent. Ano>int Per Cent. Graphic Let- 1 20 40 60 00 100 120 1<0 OTaF>>lc 3 20 40 60 80 100 120 140 160 190 200 22 Aet'ial Total «Avor»R«) 438 $10.76 100.0 Co. 67 100.0 Under Jl2 tl2 to $16 Sl6 to $24 824 to $32 S3; Ik over 151 107 118 39 23 11.15 10.97 11.22 10.05 8.34 104.0 102.0 104.3 S3. 4 77.5 1.19 o.eo 0.59 0.37 0.';2 177.6 119.4 88.1 55.2 32.8 Totel lAveraee ) j Total CAveroge) 125 8.57 79.6 c.<); 122.4 Under $12 8l2 to $16 816 to $24 S24 to $32 S32 i over 71 23 n 10 4 10.15 6.90 7.02 6.20 5.02 S4.3 e4.i 65.2 67.6 «6.7 1.31 0.50 0.37 0.-!3 0.14 195.5 74.6 55.2 34.3 20.0 Under $40 1 ^^^^^_ Total f Average) 163 9.30 65.5 0.69 103.0 Onder $12 $12 to ?ie *16 to $24 824 to $32 $32 1 over 63 48 38 1 1 10.92 9.45 7.62 7.15 4.03 100.6 e7.e ■70.S «£.4 S7.S 1.06 0.68 0.42 0.26 0.09 161.2 101. S 62.T 96.8 13.4 — — Total lAveraco' 108 10.70 99.4 0.6S 97.0 Itader $12 812 to $16 Sl6 to $24 •24 to $32 8S2 4 ovw 14 31 46 12 5 11.63 11.11 10.26 10.29 11.38 106.1 103.3 95.4 95.6 105.8 I.IS 171.6 119.4 eo.6 SB .2 J80 to $180 0.54 0.39 0.31 ^^^^""""i "" Total (Avere^e ) 42 12.09 112.4 0.60 89.6 Under $12 $12 to lie »16 to $24 •S4 to $32 »32 i over 3 S 17 10 7 14.76 14.03 13.13 10.56 8.45 137.2 1S0.4 122.0 96.1 K.i 1.41 1.04 0.67 0.38 0.23 210.4 155.8 c 34.5 of sales for each $1,000 sold per full- time sales-person for stores classified by size and by the amounts so sold. The total amounts of selling expense per $100 of total net sales for each group of stores classified by size, while differing in degree from the figures shown for 1919, reveal the same un- mistakable tendency for the amounts to increase as the stores increase in size. An inverse tendency is again shown in the amounts of selling ex- pense per $100 of total net sales per $1,000 sold per full-time sales-person 96 for the stores classified by size. For stores of a given size, the amounts of selling expense per $100 of total net sales and per $100 of total net sales for each $1,000 sold per full-time sales-person decrease as the amounts sold per full-time sales-person in- crease. Table 49 gives the data for the com- bined years and should be closely studied in connection with Tables 50 to 52, inclusive, for the years 1919, 1918, and 1914, respectively. It is unnecessary to point out in detail the size of the amounts of selling expense in terms of sales alone and in terms TABLE 50 AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 CltiDirieil Tot.l Mat SaKa (In OOO'a) Amount of Sales per Pull-tliM Salea-peraon (In OOO'a) Kunber of Storaa Sal ling Expense per $100 of To Met Ealee al Selling Eipenae por $100 of Total Net Salea per $1,000 of Sales per Poll-time Sales-person Amount Per Cent. Aatount Per Cent. Graphic 20 40 6p 69 lOO 120 14< 1 Actual 3 20 40 •"•phi' j Actual 60 80 100 120 140 160 180 200 220 Total (Average) 146 (10.39 100.0 $0.51 i 100.0 ! ■■ ^^^^^H Orvlsr (12 (12 to (16 (16 to (24 (24 to (32 (32 k ovar 15 30 61 21 19 9.21 10.13 11.34 9.99 8.62 6.77 88.6 97.5 109.1 96.2 83.0 0.95 0.72 0.60 0.36 0.2S ; 186.3 141.2 117.6 1 (Avorags) i =!" 45.1 Total (ATorage ) 14 65.2 0.43 ^^^ 84.3 Ondar (12 (12 to (16 (16 to (24 (24 to (32 (32 * o«r 1 4 2 2 6.99 8.07 7.03 4.7S 7.11 67.3 77.7 67.7 45.5 68.4 0.71 0.60 0.35 0.18 0.20 139.2- 117.6 68.6 35.3 39.2 Ocdar (40 ! = ■■ Total (Average ) 54 7.49 72.1 0.46 90.2 ^^^^ Under (12 (12 to (16 (16 to (24 (24 to $32 (32 4 over 8 18 18 4 6 10.12 8.70 6.68' S.IO 4.22 97.4 83.7 64.3 68.7 40.6 1.06 0.61 0.36 0.23 0.10 : 207.8 119.6 70.6 45.1 19.6 (40 to leo i i 3- Total (Avorocc) 54 10.19 98.1 0.56 * Under (12 (12 to (16 (16 to $24 . (24 to $32 (32 i ovor 2 11 30 1 4 8.95 11.40 9.94 8.43 12.88 86.1 109.7 95.7 81.1 124.0 0.89 0.82 0.53 0.32 0.35 174.5 160.8 103.9 62.7 (80 to (180 ! 1 i Total (Average) 24 11.54 111.1 0.47 i (180 k over Under $12 $12 to (16 (16 to (24 (24 to (32 $32 4 ovor 8 6 7 13.90 10.73 8.46 isj.e 103. 3 ei.3 0.73 0.39 0.23 LZ^ i Average $10.39 97 of sales per $1,000 sold per full-time sales-person for the stores in each of the years. The discussion of the 269 stores for 1919 applies equally well to Table 50 which is based upon the records of 146 stores in the same year. Minor differences in the actual amounts and in the tendencies re- vealed may be seen from year to year by consulting Tables 51 and 52 for the years 1918 and 1914, respectively. A comparison of the changes in the amounts of selling expense from year to year for this group of identical TABLE 51 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FirLL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OP SALES PER FULL-TIME SALES-PERSON, 1918 Classlflad Tot>l Set Sales (In 000' «) Anount of Sales per PuU-tln» Sales-poraor (m coo's) Selling Expanse par $100 of Total 20 40 eo 80 100 120 140 GrapMc | Actual 20 40 CO 60 100 ino 140 160 180 Total (Avaraga) Dndar il2 #12 to $1$ $16 to $24 •24 to $32 tS2 & ova? (Avsraga) Obdsr $40 Dhflar $12 $12 to $16 $16 to $24 324 to $32 $32 & over Under $12 $12 to $16 $16 to $24 $24 to $32 $32 Be ovor Total (Average) tBo to $ieo Ondar $12 $12 to $16 $16 to $24 $2« to $32 $32 & ovor Total (Avarfge) Dhder $12 $12 to $16 $16 to $24 $24 to $32 $32 4 over 10.24 11.25 11.37 10. U 5.53 8.25 9.90 7.17 7.53 6.48 2.77 14.39 12.23 9.32 Average $10.94 102.9 103.9 S2.4 51.0 75.4 SO. 5 65. S 68.8 SO. 2 25.3 es. 95.8 67,0 73.7 SI. 7 100.1 91.4 C3.3 105.9 115.7 03.1 131.6 111.8 es.2 So. 70 1.01 0.84 0.57 0.37 0.15 0.70 1.14 0.53 0.40 0.71 0.99 0.70 0.44 0.12 0,64 0.89 0.72 0.58 0,48 0,19 1.13 0.60 0.34 Aversga $0.70 100.0 144.3 120.0 81.4 62.9 21.4 100.0 162.9 75.7 57.1 32.9 oe.6 101.4 141.4 100,0 62.9 17.1 91.4 127.1 102.9 88.9 68.6 27,1 100.0 161.4 65.7 48.6 98 stores as classified is interesting. In Table 43 for this same group of stores it was shown that the amounts of selling expense per $100 of total net sales decreased from 1914 to 1918, and 1918 to 1919. A similar, but more pronounced decrease was ob- served for the amounts of selling ex- pense per $100 of total net sales per $1,000 sold per full-time sales-person. These tendencies for stores unclassi- fied as to size, as in Table 43, are duplicated in Tables 50 to 52, inclu- sive, where stores are classified by- size and by the amounts sold per person. As illustrative of the changes in the amounts from year to year for the stores arranged in this manner, the group having sales from $40,000 to $80,000 may be chosen. For the combined years the average amount of selling expense per $100 of total net sales was $9.20. For 1914 it was $10.96, for 1918 it was $9.36, and for 1919, $7.49. Similar decreases from year to year are observed for stores having sales of $40,000 to $80,000, and with amounts sold per full-time sales-person of less than $24,000. For the stores having amounts sold per full-time sales-person in excess of $24,000 the number of instances are too few to serve as a basis for gener- alization. Had more stores in this group been available for study, it is felt that the direction of change would have been the same. Analysis of the stores with larger annual sales gives the same general result. The amounts of selling expense per $100 of total net sales for each $1,000 sold per full-time sales-person, for the stores with annual sales of $40,000 to $80,000 may be compared also from year to year. For the combined years, the amount was $0.69. For 1914 it was $0.97, for 1918 it was $0.71, and for 1919, $0.46. That is, the amounts decreased from 1914 to 1918, and 1918 to 1919, as one would expect in view of the larger amounts sold per sales- person in the later than in the earlier years. Similar decreases occur from year to year for the stores in this group when classified by the amounts sold per full-time sales-person. The reader may compare the amounts by consulting the details of Tables 50 to 52, inclusive. The amounts of selling expense per $100 of total net sales for each $1,000 sold per full-time sales-person depend upon the relation first, of selling ex- pense to sales, and second, of the num- ber of sales-people to the total amount sold during the year. Tables 53 to 55, inclusive, are introduced to show from year to year, for stores classi- fied by size and by amounts of selling expense in relation to sales, the extent of the salesmen's activities. The de- tails should be consulted in connection with Tables 49 to 52. A moment's consideration of them may be of interest. For the combined years, based upon 438 store-years, the aver- age amount of goo'ds sold per full- time sales-person was $16,149. This amount agrees veiy closely with the result secured in Volume I, page 92, of the Bureau's study of Costs, Mer- chandising Practices, Advertising and Sales in the Retail Distribution of Clothing, where the average amount 99 TABLE 52 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 Amomit of Sales per Pull- time Sales-peraon (In OOc'a) Number of Stores Soiling Expense per $100 of Total Net Sales Selling Expense per $100 of Total lict Sales per $1,000 of Seles per Piill-tlme Sales-person Total Net Salee Amount Per Cent. Aaoluit Per Cent. 3 20 40 Graphic 60 60 100 120 140 16C Actual Graphic 3 20 40 60 80 100 120 140 160 Actual Total (Average) 146 100.0 $1.00 100.0 i Under $12 $12 to #16 $16 to 024 {24 to $32 $32 & over 66 55 20 4 1 12.02 11.19 9.81 11.39 2.86 105.9 98.6 86.4 100.4 25.1 1.34 0.80 0.53 0.41 0.08 134.0 80.0 53.0 41.0 8.0 Total (Average ) i i Total (Average ) 71 9.19 81.0 1.02 102.0 ^^^^^ i Under tl2 $12 to (H6 $16 to $24 $24 to $32 $32 k over 45 16 8 S 10.66 6.68 6.61 6.75 93.9 58.9 68.2 69.6 1.48 0.48 0.36 0.25 148.0 48.0 36.0 25.0 Under $40 i j Total (Average) 48 10.96 96.6 0.97 97.0 Under $12 $12 to $16 $16 to $24 $24 to $32 $32 & over 31 10 5 1 1 11.26 10.56 9.93 18.06 2. 85 99.2 93.0 87. S 159.1 26. 1 1.17 0.77 0.69 0.63 0.08 117.0 77.0 56.0 63.0 6.0 $40 to $B0 ^^^ i t I "■■* Total (Average ) 22 11.63 102.5 0.90 Under $12 $12 to $16 $16 to $24 $24 to $32 $32 4 over 7 9 6 13.02 11.97 9,58 114.7 105.5 84.4 1.34 0.88 0.50 134.0 88.0 $80 to $180 1 j . Total (Average) 5 IS. 93 122.7 1.08 108,0 i Under $12 $12 to $16 $16 to $24 $24 to $32 $32 i over 5 1 1 14.76 13.34 IJ.ll rw.o U7.6 116. S 1.41 0.89 0.73 141.0 89.0 73.0 $180 & over ^"^ 1 ^^^mM^mm^am ! I i 1 Average $11 .ZS for 974 store-years is seen to be $16,- 230. In 1919, the average amount for 146 stores was $20,437 ; in 1918 it was $15,613, and in 1914, $11,345. These amounts for the individual years like- wise closely correspond to those shown in Tables 61, 62, and 63, respectively, in Volume I of the Bureau's study, referred to above. Moreover, the in- creases from year to year also hold for each group of stores when classi- fied by size. When the stores are grouped by size, the amounts sold per full-time sales-person are shown to 100 increase for the combined years and for each year as the size of the store increases. This condition also agrees with that shown in Volume I of the Bureau's study. It was sho\Aai in Table 48 for 1919 for 269 stores that the amounts sold per full-time sales-person vary in- versely with the amounts of selling expense per $100 of total net sales, when the stores are treated as a total and when classified by size. A similar condition holds, as is shown in Tables 53 to 56, for a group of identical stores for the combined and indi- vidual years 1919, 1918, and 1914. TABLE 53 TOTAL NET SALES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY SIZE AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED ClasBlfled Total Net Salea (in 000' b) Amount of Selling Expense per $100 of Total Net Salea Number of Store- years Total Net Sales Number of Pull- time Saloa-poople Not Sales per Pull-time Sales-person Amount Per Cent. Graphic 1 1 Actual 5 20 40 60 80 100 120 140 160 Total (Average ) 438 $42,655,162 2,641.4 $16, 149 i 100.0 Total Under $6 $6 to $12 $12 & over 96 241 102 4,473,628 25,752,733 12,428,801 278.3 1,509.8 853.3 16,075 17,057 14,566 99.5 105.6 90.2 (Averoge) i ^"T 1 j Total (Average ) 125 3,490,472 335.7 10,398 64.4 Under $40 Under $6 $6 to $12 $12 & over 41 63 21 1,143,342 1,748,712 598,418 90.1 160.2 85.4 12, 690 10,916 7,007 78.6 67.6 43.4 ^^^■^ Total (Average) 163 9,223,468 689.4 13,379 82.8 $40 to Seo Under $6 $6 to $12 $12 & over 45 83 35 2,435,176 4,711,780 2,076,512 140.7 376.2 172.5 17,308 12,525 12,038 107.2 77.6 74.5 1 ; 1 Total (AverDge) 108 12,642,526 764.1 16,546 102.5 1 $80 to $180 Under $6 $6 to $12 $12 8c over 9 66 33 895,110 7,959,099 3,788,317 47.5 476.1 240.5 18,844 16,717 15,752 116.7 102.5 97.5 ; Total (Average) 42 17,298,696 852.2 20,2;9 125.7 i $180 Jc over Under $6 $6 to $12 $12 & over 29 13 11,333,142 8,965,554 497.3 354.9 22,769 16,809 141.1 104.1 1 ^^" Average $16,149 101 From the discussion of the amounts of selling expense per $100 of total net sales and per $100 of sales per $1,000 sold per full-time sales-person for stores classified by size and by the amounts sold per full-time sales- person, it may be concluded as fol- lows: First, the amounts of selling expense per $100 of total net sales roughly decrease as the amounts sold per full-time sales-person increase. This condition is true not only for the stores treated as a whole, but also when they are classified by size. Moreover, it is true for the combined as well as for the individual years. TABLE 54 TOTAL NET SALES, NUMBER OP FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919 Amount of Selling Expense per §100 of Total Hot Sales number of Stores Total Net Sales Huraber of Pull-time Sales-people Not Sales per Full-time Sales-person Total Net Sales Amount ( Per Cant. (In coo's) Graphic . . , " Actual 5 20 40 60 80 100 120 140 Total (Average ) 146 $19,931,753 975.3 $20,437 Total Under |6 f6 to $12 §12 & over 39 78 29 2,447,315 12,206,633 5,277,805 127.6 560.6 287.1 19,180 21,774 18,333 93.3 106.5 89.9 (Average ) 1 Total (Average) 14 428,714 27.2 15,762 77.1 1 ISider $40 Dnder $6 $6 to |12 }12 & over 5 9 140, 498 238,216 7.9 19.3 17,785 14,933 87.0 73.1 Total (Average ) 54 3,059,173 187.6 16, 307 79.8 $40 to $80 Cnder $5 $5 to 512 $12 & over 25 22 7 1,411,707 1,265,481 381,935 72.2 84.1 31.3 19,553 15,047 12,204 95.7 73.6 59.7 ; 1 Total (Average) 54 6,354,238 347.3 13,296 89.5 #80 to $180 Dndor JS §6 to $12 $12 S: over 9 29 16 895,110 5,572,114 1,887,014 47;5 197.1 102.7 18,844 18,123 18,374 92.2 88.7 89.9 Total (Average) 24 10,089,628 413.2 24,418 119.5 ^lao k over Under $6 $6 to $12 $12 & over 18 G 7,080,822 3,008,806 260. 1 153.1 27,223 19,653 133.2 96.2 Average §20,437 102 Second, the amounts of selling ex- pense per $100 of total net sales per $1,000 sold per full-time sales-person increase as the stores increase in size and decrease as the amounts sold per full-time sales-person increase. That is, relative to the size of the stores, the amounts vary directly, but rela- tive to the amounts sold per full-time sales-person, they vary inversely. This condition holds not only for the stores in the combined years, but also for the stores in each of the years 1919, 1918, and 1914. The practical aspects of these con- clusions from the standpoint of the TABLE 55 TOTAL NET &/\LES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1918 Araoiint cf Selling Excense per 5lC0 of Tctal "et Sales KxCT.ber cf Stores Total Ket Sales Nvunber of Pull-tine SQles-people Ket Saler per Pull-tire Sales-person Total Ket Sales Amount c For Cent. (In OCO's) Graphic , ^ , Actual ) 20 40 60 80 100 120 140 Tctal (Average ) 146 $13,981,267 e£5.5 CIS, 613 100.0 i Total Under $6 S6 to 512 ftl2 & over 31 83 32 1,266,945 8,904,157 3,720,165 EC. 6 547.5 261.4 14,6-0 16,428 14,232 93.7 105.2 91.2 (Averfcge) i Total (Average) 40 1,193, €73 100.8 11,842 75.8 Under t40 Under $6 C€ to ei2 $12 & over 15 19 6 437,693 564,477 191,503 32.4 45.4 23.0 15,509 12,433 8,326 86.5 79.6 53.3 i ^^^^^ Total (Average ) 61 3,526,649 267.6 13,179 84.4 Under S6 $6 to $12 $12 & over 16 32 13 829,262 1,034,677 862,620 54.2 142.0 71.4 15,300 12,920 12,084 98.0 82.8 77.4 $40 to J80 Total (Average ) 32 3,74 6,707 219.9 17,038 109.1 i $80 to fl80 Under ?6 56 to $12 $12 & over 23 9 2,716,734 1,027,973 161.4 58.5 16,845 17,572 107.9 112.5 Total (Average) 13 5,514,258 307.2 17,950 115.0 tlBO fc over Under $6 #6 to $12 $12 & over 9 4 3,676,369 1,637,689 198.7 ice. 5 19,509 15,096 125.0 96.7 Avorac© $15,613 103 merchant may be stated as follows: If it is desired to decrease selling expense in relation to sales, one method by which it may be done is to increase the amounts sold per full- time sales-person per year. The ex- tent to which the reduction may be expected, for stores of a given size. is revealed in the detailed figures in Tables 46 to 56, inclusive. In the foregoing discussion the amounts of selling expense have been expressed per $100 of sales, per $100 of total net sales per stock turnover, and per $100 total net sales for each $1,000 sold for a full-time sales- TABLE 56 TOTAL NET SALES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1914 Classified Amount of Selling Expense per 5100 of Total Net Sales Number of Stores Total Net Sales Hunter of Full-time Sales-people p • Net Sales per Pull-tlce Sales-person Total Met Sales (In OOO'a) Amount Per Cent. Actual ) 20 40 60 80 100 120 140 Total (Average) 146 $8,742,122 770,6 $11,345 100.0 Total Under $5 S6 to $13 $12 i over 25 80, 41 759,368 4,551,943 3,430,811 64.1 401.7 304.8 11.847 11, 332 11,256 104.4 99.9 99.2 (Average ) ^■■■■^■^ i 1 i Total (Average ) 71 1,868,085 207.7 8,994 79.3 Under ?40 Under §6 >6 to $18 $12 & over 21 35 15 565,151 896,019 406,915 49.8 95.5 62.4 11,348 9,382 6,521 100.0 82.7 57.5 i Total (Average ) 48 2,637,646 234.2 11,262 99.3 |40 to 580 Under $6 $6 to §12 $12 Jc over 4 29 15 194,217 1,611,722 831,707 14.3 150.1 69.8 13,582 10,738 11,916 119.7 94.6 105.0 ; 1 Total (Average ) 22 2,541,581 196.9 12,908 113.8 $30 to $180 Under *6 $6 to $12 $12 8c over 14 8 1,668,251 873,330 117.6 79.3 14,186 11,013 125.0 97.1 i 1 Total (Average ) 5 1,694,810 131.8 12,859 113.3 ^^^^^^^^ $180 S-. over Under $6 $6 to tl2 Sl2 U over 2 3 375,951 1,318,859 38.5 93.3 9,765 14, 136 ■ ^■^Mll^^ ' 86.1 124.6 Average Jll,345 104 person. They may also be stated in terms of $100 of total expense, per $100 of total expense per stock turn- over, and per $100 of total expense per $1,000 sold per full-time sales- person. For these latter purposes, the records of 269 stores are available for 1919 and 146 for each of the years 1919, 1918, and 1914. By following the order of discussion previously employed, the amounts may now be related to total expense. Table 57, which applies to 269 stores for the year 1919, shows the amounts of selling expense in stores classified by size and by the amount of sales per full-time sales-person. The units of analysis used are: for each $100 of total expense, and for each $100 of total expense per stock turnover. It will be recalled from an earlier discussion that the amounts of selling expense and total expense per $100 of total net sales increase as the stores increase in size. When the amounts of selling expense are expressed in terms of $100 of total expense, that is, as proportions of total expense, they also increase as the stores increase in size. This means that the rate at which selling expense increases with the size of the store exceeds that for total expense. For the 269 stores considered in Table 57, the average amount of sell- ing expense per $100 of total expense in 1919 was $48.92. For the stores with sales under $40,000 it was $34.90; for those with sales of $40,- 000 to $80,000 it was $42.00; for those with sales of $80,000 to $180,000 it was $51.66, and for those with sales of $180,000 and over it was $49.95. That is, the amounts increase with the size of the store except for the last group of stores — those with annual sales of $180,000 and over. When the amounts of selling expense are expressed in terms of total ex- pense per stock turnover,* the aver- age amount for all stores is $22.24. For those stores with sales under $40,000 it is $23.27; for those with sales of $40,000 to $80,000 it is $23.33 ; for those with sales of $80,000 to $180,000 it is $27.19; and for those with sales of $180,000 and over it is $18.50. That is, the amounts for the first two groups are essentially con- stant. For the group with sales of $80,000 to $180,000, the average is considerably larger, and for the group with sales of $180,000 and over, smaller than that for any other single group. The size of the amounts for the latter group of stores is explained primarily by the presence of some stores with large sales and rapid stock turns. When the different groups of stores are considered according to the amounts sold per full-time sales- person, the amounts of selling expense per $100 of total expense irregularly decrease as the amounts sold per per- son increase. The decrease is some- what more regular, however, when the amounts of selling expense per $100 of total expense are shown for each stock turnover. Table 57 is instructive because of * The method by which this unit is com- puted is explained on page 4, item 20. 105 TABLE 57 AMOUNT OF SELJ:.ING EXPENSE PER $100 OF TOTAL EXPENSE PER STOCK TURNOVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 ClasEifisd Totia tiet BUea (In 000'*) l>aU.tUie taTftQ-pcTBo (in OOO'e) Selling Expense per ClOO of Total Expe: Graphic j Actual 20 40 60 80 100 120 Graphic 20 40 60 60 100 120 140 160 Hncer S12 <12 to J16 $16 to S24 {24 to 552 £■52 !c over (A $48. 92 42,18 60.52 51.57 49.26 43.42 54.90 Doder $40 Vnder '12 J12 to J16 J16 to t24 524 to 552 $52 & over 58.79 32.81 44.92 27.16 27.54 42.00 Under {12 $12 to $16 $16 to $24 $24 to {52 552 at over 42.07 46.55 59.06 41.5S S5.se Total (Averege ) 61.66 5eo to tieo Cnder $12 $12 to JlP $16 to $24 $24 to $52 552 & over 58.00 58.52 48.59 60.65 68.20 Itodor $12 1 $12 to $16 5 $16 to $24 IS $24 to $52 14 J52 t ever 10 34.61 48.29 57.16 60.55 40.69 103.3 1CS.4 100.7 71.3 79.5 67.1 91.6 65.5 65.9 65.9 86.0 94.7 79.8 84.5 72.3 105.6 118.6 119.6 98.9 103.5 119.0 102.1 70.7 98.7 116.8 102.9 85.2 ?;22.24 24.81 24.06 25.79 20.53 15.61 25.27 27.71 IS. 23 S4.65 15.98 17.09 ■25.55 28.05 27.25 21.70 19. 6& 18.62 27.19 50.55 29.26 26.88 24.07 20.79 18.50 15.84 16.6S 21.98 19.45 12.72 100.0 111.6 106.2 U6.0 92.3 €9.7 104 124.6 82.0 155.4 71,9 76.8 104.9 126.1 122.5 97.6 88. P_ 85.7 122.5 157.5 lSl.6 120.9 10S.2' 95.5 74.9 9e.e 87.4 57.2 Average $48.92 Average $22.24 the light which it throws on the over- head expense in stores of different size, under different conditions of sales activities per salesman, and different rates of stock turnover. Selling expense becomes an increasing proportion of total expense as stores increase in size. By total expense is meant the entire expense of operation. Moreover, selling expense per $100 of total expense per stock turnover becomes, on the whole, larger as stores 106 increase in size. The practical sig- nificance to the merchant of these and other conclusions to which one is led from analyzing Table 57 is that he may expect selling expense as com- pared to total expense to become larger as he increases the volume of his business, and may expect it to become smaller for a given amount of business as he increases the sales of his full-time sales-people. Both conditions follow when selling ex- penses are expressed as a part of total expense alone and when expressed in the same way per stock turnover. The detail in Table 57 relates to 1919 for 269 stores. When the analy- sis is extended so as to cover selling expense of the same group of stores, expressed as a part of total expense for each $1,000 sold per full-time sales-person, the relation of selling expense to total expense, for stores of different size and with different amounts sold per person, is more definite. The selling expense of stores so classified is set out in detail in Table 58. For all the stores treated as a unit, the amount of selling ex- pense per $100 of total expense for every $1,000 sold per full-time sales- person was $2.42. For the stores with sales less than $40,000 it was $2.06; for those with sales of $40,000 to $80,000 it was $2.53; for those with sales of $80,000 to $180,000 it was $2.69 ; and for those with sales of $180,000 and over it was $2.16. That is, the amounts increase with store size, for stores with sales less than $180,000. The amounts decrease for the stores having sales in excess of this amount. It should be remem- bered that the amounts sold per full- time sales-person increase with the size of the store. This increase, how- ever, does not compensate for in- creased selling expense per $100 of total expense until the stores with annual sales of $180,000 and over are encountered. When the stores are classified by size and by the amounts sold per full- time person, the selling expense per $100 of total expense for each $1,000 sold decreases as the amounts sold per person increase. For the entire group the amounts range from $4.14, for those with sales under $12,000, to $1.05 for those with sales of $32,000 and over. Similar decreases occur for each group of stores when classi- fied by size. These are shown in graphic form in Table 58. In Table 58 two comparisons are established: First, the relation of selling expense to total expense for stores of different size and different salesmen's activities, and second, the relation of total expense per $1,000 sold per full-time sales-person for stores of the same size with different amounts sold per person. The aver- ages shown serve as standards by which merchants may measure the amounts of their selling expense and by which they may compare their expenses with those of their competi- tors differently situated and operating under different conditions. Table 58, however, covers the year 1919 only. In view of this fact, it is instructive from the same viewpoint to consider a group of identical stores 107 TABLE 58 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 Classified Total tlat Sales Amount of Saleo per Full-time Sales-person (in OOO'a) jhmber of Stores Selling Expense per $100 of Total Expense Selling Expense per $100 of Total Expense per $1,000 of Sales per Pull-tlme Sales-peraon Amoioit c Par Cent. Amount C Per Cent. (in OOO'a) Graphic ^^j^^i 20 40 60 80 100 120 SO 40 Craphlo 60 80 100 120 140 160 180 Actual Total (Avorago) 269 $48.92 100.0 $2.42 1 100.0 nnder $12 {12 to {16 $16 to $24 524 to {32 $32 t over 30 56 105 44 36 42.18 50.52 51.57 49.26 43.42 86.2 103.5 105.4 100.7 88.8 4.14 5.58 2.71 1.79 1.05 Total (Average) : 147.9 112.0 74.0 43.4 j 1 Total (Average) 31 S4.S0 71.3 2.06 85.1 Onder $12 $12 to {16 $15 to {24 $24 t» {32 $32 i over 9 4 7 7 4 38.79 32.81 44.92 27.16 27.34 79.5 67.1 91.8 55.5 S5.9 5.88 2.26 2.26 0.95 0.78 160.3 93.4 93.4 39.3 32.2 Oader |40 1 ■■■"■ 1 1 ! Total (Average ) 103 42.00 85.9 2.53 104.5 i Onder 412 $12 to $16 {16 to {24 $24 to {32 {32 1 over 16 34 31 9 13 42.07 46.33 39.06 41.33 35.33 86.0 94.7 79.6 84.5 72.5 4.19 3.21 2.07 1.53 0.83 173.1 132.6 85.5 63.2 34.3 J40 to {80 I ^^^^^^^^ ^~ 1 i Total (Average) 92 51.66 105.6 2.69 111.2 : Onder $12 $12 to $16 $16 to $24 $24 to $32 $32 i over 4 15 50 14 58.00 58.52 48.39 50.55 58.20 118.6 119.6 98.9 103.3 119.0 5.59 4.33 2.55 1.85 1.51 " $80 to {130 ; 173.9 105.4 76.4 62.4 ; ; 1 i i Total (Average ) 43 49.95 102.1 2.16 69.3 1 ■ Under $12 5l2 to $16 $16 to $24 $24 to 432 $32 1 over 1 3 15 14 10 34.61 48.29 57.16 50.35 40.69 70.7 98.7 116.8 102.9 83.2 3.31 3.36 2.99 1.63 0.97 136.8 138.8 123.6 75.6 40.1 {130 & ever i — 1 Average ^48.92 Average $2,42 Pull longth not shovm from year to year, classified in the same manner. This is done in Tables 59 to 62, inclusive. Table 59 shows the amoujits of selling expense per $100 of total ex- pense and per $100 of total expense per $1,000 sold per full-time sales- person for stores in the combined years, while Tables 60 to 62, inclusive, give corresponding facts for 1919, 108 TABLE 59 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES- PERSON, 1919, 1918, AND 1914, COMBINED AmouQt of Sales per Pull- time Stiee-peraon (Id OOO'iI RuBbar of stores Sailing Erpenaa par $100 of Tot^ Bzpanoa Selling Expense $1,000 or Sales per $100 of Total Expense par per l*uU-tljna Sales-person Tot»l ■at :uiei per Cent. Ajsount Per Cent. Total (Average) 97 7.55 77.4 4.19 1 t40 to (80 Straight Ealary Salary & Comnlaslon 85 12 7.65 6.95 78.5 71.3 4.25 3.86 91.6 ! 1 • Total (Average ) 89 10.03 102.9 5.28 113.8 Sao to {ISO Straight Salary Salary 4 Coranlsalon 65 24 9.55 11.24 97.9 115. J 4.78 6.24 103.0 134.5 ; Total (Average) 40 10.66 109. S 5.95 65.1 ; $130 & o7or Straight Salary Salary & ComnilBBlon 24 15 10. 2 J 11.12 104.9 114.1 4.09 S.S9 68.1 77.4 •• Average (9.75 Average (4.61 for this purpose in 1919 for 254 stores classified by size and by the methods by which salesmen are paid. Two methods of compensation are distin- guished for purposes of study. The stores are classified, first, into those which use only straight salaries in contrast with those in which salaries and commissions are employed; and second, into those which pay or do not pay some form of bonus. The tables bearing upon each of these methods of payment contain the re- sults of our findings on the relative size of the amounts of selling expense expressed in different units. A. — Yearly Amounts of Selling Ex- pense per $100 of Total Net Sales and per $100 of Total Ex- pense, for Stores Classified by Size, 1919. The total amount of wages and sal- aries properly chargeable to selling, on the average, constituted in 1919, 63 per cent, of total selling expense.* Accordingly, in the comparisons im- mediately following, any effect which the methods of compensation might have on total selling expense would be restricted by this fact. In spite * Table 178, p. 259. 119 TABLE eS AMOUXT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FLTLL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF PAYING REGULAR SALESMEN, 1919 Method of CosporJatlon Smut or of Storaa sailing anDsnio per SlCO of Total Net ialoa Soiling Expense per $100 of Total Set Saloa per Jl.OOC of Salea per Pull-tUao Salea-porson Total Aaount Per Cent. Aaount C Per Cent, (In OOO't) *-"!*l'' Actual J 20 40 60 80 100 120 '^^^'^o 1 Actual 20 40 CO 80 100 120 Total (Avtrr.cs) 354 «9.-75 ico.o JO. 48 '■ 100.0 1 Tt^til (r.v:r»g» ) Straight Salary Salary fc ComiMlon 197 57 9.21 10.79 94.5 110.7 0.45 0.53 110.4 i i i i Total (Averago) 28 6.09 C2.5 0.34 70.8 Ur.der $40 Straight Salary Sfilary fc ConTT^aslon 23 5 5.65 7.00 CO.O 71. S 0.J5 0.28 72.9 58.3 Total (AvcrsEo) 97 7.55 77.4 0.46 95.8 1 Straight Salary Salary fc Corr^aalon 85 12 7.65 6.95 73.5 71. J 0.46 0.45 95.3 93.7 1 i Total (Average) 89 10.03 102.9 0.52 103.3 StrolBht Salcry Salary i Corr-.laslon 65 24 9.55 11.24 97.9 115.3 0.50 0.55 104.2 114.6 $80 to OlSO Total (Average) 40 10.66 109.3 0.45 93.7 i 1 Straight Salary Salory i OorTilaslon 24 16 10.23 11.12 104.9 114.1 0.39 0.52 81.2 106.3 Average $9.75 Average Jo. 43 of this, however, it has been thought worth-while to make such compari- sons at this place and to reserve for a later section the discussion of the relation of wages and salaries to total net sales and to total expense for stores using different methods of compensating their employees. In Tables 67 and 68 the amounts of selling expense in terms of net sales, in terms of net sales per stock turnover, and in terms of net sales for each $1,000 sold per full-time sales-person, for stores classified by size and by method of compensating regular salesmen, are set out in detail. Without reviewing the amounts in these tables, item by item, it may be of interest briefly to summarize them and to generalize upon the results secured. In Table 67, for three of the four groups of stores, when classified by size, the amounts of selling expense per $100 of total net sales are lower for stores which pa>" their employees on a straight salary basis.* The dif- ferences in amounts, moreover, can hardly be attributed to the size of the stores involved. It will be re- called, of course, that the amounts of * The averages which are low are under- lined in this and the following tables re- lating to this subject. 120 TABLE 69 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER STOCK TURNOVER, FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF PAYING REGULAR SALESMEN, 1919 Metbod of CoBpenaatlon Ihanber of Stores Selling Expense per ClOO of Total Expense Selllne Expense per ClOO of Totol txponso per Stock Turnover Total Ket Sales (In 000' 6) AjTTOunt Per Cent, Amount Per Cent. "'•"P"" Actual 3 20 40 60 80 100 120 "^»f"^« Actual J 20 40 60 80 100 120 liO Total (Average ) 254 t47.47 100.0 $22.60 i 100.0 i Total (Average ) Straight Sadarj Salary 4 CoTWOlBslon 197 57 45.89 50.27 66. 7 105.9 22.95 20.95 101.5 92.7 ; 1 i Total (Average) 28 56.26 76.4 24.17 106.9 ! Under $40 Straight Saaary Salary & Coimnlsslon 25 S 55.61 58.56 75.0 81.2 2S.7^ 25.71 105.0 113.8 ; i Total (Average) 97 42.50 89.1 23.60 104.0 [ $40 to tao Stralglit Salary Salary & Coiranlsaion 85 12 42.77 59,2^ 90.1 82.7 23.76 21.80 105.1 96.5 i i i Total (Average) 89 108.4 27.08 119.8 ieo to tiso Straight Sajary Salary & CoBBnlaslon 65 24 106.5 115.1 25.24 29.85 111.7 132.0 i Total (Average) 40 99.1 17.42 77.1 ! $180 & over Straight Salary Salary k ComlMion 24 16 95,5 105.5 17.72 18. la 78.4 71.5 50.06 Ave]-age t47.47 Average $22.60 selling expense per $100 of total net sales increase as stores increase in size. But the differences in the size of the stores in these cases are not sufficient to explain the differences in the amounts. When the amounts of selling ex- pense per $100 of total net sales for these stores are found per stock turn- over, in two of the groups the amounts are lower for stores using straight sal- aries, and in two they are lower for stores using salaries and commissions. When the amounts of selling ex- pense per $100 of total net sales are expressed in terms of each $1,000 sold per full-time sales-person, as in Table 68, two of the groups of stores show smaller selling expense where straight salaries predominate and two, smaller selling expense where salaries and commissions are used. The results of this comparison are negative as to any effect which differ- ent methods of compensating em- ployees may have on selling expense. In Tables 69 and 70 the amounts of selling expense, for stores classified as in Tables 67 and 68, are shown in terms of total expense alone, in rela- tion to total expense per stock turn- over, and in relation to total expense 121 TABLE 70 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF PAYING REGULAR SALESMEN, 1919 Iot«l Hat £*!«• UethoO or Ccxpeneatlon Itur.ter of Etorea Selling &cpenae per $100 of Total Expense Selling Expeiieo per ClOO ci total Expense per $1,000 of Sales per P-ill-tJne Salee-poreon Ajncnjnt fer Cer.t. An cunt Per Cent. (in O0O'«> Oraf.hlc D £0 40 60 80 100 J20 Actual Grapiilc 1 Actr.al D 20 40 60 00 100 ICO Tott.1 (AverBge) 254 $47.47 loc.o $2.34 100.0 i To-.ul Strale^t Salary SalLry fc Ccmnlcslcii 197 57 45.89 50.27 0C.7 ICG. 9 2.27 2.46 97.0 104.7 (Average ) Tetil (AveroEe) SB 56.26 76.4 2.04 87,2 j ■ TJD£er $40 Etmlsbt Salary Salary & Cornnloslon 2S is.ei 38. S6 75.0 81.2 S.IS 1.53 91.9 65.4 1 Tctal (Avcrtce) 97 42.50 69.1 2.59 110.7 $40 to $80 Straight Salary Salary fc ConnlESIon 65 12 42.77 39.24 90.1 82.7 £.60 2.52 111.1 107.7 Total (Average) E9 sa.46 ioe.4 2.65 i {80 to tieo Stralgjit Salary Salary & CoTwilealon •es 24 50.48 5S.£9 loe.o 113.1 2.65 2.64 115.2 112.8 1 Total (Avorage) 40 47.03 99.1 1.99 Jieo i o«r Stralfjit Salsrj Salary t CoiwilBslon 24 16 44.31 50. C6 93.3 105.5 1.68 2.35 100.4 ; £M0r^9 $47.47 Avorago ^.34 for each $1,000 sold per full-time sales-person. Summarizing these tables briefly, it may be observed that, in terms of total expense, the amounts of selling expense are lower for stores using straight salaries in three of the groups classified by size. In one group an inverse condition obtains. When the amounts of selling expense per $100 of total expense per stock turnover are determined, two of the groups of stores show the amounts to be less when straight salaries are used and two groups show them to be less when salaries and commissions obtain. That is, in terms of this unit alone the results are inconclusive. When the amounts of selling ex- pense per $100 of total expense are shown for each $1,000 sold per full- time sales-person, as in Table 70, three of the groups of stores show the amounts to be less w-hen salaries and commissions are employed and one where straight salaries predom- inate. From the above tables the evidence of a definite relation between the methods of compensating employees and the amounts of selling exjiense seems confllicting. However, this is not the case, as is clear from the following summary, when all of the group aver- 122 ages are considered together:* First, the amounts of selling expense per $100 of total net sales and per $100 of total expense are lower where straight salaries are used in six out of the eight cases. In two instances the amounts are lower where salaries and commissions predominate. Second, in four cases out of eight they are lower for stores using straight salaries when the amounts are expressed in terms of sales per turnover and total expense per turnover, while in three of the * The averages which are low are under- BCored in Tables 67 to 70, inclusive. eight cases they are lower for straight salaries when the amounts are ex- pressed in terms of sales, and in terms of total expense per $1,000 of sales per full-time sales-person. Obviously, the connection between the method of paying salesmen and the amounts of selling expense is best measured in terms of sales or total expense. The conditions affecting turnover and the amounts sold per sales-person are so varied as to make comparisons in such units of comparatively little sig- nificance in this connection. The amounts are expressed in these more TABLE 71 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOR STORES PAYING OR NOT PAYING A BONUS TO REGULAR SALES- MEN, CLASSIFIED BY SIZE OF STORE, 1919 ■sthod of Coiqpeiisatloo Humbar of Stores Selling Expense per ♦lOO of Total Het Sales SellLng Expense per ♦lOO of Total Net Sales per Stock Tiimover Total Hst Salso Amount Per Cent. Amount Per Cent. (In OOO'b) Graphic 1 1 Actual 5 20 40 60 80 100 120 Graphic 1 1 Actual 3 20 40 60 80 100 120 140 Total (Average) 254 ia.75 1 100.0 t4.64 100.0 Total (Average) With Bonus Without Bonus 60 194 10.96 9.15 112,4 95.6 4.77 4.35 142.8 93.7 i : i Total (Average ) 28 6.09 62.5 4.06 87.5 : With Bonus Vlthout Bonus S 23 6.05 6,10 62.1 62.6 4.03 4.07 86.9 ; Total (Average) 97 7.55 77.4 4.19 90.3 : " i ♦40 to $80 With Bonus Without Bonus 14 83 8.28 7^i2 84.9 76.1 4.14 4.3S 89.2 94.0 1 lotal (Avsrags ) 89 lO.flS 102,9 5.28 U5.8 Seo to *ieo With Bonus Without Boons 28 63 11.01 9.62 112.9 98.7 S.79 .SjOS 124.8 109.1 i Total (Average) 40 10.66 ibg.s 5,95 85.1 i ♦180 k over With Bonos Without Bonos IS 25 11.59 10.05 116.6 102.9 4,58 5,58 94.4 77.2 ! ' ; ; Avwa^e ♦9.7S Average ♦4,64 123 refined units largely because of the value which they may have to the in- dividual merchant rather than be- cause of any value which attaches to them for purposes of generalization, A distinction which has been made be- fore between the actual amounts of expenditure and the tendencies for these amounts to increase or decrease should be kept in mind. The amounts of selling expense may also be compared for stores of differ- ent size which pay or do not pay their employees bonuses. Comparisons from this viewpoint for 254 stores are con- tained in Tables 71 to 74, inclusive. Table 71 shows the amounts of sell- ing expense per $100 of total net sales and per unit of sales per stock turn- over for stores classified by size and by the use or non-use of bonuses. In three of the groups of stores, classified by size, the amounts of selling expense are lower where bonuses are not used.* In one instance an inverse condition holds. When the amounts of selling expense are shown per $100 of sales for each stock turnover, two groups of the stores have lower amounts of selling expense where * The averages which are lower are under- scored in Tables 71 to 74, inclusive. TABLE 72 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES AND PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR STORES PAYING OR NOT PAYING A BONUS TO REGULAR SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 Method of Conpen3fttlon Nunbcr of Stores Selling Expense per tlOO of Total Bet Sales Selling atpcnsE per tlOO of Total Net iales per Jl.OOO of Sales per Pull-tlme Sales-person ClnsolflolJ Totnl Anount Per* Cent, Amount Per Cent. (In 000'«) Graphic Actual 3 20 40 60 80 100 120 Graphic 1 1 Actual 3 20 40 60 80 100 120 Total (AvorQgo) 254 J9.75 100.0 $0.48 i 100.0 Total With Bonu» nitbout BonuB 60 194 10. ae 9.13 6.09 112.4 93.6 0.48 0.47 100.0 97.9 (Averkgo) 1 i ! Tot»l (Average) 28 62.3 0.34 70,8 UzAer UO nlth Bonus Without Bonuo J 25 6. OS 6.10 62.1 62.6 0.34 0.34 70.3 70. e Total (Avorttgo) 97 7.55 77.4 0.46 96.8 #40 to 880 With BonuB Bithout Bomu 14 83 8.23 7.42 84.9 76.1 0.47 0.46 1 t i 95.8 Total (Avortgo ) 68 10.03 102.9 112.9 98.7 0.52 0.55 0,50 ioa.3 tlth BonuB TJlthout Oorma 6» 11.01 9.62 114.6 tSO to tLdO 1 1 Total (Averag* ) 40 10.66 109.3 0.45 Slth BoMUB BlttoMt BonuB IS 26 11.39 10.03 116.8 X02.9 0.45 0.45 eiaO * OTor AvoriAge Zo.7i Average $0*4B 124 TABLE 73 AMOUNT OF SELUNG EXPENSE PER $100 OP TOTAL EXPENSE PER STOCK TURNOVER, FOR STORES PAYING OR NOT PAYING A BONUS TO REGULAR SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 Clajtlrled Total tl»t Sale* Method of Oompanflatlon Nunbor cf Stores Selling Expanse per $100 of Total Expence Selling Expense por $100 of Total per Stock Turnover Expense Aaoo\jnt < Per Cont. Azaount Per Cent. (in OOO'o) ) 20 40 Graphlo 60 80 100 120 Actual Grapbls 3 20 40 60 80 100 120 Actual Total (ATsrttRe ) 254 ♦47.47 100.0 $22.60 100.0 1 1 Total (Avorago ) WltH Bonos Hltbout Bonu£ 60 194 60.06 45.98 105.5 96.9 21.77 21.90 96.3 96.9 i i Total 28 36.26 76.4 24.17 106.9 'Jt^sr ^ Blth Bonus Without Bonus 5 23 35.11 36.50 ^^^^^^ 74.0 76.9 23. 42 24.33 103.6 107.7 1 ! Total (AToraga) 97 42.30 89.1 23.50 104.0 1 |40 to t30 »ltli Bonus Without Bonus 14 83 49.70 41.09 104.7 86.6 24.85 24.17 110.0 106.9 i 1 Total (Aierago) 89 51.46 108.4 27.08 119.3 Jao to $180 With Bonus Without Bonus 26 63 53.39 50.58 112.5 106.6 28.10 26.62 124.3 117.9 Total 40 47.03 99.1 17.42 77.1 »180 & ovor v;ith Bonus TJlthout Bonus 15 25 48.92 45.32 103.1 95.5 18.82 16.19 83.3 71.6 1 Average |47.47 Avorago $32.60 bonuses are not used and two have lower amounts where they are used. That is, when the amounts of selling expense are expressed in the second unit, there seems to be no character- istic relationship between the amounts of selling expense and the use or non- use of bonuses. Table 72 shows the amounts of sell- ing expense for these 254 stores ex- pressed in $100 of sales per $1,000 sold per full-time sales-person. The differences from group to group, as bonuses are used or not used, are less marked when the amounts are ex- pressed in this unit than when they are given for sales alone, and the di- rection of change offers no basis for generalization. In Table 73 the amounts of selling expense are shown for each $100 of total expense for the stores classified as in Tables 71 and 72. On the whole, judging from the amounts of selling expense for stores of different size and the use or non-use of bonuses, it seems that the amounts are smaller for stores which have no bonuses. This is the condition in three of the four groups. When the amounts of selling expense are expressed in terms of $100 of total expense per stock 125 TABLE 74 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL EXPENSE PER $1,000 OF SALES PER FLXL-TIME S.\LES-PERSON, FOR STORES PAYING OR NOT PAYING A BONUS TO REGULAR SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 Cloijlflod To Ml Ket S.lM Method of Coupcrjatlon number of Stores Selling Expense per $100 of Total Eiponso Selling Ebcpcnee 'per $100 of Total Expense per tl.OCO of Sales per Pull-tire Sales-person teount Per Cer.t. Amount ter Cent. (In OOO'i) Graphic 1 1 Actual C 20 40 60 60 100 120 Graphic 3 20 40 60 80 100 120 Actual Tctal (Avcroge) 254 $47,47 100.0, $2.54 100,0 Tot»l With Bonus Elthout Bonus 60 194 50.06 45.08 105.5 66.9 2.21 2.58 94.4 101.7 (ATcrsge ) i i Total (Average ) 28 56.26 76.4 2.04 87.2 ! Vmler $40 1.1th Bonus Without Bonus 5 23 55.13 S6.S0 74.0 " 76.9 1.P5 2.C6 63.3 88.0 Total (Avor&ce ) 67 42.:-« 89.1 2.59 110.7 UO to $30 filth Bonus UltlxTut Bonus 14 85 49.70 41.09 104.7 86.6- £.80 2.55 119.7 109.0 ! Total (Avcrace) 89 51.46 108.4 2.65 113.2 $80 to Sieo Vlth Bonus Vithout Bonus 26 6S 55.58 50.58 112.5 106.6 2.68 2.63 114.5 112.4 1 Total (Average) 40 47.03 99.1 1.99 85.0 ! 1 {180 4 o»or V;ith Bonus Without Bonus 15 25 48.92 45.52 105.1 95.5 1.95 2.03 82.5 86.8 1 Average $^7.47 Avorace $2.34 turnover the same tendency charac- terizes the groups of stores, all but one of them showing smaller amounts of selling expense, expressed in this unit, where bonuses are not used. In Table 74 the amounts of selling expense for the stores classified as in Table 73 are shown per $100 of total expense per $1,000 of sales per full- time sales-person. In two of the groups of stores the amounts are smaller where bonuses are not used and in two, smaller where bonuses obtain. No generalization can be made from this table in regard to the effect of the method of compensation on selling expense. The conclusions from Tables 73 and 74 are not wholly negative if the ex- perience is considered as a unit. If the amounts of selling expense are ex- pressed first, in terms of sales, and second, in terms of total expense, they are found, in six out of eight instances, to be lower where no bon- uses are paid. Moreover, in five out of eight eases, they are found to be lower where no bonuses obtain, when they are expressed in sales per turn- over and in total expense per turn- 126 over. When they are expressed in terms of total net sales and total ex- pense per $1,000 sold per full-time sales-person, no significance can be attached to the differences according to the methods by which salesmen are compensated. When Tables 67 to 74, inclusive, are considered as a unit, the evidence that the amounts of selling expense, per unit of sales and per unit of total expense, are lower where no forms of extra compensation are paid is cumu- lative, inasmuch as the condition obtains in twelve of the sixteen cases. It is not contended in the above dis- cussion that the results of this analysis conclusively show that the amounts of selling expense are lower where neither commissions nor bonuses are paid. At best it indicates the nature of the weight of evidence from the experience available. With another selection of stores or addi- tional evidence, the conclusions might be different. The detail of the tables are incorporated in this study largely because they represent the informa- tion that was available, and so far as the Bureau knows, are the only data of this character which have been col- lected. ditions which seem to determine the amounts of selling expense in relation to sales and to other standards. A further analysis is now made of the stores classified in a somewhat differ- ent way. As a working hypothesis it seemed certain that the amounts of selling expense in stores of different size and location would be conditioned in part at least by the amounts of floor space used, the expenditures made for rent per square foot of floor space, and the amounts invested in fixtures per unit of sales and per unit of floor space. The following tables and the discussion concerning them present the data bearing upon these relationships. (1) — YEARLY AMOUNTS OP SELLING EXPENSE IN RELATION TO EXPEN- DITURES FOR RENT PER 100 SQUARE FEET OF FLOOR SPACE, The records of 303 stores are avail- able for the study of the relationship of selling expense to sales under dif- ferent conditions of space utilization and expenditures for rent. These stores are classified by size and by the size of the city in which they are located. 4. — YEARLY AMOUNTS OF SELLING EX- PENSE IN RELATION TO EXPENDI- TURES FOR RENT AND TO INVEST- MENTS IN FIXTURES, FOR STORES CLASSIFIED BY YEARS, BY SIZE, AND BY LOCATION. In the preceding sections, the stores have been classified according to con- A. — Yearly Amounts of Selling Ex- pense per $100 of Total Net Sales for Stores Classified hy Size, 1919. Addressing attention first to the stores classified by size, some interest- ing facts may be deduced from the tables concerned. As the stores in- crease in size, as shown in Table 75, 127 TABLE 75 AVEIL\GE AMOUNT OF FLOOR SPACE PER STORE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 ■ Auonat cf Rent per 100 •q. ft. of ricor Bp«ce Ihjnber of Store* Total Floor Space (•q. ft.) Average Floor Space per Store Cl«a»inod Tct»l A&ount (•q. ft.) Per Cent. (In OOO'i) Graphic | Aetual 20 40 60 60 100 120 140 160 160 200 220 240 Total (ATortgo) 305 1,422,359 4,694 100.0 Dnder (20 (20 to (40 (40 to (60 (60 k over 54 120 65 66 209,599 487,157 525,535 400,468 6,159 4,060 5,164 4,657 i3i.e (ATere«e ) ; uo.o ; ■ Total (Averaee ) 45 97,716 2,171 — 46.3 Under (20 (20 to (40 (40 to (60 (CO tc over 10 25 7 3 35,498 46,871 15,759 5,608 5,550 1,876 1,965 1,203 71.4 40.0 41.B 25.6 Dtaer Uo ^^^^ Tottl (Average) 115 547,999 5,080 66.6 Under (20 (20 to (40 (40 to (60 (60 i over 16 46 23 26 94, 172 140,526 62,909 50,592 5,886 2,923 2,735 1,946 125.4 62 .3 58.3 41.5 (40 to |80 Total (Average) 102 511,259 5,012 Dnder (20 (20 to (40 (40 to (60 (60 & over 6 41 23 32 44,709 240,855 105,123 120,552 7.452 5,676 4,571 3,767 158.8 ^80 to *180 97.4 ; ; Total (Average) 45 465,405 10,823 230.6 ; Under t20 (20 to (40 (40 to (60 (60 k over 2 6 10 25 57,020 59,105 143,564 225,716 16,510 9,851 14,356 9,029 394.5* 209.9 305.8* (130 Ic over . Average 4,694 roll lar-sth not ehown 128 the amounts of floor space* used per store increase. The average amount in square feet for the stores having annual sales under $40,000 is 2,171; for those with annual sales of $40,000 to $80,000 it is 3,080 ; for those with annual sales of $80,000 to $180,000 it is 5,012; and for those with annual sales of $180,000 and over, 10,823. For a given amount of sales the floor space used decreases as the amounts of rent paid per 100 square feet of floor space increase. It may be of interest to point out, for a given group of stores, the de- tailed conditions having to do with the floor space used per store, the amount of floor space used per $100 of total net sales, and the correspond- ing amounts of selling expense per $100 of total net sales. For this pur- pose, 113 stores having annual sales of $40,000 to $80,000 will be used. The average amount of floor space for these stores is 3,080 square feet. The average amount per $100 of total net sales is 5.35 square feet (Table 76), and the selling expense per $100 of total net sales, $7.13 (Table 77). As the amounts of rent paid per 100 square feet of floor space in these stores increase, as shown in Table 75, the average amounts of floor space decrease ; the amount for those which pay less than $20 per 100 square feet of floor space being 5,886 square feet, and for those which pay $60 and over for the same amount of space, 1,946. Moreover, as the amounts of rent paid * The total floor space, rather than that used for selling alone, is the area used in this and the following ratios. per 100 square feet of floor space in- crease, as shown in Table 76, the amounts of floor space used per $100 of total net sales decrease. For the stores paying less than $20 per 100 square feet of floor space, the amount is 9.93 square feet, and for those spending $60 and over for the same amount of space it is 3.28. That is, the more valuable the space, as evidenced in the rent paid per 100 square feet of floor space, the smaller is the space used in relation to the sales. However, when the same group of stores is studied from the point of view of selling expense per $100 of total net sales, as in Table 77, the amounts are found generally to in- crease as the amounts of rent paid per 100 square feet of floor space in- crease. The average for the entire group is $7.13. For the stores paying less than $20 in rent per 100 square feet of floor space the amount is $6.63, and for those spending $60 and over, $8.44. If the tendencies are summar- ized for this group of stores, it is found that the amounts of floor space per store and the amounts of floor space per $100 of total net sales de- crease, while the amounts of selling expense per $100 of total net sales in- crease as the amounts of rent per 100 square feet of floor space increase. These conditions, as noted, refer alone to one group of stores. An in- spection of Tables 75, 76, and 77 will show how nearly the conditions are duplicated for the various groups. Reserving for the moment further consideration of Tables 76 and 77, the reader's attention is called to Tables 129 TABLE 76 TOTAL NET PALES, FLOOR SPACE, AND AMOUNT OF FLOOR SPACE PER $100 OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 ABOunt of ■tact par 100 •q. ft. of Floor Sp&ca Runbar of Storaa Total Eat Salaa Total Floor Spaca (•q. ft.) Floor Spaeo par $100 of Total Bet Sales TstU lot Balas iBount (aq. ft.) Par Cent. (In 000'») GraptUo () ep 40 60 Bf 109 120 140 lep IBO 240 t40 to &eo teo to $iBo f 180 k over 45 113 102 43 97,716 347,999 511,239 465,405 2,171 3,080 5,012 10,823 46.5 65.6 106.8 230.6 Total (Average) 34 209,399 6,150 131.2 ', Under $40 (40 to |B0 »eo to |180 (180 t over 10 16 6 2 55,498 94,172 44,709 37,020 3,350 5,886 7,452 18,510 71.4 125.4 158.8 394.3* Dnder $20 ^^^^^^^^ Total (Average ) 120 487,157 4,060 — • tlO to $40 Under |40 $40 to (80 (80 to $180 ♦iBO i over 25 48 41 6 46,871 140,326 240,855 59,105 1,876 2,923 5,876 9,851 40.0 62.3 125.2 Total (Average) 63 325,335 5,164 t4C to J60 Dnder $40 $40 to $80 $80 to $180 Mao t over 7 23 23 10 13,739 62,909 105,123 143,564 1,963 2,735 4,571 14,356 41.8 58.3 305.8* Total (Average) 86 400,468 4,657 I^ |C0 k OTer OOder $40 $40 to $80 $80 to $180 $180 k over 3 26 32 2S 3,608 50,592 120,552 225,716 1,203 1,946 5,767 9.028 25. 6 41. S ^^^^ 192.4 Average 4,694 Pull length not Obown 132 which sell least have an average sell- ing expense of $5.80, and those which sell most have a selling expense of $8.94. That is, the tendency, with a single exception, is for the amounts to increase as the stores increase in size. The conditions observed for this single group of stores, classified by the amount of rent paid per 100 square feet of floor space, also char- acterize all the stores when they are classified into groups bj'^ size. How nearly the conditions are duplicated for the different groups may be observed by comparing the detail in Table 80. The full meaning, however, of Tables 76 to 80, inclusive, has not been brought out in the foregoing summary and it is necessary to con- sider further certain of the details. From Table 76 it will be observed that the larger the store in terms of sales, the smaller the floor space re- quired per $100 of sales. For those selling least — under $40,000 — the amount is 6.98 square feet, and for those selling most — $180,000 and over — the amount is 2.85. Between these limits, the amounts decrease as the stores increase in size. However, as is shown in Table 77, the amounts of selling expense per $100 of total net sales increase as the stores increase in size. This is in keeping with the con- clusions previously reached at vari- ous places. When the selling expense per $100 of total net sales is deter- mined for the amount sold per square foot of floor space,* as in the columns * The method by which this unit is com- puted is explained on page 4, item 25. in Table 77 bearing this captain, it will be seen that, as the stores in- crease in size, there is a tendency for the amounts to decrease. That is, a relationship inverse to that found for selling expense in terms of sales alone, characterizes the stores. Moreover, a similar inverse relationship holds within each size-group in relation to the rent paid per 100 square feet of floor space. To illustrate this inverse tendency, stores with annual sales of $40,000 to $80,000 may again be chosen. It costs in selling expense per $100 of total net sales, on the average, for this group, $7.13. The amounts increase as the stores in- crease their rent payment per square foot. When the amounts of selling expense per $100 of total net sales are shown for the amounts sold per square foot of floor space, the average becomes $0.38. The amounts, how- ever, measured in this unit, decrease as the stores increase their rent payments per unit of space. This seems to show that high rental is expensive in terms of selling expense per $100 of sales, but cheap in terms of selling expense per $100 of total net sales for the amount sold per square foot on this space. In other words, the sales are enough larger on the high rental, as compared with those on the low rental space, to con- vert high selling expense in terms of sales to low selling expense in terms of sales per amount sold for each square foot. For purposes of illustration, stores with sales of $40,000 to $80,000 were used, but any of the groups might 133 TABLE 79 TOT^Uj net sales, floor space, and amount of floor space per $100 OF TOTAL NET S.VLES, FOR STORES CLASSIFIED BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE AND BY SIZE OF STORE, 1919 * Cluiiriad ■•t Salt! (In O00'«) ■nber of Btoroe Total Bat Sals* Total Ploor 6pac« (sq. ft.) Floor Bpae« par $100 of Total Bat Salaa tmraa\ at Brat jxr 130 AaonDt {f,,. ft.) Par Cant. T1»<3T 8p«»« 20 40 60 80 100 120 140 160 180 200 280 240 total (ATorag* ) 303 $56,193,718 1,422,589 3.93 thidu- )40 >40 to teo 8eo to «ieo »ieo * OTsr 45 US 102 45 1,399,886 6,800,336 U, 966, 362 16,307.134 97,716 347,999 811.239 468,405 6.98 8.38 4.27 2.86 72.6 Total (iToragn) O^ar Mo »M to |B0 )eo to Jtiso $180 * oT«r 34 3,512,144 209,399 8.96 10 1« 6 S B76, 510 »48,52S 700,807 1,887,308 33,498 94,172 44,709 37,020 12.16 9.93 6.58 2.33 Oidu' |eo 50,3 Total (Ararago) 1£0 9,487,372 487,187 6.18 •so t« Am ttodar %*0 mo t* too $80 to $180 $130 k OTsr S3 48 41 6 797,840 8,643,807 4,643,288 1,378,470 46,871 140,326 240,888 89,108 6.87 8.31 8.19 4.31 149.4 132.1 Total (Average) 63 8,649,876 328,338 3.76 ; Otader $40 $i0 to $80 $80 to $180 $180 4 over 7 23 23 10 212,808 1,566,387 2,707,107 4,363,274 13.759 62,909 105,123 143,564 6.4« 4.60 3.88 3.29 4«a to teo 1 Total (Average) 86 14,574,626 400,468 2.76 70.0 Ctoder $40 $40 to $80 $80 to $180 $180 4 over 3 26 82 25 113,728 1,541,617 9,938,193 8,954,088 3.608 80.892 120.552 225,716 3.17 3.28 3.06 2.51 t«0 k oTar : 77.9 63.9 *Pull langtb not ahown have been studied with similar re- sults. It is worth while for the reader to study the detail of Table 77, more particularly those showing the selling expense in terms of the extent to whif'h the space is used. It is also of interest to consider further than has been done in the preceding statement, the details of Tables 79 and 80. In Table 79 the amounts of lloor space required per $100 of total not sales decrease as the amounts of rent paid per 100 square feet of floor space increase. For the 134 stores paying less than $20 per 100 square feet of floor space, the amount of floor space required for each $100 of total net sales is 5,96 square feet, and from this as a maximum the amounts decrease to 5.15, when $20 to $40 are paid in rent per 100 square feet of floor space, and to 3.76 and 2.75, respectively, when the amounts of rent per 100 square feet of floor space are $40 to $60, and $60 and over. Moreover, for stores with a given amount of rent per 100 square feet of floor space, the amounts of floor space required for each amount of sales decreases as the stores in- crease in size. Table 80 shows for stores classified by the amounts paid for rent per 100 square feet of floor space and by size, TABLE 80 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER SALES PER SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE AND BY SIZE OF STORE, 1919 ClaaelflBd T«t«l Nst Salal (in OOO'i) RuTtibor or Storoa Selling Expense per tlOO of Total Met Sales Selling Sxpenee per llOO or Total Xat Sales per Salea per S^oare Foot of Floor Space tent par 100 ABOunt Per Cent. laxnmt Per Cent. floor 6p«o« Oraphlc p 2(? 40 60 80 100 120 140 160 180 Actual araphlo 1 I Actual > 20 40 60 eO 100 120 140 160 IBO Total (Average ) SfiS (9.93 100.0 ♦0.59 100.0 uader t*0 fto to tao »60 to llflO tlfio k OT«r 4S 113 102 45 6.46 7,15 9.80 U.45 es.i 71.8 S6.7 115.5 0.45 0.58 0,42 •0,55 115.4 97.4 J07.T 84.8 Iot»l^ ; f i Tot»l (iT«r«e«) M U.S4 120.2 O.Tl 182.1 Vaa»T ^*0 t40 to |80 ISO to tiso llSO k ovor 10 16 6 2 7. JO 6.65 9.05 17.20 73,5 66,8 91,1 173,2 0.89 0.66 0.58 0,41 228.2* 16S.< 148.T los.i «M4r fc9 total (Avara^ ) 120 6.17 62,5 0.42 107,T amer («0 ^ to tSO teo to (180 llSO k OTsr 2S 46 41 6 5,eo 6. S3 9.39 e.94 ee,4 65,7 ■4,6 90,0 0.54 0.34 0.48 0.59 87.2 87.2 125.1 loo.o «»t<>l40 ; : • Total (ATorago) 65 10. SS 106.5 0.40 102.6 Olilor («0 t40 to leo ISO to Ilea liao k OT«r 7 es es 10 6.67 T.6S 8.05 12.68 67.2 76.0 90.9 127.7 0.43 0.55 0.56 0.42 UO.S e».7 69.7 107.T %to to |«0 Total (A»ara«o ) 86 10,21 102,8 0.28 71.8 VBdar |40 |«o to leo leo to liso lISO k onr 5 26 32 2S 6,70 8,44 10,94 10,22 67.6 85.0 U0,2 102,9 0.28 0.2S 0.54 0.26 71.8 71.0 87.1 66.T t«> k ow • iTvrago #0.30 full Ic&fttk BOt tboiD 135 the amounts of selling expense ex- pressed first, in terms of sales, and second, in terms of sales for the amount sold per square foot of floor space. AVhen the stores are grouped ■without regard to size, the amounts of selling expense on the whole tend neither to increase nor to decrease consistently as the amounts of rent paid per 100 square feet of floor space increase. When the stores with a given amount of rental are classified by size, however, the amounts clearly increase for each group and for the total. The amounts of selling expense per $100 of total net sales for the amount sold per square foot of floor space, however, decrease as the amounts of rent paid per 100 square feet of floor space increase, and they also tend to decrease with a given amount of rent paid as the stores in- crease in size. That is, with a given rent the stores which have high sell- ing expense per $100 of total net sales have relatively low selling ex- pense in terms of sales for the amount sold on each square foot of space used. Tables 77 and 80 deserve more at- tention than can be devoted to them at this place. Moreover, the discussion in Volumes II and VI of the Bureau's study of Costs, Merchandising Prac- tices, Advertising and Sales in the Retail Distrihution of Clothing, which relate, respectively, to the amounts of rent and to floor space, should be considered in connection with this topic. Two types of facts to which atten- tion has been called at various places in the discussion result from an analysis of these tables. The tables sliow first, the actual amounts of floor space used in terms of sales, and the amounts of selling expense per $100 of total net sales and per $100 of total net sales for the amount sold per 100 square feet of floor space for stores classified by size and by expenditures for rent. Second, they show the re- lationships of these amounts under the conditions established. That is, both standards of expense distribu- tion and tendencies for these standards to vary are determined. B. — Yearly Amounts of Selling Ex- pense per $100 of Total Net Sales for Stores Classified hy Size of City in Which Located,* 1919. The amount paid for rent is obvi- ously determined largely by the size of the city, the type of the building used, the location, and other consid- erations, attention to which is given in Volume II of the Bureau's study of Costs, Merchandising Practices, Advertising and Sales in the Retail Distrihution of Clothing. It is un- necessary to repeat what is said there or to duplicate the tables. Because of the relation of store rent to size of city, it is thought worth while, in the analysis of selling expense, for stores paying difi'erent amounts of rent per 100 square feet of floor space, to classify them according to their city location. This is done for 303 stores in Tables 81 and 82 in which two city-groups are used — those with * Population figures are for 1920. 136 population under 40,000 and those with population of 40,000 and over. The 225 stores shown in Table 81, located in the small cities, utilized, on the average, 3,828 square feet of floor space, while the 78 in the large cities utilized 7,194. In terms of $100 of sales, however, the stores in the small cities used 4.79 square feet and those in the large cities, 3.08. Within each city-group, both the amounts of floor space per store and the amounts of floor space per $100 of total net sales decrease as the amounts of rent paid per 100 square feet of floor space increase. That is, the condition with- in the city-groups is not different from that for the stores when no distinction is made according to location. Table 82 shows that in the 225 stores located in the small cities it cost, on the average, $8.29 to sell $100 worth of goods. For the stores in the large cities the corresponding amount was $11.56. That is, it costs $3.27 more on the average in the large than in the small cities. However, when the amounts of selling expense for the stores in the two city-groups are ex- pressed in terms of sales for the TABLE 81 TOTAL NET SALES, TOTAL FLOOR SPACE, AND AMOUNT OF FLOOR SPACE PER $100 OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 Amount of Rent p«r 100 sq. ft. of Floor Space Humber of Stores Total Set Sales Total Floor Space («q. ft.) Floor Space per $100 of Total Het Sales Slza or City Amount (aq. ft.) C Per Cent. (In OOO'a) •^"P*^" 1 Actual 20 40 60 80 100 120 140 160 IflO 200 Total ( Average ) 303 $36,193,718 1,422,359 3.93 1 100.0 i Under $20 $20 to $40 |40 to $60 $60 & over 54 120 63 83 3,512,144 9,457,372 8,649,576 14,574,626 209,399 487,157 325,335 400,468 5.96 5. IS 3.76 2.75 151.7 131.0 95.7 70.0 Total (Averags ) : Total (Average) 225 17,978,319 861,192 4.79 121.9 Under $20 $20 to $40 $40 to $60 #60 & over 32 110 51 32 1,924,842 8,345,567 4,795,540 2,912,370 172,379 404,414 194,420 89,979 8.96 4.85 4.05 3.09 228.0* 123.4 103.1 78.6 Dmler 1 Total (Average) T8 18,215,399 551,167 3.06 78.4 40 and Under $20 $20 to $40 $40 to $60 $60 & over 2 10 12 54 1,587,302 1,111,805 3,354,036 U, 652, 256 37,020 82,743 130,915 310,439 2.33 7.44 3.40 2.66 59.3 189.3 86.5 67.7 ■ -3 ' Average 3.93 Pull length m)t ehawn 137 amounts sold per square foot of floor space, the disadvantage accompany- ing the stores in the large cities is converted into an advantage, the amounts for the stores in the small and the large cities being, respec- tively, $0.40 and $0.36. While there is a general tendency for the selling expenses per $100 of total net sales, for the stores in the two groups of cities, to increase as the amounts of rent paid per 100 square feet of floor space increase, an inverse tendency holds when the selling expenses are expressed in terms of sales for the amount sold per square foot of floor space. For the stores in the small cities which paid less than $20 in rent per 100 square feet of floor space, the selling expense, in the more re- fined unit, is $0.68, and from this as a maximum it decreases to $0.26 for the stores paying $60 and over in rent. A similar, but less certain ten- dency characterizes the selling ex- pense, similarly expressed, of the stores in the large cities. It is un- necessary to comment further on Tables 81 and 82. The reader's at- tention is called to similar tendencies as shown in Tables 76 and 77 and to that part of Costs, Merchandising Practices, Advertising and Sales in the Retail Distribution of Clothing which deals with the effect of loca- tion on rent. TABLE 82 AMOUNT OP SELLING EXPENSE PER $100 OF TOTAL NET SALES PER SALES PER SQUARE FOOT OF FLOOR SPACE, FOR STORES CLuVSSIFlED BY SIZE OF CITY AND BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 Mmowat of R«at per 100 •q. ft. at 71*or ^ttoe B«ning Expsnaa par tlOO of Totnl Bet BCm . Stor* P«p lioo Tot»l Mat Salst Par Sto-. cr Spaca ^Ul-tlaa Salaa-poraon ^. Per stotk TumoTar Per »1,000 of Salea Puif!Ii« Salaa-paraoD Par Sale! SpHe Per $100 of lat balaa' Par itara* U*ar«««} 87 5,J«6 5.7S »1.« 156, <5« »1,739 ♦16,427 17.37 ♦4.34 «0.45 ♦0.42 ♦17.20 1.7 100.0 100.0 100.0 (fedu* |2« *30 U »«0 |40 to»« Uot onr U U n i» 5,671 5,076 2,101 5.62 4.5S 5.72 1.20 l.M 2.15 5.0« 56,2SJ 54,722 51,004 56,425 592 1,775 2,205 2,684 13,809 16, 7M 15,251 15,220 6.56 a.u S.OI 0.55 0.04 0.30 0.30 13.63 17.40 17.80 19.11 1.6 l.< 99.0 103.0 97.1 95,8 115.4 105.6 91.7 115.1 109.3 99.1 14. The amounts of net profit per $100 of total net sales decrease. 15. The amounts of net profit per store decrease. The amounts of expense items and the ratios of operation for these stores, as well as the certainty or uncertainty for the amounts to increase or de- crease, may be observed by consulting the table. Z>. — Summary, (1). The average amounts of floor space used per store decrease as the rent per 100 square (4), per $100 of total net sales in- crease, and the amounts in terms of sales for each square foot decrease, as the rent per square foot of floor space in- creases. For stores with a given rental per square foot, the amounts of selling expense per $100 of total net sales increase, while in terms of $100 sales for the amount sold per square foot, they decrease as the stores in- crease in size. 140 (5\ For stores with a given amount of rent per square foot of floor space, when con- sidered without regard to the size of store, selling expenses, in terms of sales are higher for stores in large than for stores in small cities. (2) YEARLY AMOUNTS OF SELLING EXPENSE IN RELATION TO INVEST- MENTS IN FIXTURES PER $100 OF TOTAL NET SALES. Another method of analyzing the amounts of selling expense for stores under different conditions of opera- tion consists in classifying the stores according to their investments in fix- tures. These investments, moreover, may be expressed in terms of sales and in terms of square feet of floor space. The present discussion has to do with the selling expense of a group of identical stores from year to year and with a somewhat larger number of stores for 1919, when they are studied from the point of view of the amount invested in fixtures per $100 of total net sales. A. — Yearly Amounts of Selling Ex- pense per $100 of Total Net Sales and per $100 of Total Ex- pense, 1919, 1918, and 1914. For a year-to-year comparison of selling expense per $100 of total net sales, for stores with different amounts invested in fixtures in relation to sales, the records of 135 stores are available for 1914, 1918, and 1919. For these stores, considered as a whole, the amounts decreased between 1914 and 1918, and 1918 and 1919, as shown in Table 84. Moreover, the amounts decrease from year to year for each group of stores when clas- sified by the amount invested in fix- tures in relation to sales. When the stores in each year are classified in this manner, there is a general but not uniform tendency for the amounts in terms of sales to increase as investments in fixtures increase. Whether this may be attributed to the amount of the fixture investment or to the size of the store, or to some other factor, will be considered later. When the same group of stores is classified for each year and for the combined years according to the amount of selling expense per $100 of total net sales, and the amounts invested in fixtures per $100 of total net sales are determined for each group, as in Table 85, it is found that they decreased between 1914 and 1918, and 1918 and 1919. In 1914, the average amount invested in fix- tures per $100 of total net sales was $6.61, in 1918 it was $4.65, and in 1919, $3.90. For the combined years, the average is $4.70. Similar de- creases occur from year to year for each group of stores when classified according to the amounts of selling expense per $100 of total net sales. Accordingly, it follows that from year to year sales increased faster in all the stores and in each group, when classified by amounts of selling ex- pense, than did investments in fix- tures. When the stores are classified in 141 TABLE 84 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PEBl $100 OF TOT.VL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Fixture Account per ^100 of Total Net Sales Number of Store - ^rears Total Bet Sales Total Selling Bxpense Selling Kxponae per flOO of Total Net Sales Tear* Amount ( Per Cent. '^'•^P^^'^ Actual ) 20 40 60 80 100 120 Total (Average) 40S $40,576,908 $4,428,098 »10.91 i 100.0 Dnder ^2 ♦2 to *4 U to |6 |6 & over 72 131 86 116 8,020,930 10,428,302 7,841,233 14,286,443 832,922 985,648 796,319 1,811,209 10.38 9.45 10.18 12.68 mm^^mm^i^^ S5.2 86.6 93.3 116.2 Total (Average ) i i Total (Average) 135 18,919,235 1,992,510 10.53 96.5 I%ider %Z *2 to »4 ♦4 to |6 |6 fc over 38 51 23 23 5,228,703 4,897,266 3,173,841 £,619,423 635,282 428,443 326,474 702,161 10.24 8.75 10.29 12.50 : 93.9 80.2 94.3 114.6 1919 ^^^^ ! Total (Average) 135 13,360,145 1,473,360 11.03 101.1 '; Under |S S2 to ^4 »4 to »6 $6 fc over 20 45 34 56 2,163,476 3,706,654 2,807,944 4,682,071 244,748 370,532 267,521 590,559 11.31 10.00 9.53 12.61 103.7 91.7 87.4 119.6 1918 ! Total (Average ) 155 8,297,530 962,428 11.60 106.3 ;. Ibdar $2 #2 to $4 it to |6 |6 & over 14 35 29 67 628,751 1,824,382 1,859,448 3,984,949 52,942 186,675 204,324 516,489 8.42 10.23 10.99 13.01 77.2 93.8 100.7 119.2 1914 ; i Average tl0.91 each year according to the amounts of selling expense per $100 of total net sales, the corresponding amounts of fixture investments, similarly meas- ured, increase as the amounts of sell- ing expense increase. That is, the stores having large selling expense in relation to sales also have large in- vestments in fixtures, similarly meas- ured. It is of interest, when the 135 stores are classified according to their in- vestment in fixtures, to express the amounts of selling expense in terms of total expense. This is done in Table 86. From year to year, the 142 amounts of selling expense constitute increasing proportions of total ex- pense. In 1914, $49.11 out of every $100 of total expense was due to sell- ing, in 1918 the amount was $50.35, and in 1919, $51.63. For the com- bined years the average amount was $50.63. Similar increases from year to year, with some rather large irreg- ularities, moreover, characterize each group of stores when classified by the amounts of fixture investment in re- lation to sales. How nearly this is true may be observed by consulting Table 86. When the stores in each of the years are classified by the amounts invested in fixtures per $100 of total net sales, there seems to be no un- mistakable direction of change from group to group in the relation of sell- ing expense to total expense. Pre- sumably, factors other than the amounts invested in fixtures help to determine the relation between the total expense and its constituent ele- ment, selling expense. Further con- sideration is given to this topic when the same stores are classified accord- ing to size. TABLE 85 TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF SELLING EXPENSE PER $100 OP TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Sslllng Expsnss psp $100 of Total Net Sales Himber of Store - years Total Net Sales Amount of Plxt2,7C3 80, 117 3,398 8,213 7,582 5,752 5.40 6.34 8.18 6.45 S1.3 60.2 77.7 61.3 Total (Average ) 52 2,967,756 229,272 7.73 73.4 t40 to $80 Under J2 iz to u U to 86 {6 5: over 8 28 8 8 470,684 1,658,927 431,726 406,419 29,603 118,454 43,053 38,072 6.31 7.14 9.97 9.57 59.9 67.3 94.7 89.0 i Total (Average) 48 5,603,210 587,583 10.49 99.6 i Under 82 $2 to 84 $4 to $6 t6 i over 20 15 7 6 2,217,649 1,759,679 636, lie 789,764 226,744 168,668 96, 369 95,802 97.1 Seo to tl80 i 109. S Total (Average) 23 9,973,942 1,150,510 109.6 Under $2 82 to $4 84 to 86 e 4 5 6 2,477,406 1,349,119 1,813,294 4,334,123 275,397 133, 108 179,470 562,535 105.6 93.7 94.0 123.3 $180 &. over 1 Average 810.55 149 consulting the tables applying to the respective years. It should be remembered, while 135 identical stores are considered, that tiie same stores are not necessarily found from year to year in either the same sales- or in the same fixture investment-group. Both sales and in- vestments increased from year to year. Accordingly, in successive TABLE 91 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1918 Classified Total Net Sales (In OOO'a) Aiaovnt of Fixture Account per flOO of Total Net Sales Totol Net Sales Total Selling Expense Selling, Expense par SlOO of Total Net Sales 20 40 60 80 100 120 140 Total (Average ) $49 to tBO 09O to $180 two Totol (Average ) 513,360,145 $1,473,360 Under $2 52 to 04 $4 to J5 t6 8: over Total (Average ) 2,165,476 3,706.654 2,807,944 4,682,071 1,117,468 Under (2 $2 to $4 $4 to $6 t6 5: over 124, 9f 6 269,792 297, 192 425,518 Total (Average) 3,239,547 Under S2 $2 to i4 $4 to $6 $6 & over 434,936 1,335,132 779,116 690,363 Total (Average ) 3,298,407 Under t2 t2 to ^ $4 to |6 $6 & over 593, 109 1,417,061 654,591 633,646 Total (Average) 5,704,723 Under 52 $2 to $4 $4 to 36 C* t over 1,010,465 684,669 1,077,045 2,932,544 244,748 370,532 267,521 590,559 92,371 9,959 19,976 23,674 38,762 299,694 33,916 121,256 65,955 78,567 363,676 55,117 161,063 67,483 80,013 717,619 145,756 68,237 110,409 393,217 11.31 10.00 9.53 12.61 6.27 7.97 7.40 7.97 9.11 9,25 7.80 9.00 8.47 11.38 11.03 9.29 11.37 10.31 12.58 14.42 9.97 10.25 13.41 Average $11.03 100.0 102.5 90.7 86.4 114.3 75.0 72.5 67.1 72.3 82.6 83.9 70.7 82.3 76.9 103.2 100.0 84.2 103.1 93. S 114.S 150 years, the same stores do not neces- sarily occupy the same position. In spite of this fact, however, it has been thought worth-while to include stores the identity of which has remained the same. Further illustrating the actual in- vestments in fixtures for stores when TABLE 92 TOTAL NET SALES, SELLING EXPENSE, AND AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OP TOTAL NET SALES, 1914 «laBBlTl8d Total Bet Sales (In 000 *^s) Total (Average ) Ifader ^0 $40 to ^0 fSO to #180 Amotrnt of Fixture Account per $100 of Total Net Sales Total (Average ) Under (? #2 to $4 t4 to t6 ie & over Total (Average) Under tZ is to |4 f4 to $6 $6 & over Total (Average ) Under $2 #2 to $4 ti to (6 #6 & over Total (Average ) Under $2 #2 to #4 #4 to $6 #6 & over Total (Average ) Dbder #2 |2 to |4 $4 to |6 $6 & over Total Net Sales $8,297,530 14- 55 628,751 1,824,382 1,859,448 5,984,949 1,628,016 215,927 400,826 333, 624 677,639 Total. Selling Expense |962, 428 52,942 186,675 204,524 518,489 146,398 2,464,877 eoi, 671 761,538 442,609 1,059,059 2,509,827 211,153 662,018 902,215 734,441 1,694,810 161,000 1,515,810 12,564 36,413 26,849 70,572 277, 395 15,065 74,368 49, 140 138,822 502, 620 25,513 75,692 110,575 91,040 236,015 17,960 218,055 Selling Expense per flOO of Total Net Sales 111.60 8.42 10.25 10.99 15.01 8.99 5.82 9.08 8.05 10.41 11.25 7.47 9.77 11.10 13.11 12.06 11.99 11.46 12.25 12,40 9.92 14.40 Oraphlo O 20 40 60 80 100 120 140 I I 1 I I I I Average ^11.60 100.0 72.6 88.2 94.7 112.2 77.5 50.2 78.3 69.4 89.7 97.0 64.4 84.2 95.7 113.0 104.0 103.4 98.8 105.4 106.9 85.5 124.1 151 classified by size and by selling ex- pense per $100 of total net sales, as shown in Table 88 for 303 stores, it is of interest to include Tables 93 to 96, inclusive, which refer, respectively, to the combined and to the individual years under discussion. From the de- tails of these tables two facts stand out. First, as the stores increase in size, the investments in fixtures per $100 of total net sales tend, on the whole, to decrease. This condition characterizes the stores with annual sales less than $180,000. The group of smallest stores, generally speaking, have the largest amounts invested in TABLE 93 TOTAL NET SALES, FTXTLTRE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE AND BY SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Classified Amount of Selllne Expense per 5100 of Total Net Sales N'jnber of Store- years Total Net Sales Anoujit of Plxtijro Acco'int Ar.o'int of Fixture Account per $100 of Total Net Sales Total Bet Sales Anount Per Cent. (In 000' a) '^^P^'-" Actual ) 20 40 60 30 100 120 140 160 Total (Averago ) 405 J40,576,90S Jl, 908,079 e4.70 100. i Total Under 56 $6 to 512 $12 & over 87 213 99 4,077,823 24,012,511 12,436,574 142,121 1,053,434 707,524 3.49 4.41 5.67 74.3 93.8 120.6 (Average ) Total (Average ) 112 3,119,309 164,125 5.26 111.9 1 Under t40 Under $6 $6 to 512 $12 !-. over 38 56 18 1,054,505 1,552,624 512, 679 45,919 88,366 29,840 4.35 5.69 5.82 92.6 121.1 123.8 i Total (Average) 153 8,672,180 377,800 4.36 92.8 $40 to $80 Under C6 $6 to §12 $12 k over 41 79 33 2,227,407 4,519,537 1,925,236 80,510 193,546 103,744 3.01 4.28 5.33 76.8 91.1 114.7 i Total (Avcrarjo ) 98 11,411,444 431,319 3.78 80.4 ^^^^ $80 to Jmo Under 56 $6 to Cl2 $12 It over 8 56 34 795,910 6,722,894 3,892,640 15,692 252,060 163,567 1.97 3.75 4.20 41.9 79.8 89.4 1 1 Total (Avomce ) 42 17,373,475 934,835 5.38 114.5 SlBO ^ over Under 06 $6 to 512 $12 tc over 23 14 11,217,456 6,156,019 524,462 410,373 4.08 6.67 99.6 141.9 ; : Average $4.70 152 fixtures in relation to their sales. To this rule, however, there are a few exceptions, due probably to the num- ber and size of the stores included. Second, the amounts invested in fix- tures in terms of sales are largest for the stores having large selling ex- pense, similarly measured. The amounts of selling expense may also be expressed in terms of total ex- pense. This is done in Tables 97 to 100, inclusive, for stores classified by size and amount of investments in fixtures in terms of sales, for the com- bined and for the individual years. When the amounts are expressed in. TABLE 94 TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOT.VL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919 Amo'int of Selling Expense per $100 of Total Net Sales Sijmber of Stores Total Net Sales Anount of Fixture Account 1 Anount of Fixture Accoixnt per §100 of Total Net Sales Total Het Sales (In OOO'b) Amoijnt C Per Cent. Graphic Actual ) 20 40 60 80 100 120 140 Total (Average ) 135 §18,919,233 §738,774 §3.90 100.0 : Total Onder §6 $6 to §12 §12 8: over 36 69 30 2,251,346 11,282,916 5,384,971 66,112 450,815 221,847 2.94 4.00 4,12 75.4 102.6 105.6 (Average ) 1 Total (Average ) 12 374, 325 16, 697 4.46 114.4 Onder ^ Under §6 §6 to 512 §12 6c over 5 7 140,498 233,827 5,462 11,235 3.89 4.80 99.7 123.1 1 Total (Average) 52 2,967,756 107,839 3.63 93.1 '""'"'^'^^"" » $40 to §80 Under §6 §6 to §12 §12 8: over 23 21 e 1,314,938 1,203,620 449,198 44,958 41,606 21,275 3.42 3.46 4.74 87.7 88.7 121.5 ; 1 Total (Average) 48 5,603,210 175,362 3.13 80.3 i S80 to §180 Under §6 §6 to §12 §12 & over 8 24 16 795,910 2,880,333 1,926,967 15,692 95,844 63,826 1.97 3.33 3.31 50.5 85.4 84.9 f \ Total (Average) 23 9,973,942 438,876 4.40 112.8 1 ?180 & over «nder §6 §6 to §12 §12 Ic over 17 6 6,965,136 3,003,806 302,130 136,746 4.34 4.54 111.3 116.4 „ Averajo C3.90 153 this form, for stores classified by size, there seems to be no unmistakable tendency for them in any one of the years to increase or to decrease with the amounts invested in fixtures per $100 of total net sales. One would not be justified, from the data available in concluding that, proportionately, selling expense becomes either a larger or smaller part of the total operating expense as the fixture in- vestments in terms of sales increase. In some instances there is a decided tendency for the amounts to increase ; in others, there is equally as clear a tendency for them to decrease. The TABLE 95 TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1918 Anount of Selling Expense per $100 of Total Ket Sales "riunber of Stores Total Net Sales Awoijnt of f^xMre Acco'jnt Amoiint of Fixture account per JlOO Total :;et Sales of Total Det Sales Amo'jnt ( Per Cent. 20 « 60 80 100 120 140 Actual Graphic 3 20 40 60 80 100 120 140 160 Actual Total (Average) SOS $9.93 1 100.0 $0.59 1 Dnder $40 $40 to $80 $80 to $120 $120 4 over 74 105 65 61 e.6S 9.54 9.67 11.09 86.8 96.1 97.4 111.7 0.48 0.43 0.56 0.50 " Total "" I i J 1 Total (Average ) 45 6. 46 66.1 0.45 lis .4 Under $40 $40 to $80 {80 to $120 $120 i over U 24 S 7 6.55 6.50 7.99 7. 15 S$.9 65.5 74.4 71.8 0.S7 0.45 0.51 0.31 146.2 110.» 130.8 79.5 Under $40 1 I i Total (Average) 113 7.13 71.8 0.38 97.4 1 Under $40 $40 to $8» $80 to $120 $120 & over 33 42 25 15 6.75 6.42 7.80 6.85 63.1 54.7 78.5 89.1 0.45 0.32 0.33 0.48 11S.4 82.1 84.9. 125.1 $40 to $80 ' ... ' [ Total (Average ) 103 9.80 98.7 0.42 107.7 ! 1 ■ Under $40 $40 to $80 ^0 to $120 $120 * over zz 93 28 18 9.10 10. sa 9.47 10.04 81.6 104.5 95.4 101.1 0.50 0.46 0.57 0.50 I28.e U7.9 94.9 76.9 $80 to C180 ^^tm^mmm ' 1 Total (Average ) 49 11.45 115. S 0.35 84.6 i Under $40 $40 to $80 $80 to $120 $120 & over e 6 8 21 9.79 12.73 11.14 11.61 98.6 128.2 112.2 U6.9 0.42 0.44 0.52 0.28 107.7 112.8 82.1 71.8 $1S0 & over ATerege $9.93 Averaee $0.58 on each square foot of floor space for stores of different size, but with the same amounts invested in fixtures. A moment's consideration of its eon- tents may be of interest. For each group of stores, when classified by the amounts of fixture in- vestments per unit of floor space, the amounts of selling expense per $100 of total net sales increase as the size of the stores increases. They also increase as the amounts of fixture investment in relation to floor space increase. The amounts of selling ex- pense per $100 of sales for the amount sold on each square foot of floor space, for each of the groups of stores as classified, however, generally tend to 167 decrease as the size of the stores in- creases, and as the size of the invest- ments in fixtures increases. This table confirms the conclusion drawn from Table 10-1 that, while amounts of sell- ing expense are generally high in terms of sales for stores having large investments in fixtures per 100 square feet of floor space, they are relatively low when they are expressed in terms of the utilization of the floor space. The association between large amounts of selling expense per $100 of total net sales and large invest- ments in fixtures per 100 square feet of floor space is brought out in Table TABLE 105 AMOUNT OF SELLING EXPENSE PER $100 OF TOTxVL NET SALES PER SALES PER SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY AMOUNT OF FIXTURE ACCOUNT PER 100 SQUARE FEET OF FLOOR SPACE AND BY SIZE OF STORE, 1919 iBcyszt of Plxtura AccDiijit per 100 »q. rt, of Floor Sp«ce Clasalflsd Total Net Sales (In OOO'b) Selling Sxpenae par $100 of Total Bat Salea Grapillo I Actual 20 40 60 80 100 120 140 Graphic | Actual. 40 60 60 100 120 140 160 DBder |40 ftO to )80 tSO to $180 tlSO h over Under $40 Dcder $40 $40 to $80 $80 to $1S0 $180 fc orer Under $40 $40 to $80 $00 to $180 $180 h over $80 to $180 Under $40 $40 to $80 $80 to $180 $180 k over Total (Average ) $180 A over Under $40 $40 to $60 $80 to $180 $1£0 ft over $9.93 6.46 7.13 9.80 U.43 8.S2 s.ss 6.7S ».10 8.79 9. 54 6.50 6.42 10.30 12.73 9.67 7.59 7.80 9.47 11.14 11.09 7.13 8.85 10.04 11.61 Avorags $?.9S 100.0 65.1 71.8 98.7 115.3 85.8 ss.g ee.i 91.6 S8.6 96,1 65.5 64.7 104.5 128.2 87.4 74.4 78.5 es.4 112.2 1U.7 71.8 89.1 101.1 116.8 $0.39 0.43 0.38 0.42 0.33 0.43 0.57 0.45 0.5O 0.42 0.43 0.43 0.32 0.49 0.44 0.51 0.S3 0.37 0.32 0.30 0.31 0.48 0.30 0.28 Averaee So.Si^ 100.0 115.4 9T.4 107.7 84. S 123.1 146.2 115.4 128.2 107.7 110.3 U0.3 82.1 117.9 112.6 92.3 130.8 84.8 94.9 82.1 76.9 79.8 123.1 76.9 71,. 8 168 106. For each group of stores, when classified by size, the amounts in- vested in fixtures per unit of floor space are larger for the stores having large, than for those having small amounts of selling expense in terms of sales. An inspection of this table will reveal only one exception to the general rule and this is based upon only one store. TABLE 106 FLOOR SPACE, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER 100 SQUARE FEET OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES, 1919 Amoxjnt of Selling Expense per $100 of Total Net Sales Number of Stores Floor Space (sq. ft.) ABount of Fixture Account Amount of Plxtiire Account per 100 aq. of Floor Space ft. Total Net Sales (In OOO's) Amount C Per Cent. Graphic ) 20 40 60 80 100 120 140 16C Actual Total (Average ) 303 1,422,359 $1,326,406 $93.25 ^^^^^^^i 100.0 Total (Average) Under $6 $6 to $12 $12 i over 85 163 55 224,662 628,792 368,905 139,386 767,735 419,285 62.04 92.63 113.66 66. S 99.3 121.9 Total (Average) 45 97,716 56, 181 57.49 1 61.7 Under $40 Under $6 $6 to $12 $12 & over 20 22 3 41,754 44,502 11,460 17,694 32,360 6,127 42.38 72.72 53.46 45.4 i 57.3 Total (Average ) 113 347,999 209,385 60.17 64.5 $40 to $80 Under $6 $6 to $12 $12 S: over 49 54 10 135,553 180,121 32,320 78,399 105,227 25,75:^ 57.83 58.42 79.70 62.0 62.6 85. S Total (Average) 102 511,239 403,538 79.91 $80 to $180 Under $6 $6 to $12 $12 k over 15 61 26 45,475 317,017 148,747 35,454 247,450 125,534 77.96 78.05 84.46 63.6 83.7 90.6 : ! Total (Average) 43 465,405 652,302 140.15 150.3 llSO h over Under $6 $6 to $12 $12 & over 1 25 16 1,875 287,152 176,378 7,839 332,698 261,765 418.03 133.27 148.41 448.3* 142.9 159.2 Average $93.25 *Full length r ot shovs. 169 B. — Summary. (1). The amounts of selling ex- pense per 100 square feet of floor space and per $100 of total net sales increase as the investments in fixtures per 100 square feet of floor space in- crease. This is true for all stores and for stores of a given size. (2). The amounts of selling ex- pense per $100 of total net sales for the amount sold per square foot of floor space de- crease as the investments in fixtures per 100 square feet of floor space increase. This holds for all stores and for stores classified by size. (3). For stores with a given amount invested in fixtures per 100 square feet of floor space, the amounts of selling expense in terms of sales alone increase, while in terms of both sales and amount sold per unit of floor space they decrease, as the stores in- crease in size. 5. — YEARLY AMOUNTS OF SELLING EX- PENSE IN RELATION TO EXPENDI- TURES FOR ADVERTISING, FOR STORES CLASSIFIED BY YEARS, BY SIZE, AND BY LOCATION. The term "advertising" as used in this section includes expenditures for the different methods of advertising such as newspapers, billboards, etc.,* * See the questionnaire in Volume VI, page 597, of the Bureau's study of Costs, Merchandising Practices, Advertising cmd Sales in the Retail Distribution of Clothing. as well as the salaries of the advertis- ing employees, such as window trim- mers and advertising men. The stores which are studied in this section are classified for the years in question by the amounts of advertising expen- ditures in relation to sales. Both simple and complex units of measure- ment,! of the same general type as those which have already been used, are employed. In the following discussion, chief emphasis is given to the conditions in 1919, although for a limited group of stores, comparisons are made between the increases in total net sales and selling expense for the years 1914, 1918, and 1919, The order in which these topics are discussed is essen- tially that used in the foregoing sec- tions. A. — Yearly Amounts of Selling Ex- pense per $100 of Total Net Sales and per $100 of Total Ex- pense, for Stores Classified by Size, 1919, 1918, and 1914. Table 107 shows the amounts of selling expense per $100 of total net sales in 1919 for 282 stores classified by size and by the amounts expended for advertising in relation to sales. It also shows the amounts of selling expense per $1 of advertising for the stores similarly classified. It is hardly necessary to call atten- tion to the fact, so often noticed be- fore, that the amounts of selling ex- pense per $100 of total net sales in- crease as the stores increase in size. f The methods by which these are com- puted are explained on page 4. 170 The amounts in which chief interest now lies are those for stores with dif- ferent amounts spent for advertising per $100 of total net sales. It will be seen from Table 107 that for all the stores and for each group, when classified by size, the amounts of sell- ing expense per $100 of total net sales increase as the amounts expended for advertising, similarly expressed, in- crease. For the 79 stores which spent less than $1 for advertising per $100 of total net sales, it cost, in 1919, $7.07 to sell $100 worth of goods. For those which spent from $1 to $2 for each $100 of sales, the correspond- ing figure was $8.46. For the stores spending amounts larger than $2 for advertising per $100 of total net sales, the costs of selling, similarly meas- ured, were even higher. How large they are for the stores as classified, TABLE 107 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES AND PER $1 OF ADVERTISING, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919 AncTmt of Aivortlalne par tlOO of Total Kot Ealoa KTBTbaP of Storea Eelllae Eipensa par tlOO of Total Bat Salaa SalUng Exponaa par ll of Advertialjig Total Sat ialoa (In OOO'e) AnouBt l*.- Cant. Amount Pap Oant. Oraphlo 1 ^,j^ 20 40 60 60 lOO 120 140 *»»"• 1 Aetnal 20 40 $0 80 100 120 140 160 180 200 220 Total (AToraga) 232 tl0.16 100.0 $4.81 100.0 1 OtuJar fl ill to »2 12 to»S »3t OTor 79 100 68 S7 7.07 8.46 11.62 12.55 69.8 es.s Ut.4 121.6 13.29 6.82 4.70 3.02 294,6» 129.0 104.2 67.0 Iota! «») . SS 6.00 69.1 S.U IIS.S aidial 20 40 60 80 100 120 140 160 180 Total (Averoce ) 282 $10,16 1 100.0 $4.62 100.0 ! ! Total (Average ) Under |1 $1 to SS «2 to S3 *3 k over 79 100 66 37 7.07 8.46 11.62 12.36 69.6 83.3 114.4 121.6 3.37 4.23 5. OS 5.15 72.9 91.6 109.3 111.5 j i Total (Average ) S3 6.00 59.1 4.00 86.6 Under UO Under $1 »1 to $2 42 to $3 $3 & over 15 14 2 2 6.01 7.12 5.27 7.11 49.3 70.1 51.9 70.0 2.95 5.4a 2.29 6.47 63.9 118.6 49.6 118.4 i Ibtal (Average ) 106 7.45 73.3 4.14 89.6 ; ♦40 to 180 Under $1 »i to ea $2 to *3 t3 i over 43 37 20 6 5.77 7.54 9.32 13.23 56.8 72.2 91.7 130.2 3.21 4.32 5.18 7.78 69.5 93.5 112.1 168.4 1 Total (Average) 98 10.16 100.0 5.35 115.8 {80 to tl80 Under $1 »1 to t2 »8 to «3 tS t over IS 39 26 15 8.74 8.47 11.63 13.12 86.0 83.4 114.5 129.1 4.16 4.23 6.12 7.29 90.0 91.6 132.5 157.8 1 i . 1 1 Total (Avorteo ) 45 11. S6 111.8 4.06 87.9 — - $180 4 over Under fl »1 to e2 tS to $3 $3 & over 3 10 18 14 7.92 8.36 12.07 12.12 78.0 92.1 118. 8 119. S 2.40 3.60 4.47 4.33 1 ' Average $10.16 Average $4.62 174 presented is reversed. That is, Table 110 shows the amounts of selling ex- pense per $100 of total net sales and per $100 of total net sales per stock turnover for stores of different size with given amounts of advertising expenditure per $100 of total net sales. AVithin each group of stores, classified according to expenditures for advertising in relation to sales, the amounts of selling expense, ex- pressed in terms of sales alone, in- crease. In terms of sales per turn- over the direction of change in the amounts, except for one group of stores, is conflicting. The general effect, however, from the use of the combined unit is to tone down, if not wholly to nullify, the increase in the amounts when the unit of comparison is sales alone. Another measure of the amounts of TABLE 110 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOR STORES CLASSIFIED BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES AND BY SIZE OF STORE, 1919 Amount of Advertising per (100 ot Olueifled Totaa Vat £^00 (is 000 '■) Solllns Bzpsniio par %VX of Total lot Salsa Stores Aiiuji.t 20 40 60 80 100 120 140 20 40 60 80 100 120 140 160 ISO tS to %Z %S h I Dndsr $40 (40 to tao teo to tiao $180 & OTor CBdor $40 iv) to $eo Seo to tiso (IBO & oTsr Dnaer $40 t40 to $S0 t£o to $iao ^180 k over Utnlar $40 $40 to $80 $80 to $180 $1£0 & ovsr Osdsr $40 $40 to $80 $80 to $180 tieo lE over $10.16 6.00 7.45 10. U 11. S6 7.07 5.01 5.77 8.74 7. 02 8.46 7.12 7.54 8.47 9.se u.e2 6.27 s.:2 11.65 12.07 12.55 T.U 15.25 15.12 12.12 100.0 59.1 75.5 100.0 lll'.a 6S.6 49.5 G6.8 86.0 79.0 85.5 70.1 72.2 83.4 92.1 U4.4 51.9 91.7 114.6 iis.a 121.6 70.0 130.2 129.1 119.5 175 4.00 4.14 5.35 4.06 5.57 2.95 5.21 4.16 2.40 4.23 £.48 4.52 4.25 5. SO s.oe 2.29 S.IS 6.12 4.47 5.15 5.47 7.7a 7.29 4.33 Averags $4.62 100.0 86.6 89. S 115.8 87.9 72.9 65,9 69.6 90.0 51.9 91.6 118.6 93.5 91. S 77.9 109.5 49.6 112.1 15S.S 96.8 lU.S lis .4 168.4 187.8 95.7 TABLE 111 AMOUNT OF SELLING EXPENSE PER $100 OF TOTAL NET SALES PER AMOUNT SOLD PER $1 OF A\'ERAGE INVENTORY, 1918 AND 1919, FOR STORES CLASSI- FIED BY SIZE AND BY AMOUNT OF AD\nERTISING PER $100 OF TOTAL NET SALES, 1919 Anount of /IdYortHlna por 1100 of Tot»l Cot S«lea KiE^bor or Storoa Eolllng Qtponao por tloo of Total Not SAlsa BoUlng Bxponso por tlOO of Total Not Saloa por Anont Sold par $1 of Avarago Inventory, 1918 and 1919 Ict»l ABoont < For Cont. Amount Par Cent. (la 00(J^») 20 40 60 60 100 120 140 *■*"» 1 Actual 3 20 40 60 80 100 100 140 160 IBO Tot.a (AvorKGo) 233 tlO.16 lOO.O tJ.lS 100.0 Ckulor (1 ♦I to (2 »S to »3 |3 k ovor TO 100 66 n 7.07 0.46 12.55 e9.6 es.s 114.4 121.6 2.42 2.88 3. 56 3.54 77.3 92.0 107.3 106.7 Itotal (iverftgo) ■"■^■^l* TotU (AT«r>ee) 3S e.oo E9.1 2.60 89.5 Uudtr Uo Ifailor tl «1 to»2 |2 t. »S «S » o«r 15 14 t e S.Ol 7.12 6.27 T.ll 49.5 70.1 61.9 70.0 2.08 5.93 1.63 3.S4 66.S 125.6 48.9 ^^__ 113.1 i Total (Avorft^v ) IM 7.<5 73.3 2.94 »S,» Ko to tao Dnaor tl »1 to (2 (2 to (> »S I o„r 43 37 20 6 S.77 7.34 9.32 13.23 £6.8 72.2 91.7 130.2 2.25 3.02 3.67 5.25 71.9 96.3 U4.1 167.7 ^J Iot>l (Avorago) se 10.16 100.0 5.63 112.8 1 Ucaer (1 «1 to »2 M to »S »S (k o«r IS 39 se IS 8.74 e.47 U.65 13.12 86 .0 es.4 114.3 129.1 2.89 2.93 4.00 4.93 92.3 93.6 127.8 157.5 (60 io lieo ; . : Total Uioraeo) 4S U.S6 ui.e 2.71 86.6 DBilor }1 »1 to tZ »2 to tS tS & ovar 3 10 IS 14 7.92 9.36 12.07 12.12 78 .0 92.1 118.8 U9.S 1.73 2.39 2.96 2.76 65.3 76.4 94.6 87.9 (ISO <> cnr . I Average $X0.16 ^AT«ra^ l^iU selling expense per $100 of total net sales for stores classified by the amounts expended for advertising is found in Table 111. The amounts are expressed for each unit sold per $1 of average inventory, 1918 and 1919.* It will be recalled from an earlier discussion, that inventories in terms * The methofl by which this unit is com- puted is exijlained on page 4, item 18. of sales are relatively low in the large stores. Moreover, the amounts of both advertising expense and selling expense per $100 of total net sales have been found to be relatively high in these stores. Accordingly, when the stores are classified by size and the amounts of selling expense per $100 of total net sales for each amount sold per $1 of average in- 176 ventory, 1918 and 1919, are calcu- lated, they are found to increase as the size of the stores increases, but by smaller amounts than selling ex- penses when they are expressed in terms of sales alone. The amounts of selling expense, when measured in terms of sales and in terms of sales for the amount sold per $1 of average inventory, 1918 and 1919, increase as the amounts spent for advertising per $100 of total net sales increase. The increases are greater when the amounts of selling expense are ex- pressed in terms of the simple, rather than the complex, unit. Table 111, like the tables which precede it, serves two purposes : First, to give the actual amounts of selling expense expressed in two ways; and, second, to illustrate increases or de- creases in the amounts for stores when classified in the manner shown. The relative increases in total net sales and selling expense between 1914 and 1918, and 1918 and 1919 for a group of stores having annual sales between $20,000 and $40,000 are shown in Table 112 when the stores are classified with respect to the amounts of advertising expenditure per $100 of total net sales in 1914. Between 1914 and 1919, for the 60 stores included, sales increased 113.7 per cent., while total selling expense increased 79.9 per cent. When the amounts of selling expense are ex- pressed in terms of sales, the average amount decreased 15.9 per cent, be- tween 1914 and 1919. A decrease of 9.2 per cent, in the average amount of selling expense in relation to sales occurred between 1914 and 1918. This is the condition for the stores irrespective of the amounts expended for advertising in relation to sales. When the stores are classified accord- ing to the amounts of advertising expenditure per $100 of total net sales in 1914, the percentages of de- crease in selling expense per $100 of total net sales between 1914 and 1918 vary inversely with the amounts ex- pended for advertising in relation to sales. For the stores spending less than $1 per $100 of total net sales, TABLE 112 RELATION OF SELLING EXPENSE TO TOTAL NET SALES, 1919, 1918, AND 1914, FOB STORES HAVING SALES FROM $20,000 TO $40,000 IN 1914, CLASSIFIED BY AMOUNT OF ADVERTISING PER $100 OP TOTAL NET SALES, 1914 fcDOTmt of SiBsbep of BtopeB Total Bet Beleo Total BelllQg Expense SeUlDg Ezpenae par ♦lOO of Total Set Salee per »100 of Tot.l Set EaleB 1914 1914 1918 1919 1914 191fl 1919 1914 1918 1919 ^t Aaount Per Cent, Increeee o»er 1914 toount for Cent, locreaae over 1914 ABOV&t Aaount Per Cont. Increase omr 1914 ._t Per Cent. Inereaae over 1914 Anount Jjaoont Por Cent. 3ecreaae rron 1914 taaoxmt Deoreaae free 1914 ToMl (Averftgo) 60 ♦1,721,456 »2,60e,966 61.6 t5,679,474 115.7 »I55,557 ♦213,762 3T.6 ♦279,457 79.9 ♦9.02 ♦a. 19 . 9.2 ♦T.6» 15.8 Ondor tl ♦1 to»S 12* OVM- 16 24 20 479,026 665,167 679,26: 666,409 1,014,242 928,5JS 39.1 ee.9 60.5 997,620 1,406,492 1,275,162 108.3 UZ.l 120.1 51,704 Ce,9]2 05,921 4igs ABount of Total Nat Salss p«r 3tor« Average Ajuount of Uocoa and Salaries por itora Average Amount of toa^ea and Salaries per tlOO of Total Hat Sales T«ftrf Jbwnuit P«r Cant. Increoaa over 1914 Amount 3 Par Cent. InereaBe over 1914 Amount Per Cent. Decrease from 1914 1 Graphic Aetiul ' 20 40 C-J 30 ICO 120 11 Graphic Aatual 1 9 20 40 60 80 100 120 Graphic 20 40 CO 80 100 120 9i,649 59,924 12(;.4 59.5 J9,'!64 7,040 4,504 110.1 60. 3 •«.9e 7.S7 7.52 7.2 2.0 1916 1914 3 tween 1914 and 1918 by 59.5 per cent. and between 1914 and 1919 by 126.4 per cent. The corresponding per- centages of increase in wages and salaries for the respective years were 56.3 and 110.1. That is, in 1918 and 1919, when compared with 1914, for the same stores, wages and salaries increased less than total net sales. Accordingly, when the amounts of wages and salaries per $100 of total net sales are determined for the stores in the different years, the percentage of decrease between 1914 and 1918 is 2.0 and between 1914 and 1919, 7.2. Simultaneous with the increases in wages and salaries, total selling ex- pense for the same stores increased 51.9 per cent, between 1914 and 1918, and 106.0 per cent, between 1914 and 1919. When the amounts of wages and salaries are expressed per $100 of selling expense the average amount in 1914 was $65.47, in 1918 $67.35, and in 1919 $66.80. That is, between 1914 and 1918 the amounts increased 2.9 per cent, and between 1914 and 1919, 2.0 per cent. These amounts are shown in Table 121, Summarizing Tables 119 to 121, in- clusive, one may conclude first, that the amounts of wages and salaries per $100 of total net sales decreased be- tween 1914 and 1918, and 1918 and TABLE 121 AVERAGE AMOUNT AND PER CENT. INCREASE OF SELLING EXPENSE AND WAGES AND SALARIES PER STORE, AND OF AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 Averaga Amount of Selling Expense per Store Average Ajno'int of Wages and Salorlea par Store Average Anount of nagea and Salaries per $100 of Selling Czpenae Amount Per Cent. Increase over 1914 Amoijnt Per Cent. Increase over 1914 Amount Per Cent. Increase over 1914 1 Graphic Actual 1 20 40 60 80 100 12C { Graph! a Actual 1 20 40 60 80 100 120 1 Graphic Aatual 1 20 40 60 80 100 120 1919 1918 1914 $14,169 10,452 8,079 loe.o SI. 9 t9,464 7,040 4,504 110. 1 56.5 $66.90 67. J5 65.47 ^.0 2.9 1 — ^ 188 1919, while per $100 of selling ex- pense they increased between 1914 and 1918 and decreased between 1918 and 1919. Second, based upon a three-year experience of 154 stores, it cost in wages and salaries, on an average, $7.22 to sell $100 worth of goods. Third, the part of total sell- ing expense, properly chargeable to wages and salaries, constitutes, on the average, for the years in question, $66.69, or approximately two-thirds of the total. (Table 123.) B. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Ex- pense for Stores in 1919, 1918, and 1914, Classified hy Size. When the 154 stores are classified by size and the amounts of wages and salaries per $100 of total net sales are computed for each year, as in Table 122, it is found that decreases in 1918 and 1919, compared with 1914, char- acterize each group, with but a single exception. The average amount for all of the stores is $7.22. For those with sales under $40,000 it is $5.91; for those with sales of $40,000 to $80,000, $6.51; for those with sales of $80,000 to $180,000, $7.26 ; and for those with sales of $180,000 and over, $7.84. Similar differences for stores of different size hold in each of the years. Table 123 shows for each group of stores, classified by size, the amounts of wages and salaries per $100 of selling expense in each of the years. In every group, the amount in 1918 was higher than in 1914. In the smallest and in the largest stores the amounts were less in 1919 than in 1918. In the other two groups, how- ever, the reverse condition obtains. In all the groups but one, the amounts were higher in 1919 than in 1914. As the stores increase in size, the amounts of wages and salaries per $100 of selling expense over the whole range decrease. The average for the three-year period for all the stores is $66.69. For the three years for the small stores it is $69.56 and for the others in order of size, as familiarly grouped, $69.67, $66.61, and $65.06. From year to year in the groups clas- sified by size, the amounts closely cor- respond to the total; the largest amount being 8.0 per cent, in excess of the average and the smallest 8.9 per cent, less than the average. C. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores in 1919, 1918, and 1914, Classified by Size of City in Which Located* It is of interest to compare the re- lation of wages and salaries to sales and to selling expenses from year to year for the 154 stores under consid- eration when they are classified by the size of the city in which they are located. This is done in Tables 124 to 127, inclusive. The 115 stores located in the small cities increased their sales between 1914 and 1918 by 49.4 per cent., and between 1914 and 1919 by 109.4 per * Population figures are for 1920. 189 TABLE 122 TOT.VL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OP TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE, 1919, 1918, AND 1914 Years number of Store- yeara Total Met Sales Total Wages & Salaries T/agea and Salaries per $100 of Total Net Sales ClaBSlfled Total Bet Sales (In OOO'b) Aiaoiait Per Cent. Graphic Actual D 20 40 60 80 100 120 Total (Average ) 462 344,855,499 $3,235,181 $7.22 100.0 Total (Average ) 1919 1918 1914 154 154 154 20,892,764 14,714,515 9,?28,220 1,457,504 1,084,125 693,552 6.98 7.37 7.52 96.7 102.1 104.2 Total (Average) 129 5,590,553 212,119 5.91 i 61.9 Under ^0 1919 1918 1914 14 42 73 428,714 1,256,795 1,905,044 19,303 71,393 121,423 4.50 5.68 6.37 62.3 78.7 88.2 1 Total (Average) 172 9,775,007 636,559 6.51 90.2 i $40 to |eo 1919 1918 1914 57 63 52 3,222,468 3,662,794 2,889,745 177,277 240,074 219,003 5.50 6.55 7.58 76.2 90.7 105.0 : 1 1 Total (Average ) 117 13,695,639 993, 697 7.26 100.6 j 180 to ^180 1919 1918 1914 58 35 24 6,866,815 4,090,203 2,738,621 492,942 291,057 209.698 7.18 7.12 7.66 99.4 98,6 106.1 ; Total (Average) 44 17,774,300 1,393,006 7.84 108.6 1919 1918 1914 25 14 5 10,374,767 5,704,725 1,694,810 767,982 481,601 143,423 7.40 8.44 8.46 102.5 116.9 117.2 1180 & over : Average |7.22 cent. The corresponding increases in wages and salaries in both years when compared with 1914 were 43.2 and 88.6 per cent, respectively. That is, the increases in wages and salaries were less than were those in sales. Accordingly, when the amounts of wages and salaries are expressed in terms of sales they decreased 4.2 per cent, between 1914 and 1918, and 10.0 per cent, between 1914 and 1919. The 39 stores located in the larger 190 cities increased their sales between 1914 and 1918 by 70.3 per cent, and between 1918 and 1919 by 144.6 per cent. The wages and salaries in these same stores increased between 1914 and 1918 by 68,9 per cent., and be- tween 1914 and 1919 by 130.8 per cent. That is, the percentage increases are less in wages and salaries than in sales for both 1918 and 1919 as com- pared with 1914. If the amounts of wages and salaries are expressed in TABLE 123 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OP WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE, 1919, 1918, AND 1914 Classified Total Net Sales Years Ntimber of Strore- yeara Total Selling Expense Total V/ages & Salaries Wages and Salaries per $100 of Selling Expense Arao-ont Per Cent. (m 000' s) Graphic . ^ , Actual 20 40 60 80 100 120 Total (Average) 462 $4,851,112 $3,235,181 $66.69 100.0 Total 1919 1918 1914 154 154 154 2,182,027 1,609,671 1,059,414 1,457,504 1,084,125 693,552 66.80 67.35 65.47 no .2 101.0 98.2 (Averaee) ; 1 Total (Average ) 129 304,954 212,119 69.56 104.3 Oader ^0 1919 1918 1914 14 42 73 29,018 101, 621 174,315 19,303 71,393 121,423 66.52 70.25 69.66 99.7 105.3 104.5 1 1 Total (Average) 172 913,357 636,359 69.67 104.5 $40 to $80 1919 1918 1914 57 63 52 246, 207 345,293 321,857 177,277 240,074 219,008 72.00 69.53 68.05 108.0 104.3 102.0 1 1 Total (Average ) 117 1,491,801 993,697 66.61 99.9 t $eo to $180 1919 1918 1914 58 35 24 719,436 445,138 327,227 492,942 291,057 209,698 68.52 65.39 64.08 102.7 98.1 96.1 ! i Total (Average ) 44 2,141,000 1,393,006 65.05 97.6 i $180 & over' 1919 1913 1914 25 14 5 1,187,366 717,619 236,015 767,932 481, 601 143,423 64.58 67.11 60.77 97.0 100.6 91.1 Average $66.69 191 terms of sales, they decreased between 1914 and 1918 by 0.8 per cent., and between 1914 and 1919 by 5.7 per cent. The wages and salaries in terms of sales for the stores in the small, and for those in the large cities decreased in each of the years 1918 and 1919 as compared with 1914. The decrease was smaller, however, for the stores in the large, than for those in the small cities, notwithstanding the fact that the percentage increases in sales for the stores in the large cities for each of the years 1918 and 1919, as compared with 1914, exceeded those for the stores in the small cities by 20.9 and 35.2 per cent., respectively. The compensating feature is the rela- tively smaller increase in wages and salaries in the stores in the small cities. The net result is as stated ; the stores in the small cities decreased their wages and salaries in terms of sales more than those in the large cities. A comparison similar to that in Table 124 is presented in Table 125. The 115 stores in the small cities in- creased their selling expense in 1918 over 1914 by 40.8 per cent., and in 1919 over 1914 by 85.4 per cent. The corresponding percentage increases for wages and salaries were, respec- tively, 43.2 and 88.6. When the amounts of wages and salaries attrib- utable to selling are expressed in terms of selling expense, they are found to have increased between 1914 and 1918, and between 1914 and 1919 by 1.7 per cent. The 39 stores in the large cities in- creased their selling expense betw'een 1914 and 1918 by 61.3 per cent., and between 1914 and 1919 by 123.2 per cent. Simultaneously, they increased their wages and salaries in 1918 over 1914 by 68.9 per cent., and in 1919 TABLE 124 RELATION OP WASES AND SALARIES TO TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 Slza of City (in OOO's) Years IKmbor of Stores Bet Balsa Bages and Salaries Total Average Amount per Store Total Average Amount per Store Por $100 of Total Net Sales Amount Per Cent. Increase over 1914 Amount Per Cent. Increase over 1914 Amount Per Cent. Decrease from 1914 Total (Avcrago) 1919 19ia 1914 154 154 154 $20,092,764 14,714,515 9,228,220 $135, 667 95,549 59,924 126.4 59.5 $1,457,504 1,084,125 693,552 $9,464 7,040 4,504 UO.l 56.3 $6.98 7.37 7.52 7.2 2.0 UniJor 40 1919 1918 1914 115 115 115 10,005,585 7,156,283 4,777,138 87,005 62,055 41,540 109.4 49.4 640,451 486,175 339,596 5,569 4,228 2,953 88.6 43.2 6.40 6.81 7.11 10.0 4.2 40 &nd o»or 1919 1918 1914 59 39 59 10,887,179 7,578,232 4,451,082 279,158 194,314 114,130 144.6 70.5 817,053 597,949 355,956 20,950 15,332 9,076 150,8 68.9 7.50 7.89 7.95 5.7 o.e 192 over 1914 by 130.8 per cent. That is, wages and salaries in both years in- creased more rapidly than did selling expense. The consequence is that when amounts of wages and salaries are expressed per $100 of selling expense, they increased between 1914 and 1918 by 4.7 per cent., and be- tween 1918 and 1919 by 3.4 per cent. As is shown in Table 124, the stores in the small cities were at an advan- tage over those in the large cities in the amounts of wages and salaries paid when they are expressed in terms of total net sales. An inverse condi- tion is found, as shown in Table 125, when the amounts of wages and sal- aries are expressed in terms of selling expense. The same 154 stores are classified by size of city in which they are located and by years in Tables 126 and 127. Table 126 shows the amounts of wages and salaries per $100 of total net sales for stores in each city-group in each of the years. For the 115 stores in the small cities, the amounts decreased between 1914 and 1918, and 1918 and 1919. Similarly, the amounts for the 39 stores in the large cities decreased from year to year. The average amount of wages and salaries per $100 of total net sales for the 345 store-years for stores located in small cities is $6.69, or 92.7 per cent, of the average for all stores ; for the 117 store-years for stores in the large cities it is $7.72, or 106.9 per cent, of the average. Corresponding differ- ences between the stores in the small and in the large cities are found for each year. In Table 127 the stores are classified as in Table 126, but the amounts of wages and salaries are expressed per $100 of selling expense. The average TABLE 125 RELATION OF WAGES AND SALARIES TO SELLING EXPENSE FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 size of (In OOO'd) Selling Expense iVages and Salaries Yearo Number of Stores Total Average Amount per Store Total Average Ano'.mt per Store Per C Selling 100 of Expense AmoTjnt Per Cent, Increase Amount Per Cent. Increase Amount Per Cent. Increase over 1914 over 1914 over 1914 1919 154 J2, 189,027 tl4,ie9 106.0 Si, 457, 504 59,464 110.1 $66.80 2.0 Total (Average) 1918 154 1,609,671 10,452 51.9 1,084,125 7,040 56.3 67.35 2.9 1914 154 1,059,414 6,879 693, 552 4,504 65.47 1919 115 896,863 7,799 85.4 640,451 5,569 88.6 71.41 1.7 Under 40 1913 lis 680,787 5,920 40.8 486,176 4,228 43.2 71.41 1.7 1914 115 463,712 4,206 339,596 2,953 70.21 1919 39 1,265,164 32,953 123.2 817,053 20, 950 130.8 63.58 3.4 40 and over 1918 39 928,884 23,818 61.3 597,949 15,332 68.9 64.37 4.7 1914 39 575,702 14,762 353,956 9,076 61.48 193 amount for the 345 store-years, for the stores in the small cities, is $71.13, for the 117 store-years, for the stores located in the large cities, it is $63.41. That is, the amount for the stores in the small cities is 106.7 per cent., and for those in the large cities, 95.1 per cent, of the average for all stores. Similar differences for the stores in the different cities occur in each of the different years. In 1919, for in- stance, the average amount for the 115 stores in the small cities was $71.41, and for the 39 stores in the large cities, $63.58. From Tables 124 to 127, inclusive, it may be concluded first, that total net sales and wages and salaries for the stores when classified by location increased between 1914 and 1918 and between 1914 and 1919. Second, the amounts of wages and salaries per $100 of total net sales decreased be- tween 1914 and 1918, and 1914 and 1919, the decrease being noticeably larger for the stores in the small than for those in the large cities. Third, amounts of selling expense and of wages and salaries increased between 1914 and 1918, and 1914 and 1919 for TABLE 126 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 Years Number of Store- years Total Net Sales Total Wages & Salaries Wages and Salaries per $100 of Total Hot Sales Size of Amoiint Per Cent. City (In OOO'b) Graphic Actual 3 20 40 60 80 100 120 Total (Average) 462 §44,835,499 $3,235,181 |7.22 100.0 j 1919 1918 1914 154 154 154 20,892,764 14,714,515 9,228,220 1,457,504 1,084,125 693,552 6.98 7.37 7.52 96.7 102.1 104.2 (Average) 1 i Total (Average) 345 21,919,006 1,466,223 6.69 92.7 1 1919 1818 1914 115 115 115 10,005,585 7,136,283 4,777,138 340,451 486,176 339,596 6.40 6.81 7.11 88.6 94.3 40 ; Total (Average) 117 22,916,493 1,768,958 7.72 106.9 1919 1918 1914 39 39 39 10,887,179 7,578,232 4,451,082 817,053 597,949 353,956 7.50 7.89 7.95 103.9 109.3 110.1 over Averaee ^7.22 194 TABLE 127 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 Size of City Years Number of Store- years Total Selling Expense Total Wages & Salaries V/acea and Salaries per §100 of Selling Expense Amoxmt Per Cent. (In 000' 3) Graphic ^^t,^^ 5 20 40 60 80 100 120 Total (Average ) 462 $4,351,112 53,235,181 §66.69 100.0 1 1919 1913 1314 154 154 154 2,132,027 1,609,671 1,059,414 1,457,504 1,084,125 693,552 66.30 67.35 65.47 100.2 101.0 93.2 Total (Average ) Total (Average ) 345 2,061,362 1,466,223 71.13 106.7 I 1919 1913 1914 115 115 115 896,863 630,787 483,712 640,451 486,176 339,596 71.41 71.41 70.21 107.1 107.1 105.3 XTnder 40 ^^^^ 1 Total (Average) 117 2,739,750 1,768,953 63.41 95.1 ; 1919 1913 1914 39 39 39 1,235,164 923,384 575,702 817,053 597,949 333,956 63.53 64.37 61.43 95.3 96.5 92.2 40 and ■ ; Averaso 166.69 the groups of stores when classified by location. Fourth, the amounts of wages and salaries per $100 of selling expense increased for the two groups of stores between 1914 and 1918, and 1914 and 1919, the percentage of in- crease being larger for the stores in the large than for those in the small cities. Fifth, the amounts of wages and salaries per $100 of total net sales are less in the combined and in the individual years for the stores in the small, than for those in the large cities. Sixth, the amounts of wages and salaries per $100 of selling ex- pense are less for the combined and individual years for the stores in the large cities than for those in the small cities. D. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size and by Size of City in Which Located* 1919, 1918, and 1914. In Tables 128 to 131, inclusive, the amounts of wages and salaries per $100 of total net sales are shown for * Population figures are for 1920. 195 the combined and individual years for 154 stores classified by location and by size. Table 128 refers to the combined years and Tables 129 to 131, respectively, to the years 1919, 1918, and 1914. The average amounts of wages and salaries per $100 of total net sales for the 462 store-years is $7.22. When the stores are classified by size, no ac- count being taken of location, the amounts increase as the stores in- crease in size, the minimum — $5.91 — characterizing the stores with smallest, and the maximum — $7.84 — character- izing those with largest sales. In 1919 the average was $6.98. For the stores with the smallest sales it was $4.50 and for those with the largest sales, $7.40. It is unnecessary to mention the actual amounts for 1918 and 1914. The details for each of the years are contained in the total sections of the tables mentioned. When the stores are classified by location for the combined and indi- TABLE 128 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919, 1918, AND 1914 COMBINED SI to Classified Total Net bales (in 000' a) Humbcr of St ore - years Total Net Sales Total V/ages k Salaries Wages and Salaries per $100 of Total Het Sales of City (m 000' a} Amount < Per Cent. Graphic Actual 3 20 40 60 80 100 120 Total (Average ) 462 §44,835,499 $3,255,181 $7.22 100.0 Under $40 frtO to $80 |80 to {180 $180 & over 129 172 117 41 3,590,553 9,775,007 13,695,639 17,774,300 212,119 636,359 993,697 1,393,006 5.91 6.51 7.26 7.84 81.9 90.2 100.6 108.6 Total (Average) Total (Averape ) ■^'■b 21,919,006 1,466,223 6.69 92.7 ! Under $40 • $40 to $80 $80 to $180 $180 & over 121 138 77 9 3,317,338 7,650,532 8,832,022 2,119,114 189,920 481,917 628,311 166,075 5.73 6.30 7.11 7.84 79.4 87.5 ,96.5 108.6 under 40 ; Total (Average ) 117 22,916,493 1,768,958 7.72 106.9 1 Under §40 $40 to 5S0 $8* to $lCa ■ $180 t: over 8 34 40 35 273,215 2,024,475 4,963,617 15,665,186 22,109 154,442 365,386 1,226,931 8.13 7.63 7.36 7.84 112.6 105.7 101.9 108.6 40 and ^: Aver ago $7.22 196 vidual years, a somewhat different condition is observed. For the com- bined years, the average amount of wages and salaries per $100 of total net sales for the 345 store-years for the stores in the small cities is $6.69, and for the 117 store-years for the stores in the large cities, $7.72. That is, the average amount for the stores in the small cities is 92.7 per cent., and for the stores in the large cities it is 106.9 per cent, of the average for all stores. The differences in the amounts for stores in the two groups of cities, treated as a total, are also characteristic of the stores differently located but of the same size. For the combined years, the average amount for the smallest stores located in the small cities is $5.73. The correspond- ing amount for the stores in the large cities is $8.13. For the stores with annual sales of $40,000 to $80,000 and located in the small cities, it is $6.30; for those of the same size but located in the large cities, it is $7.63. TABLE 129 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919 Size Claaslfled Total Het Salee (In 000*8) Nimber of Stores Total Het Sales Total Tiages & Salaries Wages ar.u Salaries per OlOO of Total liet Sales of City 20 40 60 80 100 120 l40 Total (Average) 447 $43,599,972 $16,369,406 137.54 100.0 Total Under $A e4 to J8 ^ 8; over 95 227 125 5,689,635 24,298,967 13,611,350 2,268,589 9,067,776 5,033,041 39.87 37.31 36.98 106.2 99.4 98.5 (Average ) 1 1 Total (Average ) 149 20,303,641 6,567,056 32.84 87.5 i 1919 Dhder $4 54 to $8 $8 & over 42 71 35 3,504,985 11,248,575 5,550,081 1,237,010 5,679,392 1,750,654 35.29 32.71 31.54 94.0 87.1 64.0 ! Total (Average ) 149 14, 322, 667 5,804,340 40.53 108.0 1908 Unaer $4 t4 to J8 53 i over 34 70 45 1,594,006 8,149,100 4,579,553 736,259 3,311,650 1,756,431 46.19 40.54 38.35 123.0 108.3 102.2 Total (Average ) 149 8,973,664 3,898,010 43.44 115.7 1914 Under ^ ^ to $8 Sa & over 19 86 44 590,544 4,901,304 3,401,716 295, 320 2,076,734 1,525,956 50.00 42.37 43.83 133.2 112.9 116.8 Average 337.54 207 TABLE 138 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNTS OF WAGES AND SALu^RIES PER $100 OF SELLING EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF INVENTORY PER $100 OF TOT.VL NET SALES, 1919, 1918, AND 1914 Amount of Inventory per (100 of Dotal Ket Sales Number of Store- years Total Selling Expense Total Wages k Salaries Wages and Salaries per (100 of Selling Expense YsaW Aacunt Per Cent. Graphic Aet,^ ) 20 40 60 60 100 120 Total (Average) 447 (4,745,829 (5, 174, 021 (66.83 100.0 Uhder (20 t20 to (40 $40 to (60 (60 8: over 14 168 177 88 172,900 3,088,085 1,128,967 555,877 107,920 2,066,831 764,274 244,996 62.42 6e.93 66.81 68.84 95.5 100.1 99.9 102.9 Total (Average ) Total (Average ) 149 2,135^072 1,430,061 66.98 100.1 rnder (20 (20 to (40 (40 to (60 (60 8c over 7 83 51 8 105,711 1,649,518 545,965 55,878 64,927 1,111,412 230,646 23,076 61.42 67.38 6«.67 68.12 91.8 100.7 99.7 101.9 1919 Total (Average) 149 1,573,249 1,062,031 67.51 100.9 Onder (20 iZO to (40 t40 to (60 (60 & over S 46 60 40 52,117 937,441 427,462 176,229 20,714 644,437 275,422 121,468 64.50 68.74 64.43 68.92 96.4 102.8 96.3 103.1 1918 Total (Average) 149 1,037,508 681,929 66.73 98.3 : Under (20 (20 to (40 (40 to (60 (60 !t over 4 59 66 40 55,072 501, 126 555,540 145,770 22,279 510,982 248,206 100,462 63.52 62.06 69.81 68.92 95.0 92,8 104.4 103.1 1914 Average $66.88 crease in inventories in relation to sales is uncertain. It is of interest to observe, however, that in the years under consideration, the smallest amount of wages and salaries per $100 of selling expense was less than the average by 8.2 per cent., and the largest amount greater than the average by 4.4 per cent. That is, a remarkable degree of uniformity characterizes the amounts for all groups of stores in the different years. Similar uniformity in the amounts of wages and salaries per $100 of 208 TABLE 139 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OP TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED . , ibnount of Inventory per §100 of Total K«t Sales Nxantier of Stoi*e- yoara Total Net Sales Total Wages & Calaries V/ages and Salaries per JlOO of Total Net Sales Total Net Sales For Cent. (In OOO'a) Amount Graphic Actual 20 40 00 CO 100 120 Total (Average) 447 §43,599,972 §3,174,021 37.28 Under §20 §20 to §40 §40 to §60 §60 4 over 14 168 177 as 2,059,425 26,478,436 11,263,282 5,798,829 107,920 2,066,831 754,274 244,996 5.24 7.81 6.70 6.45 Total (Averagej Total (Average ) 127 3,532,911 208,053 5.89 — Under $40 Under §20 ^0 to §40 $40 to §60 f 60 k over 1 18 52 56 28,933 560,460 1,412,525 I, 530, 993 720 53,972 75,000 96,361 2.49 6.06 5.31 6.43 34.2 83.2 72.9 88.3 Total (Average ) 165 9,560,348 616, 677 6.59 90.5 tbder §20 $20 to §40 $40 to §60 §60 t over 6 52 82 ^ ■ 86 402,009 3,083,049 4,458,869 1,416,421 20,502 187,969 509,459 98,767 5.10 6.10 6.94 6.97 70.1 83.8 95.3 95.7 *4o to iao Total (Avarago ) 112 13,121,494 963,555 7.34 100.8 "Under $20 fiSO to §40 §40 to 560 §60 & over 5 60 40 7 1 555,107 7,076,841 4,638,131 851,415 58,199 563,284 514,184 47,868 6.88 7.96 6.77 5.62 94.5 109.3 93.0 $80 to §180 Total (Average) 43 17,585,219 1,385,756 7.88 108.2 §180 »i over Under $20 §20 to §40 §4a to §60 §60 & over 2 38 9 1,073,375 15,758,086 753,757 48,499 1,281,606 65,651 4.52 8.13 7.38 62.1 111.7 101.4 Average J7.2a 209 total expense was found to charac- terize the stores treated in Volume II * of the Bureau's study of Costs, Mer- chandising Practices, Advertising and Sales in the Eetail Distributian of Clothin-g. "Wages and salaries," as there used, included all forms of com- pensation paid, and "total expense" included all operating expenses. In Table 138, "wages and salaries" in- cludes only the compensation paid to those who are involved in selling, and "selling expense" is used in the sense defined on page 34. What is being stressed now is the uniformity in the amounts of wages and salaries when measured in terms of two separate standards. From Tables 136 to 138, inclusive, it may be concluded: First, that the amounts of wages and salaries per $100 of total net sales in the years 1919, 1918, and 1914, combined and individually, for stores having inven- tories, similarly measured, of $20 and over, decrease as the amounts of inventory per $100 of total net sales increase. Second, the amounts of wages and salaries per $100 of total net sales decreased from 1914 to 1918, and 1918 to 1919. Third, the amounts of inventory per $100 of total net sales, in the individual and in the combined years, decrease as the amounts of wages and salaries (in terms of sales) increase. Fourth, the amounts of inventory per $100 of total net sales decreased between 1914 and 1018, and 1918 and 1919. Fifth, the amounts of wages and salaries per $100 of selling expense increased be- • Pages 157 to 164. tween 1914 and 1918, and decreased between 1918 and 1919. Sixth, for the combined years the amounts of wages and salaries per $100 of selling expense roughly tend to increase as the amounts of inventories increase. For the individual years the ten- dencies to decrease or to increase are uncertain. B. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified hy Size, 1919, 1918, and 1914. In Tables 139 to 142, inclusive, the 149 stores which are being considered are classified for the combined and for the individual years by size and by the amounts of inventory in rela- tion to their sales. For each group the average amount of wages and salaries paid by stores to their selling force has been computed in terms of sales. In 1919 it cost in wages and salaries $7.04 to sell $100 worth of goods. For the stores with sales under $40,- 000, the cost was $4.50 ; for those with sales of $40,000 to $80,000 it was $5.54; for those with sales of $80,000 to $180,000 it was $7.25; and for those with sales of $180,000 and over it was $7.47. That is, the amounts increase as the stores increase in size. When the stores are classified, as in Table 140, by the amounts of in- ventory per $100 of total net sales, increases, with few exceptions, are found to characterize stores of in- creasing size, but with similar inven- tories in relation to sales. In some of 210 TABLE 140 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OP WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SiVLES, 1919 CXaaalflod Amoxmt of Inventory per $100 of Total Nat Sales Number of Stores Total Net Sales Total V7ages & Salaries V/agoa and Salaries per $100 of Total Net Salep Total Net Sales (In coo's) Amoiint Per Cent. Graphl a Actual 20 40 60 80 100 120 Total (Average ) 149 $20,303,641 $1,430,061 $7.04 nhder $20 $20 to $40 $40 to $60 $60 & over 7 85 SI 8 1.208,113 15,018,367 3,628,138 448,963 64,927 1,111,112 230,64(= 27,076 5.37 7.40 6.36 5.14 76.3 105 J. Total (Average ) 73.0 Total (Average ) tftider $20 $20 to $40 $40 to $60 $60 3e over 14 428,714 19,303 4.50 63.9 Ohder $40 2 8 4 68,054 244,012 116, 643 2,640 10,750 5,913 3.38 4.41 5.07 55.1 62.6 Total (Average) 55 3,082,152 170,682 5.54 78.7 $40 to $80 Dhaer $20 tf20 to $40 $40 to $60 $60 5t over 2 22 28 3 150,276 1,237,723 1,472,999 171,154 5,875 65,760 91,847 7,200 3.91 5.11 6.24 4.21 55.5 72.6 88.6 59.8 Total (Average) 56 6,607,039 479,344 7.25 103.0 tTnder $20 $20 to $40 $40 to $60 $60 2c over 4 37 14 1 384,466 4,382,153 1, 679, 299 161,166 26,569 326, 696 116,116 9,963 6.91 7.46 6.91 6.18 98.2 105.0 98.2 87.8 $80 to $180 '; Total (Average ) 24 10,185,686 760,732 7.47 105.1 $180 & over Under $20 $20 to $40 $40 to $60 $50 & over 1 23 1 673, 376 9,280,432 231,378 32, 483 716,316 11,933 4.82 68.5 109.7 73.2 5.15 Average $7.04 211 the groups the number of stores is so small, when they are classified in this form, as to make direction of change uncertain. The irregularities in the amounts, however, are for the most part removed when the three years are combined as in Table 139. More- over, the tendency for the amounts to increase is more regular in 1919 when a larger group of stores is used as in Table 144. The amounts of wages and salaries TABLE 141 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 Anount of Inventory per $100 of Total Hot Sales number of Stores Total net Sales Total Wages & Salaries Wages and Salaries per $100 of Total Net Sales Total Net Sales (In 000' e) Amount C Per Cent; '^•''P"' 1 Actual 20 40 60 60 100 120 140 Total (Average) Under |20 $20 to t40 t40 to $60 |60 t over 149 $14,322,667 $1,062,031 $7.42 100.0 i Total (Average ) 5 46 60 40 530,649 7,517,748 4,389,893 1,884,377 20,714 644, 437 275,422 121,458 3.90 8.57 6.28 6.45 52.6 115.5 84.6 86.9 Total (Average ) 42 1,256,795 71,393 5.68 ' 76.5 1 Ttader $40 Older $20 |e0 to $40 $40 to $60 $60 Jt over 6 13 23 209,528 581,fc73 665,594 9,878 17,855 43,660 4.71 4.ee 6.56 63.5 63.1 88.4 Total (Average ) 60 3,501,019 231,207 6.60 89.1 I #40 to tso Under $20 $20 to $40 $40 to $60 $60 It over 2 15 29 14 130,649 901,852 1,632,061 836, 457 4,698 67,991 98^40 60,578 3.60 7.54 6.01 7.22 . 48.5 101.6 81.0 97.3 1 J i Total (Average ) 53 3,860,130 277,830 7.20 i tec to tl80 fodar $20 $20 to $40 $40 to $60 $60 & over 14 16 3 1,623,524 1,854,280 582, 326 144,701 US, 709 17,420 8.91 6.24 4.56 120.1 t i ! 61.5 Total (Average) 14 6,704,723 481,601 8.44 ^.Mi flBO k over Under $20 $20 to $40 $40 to $60 $60 i over 1 U 2 400,000 4,782,844 621,879 16,016 421,867 49,7ia 4.0O 6.82 e.38 53.9 118.9 112.9 i Averago |7.48 212 TABLE 142 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 Classified Total Het Sales (In 000' 8) Amount of Inventory per 5 100 of Total Net Sales Number of Stores Total Net Sales Total Wages & Salaries Wages and Salaries per $100 of Total Het Sales Amoxtnt Per Cent. Graphic . ^ . ^ Actual 3 20 40 60 80 100 120 Total (Average ) 149 $8,973,664 $681,929 $7,60 100.0 Under $20 $20 to $40 $40 to $60 $60 i over 4 39 66 40 320, 658 3,942,321 3,845,201 1,465,484 22,279 310,982 248,206 100, 462 6.95 7.89 7.65 6.86 91.4 103.8 100.7 90.5 Total (Average ) Total (Average ) 71 1,847,402 117,557 6.55 83.6 — Under $40 Under $20 $20 to $40 $40 to $60 $60 & over 1 10 ?1 29 28,935 282,878 786,840 748,751 720 21,454 46,395 48,788 2.49 7.58 5.90 6.52 32.8 99.7 77.6 85.8 Total (Average ) 50 2,777*177 214,788 7.73 101.7 tfader $20 $20 to $40 $40 to $60 $60 S: over 2 15 25 8 121,084 893,474 1,553,809 408,810 9,929 54,218 119,452 31,189 8.20 6.07 8.82 7.63 107.9 79.9 116.1 100.4 $40 to $80 Total (Average ) 25 2,654,275 206,361 7.77 102.2 Older $Sa $20 to $40 $40 to $60 $60 & oTor 1 9 10 S 170,641 1,071,159 1,104,552 507,923 11,630 91,887 82,359 20,485 6.82 8.58 7.46 6.65 89.7 112.9 98.2 87.5 $80 to $180 ; ; 1 Total (Average) S 1,694,810 143,423 8.46 111.3 $160 k over Itader $20 $20 to $40 $40 to $60 $60 & over 5 1,694,810 143,423 8.46 lll.S ; Average $7*60 213 per $100 of total net sales, however, in which we are most interested, are those for stores of essentially the same size, but with different amounts of inventory in relation to sales. These amounts are found in Tables 139 to 1-42, inclusive. "Within each group, when the stores are classified by size and by amounts of inventory in rela- tion to sales, there seems to be no general tendency for the amounts of wages and salaries per $100 of total TABLE 143 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER AMOUNT SOLD PER $1 OF INVENTORY, FOR STORES CLASSIFIED BY SIZE AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET S.VLES, 1919, 1918, AND 1914 Claaelfied Total Bst Sales (In 000' 8) A&OljLCt of Invactory por $100 of Total Uet e&lea Aitintmt of Wages and Salaries per $100 of Total Net Sales per Amount Sold per $1 of Inventory Qraphle Qraptio Oraphlo Actual . Actual .1 . Actual J .1 Aet-ial .... jjO \Z ^ |6 »p I? $;; $ 3 $0 »g , U i^ to f 2 »4 ip Total (Aierage) Obter 140 $40 to tao teo to |160 Total (Avera.'^) $2.74 Under $20 $20 to ^0 $40 to $60 $S0 i over Total (Average ) Oodar $20 $20 ts $40 $40 to $60 $60 t over Total (Average ) IToder $20 $20 to itO $10 to $eo $80 8: OTor Total (Average! Under $20 $20 to $40 $40 to $30 $60 & over $180 k over Total (Average) Under $20 $20 fo $40 $40 to $60 $60 & over 0.92 2.M 4.52 5.31 0.44 1.82 2.66 4.50 3.00 0.89 1.83 3.47 4. eg 3.3) 3.93 :.ci 0.79 2.44 5.69 $2.51 Avorage $2.T4 0.94 2.22 3.18 3.60 1.16 2.21 5.55 2.30 0.68 1.53 3.12 e.95 2.60 1.21 2.24 5.46 4.33 2.06 0.84 2.32 2.58 Avaraso $2.51 $3.00 0.68 2.57 3.14 4.52 1.41 2.34 4.59 5.27 0.53 2.26 5.01 S.OS 2.67 3.12 3.19 2.36 0.70 2.55 4.19 Average $3.00 $3.30 1.22 2.37 3.33 4.80 3.57 2.27 2.95 4.56 3.47 1.44 i.sa 4.41 5.34 3.17 1.19 2.57 5.73 4.66 £r.-iras9 $3.30 214 net sales to increase or to decrease as the amounts of inventory per $100 of total net sales increase. In some groups, if the details for the combined years are taken as an illustration, the amounts decrease, while in others they increase. In view of this fact, it would be unsafe to generalize for all of the store-groups. The amounts, however, are of sufficient interest to warrant publication. Table 143 shows what it cost in wages and salaries per $100 of total net sales to sell the actual amounts sold per $1 of inventory * in 149 stores classified by size and amount of inventory in terms of sales. By using this more detailed unit, the un- certain direction of change for wages and salaries is eliminated. For the stores as grouped, the amounts become larger as the size of the inventory in relation to sales increases. Such a con- dition for selling expense was observed * The method by which this unit is com- puted is explained on page 4, item 17. TABLE 144 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- OVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OP INVENTORY PER $100 OP TOTAL NET SALES, 1919 Classiried Amount of Inventory per $100 of Total Het S&les Hmnber of Storea nages and Salaries ner $100 Total Het Sales of Wages and Salar' 03 per vlOO of Total Net per Stool: Turnover Sales Total Net Sales (In OOO'a) Anoust Per Gent. Ajmsunt Fer Cent. Graphlo 3 20 40 60 " CO 100 120 Actual Or»P>il<' 1 Actual 3 20 40 60 80 100 120 140 160 J30 Total (Avorago) 282 $6.67 100.0 $3.03 100.0 i^ Dndar $20 $20 ta $40 $40 4 over 17 155 112 5.64 7.05 6.07- 64.6 105.7 91.0 1.28 2.94 4.34 42.2 (Average ) 143.2 Total (Average) 53 4.26 63.9 2.84 93.7 ttider 440 Onder $20 $20 to $40 $40 t over 10 23 3.46 4.64 — S1.9 69.6 1.65 3.57 — 54.6 Total (Average ) lOS 5.36 80.4 2.98 — $40 te $80 Under $20 $20 to $40 $40 k over 3 45 58 3.56 4.93 5.84 53.4 75.9 87.6 0.85 2.24 5.89 28.1 73.9 1 Total (Average ) 98 6.85 102.7 3.61 Under $20 $20 to $40 »40 4 over S 63 50 6.74 6.99 6.59 101.0 104.8 98.8 1.60 3.18 4.39 ■^" $80 to $180 i Total (Average ) 45 7.15 107.2 2.55 — Under 520 $20 to $40 $40 i over 9 55 1 5.63 7.56 5.15 84.4 113.6 77.2 1.25 2.92 4.29 $180 k over ^^^^"^^ • 141.6 Average 06.67 Average 03*09 215 in the discussion of Table 27 and it ■would naturally follow for wages and salaries, similarly measured, in view of the proportion which they consti- tute of total selling expense. Table 143 should be considered in connec- tion with Tables 139 to 142, inclusive. In Table 144, the records of 282 stores are studied for 1919, when the stores are classified by size and by the amounts of inventory per $100 of total net sales. In view of the fore- going discussion, it is unnecessary to consider further the amounts of wages and salaries per $100 of total net sales for the stores as classified. One sec- tion of this table, however, is of interest. The right-hand columns TABLE 145 TOTAL NET SALES, IN\'ENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED Classified Total Net Sales (in 000' 8) Amount or Wages U Salaries per SlOO of Total Met SalQS Storo- yaars Total Net Sales Inventory per $100 of Total Net Sales Total Inventory Qraphlo I SO 40 60 80 100 120 140 160 Total (Average ) $43,599,972 $16,369,406 Total (Average ) Uhdsr %\ ^ to Ja $8 !c over 227 125 5,689,635 24,298,987 13,6U,350 2,268,589 9,067,776 5,033,041 Total (Average ) 3,532,911 1,989,518 Cbder (40 Under $4 $4 to $8 $8 fc over 954,235 1,804,605 774,073 502,665 1,034,030 462,823 Total (Average ) 9,360,348 4,254,795 |40 to tBO Under $4 $4 to $3 |8 & over 2,315,545 4,305,648 2,738,155 947,850 2,021,129 1,285,816 Total (Average) 13,121,494 5,193,131 ^0 to (ISO Under 54 $4 to $3 $8 & over 1,637,290 6,151,092 5,333,112 631,181 2,622,806 1,939,144 Total (Average ) 17,585,219 4,931,962 flBO & over Under $4 $4 to $8 ^ & over 779, 567 12,039,642 4,766,010 186,893 3,399,811 1,345,258 §37.54 39.87 57.32 36.98 56.31 52.68 56.74 59.79 45.46 40.88 46.96 46.96 39.58 38.55 42.64 36.36 28.05 23.97 28.24 20.23 «■ A-verage (37. 64 100.0 106.2 99.4 98.5 150.0 140.5 isia 1S9.3 121.1 108.9 125.1 125.x 105.4 102.7 U3.6 96.9 74.7 63.9 75.2 75.a 216 TABLE 146 TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, 1919 Amount of Wages Jc Salaries per $100 of • Total Net Sales Number of Stores Total Net Sales Total Inventory Inventory per $100 of Total Nat Sales Total Net Sales (In OOO's) Amount Per Cent. Oraphle . ^ . Actual 3 20 40 60 80 100 120 140 160 180 200 Total (Average ) 149 SS0,303,641 $6,667,056 $32.84 Total Under $4 S4 to J8 $8 S: over 42 71 36 3,504,985 11,248,575 5,550,081 1,237,010 3,679,392 1,750,654 55.29 32.71 31.54 (Average ) 107.5 i Total (Average) 14 • 428,714 215,607 50.29 153.1 : ttider $40 Under $4 $4 to Se $8 & over 5 8 1 144,225 248,945 35,544 64,511 128,272 22,824 44.73 51.53 64.21 ' 156.9 195.5 Total (Average ) 55 5,082,152 1,280,953 41.56 126,6 ^ to $80 Under $4 »4 to $8 {8 & over 22 23 10 1,226,685 1,324,685 530,782 481, 117 576,055 223,781 i 132.4 128.4 42.16 Total (Average ) 56 6,607,089 2,366,933 35.82 1 109.1 tao to liso Under J4 $4 to $8 tS U over 13 25 20 1,354,508 2,850,532 2,402,049 504,489 1,055,864 805,580 113.4 112.8 102.3 Total (Average ) 24 10,185,686 2,803,563 #180 Se over Under $4 «4 to «8 t8 ic over 2 17 5 779,567 6,824,413 2,581.706 186,893 1,919,201 697,469 23.97 73.0 27.02 82.3 show, for different groups of stores, the amounts of wages and salaries per $100 of total net sales per stock turn- over.* That is, wages and salaries are measured in terms of a unit of sales for a single turn. For this group of stores, as goods are sold, it cost in wages and salaries $6.67 to sell $100 worth of goods, * The method by which this unit is com- puted is explained on page 4, item 19. Average $32.84 while it cost in wages and salaries per stock turnover, $3.03 to sell $100 worth of goods. The amounts of wages and salaries required to sell $100 worth of goods increase as stores increase in size, but when they are expressed in terms of sales per turnover, they are essentially constant for the stores with sales under $80,000, increase for those with sales from $80,000 to $180,- 000 and noticeably decrease for those 217 with sales of $180,000 and over. While the expense, due to wages and salaries per $100 of total net sales in the stores with sales of $180,000 and over, is 170.2 per cent, of the average for all stores, the amount of wages and salaries per $100 of total net sales per stock turn is 84.2 per cent, of the average. For the stores as a whole and when classified by size, the amounts of wages and salaries per $100 of total net sales per stock turnover increase rapidly as the amounts of inventory per $100 of total net sales increase. The nature of the increase may be illustrated by selecting the 106 stores which had sales in 1919 of between $40,000 and $80,000. For the three stores which had inventories less than TABLE 147 TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, 1918 /Mount of V/aj;e3 & Ealcxles per JlOO of Total Net Sales Hujnber of Stores Total Net Sales Total Inventory Inventory per $100 of Total Net Sales Total Amount Per Cent. (m OCO's) Graphic 1 , .. , ' Actual 20 40 60 80 100 120 140 160 Total (Avertgg) 149 $14,322,667 $5,804,340 $40.53 ^^^^^! • fee or t4 14 to $3 te t over 34 70 45 1,594,006 8,149,108 4,579,553 736,259 3,311,650 1,756,431 46.19 40,64 38.35 114.0 Total (Average) ! Total (Averese) 42 1,256,795 734,523 58.44 1*4.2 tJnder 540 Under t-i §4 to J3 J3 !c over 15 17 10 420,124 502,214 334, 457 215,918 318,849 199,755 51.39 63.49 59.73 156.6 1 i Trtnl (Average) 60 3,501,019 1,729,460 49.40 121.9 $40 to ^0 Unier }4 C4 to CS $8 k over 16 25 19 891,100 1,418,558 1,191,361 393,549 743,552 592,259 44.13 52.42 49.71 ^\ 109.0 129.3 122.6 I Total (Avoi-Bce) M 5,860,130 1,741,562 45.12 111.3 1 ieo to $180 toser ?4 $4 to Co JS £c over 5 19 11 282,782 2,351,867 1,225,381 126,692 1,183,993 430,877 44.80 50.34 35.16 110.5 124.2 86.e 1 i t Iott.1 (AveiaE* ) 14 5,704,723 1,598,795 28.03 69.2 |iao U ovor UnCer t4 (4 to $8 Je tc over 9 e 3,876,369 1,828,354 1,065,256 533,539 27.48 29.13 67.a 72.0 Averene S40.53 218 TABLE 148 TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF WAGES AND SiVLARIES PER $100 OF TOTAL NET SALES, 1914 Amount of Waces k Salaries per $100 of Total Ket Sales number of Stores Total Met Sales Total Inventor? Inventory per flOO of Total Net Sales Total Net Sales Amount ( Per Cent. (in 000' 3 ) °^''P^^° Actual ) 20 40 60 80 100 120 140 Total (Average) 1-S9 C8, 973, 664 53,898,010 $43.44 100.0 Total Under $4 J4 to sa $8 & over 19 85 44 590,644 4,901,304 5,481,715 295,320 2,076,734 1,525,956 50.00 42.37 43.83 115.1 97.5 100.9 (Average ) Total (Average) 71 1,847,402 1,039,388 £6.26 i 129.5 Under }40 Under $4 |4 to 58 J8 & over 15 41 IS 369,884 1,053,446 404,072 222,236 576,909 240,243 57.00 54.75 59.46 131.2 126.1 136. 9 Total (Average ) 50 2,777,177 1,244,362 44.81 105.3 J40 to 880 Under 54 $4 to $8 $8 & over 4 27 19 200,760 1,560,405 1,016,012 73,084 701, 522 469,776 36.40 44.96 46.24 I 83.3 103.5 106.4 Total (Average ) 23 2,654,275 1,084,636 40.86 94.1 |80 to $180 Under t-i $4 to ^ |8 & over 14 9 948,593 1,705,682 382,949 701, 687 40.37 41.14 92,9 94.7 ; Total (Average) 5 1,694,810 529,604 31.25 71.9 i $180 & over Under 04 $4 to f8 §8 8: over 4 1 1,338,860 355,950 415,354 114,250 31.02 32.10 71.4 73.9 AveriiQe ^43. 44 $20, it cost in wages and salaries $3.56 to sell $100 worth of goods, but per turnover the expense was but $0.85. For those that had inventories between $20 and $40 per $100 of total net sales, it cost in wages and salaries for each $100 of total net sales, $4.93, but for each unit of sales per stock turnover, $2.24. Similarly, for the stores which had inventories of $40 and over, it cost $5.84 for each $100 of total net sales, but for $100 of sales per stock turnover the amount was $3.89. 219 TABLE 149 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OP WAGES AND SALARIES PEE $100 OF SELLING EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED Classiricd Total Vet Sales Amo>int of Invo.'itory per vlOO of Total Net Sal'es N'jjnber of Store- years Total Selling Expense Total Salaries Wages and Salaries per $100 of Selling Expense Anoimt Per Cent. 40 to $60 tfSO k ovor 6 S2 82 25 29,622 283,795 428,579 135,528 20,502 187, 969 309,439 98,767 69.21 66.23 72.20 72.88 103.5 440 to $80 ' 99.0 103.0 : Total (Average) 112 1,445,039 963,535 66.58 99.7 ; Under $20 $20 to $40 $40 to $60 $60 & over 5 60 40 7 53,399 802,575 499,659 89,396 38,199 563,204 314, 184 47,368 71.54 70.18 62.83 53.55 $80 to $ieo ; 104.9 ! 94.0 I 80.1 Total (Average) 43 2,125,045 1,385,755 55.21 97.5 I ; ^180 o; over Under $20 §20 to $40 $40 to $60 $60 2; ovor 2 38 3 88,931 1,947,679 88,435 48,499 1,281,506 55,551 54.54 65.30 62.93 81.5 98.4 1 94.1 J fivorr.;o 06&.Ba 220 The detail in Table 144 may be studied with profit by merchants who are interested in measuring the effect which turnover has on wages and salaries as a part of selling costs. Tables 145 to 148, inclusive, show the amounts of inventories per $100 of total net sales in the combined and individual years for stores classified by size and by the amounts of wages and salaries paid per $100 of total net sales. The purpose of these tables is to determine the average size of the inventories in terms of sales for stores paying different amounts of wages and salaries per $100 of total net sales. When no account is taken of store size, the inventories are lowest when the amounts of wages and salaries in terms of sales are highest. That is, an inverse relationship ob- tains. When size of store is con- sidered this relationship does not hold. Indeed, an inverse condition holds. That is, small inventories generally accompany small amounts of wages and salaries when both are expressed in sales. In each year the size of the inventories expressed in terms of sales varies inversely with the size of the store similarly ex- pressed. Tables 149 to 152, inclusive, show the amounts of wages and salaries per $100 of selling expense for each of the years for stores classified by size, and further by the amounts of inven- tories per $100 of total net sales. The total sections of these tables agree with the details of Table 138 and do not call for further comment. The remaining parts of the tables require brief consideration inasmuch as they show the amounts of wages and sal- aries per $100 of selling expense for stores classified by size and by amounts of inventory in terms of sales. As the stores increase in size, gen- erally speaking, the amounts of wages and salaries per $100 of selling ex- pense decrease. There is one excep- tion to this rule for the combined years and one each for 1919 and 1918. Otherwise, the condition is general. What is of most interest in this con- nection, however, is not store size alone, but stores of the same size with varying inventories. When the de- tails are considered from this point of view it is impossible to generalize for all the groups as to whether the amounts increase or decrease as the inventories increase. For some groups of stores, as for instance those with sales of $80,000 to $180,000 for the combined years, the amounts de- crease, while for other groups, as for instance the group with sales of $40,000 to $80,000, there is a tendency for the amounts fiirst to decrease and then to increase with increasing in- ventories. Nothing further need be said con- cerning the amounts for stores with different sales and different inven- tories in relation to sales. The actual figures are supplied for what they are worth. They constitute standards or norms for these stores, and from year to year show a remarkable con- sistency. Brief discussion is required of Table 153. In 4is table 282 stores 221 TABLE 150 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INV'ENTORY PER $100 OF TOTAL NET SALES, 1919 Clacoiriod Kot e-t3.?8 (In OOO'a) Total (ivor&ee) V-.Aer S-10 540 to J 30 tso to Jieo $180 u ov«r Amount of Inventory per $100 of Total Net Galea Total (Averaf.'^ 5 Under $20 $20 to $40 |40 to $eo J60 fc over Total (AvarEgo) Undoi- 520 $20 to $40 $40 to §60 §60 & over Total (Averara ) Under fSO |20 to $40 $40 to $60 $60 Is. over Total (Average ) Under $20 $20 to $40 $40 to $60 $60 t over jjumber of Stores 7 63 51 e 2 22 28 S Total (Averago ) Under $20 $20 to $40 $40 to $60 $60 & over Total SelllrAg Expense $2,135,072 105,711 1,649,518 545,965 33,673 29,013 6,275 15,797 6,S45 233,843 7,320 94,720 122,592 9,211 700,800 34,507 465,124 183, 648 17,721 1,171,411 64,084 1,083,399 23,928 Total TCt-Ees k Salaries $1,430,061 64,927 1,111,412 230,646 23,075 19,303 2,640 10,750 5,913 170, 682 5,875 65,760 91,847 7,200 479,344 26,569 326,696 116,116 9,963 760,732 32,483 716, 316 11,933 Wages btA Salaries per $100 of Selling E>:pense Per Cent. Graphic I EO 40 60 80 100 120 140 $60.93 61.42 67.33 65.67 68.12 42.07 68.05 85.13 72.99 80.26 69.43 74.92 78.17 68.40 77.44 70.24 63.23 56.22 64.94 50.69 66.12 49.87 100,0 91.7 100.6 99.5 101.7 62.3 101.6 127.1 109.0 119.8 103.7 111.9 116.7 102.1 115.6 104.9 94.4 83.9 97.0 75.7 98.7 74.5 Aver are $66.98 222 TABLE 151 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 Amount of Inveitory per vlOO of Total Net Sales KijT.ber of Stores Total Selling Expense Total nagoa i Salaries ■./ages and Salaries per ClOO of Selling Expcnco Clascifiod Total Net Sales Aroiint C Per Cent. (in OOO's) ) 20 40 eo 80 100 120 Total (Average ) 149 $1,573,249 $1,062,031 $67.51 100.0 Under $20 $20 to $40 $40 to $60 $60 S: over 3 46 60 40 32,117 937,441 427,462 176,229 20,714 644,437 275,422 121,458 64.50 68.74 64.43 63.92 : Total (Average ) 101.8 95.4 103.1 Total (Average ) 42 101,621 71,303 70. ■55 104.1 tinder $40 Under $20 $20 to $40 $40 to $60 $60 4 over 6 13 23 17,520 27,892 56,209 9,878 17,855 43,660 56.38 64.01 77.67 • 83.5 94.8 115.0 ; ■; Total (Average ) 60 331,958 231,207 69.65 103.2 Under $20 $20 to $40 $40 to $60 $60 & over 2 15 29 14 7,270 97,097 144, 693 82,898 4,690 67,991 98,140 60, 378 64.02 70.02 67.83 72.03 ; 95.7 103.7 100.5 107.9 $40 to $80 Total (Average ) 33 422,051 277,830 65.03 97.5 ! $80 to $180 Under $20 $20 to $40 $40 to $60 $60 & ovep 14 16 3 194,559 190,370 37, 122 144,701 115,709 17,420 74.37 60.78 46.93 110.2 90.0 69.5 ■ ; Total (Average ) 14 717,619 481, 601 67.11 99.4 Under $20 $20 to ■iiO :J40 to $60 ieo C: over 1 11 2 24,847 628,265 64,507 15,016 421,367 43,713 64.46 67.15 67.77 ; 95.5 99.5 100.4 $180 & over I 1 i Average $67,51 223 TABLE 152 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 Amount of Inrentory per $100 of Total Set S&laa Dumber of Stores Total Selling Expense Total Wages * Salaries Wages and Salaries per $100 of Selling Ejcpense Total Ket Sales (In OOO'a) Amount Per Cent. Oraphlc Actual 3 20 40 60 80 100 120 Total (Average ) 149 $1,037,508 $681,929 $65.73 100.0 Tfrulnr $20 $20 to $40 $40 to $60 $60 & over 4 39 66 40 55,072 501,126 355,540 145,770 22,279 310, 962 248,206 100. «92 63.52 62.06 69.81 68.92 96.6 94.4 106.9 104.9 Total (ATorage ) Total (Average ) 71 167,592 117,357 70.03 106.5 Dnder $20 $20 to $40 §40 to $60 $60 fc over 1 10 31 29 948 30,241 68,605 67,798 720 21,454 46,395 48,788 75.95 70.94 67.63 71.96 U5.5 107.9 Under $40 109.5 ^^^^^^ Total (Average ) 50 311, 723 214,768 68.90 104.8 Onder $S0 $20 to $40 $40 to $60 $60 & over 2 15 25 8 15,032 91,978 161,294 43,419 9,929 54,218 119,452 31,189 65.05 68.95 74.06 71.63 100.5 89.7 112.7 109.3 $40 to $80 Total (Average ) 23 322,178 206,361 64.05 97.4 Under $20 $20 to $40 $40 to $60 $60 & over 1 9 10 3 19,092 142,892 125,641 34,555 11,630 91,887 82,359 20,485 60.92 64.31 65.55 59.29 92.7 97.8 99.7 90.2 $80 to $180 Total (Average) 5 236,015 145,423 60.77 92.5 $180 & OTer Under $20 $20 to $40 $40 to 60 $60 k over 5 236,015 142.423 60.77 92.5 Average $65.73 224 TABLE 153 AMOUNT OF WAGES AND SALARIES PER $100 OP SELLING EXPENSE PER STOCK TURN- OVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OP INVENTORY PER $100 OF TOTAL NET SALES, 1919 Cl.SBiried Total Net Sales Amount of Inventory per $100 of Total Met Sales Number of Stores Oa^e and Salaries per $100 of Selling Expense Wages and Salaries per $100 of Selling Sxpense per Stoelc Turnover Onount Per Cent. Amount Per Cent. s.o 101.7 108.3 89.4 85.8 7.49 4.96 3.58 2.18 1.S5 180.9 U9.8 86.3 52.7 37.4 Total (ATarftt^o) ; i Total (Averaga) 146 67.05 100.3 3.88 79.8 Dndar $12 ti2 to tie tie to t24 tZ4 to t22 $52 4 OTor U SO 61 ei 19 63.36 76.04 Te.S4 67.84 67.16 94.8 113.7 108.8 86.6 8S.S 6.51 5.43 3.84 8.08 1.54 157.8 131.8 92.8 60.8 37.2 1019 ^^^^^^^^ ■ 1 Total (A»»rag« ) 146 6T.47 100.9 4.38 104.3 Dtadar tl2 tl2 to tlS (18 ta t24 t24 to t32 t}2 k orer SO it 37 14 3 7i'.oe 69.36 63.01 67.24 62. SO 106.8 103.7 97.8 100.6 93.5 6.99 6.17 3.87 8.46 1.67 168.a 124.9 79.0 1913 ^^^■■■■H 40.3 ; total (ATarago ) 146 65.69 98.1 5.78 139.6 . DBdor tl2 tl2 to tlS tie to t24 t24 to t22 t32 & OTar 86 3S 20 4 1 70.77 60.07 88.80 71.68 61.98 108.6 89.8 M.9 107.8 98.6 7.69 4.28 3.05 2.60 1.63 190.& 103.4 73.7 62.8 39.4 1914 IIIIMBI 11 1 1^ : ■MHB Average t66.8 8 ATSrsge #4.14 stores classified by the amount sold per full-time sales-person, wages and salaries expressed either in terms of selling expense alone or in terms of selling expense for each $1,000 sold per full-time sales-person, may be seen by consulting Table 157. The direction of change in the amounts is evident from the graphic summary. A brief summary of Tables 154 to 157, inclusive, may be expressed as folloM^s: First, the amounts of wages and salaries, measured in terms of sales, and in terms of sales for each $1,000 sold per full-time sales-person, decreased between 1914 and 1918, and 1918 and 1919. Second, the amounts sold per full-time sales- person increased between 1914 and 1918, and 1918 and 1919. Third, as the amounts of wages and salaries per $100 of total net sales 232 increase, sales per full-time sales- person decrease. Fourth, the amounts of total net sales secured for each $100 of wages and salaries paid, in- creased between 1914 and 1918, and 1918 and 1919. Fifth, as the sales per full-time sales-person increase, wages and salaries in terms of sales alone, or combined with the amount sold per sales-person, decrease. Sixth, the amounts of wages and salaries, when expressed for each $100 of sell- ing expense, increased between 1914 and 1918, and decreased between 1918 and 1919. When they are expressed in the complex unit they decreased between 1914 and 1918, and 1918 and 1919. B. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size, 1919, 1918, and 1914. In the discussion of the amounts of wages and salaries paid to salesmen in stores of different size and with different amounts sold per full-time sales-person, the records of two groups of stores are available. For the year 1919 alone, as is shown in Table 158, 269 stores may be studied. Wages and salaries are measured, first, in terms of sales, and second, in terms of sales and the rapidity with which stock is turned in each of the groups. For the 269 stores in 1919 it cost in wages and salaries paid to salesmen for each $100 of total net sales, $6.68. For stores with sales under $40,000, the average cost was $4.19 ; for stores with sales of $40,000 to $80,000 it was $5.40 ; for stores with sales of $80,000 to $180,000 it was $6.72; and for stores with sales of $180,000 and over, it was $7.28. That is, as the stores increase in size, the amounts paid in wages and salaries per $100 of total net sales increase. These increases, however, from store-group to store- group are probably better shown for stores in which the same amount is sold per full-time sales-person, but in which the total sales are different. Any one of the groups of stores in Table 158 may be chosen to illustrate this. If the stores are used in which the sales per full-time sales-person were $16,000 to $24,000 per year, the expense attributable to selling in the stores with sales under $40,000 was $4.42. The corresponding amount for those which sold $40,000 to $80,- 000 was $4.69; for those which sold from $80,000 to $180,000, $6.38 ; and for those which sold $180,000 and over, $9.86. Similar differences are observed for the stores which had larger and smaller amounts sold per full-time sales-person. It is unneces- sary to set these out in detail inas- much as they are contained in Table 158. When the amounts of wages and salaries paid to salesmen are ex- pressed in terms of $100 of total net sales per stock turnover, the disad- vantages associated with the large stores, however, are reduced. The amounts are smallest in stores which are largest, although for those with sales less than $180,000 they slightly increase with store size. It is worth- 233 TABLE 158 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- OVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SAIjES PER FLT^L-TIME SALES-PERSON, 1919 AxruBt of S*lull lonctn not atom 236 aDiounts sold per salesman increase. The nature of these decreases as well as the actual amounts may be ob- served by consulting Table 159. Table 160 shows the association between the amounts of wages and salaries paid per $100 of total net sales and the average sales per full- time sales-person. The total section supplements the detail for 146 stores in 1919, as shown in Table 155. The remaining parts show the average amounts sold in stores of different size, having different wage and salary expense in relation to sales. Suffi- cient attention has already been given to the amounts for the stores treated as a whole. The condition for a single group may be illustrated by choosing again the group of 103 stores with sales of $40,000 to $80,000. When the amount of wages and salaries per TABLE 160 TOTAL NET SALES, NUMBER OF FULL-TIME SALES-PEOPLE, AND AMOUNT OF SALES FEB FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, 1919 Amount of Wage a h Salaries per $100 of Total Het Salea Hiimber of 8toreo Total Met Salea HuBber of PuXl-tljne Salea-paople Sales per Pull-tine Sales-person ClesBlfled Total Amount Per Cent. (In OOO'o) Oraphlc Actual ) 20 40 eo 80 100 120 140 160 160 ZOO Total (Average) 269 $33,687,842 1,666.5 t20,215 100.0 Onder t4 »4 to *8 to i over 77 137 55 5,674,150 19,511,844 8,501,848 266.5 943.7 4S6.3 21,291 20,676 13,632 105.3 102.3 92.2 (Ayerago ) Total (Average ) 31 963,213 56.8 16,958 83.9 Dndar $4 #4 to ta |8 8t ovor 15 14 2 467,511 436,247 59,459 23.6 27.3 5.9 19,810 15,980 10,077 98.0 79.1 49.8 ttadsr Uo ■^— Total (Average ( 103 5,872,443 353.3 16,622 82.2 Under |4 ♦4 to ta $a tc over 39 49 IS 2,112,534 2,875,452 664,457 104.8 177.8 70.7 20,158 16,172 12,510 99.7 80.0 61.9 (40 to |eo Total (Average ) 92 10,640,797 564.2 19,214 95.0 : 1 Under (4 »4 to »e $8 k over 20 45 27 2,125,457 5,529,271 3,186,069 1U.5 279.4 173.3 19,062 19,790 18,365 94.3 97.9 90.9 leo to ♦180 : 1 Total (Average) 43 16,011,389 692.2 23, 131 114.4 '. Onder |4 (4 to %a |8 fe over 3 29 U 968,648 10,670,874 4,371,867 26.6 459.2 206.4 36,415 23,238 21,182 180.1 115.0 104.8 flSO & over ATerags (20,215 237 $100 of total net sales is less than $4, the average amount sold per full-time sales-person is $20,158. When the amount of wages and salaries per $100 of total net sales is between $4 and $8, the amount of sales per full- time sales-person is $16,172; and when the corresponding amount of wages and salaries is $8 and over, the amount of sales is $12,510. Table 160 supplements Table 159, and should be considered in connection with it. In the discussion of the relation of wages and salaries to sales, Table 161 is of interest. For the 269 stores which are studied, $1,496 in sales were secured in 1919 for each $100 of wages and salaries paid. As the stores increase in size the amounts of sales secured for each $100 of wages and salaries decrease. For those with sales under $40,000, the average amount is $2,385 ; for those with sales of $180,000 and over, it is $1,374. Within each group of stores, however, when classified by size, the amounts increase as the sales per full-time sales-person increase. For the 16 stores which sold between $40,000 and $80,000, and in which the amount sold per full-time sales-person was less than $12,000, $1,505 were secured in sales for each $100 of wages and salaries paid. For the 13 stores having the same amount of sales, but in which each salesman sold $32,000 and over, $3,329 in sales were secured for each $100 of wages and salaries paid. Similar increases follow for the stores in the other size-groups, although in some the amounts are erratic and the direction of change uncertain, due primarily to the fe-w stores which are included. The foregoing discussion of the amounts of wages and salaries paid to salesmen per $100 of total net sales refers to 1919. Sales were high in this year, due not only to the amounts of goods sold, but also to prices realized. In view of this fact, it has been thought worth-while to study, in this connection, a group of iden- tical stores for the years 1914, 1918, and 1919. Fewer records are avail- able for this purpose, but those which can be used are probably sufficient to serve as a basis for generalization. They are certainly helpful in measur- ing the condition in 1919 relative to the earlier years. In Tables 162 to 165, inclusive, 146 stores classified by size and by the amounts of goods sold per full-time sales-person in 1919, 1918, and 1914 are studied for the purpose of deter- mining the amounts of wages and salaries, measured in different ways, which are paid to salesmen. The dis- cussion of the 269 stores for 1919 had to do primarily with the amounts paid in stores of different size and with different sales per full-time sales- person. In the discussion of Tables 162 to 165, inclusive, chief interest lies in the amounts paid in the differ- ent years. These are fully set out in the tables, the units of analysis being the same as those used in Table 159. For the 146 stores under considera- tion, it is shown in Table 154 that the amounts of wages and salaries per $100 of total net sales and per $100 of sales for the amount sold per full- 238 TABLE 161 WAGES AND SALARIES, TOTAL NET SALES, AND AMOUNT OF TOTAL NET SALES PER $100 OF WAGES AND SALARIES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 Cla3Blflefi Amount of LaXes per Pull-tlma balea-pargon (In ooo'a) Niin'oor of Stores Total nago3 i Salarica Totil Not Sales Total Wet Sales per ClOO of Wages and Salaries Total Vat Sales Aao'mt Par Cent. Graphic Actual 20 40 60 90 100 120 140 160 130 200 220 240 Total CAvoracc) 263 $2,251,131 $33,687,342 $1,496 Under $12 $12 to $16 $16 to $24 $24 to $32 $32 & over 30 SS 103 44 36 Ul,7a4 356,384 1,040,507 455,255 297,261 1,375,334 4,323,136 13,737,725 7,722,827 5,428,760 1,678 1,381 1,320 1,696 1,390 Total (Average) ; Total (Avorage ) 31 40,382 963,213 2,385 1S9.4 Under $12 $12 to $16 lis to $2i $24 to $32 $32 /• ovcr 9 4 7 7 13,688 5,472 10,132 6,838 4,172 243,200 • 127,962 230,157 212,103 143,731 1,321 2,333 2,260 3,069 3,445 Dnder $40 ^^r^^^ """"""" Totil 103 316, 375 5,872,443 1,953 ; UriJer $12 $12 to $16 $16 to $24 $24 to $32 $33 /: over 16 34 31 9 13 S6,S13 123,464 84, 406 32, 562 20,025 650,423 1,961,395 1,800,555 693,340 666,624 1,505 1,589 2,133 1,922 3,329 $<0 to Jeo 106.2 142.6 222.5 Total (AvorQgo) 92 728,502 10,840,797 1,488 9«.S Under $12 $12 to $16 $16 to $24 $24 to $32 $32 k ovar 4 15 60. 14 » 24,023 137,134 382,801 98,842 85,697 391,470 1,604,273 5,997,547 1,722,331 1,125,176 1,629 1,170 1,567 1,''43 1,313 loe.a 78.2 104.7 116.5 $B0 to $1S0 ^^^^""^T . Totkl (Avarage ) 43 1,165,332 16,011,389 1,374' Undor $12 {12 to $16 $16 to $24 $24 to $32 $32 flc over 1 S IS 14 10 17,550 90,314 563,118 316,983 177,367 384,295 1,229,506 5,709,366 6,194,993 3,493.229 2,190 1,361 1.014 1,639 1,969 $180 4 over 91.0 67.8 109.6 131.6 ^^^^^" Average $lt496 239 TABLE 162 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER $1,000 OP SALES PER FULL-TIME SALES-PERSON, FOB 1-16 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES- PERSON, 1919, 1918, AND 1914, COMBINED itoount of Salaa por r\ill-tbaa Salo.-prr.oii (Id 00C%) Kiubor or Storo- jaara Wagaa arid Ealarlea par (100 of Total Ket Salea Wages an! Salaries per ilOO of Total Het Salea per tl.OOO or Salea per Pull-tljae Salei-person ciMiiriod Total ■•t Kalo Per Cent. ASOUDt Per Cent. or 14 31 46 12 5 7.30 7.58 6.60 6.M 8.21 04.2 10S.3 94.4 96.4 114.0 0.74 0.5S 0.35 0.26 0.23 164.4 122.2 80.0 ST .8 Sl.l j ■■^^■^"■■, ! Total (Avaraga) 42 7.87 109.3 0.J9 86.7 ; Undar (12 (12 to (16 (16 to (24 (24 to (32 (32 k o»or S E 17 10 7 ».C3 9.38 ».21 5.95 4.43 137.9 130.3 127.9 82.6 61.3 0.95 0.70 0.47 0.21 0.12 • 211.1 155.6 104.4 4e.7 86.T (1£0 t. OTcr Af «T3BH^ tZSL. Averogft $0»4ft time sales-person decreased between 1914 and 1918, and 1918 and 1919. Tables 162 to 165, inclusive, show that this condition held for each group of stores when classified by size. More- over, decreases from year to year also hold for each group of stores when the amounts are measured in terms of sales for each $1,000 sold per full- time sales-person. The direction of the change from year to year, there- fore, seems to be uniform. For this group of stores in each year, as for the 269 in 1919, the amounts of wages and salaries in- crease as the stores increase in size. 240 However, for each group, when the stores are classified by size, the amounts of wages and salaries per $100 of total net sales and per $100 of total net sales for each $1,000 sold per full-time sales-person decrease as the amounts sold per full-time sales- person increase. To this general rule there are some exceptions. Had the records of even a larger number of stores been analyzed, some exceptions would have been expected. For this group, they are so few that they do not invalidate the conclusion that an TABLE 163 AMOUNT OP WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 Pull length not sJic 241 TABLE 164 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OP S.VLES PER FULL-TIME SALES-PERSON, 1918 toount of Saloj par ruii-tu» bloi-t>cr>oo (ID OOO'll «a««a uul Salaries per $100 of Total Hat Salaa Bai^o end Salarloo par $100 or Total Hot Salea per $l»0O0 of Salos per Pull-tlna ^^alee-peraon TBtil ■olMr of Storaa ABDODt Per Cent. Aacnmt Per Cent. lis >.X»'«) O"'^" 1 Actual ) 20 40 60 80 100 120 140 leO OrapMc 1 . _ . 1 Actual 20 40 60 80 100 130 140 160 laO Tot.l 14« $7.36 100.0 $0.47 100.0 Qbdor $12 $12 to $18 tl6 to $24 •24 to $32 60 42 ST 14 S 7.27 7.81 7.39 6.80 3.49 98.5 10S.8 lOO.l SZ.l 47.3 0.72 0.58 0.37 0.25 0.09 1SS.2 123.4 18.7 53.2 19.1 Utsi^^o) ■■■" Total (*nr«g<) 40 6.84 79.1 0.49 104.3 OBlar $12 $12 to $16 $16 to $24 $24 to $32 $32 » oT«r 21 t 9 S 2 7.55 5.17 4.60 3.27 1.30 102.3 70.1 C2.3 44.3 17.6 0.87 0.38 0.24 0.12 0.03 185.1 80.9 51.1 25. S 6.4 Vattr $40 ■ To tail (Avorago) 61 6.57 B9.0 0.50 106.4 Und.r $12 $12 to $16 $16 to $24 $24 to $32 $52 1. o..r 24 CO 16 2 7.44 «.M 5.64 2.07 100.6 90.0 76.4 26.0 0.70 0.49 0.31 0.07 148.9 104.3 $40 to {80 j 14.9 lotil (Avonga) 32 7.17 97.2 0.42 89.4 : Cador $12 $12 to $16 $16 to $24 $24 to $38 $32 4 o,.r i U 10 s 1 6.41 6.43 7.55 S.05 4.51 86. 9 87.1 103.3 122.6 61.1 0.57 0.46 0.38 0.34 0.12 121.3 97.9 eo.9 72.S ss.s $fo to tiao — Total (A»«r«sa) u 8.37 113.4 100.0 i $ieo <• ever miliar $12 $12 to $1« $16 to $24 $24 to $S2 $32 » o.«r 4 7 3 10. SO 7.66 6.08 142.3 106.5 82.4 176.6 83.0 46,9 0.83 0.22 — ; effective method of reducing the amounts of wages and salaries per $100 of total net sales is to increase the amount sold per full-time sales- person. The amounts of wages and salaries paid to salesmen may also be ex- pressed in terms of total selling ex- pense. This is done in detail in Table 166 for the 269 stores classified by size and by the amounts sold per full-time sales-person. For 146 stores, in 1919, as shown in Table 157, it cost in wages and salaries $67.05 out of every $100 of selling expense. For 269 stores, as shown in Table 166, the corresponding cost for the same year was $65.67. Inasmuch as wages and 242 salaries become a proportionately smaller percentage of selling expense as the stores increase in size, the actual amounts for two groups of stores depend on the proportions in which stores of different size are in- cluded. The amounts in 1919 for 269 stores of different size are shown in Table 166. Briefly, they are as fol- lows : For the stores with sales under TABLE 165 AMOUNT OF WAGES AND SALARIES PER $100 OP TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 Claaairisd AfflOimt of Salaa par Pull-tixa Salaa-paraon (la OOO'a) of Storoa Jli.:o3 and Salarlaa par JlOO of Total Ba .„.. "..agaa and Salar par $1,000 or 3 lea par $100 of Total Ket Salca alas par Pull-tlmo Salaa-peraon Xst Sale! Amount Par Cant. Amount Per Cant. 3 20 40 GrapMo 60 80 100 120 140 Actual 20 40 OT'^hlo 1 Actual 60 30 100 120 140 160 Total (ATar»g») 146 $7.43 100.0 $0.55 100.0 Bndar $12 $12 to $18 $16 to $24 $24 to $33 $S2 It ovar ae 35 20 4 1 8.51 6.72 5.57 8.17 1.78 U4.2 90.2 74.8 100.7 23.6 0.95 0.48 0.30 0.30 0.05 143.9 72.7 TotU. 1 ! (AvsrKg*) ■ 45.5 7.6 Total 71 8.41 85.0 0.71 107.6 nndsr $12 $12 to $15 $16 to $24 $24 to $32 $32 i ovar 45 15 3 3 7.5» 4.53 4.42 3.69 101.9 60.8 sa.3 49.5 1. 00 0.33 0.24 0.14 160.6 SO.O 36.4 21.2 Ondar $40 Total (A»araga ) 46 7.53 100.9 0.67 101.5 •DBdar $12 $12 to $16 $16 to $24 $24 to $32 $32 i ovor 31 10 5 1 1 8.^5 ■<.94 I'.GO 1.7S 110.5 83.1 65.0 196.0' 23.6 0.85 0.43 0.28 0.51 0.05 128.8 72.7 42.4 77.3 7.6 t40 to $90 ^^^B — ■ Total (Avsrag? ) 22 7.45 100.0 0.53 87.9 Undar $12 $12 to $16 $16 to $24 #24 to $32 $52 & over 7 6 9.08 7.41 C.56 121.9 99.5 74.5 0.94 0.54 0.39 142.4 81.8 $eo to $180 1 • ; - Total (Averaja) 5 8.45 113.6 0.65 100.0 Uadar $12 $12 to $15 $16 to $24 $24 to $32 $32 £; ovar S 1 1 9.93 7.29 7.53 133.3 97.9 101.1 0.95 0.49 0.43 143.9 74.2 63.6 $180 k over ; Averaga $7.45 •Pull lengfr. no t sho»-m Average $0.56 243 $40,000, the average amount is $71.29; for those with sales of $40,- 000 to $80,000, it is $71.93; for those with sales of $80,000 to $180,000, it is $66.95; and for those with sales of $180,000 and over, $63.07. That is, the amounts over the entire range of sizes decrease, altliough the average for the stores with sales of $40,000 to $80,000 is slightly larger than that for the stores with sales under $40,000. ]\Ioreover, the amounts for stores having a given amount sold per full- time sales-person tend to decrease as the stores increase in size, although from group to group the tendency is somewhat irregular. When the stores are classified by size and further by the sales per full- time sales-person, the proportions which wages and salaries constitute of each $100 of selling expense de- crease as the amounts sold per full- time sales-person increase. This con- dition characterizes the 269 stores in 1919, shown in Table 166, as it did the smaller number for the same year shown in Table 157. The amounts of wages and salaries may also be expressed per $100 of selling expense per stock turnover. This is done in the columns of Table 166 having this caption. For the en- tire group of stores, irrespective of size, the average amount in 1919 was $29.80. For the stores with sales under $40,000, it was $47.53; for those with sales of $40,000 to $80,000 it was $39.96 ; for those with sales of $80,000 to $180,000 it was $35.24; and for those with sales of $180,000 and over, $23.36. That is, the amounts decrease as the stores increase in size, the percentages of difference being somewhat larger when the amounts are expressed in this form than when they are expressed in selling expense alone. Moreover, the amounts of wages and salaries per $100 of selling expense per turnover decrease as the amounts sold per full-time sales- person increase. This condition holds for the stores treated as a whole and when classified by size. There are a few exceptions to this general rule but these are inadequate to alter the con- clusion. An effective way of reducing wages and salaries measured in terms of selling expense per turnover is to increase the amounts sold per full- time sales-person. The latter, of course, may result from increasing the sales of a given force or from reducing the size of the selling force. Table 167 shows the amounts of wages and salaries per $100 of selling expense for each $1,000 sold per full- time sales-person. The stores in- cluded are the same as those in Table 166. For all the stores, irrespective of size or of the amounts sold per full- time sales-person, the average amount of wages and salaries per $100 of selling expense for each $1,000 sold per full-time sales-person was $3.24. When the stores are classified in the four size-groups customarily used, the amounts on the whole decrease as the stores increase in size. For those with sales under $40,000 the amount was $4.20, for those with sales of $180,000 and over, $2.73. Moreover, when the stores are classified by the amounts sold per full-time sales- 244 TABLE 166 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- OVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 ^ — '-^ '■ — tooant of &«l«a par KU-tlaa Balea-person (In OOO'a) Imber of fitoree ■agea and Salaries par tlOO of Sailing acpaasa ■aeaa and Salarlea par »100 of Salllnc Sxpesaa. par StooJc tomovar eiualflod Total lot Bales (in 000'«) iaomt Par Cant. iaont tar Cant. OraphU 1 Astsal 1 20 40 60 80 100 120 Oraphlo [letaal 20 40 60 80 100 120 140 160 ISO 200 total Unrage) 269 169.57 locr.o t29.80 ttadar tlS ti2 ts tie tie to t24 t24 to tS2 tS2 k orar SO 66 109 ' 44 86 61.29 T4,5S 69.55 61.50 55.56 9y.5 113.7 106.1 93.8 81.7 36.05 39.49 34.78 2S.6S 19.13 Total (iTorago) ^""**'"*"^" 64.2 Total (iTeraga ) SI 71.89 108.7 47.63 ; ttadar tl£ tl2 to tie tie to t24 t24 to tae tS2 ii oTor 9 4 7 7 4 75.61 76.62 68.85 76.56 54.69 115.3 116.7 105.0 U6.S 8J.4 54-.01 42.51 52.96 45.05 34.18 ObOor t40 i • Total (iTOraga ) lOS 71.8S 109.7 39.96 ttadar tl2 tl2 to tie tie to t24 t24 to tS2 t3Z k OTor 16 S4 SI 9 13 73.52 7S.04 71.26 76.43 69.40 112.1 111.4 108.7 116.6 90.« 49.01 42.96 39.59 36.40 31.26 t4a to teo 144.^ 1 Total (Average) «2 66.95 102.1 3S.24 ttadar tl2 ti2 to tie tie to t24 t24 to tS2 tS2 k over 4 IS SO 14 9 se.si 75.72 67.30 64.01 60.67 86.2 115.5 102.6 97.6 92.5 29.74 37.86 37.39 30.48 21.67 teo to lieo 1 : j total 'Avarage) 4S 6S.07 96.2 23.56 ^— Ovtar tia ti£ to tie tie to t24 124 to t32 tS2 k over 1 S 15 14 10 SS.09 74.75 70.95 59.33 50.15 59.6 u*.o 108.2 90.5 76.5 15.64 25.77 27.28 22.82 15.67 S2.5 tlfiO k oTor 1 i 1^^ ! 52.6 ATeraga #66*67 ATQraga |29.&0 person, the wages and salaries per $100 of selling expense for each $1,000 sold per full-time sales-person de- crease as the salesmen's activities in- crease. This is to be expected in view of the method by which the stores are classified. The only virtue of ex- pressing the amounts in this form is to place them on a uniform or $1,000 basis. By doing this, the different store-groups become directly com- parable. 245 The meaning of Table 167 may be made clearer if the amounts of wages and salaries for a single group of stores are studied. For stores having sales of $40,000 to $80,000, it cost $7.31 in wages and salaries per $100 of selling expense for each $1,000 sold per person when a salesman sold less than $12,000 per year. It cost but $1.40 in wages and salaries similarly measured when salesmen sold $32,000 and over. Prudence and business TABLE 167 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 «ao«r r t^lai-parxm (in 000'.) Imbar of Etoraa >a«a« and Salarlaa par tUM of Sailing Kzpanaa Wagea and SalArlaa par tlOO of Salllag Kxpanaa par tl,000 or Salea par Pull-tlna Salaa-paraoo eiuiinat ■•t (•!•* do ooo'a) iKunt far Cane. taanmt far Cant. Qraphlo 1 20 to SO 80 100 120 kotual 5 20 40 60 (k^phla 1 Aetaal 80 100 120 140 laO 190 200 (Av*r«g») set tes.ST 100.0 t3.e4 100.0 i Otadar tl2 tlS to tU tie to t2« t24 to t32 tS k onr SO *a lOS M sa ai.M 74.S3 M.3S 01.90 93.se •9.S 113.7 io«a »3.» ei-.T 6.01 B.28 3.6S 3.M 1.30 ias.6 les.o lU.V eo.x 40.1 fct»l Unr«e«) : — "■ 5 r Total U.OTMOl a 71.29 ioa.7 4.20 12sr.6 Ikdor tU tl2 to tie tie to t2t t24 to t» taa k oTor » « 7 7 4 78.61 7e.S2 68.93 76.6S 94.69 us .9 116.7 103 .0 iis.a S3.4 7.SS S.26 3.47 8.67 1.56 233.0* 162.8 107.x Qldw t40 ^— 4e.i Tot*l UT>r«e>) 109 71. »3 109.7 4.33 133.6 : Ondor tU tie to tie tie to t24 t24 to t32 tSI k onr 16 94 91 • 13 73.sa 73.04 71.26 76.49 S8.4« 112.1 1U.4 ioa.7 us.e 90.6 7.31 S.06 S.77 S.83 1'.40 2=5.6* 1^6.9 ue.4 67.3 43.2 t«o to leo ; ' ! — - 1 total (AToroga) ra ee.es 102.1 3.48 107.4 i Cbdar tU tu to tie tie t* t24 t24 to %iZ t32 k o>ar 4 IS eo 14 S ee.si 79.71 67.30 64.01 60.67 86.2 US.S lee.e 97.6 92.8 8.44 8.60 8.S4 Z.3S 1.87 1S7.8 177.8 109.3 TC.S «e.s ta« to tuo ■■^^"^ i Total U»or•^a) Omar tl2 ti2 to tie tie to |2« t«4 to t32 •32ko.ar 43 63.07 3».09 74.73 70.93 59.33 SO. IS 96.9 «.73 84.3 — 1 3 IS 14 U> 69.6 U4.0 ioe.2 90.5 76.5 3.74 £.20 3.71 2.15 1.19 115.4 160.8 U4.S 86.4 S6.T •IM k oTor ' — ■ — ' kfW^ |«6«ft7 ATar*e» |3*34 Full longtb not ftbom 246 sense immediately suggest the desir- ability of stimulating sales as a method of reducing the percentage of selling expense reflected in wages and salaries. The data in Table 167, however, refer alone to the year 1919. In many particulars this is an exceptional year, and it has been thought of interest to include data similarly classified for TABLE 168 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919, 1918, AND 1914, COMBINED Anoent of 8«lee per Ml-tlie s*aeE-p«rB0D (in 000' •) Softer of Store. Teare Wages and Sslerleo per tlOO of Selling Expense nagee and Salaries per (100 of Selling Ejqwnee per (1.000 of Salee per FDll-tlne Salee-person Total Xet Sklea 20 40 60 80 100 120 140 160 180 Total (Average) 146 (65.59 100.0 (5.7B Dnder (12 (12 to (16 (16 to (24 (24 to (S2 (SS » over Be 3S 20 4 1 70.77 60.07 66.80 71'. 68 61.62 107.9 91.6 86.6 109.5 94.4 7.69 4.28 5.05 2.60 1.65 Total (Avera^) • ; 28.2 Total (Average) 71 69.82 106.4 7.76 154.5 D&der (12 (12 to (16 (16 to (24 (24 to (i2 (S2 k over 45 IS 8 9 71.82 6^.89 66.88 54.68 108.6 103.5 102.0 es.4 ».91 4.91 5.60 2.05 171.6 64.9 62. S 35. 1 Oidsr (40 — : Total (Average) 48 68.63 104.6 5.44 94.1 Dader (12 (12 to (16 (16 to (24 (24 to (S2 (32 k over SI 10 E I 1 7S.09 62.07 48.73 eo.8o. 61.92 111.4 94.6 74.5 123.2 94.4 7.57 4.52 2.77 2.83 1.63 151.0 78.2 47.9 49.0 28.2 (40 to (60 Total (Average ) 22 64.05 97.6 4.96 Onaor (12 (12 to (16 (16 to (24 (24 to (32 (33 & over 7 9 6 69.73 61.90 68.03 106.5 94.4 88.5 7.19 4.66 5.02 124.4 78.7 52.2 (80 to (180 Total (Average) 6 60.77 92'.7 4.75 81.8 tkder (12 (12 to (IE (16 to (24 (24 to (32 (se k ever S 1 1 67.32 64.67 57.42 102.6 83.4 87.5 6.43 3.64 3.20 111.2 63.0 55.4 $130 * OT»p — i t Average (65. £9 Avurugtt (S»7S for stores with annual sales from $40,000 to $80,000 and with different amounts sold per full-time sales- person. When the amounts are ex- pressed on a per turn basis, and when the stores are considered as a group, those in the large cities spend less than do those in the small cities. When they are classified by the amounts sold per full-time sales- person, however, this advantage does not hold in each individual instance, 251 TABLE 172 AMOUNT OP WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- OVER, FOR STORES WHTH SALES OF $40,000 TO $80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OP SALES PER FULL-TIME SALES-PERSON, 1919 Aaount of £«les per PuU-tlJio SAlo>-perso: Wagaa ajid Ssl&rtoa par $iOO of Total Hat Salaa 20 40 60 80 100 120 140 ICO Vagea and Salaries par $100 of Total Rat Salea par :>tock Turnover 20 40 60 80 100 120 140 160 __ , ; 1 , ^. Total (Ageraiga) Dndar $12 tl2 to tie }16 to t24 t24 to $32 $32 It over 6.65 6.29 4.69 S.49 3.00 S.St Dtadar $12 $12 to $16 $16 to $24 $24 to $32 $32 A over 6.92 6.31 4.79 4.oa 2.9S 5.7S Ondar $12 $12 to $16 $16 to $24 $24 to $32 $32 & over 4.57 6.24 3.63 e.03 S.M 100.0 53.00 123.1 116.5 86.9 101.7 55.5 4.43 3.70 2.61 2.61 1.58 96.9 3.14 128.1 116.9 88. S 75.6 54.1 4.61 3.71 2.81 2.27 106.7 2.74 84.6 US. 6 67.2 1*8,7 65.9 2.86 3.12 I.IO 3.21 2.23 4vara^ $5.40 Avarago $3.00 100.0 147.7 123.3 87.0 87 .0 52.7 104,7 153.7 123.7 93.7 75. 7 48.7 91.3 95.3 104.0 36.7 107.0 74.3 the number of stores being too few to reveal characteristic amounts. Within each city-group, however, the amounts of wages and salaries, when measured in a unit of sales per stock turnover, decrease as the amounts sold per full-time sales-person in- crease. Generally speaking, the greater rapidity of turnover for the stores in the large cities more than compensates for the disadvantage under which they operate so far as pajTnents for wages and salaries in relation to sales are concerned. It will be remembered that stores of not widely different size are in- volved in this comparison. The prac- tical significance of the conclusions seems to be that merchants, doing a given amount of business, have lower amounts of wages and salaries in terms of sales in the small than in the large cities, but that they have higher expenses of the same type when measured in terms of sales per turn- over. Table 173 is similar to Table 172. The same stores are included and the method of grouping them is identical. The only additional feature of Table 173 is that expenses attributable to wages and salaries are expressed in 252 terms of sales for each $1,000 sold per full-time sales-person. When the amounts are shown in this form, the stores in the small cities, when treated as a whole, retain their advantage. When those having the same amounts of sales per full-time sales-person, but differently located, are compared, two of the groups in the small cities have smaller amounts than those in the large cities, and three have larger amounts. The effect of location and amounts of goods sold per full-time sales-per- son on wages and salaries may also be measured by expressing wages and salaries in terms, first, of selling ex- pense ; and, second, of selling expense per stock turnover. This is done in Table 174 by using the same stores as those studied in Tables 172 and 173. Out of every $100 of selling expense, wages and salaries constitute $72.69 for the stores in the small cities and $68.09 for the stores in the large cities. Moreover, with the exception of one case, the amounts stand in this order for stores with different loca- tions, but with equal amounts sold per full-time sales-person. Within each city-group there is little or no tendency for the amounts to increase or decrease as the amounts sold per full-time sales-person increase. When, TABLE 173 AMOUNT OF VT'AGES AND SALARIES PER $100 OP TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR STORES WITH SALES OF $40,000 TO $80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 31 •• Amount of S>les par Piai-tiHB Sftlea-peraon (In OOO'a) irvonbor of Storaa nagaa and Salarloa p«r $100 of Total Ket Salea Wa««a and Salarloa par $1,000 or Sale par $100 of total Hat BalM a par Pull-tljra Salaa-pareoft of Clt, (In OOO'a) Aaount far Cant. laomt For Cent. Orapblo 20 40 60 80 100 120 140 160 Aetuaa > 20 40 60 eo Oraphlc 100 120 140 160 180 2O0 220 Actual Total (i»er>eo) 103 $5.40 100.0 $0.32 100.0 VDia $12 $12 to $16 $16 to $24 $24 to $S2 $32 4 o«r 16 54 31 » e.es 6.29 4.69 S.49 3.0O 123.1 116.9 86.9 101.7 55. 6 0.6« 0.44 0.25 0.20 0.07 206.3 1S7.S 78.1 62.5 21.9 CATOr&go ) ^^^^ Total (Averneo) 89 5.34 98.9 0.32 100.0 i Undsr $12 $12 to $16 $16 to $S4 $24 to $S2 $32 i onr 14 29 29 6 U 6.92 6.31 4.7a 4.08 2.92 128.1 U6.9 88.5 75.6 54.x 0.68 0.44 0.26 0.15 0.07 212.5 137.5 81.3 46.9 21.9 Onoor ^" 40 '^"^^^^T" ^- — i Total (Averaga ) 14 S.76 10S.7 0.33 103.1 Under $12 $12 to $16 $16 to $24 $24 to $32 $32 k over 2 6 2 S 2 4. 57 6.24 3.63 8.02 S.56 e«.6 115.6 67.2 148.7 65.9 0.48 0.42 0.17 . 0.50 o.oe 150.0 131.3 53.1 93.8 25.0 — ■ 1 — 253 TABLE 174 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- OVER, FOR STORES WITH SALES FROM $40,000 TO $80,000, CLASSIFIED BY SIZE OF CTTY AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 Averes" ^^SS Average tSS.DS however, the amounts of wages and salaries per $100 of selling expense are shown per stock turnover, rather different conditions follow. The aver- age amount expressed in this form for the stores in the small cities is $42,76. For those in the large cities it is $32.42. Moreover, in each group of stores, classified by the amounts of sales per full-time sales-person, the amounts are larger with one excep- tion for the stores in the small than for those in the large cities. In addi- tion, the differences between the amounts in the large cities and those in the small cities are more marked when amounts of wages and salaries are expressed in terms of selling ex- pense per stock turnover, than when shown in terms of selling expense alone. Within each city-group, the amounts of wages and salaries per $100 of selling expense per stock turn- over decrease as the amounts per full- time sales-person increase. For the stores in the small cities there is no exception to this rule and for those 254 in the large cities, even with the few stores considered, only two exceptions. The possibilities of reducing wages and salaries as a part of selling ex- pense for each stock turnover by stimulating sales may be shown con- cretely if the group of 89 stores located in small cities is used for illustrative purposes. For the stores in which salesmen sold less than $12,- 000, the amount of wages and salaries per $100 of selling expense for each stock turnover was $49.04, while for the stores in which salesmen sold $32,- 000 and over the corresponding amount was $29.92. Between these limits, as amounts sold per full-time sales-person increase, a saving is shown for each group of stores. Sim- ilar, but less certain advantages through stimulating sales may also be observed by considering the stores in the large cities. Still another method of stating the amounts of wages and salaries for stores classified by location and by amounts sold per full-time sales-per- son may be used to advantage. In Table 175 the amounts of wages and salaries per $100 of selling expense TABLE 175 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER PULL-TIME SALES-PERSON, FOR STORES WITH SALES FROM $40,000 TO $80,000, CLASSIFIED BY SIZE OF CITY AND AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 Imount of Sales per P\iU-tlJM Salae-poraon (la OOO's) Nnmbar of Stoma Wa^a and Salarlaa per $100 of Selling Sxpenae Itagea and Salaries per $100 of Salllog Szpsnss per $1,000 of Sales par Pull-tljiia Saloa-parsoa of city (In OOOS) /taKmat' Per Cent. Amoant tar Cent. Orapmo 1 Actual > 20 40 60 eo 100 12o' O"'*^" 1 Actual 20 40 60 80 100 120 140 160 ISO Total (ATsraga ) 103 $71.03 100.0 $4.33 TIndar |12 $12 to #16 tlS to t34 $24 to $32 $32 k om IS 34 31 9 IS 73.52 73.04 71.26 76.43 59,40 102.2 101.5 99.1 106.5 82.6 7.31 6.03 S.77 2.83 1.40 Total UTorag*) 1 ; — Total (iTarags) ea 72.89 101.1 4.42 T)a6m $12 $12 to $16 $19 to $24 $24 to $as $32 h 0T«r 14 29 29 « U 73.56 74.54 73.37 72.59 59.83 102.3 103.4 102.0 100.9 83.2 7.26 5,15 3.92 2.66 1.42 : : — Total (Averaga ) 14 68.09 94.7 3.86 Under $12 $12 to $1S $16 to $24 $24 to $32 $32 & over S s 2 S 73.03 66.es 49.97 80.33 97.27 101.5 93.0 69.5 ur.7 70.6 7.69 4.55 2.38 3.03 1.36 iO and 1 55.0 2B.1 Averag9 $71.93 ATora^ $4.33 255 for each $1,000 sold per full-time sales-person are shown for the stores classified as in Table 173. The bases of classification are location and amount sold per full-time sales-per- son. The amounts of wages and salaries in terras of selling expense for the stores thus classified are made fully comparable from group to group when they are put on a $1,000 basis. The actual amounts with the graphic representation are shown in the right hand columns of Table 175. Stated in this form, the amounts of wages and salaries for stores in the small cities are relatively high and for those in the large cities relatively low. That is, the amounts stand in the same relative position as do those in which the unit is selling expense alone. Within each city-group they decrease rapidly as the sales per full- time sales-person increase, the abso- lute and percentage reductions in the small and large stores being, respec- tively, $5.84 or 80.4 per cent., and $6.43 or 83.6 per cent. D. — Summary. (1), From year to year, the amounts of wages and sal- aries, in terms of sales alone and of sales per $1,000 sold per full-time sales-person de- creased. This condition holds generally for all stores and also for stores classified by size and by amount sold per full-time sales-person. (2). From year to year, the amounts of wages and sal- aries per $100 of selling ex- pense per $1,000 of sales per full-time sales-person de- creased. (3). The amount of sales per full- time sales-person increased between 1914 and 1918, and 1918 and 1919. (4), Wages and salaries in terms of sales, of selling expense, and in terms of either per stock turnover or per $1,000 sold per full-time sales-per- son, decrease as the amounts of sales per full-time sales- person increase. This holds for all stores and for stores of a given size. (5). For stores with a given amount of sales per sales-per- son, the amounts of wages and salaries per $100 of total net sales and per $100 of total net sales per stock turn- over increase as the stores in- crease in size, while the amounts of wages and sal- aries per $1,000 sold per full- time sales-person decrease as stores increase in size. (6). For stores with a given amount of sales per full-time sales-person, the amounts of wages and salaries per $100 of selling expense, per stock turnover, and per $100 of selling expense per $1,000 sold per full-time sales-per- son decrease as the stores in- crease in size. 256 (7). The amounts of sales per full- time sales-person increase as the size of the store increases, and decrease as the wages and salaries per $100 of total net sales increase. (8). The amounts of sales for each $100 of wages and salaries decrease as the stores increase in size and increase as the amounts sold per full-time sales-person increase. (9). When stores of a given size are classified by size of city in which they are located, wages and salaries per $100 of total net sales, expressed either in simple or in complex units, decrease as the sales per full-time sales-person in- crease. (10). "When stores of a given size are classified by size of city in which they are located, the amounts of wages and sal- aries per $100 of selling ex- pense alone tend neither to increase nor to decrease, while the amounts in terms of both selling expense per stock turnover and selling expense for the amount sold TABLE 176 AMOUNT OP WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- OVER, FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF PAYING REGULAR SALESMEN, 1919 Cluslfle« To til net E«le= BettKxl of C«iqwna«tloa Ifumber or Stores Bages and Salaries per JlOO of Total Set Sales Wages and Salarlea per (100 of Total Net Sales per Stock Turnover Ajaoxtnt Per Cent. Aaount Per Cent, Oraphle j ^^^^^ ) 20 40 60 80 100 120 140 Orophli: | Actual 20 40 60 80 100 120 140 160 Total (ATCrago ) 254 $6.17 100.0 *2.94 100.0 Total (Average ) Straight Salary Salary h CoraniEfilon lav 57 5.98 6.55 96.9 105.8 2.99 2.72 — Total (AyOTBge) 26 4.58 71.0 2.92 99.5 ttodcr i40 Straight Salary Salary k CoiraalaBlon 25 5 4.52 5.86 73.5 £2.6 3.01 2^ 102,4 87.4 Total jAToraee) 97 S.'-C 88. S S.05 103.1 I »« to ^ Straight Salary Salary k CoiailssloQ 65 12 5.58 4.68 90.4 75.9 5.10 2.60 10S.4 88.4 Total (Average ) 89 6.68 108. S 5.52 $80 to }183 Stna^t Salary Salary Jt Commission 65 24 6.;2 7.58 102.4 122.9 5.16 145.2 ■ Total (Average) 40 6.18 100.2 2.29 $160 & oytT Straight Salary Salary k Comliclon 24 16 97.6 102.6 • 82.0 69.7 6.54 2.0^ Average (2.94 257 TABLE i: AMOUNT OF WAGES AND SALARIES PER $100 OP TOTAL NET SALES PER $1,000 01 SALES PER FULL-TIME SALES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF PAYING REGULAR SALESMEN, 1919 ClUfiriad Ucthod or Mu>l>or of Storoa aacea an] Salaries per $100 or Total Not Salea Wages Qftd Salaries por JlOO of Total Met Sales per ;i,000 of Sales per P-.ll-tliao Saloa-porson Aaio'inC Per Cent. Ajno^mt Per Cent. (m ooo'ai <='-■*■'' 1 Act.«l ■) 20 40 60 80 100 ICO laO *'"-'= 1 Actual m 40 so 00 100 120 140 To tad 364 J6.17 100.0 iO.JO Tot.l SCralgnt Salarr Salary ti Corrilssloc 19T S7 S.98 6.SS 96.9 105.8 0.30 0.32 100.0 106.7 U.cr.. y ) Total (Aver«*:a J 28 4.38 71.0 0.25- 83.3 Dba*r ^0 23 9 4.52 3.86 73.3 62.6 0.27 0^15 90.0 50.0 ' Zmlmrj A Comlaslon — 1 Total 97 S.4« 88.5 0.53 110.0 $40 to Sao (AYcrag.) 83 12 9.58 4.68 90. a 75.9 0.24 0.30 113.3 100.0 iAltrj a Coauaalcm Total 69 6.e8 108.3 0.34 U3.3 tBO to $1S0 Uwrago) 65 24 6.J2 7.58 102.4 122.9 0,33 0.37 110.0 123. J fi»l*rr k COBWllStOD Total 40 6.18 100.2 0.26 86.7 8lS0 k oTor (ATOrage) ; 24 16 B.02 6.34 97.6 102.8 0.23 0.30 76.7 100.0 -«-i»i6E- .»«^«r7 J . Avaroge J6.17 Avcrago )0.3O per full-time sales-person de- crease as the sales per full- time sales-person increase. (2) — YEARLY AMOUNTS OF WAGES AND SALARIES IN RELATION TO THE METHODS BY WHICH SALES- MEN ARE PAID. Tables 176 to 183, inclusive, are submitted as throwing light on tbe question — Are wages and salaries, wlien measured in terms of sales, or selling expense alone, or when com- bined with stock turnover, and sales per full-time sales-person, higher or lower in stores where straight salaries are used than in stores where salaries and a commission or a bonus are paid to salesmen? A. — YEARLY AMOUNTS OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES AND PER $100 OF SELLING EXPENSE, FOR STORES CLASSIFIED BY SIZE, 1919. Without repeating the substance of the discussion on pages 118 to 127, which had to do with an analysis of total selling expense in terms of sales and total operating expense for stores paying their salesmen by different methods, it will suffice to summarize 258 the data in Tables 176 to 183, inclu- sive, bearing upon the amounts of wages and salaries paid to salesmen in stores which pay their salesmen according to the methods indicated. In these tables, the stores are clas- sified, first, by size, and second, by the methods of compensating regular salesmen, distinction being made for the stores using straight salaries as contrasted with those which use sal- aries and commission. When wages and salaries are ex- pressed in terms of sales, as in Tables 176 and 177, the average amounts are lower for stores using straight salaries in five, and lower for stores using salaries and commission in seven of the groups.* When they are ex- pressed in terms of selling expense, as in Tables 178 and 179, they are lower for straight salaries in three and lower for salaries and commission in nine of the groups. In these group- ings both the simple and complex units are counted. When the amounts are expressed in terms of $100 of sales and $100 of selling expense, they are lower where straight sal- aries predominate in three of the groups and where salaries and com- missions are used, in five of the groups. When they are expressed in terms of sales and selling expense per * The low averages in the various tables are underlined. TABLE 178 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- OVER, FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF PAYING REGULAR SALESMEN, 1919 Method of Conpenaatlon of ,.i.,.o3 or.u EalaS-los por ClOO of Selllnc iiponso Viagea and Solaries per ilOO of Selling Ejqjonse per Stock Tijrnovcr Total Per Cent. Ajnount Per Cent. (In OOO'o) . Airto>jjit Ciaphlo 1 Aotual 20 40 60 60 100 120 14ol Graphic 1 Aotual -20 40 60 60 100 120 140 160 180 Total (Average) 254 063.21 100.0 *30.10 100.0 Total (*vor«c«) Strnlebt Salary Salary t Coinnloslon 197 57 84.83 60.48 102.7 95.7 32.45 25.20 107.0 : Total (Averace ) 23 71.97 113.9 47.98 159.4 Dbder Uo Stral^t Salary Salary & CoinntSBlon 23 S 77.16 55.13 ! 122,1 87.2 51.44 170.9 122.1 ■ Total (Average) 97 72.24 114.3 40.13 133. S i (40 to $80 Straight Salary Salary & CoimlaBlon 85 12 72.92 67.39 115.4 106.6 40.51 37.44 134. S 124.4 Total (Average) 89 66.60 105.4 35.05 116.4 »80 to $180 Stralgtt Salary Salary h Comnieslon 65 24 66.23 67.40 ' 104.8 106.6 33.12 37.44 '< UO.O 124.4 Total (Average) 40 57.84 91.7 21.46 71.S : tlSO t orar Straltht Salary Salary & Conslselon 24 16 58.91 56.99 93.2 90.2 23.56 18.38 78 .5 £1.1 Average $65.31 259 TABLE 179 AMOUNT OF WAGES AND S.VLARIES PER $100 OF SELLING EXPENSE PER $1,000 OP SALES PER FULL-TIME S.VLES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY METHOD OF PAYING REGULAR SALESMEN, 1919 Method of Coc;>«nsfttlon Hunger of Storef naees and Salaries per JlOO of Selling Expense tiaee; ana Salarioa per SlOO of Selling Eipenae per vl.ooo of Sales per Pull-tlna Salee-pereon let.l ABOunt Per Cent. Awnmt Per Cent. (IB OOO'c) Graphic 20 40 60 80 100 120 140 Actual **"• JAetual 1 20 40 60 80 100 120 140 160 (Averoge) 2M ♦ej.21 100.0 ♦S.ll 100.0 Tctid StTAleht Sftlu*7 SaJvT & Comlssloa 197 57 64.89 60,48 1 102.7 95.7 5.21 2.95 103.2 94.9 Unr^EP) ; i 7y>t«l (A.or.c) ZB 71.97 11S.9 4.05 130.2 1 : tkxlar i*0 Str«lE)it S«lar7 Salary & Congnlaslon 6 77.16 65.15 122.1 67.2 4.57 2^19 liO.e 70.4 : lyjtal (Averaao) 97 72.24 m.j 4.42 142.1 »«0 to $80 Sti-algjit Salary Salary fc Cornnlaslon 85 12 72.92 t7.S8 115.4 106.6 4.43 4.M 142.4 139.2 : Total (Avoraga) 69 66.60 105.4 3.43 110,3 480 to tiBO Stralcht Salary Salary k Cmnlealon &5 24 66.23 67.40 104.8 106.6 3.48 3.31 111.9 106.4 Total (Avarege) 40 57.94 91.7 ' 2.45 78.6 : tUlO k over Stral^t Salary Salary It Comnlaalon 24 IC 56.91 56. S9 95.2 90.2 2.23 2.68 71.7 86.2 ■ Averoge $03-21 turnover, they are lower in two of the groups where salaries alone are used and lower in six of the groups where salaries and commissions are em- I)loyed, When they are expressed in terms of sales and of selling expense per $1,000 sold per full-time sales- person, the amounts are lower in three groups where straight salaries are used, and lower in five cases where salaries and commissions are used. No account is taken of groups wherein the amounts are identical. Cumulating this evidence, it is found, when all measures are used, that the amounts are lower where salaries and commissions are employed in sixteen, and lower where salaries alone are used, in eight of the cases. Obviously, the tables in question have other iLses than those of indicat- ing the relative advantages, so far as expenses are concerned, of using dif- ferent methods of compensating sales- men. The norms or standards them- selves are of interest, reflecting, as they do for a rather large experience, the conditions which obtain in retail clothing stores. Tables 180 to 183, inclusive, show the amounts paid to salesmen in stores classified by size and by the use or non-use of bonuses. In terms of sales, the amounts of 260 wages and salaries, as shown in Tables 180 and 181, are lower in every case except one where stores paid no bonuses. When they are expressed as proportionate parts of selling ex- pense, as in Tables 182 and 183, they are lower where no bonuses are paid for seven groups of stores and lower where bonuses are paid in five of the groups. "When they are measured in terms of sales and of selling expense alone, as in Tables 180 and 182, they are lower in seven cases where bonuses are not used and lower in one where they are used. When they are expressed in terms of sales and of selling expense for each turnover, as in Tables 180 and 182, they are lower where bonuses are not paid in six of the eases and lower where bonuses are paid in two of the cases. When they are expressed in terms of sales and of selling ex- pense per $1,000 sold per full-time sales-person, as in Tables 181 and 183, they are lower where bonuses are not paid in five, and where bonuses are paid in two of the cases. Cumu- lating the evidence, therefore, the amounts, when measured in all the different units, are lower in eighteen cases where no bonuses are paid, and TABLE 180 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- OVER, FOR STORES PAYING OR NOT PAYING A BONUS TO REGULiVR SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 Method of Conpo nfi a 1 1 on Number of Stores Wa^cs and Salaries per $100 of Total Net Sales IVages and Salaries per $100 of Total Net Sales per Stock Turnover Totcl Set Bales Amount Per Cent. An aunt Per Cent. (In OOO'b) Graphic 1 ^^^^j ) 20 40 60 80 100 120 '"'^^'' 1 Actual 3 20 40 60 80 100 120 140 Total 254 06.17 100.0 $2.94 100.0 Total (Average) T/ltb Bonus Ti'lthout BonuB 60 194 6.85 5.82 ; 110.7 94.3 2.97 2.77 ' 101.0 94.2 ; 1 ; Total (Average) 28 4.58 71.0 2.92 99.5 ; Dnder J4C Wltb BonuB without BonnB 5 23 4.78 4.30 77.5 69.7 3.19 2.e7 108.5 97.6 : Total (Avorage ) S7 5.46 88.5 3.03 (40 to $80 \!lth Bonus Without Bonus a4 65 6.69 5.24 108.4 84,9 3.55 3.08 113.9 104.8 1 i Total (Average) 69 6.68 108.5 3.52 119.7 Sao to $180 Blth Bonus Without Bonus 26 63 7.16 6.4e 116.0 105-0 3.77 3.41 123.2 116.0 : Total 40 6.18 100.2 2.29 77.9 T.'lth Bonus T;ithout Bonus 15 25 6.73 5.70 ; 109.1 92.4 2.59 2.04 : B8.1 69.4 1 ! : Averaee $6.17 Average $2.94 261 TABLE 181 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON FOR STORES PAYING OR NOT PAYING A BONUS TO REGLT.AR S.VLESMEN, CLASSIFIED BY SIZE OF STORE, 1919 Uetbod of Coi-poMotion Kujnbor of Stores Wages and Salaries per ^100 of Total Net Sales iVases and Solortes per ClCO of Total Kot Sales per $1,000 of Sales par Pull-tine Sales-peraon Total Hot Sal*s Amount Per Cent. Amount Per Cent. Qraphle 1 ;,^.^^i 20 40 CO 80 100 120 Graphic 1 ^^,,,^1 : 20 40 60 80 100 120 140 Total (Avcraco) 254 06.17 100.0 $0.30 TotU nith Bonufl Ulthout Bonijis 60 194 6.83 5.02 110.7 94.3 0.30 0.30 100.0 100.0 ; 1 Total (Avorogo ) za 4.J8 71.0 0.25 83.3 Under C-»0 Kith Bonus Mthout Bonus S 23 4.78 4.30 77.5 69.7 0.27 0.24 90.0 80.0 Total (Avc-ra-c) 97 5.46 80.5 0.33 110.0 : £40 to Seo Kith Bonus riltbout Bonus 14 83 6.69 5.24 108.4 84.9 0.38 0.33 126.7 110.0 : Totnl (Avorace ) 89 6.68 108.3 0.34 U3.3 Sso to JlSO ■..Ith Bonus V;lthout Bonus 26 6; 7.16 6. '.a 116.0 105.0 0.36 0.34 120.0 113.3 Total 40 6.ie 100.2 0.26 86.7 $130 & over Wltli Boms Witliout Bonus IS 25 6.73 5.70 109.1 92.4 0.26 0.26 86,7 86.7 1 Average ^.17 Average 0C'»3O lower where bonuses are used in five cases. From the evidence available, it seems safe to conclude that bonus pay- ments, having little or no relation to salesmen 's activities, result in making wages and salaries relatively high. On the other hand, when commissions are paid, salesmen's activities are stimulated with the result that wages and salaries in terms of sales are rela- tively lower under such conditions than when straight salaries alone obtain.* * A somewhat different conclusion was reached in the discussion of total selling It is not contended, of course, that these data prove a causal connection between the method of paying sales- men and the expenses involved. With another selection, or with a more gen- erous sampling of stores, the conclu- sions might have been different. The tables are incorporated in the study largely because they represent the information available, and they may be useful in the establishment of expense in relation to the methods by which salesmen are paid. Obviously, it is more satisfactory to rest the case in this respect on conclusions drawn from an analysis of wages and salaries alone than from an an- alysis of tlie total selling expense into which enter expenses other than wages and salaries. 262 TABLE 182 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- OVER, FOR STORES PAYING OR NOT PAYING A BONUS TO REGULAR SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 ClacElflcd Total Net Sales Method or CompenBBtlon Number or Stores nages and Salaries per JlOO of Selling Expense Wages and Salaries per $100 of Selling Supensa per Stock Turno«er Amoiint Per Cent. Amo^int ( Per Cent. (In OOO's) Grapblo 1 lActual D 20 40 60 80 100 120 140 Graphic 1 1 Actual 20 40 60 80 100 120 140 160 180 Total (Avci-nce) 254 $63.21 100.0 $30.10 100.0 1 Total T;ith Bonus iVlthO'it BoiTiS 60 194 62.33 . 63.76 93.6 100.9 27.10 30.36 90.0 100.9 (Average) ^^^^"'^^ : Total fAverago) 28 71.97 113.9 47.98 i ; Under $40 '.ilth Bonus './Ithout Bonus 5 23 78.98 70.54 124.9 111.5 52.65 47.03 1 ' 174.9 156.2 ' Total (Avorago) 97 72.24 114.3 40.13 : 133.3 i4o to ;eo '.VI th Bonus ■Jit.-iout Bonus 14 83 80.78 70.54 127.8 111.6 40. J? 41.49 134.2 137.8 1 II Total (Average) 89 66.60 105.4 35.05 116.4 ; ^^ iSO to Jl60 '.Jlth Bonus without Bonus 26 63 65.04 67.36 102,9 106,6 34.23 35.45 113.7 117.8 Total (Average) 40 57.94 91.7 21.46 71.3 ; Jieo l over Wltil Bonus VJltllout Bonus IS 25 59.10 66.82 93.5 69.9 22.75 20.23 75.5 67.4 1 Averaso §63, 21 Average $S0.10 norms for the guidance of merchants in this field of distribution. 4. — YEARLY AMOUNTS OF WAGES AND SALARIES IN RELATION TO THE EX- PENDITURES FOR RENT AND INVEST- MENTS IN FIXTURES, FOR STORES CLASSIFIED BY YEARS, BY SIZE, AND BY LOCATION. The discussion of the amounts of wages and salaries follows that for the corresponding section relating to total amounts of selling expense, and utilizes, in most respects, the same units of comparison.* * The methods by which these units are computed are erplained on page 4. (1) — YEARLY AMOUNTS OF WAGES AND SALARIES IN RELATION TO EXPEN- DITURES FOR RENT PER 100 SQUARE FEET OF FLOOR SPACE. The same 303 stores which are used to determine the relation of selling expense to expenditures for rent per 100 square feet of floor space, are analyzed below in the study of wages and salaries for stores similarly grouped. The records are available, in the detail given, for 1919 only. In view of the discussion of selling ex- pense in relation to expenditures for rent, it is necessary in the treatment of wages and salaries to print only 263 TABLE 183 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER FLXL-TIME SALES-PERSON, FOR STORES PAYING OR NOT PAYING A BONUS TO REGULAR SALESMEN, CLASSIFIED BY SIZE OF STORE, 1919 Uathod or ConponAatlon Nunbar of Storoo Vaces and Salaries par llOO of Selling Expense nagea and Salaries par $100 of Selling Sxpeoae per $1,000 of Sales per Pull-time Salea-poraon Total Amount Per Cent, Amount Per Cant. «T of Storoa Vmgoa and Salarlaa p«r IllOO of Total Rat Salae Wages and Salarlea por flOO of Total Hot Solea par Salaa per Square Poot of Floor Space ciusiri*d Tot«l AS^TUBt Per Cant. ^ Par Cant. (In OOO'b) Orapblo 20 40 60 80 100 120 140 160 Aotual 3 20 40 60 80 100 120 140 160 180 Tot»l (ATer»Fo) 503 16.54 100.0 t0.2« 100 .o UaieT tCO ISO to |40 |4o to leo jeo 4 over 54 120 65 66 9.28 5.75 7.27 5.97 141.9 67,9 111.2 91.5 0,55 ■ «.:o 0.27 O.IS 211. S* 11S.« 109.S 61. S (ATe>r«s») ^^^^^^ ; TDt*l (Avars r«) 4S 4.48 68.5 0.51 U9.2 Oador ISO ISO to |40 J40 to »60 |60 k ever 10 2S 7 S 5.25 5.90 4. 59 6.59 eo.o 59.6 69.7 100. s 0.64 0.25 0.29 0.21 246,2* 88. S lll.S 80.8 Tbilcr |40 : 1 1 Tot»l (ATorapo) lis 5.09 77.8 0,27 103.8 ! Dndor tZO ISO to |40 |40 to leo |60 4 over 16 48 25 E6 5.01 4.41 5.42 6.00 76.6 67.4 82,9 91.7 0.50 0.25 0.25 0.20 192.5* 88.5 96.2 76.9 ^"*"^"" • Tot«a (ATor*^ } 1C2 6.54 100.0 0.28 107.7 Onler ISO ISO to |«0 |40 to |60 ISO 4 ovor 6 41 25 52 6.64 6,60 6.55 6.se 101.5 104.0 97.1 9T,2 0.42 0.55 0,25 0.19 161.5 1S4.6 S6.2 7S.1 |30 to llBO : I 1 Tot»l (Aversge ) 45 7. so U1.6 0,21 80 .8 Under ISO ISO to |40 ♦40 to 160 |eo k oTor 2 6 10 2S IS. 69 5.85 e.55 5.78 209.5* 89.4 150.7 88.4 0.52 0.25 0.23 0.15 123.1 96.2 107.7 67.7 Siao h crm B. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales mid per $100 of Selling Expense, for Stores Classified hrj Size of City in Which Located* 1919. The actual amounts of rent paid, as well as the relations which they * Population figures are for 1920. Avera^ $0.20 *Pull length not ahcvn bear to the floor space utilized, are determined in large part by the size of the city in which the stores are located. Accordingly, it was neces- sary to classify by location the 303 stores studied in Tables 184 and 185. Two city-groups have been used for this purpose — those with population under 40,000 and those with popula- tion of 40,000 and over. For each 266 group of stores, as located, a further classification has been made accord- ing to the rent expenditures per 100 square feet of floor space. For each group of stores in this detail, the amounts of wages and salaries per $100 of total net sales and per $100 of total net sales for the amounts sold per square foot of floor space have been determined. They are shown in Table 186. For the 225 stores located in the small cities and for the 78 stores located in the large cities, there is no unmistakable tendency for the amounts of wages and salaries per $100 of total net sales to increase or to decrease with the amounts ex- TABLE 185 AMOUNT OF WAGES AND SALARIES PER $100 OP SELLING EXPENSE PER SALES PER SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 ClUBlfl«4 Total Bst Salee H»ot per 100 »«. ft. of Floor Spue IhjKbor of StorOB Wages and Salaries per $100 of Selling Scpense Wagos end Salaries per $100 or Selling Expeose per Sales por Square Foot of Floor Space Aaonut Per Cent. Amount Per Cent. (IB OOO'l) Oraphlo } 20 40 60 eo 100 120 140 Aehial Or^I^c 1 Actual 20 40 60 80 100 120 140 160 180 200 Total (ATorago ) SOS $6S,S6 100.0 $2.59 1 : ttedar tZO 120 to $40 $40 to |60 »60»ovor 94 120 63 86 77.6» 70.59 68. 6» 56.41 U6.9 106.9 104.3 88.7 4.63 3.63 2.68 1.61 178.8 140.2 99.6 62.2 Total (Averegcl ■— ■" Total (Avorago) 4S 69.37 lOS.S 4.S4 DniJsr $20 $20 to $40 $40 to $60 $60 & OTor 10 2S 7 71.61 67.56 ee.so 7S.76 ioe.7 102.3 105.7 115.0 8.71 3.96 4.41 2.40 336.5^ 152.9 170.3 92.7 Older $40 Total UT»rag») US 71.51 108. S 5.82 147. S Qidu- $20 $20 to $40 $40 to $60 $60 ft OTor 16 4a 23 26 75.57 69.61 71.73 71.10 114.8 105.7 108.9 loa.o 7.50 3.69 S.SO 2.55 289.6' 142.5 127.4 90.0 »4o to »eo "J"J"" Total (AToraga) 102 66.79 ; 101.4 2.85 110.0 QvSer $20 $20 to $40 $40 to $60 $60 ft over 6 11 23 32 75.59 72.41 70. SS se.os ; 111.5 110.0 106.9 S8.2 4.68 3.76 2.75 1.78 ieo.7 145.2 10S.4 68.7 teo to Sifio ""■^ ^^^mv^mtM ^^ """"T Total 45 63.73 96.8 1.82 70.3 tbder $20 $20 to $40 $40 to $60 $60 » OTor 2 6 10 25 79.63 65.40 67.38 56, 58 120.9 99.5 102.3 85.9 2.82 2.82 2.22 1.42 108.9 106.9 85.7 54.8 tlSOft onr ^^^^^^^; : -«— AT«r«C» $65*85 Avora^e ^2.S8 *FalX lenc;th not siiama 267 pended for rent per 100 square feet of floor space. The average amount for the stores in the small cities is noticeably less than that for the stores in the large cities. Respectively, they are $5.92 and $7.15. Moreover, the amounts for stores with the same ex- penditure for rent, but with different location, are higher for the stores in the large than for those in the small cities. When the amounts of wages and salaries per $100 of total net sales for the amounts sold on each square foot of floor space are determined for the stores with different location and different expenditures for rent, the average for the stores in the large cities is less than that for the stores in the small cities, and within each, city-group the amounts decrease as the expenditures for rent increase. This tendency is likewise to be ex- pected in view of the general con- clusion that the higher the rent paid per unit of floor space, the smaller is the floor space used for a given amount of sales. Attention should be called to the fact, however, that in Table 186 no distinction is made for stores of dif- ferent size. When a city classifica- tion is used, however, the stores are, on the average, smaller in the small TABLE 186 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER SALES PER SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OP RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 AaOTint of Rent por 100 •q. ft. of noor Spae# Ktjinbcr of Stores Wages and Salaries per iilOO of Total Met Sales Vlagea and Salarlaa per #100 of Total Met Sales per Sales per Square Poot of Floor Spaoe of CltT r''J'"'<: Actual p 20 40 60 no 100 120 140 160 130 200 Total (Average) 303 «65.85 100.0 $2.59 100.0 • Undor S20 t20 to %V1 t40 t6 460 »60 t ovor M 120 63 86 T7.69 70.39 68.63 58.41 118.0 106.9 104.3 88.7 4.53 3.63 2.58 1.61 178.8 140.2 99.5 62.2 Totil III III ■ (Avernge) ; ; Total (ATsrago) 225 71.46 108.5 3.42 132.0 ; Under tZO t20 to ttO t*0 to $60 »S0 a, over 32 110 SI 32 74.08 70.69 72.65 69.64 112.5 107.3 110.3 105.8 6.63 3.42 2.94 2.15 256.0' 132.0 113.5 83.0 Undsr 40 ■II ■ a : Total (Average) 78 61.38 94.0 1.91 73.7 \ Under tZO t20 to Uo ^40 to J60 $60 k over 2 10 12 54 79.63 68.60 64.93 56.21 120.9 104,2 98.6 65.4 1.86 5.08 2.21 1.50 71.8 196.1 as.3 57.9 40 >nd Averasa }65.85 Pull length not shown than in the large cities. This would explain, in part, the difference in the totals for the stores in the two city- groups. Table 187 classifies the 303 stores in the same form as Table 186. The amounts of wages and salaries, how- ever, are expressed in Table 187 as proportionate parts of selling expense. When stores in the two city-groups, taken as a whole, are compared, it is found that the average amount of wages and salaries per $100 of sell- ing expense is $9.58 less for the stores in the large than for those in the small cities. The actual amounts are, respectively, $61,88 and $71.46. Within each city-group, when the stores are classified by the amounts of rent paid per square foot of floor space, wages and salaries become pro- portionately smaller parts of the sell- ing expense as the rent expenditures in terms of floor space increase. There are some exceptions to this general rule, but they are inconse- quential. When the amounts of wages and salaries, as proportionate parts of selling expense, are further expressed in terms of the sales per square foot of floor space, as is done in the right- hand columns of Table 187, the aver- ages are smaller for the stores in the large than for those in the small cities, and in both city-groups the 269 amounts decrease as the expenditures for rent increase. There are some ex- ceptions to this rule, but they are not sufficient to invalidate the general conclusion. C — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified hy Size and hy Size of City in Which Located* 1919. Because of the effect which the loca- tion, as well as the size of stores, has upon the amount of rent paid per square foot of floor space, it has been thought of interest to select for special study a group of 87 stores having sales in 1919 between $40,000 and $80,000, and to classify them accord- ing to their expenditures for rent in terms of floor space. This is done in * Population figures are for 1920. Table 188. This table also includes comparative figures for stores paying $60 and over in rent per 100 square feet of floor space, but differently located. The methods by which amounts of wages and salaries are measured are those which have been used throughout this study. It is worth-while briefly to consider the actual amounts measured in the dif- ferent ways and the tendencies which characterize them under different conditions of rent expenditure. For the 87 stores located in cities with population of less than 40,000, it cost in wages and salaries $5.35 to sell $100 worth of goods. The aver- age amount per $100 of total net sales per stock turnover was $3.15 ; per $100 of total net sales for each $1,000 sold per full-time sales-person it was $0.33 ; and in terms of sales for the amount sold per full-time sales-per- TABLE 188 RELATION OP WAGES AND SALARIES TO TOTAL NET SALES AND SELLING EXPENSE, FOR STORES HAVING SALES BETWEEN $40,000 AND $80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 Anoont of Bent pep 100 io. ft. Floor Space number of Storee Dages and Solarlel per (100 of Total Het Sales Wages and Salaries per (100 of Selling I^:pense of city (In ooo'e) Sales Alone Per Stock Turnover Per (1,000 of Sales per Pull-time Salea-peraon Per Salee per iq. ft. of Floor Space Selling Alone Per Stock Turnover Per (1,000 of Salee per Pull- tine Sales-person Per Sales per sq. ft. of Floor Space ATer*«e 87 (5.56 (5.15 (0.S9 (O.Sl (72.60 (42.71 (4.42 (4.17 Dollar 40 Itoder (20 (£0 to (40 (40 to (60 (60 k OTor U 43 17 14 5.27 4.es 6.11 5.69 2.64 S.08 5.S9 S.S6 C.28 0.29 0.40 0.S7 0.5S 0.26 0.26 0.21 60.82 71.16 72.97 69.97 40.16 44.49 40.54 4J.7S 4.27 4.24 4.76 4.60 6.10 4.00 3.51 e.61 40 md («0 b. over 10 e.40 2.7S 0.37 O.IS 60. 6« 90.29 3.96 2.11 270 son, $0.31. As the amounts expended for rent per unit of floor space in- crease, there is no tendency for wages and salaries in terms of sales alone either to increase or to decrease. This is not true, however, when the amounts are expressed in terms of sales per turnover. The larger the amount of rent paid per square foot of floor space, the larger is the amount of wages and salaries expressed in this unit. A similar increase with the amount of rent per 100 square feet of floor space holds also for wages and salaries expressed in terms of sales per $1,000 sold per full-time sales- person. On the other hand, the ten- dency is equally certain for the amounts, measured in terms of sales for the amount sold per square foot of floor space, to decrease as expendi- tures for rent per 100 square feet of floor space increase. When the amounts of wages and salaries are expressed as proportion- ate parts of selling expense, some- what different tendencies are ob- served. It is unnecessary to comment on these in particular. Those who are interested may consult the table as to amounts and directions of change. It is worth-while, however, to call attention to the fact that location affects the size of the amounts of wages and salaries when measured in terms of sales and of selling expense in stores having the same amount of expenditure for rent. Only a single group of stores — those which spent $60 and over per 100 square feet of floor space — is available for such a comparison. The details are found in Table 188. D. — Summary. (1). \Mien stores are classified by size, the amounts of wages and salaries in terms of sales increase in some and decrease in other groups, while, in terms of sales for the amount sold per square foot of floor space, they consistently de- crease as the rental payments per 100 square feet of floor space increase. (2). For stores of a given size, the amounts of wages and sal- aries in terms of selling ex- pense alone, and in terms of selling expense for the amounts sold per square foot of floor space decrease as the rent per square foot increases. (3). For stores with a given amount of rent per 100 square feet of floor space, the amounts of wages and sal- aries per $100 of total net sales are higher, while per $100 of total net sales, per sales per square foot of floor space, they are lower in large than in small cities. (4). For stores with a given rental per 100 square feet of floor space, the amounts of wages and salaries per $100 of selling expense alone and per $100 of selling expense for the amount sold per square foot of floor space are 271 higher in small than in large cities. (5). When stores of a given size, located in small cities, are classified by the amounts of rent paid per 100 square feet of floor space, wages and sal- aries measured in terms of sales per stock turnover, and of sales for the amount sold per full-time sales-person in- crease, while in terms of sales for the amount sold per square foot of floor space they decrease, as the rental pay- ments per square foot of floor space increase. (6). When stores of a given size located in small cities are classified by amounts of rent paid per 100 square feet of floor space, wages and salaries measured in terms of selling expense for the amount sold per full-time sales-person in- crease and, in terms of selling expense for the amount sold per square foot of floor space, they decrease as the rental payments per square foot of floor space increase. The direction of change is uncer- tain for wages and salaries per $100 of selling expense per stock turnover. (2) — YEARLY AMOUNTS OP WAGES AND SALARIES IN RELATION TO INVEST- MENTS IN FIXTURES PER $100 OP TOTAL NET SALES. The order of the discussion of the amounts of wages and salaries per $100 of total net sales in this section closely follows that for the amounts of selling expense in relation to sales, pages 141 to 164. A. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, 1919, 1918, and 1914. The records of 135 identical stores in each of the years, 1919, 1918, and 1914, are available for the study of the amounts of wages and salaries paid to salesmen for each $100 of total net sales, for stores classified according to the amounts invested in fixtures in relation to sales. The de- tails are contained in Table 189. In 1914 the amount was $7.64, in 1918, $7.48, and in 1919, $7.11. The aver- age for the three years is $7.34. Both wages and salaries increased from year to year, but sales increased the faster. Accordingly, wages and sal- aries in terms of sales decreased. When the stores are classified ac- cording to the amounts of fixture in- vestment, there is a general tendency in the combined and in the individual years for the amounts of wages and salaries to increase as the amounts in- vested in fixtures increase, both being expressed in terms of sales.* In Table 190 the amounts of wages and salaries are expressed as propor- tionate parts of total selling expense. For the stores in the combined years, the average amount is $67.28. In * In 1919 and 1918 the average amounts are relatively large for the stores having less than $2 ])or $100 of sales invested in fixtures. The explanation for these variations is found in Tables 194 and 195. 272 1914 the average amount was $65.83, in 1918, $67.87, and in 1919, $67.54. That is, there was an increase be- tween 1914 and 1918, and a slight de- crease between 1918 and 1919. When the stores are classified by the amount invested in fixtures per $100 of total net sales, there is a general tendency for the amounts of wages and salaries in terms of selling expense to de- crease as fixture investments in rela- tion to sales increase. Inasmuch, however, as the stores from year to year differ in size, and that the TABLE 189 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Plxturo Aeoount per $100 of Total Hat Sales number of Store- years Total net Sales Total Wages & Salaries Wages and Salaries per JlOO of Total Net Sales Amount ( Per Cent. Graphic Actual 3 20 40 60 80 100 120 Total (Average) 405 #40,576,908 ♦2,979,262 *7.34 100.0 trader |2 »2 to U »4 to ^6 #6 t over 72 131 86 116 8,020,930 10,428,502 7,841,253 14,286,443 596,212 652,819 496,580 1,235,661 7.45 6.26 6.33 8.64 Total (Ayerag« ) 86.2 117.7 Total (Average ) 135 18,919,233 1,545,703 7.11 1 t 96,9 i • Dhder (2 »2 to (4 |4 to ^ t6 k over 38 51 £S 25 5,228,703 4,897,266 5,175,841 5.619,423 374,193 278,736 216,764 476, OU 7-16 5.69 6.83 8.47 97.5 77.5 1919 1 ; : 115.4 i Total (Average) 135 13,360,146 999, 983 7.48 101.9 Dhder (2 |2 to U ^ to |6 te & over 20 45 34 56 2,163,476 5,706,654 2,807,944 4,682,071 188,851 242, 626 158,878 409,628 8.73 6.55 5.66 8.75 1918 89.2 77.1 119.2 1 Total (Average ) 135 8,297,630 633,576 7.64 104.1 Under iz is to i4 $4 to $6 (6 & over 14 35 29 57 628,751 1,824,382 1,859,448 5,984,949 33,168 131,458 120,938 348,012 5.28 7.21 6.50 8.73 71.9 98.2 88.6 118.9 1914 1 Average $7.54 273 TABLE 190 TOT.VL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES Ain> SALARIES PER $100 OF SELLING EXPENSE, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Fixture- Aocount per flOO of Total Bet Sales number of Store- years Total Selling Expense Total TTages k Salaries Wages and Salaries per llOO of Belling Expense Yeore Amoxmt Per Cent. Graphic Actual ) 20 40 60 80 100 120 Total (Average) 40S (4,428,098 $2,979,262 #67.28 100.0 Under iZ |2 to i4 |4 to $6 |6 & over 72 131 66 116 858,922 985,648 798,319 1,811,209 596,212 652,819 496, 580 1,233,651 71.58 66.23 62.20 68. U 106.4 98.4 92.4 101.2 (Average) i 1 i Total (Average ) 155 1,992,310 1,345,703 67.54 100.4 1 Under $2 i2 to f4 U to $6 $6 & over 38 51 25 25 555,232 428,443 326,474 702,161 374,193 278,735 216,764 476, OU 69.91 65.06 66.40 67.79 103.9 96.7 98.7 100.8 1919 : : Total (Average) 135 1,473,360 ■ 999,983 67.87 100.9 I Under $2 $2 to $4 $4 to (6 to & over 20 45 34 36 244,748 370,532 867,521 590,559 188,851 242,626 158,878 409,628 77.16 65.48 59.39 69.36 114.7 97.3 88.3 103.1 1918 ; ' Total (Average } 135 962,428 635,576 65.83 97.6 1 Under |2 $2 to $4 |4 to $6 ^6 & over 14 35 29 57 52,942 186,673 204,324 518,489 33,168 131,458 120,938 548,012 62.65 70.42 59.19 67.12 93.1 104.7 88.0 99.6 : :: 1 1914 [ amounts both of wages and salaries and of selling expense are influenced by the size of the store, the absence of a marked tendency of change is to be expected. The relation of wages and salaries to selling expense for stores of different size is discussed later. Average $67.28'/ B. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Ex- pense, for Stores Classified hy Size, 1919, 1918, and 1914. The records of two groups of stores are available for the study of wages 274 and salaries for stores classified by size and by investment in fixtures per $100 of total net sales. The first group — 303 stores — applies alone to 1919. For 1919, 1918, and 1914, the records of 135 identical stores are used. In 1919, based upon 303 stores, it cost $6.54 in wages and salaries to sell $100 worth of goods. As the stores increase in size, the amounts increase, the minimum — $4.48 — char- acterizing the stores with sales under $40,000 and the maximum— $7.30— applying to the stores with sales of $180,000 and over. When the stores are classified by size, and further by the amounts of fixture investments per $100 of total net sales, the amounts of wages and salaries per $100 of total net sales increase as the fixture investments, similarly meas- ured, increase. To this general rule there are some exceptions, but they are neither important nor numerous. The purpose of classifying the stores as in Table 191 is to secure, if possible, an answer to the following question: Are wages and salaries in terms of sales relatively high in stores which have relatively large amounts invested in fixtures in relation to sales ? The results of the analysis make it possible, with certain reservations, to answer the question in the affirma- tive. The stores as grouped are not precisely identical in size, although the variations, on the average, within the groups are not large. Obviously, there are many conditions which de- termine the amounts of wages and salaries. It is the purpose of this analysis to show only the association between high wages and salaries and high fixture investments when both are measured in sales. In Table 192 the amounts of total net sales secured for each $100 of wages and salaries paid, have been calculated for the 303 stores as in Table 191. As the stores increase in size, relatively smaller amounts of sales are secured for each $100 of wages and salaries. For each group of stores, when classified by size, and for the total, there is a general ten- dency for the amounts of sales secured for each $100 of wages and salaries paid to decrease as the amounts in- vested in fixtures in relation to sales increase. In the total-section of the table, the decrease is more apparent than real, depending as it does upon the proportion in which stores of dif- ferent size are included. It is the large stores which have relatively large fixture investments in relation to sales and it is precisely those which have relatively low amounts of sales in terms of wages and salaries paid. Accordingly, the effect of grouping all the stores together as in the total- section is to emphasize the inverse re- lation between sales secured for a given wage payment and the amounts invested in fixtures. A more suitable comparison is found in the details for stores of essentially the same size. For these stores, the tendency for the amounts of sales per $100 of wages and salaries paid to decrease is not uniform, although it is generally ap- parent. Irrespective of any tendency which the amounts may describe, 275 TABLE 191 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 ikaoont of Pljcture Account per llOO of Total Uet Bales Hnnber of Stores Total Ret Sales Total V7age8 t Salaries Wages and Salaries per #100 of Total Net Sales Olasilflad Total Hat Sales (In OOO'a) Amount C Per Cent. Graphic , ^ . Aetnal 20 40 60 80 100 120 140 Total (ATerage) SOS ♦36,195,718 #2,367,501 #6.54 1 Under iz $2 to $4 U to |6 |6 fc over 89 120 46 48 10,793,092 11,972,443 4,736,899 8,691,184 697,444 673,257 318,639 678,161 6.46 5.62 6.73 7.80 98.8 65.9 102.9 U9.5 Total (Average ) Iota! (Average) 45 1,599,886 62,748 4.48 68.5 Cnder $40 Under #2 *2 to #4 $4 to $6 |6 k over 10 16 9 10 323,183 488,941 283,784 303,978 9,608 20,320 16,979 15,841 2.97 4.16 5.98 5.21 45.4 63.6 91.4 79.7 • Total (Average) lis 6,500,336 330,557 5.09 77.8 ^ to $80 Under (2 *2 to $4 »4 tots $6 & over 28 57 17 U 1,609,446 3,371,123 981, 374 538,393 68,619 165,727 69,996 26,215 4.26 4.92 7.13 4.87 6S.1 75.8 109.0 74.5 Total (Average ) 102 11,966,362 784,290 6.54 100. Under $2 |2 to $4 $4 to $6 $6 & over S6 se IS 15 4,187,940 4,268,220 1,658,547 1,871,655 278,765 247,891 123,810 133,824 6.66 s.ei 7.46 7.15 101. a ee.a 114.1 109. S |80 to llSO 1 1 ^1 Total (Average) 43 16,307,134 1,189,906 7.50 111.6 Under t2 |2 to U t4 to #6 |6 fc over 15 11 5 12 4,672,523 3,844,159 1,813,294 5,977,158 340,452 239,519 107,864 502,281 7.29 6.23 6.95 8.40 ' 111.6 96.3 91.0 128.« |180 & OTOr ' ' Avarago |6.64 276 they are significant in themselves as standards obtaining in 1919 for stores of different size having different amounts of fixtures in relation to their sales. For the years 1919, 1918, and 1914, combined and individually, the rec- ords of 135 stores are available for the same type of analysis as that made in Table 191. For the stores for the combined years, as shown in Table 193, it cost in wages and sal- aries $7.34 to sell $100 worth of goods. As the stores increase in size, the ex- pense for this purpose, measured in sales, increases from $5.90 for stores TABLE 192 WAGES AND SALARIES, TOTAL NET SALES, AND AMOUNT OF TOTAL NET SALES PER $100 OF W^AGES AND SALARIES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OP TOTAL NET SALES, 1919 iaoont of Flztura Aecmmt p«r llOO of total Bet Bales Snaber •f Store* TotU Wagei k Salaries Total Bet Salea Total Het Salea per $100 of Hages and Salaries ClMilfled »»t»l let Bale* AaoviBt Per Cent, (IB 000'*) Graphic ^ ^ , Actual 20 40 60 80 100 120 140 160 ISO 200 220 Total (Average) 303 t2, 367, 501 $56,193,718 |l,529 100.0 Under |2 ♦S to ♦« «4 to «6 #€ & over e» 120 4€ 48 6S7,444 673,257 S18,63S 676,161 10,793,092 U, 972, 443 4,736,999 8,691,184 1,548 1,778 1,487 1,282 - total (ATerage) Total (Average ) 45 62,748 1,399,886 2,231 Onder iZ ♦« to »4 t* to |6 t6 4 over 10 16 9 10 8,608 80,520 16,979 15,841 363,183 488,941 283,784 303,978 3,364 2,406 1,671 1,919 Osder Uo 157.4 12&.S Total (Avars Re) lis 330.567 6,500,336 1,966 Under $2 HtoU »4 to»6 t6 i over 28 57 n 11 68,619 165,727 69,996 26,215 1,609,446 3,371,123 981,374 538,393 2,345 2,034 1,402 2,054 >iO to too 153.4 133.0 Total (Average) 102 784,290 11,986,362 ' Under iZ »2 to i4 U to »6 $6 k over 36 36 15 IS 278,765 247,891 123,810 133,624 4.187,940 4,268,220 1,558,547 1,871,655 ; |80 to «150 1,502 112.6 ' 91.5 1,399 ; Total (Average ) 43 1,189,906 16,307,134 69.6 ' ; Under iZ tz to U i* to J6 |6 4 over IS 11 5 12 340,452 239,319 107,854 1 602,261 4,672,525 3,844,159 1,813,294 5,977,158 89.7 105.0 109.9 llSO k over ' ' 1.681 1,1^ Average $1,52» 277 TABLE 193 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF VTAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED Amount of Fixture Account per $100 of Total Nat Sales Hunbar of Store- ys ars Total Hat Sales Total Wages 8c Salaries Wages and Salaries per $100 of Total Nat Sales Classified Total Amount ( Par Cent. (la OOO'e) Graphic Actual ) 20 40 60 80 100 120 140 Total (Average ) 405 $40,576,903 $2,979,262 $7.34 ] 100.0 Under |2 $2 to $4 $4 to $6 $6 tt over 72 131 86 U6 8,020,930 10,428,302 7,841,233 14,286,443 596,212 652,319 496,530 1,233,651 7.43 6.26 6.33 8.64 101.2 35.3 86.2 117.7 Total (Avernga) ' Total (Average ) 112 3,119,809 184,127 5.90 80.4 Under 140 Under $2 $2 to $4 ft to J6 |6 & over 14 28 27 43 403,857 800,159 723,519 1,192,274 18,437 43,360 39,748 82,582 4.57 5.42 5.49 6.93 62.3 73.8 74.8 94.4 j Total (Average) 153 8,672,180 569,961 6.57 89.5 |40 to |80 ttader $2 |2 to *4 %i to $6 ♦6 8: over 20 63 31 39 1,107,291 3,755,597 1,653,451 2,155,341 58,345 214,550 105,559 191,407 5.27 5.71 6.39 8.83 71.8 77.8 87.1 121.0 ; ; Total (Average) 93 11,411,444 851,730 7.46 101.6 Under f 2 »2 to *4 |4 to \& |6 8: ovar 27 33 19 19 3,021,911 3,838,758 2,392,924 2,157,851 211,978 280,742 175,671 132,339 7.01 7.31 7.33 3.45 95.5 99.6 100.5 U5.1 |80 to $180 1 ■ i Total (Average ) 42 17,373,475 1,373,394 7.91 107.8 Under $2 »2 to %A, |4 to $6 $6 8c over U 7 g IS 3,487,871 2,033,733 3,071,539 8,780,477 307,452 114,167 174, 502 777,273 8.31 5.61 5.68 3.35 120.0 76.4 77.4 120.6 loao & over 1 „ Average $7.34 278 with sales under $40,000, to $7.91 for stores with sales of $180,000 and over. Moreover, when all the stores are com- bined, irrespective of size, for the three years, the amounts tend gener- ally to increase as the amounts in- vested in fixtures per $100 of total net sales increase. The same general ten- dency, with certain exceptions, also holds for the stores classified by size. TABLE 194 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 Claaelfled Amount of PlztTU-e Account per #100 of Total Get Sales BoBber of Store e Total Het Sales Total Vages & Salaries Wages and Salaries per $100 of Total Net Sales Total Het Sales (in COO'a) Anoont Per Cent. QrapMo Actual 5 20 40 60 80 100 120 140 Total (Average) 135 ♦18,919,233 tl,345,703 $7.11 ^^^^^^^ ttader (2 «2 to »4 ♦4 to #6 ♦e at over 58 51 23 25 5,228,703 4,897,266 3,173,841 5,619,423 374,193 278,735 216,764 476,011 7.16 5.69 6.83 8.47 100.7 Total (Average) 1 96.1 119.1 Total (Average) 12 374,325 16,031 4.28 ^^^^^ 60.2 Vb&w Uo Under (2 t2 to |4 »4 to $6 |6 k over 2 4 S 3 62,964 129,541 92,703 89,117 1,300 4,969 6,389 3,373 2.06 3.84 6.89 3.78 89.0 S4.0 96.9 53.3 ■^■^■i Total (Average ) 52 2,967,756 167,315 5.64 79.5 J |40 to (80 Under $2 «2 to $4 ii to $6 |6 t over e 28 a 8 470,684 1,658,927 431, 7:16 406,419 22,832 81,234 33,427 29,822 4.85 4.90 7.74 7.34 68.S 68.9 108.9 103.2 Total (Average) 4S 5,603,210 413,967 7.39 103.9 Under $2 (2 to (4 (4 to (6 20 15 7 2,217,649 1,759,679 836, 118 789,764 160,698 117,275 69,094 66,920 7.25 6.66 8.26 8.47 102.0 93.7 115.2 119.1 #80 to |180 ' Total (Average) 23 9,973,942 748,370 7.50 105.5 Under |2 $2 to (4 $4 to $6 ♦6 t over 8 4 5 6 2,477,406 1,349,119 1,813,294 4,334,123 189,363 75,257 107,854 375,896 7.64 5.58 5.95 8.67 107.5 78.5 88.7 121.9 (180 & ever ; ; Average $7.11 279 It may be of interest briefly to call attention to this tendency for the stores which sold between $80,000 and $180,000 worth of goods in any one of these years. The average amount for the entire group is $7.46. For the stores with fixture investment less than $2 per $100 of total net sales, it is $7.01 and for those with a fixture investment per $100 of total net sales of $6 or more, it is $8,45. Between these limits, the average TABLE 195 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOT.VL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1918 Classified Total Bet Sales (In oOO'b) Amount of Fixture Aceonnt per ilQO of Total Bet Sales Total Sages k nages and Salaries -per llOO of Total Bet Bales 20 40 60 80 100 120 140 160 Total (Jlveracfl ) Under. {40 Uo to teo ^0 to $180 tlBO & over Total (Average) $19,360,146 $998,985 $7.48 Dnder $Z $2 to $4 $4 to $6 $6 b oTer Tot»l (Average) 2,165,476 3,706,654 2,807,944 4,662,071 1,117,468 188,851 242,626 158,876 409,628 64,726 Dnder $2 $2 to $4 $4 to $6 $6 h over 124,966 869,792 297,192 425,618 7,595 12,531 14,750 29,850 Total (Average ) 3,239,647 211,586 Under $2 $2 to $4 $4 to $6 $6 8c over 434,936 1,335,132 779,116 690,363 24,785 81,486 45,126 60,187 Total (Average) 3,298,407 242,070 Under $2 $2 to $4 $4 to $6 $6 & over £93,109 1,417,061 654,591 633,646 38,382 109, 697 41,854 52,137 Total (Average) 5,704,723 481,601 Under $2 |2 to $4 $4 to $6 $6 k over 1,010,465 684,669 1,077,045 2,932,544 118,089 38,910 57,148 267,454 8,73 6.55 5.66 8.76 5.79 6.08 4.64 4.96 7.01 6.69 5.70 6.10 5.79 8.72 7.34 6.47 7.74 6.39 8.23 8.44 11.69 5.68 5.31 9.12 100.0 116.7 87.8 75.7 117.0 77.^ 81.3 62.0 66.3 93.7 87.9 76.2 81.6 77,4 116.6 98,1 86.5 103.5 85,4 UO.O 112.9 156,5 75.9 71. 121.9 Average $7.48 280 TABLE 196 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1914 taionnt of Fixture Acconnt per tlOO of Total Bet Sales Htsaber of Stores total Net Sales Total Wages fc Salaries Wages and Salaries per |100 of tstal H«t Sales ClABsiried Total tMoxmt fer Cent. Set Sales (in OOO'a) Oraphle Aetaal 3 20 40 60 80 100 120 140 Total (Average ) 135 t8, 297, 530 ♦635,576 ♦7.64 100.0 Total (Average ) Under $2 »2 to *4 (4 to $6 $6 & over 14 35 29 57 628,751 1,824,382 1,859,448 3,984,949 33,168 131,458 120,938 348,012 5.28 7.21 6.50 8.73 68.1 94.4 85.1 114.3 Total (Average) 63 1,628,016 105,370 6.55 83.1 Under (40 Thider (2 »2 to (4 (4 to |6 |6 & over 8 16 13 S6 215,927 400,826 333,624 677,638 9,542 25,860 18,608 49,358 4.42 6.45 5.58 7.28 S7.9 84.4 73.0 96.3 total 45 2,464,877 191,060 7.75 101.4 f40 to ^0 Oador (2 »2 to «4 |4 to (6 $6 & over 4 13 8 20 201,671 761,538 442,609 1,059,058 10,728 51,828 27,106 101,398 5.32 6.81 6.12 9.57 69.6 89.1 80.1 125,5 Total (Average) 22 2,509,827 195,723 7.80 102.1 Itader t2 ♦2 to U «4 to»6 |6 4 over 2 6 7 7 2U,153 662,018 902,216 734,441 12,898 53,770 65,723 63,332 6.U 8.12 7.28 8.62 80.0 106.3 95.3 112.8 ISO to |180 Total (Average) S 1,694,810 143,423 8.46 110,7 |180 & over Under (2 ♦2 to »4 |4 to |6 t6 at over 1 4 131,000 1,513,810 9,500 133,923 5.25 8.85 68.7 115.8 Average 17.64 281 amounts increase as the fixture in- vestments increase. It should be re- membered in this connection, how- ever, that identical stores from year to year are not included. The sales of all the stores in each year, however, fall within the limits set up for this group, A more satisfactory comparison of the amounts of wages and salaries per $100 of total net sales can be made from year to year for stores of the same size, but with different fix- ture investments in relation to sales. Comparisons of this character can be made by consulting Tables 194 to 196, inclusive, which refer respectively to the years 1919, 1918, and 1914. It will be remembered that, in the analysis of Table 191, the records of 303 stores for 1919 were used. Table 194 contains the records of 135 stores for the same year, similarly classified. Both groups of stores on the whole tend to show that the amounts of wages and salaries per $100 of total net sales increase as the amounts of fixtures per $100 of total net sales increase. It is true that the stores in the two tables are not mutually ex- clusive. All of the 135 stores in the total-section of Table 194 are included in the corresponding part of Table 191 for 303 stores. The reason for selecting two groups of stores was to make use of the widest possible ex- perience of stores for a single year. It is shown in Table 189 that the amounts of w^ages and salaries per $100 of total net sales decreased from 1914 to 1918, and from 1918 to 1919. Such a condition also holds from year to year when these stores are clas- sified by size. ]\Ioreover, from year to year, on the whole, the amounts seem to decrease for stores of the same size with given amounts of fixture investment per $100 of total net sales. It is unnecessary to point out the ex- tent of this agreement or the in- stances in which it does not hold, in- asmuch as the actual amounts are shown in the tables in detail and are available to the reader for such a comparison. In the discussion of the amounts of selling expense per $100 of total net sales, the point was made that fixture investments tend on the whole to be large in terms of sales where selling expenses, in terms of sales, are large. A series of tables, 93 to 96, inclusive, was presented to show this tendency. It is thought to be unnecessary, in view of the fact that approximately 66 per cent, of selling expense is chargeable to wages and salaries, to show similar tables giving the amounts of fixtures per $100 of total net sales in stores with different amounts of wages and salaries in re- lation to sales. The influences which determine the relation of fixtures to sales for stores with different amounts of selling expense, similarly measured, would also operate to determine the amount of fixtures when the stores are classified according to wages and salaries in relation to sales. The amounts of wages and salaries for stores of different sizes and fix- ture investments per $100 of total net sales, may also be expressed as proportionate parts of selling ex* 282 TABLE 197 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 Amount of Fixture Account per $100 of Total net Sales Nuiuter of Storee Total Selling Expense Total Wages !c Salaries Wages and Salaries per $100 of Selling Expense Claeelfled Total Net Sales (In 000*8) Amount Per Cent. Graphic Actual 20 40 60 60 100 120 140 Total (Average) 303 $3,595,401 $2,367,501 $65.65 100.0 Under $2 $2 to $4 $4 to $6 $6 i over 89 120 46 48 984,379 1,083,537 469,533 1,057,952 697,444 673,257 318,639 678,161 70.85 62.14 67.86 64.10 1 107.6 94.4 103.1 97.3 Total (Average ) 1 ; I Total (Average ) 45 90,453 62,748 69.57 105.3 ; Under $2 $2 to $4 $4 to |6 $6 St over 10 16 9 10 14,975 30,114 21,226 24,158 9,608 20,320 16,979 15,841 64.16 67.48 79.99 65.63 Qcder |40 ! 102.5 , Total (Average) 115 463,566 550,557 71.31 108.5 Under $2 $2 to $4 $4 to $6 $6 8c over 28 57 17 n 94,543 240,121 92,359 36,543 68,619 166,727 69,996 26,215 72.58 69.02 75.79 71.74 110.2 104.8 115.1 108.9 $40 to $eo ^^^^; ^y Total (Average ) 102 1,174,364 784,290 66.78 101.4 Under $2 $2 to $4 $4 to $6 $6 !: over 36 36 15 15 401,886 388,373 176,478 207, 627 278,765 247,891 123,810 133,824 69.36 63.83 70.16 64.45 105.3 $80 to $180 106.5 97.9 ' 1 Total (Average) 43 1,867,018 1,189,906 63.73 96.8 Under $2 $2 to $4 $4 to $6 $6 !t over 15 11 5 12 472,975 424,929 179,470 789,644 340,452 239,319 107,854 502,281 71.98 56.32 109.3 05.5 91.5 $180 & over : : Average $65.65 283 TABLE 198 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED Amormt of Fixture Aocount per $100 of Total Hot Sales Bumber of Store- years Total Selling Bzponse Total Wages & Salaries Wages and Salaries p«r #100 of Selling Expense Total ■•t Biaos (In 000'«) Anotmt fer Cent. Oraphlo Actual ) 20 40 60 80 100 120 Total (Average) 405 14,428,098 ♦2,979,262 ♦87.28 lOO.O 1 Xhider $2 »2 to »4 f4 to ^6 #6 Je over 72 131 86 116 832,922 985,648 796,319 1,811,209 596,212 652,819 496,580 1,853,661 71.58 66.25 62.20 68.U 106.4 93.4 92.4 101.8 Total (ATeraga ) ! : 1 Total (Average) 112 263,714 184,127 69.82 103.3 Dtader |2 #2 to U U to t6 ♦6 k over 14 28 87 43 85,981 64,602 58,106 115,086 18,437 43,360 39,748 82,582 71.13 67.12 68.41 71.76 105.7 99.8 101.7 106.7 Older #40 ; ^^^^1 ; ; Total (Average) 153 806,361 569,961 70.68 105.1 IJnder |2 f>2 to «4 *4 to *6 #6 k over 20 63 51 59 78,674 314,078 158,148 255,461 58,345 814,550 105,659 191,407 74.16 68.31 66.81 74.95 110.2 101.5 99.3 111.4 |40 to |80 ; ; Tbtal (Average) 96 1,253,879 861,780 67.93 101.0 uader #2 |2 to |4 »4 to le t6 II over 27 53 19 19 307,174 405,623 274,227 266,855 211,978 280,742 176,671 182,369 69.01 69.21 64.43 68.35 102.6 102.9 95.8 101.6 |80 to «180 1 ; Total (Average) 42 £,104,144 1,373,394 65.87 97.0 1 Va&or #2 ♦2 to U U to to #6 & over U 7 9 15 481,153 201,345 307,839 1,173,807 307,452 114,167 174,502 777,873 73.00 56.70 66.69 66.22 103.5 84.9 84.3 98.4 tlao h over 1 ; ^^^^^^' Average t67.8d 284 pense. This is done for 1919 in Table 197 and for the years 1919, 1918, and 1914, combined and individually, in Tables 198 to 201, inclusive. In 1919, for the 303 stores the records of which are available, wages and salaries constituted $65.85 out of every $100 of selling expense. As the stores increase in size, however, this amount becomes a relatively smaller proportion. The amount for stores having sales of $180,000 and over is $63.73, or 96.8 per cent, of the aver- age. Within each group of stores, when classified by size, there seems to be no definite tendency for the amounts of wages and salaries per $100 of selling expense to increase or decrease with the amounts invested in fixtures per $100 of total net sales. Moreover, the variations in the actual amounts from store-group to store- group in stores of the same size are not large. Table 198 shows the amounts of wages and salaries per $100 of sell- ing expense for 135 stores for the combined years 1919, 1918, and 1914. For these years, wages and salaries constitute $67.28 of each $100 of sell- ing expense. Moreover, for the com- bined years, the amounts generally become smaller proportionate parts of selling expense as the stores in- crease in size. In other words, what is true for 1919 alone is also true for a number of identical stores for the three years combined. When the stores for the combined years are classified by size, there seems to be no clear tendency for the amounts of wages and salaries per $100 of sell- ing expense, in stores of the same size, either to increase or to decrease regularly as the amounts invested in fixtures per $100 of total net sales in- crease. Here, again, the experience for a limited number of stores for the three years combined is similar to that for 1919 when a larger store experi- ence is used. In Tables 199 to 201, inclusive, the amounts of wages and salaries per $100 of selling expense are shown for the years 1919, 1918, and 1914, re- spectively, for the stores classified by size and by their fijcture investments. Attention was called in Table 185 to the fact that the amounts of wages and salaries per $100 of selling ex- pense increased between 1914 and 1918, and decreased between 1918 and 1919. The tendency from year to year for stores of the same size, as shown in these tables, is uncertain. The actual amounts are contained in the table and anyone who is inter- ested may compare them for himself. C. — Yearly Amounts^ of Wages and Salaries per $100 of Total Net Sales, for Stores Classified hy Amounts of Inventory per $100 of Total Net Sales, 1919. In the foregoing discussion, the bases of classification have been years, size of store, and fixture investment per $100 of total net sales. In Table 202, an additional basis of classifica- tion is used for a group of 282 stores for 1919. No cognizance, however, is taken of store size. The stores are classified according to the amounts of inventories which they had at the 285 TABLE 199 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 Amoiint of Fljct'ire Acco'int per tlOO of Total Net Sales Nurober of Stores Total Selling Expense Total Wages & Salaries Wages and Salaries per $100 of Selling Expense Claeslfleil Total Net Sales (In OOO'b) Amount Per Cent. Graphio Aet^^ 3 20 40 60 80 100 120 140 Total (Average) 155 $1,992,510 $1,345,703 467.54 100.0 Dnder $2 iz to U $4 to $6 $6 k over 38 51 23 2S 535,252 428,443 526,474 702,161 374,193 278,755 216,764 476,011 69.91 65.06 66.40 67.79 103.5 96.5 98.3 100.4 Total (Average) ' Total (Average) 12 24,945 16,051 64.27 95.2 Dnfler ^40 Under $2 $2 to $4 $4 to $6 $6 & over 2 4 5 5 5,398 8,215 7,582 5,752 1,300 4,969 6,389 S,87S 38.26 60.50 84.27 58.64 ', 56.6 89.6 124.8 86.3 '. Total (Average ) 52 229,272 167,315 72.98 108.1 Under $2 $2 to $4 $4 to $6 $6 S: over e 28 8 8 29,693 118,454 45,053 38,072 22,832 81,234 33,427 29,822 76.89 68.58 77.54 78.33 113.8 101.5 115.0 116.0 $40 to $80 Total (Average ) 48 587,583 413,987 70.46 104.3 Dnder $2 $2 to $4 $4 to $6 $6 & over 20 15 7 6 226,744 168,668 96,569 95,602 160,698 117,275 69,094 66,920 70.87 69.53 71.70 69.83 104.9 102.9 106.2 103.4 $80 to $180 ] Total (Average) 25 1,150,510 748, 570 65.05 96.3 Under $2 $2 to $4 iA to *6 $6 k ovor 8 4 5 6 275,397 133, 108 179,470 562,535 169,363 75,257 107,854 575,896 68.76 56.54 60.10 66.83 101.8 83.7 89.0 98.9 ♦iSO & over Average $67.54 286 TABLE 200 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OP TOTAL NET SALES, 1918 Amount of Plxtilre Account per $100 of Total Net Sales Kumtier of Stores Total Selling Expense Total Wages & Salaries V(ages and Salaries per $100- of Selling Expenso Classified Total Not Sales (la OOO's) Aaount < Per Cent. Graphic Actual ) 20 40 60 80 100 120 Tcjtal (Average ) 135 $1,473,360 $999,983 $67.87 100. Under $2 $2 to $4 $4 to $6 $6 & over 20 45 34 35 244,748 370,532 267,521 590,559 188,851 242,626 158,878 409,628 77.16 65.48 59.39 69.36 113.7 96.5 87.5 102.2 Total (Average) : : • Total (Average ) 37 92,371 64,726 70.07 103.2 1 Under $2 $2 to $4 $4 to $6 $6 & over 4 3 U 14 9,959 19,976 23,674 38,762 7,595 12,531 14,750 29,850 76.26 62.73 62.30 77.01 112.4 92.4 91.8 113.5 ttlder |40 : Total (Average) 56 299,694 211,586 70.60 104.0 Under $2 $2 to |4 $4 to $6 |6 & over 8 22 15 11 33,916 121,256 65,956 78,667 24.785 81,433 45,126 60,187 73.08 67.20 68.42 76.61 107.7 99.0 100 .8 112.9 #40 to $80 1 t 1 Total (Avera.go) 28 363,676 242,070 66.56 98.1 1 ttadar $2 ♦2 to $4 $4 to $6 $6 fc over 6 12 S 6 55,117 161,063 67,483 80,013 38,332 109,697 41,854 52,137 69.64 68. U 62.02 65.16 102.5 10O.4 91.4 96.0 ♦so to $180 1 ; ; Total (Average) 14 717,619 481,601 67.11 93.9 UOder $2 $2 to |4 $4 to |6 $6 4 over 3 3 3 5 145,756 63,237 110,409 393,217 118,089 38,910 57,143 267,454 81'.02 57.02 51.76 68.02 119.4 84.0 76.3 100.2 #180 as OTer . Average $67,87 287 close of 1919 and, further, by their fixture investment per $100 of total net sales. Two methods of measuring 'wages and salaries are used : first, in terms of sales, and second, in terms of sales per stock turnover. This table merits consideration. It should be remembered that the larger the store, generally speaking, the smaller the inventory and the larger the stock turnover. Keeping this fact in mind, the attention of the reader is called to the details of the table. For stores which had inventories at the close of 1919 of less than $20 per $100 of total net sales, it cost in wages and salaries $5.64 to sell $100 worth of goods. For those that had inven- tories of $20 to $40, it cost $7.05, and for those that had inventories of $40 and over, the amount was $6.07. Within each group of stores having these inventories, the table also shows the amounts of wages and salaries per $100 of total net sales for stores having different fixture investments in relation to their sales. When the stores are classified in this form, there is a general but not uninterrupted tendency for the amounts to increase with the fixture investments. The ir- regularity may be due to the size of the store, the rapidity of the stock turnover, and the widths of the groups used in the classification of the inven- tories. The actual amounts, how- ever, are of interest in spite of the fact that they do not regularly in- crease. Table 202 also contains the amounts of wages and salaries expressed in terms of sales per stock turnover. As the business of these 282 stores is transacted, it costs $6.67 in wages and salaries to sell $100 worth of goods. When the amount is divided by the average turnover, it becomes $3.03. As the inventories increase, the amounts of wages and salaries per $100 of total net sales per stock turn- over also increase. The average amount for the stores having inven- tories of less than $20 per $100 of total net sales is $1.28 and for those with inventories of $40 and over per $100 of total net sales, $4.34. For the group of stores with inventories of less than $20 per $100 of total net sales, the data are inadequate to an- swer the question whether wages and salaries per $100 of total net sales per stock turnover increase or de- crease with the amount invested in fixtures per $100 of total net sales. For the other two groups of stores, when classified by inventories, the data reveal a general tendency for the amounts to increase as the invest- ments in fixtures increase. That is, for stores with a given amount of in- ventory, it costs more in wages and salaries per $100 of total net sales per stock turnover to sell a given amount of goods when fixture investments are large in relation to sales, than when they are small. The significance of Table 202 to the merchant is clear in certain respects. It indicates the value of low inven- tories and high turnover as a means of reducing the cost of wages and sal- aries in relation to sales. Moreover, it also emphasizes the fact that wages and salaries are relatively low in 288 TABLE 201 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OP SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OP FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1914 Amount of Fixture Account ' per $100 of Total Net Sales Ranber of Stores Total Selling Expense Total Wa^3 Sc Salaries nages and Salaries per |100 of Selling Expense Classified Total Amount Per Cent. Bet Salea (In 000'») Graphic Actual 20 40 60 80 100 120 Total (Average ) 155 1962,428 $633, 576 $65.83 100.0 Under $2 (2 to $4 $4 to $6 $6 & over 14 56 29 57 52,942 166, 673 204,324 516,489 33,168 131,458 120,938 548,012 62.65 70.42 59.19 67.12 : 95.2 107.0 89.9 102.0 Total (Average) Total (Average) 63 146,398 103,370 70.61 107.3 Under fS |2 to |4 H to |6 f 6 & over 8 16 13 26 12,564 56,413 26,849 70,572 9,542 25,860 18,609 49,359 75.95 71.02 69.31 69.94 115.4 107.9 105.3 106.2 Qbder |40 i Total (Average) 45 277,396 191,060 68.88 104.6 ] Under #2 (2 to U |4 to |6 $6 i over 4 13 8 20 15,065 74,368 49,140 138,822 10,728 51,828 27,106 101, 398 71.21 69.69 55.16 78.04 108.2 105.9 83.8 111.0 #iO to leo ; ; : Total (Average ) 22 302,620 195,723 64.68 98.3 : Under $2 »2 to $4 $4 to $6 $6 k over 2 6 7 7 25,313 75,892 110,375 91,040 12,898 53,770 65,723 63,332 50.95 70.85 59.55 69.57 77.4 107.6 90.5 leo to 1180 Total (Averape ) 5 236,016 143,423 60.77 92.3 llSO & over Ibder $2 $2 to U $4 to $6 $6 8c over 1 4 17,960 21fl,065 9,500 133,923 62.90 61.42 i 80.4 93.9 1 Average t6S.8S 289 TABLE 202 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- OVER, FOR STORES CLASSIFIED BY AMOUNT OF IN\^NTORY PER $100 OF TOTAL NET SALES AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 p«r tlOO of lit Sales Ajsount ct Plxturo Account per tlOO of tottiX Hot Salea <"'•«'"« |*otu«l V) 60 60 100 120 140 20 40 60 89 100 lap 140 160 1^ Under |2 »2 to»* |4 to t6 (6 k over Under $2 t2 to t4 *4 to te tik cvar Coder Is «2 to »4 t* to |C $6 h over .3 170.0 ITO.S terms of sales per stock turnover when fixture investments in relation to sales are kept at a minimum. D. — Summary. (1). For stores of a given size and with a given amount invested in fixtures per $100 of total net sales, the amounts of wages and salaries per $100 of total net sales tend generally to decrease from year to year. The direction of change is un- certain for wages and salaries per $100 of selling expense. (2). When the stores are classified by size, the amounts of wages and salaries per $100 of total net sales tend to increase as the amounts of investment in fixtures per $100 of total net sales increase. (3). When stores are classified by size, the amounts of wages and salaries per $100 of sell- 290 ing expense tend neither to increase nor to decrease as the investments in fixtures in terms of sales increase. (4). For stores with a given amount of inventory per $100 of total net sales, the amounts of wages and salaries in terms of sales alone, increase as the investments in fixtures in terms of sales increase. Moreover, the amounts of wages and salaries per $100 of total net sales per stock turnover increase as the fix- ture investments in terms of sales increase. (3) — YEARLY AMOUNTS OP WAGES AND SALARIES IN RELATION TO INVEST- MENTS IN FIXTURES PER 100 SQUARE FEET OF FLOOR SPACE. In the foregoing discussion, stores have been classified by the amounts invested in fixtures per $100 of total net sales. In this section the stores are classified by the amounts invested in fixtures per 100 square feet of floor space. A. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified hy Size, 1919. The records of 303 stores are avail- able for study in order to determine the amounts of wages and salaries per $100 of total net sales and per $100 of total net sales for the amounts sold per square foot of floor space for stores classified by size and by the amounts invested in fixtures per 100 square feet of floor space. The clas- sification of stores in this form is con- tained in Table 203. For stores of the same size, but with varying amounts of fixture invest- ments in relation to floor space, the amounts of wages and salaries per $100 of total net sales on the whole tend to increase with the investment in fixtures measured in this form. There are exceptions to this rule, but on the whole the same tendency which was encountered for selling expense obtains for wages and salaries. When the amounts of wages and salaries, however, are expressed in terms of sales for the amount sold per square foot of floor space, they decrease gen- erally with the investment in fixtures per 100 square feet of floor space. That is, the high cost in wages and salaries in relation to sales which ac- companies large investment in fix- tures per unit of floor space are com- pensated for by the amounts sold. The disadvantage which accrues to the stores with large fixture invest- ments is in fact an advantage in terms of the use to which the space is put. In view of the discussion of selling expense, pages 164 to 170, it is un- necessary further to consider wages and salaries for stores classified in this form. In Table 204 the amounts of sales for each $100 of wages and salaries paid are shown for stores classified as in Table 203. As the stores increase in size, relatively smaller sales are secured for a given amount of wages 291 TABLE 203 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER SALES PER SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 ClasEiriod Total Amount of Fixture Account per 100 sq. ft. of Floor £^pace lluniber of St ore B Hageo and Salaries per $100 of Total Net Sales (ages and Salarlee per ilOO of Total Net Sales per Sales per Square Foot of Floor Space Anount < Per Cent. Per Cent. (In CCO's) Graphic 1 ^^t„.i 3 20 40 60 60 100 120 140 Anount '^'•»I*1'= 1 Actual 20 40 60 80 100 120 140 Total (AvernKO) 303 $6.54 . 100.0 100.0 Under 440 $40 to teo |80 to $120 $120 fc over 74 105 65 61 6.01 6.50 6.56 6.83 91.9 99.4 100.3 104.4 150.6 115.4 92.5 73.1 Total (AverLpe) ' 0.19 • Total o to Cieo Total (Averare ) 45 7.30 111.6 0.21 ' Onder $40 $40 to $80 Ceo to tl20 S120 t over 6 6 e 21 6.85 9.11 7.29 7.02 104.4 159.3 111.^ 107.5 0.29 0.31 0.21 0.17 111.5 .1£0 :: over AlU'Cgv $6.54 Average $0.26 "pull length DOt flhoiro and salaries paid. Moreover, for stores of the same size, but with dif- ferent investments in fixtures in re- lation to floor space, the amounts of sales secured for each $100 of wages and salaries decrease as the fixture investments increase. The amounts secured for a given wage payment are shown in Table 204, and the relation- ship obtaining between them may be observed by consulting the graphic part of the table. In Table 205 the amounts of wages and salaries are expressed, first, in 292 terms of selling expense, and second, in terms of selling expense for the amounts sold per square foot of floor space,* The basis of classification for the stores is the same as in Tables 203 * The method by which this unit is com- puted is explained on page 4, item 26. and 204. Moreover, the same stores are used for purposes of analysis. Within each group, when classified by- size, the details show that there is no general tendency for the amounts either to increase or to decrease as the fixture investments in relation to TABLE 204 WAGES AND SALARIES, TOTAL NET SALES, AND AMOUNT OF TOTAL NET SALES PER $100 OF WAGES AND SALARIES, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 Classlflad Amount of Fixture Account per 100 eq. ft. of Floor Space Number of Stores Total Vagee & Total ■et Balee Total Hot Sales per $100 of Wages and Salaries Total Net Salts (InOOO'a) ( Per Cent. > 20 40 60 80 100 120 140 160 XBO 200 total (ATerage) 903 $2,367,501 $36,193,716 $1,529 100.0 ttodar $40 $40 to $80 $80 to $120 $120 fc over 74 105 69 61 409,649 S9S,U1 466,200 696,541 6,814,481 9,151,557 7,104,069 19.123,611 1,663 1,538 1,524 1,464 Total (Arerags ) 100.6 ^^^^^1 ; total (ATorags) 45 62,748 1,399,886 2,251 145.0 DoOsr $40 $40 to $80 $80 to $120 $120 fc over U 24 S 7 10,669 95,769 6,718 10,592 297,455 773,554 90,727 236,150 2,788 2,163 1,587 2,248 '. 182.3 141.5 103.8 147;o Ohder $40 ■ \ total (Average) 113 330,557 6,500,336 1,966 128.6 Itader $40 $40 to $80 $80 to $120 $120 k over 93 42 23 IS 67,981 108,795 76,467 57,314 1,6^,728 2,598,605 1,593,751 " 640,252 2,123 2,205 1,823 1,466 138.8 144.2 119.2 95.9 $40 to $80 Total (AveroKe ) 102 784,290 11,986,562 1,528 99.9 (kidar $40 $40 to $80 $80 to $120 $120 k oTor 22 S3 29 IS 167,538 265,530 211,240 139,982 2,548,246 3,949,140 9,250,636 2,238,340 1,521 1,487 1,559 1,599 «9.5 97.5 100.7 104.6 580 to SlBO 1 Total (AvoraRo) 43 1,189,906 16,507,154 1,370 89.6 : under $40 $40 to 580 $80 to $120 5120 i over 8 6 e 21 143,461 185,017 172,775 688,653 2,101,052 2,050,058 2,368,955 9,307,069 1,465 1,097 1,371 1,424 95.8 71.7 69.7 93.1 Cl80 i over ; _ Average tl,ae9 293 TABLE 205 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER SALES PER SQUARE FOOT OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 Arount of Fixture Aeco'int por 100 oq. ft. of Floor Space MUBber of Stores Wages ajvl Salaries per $100 of Selling Expense Wages and Salaries per $100 of Selling Expense per Sales per &i'iare Foot of Floor Space Total AsDunt Per Cent. Amount ( Per Cent. (in 000'«) "^•P"" 1 Actual 3 20 40 60 80 100 120 14o' QrapUlo 1 . ^ . '^ 1 lotual 20 40 60 80 100 120 140 160 180 200 ' Itotal (Average ) JOS $65.85 100. $2,59 100.0 Dnaer $40 #40 to $80 Sao to $120 Jl20 k over 74 105 6J 61 70.58 68.17 67.35 61 ^ — Total (Average) 106 71.92 109.5 39.96 133.9 Dndor tl tl to t2 t2 to tS t^ k over «3 SO 6 79.37 71.64 65.92 64.73 120.8 109.1 100.4 98.6 44.09 42.14 56.62 38.06 147.T 141 .e 122 .T 127.6 t40 to^ : t Total (Average) 98 67.45 102.7 55.50 118.9 Older tl tl to tZ t2 to ti tS k over 18 39 25 IS 65.15 71.66 62.26 56.55 129.7 109.1 94.8 86.1 40.55 35.64 32.77 31.42 i35.a 120.1 109.8 105.9 160 to tiao ""^^^"^"i Total (AveraRe) 4S 62.93 95.8 22.48 75.S under tl tl to t2 t2 to tS tS tl over 3 10 la 14 91.78 73.49 66.55 51.67 1 159.7 111.9 101.3 79.0 27.81 26.27 24.65 18.55 93.2 94.7 82.6 62.1 llSO ti ovor i ^^^^^^^^ i ■^■■111 ■ I : Amr*e> t65.67 Average tss.es 298 206 and 207 are classified, irrespective of size, by location and by the amounts spent for advertising per $100 of total net sales. A moment's consideration of them is of interest. As shown in Table 208, it cost on the average in wages and salaries $6.12 to sell $100 worth of goods in the stores in small cities. For the 78 stores in the large cities, the corre- sponding cost was $7.17. For the stores in the small cities the amounts increase as the amounts spent for advertising per $100 of total net sales increase. Regularity of change, how- ever, for the stores in the large cities does not hold. When stores in the two locations having the same amount of expenditure for advertising per $100 of total net sales are compared, the amounts, in every case except one, are lower for the stores in the small than for those in the large cities. It will be remembered, however, in comparing these figures that store- size is ignored. It cannot, however, be forgotten in assigning significance to this fact. On the whole, the stores in the small, are smaller on the aver- age than those in the large cities, and undoubtedly this explains in part the difference in the amounts of wages and salaries per $100 of total net sales. TABLE 208 AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES PER STOCK TURN- OVER, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919 Eize of City (in OOO's) Amomt of Advertising per ClOO or Total Not Sales Nunbcr of Stores Wages ana Salaries per OlOO of Total Met Sales '.iagos and Salaries per viOO of Total llet Sales per StDcU Ti.'Tnovcr Amount Per Cent. Amount Per Cent, ''■■^P"" 1 Actual ) 20 40 60 80 100 120 140 ^^«f^^° i Actual 20 40 €0 80 100 ICO 140 Total (AvoragcJ 282 J6.67 100.0 J3.03 100.0 DnUor *1 ♦l to J3 SS to $3 $5 k over 79 100 66 57 5. 95 6.12 7.67 6.61 88.9 91.8 113.5 99.1 2.82 S.06 5.29 2.75 95.1 101.0 108.6 90.8 Totol (Avertiee) ; Totel (AvLr-ge) 20" 6.12 1 91.6 5.22 106.5 ^^^^^^H Under Jl {1 to C£ J2 to i3 '^ & over 72 79 J9 14 5.ei 6.08 6.50 6.86 t 64.1 91.2 96.8 102.8 2.81 5.36 5.66 4.04 92.7 111.6 120.8 133.5 Oniier i Total (Averspe) 78 7.17 107.5 2.76 91.1 Under tl «1 to $2 is X.0 a iZ & ovor 7 21 27 23 6.21 8.15 6.57 117.5 93.1 122.2 98.5 3.1' 2.^8 3.13 2.53 103.6 81.8 103.3 83.5 40 and : Aver ago ^aC? Average ^.05 299 TABLE 209 AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE PER STOCK TURN- OVER, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919 of citr. Amount of Advertljlne per llOO of Total hat Sales mwber of StorC3 *agoo and Salaries per $100 of Selling Lxpenje Wages and Salaries per $100 of Selling Sxpau» per Stock Turnover Anount Per Cent. Amount ( Per CoDt. 20 40 60 80 100 ir^O 140 Graphic 1 Actual 20 40 60 80 100 120 140 Total (Avurage ) £82 ♦65.67 100.0 529.85 . 100.0 UnUor $1 «1 to t2 »2 to »3 Is k over 79 XOO 66 37 83.87 72.42 65.16 53.51 127.7 110.3 99.2 81.5 39.94 36.21 28.33 22.30 133.8 121.3 94.9 74.7 Total : i Total (AMr;.ee) 204 71.09 108.3 37.42 125.4 Under tl ll to %2 »2 to »3 ♦3 I. o7or 72 79 39 14 82.50 73.52 63. Ll 57.41 125.6 112.0 96.7 67.5 41.25 40.84 35.28 33.78 138.2 136.8 118.2" 113.2 Under Total (Avorago) 78 62.03 94.5 23.86 79.9 under |1 ♦i to »a iz to %3 »3 t over .7 21 27 23 86.15 70.51 65.90 52.90 131.2 107.4 100.5 80.6 3«.46 28.20 25.38 20.35 115.4 94.S 85.0" 68.2 40 uv3 r- over ; Average v65*67 Average $29.6S "WTien wages and salaries are ex- pressed in terms of sales per stock turnover, as in Table 208, the average cost is higher for the 204 stores in the small than for the 78 in the large cities. Moreover, the same condition holds for three of the four groups of stores differently located, but with similar expenditures for advertising per $100 of total net sales. This fact is undoul>tedly attributable in large part to the more rapid turns which characterize the stores in the large cities. The figures are submitted for what they are worth as showing the conditions which ()])tain. They must, however, be interpreted in the light of the conditions named for Tables 206 and 207. In Table 209, wages and salaries are expressed in terms of selling ex- pense for the 282 stores classified as in Table 208. For the 204 stores located in the small cities, wages and salaries constituted $71.09 of every $100 of selling expense; for the 78 stores in the large cities the amount was $62.03. That is, wages and sal- aries are a relatively smaller propor- tion of selling expense for stores in large than for stores in the small cities. When stores of different loca- tion, but with the same expenditures for advertising per $100 of total net 300 sales, are compared, the amounts are lower for two and higher for two groups of stores located in the small than for those located in the large cities. The average for the entire group, therefore, must be considered in the light of these divergent ten- dencies. The size of stores is un- doubtedly of significance in determin- ing the actual amounts involved. "When wages and salaries are ex- pressed in terms of selling expense per stock turnover, the averages for the stores in the two city-groups are not only lower than when they are expressed in selling expense alone, but are in the inverse order so far as size is concerned. The amount for the 204 stores in the small cities is $37.42, and for the 78 in the large cities, $23.86. Moreover, the amounts are larger for the stores in the small cities than for those in the large cities when classified by expenditures for advertising per $100 of total net sales. This condition is due not so much to the absolute difference in wages and salaries as a part of selling expense, as to the relative rapidity with which stock is turned in stores with different locations. Here again the actual amounts are of interest inasmuch as they constitute the norms of expense distribution found in these stores. C. — Yearly Amounts of Wages and Salaries per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified hy Bates of Stock Turnover, 1919. In Tables 210 and 211, respectively, wages and salaries are expressed in terms of sales and of selling expense for stores classified by rates of stock turnover and by expenditures for advertising per $100 of total net sales. The body of Table 210 is of interest. For the 145 stores that turned their stock less than twice, it cost in wages and salaries $6.54 to sell $100 worth of goods. For those which turned their stock between two and three times, and three times and over, the corresponding costs, respectively, were $6.84 and $6.51. That is, the average amount was highest for the stores turning their stock between two and three times. For the other two groups the amounts are essen- tially constant. Interest in the table lies quite as much in the amounts spent for adver- tising as in the rates at which stock is turned in 1919. The order of the table makes it possible to compare the amounts of wages and salaries per $100 of total net sales for stores hav- ing given rates of stock turnover, but with different amounts spent for advertising per $100 of total net sales. Without specifying in detail each of the various average amounts, it is of interest to observe that the amounts of wages and salaries per $100 of total net sales increase with the ex- penditures for advertising per $100 of total net sales for the stores which turned their stock less than two times. A corresponding increase, except for one group of stores, also holds for those which turned their stock be- tween two and three times. For the 37 stores with stock turnover rates of three and over, the amounts are ir- 301 regular and the direction of change uncertain. In interpreting Table 210, it should be remembered that store-size, as such, is not used as a basis of classi- fication, although generally it may be said that the more rapidly stocks are turned and the greater the amounts spent for advertising in relation to sales, the larger the store. Accord- ingly, the tendency for the amounts of wages and salaries per $100 of total net sales generally to increase with expenditures for advertising in TABLE 210 TOTAL NET SALES, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF TOTAL NET SALES, FOR STORES CL^^SSIFIED BY RATES OF STOCK TURNOVER AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919 Amount of Advertising per llOO of Total Set Bale* Braaber of Stores Total Bat Salaa Total Wage* t: Salaries Wages and Salarlea per llOO of Total Hot Salea E2t«3 of Ltook Tomovar < Per Cent. Oraphle Actual ) 20 40 60 80 100 120 Total 282 135,563,014 12,371,762 |6.67 1 100.0 Ttadar |1 |1 to |2 |2 to Is Is & OT«r 79 100 66 37 5,955,246 9,843,487 11,364,997 ' 8,899,264 353,880 602,877 860,553 654,952 5.93 6.12 7.67 6.61 1 88.9 9i.a U3.5 99.1 rrtal ; (Avu-^o) ; 1 ^^^^i Total (Average) 145 11.611,884 759,775 6.54 : 98.1 1 VoOmr |1 |l to |2 |2 to Is |3 » orer 44 SS 29 17 2,705,693 4,040,688 3,267,854 1,698,872 156,834 258,437 221,601 122,903 s.eo 6.40 6.7S 7.69 87.0 96.0 101.6 115.3 : Under 2 1 Total (ATerage) 100 15,987,018 1,093,660 6.84 102.5 : Under |l |1 to 12 |2 to |3 Is fc orer 22 37 26 15 1« 465, 134 4,277,216 5,341,954 4,902,714 82,210 281,771 424,271 305,408 5.61 6.59 7.94 6.28 64.x 98.8 119.0 93.4 a to fc Total (ATerage) 37 7,964,112 6X8,327 6.51 97.6 8 k ovor Under ll |1 to |2 |2 to Is Is k over 13 e 11 5 1,784,417 1,525,588 2,755,809 1,898,298 114,356 €2,669 214,681 126,641 6.41 4.11 7.79 6.67 96.1 61.6 116.8 Average $6.67 302 TABLE 211 TOTAL SELLING EXPENSE, WAGES AND SALARIES, AND AMOUNT OF WAGES AND SALARIES PER $100 OF SELLING EXPENSE, FOR STORES CLASSIFIED BY RATES OF STOCK TURNOVER AND BY AMOUNT OP ADVERTISING PER $100 OF TOTAL NET SALES, 1919 Amount of Advertising per $100 of Total Net Sales Humber of Stores Total Selling Expense Total Weiges & Salaries Wages and Salaries per $100 of Selling Expense Rates of Stock Anount C Per Cent. Turnover Graphic .j ^^^ ) 20 40 60 80 100 120 140 Total (Average ) 282 #3,611,688 $2,371,762 $65.67 ! 100.0 Under |1 |1 to $2 #2 to #3 #3 & over 79 100 66 37 421,324 832,475 1,320,718 1,037,171 353,380 602,877 860,553 554,952 83.87 72.42 63.16 S3. 51 > 127.T U0«» 99.3 81.5 Total (Average) Total (Average) 1415 1,103,147 759,775 68.87 s 104.9 Under ^1 ♦l to |2 ♦2 to |3 ♦3 k over 44 $5 29 17 190,547 545,623 "356,165 211,012 156,834 258,437 221,601 122,903 82.39 74.77 62.22 58.24 ! 125.5 113.9 94.7 88.7 Iftider 2 ; • : 1 Total (Average) 100 1,694,631 1,093,660 64.54 98.3 Under $1 ll to |2 *2 to «3 $3 & over 22 37 26 15 99,888 387,951 629,697 577,095 82,210 281,771 424,271 305,408 82.30 72.63 67.38 52.92 125.3 110.6 102.6 80.6 2 to 3 ; 1 Total (Average) 37 813,910 518,327 63.68 97.0 1 Under f 1 $1 to |2 $2 to $3 $3 & over 13 8 11 5 131,089 98,901 334,856 249,064 114,336 62,669 214,681 126,641 87.22 63.37 64.11 50.35 132.3 96.5 97.6 77.4 ^^^""^^1 ! Average $65.67 terms of sales is explained in part by the size of the stores. In spite of this limitation of the data, the actual amounts are of interest in themselves. In Table 211 the basis of classifica- tion is the same as in Table 210, the amounts of wages and salaries, how- ever, being expressed in terms of selling expense. For the stores which turned their stock less than twice, the amount which wages and salaries con- stitute of every $100 of selling ex- pense is $68.87. The corresponding amounts for those which turned their 303 stock between two and three times, and three times and over, are $64.54 and $63.68, respectively. That is, the amounts decrease as the rates of stock turnover increase. For each group of stores classified by rates of stock turnover, the details of the table make it possible to com- pare the amounts of wages and sal- aries per $100 of selling expense for stores spending different amounts for advertising in relation to sales. The basis of classification of wages and salaries is the relation which they bear to selling expense, while that of advertising is the relation which it bears to sales. Advertising, however, constitutes a part of selling expense as do also wages and salaries. Ac- cordingly, with this form of classi- fication, it is to be expected that the amounts of wages and salaries per $100 of selling expense will decrease with the increase in advertising ex- penditure per $100 of total net sales. Such a decrease characterizes each group of stores when classified by rates of stock turnover. The extreme differences are most noticeable in stores which turned their stock most rapidly. It is unnecessary' to indicate for each group of stores the actual size of these amounts or the i-elative rates at which they decrease. Such comparisons may be made by the reader if he is interested. In Tables 208 to 211, inclusive, store size Ls ignored in the classifi- cation. The data should be inter- preted with this fact in mind, inas- much as the amounts of wages and salaries, in relation to selling expense, seem to be determined by the size of stores, by the rates at which stock is turned, and by the amount expended for advertising in relation to sales. D. — Summary. (1). The amounts of wages and salaries per $100 of total net sales and per $100 of total net sales per stock turnover, increase as the expenditures for advertising in terms of sales increase. This holds for all stores and for stores of a given size. (2). For stores with a given amount of advertising expen- diture in terms of sales, the amounts of wages and salaries, measured in terms of sales alone, increase as stores in- crease in size. The amounts in terms of both sales and stock turnover increase with the size of the stores for those having annual sales of less than $180,000, and decrease for those having sales in ex- cess of this amount. (3). The amounts of wages and salaries per $100 of selling expense, and per $100 of sell- ing expense per stock turn- over, decrease as the amounts of advertising in terms of sales increase, and also as the size of the stores increases. (4). For stores with a given amount of advertising expen- diture per $100 of total net 304 sales, wages and salaries in terms of sales alone are higher in the large than in small cities, while in terms of sales per stock turnover they are loM^er in large than in small cities, (5). For stores with a given amount of advertising expen- diture per $100 of total net sales, the proportions of sell- ing expense attributable to wages and salaries tend to be neither higher nor lower in small than in large cities. The amounts of wages and salaries per $100 of selling expense per stock turnover are higher for stores in the small than for those in large cities. (6). When stores are classified by rates of stock turnover, the amounts of wages and salaries, when expressed in terms of sales, increase and in terms of selling expense, decrease as the amounts of advertising per $100 of total net sales increase. 305 V. EXPENDITURES FOR ADVERTISING 1. — EXPENDITt^RES FOB AD\T31TISING FOB STORES CLASSIFIED BY YEARS, BY SIZE AND BY LOCATION. The expression, "expenditures for advertising," includes all the money spent for advertising, as such, as well as the salaries of window trimmers and advertising men. In the small stores where such employees do not give their full time to advertising or to window trimming, the compensa- tion paid to them is included in wages and salaries. Moreover, in establish- ments having window trimmers and advertising men, all forms of com- pensation paid to them are included in advertising in spite of the fact that occasionally they may have devoted part of their time to selling. In inter- preting the following data, these facts should be kept in mind. They may help to explain in part some of the differences in the amounts of adver- tising expenditure for stores of dif- ferent size.* A. — Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Expense, 1919, 1918, and 1914. The records of 154 identical stores for the years 1919, 1918, and 1914 are available for the study of the amounts of expenditure for advertising charge- able to selling. In Table 212, these amounts are expressed in terms of sales. For the three years combined, the expenditure for advertising per $100 of total net sales was $2.30. In * It should be noted that * ' advertising ' ' aa used herein differs in some respects from the corresponding item in the Bureau's study, Costs, Merchandising Practices, Ad- vertising, and Sales in the Betail Distribu- tion of Clothing, Volume V. TABLE 212 TOT.U. NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 Nimbor of Store- years Total Hot Sales Total Advertising Advertl 3lng per $100 of Total Net Sales Years Amount Per Cent. Gr^P"« Actual 5 20 40 60 80 100 120 Total 462 $44,835,499 $1,050,669 $2.30 1 100.0 (AveraE©) • 1919 191B 1914 154 154 154 20,892,764 14,714,515 9,228,220 463,940 326,047 240,682 2.22 2.22 2.61 96.5 96.5 113.5 \z..-..^.... . ■.■rrr^ 1 Average $2.30 306 1914 the corresponding amount was $2.61, in 1918, $2.22, and in 1919, $2.22. That is, there was a decrease between 1914 and 1918, but between 1918 and 1919 the amounts remained constant. In Table 213 the amounts of adver- tising expenditures per store and sales per store are set out for 154 stores so as to show relatively the rates at which both items increased in 1918 and 1919 as compared with 1914. The table also shows the rela- age increases in both items in 1918 and 1919 over 1914. Selling expense increased 106 per cent., and advertis- ing expenditures, 92.8 per cent., be- tween 1914 and 1919. Smaller in- creases in both elements of expense occurred between 1914 and 1918. When the amounts of advertising expenditure are expressed per $100 of selling expense, they decreased 10.8 per cent, between 1914 and 1918 and 6.4 per cent, between 1914 and 1919. TABLE 213 AVERAGE AMOUNT AND PER CENT. INCREASE OR DECREASE OP TOTAL NET SALES AND ADVERTISING PER STORE, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 Average Anotint of Total Fet Sales per Store Average Amoujit of Advertlalng per JlOO or Total Met Sales Per Cent. Increa 20 40 60 80 100 120 140 Per Cent. Increase 20 40 60 80 100 Per Cent. Dec Graphic 40 60 80 100 isis 191« $135,667 9S,S49 S»,924 126.4 S9.S $3,01} 2,117 1,563 92.8 35.4 $2.22 2.22 2.61 14.9 14.9 tive decrease in the advertising ex- penditure in relation to sales in 1918 and 1919 as compared with 1914. For the stores in question, while sales in- creased 126.4 per cent, between 1914 and 1919, the amounts expended for advertising increased in the same period 92.8 per cent. When the ad- vertising expenditures are expressed in terms of sales, the amounts in 1919 and 1918 were 14.9 per cent, lower than in 1914. Table 214 shows the amounts of selling expense and advertising ex- penditure per store and the percent- From Tables 212 to 214, inclusive, it may be concluded as follows : First, advertising expenditures per $100 of total net sales for stores, irrespective of size, decreased between 1914 and 1918 and remained constant between 1918 and 1919 in spite of the fact that both sales and expenditures for ad- vertising per store increased in each of the years as compared with 1914. Second, expenditures for advertising per $100 of selling expense for stores, irrespective of size, decreased between 1914 and 1918, and increased between 1918 and 1919. 307 TABLE 214 AVER^VGE AMOUNT AND PER CENT. INCREASE OR DECREASE OF SEI.LING EXPENSE AND ADVERTISING PER STORE, AND AVERAGE AMOUNT .OP ADVERTISING PER $100 OF SELLING EXPENSE, FOR 154 IDENTICAL STORES, 1919, 1918, AND 1914 Artnf iBDtmt of SaUlng Bxp«n«a I>er Stor* ATsr>gs Aaount of Advertlsllis per 8tor« Avorsno AsKiunt of Advertising per 9100 of Selling Bxpenee Jot* Aammt tT C«nt. Icerekse over 1014 Jtooimt Per Cent. Inoreaoe over 1914 Aommt Per Cent. Decrease from 1914 1 >!r»phlo 1 Orepblo Actual 1 Actual 1 so 40 eo 80 100 120 M 40 60 80 IOC 20 40 60 eo 100 10,«S2 106.0 51. B ts.ou 2, in ez.a SS.4 $21.26 20.26 6.4 10. a 3 3 1»U .» 1«1« e.ST9 1.SU 28.72 B. — Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Expense, for Stores in 1919, 1918, and 1914, Classified hy Size. In Table 215, stores are classified by size and for each group the ex- penditures for advertising per $100 of total net sales are shown for each of the different years under consid- eration. The total section of this table is the same as that shown in Table 212. For each group of stores, when classified by size, the amount of expenditure for advertising per $100 of total net sales was less in 1918 than in 1914, and in each group, except that which includes stores with an- nual sales of $180,000 and over, less in 1919 than in 1918. In Table 216 the amounts of adver- tising expenditures per $100 of sell- ing expense are shown for the 154 stores in each of the years 1914, 1918, and 1919, as classified in Table 215. For the entire group, these expendi- tures decreased between 1914 and 1918, and increased between 1918 and 1919. When the stores are classified by size, for each group there was a decrease in the amounts between 1914 and 1918. Between 1918 and 1919 the amounts increased for two groups and decreased for two groups of stores. C. — Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Expense, for Stores in 1919, 1918, and 1914, Classified by Size of City in Which Located* In Table 217, the 154 stores are classified by the size of the city in which they are located, two size- groups being used for this purpose. For the 115 stores located in the small cities, net sales per store were 109.4 per cent, higher and expenditures for advertising per store, 67.1 per cent, higher in 1919 than in 1914. Between 1914 and 1918, sales per store in- creased 49.4 per cent, and advertising * Population figures are for 1920. 308 per store, 27.9 per cent. Accordingly, when the expenditures for advertis- ing are expressed in terms of sales, there was a decrease of 14.1 per cent, in the amounts between 1914 and 1918, and of 19.9 per cent, between 1914 and 1919. For the 39 stores located in the large cities, net sales increased be- tween 1914 and 1919 by 144.6 per cent., while advertising increased 110.5 per cent. Between 1914 and 1918 the sales for these stores in- creased 70.3 per cent., and the amounts of advertising, 40.7 per cent. When the advertising expenditures are expressed in terms of sales there was a decrease of 17.2 per cent, be- tween 1914 and 1918, and of 13.8 per cent, between 1914 and 1919. TABLE 215 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE, 1919, 1918, AND 1914 Classined Total Het Sales Years KuBiter of St ore - years Total Net Sales Total Advertising Advertising per $100 of Total Het Sales Amount Per Cent. (Is OOO'a) Graphlo 5 20 40 60 80 100 120 140 160 Aotual Total (Average ) 462 (44,835,499 (1,030,669 (2.30 100.0 1919 1918 1914 164 154 154 20,892,764 14,714,515 9,228,220 463,940 526,047 240, 662 3.22 2.22 2.61 96.5 96.5 113.5 Total (Average ) Total (Average ) 129 3,590,553 60,972 1.70 73.9 Itedar (40 1919 1918 1914 14 42 73 428,714 1,256,795 1,905,044 6,262 19,197 35,513 1.46 1.63 1.86 6S.S 66. S eo.9 — i Total (Average ) 172 9,775,007 167,646 1.72 74.8 t40 to $80 1919 leis 1914 67 63 8S 6,222,468 3,662,794 2,869,746 42,797 60,416 64,433 1.3S 1.66 8.23 57.8 71.7 97.0 i Total (Average ) 117 13,695,639 319,703 2.33 101.3 : 191» 1918 1914 66 66 £4 6,866,816 4,090,203 2,738,621 140,074 98,491 81,138 Z.04 2.41 2.96 68.7 104.8 128.7 t&o to lieo 1 Total (Average ) 44 17,774,300 482,348 2.71 117.8 1919 1918 1914 25 14 6 10,574,767 6,704,723 1,694,810 274,807 147,943 69,598 2.65 2.59 3.52 115.2 112.6 153.0 Jieo k over Average (2.30 309 TABLE 216 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE, FOR 154: IDENTICAL STORES CLASSIFIED BY SIZE, 1919, 1918, AND 1914 Classified Total Bet Sailes (In OOO'b) Years H'jiaber of Stoi^" years Total Sellln5 Expensj Total Advertising Advertising per |100 of Selling Expense ^JWrtTTTlt*. Per Cent. Qraphic Actual ) 20 40 60 80 100 120 Total (Average) 462 f4, 851, 112 $1,030,669 §21.25 100.0 1 Total 1919 1918 1914 154 154 154 2,182,027 1,609,671 1,059,414 463,940 326,047 240,682 21.26 20.26 22.72 100.0 95.3 ioe.9 (Arera-3 ) 1 Total (Average ) 129 304, 954 60,972 19.99 ; 94.1 1 Tbder $40 1919 1918 1914 14 43 73 29,018 101,621 174, 315 6,262 19, 197 35,513 21.58 18.89 20.37 101.6 88.9 95.9 Total (Average ) 172 913,357 167,646 18.35 86.4 ^^^^^^^^ ^ to $80 1919 1918 1914 67 63 52 246,207 545,293 321,857 42,797 60,416 64,433 17.33 17.50 20.02 81.8 82.4 94.2 t i : Total (Average) 117 1,491,801 519,703 21.43 100.8 |80 to $180 1919 1918 1914 58 35 24 719,436 445,138 327,227 140,074 98,491 81,138 19.47 22.13 24.80 91.6 104.1 116.7 1 Total (Average) 44 2,141,000 432,348 22.53 106.0 ?180 & over 1919 1918 1914 25 14 5 1,187,366 717,619 256,015 274,807 147,943 69,598 23.14 20.62 25.25 108.9 97.0 118.8 ; 1 ' Averagtt #21.25 An inspection of this table shows that both sales and advertising ex- penditures increased more rapidly for the stores in the large than for those in the small cities, when the comparisons are made between 1914 and 1919, and 1914 and 1918. In spite of this fact, however, the de- crease in the amounts of advertising expenditure per $100 of total net sales between 1914 and 1919 was less in the stores in the large than in those 310 TABLE 217 RELATION OF ADVERTISING TO TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSI- FIED BY SIZE OF CITY, 1919, 1918, AND 1914 Size of City (in ooo'e) Years Number of Stores Net SsJea Advertising Total Average Amount per Store Total Average Amount per Store Per $100 of TotBl Net Sales Amount Per Cent. Increase over 1914 ^kBOunt Per Cent. Increase over 1914 Amoxmt Per Cent« Decrease from iy.4 Total (Average) 1919 1918 1914 154 154 154 120,892,764 14,714,515 9,228,220 $155,667 95,549 59,924 126.4 69.5 1465,940 526,047 240,682 . ♦5,015 2,117 1,565 92.8 SS.4 $2.22 2.22 2.61 14.9 14.0 Under 40 1919 191B 1914 115 115 115 10,005,585 7,156,283 4,777.158 87,005 62,055 41,540 109.4 49.4 164,710 125,986 98,545 1,«5S 1,096 857 67*1 27.9 1.65 1.77 2.06 19.9 14.1 40 end over 1919 1918 1914 59 59 59 10,887,179 7,578,252 4,451,082 279, 158 194,614 114,150 144.6 70.5 299,250 200,061 142,159 7,675 5,150 5,645 110.5 40.7 2.76 2.64 3. IS 13.8 17.2 in the small cities. An inverse condi- tion obtains for the stores in the two city-groups when 1918 is compared with 1914. No recognition is taken of store size in Table 217, the basis of comparison being identical stores with different locations. The influ- ence of the size of store upon adver- tising expenditure is discussed later. In Table 218, the 154 stores are classified as in Table 217. This table compares, from year to year, the amounts of selling expense and adver- tising for stores located in cities of different size. For the 115 stores located in the small cities, selling ex- pense per store increased between 1914 and 1919 by 85.4 per cent., and between 1914 and 1918 by 40.8 per cent. The corresponding percentages of increase in advertising were 67,1 and 27.9, respectively. "When the expenditures for advertising are ex- pressed in terms of $100 of selling expense, the amounts decreased by 9.8 per cent, between 1914 and 1919 and by 9.1 per cent, between 1914 and 1918. For the 39 stores in the large cities, the selling expense per store increased between 1914 and 1919 by 123.2 and between 1914 and 1918 by 61,3 per cent. The corresponding percentages of increase in the expenditures for advertising were, respectively, 110.5 and 40.7. When the advertising ex- penditures are expressed in terms of selling expense, the amounts de- creased between 1914 and 1919 by 5.7, and between 1914 and 1918 by 12.8 per cent. When the two groups of stores are compared, it is found that the per- centages of increase in selling expense and advertising expenditure were greater for the stores located in the large cities. When the advertising expenditures are expressed in terms 311 of selling expense, however, the de- crease is smaller between 1914 and 1919 for the stores in the large, than for those in the small cities. An in- verse condition holds for the decreases between 1914 and 1918. In Table 219 the 154 stores are classified by years and by location, the purpose being to show, in each of Ihe years, the relative amounts of advertising expenditures per $100 of total net sales for the stores as located. For the stores in the com- bined years the average amount ex- pended for advertising in relation to sales by the stores in the small cities was $1.78. The corresponding amount spent by the stores in the large cities was $2.80. That is, the average amount for the stores in the small cities was 77.4 per cent, and for the stores in the large cities, 121.7 per cent, of the average for all stores irrespective of location. Between 1914 and 1918, and 1918 and 1919, the amounts decreased for stores located in the small cities. In those located in the large cities, there was a decrease between 1914 and 1918, and an increase between 1918 and 1919. The basis of classification in Table 220 is the same as that in Table 219, but the advertising expenditures are expressed as proportionate parts of selling expense. For the stores in the combined years, expenditures for ad- vertising constituted $18.88 of every $100 of selling expense for the stores in the small, and $22.99 for the stores in the large cities. Relatively, these amounts are 88.8 and 108.2 per cent., respectively, of the average for all stores. Between 1914 and 1918, and TABLE 218 RELATION OF ADVERTISING TO SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSI- FIED BY SIZE OF CITY, 1919, 1918, AND 1914 Years Number of Stores Selling Expense Advertising size of City Total Average Ajnoimt per Store Total Average Amount per Store Per $100 of Selling Expense (In OOO'b) Araovmt Par Cent. Increase over 1914 Amount Per Cent. Increase over 1914 Amount Per Cent. Decrease from 1914 Total (Average) 1919 1918 1914 154 154 164 $2,182,027 1,609,671 1,059,414 tl4, 169 10,452 6,879 106. 51.9 $463, 940 326,047 240,602 $3,013 2,117 1,563 92.8 35.4 $21.26 20.26 22.72 6.4 10. S Under 40 1919 1918 1914 115 115 115 896,863 680,787 483,712 7,799 5,920 4,206 85.4 40.8 1641,710 125,986 98,543 1,432 1,096 857 67.1 27.9 18.37 18.51 20.37 9.S 9.1 40 and over 1919 1918 1914 39 39 39 1,285,164 928,884 575,702 32,953 23,818 14,762 123.2 61.3 299,230 200,061 142,139 7,673 5,130 3,645 110.5 40.7 23.28 21.64 24.69 5.7 12.8 312 TABLE 219 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 Years Number of Store- years Total Net Sales Total Advertising Advertising per $100 of Total Net Sales Size of Amoiant ( For Cent. City (in 000' s) . G'-'^Phlc Actual ) 20 40 60 80 100 120 140 Total (Averago) 462 §44,635,499 ^1,030,669 $2.30 100,0 Total 1919 1913 1914 154 154 154 20,892,764 14,714,515 9,228,220 463,940 326,047 240,682 2.22 2.22 2.61 96.5 96.5 113.5 (Average ) i 1 ! Total (Average ) 345 21,919,006 339,239 1.78 77.4- Undsr 1919 1918 1914 115 115 115 10,005,585 7,136,233 4,777,138 164,710 125,986 98,543 1.65 1.77 2.06 71.7 77.0 89.6 40 ! ! 1 Total (Average ) 117 22,916,493 641,430 2.80 121.7 40 and 1919 1916 1914 39 39 39 10,887,179 7,578,232 4,451,082 299,230 200,061 142,139 2.75 2.64 3.19 119.6 114.8 138.7 over ^" Average $2.30 1918 and 1919, the amounts decreased for the stores in the small cities, while between 1914 and 1918 they decreased and between 1918 and 1919 they in- creased for the stores in the large cities. The purpose of this table is to make readily comparable from year to year the amounts for identical stores when they are classified accord- ing to location. In Tables 214, 216, 218, and 220, advertising expenditures are ex- pressed as proportionate parts of selling expense. Wages and salaries constitute, on the average, for the 154 stores considered, 66.7 per cent, of total selling expense. The changes in wages and salaries from year to year, therefore, affect the relation of expen- ditures for advertising to total selling expense. From year to year, as the proportions of total selling expense attributable to wages and salaries in- crease, the proportions attributable to advertising expenditures decrease, and vice versa. The ' ' other ' ' expenses properly chargeable to selling make up the balance of selling expense. The changes of these expenses from year to year are indicated in the tables which pertain to them.* * Pages 392 to 395. 313 TABLE 220 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 Years Hvnnber of Storo- yeara Total Selling Expense Total Advertising Advertising per flOO of Selling Expense City (In cco'i) Amount Per Cent. OrapMc Actual D 20 40 60 80 100 120 Total (Averape) 462 $4,851,112 11,030,669 $21.25 1 100.0 i 1910 1918 1914 154 154 154 2,182,027 1,609,671 1,059,414 465,940 526,047 240,682 21.26 20.26 22.72 100.0 95.5 106.9 (Average) i Total (ATerago) 945 2,061,562 589,239 18.88 88.8 i 1919 1918 1914 115 U5 115 896,865 680,787 485,712 164,710 125,986 * 98,545 1S.57 18.51 , 20.57 86.4 87.1 95.9 40 : 1 Total (Average) 117 2,789,750 641,430 22.99 108.2 i 1919 19ia 1914 59 59 59 1,285,164 928,864 575,702 299,250 200,061 142, 139 25.28 2i.64 24.69 109.6 101.4 116.2 over 1 i Average 121.25 From Tables 217 to 220, inclusive, it may be conclude(3 as follows : First, advertising expenditures per $100 of total net sales decreased between 1914 and 1918, and 1914 and 1919 for the stores when classified by location, the extent of decrease between 1914 and 1919 being larger for the stores in small than for those in the large cities, and between 1914 and 1918 larger for those in the large than for those in the small cities. Second, for the stores classified by location, ad- vertising expenditures per $100 of selling expense decreased between 1914 and 1918, and 1914 and 1919, for stores in the two city-groups, the extent of the decrease between 1914 and 1918 for the stores in the small being greater than for those in the large cities, and between 1914 and 1918 greater for those in the large than for those in the small cities. Third, the amounts of advertising expenditure per $100 of total net sales are larger for the stores in the large, than for those in the small cities. Fourth, for the stores as a whole, the expenditures for advertising per $100 of selling expense decreased between 1914 and 1918, but increased between 1918 and 1919. They increased be- 314 tween 1918 and 1919 for the stores in the large, and decreased for those in the small cities. B — Yearly Atnounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified hy Size and hy Size of City in Which Located* 1919, 1918, and 1914. In Tables 221 to 224, inclusive, the amounts of advertising expenditures per $100 of total net sales in the com- * Population figures are for 1920. bined and individual years are shown for stores of different size and with different location. The variations in these amounts are interesting. As the stores increase in size, no account being taken of location, the amounts in relation to sales increase. This condition, however, does not hold in the combined years for the stores located in the small cities, but it does hold over the entire range of sizes for the stores located in the large cities. The amounts are larger without ex- ception for the stores in the large TABLE 221 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919, 1918, AND 1914, COMBINED Size of Classified Total Hat Sales (la ooo'a) number of Store- yeara Total Met Sales Total Advertising Advertising per $100 of Total Net Sales A&otmt ( Per Cent. (la ooo'a) Or«plil« 20 40 60 80 100 120 14 Actual > Total (Average) 462 $44,835,499 $1,030,669 $2.30 1 100.0 Total (Average} Under |40 $40 to $80 $80 to llSO |180 & over 129 172 117 44 3,590,553 9,775,007 15,695,639 17,774,300 60,972 167,646 319,703 482,348 1.70 1.72 2.33 2.71 73.9 74.8 101.3 117.8 1 Total (Average ) 345 21,919,006 389,239 1.78 77.4 Unfler 40 Under $40 |40 to |80 |80 to $180 $180 & ever 121 138 77 9 3,317,538 7,650,532 8,832,022 2,119,114 56,128 122,305 175,202 35,604 1.69 1.60 1.98 1.68 73.5 69.6 86.1 73.0 J 1 Total (Average ) 117 22,916,493 641,430 2.80 121.7 j Uncer $40 $40 to $80 $80 to $180 $180 & over 8 34 40 35 273,215 2,024,475 4,963,617 15,655,186 4,844 45,341 144,501 446,744 1.77 2.24 2.91 2.85 77.0 40 and 1 over i 126.5 123.9 ! Average $2.30 315 than for those of the same size in the small cities. A comparison of this sort is more satisfactory than one which includes the totals only. In view of the details shown in Tables 221 to 224, inclusive, it is unnecessary in the text discussion to indicate the characteristic amounts or the general relations w^hich they bear to each other in each of the different years. The reader may con- sult those in which he is interested. In Tables 225 to 228, inclusive, advertising expenditures per $100 of selling expense are shown for stores of different size and location. For the stores in the combined years, as the stores increase in size, advertising constitutes an increasing proportion of selling expense. This condition, however, holds only when no account is taken of the location of the stores. When they are classified by location, the amounts for the stores in the small cities decrease as the size of the stores increases, and for those in the large cities increase as the stores in- crease in size. For stores with sales TABLE 222 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919 Size of City Classified Total Jlet Sales (In OOO'a) Nimber of Stores Total Net Sales Total Advertising Advertising per $100 of Total Met Sales Amount Per Cent. (In OOO'a) Oraphlo . ^ , Actual J 20 40 60 80 100 120 140 Total (Average ) 154 • §20,892,764 $463,940 $2.22 1 100.0 ! i 1 Total (Avenge ) Under $40 $40 to §80 $80 to $180 $180 t over 14 57 58 25 428,714 3,222,458 6,866,815 10,374,767 6,262 42,797 140,074 274,807 1.46 1.33 2.04 2.65 65.8 59.9 91.9 119.4 i Total (Average ) 115 10,005,585 164,710 1.65 74.3 i Under 40 Under $40 $40 to $80 $80 to $130 $100 ti over 14 51 44 6 428,714 2,836,747 5,255,410 1,484,714 6,262 37,636 95,437 25,355 1.46 1.33 1.82 1.71 65.8 59.9 82.0 77.0 I i Total (Average) 39 10,837,179 299,230 2.75 123.9 i 40 and over Under $40 $40 to $80 $80 to $lo0 $180 U over 6 14 19 335,721 1,611,405 8,300,053 5,141 44,637 249,452 1.33 2.77 2.81 69.9 124.8 126.6 tveraga $2.22 316 TABLE 223 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED BY SIZE OP CITY AND STORE, 1918 Size of Classified Total Net Sales (in OOO's) Bomber of Stores Total Bet Sales Total Advertising Advertising per ♦lOO of Total Het Sales Ajnotdt Per Cent. (la ooo'b) Qraphic I Actual 20 40 60 80 100 120 140 Total (Average ) 154 ♦14,714,515 ♦326,047 $2.22 100.0 i VotaJ (Average) Under |40 |40 te |80 ♦80 to ♦180 #180 at over 42 63 35 14 1,256,795 3,662,794 4,090,203 5,704,723 19,197 60,416 98,491 147, 943 1.53 1.65 2.41 2.59 68.9 108.6 116.7 i Total (Average) 105 7,136,283 125,986 1.77 79.7 ^^^_" ttader 40 Itader #40 ♦40 te ♦so ♦80 te ♦l80 ♦180 & over 41 49 22 S 1,221,199 2,776,272 2,504,412 634,400 19,129 43,829 52,779 10,249 1.57 1.58 2.U 1.62 70.7 7i.a 95.0 73.0 ■ Total (Average) S9 7,578,232 200,061 2.64 118.9 i 40 Bad over Itader ^40 ♦40 to ♦eo ♦so to f 180 $180 & over 1 14 13 11 35,596 886,522 1,685,791 5,070,323 68 16,587 45,712 137,694 0.19 1.87 2.88 2.72 8.6 84.2 129.7 122.5 : Averags, ♦2.22 "under $40,000, the advertising expen- ditures constitute a larger proportion of selling expense for the stores in the small than for those in the large cities, while for stores with sales in excess of this amount, an inverse con- dition obtains. Tables 226 to 228, inclusive, contain the data for the years 1919, 1918, and 1914, respectively. From year to year for stores of different size and loca- tion, the advertising expenditures vary in amount and in direction of change. The nature of these varia- tions is evident from the detail of the tables. Tables 221 to 228, inclusive, may be summarized as follows : First, ad- vertising expenditures per $100 of total net sales increase as stores in- crease in size when no account is taken of location. When stores of varying size and location are com- pared, expenditures for advertising remain essentially constant for stores of different size, located in small cities, but increase with the size of stores for stores in the large cities. 317 Second, advertising expenditures per $100 of selling expense increase as stores increase in size. When stores are classified by size and by location, however, the amounts for the stores in the small cities decrease, and for those in the large cities increase, as stores increase in size. Certain ex- ceptions to this tendency occur in each of the different years under con- sideration. These, however, do not seriously disturb the general conclu- sions which have been drawn. E. — Summary. (1), The amounts spent for adver- tising per $100 of total net sales decreased between 1914 and 1918, and remained con- stant between 1918 and 1919. This condition holds for the 154 stores as a whole. For those w'ith sales less than $180,000, the amounts de- creased from year to year; while for those with sales TABLE 224 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1914 81 to of City Claselfled Total Ket Sales (In OOO'b) number of Storee Total Bet Sales Total Advertising Advertising per $100 of Total Net Sales Per Cent. (In OOO'b) Amount Graphic | Actual ) 20 40 60 80 100 120 140 Total (Average) 154 19,228,220 1240,682 |2.61 100.0 Total (Average) Under ^ UO to |80 ♦80 to tieo $180 k over 73 52 24 5 1,905,044 2,889,745 2,738,621 1,694,810 55,513 64,433 81,138 69,598 1.86 2.25 2.96 3.52 71.3 85.4 113.4 134.9 Total (Average) US 4,777,138 98,543 2.06 78.9 1 Under 40 Under Uo ♦40 to $80 |80 to 4180 llBO fc over 66 38 11 1,667,425 2,037,513 1,072,200 '30,737 40,820 26,986 1.84 2.00 2.52 70.5 76.6 96.6 ; 1 1 Total (Average ) 39 4,451,082 142,139 3.19 122.2 Under $40 $40 to $80 7 14 13 5 237,619 852,232 1,666,421 1,694,810 4,776 23,613 54,152 59,698 2.01 2.77 3.25 3.52 77.0 106.1 124.5 134.9 40 end over ; «lon 1. „...- 1 1 Average $2.61 318 TABLE 225 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919, 1918, AND 1914, COMBINED Classified Total Net Sales (In OOo'b) Number of Store- years Total SelUng £xpense Total Advertising Advertising per $100 of Selling Expenaa Size of City (In OOO's) Per Cent. ) 20 40 60 80 100 120 Total (Average) 462 $4,861,112 $1,030,669 $21.25 100.0 Under $40 $40 to $80 $80 to $180 $180 & over 129 172 117 44 304,954 913,357 1,491,801 2,141,000 60,972 167,646 319,703 482,348 19.99 18.35 21.43 22.53 94.1: 86.4 100.8 106.0 Total j (Average) • Total (Aver age) 345 2,061,362 389,239 18.88 88.8 i Uhder $40 $40 to $80 $80 to $180 &180 & over 121 138 77 9 276,723 670,140 892,563 221,936 56,128 122,305 175,202 35,604 20.28 18.25 19.63 16.04 95 .4 85.9 92.4 75.5 Under 40 ! ; Total (Average ) 117 2,789,760 641,430 22.99 108.2 i Under $40 $40 to $80 $80 to $180 $180 ae over 8 34 40 35 23,231 243,217 599,238 1,919,064 4,844 45,341 144,501 446»744 17.16 18.64 24.11 29.28 80.8 87.7 113.6 109.6 40 and over ; Average $21.25 of $180,000 and over, the amounts decreasecJ between 1914 and 1918, and increased between 1918 and 1919. (2). The proportion of selling ex- pense attributable to adver- tising decreased between 1914 and 1918. This holds for all stores, as well as for stores classified by size. Between 1918 and 1919, the amount for all stores increased. The direction of change from year to year was not uniform for stores classified by size. (3). Advertising in terms of either sales or selling expense de- creased by a larger percent- age between 1914 and 1919, and by a smaller percentage between 1914 and 1918 for stores in small than it did for those in large cities. 319 TABLE 226 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919 ClBBslfled Total Hot Sales (In OOO'e) Number of Stores Total SallJng Expense Advertising Advertising per $100 of Selling Expense size of City (In OOO's) Amount C Per Cent. <^^P*'^<= Actual ) 20 40 60 80 100 120 Total (Average ) 154 $2", 182, 027 $463,940 $21.26 loa^ Undor $40 $40 to $80 $60 to $180 $180 & over 14 57 58 25 29,018 246,207 719,436 1,187,566 6,262 42,797 140,074 274,807 21.58 17.58 19.47 23.14 101.5 81.7 91.6 ioe.8 Total (Average) Total (Average ) 115 896,863 164,710 18.57 86.4 Under $40 $40 to $80 $80 to $180 $180 & over 14 51 44 6 29,018 211,678 509,410 146,757 6,262 37,656 95,437 25,356 21.58 17.79 18.73 17.28 101.5 83.7 88.1 81.9 T3Vider 40 Total (Average) S9 1,285,164 299,230 23.28 109.5 40 and over Under $40 $40 to $80 $80 to $180 $180 & over 6 14 19 54,529 210,026 1,040,609 5,141 44,637 249,452 14.89 21.25 23.97 70.0 100.0 112.7 Average $21.26 (4). The amounts of advertising expenditure per $100 of total net sales for all stores and for those located in large cities increase as stores increase in size, while they remain prac- tically constant for stores in small cities. (5). For stores of a given size, advertising expenditures in terms of sales are higher in large than in small cities. (6). The proportions of selling (7). expense attributable to adver- tising increase with the size of store for all stores and for those located in large cities, while they decrease as the stores increase in size for stores in small cities. For stores of given size, the amounts of advertising ex- penditure per $100 of selling expense are generally higher in large cities than for stores in small cities. 320 TABLE 227 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE, FOR 154 STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1918 Classified Total Net Sales (In OOO's) Number of Stores Total Balling Expense Total Advertising Advertising par $100 of Selling Expense of city Amount Per Cent. over Average $22.72 total net sales spent $1.78 for adver- tising in terms of sales. This, like the amounts of total selling expense and wages and salaries for this group of stores, is relatively small. For the stores which had inventories between $20 and $40 per $100 of total net sales, the advertising expenditure was $2.47. From this figure as a maxi- mum, the expenditures decrease to $1.94 for the stores which had inven- tories of $60 and over. That is, if exception is made for stores with in- ventories of less than $20, expendi- tures for advertising for the stores in the combined years decrease as the inventories in relation to sales in- crease. A similar relationship obtains in each of the different years. For the 149 stores in 1914, the aver- age amount of expenditure for adver- tising per $100 of total net sales was $2.63. In 1918 it was $2.23 and in 1919, $2.24. That is, there was a decrease between 1914 and 1918 and a slight increase between 1918 and 1919. With the exception, in each of the years, of the stores which had the 322 lowest inventories, the amounts of advertising expenditure decreased be- tween 1914 and 1918, and 1918 and 1919. It is this comparison which is of most significance, the totals for the respective years being affected by the amounts of the sales and by the size of the inventories in relation to sales. When the amounts of expenditure for advertising per $100 of sales for stores with inventories of different size are reduced to a common basis by expressing them in terms of the amount sold per $1 of inventory, they increase, in the combined years, from $0.31 for the stores with smallest, to $1.36 for the stores with largest rela- tive inventories. Similar increases occur in each of the years considered. The inverse relationship between the average amount of inventory per $100 of total net sales and the average amount of advertising expenditure, similarly measured, is shown in Table TABLE 229 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER AMOUNT SOLD PER $1 OF INVENTORY, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OP INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 itasowtt of Inventory per $100 of Total Vet Sale* Sumber of Store- yeara Advertising per $100 of Total Net Salea Advertising per JlOO of Total Net Sales per Amount Sold per $1 of Inventory Xaort Per Cent. Amount c Per Cent. Amovoat t Oraphle 1 ^ 1 Actual 20 40 60 80 100 120 140 ""^'^ 1 Actual 20 40 60 80 100 120 140 160 Total (Average) 447 $2.32 100.0 $0.B7 100.0 ^^H Uhder $20 $20 to $40 $40 to $60 $60 Ji over 14 168 177 68 1.78 2.47 2.16 1.94 76.7 106. E 93.1 83.6 0.31 0.74 1.08 1.36 35. 6 (Avsraga ) 8S.I 124.1 156.3 ^^^^M ■ Total (Average ) 149 2.24 96.6 0.73 83.9 ^^^^ (Jnder $20 $20 to $40 $40 to $60 $60 i over 7 83 51 8 2.00 2.32 2.02 1.72 86.2 100.0 87.1 74.1 O.JS 0.70 1.01 1.20 40.2 80. S 116.1 137.9 1919 1 ..^ : Total (Average) 149 2.23 96.1 0.90 103.4 ^^^^1 - 1918 UQdar $20 $20 to $40 $40 to $60 $60 k over 3 46 60 40 C.93 2.43 2.17 1.94 40.1 104.7 93.5 83.6 0.16 0.73 1.09 1.36 18.4 83.9 125.3 156.3 ; ; 1 Total (Average) 149 2.63 113.4 1.14 131.0 Dmler $20 $20 to $40 $40 to $60 $60 fc over 4 39 66 40 2.35 3.14 2.32 ?.00 101.3 135.3 100.0 66.2 0.41 0.94 1.16 1.40 47.1 108.0 133.3 160.9 1914 ■■ I _. . Average $2.32 Average $0.87 323 230. For the combined years, stores which spent less than $1 in adver- tising in terms of sales had on the average an inventory of $40.94. The amount of inventory for those which spent between $1 and $2 was slightly larger, and for those that spent more, considerably less than this amount. When the separate years are con- sidered, the inventories, with a few exceptions, decrease as the amounts spent for advertising per $100 of total net sales increase. The average amount of inventory for the stores in the combined years is $37.54. For 1914 it was $43.44, for 1918, $40.53, and for 1919, $32.84. That is, the inventories decreased between 1914 TABLE 230 TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF ADVERTISING PER $100 OP TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Advertising per |100 of Total net Sales number of Store- years Total Net Sales Total Inventory Inventory per llOO of Total Het Sales Years Amount Per Cent. 1 Aetufll 3 20 40 60 80 100 120 140 Total (Average) 447 143,599,972 $16,369,406 ♦37.54 100.0 Under $1 »1 to »2 $2 to tS |3 i over 105 147 114 61 6,153,722 10,474,625 15,040,118 11,951,507 2,519,091 4,359,751 6,161,173 4,320,391 40.94 41.62 34.32 36.29 109.1 110.9 91.4 96.7 Total (Average ) i 1 Total (Average ) 149 20,303,641 6,667,056 32.84 67.5 ^^^^ 1 Under $1 ♦l to |2 |2 to $3 Is & over 41 47 42 19 3,106,729 4,460,395 8,386,889 4,349,628 1,135,040 1,634,516 2,491,097 1,406,403 36.53 36.65 29.70 32.33 97.3 97.6 1919 i ; : 86.1 Total (Average) 149 14,322,667 5,804,340 40.53 108.0 i Under |l ll to |2 ♦2 to $3 |3 fc over se 49 38 24 2,156,926 3,542,012 4,480,247 4,143,482 963,421 1» 469, 279 1,736,775 1,614,865 45.59 41.48 38.77 38.97 121.4 110.5 103.3 191B 1 Total (Average) 149 8,973,664 3,898,010 43.44 115.7 under 11 ll to »2 |2 to |3 Is & over 26 61 34 se 690,067 2,472,218 2,172,982 3,438,397 400,630 1,265,956 933,301 1,308,123 45.01 50.80 42.95 38.04 119.9 135.5 1914 101.3 Average |37.54 324 TABLE 231 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Inventory per $100 of Total Not Sales Number of Store- years Total Salllug Expense Total Advertising Advertising per $100 of Selling Expense Tears Amoimt Per Cent. Graphic ^^^,„^ 3 20 40 6p 80 100 1:^0 Total (Average ) 447 $4,745,829 $1,009,377 $21.27 : 100.0 : Under $20 $20 to $40 $40 to $60 $60 & over 14 168 177 88 172,900 3,088,085 1,128,967 355,877 36,654 655,340 243,739 73,644 21.20 21.22 21.59 20.69 99.7 99.8 lOl.S 97.S Total (Average ) j Total (Average ) 149 2,135,072 453,840 21.26 100.0 Under $20 $20 to $40 $40 to $60 $60 le over 7 85 51 8 105, 7U 1,649,518 345,965 33,878 24,173 348,645 73,301 7,721 22.87 21.14 21.19 22.79 107.5 99.4 99.6 107.1 1919 ! Total (Average) 149 1,073,249 319,845 20.33 15.44 19.53 22.29 20.75 95.6 i 1918 Dhder $20 $20 to $40 $40 to $60 $60 & over 5 46 60 40 32,117 937,441 427, 462 176,229 4,960 183,038 95,288 36,559 72.6 91.8 104.8 97.6 Total (Average) • 149 1,037,608 235,692 22.72 106.8 i Under $20 $20 to $40 $40 to $60 $60 fc over 4 39 66 4* 35,072 501,126 355,540 145,770 7,521 123,657 75,150 29,364 21.44 24.68 21.14 20.14 100.8 116.0 99.4 94.7 1914 : Average $21.27 and 1918, and 1918 and 1919, the margin of difference between 1918 and 1919 being 2.6 times as great as between 1914 and 1918. In Table 231, for the same stores as those considered in Tables 229 and 230, the average amounts of adver- tising expenditures are expressed as proportionate parts of selling expense. For the stores in the combined years, the average is $21.27. In 1914 it was $22.72, in 1918, $20.33, and in 1919, 325 $21.26. For the stores in the com- bined years and in 1919 and 1914, the amounts per $100 of selling ex- pense remain essentially constant as inventories in relation to sales in- crease.* Approximately $21 might be said to be the characteristic amount. From Tables 229 to 231, inclusive, it may be concluded: First, if the stores with smallest inventories in relation to sales are excepted, the amounts of advertising expenditure per $100 of total net sales decrease as the amounts of inventories per $100 of total net sales increase. Second, the amounts of advertising expenditure per $100 of selling ex- pense are essentially constant for stores having different amounts of inventory in relation to sales.* B. — Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Expertise, for Stores Classified^ hy Size, 1919, 1918, and 1914. In the foregoing tables, the stores are not classified according to size. Such a classification is made in Tables 232 to 235, inclusive. In Table 232 the amounts of ad- vertising expenditure are shown for stores in the three years 1914, 1918, and 1919, combined. On the basis of the experience of 447 store-years, the average amount spent for advertising per $100 of total net sales is $2.32, * For a somewhat larger number of stores, and with wider groupings of inventories in relation to sales, as shown in Table 246, the amounts decrease, as inventories in relation to sales increase in size. The same condi- tion tends to hold for the stores in 1914. For those with sales under $40,000, it is $1.67; for those with sales of $40,000 to $80,000, $1.69; for those with sales of $80,000 to $180,000, $2.39 ; and for those with sales of $180,000 and over, $2.72. That is, the amounts increase as the size of the stores increases. "When the stores are classified by size, and further by the amounts of inventory per $100 of total net sales, expenditures for ad- vertising generally tend to increase as the inventories per $100 of total net sales increase. However, to this general rule for the stores in the combined and in the different years, there are so many exceptions that it is difficult to generalize. The reader is advised to consult the tables for the direction of change for the dif- ferent groups of stores. In Tables 233 to 235, inclusive, the amounts of advertising expenditure per $100 of total net sales are shown for stores classified as in Table 232 for the years 1919, 1918, and 1914, respectively. It is unnecessary, in view of the consideration already given to expenditures for advertising for the combined years, to consider these tables in detail. Year to year comparisons of the total amounts have already been made and an in- spection of the tables will show how the amounts vary for the stores of different size in each of the years. In a general way, the relationships which obtain in the combined, also hold for the individual years. In Tables 232 to 235, inclusive, advertising expenditures are ex- pressed in terms of sales alone. In 326 TABLE 232 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919. 1918, AND 1914, COMBINED Claasiried A-nount of Inventory per $100 of Total »et Saleo Number of Store- 7ear> Total Net Sales Total AdvertlBlng Adi/irtlslng per $100 of Total Net Sales Total Net Sales (In 000' ») Amount Per Cent. Qraphle Actual 20 40 60 80 100 120 140 Total (Average) 447 $43,599,972 $1,009,377 $2.32 100.0 Total (Average) Under $20 $20 to $40 $40 to $60 $60 le over 14 168 177 88 2,059,425 26,478,436 U, 263. 282 3,798,829 36,654 665,340 243,739 73,644 1.78 2.47 2.16 1.94 76.7 106.5 : Total (Average ) 127 3,532,911 69,024 1.67 0.79 1.69 1.85 1.52 72.0 ttider $40 Under $20 $20 to $40 $40 to $60 $60 k over X 18 E2 56 28,953 560,460 1,412,525 1,530,993 228 9,477 26,112 23,207 94.1 72.8 79.7 65. 5 i 1 Total (Average) 165 9,360,348 168,486 1.69 72.8 $40 to $eo Dbder $20 $20 to $40 $40 to $60 $60 & over 6 52 82 2S 402,009 3,083,049 4,458,869 1.416,421 4,904 54,480 74,251 24,851 1.22 1.77 1.67 1.75 52.6 76.3 72.0 75.4 Total (Average) Dbder $20 $20 to $40 $40 to $60 $60 & over 112 6 60 40 7 13,121,494 313,119 2.39 1 • $80 to $180 655,107 7,076,841 4,638,131 851,415 6,305 156,342 122,886 25,586 l.SO 2.21 2.65 3.01 64.7 95.S U4.8 129.7 Total (Average ) 43 17,585,219 478, 743 2.72 U7.2 i Ubder $20 $20 to $40 $40 to $60 $60 & over 2 58 S 1,073,376 15,758,086 753,767 23,217 435,041 20,490 2.16 2.76 2.72 93.1 119.0 117.2 $180 tc over ; Average $2.33 327 Table 236 they are expressed in terms of sales for the amount sold per $1 of inventory.* * The method by which this unit is com- puted is explained on page 4, item 17. For the stores in the combined years, $0.87 was expended for adver- tising per $100 of total net sales for the amount sold for each $1 of in- ventory. In 1914 the corresponding TABLE 233 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919 Cl*aalfi«il Totaa list SaJss (in OOO'fl) Amount of Inventory per $100 of Total Het Balsa Hombsr of Storaa Total Advsrtlslog Advertlalng per |100 of Total Net Sales Oi'spl^o Actual 20 40 60 80 100 120 140 160 total (Average) Total (ATerage ) Uodor $20 (20 to (40 (40 to (60 (60 i over (20,303.641 (453,840 1,208,118 lSi01S,367 3,628,188 448,968 24, 175 348,645 73,301 7,721 Total (Average ) 428,714 Itadar (40 Under (20 (20 to (40 (40 to (CO (63 k over 68,054 244,012 U6;64e 6,262 895 4,334 1,053 Total (Average) 5,082,152 38,705 (40 t« (80 Cnd^r (20 $20 to (40 ^40 te (80 (60 b oTer 150,276 1,287,723 1,472,999 171,154 1,224 le-,723 19,317 1,441 too to (180 6,607,089 137,666 384,466 4,382,158 1,679,299 161«16e 3,573 84,725 44,121 6,247 |1B0 k OTer Total (Average) Dnder (20 (20 to (40 (40 to (60 (so k OTer 10,185,686 673,376 9,280,432 £31,878 271,207 19,376 246,302 6,529 (2.24 2.00 2.32 2.08 1.72 1.32 1.78 0.89 1.26 0.81 1.30 1.31 0.84 2.08 O.0Z 1.95 2.65 S.26 2.66 2.88 2.65 2.98 100.0 89.3 103.6 90.2 76.8 58.9 79.6 39.7 S6.S 36.2 68.0 58.5 57.5 92.9 41.5 86.2 U7.4 145.6 118.8 128.6 118.9 106.9 Average (2.24 328 TABLE 234 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 Amount of Inventory per $100 of Total Het Sales Humber of Stores Total Net Salea Total Advertising Advertising per $100 of Total Net Sales Classiflad Total Het Salea Amount ( Per Cent. (in OOO'b) Graphic ) 20 40 60 80 100 120 140 160 Actual Total (Avoraga) 149 $14,322,667 $319,845 $2.23 100.0 . ,1 1 Total (Average) Under $20 $20 to $40 $40 to $60 $60 & over 3 46 60 40 530.649 7,517,748 4,389,893 1,884,377 4,960 183,038. 95,288 36,559 0.93 2.43 2.17 1.94 41.7 109.0 97.3 87.0 : { { Total (Average ) 42 1,256,795 19, 197 1.53 68.6 ttadar $40 Dnder $20 $20 to $40 $40 to $G0 $60 k over 6 13 23 209,528 381,673 665,594 3,875 6,486 8,836 1.85 1.70 1.33 83.0 76.2 59.6 t Total (Average ) 60 3,501,019 57,778 1.65 74.0 $40 to $80 Ondor *20 $20 to $40 $40 to $60 $60 !c over 2 15 29 130,649 901,852 1,632,061 836,457 1,119 15,355 26,154 15,150 0.86 1.70 1.60 1.81 38.6 76.8 71.7 ei.2 Total (Average ) 33 3,860,130 94,927 2.46 2.14 2.57 3.29 110.3 $30 to $180 Onder $20 $20 to $40 $40 to $60 $60 & over 14 16 3 1,623,524 1,854,280 382,326 54,667 47,687 12,573 96.0 115.2 147.5 1 Total (Average) 14 5,704,723 147,943 2.59 116.1 $160 k over Onder $20 $20 to $40 $40 to $60 $60 & over I 11 2 400,000 4,732,844 521,879 3,841 129,141 14,961 0.96 2.70 2.87 43.0 121.1 128.7 ; Average $2.23 329 TABLE 235 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1914 Claaslflea Total >at Sales (la OOO'a) Anount of Inventory per $100 of Total Net Sales Total Hot Sales Total Advertising Advertising per 4lOO of Total Net Sales Graphic Total (Average ) Onder J 40 ti'J to JSO Total (Average) $8,973,664 $235, 692 Under $20 |20 to $40 $40 to $60 $60 &. over 320,658 9, 942, 321 3,245,201 1,465,484 7,521 123,657 75,150 29,364 Total (Average) 1,847,402 33,565 Under $20 $20 to $40 $40 to $60 $60 & over 28, 933 282,878 786,840 748,751 228 4,707 15,292 13,358 Total (Average) 2,777,177 62,003 Under $20 $20 to $40 $40 to $60 $60 fc over 121,084 893,474 1,353,609 408,810 2,561 22,402 28,780 6,260 Total (Average) 2,654,275 $80 to $180 Under $20 $20 to $40 $40 to $60 $60 St over 170,641 1,071,159 1,104,552 307,923 80,526 4,732 36,950 51,078 7,7^6 Total (Average) 1,694,610 tl80 & over Under $20 $20 to $40 $40 to $60 $60 fc over 1,694,810 59,598 69,598 $2.63 2.35 3.14 2.32 2.00 1.82 0.79 1.66 1.94 1.78 2.23 2.12 2.51 2.13 2.02 3.03 2.77 3.45 2.81 2.52 100.0 89.4 119.4 88.2 76.0 69.2 30.0 63.1 73.8 67.7 84.8 80.6 95.4 81.0 76.6 115.2 105.3 131.2 106.6 95.6 Average $2.63 330 TABLE 236 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER AMOUNT SOLD PER $1 OF INVENTORY, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 cu<«tn*4 Total ■•t B»l»t (ta-ooo**) par iyoo of Total lat Salaa Orapiilc »1 par 11 of Igveptory OrapMa to tl «2 Oraphie »1 «2 440 to tao leo to tiso Dndop »20 0.31 (20 to (40 0.74 »40 to S60 1.08 $60 it OTor i.se Ooder (20 (20 to (40 (40 to ttO (60 4 orar Osdar (20 (20 to (40 (40 to (so (60 h ovor Undor (20 (20 to (40 (40 to (eo (60 t> 07sr JJbAut (30 (20 to (40 (40 to (SO (60 • oTor 0.94 0.14 O.Sl 0.9S 1.06 0.77 O.Sl a.ss 0.84 1.23 0.94 0.26 0.6S l.SS 0.76 0.3S 0.63 1.36 &7araga (0.87 0.5S 0.70 l.Ol 1.20 0.40 ces 0.62 0.S2 0.14 0.59 0.66 0,6S 0.7S O.U 0.56 1.32 Z.2S 0.7S 0.50 0.80 1.19 ATcraga (0.73 0.16 0.73 1.09 1.36 0.56 0.85 0.93 0.15 O.Sl 0.80 1.27 0.64 1.29 2.30 0.17 O.Sl 1.44 AToraee (0.90 (1.14 0.41 0.94 1.16 1.02 0.14 0.60 0.97 1.2B l.OO 0.S7 0.7S 1.07 1.41 1.24 0.48 1.04 1.41 1.76 Averago (1.14 amount was $1.14; in 1918, $0.90; and in 1919, $0.73. That is, the amounts decreased from 1914 to 1918, and 1918 to 1919. When the records of the stores in the three years are combined, the amounts spent for ad- vertising per $100 of sales for the amount sold per $1 of inventory, increase as the inventories per $100 of total net sales increase. For the stores with inventories of less than $20 per $100 of total net sales, the average amount is $0.31. From this as a minimum, the amounts increase to $1.36 for the stores having inven- tories of $60 and over in relation to their sales. Similar increases also characterize the stores as a whole in each of the years. ]\Ioreover, for each group of stores when classified by 331 TABLE 237 TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919. 1918, AND 1914, COMBINED Classified Total Vat Selea Amouct of Xdvartlsln^ p«r ilOO of Total Not Scaea Mambor of Store- yaara Total Bet Sales Total Inventory Inventory pap <;100 of Total Kat Sales Amount Per Cent. (In OOO'l) ar^P^<^ 1 Actual 20 40 60 80 100 120 140 160 Total (Avarags) 447 ^.599,972 116,369,406 f37.54 100.0 Under tl *1 to »2 (2 to >3 ^5 fc oTor 106 147 114 ei 6,153,722 10,474,625 15,040,118 11,951,507 2,519,091 4,359,751 6,161,173 4,329,391 40.94 41.62 34.32 36.29 109.1 110.9 91.4 96.7 Total (iverago) : Total (Averaga) 127 3,532,911 1,909,518 56.31 150.0 i OnJar #1 U to »2 «2 to »3 |3 i over 37 51 21 18 1,110,360 1,383,638 556,572 482,291 580,538 813,497 336,330 260,159 52.28 58.79 60.25 53.94 139.3 1S6.6 160.5 143.7 tJader Uo 1 j Total (Average) 166 9,360,348 4,254,795 45.46 121.1 Dndw »1 *1 to »2 t2 to )3 |3 Ic over 51 58 37 19 2,845,600 3,224,357 2,163,431 1,121,960 1,238,760 1,497,100 1,022,722 496,213 43.53 46.43 47.16 44,23 116.0 123.7 125.6 117.8 »40 to |80 """^^ Total (Avaraga ) 112 13,121,494 5,193,131 39.58 105.4 Uodor $1 tl to «2 ♦2 to i3 t3 & over IS 31 35 31 1,635,795 3,643,631 4,249,058 3,693,010 536,834 1,386,974 1,584,201 1,685,122 32.82 38.07 37.28 46.90 87.4 101.4 99.3 124.9 $80 to $180 i Total (Average) 43 17,585,219 4,931,962 28.05 74.7 Onder $1 ♦l to »2 »2 to 13 $3 ti over 2 7 2i 19 561,967 2,222,949 8,066,057 6,734,246 162,965 662,180 Z,21B,9SO 1,887,897 28.99 29.79 27.51 28.03 77.2 79.4 73,3 74.7 |180 & over ! Average $37. M 332 TABLE 238 TOTAL NET SALES, INVENTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919 CUsairisd Total Hat Balaa Araount of Advert 1 a Ing per $100 of Total Net Salaa number of Stores Total Net Salea Total Inventory Inventory per flOO of Total Hoi Sales Amount ( Far Cent. (In OOO's) '^"P^^^" 1 Actual ) 20 40 60 80 100 120 140 160 180 Total (Avorago) 149 t20,303,641 t6, 667, 056 t32.e4 1 100.0 Onder |l »1 to »2 «e to $3 ^3 h orer 41 47 43 19 3,106,729 4,460,395 8,386,889 4,349,623 1.135,040 1,634,516 2,491,097 1,406,403 36.53 36.65 29.70 32.33 U1.2 111.5 90.4 98.4 Total (iTeraga) zzzm^' i Total (Average ) 14 428,714 215,607 50.29 153.1 i Under $1 »1 to »2 »2 to U |3 & ever 8- 1 2 191,955 135,428 28,261 73,070 95,983 75,435 6,749 37,440 50.00 65.70 23.88 51.24 152.2 169.6 72.7 156.0 Itadar Uo Total (Average) 55 3,082,152 1,280,953 41.56 126.6 Under $1 $1 to (2 t2 to t3 tS Jc over 22 21 10 2 1,273,878 1,133,971 565,595 108,713 606,329 475,162 248,228 61,234 39.75 41.90 43.89 47.19 121.0 127.6 133.6 143.5 #40 to tao Total (Average) 66 6,607,089 2,366,933 35^.82 109.1 i Under tl »1 to «2 (2 to $3 tS & over 1£ 17 IS 9 1,306,591 1,907,262 2,233,765 1,109,471 437,851 655,613 793,690 479,779 33.51 94.97 94.75 43.24 102.0 104.7 105.8 131.7 #80 to *180 i Total (Average) 24 10,185,686 2,803,563 27.58 83.8 ^^^^^ Under tl tl to t2 tZ to tS tS te ever 1 4 19 6 334,310 1,283,754 6,509,268 3,058,374 94,877 428,906 1,442,430 837,950 ss.sa 33.36 26.18 27.40 ■IHi^MMH ' 86.4 101.6 79.7 83.4 |U0 & OTsr ; 1 , Average t32.84 size, the advertising expenditures, measured in this unit, increase as the inventories per $100 of total net sales increase. This, of course, is to be expected in view of the method of classifying the stores. By the use of such a measure, stores with different sales and inventories are reduced to a unit basis. Table 236 should be considered in connection with the details in Tables 232 to 235, inclusive. Moreover, it is 333 of interest to compare Table 236 with Tables 26 and 143 which show respec- tively the amounts of selling expense and the amounts of wages and salaries expressed in this form. Tables 237 to 240, inclusive, for the combined and individual years, show the amounts of inventories per $100 of total net sales for stores classified by size and by amounts of advertising TABLE 239 TOT.VL NET SALES, INA^EXTORY, AND AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1918 ClaBBlflod Tot»l Yet Sales Amouot of AdvertlBins per llOO of Total Net Seles Nur.ber of Etoreo Total Met Sales Inventory per }100 of Total Bet Sales Total Inventory Amount C Per Cent. (In COO'i) Graphic Actual 20 40 60 80 100 120 140 160 Total (Average) 149 114,322,667 Is, 804, 340 140.53 100.0 Onder |l (1 to |e iz to ts Is & over 58 49 S8 24 2,156,926 3,542,012 4,480,247 4,143,482 983,421 1,469,279 1,736,775 1,614,865 45.59 41.48 38.77 38.97 112.5 102.3 95.7 96.2 Total ( Average) : Totf.1 (Avert ge) 42 1,256,795 734,523 58.44 1 144.2 Dnder }1 |1 to $2 ♦2 to 13 Is & over 12 21 6 3 387,840 595,175 175, 690 98,090 228,185 544,768 107,597 53,973 58.83 57.93 61.24 55.02 145.2 142.9 151.1 135.8 Under #40 1 1 Total ( Average) 60 3,501,018 1,729,460 49.40 121.9 Dnder il $1 to t2 |2 to $3 |3 t ever 22 17 16 S 1,212,225 972,151 995,546 321,097 588, 165 487,603 480,980 172,712 48.52 50.16 48.31 53.79 119.7 123.8 119.2 132.7 |40 to teo ; Total (Average) 33 3,860,130 1,741,662 45.12 111.3 i teo to 1180 Under $1 |1 to |2 |2 to 13 Is It over 3 S 10 12 329,204 1,035,471 1,138,028 1,367,427 98,983 403,054 494,286 745,259 30.07 58.92 43.43 54.90 74.2 96.0 107.2 135.5 ; ■l^^^M^MI Total (Averc.ee) 14 6,704,723 1,598,795 28.03 69.2 tUO fc orer under ll ♦l to t2 |2 to |3 Is fc ever 1 3 6 4 227,657 939,215 2,170,983 2,566,868 68,088 233,874 653,912 642,921 29.91 24.90 30.12 27.16 73.8 61.4 74.5 67.0 Average |40.55 334 TABLE 240 TOTAL NET SALES, INVENTORY, AND AMOUNT OP INVENTORY PER $100 OF TOTAL NET SALES, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1914 Classified Total Net Sbles Anount of Advertising per $100 of Total Xet Sales Number of Stores Total Net Sales Total Inventory Inventory per llOO of Total Net Sales Amount Per Cent. (In OOO'a) Graphic Actual 20 40 60 80 100 120 140 160 Total (Average ) 149 18,973,664 13,398,010 |43.44 100.0 : Under ll ll to |2 |2 to |3 |3 & over 26 51 34 38 890,067 2,472,218 2,172,982 3,438,397 400,630 1,255,956 933,301 1,308,123 45.01 50.80 42.95 38.04 103.6 116.9 98.9 87.6 Total (Average) ^^^M ^""T"" : ; Total (Average ) 71 1,847,402 1,039,388 56.26 129.5 i Under |1 ll to |2 |2 to |3 |3 & over 19 25 14 IS 530,565 653,086 352,621 3U,131 256,364 393,294 220,984 168,746 48.32 60.22 62.67 54.24 111.2 138.6 144.3 124.9 Under $40 Total (Average ) 50 2,777,177 1,244,382 44.81 103.2 ^^^^^^^ i Under ll |1 to |2 |2 to Is |3 J: over 7 20 11 12 359,502 1,U8,236 607,290 692,150 144,266 634,335 293,514 272,267 40.13 47.78 48.53 39.34 92.4 110.0 1U.3 90.6 $40 to Sao ^1 i ! ; Total (Average ) 23 2,654,275 1,084,636 40.86 94.1 1 ^0 to ^180 Under |l ll to |2 |2 to |3 |3 fc over 6 7 10 700,898 827,265 1,126,112 328,327 296,225 460,084 46.84 35. 8i 40.86 107.8 82.4 94.1 i i 1 • 1 Total (Average ) 5 1,694,810 629,604 31.26 71.9 #180 & over Under |l ll to |2 |2 to |3 |3 & over 1 3 S 385,806 1,309,004 122,578 407,026 31.77 91.09 73.1 71.6 Avsrag* |43.44 335 expenditure in relation to sales. These tables support the detail contained in Tables 232 to 235, inclusive. In considering Table 230, it was pointed out that the amounts of in- ventories per $100 of total net sales vary inversely with the amounts of advertising expenditure per $100 of total net sales. But in this table, stores were not classified by size. When store-size is considered, as in Tables 237 to 240, inclusive, no such general tendency is observed. The larger the store, the smaller the in- ventories, but for stores of the same size, the amounts of inventory are substantially the same for stores hav- ing different amounts of advertising expenditure per $100 of total net sales.* In other words, store-size is more important in determining the amount of inventory in relation to sales than is the amount of adver- tising expenditure. In Tables 241 to 244, inclusive, the amounts expended for advertising are expressed in terms of selling ex- pense for stores classified by size and by the amounts of their inventories in relation to sales. When the stores for the combined years are considered, it is found that the advertising expendi- tures per $100 of selling expense in- crease, on the whole, as stores increase in size. The average for the three years for all the stores is $21.27. For * For the stores with sales of $80,000 to $180,000, inventories per $100 of sales in- crease with advert isinf^ per $100 of sales in the combinetl years, and in 1919 and 1918. The same condition holds in 1919 and 1918 for the stores with sales of $40,000 to $80,000. those stores with annual sales under $40,000, it is $19.79; for those with annual sales of $40,000 to $80,000, it is $18.06; for those with annual sales of $80,000 to $180,000, it is $21.67; and for those with annual sales of $180,000 and over, $22.53. When the entire group of stores is considered, irrespective of size, but in accordance with the amounts of inventory in relation to sales, advertising expendi- tures remain essentially constant pro- portions of selling expense. When the stores are classified by size, more- over, while the proportions increase as stores increase in size, they show no regular direction of change with changing inventories for the different size-groups. It is difficult to gener- alize with respect to them in view of the divergent tendencies. The tables give the detail for the combined and individual years. By means of the graphic summaries, the relationships which obtain between them may be readily compared. It should be remembered in con- sulting these tables that a group of identical stores has been used. From year to year, however, the stores vary in sales and in the amounts of their inventories. Inventories, as a whole, were lower in 1918 than in 1914, and lower in 1919 than in either of the other years. Accordingly, as may be seen from Tables 242 to 244, inclusive, not only is the number of stores dif- ferent from year to year in each of the size-groups, but also different in each of the inventory groups. The changes may be illustrated as follows : In 1914, 71 of the stores had sales 336 TABLE 241 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED Classified Amoimt of Inventory per 5 100 of Total Net Salee Himber of Store- yeajra Total Selling Expense Total Advertising Advertising per $100 of Selling Expense Total Net eales Amount ( Per Cent. (In 000' b) Orapbic Actual ) 20 40 60 60 100 120 140 Total (Average ) 447 $4,745,829 $1,009,377 $21.27 100. Onder $20 iZO to $40 $40 to $60 $60 k over 14 168 177 88 172, 900 3,088,085 1,128,967 355,877 36,654 655,340 243,739 75,644 21.20 21.22 21.59 20.69 99.7 99.8 101.5 97.5 Total (Average ) ! 1 Total (Average ) 127 298,231 59,024 19.79 93.0 i Under $20 $20 to $40 $40 to $60 $60 & over 1 18 52 56 948 54,036 112,294 130,953 228 9,477 26, U2 23,207 24.05 17.54 23.25 17.72 U3.1 82.5 100.3 89.3 ODdar |40 ! ; ; 1 Total (Average) 166 877,524 158,486 18.06 84.9 i Under $20 $20 to $40 $40 to $60 $60 & over 6 52 82 25 29,622 283,795 428,579 135,528 4,904 54,480 74,251 24,851 16.56 19.20 17.32 18.34 77. » 90.5 81.4 ee.e |40 to $80 1 i Total (Average) 112 1,445,029 313,119 21.67 101.9 ^^^^^ too to tiso Under $20 $20 to $40 $40 to $60 $60 &: over 5 60 40 7 53,399 802,675 499,659 89, 396 8,305 156,342 122,886 25,586 15.55 19.48 24.59 28.62 73.1 91.6 11S.6 154.6 ^^^i ^'^i^ ; Total (Average) 43 2,125,045 478,748 22.53 105.9 Under $20 $20 to $40 $40 to $60 $60 & over 2 38 3 88,931 1,947,679 88,435 23,217 436,041 80,490 26.11 22.34 23.17 122.8 fieo & over 105.0 108.9 i Avarago (21.27 337 TABLE 242 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OP TOTAL NET SALES, 1919 Claaeiried Total (In oOO'i) AaouDt of Inventory par $100 of Total Nat Sales Total Selling Expense Total Advertising Advertising par $100 of Selling Expense Per Cent. Oraphlc Total (Average ) Under ^40 |40 t« |80 ♦eo to $180 liao & over Total (Average) ♦2,135,072 $453,840 $21.26 Ondar $20 $20 to $40 $40 to $60 $60 8c over 105, 7U 1,649,518 345,965 33,878 24,173 348,645 73.301 7,721 Total (Average) 29,018 6,262 dnder $20 $20 to $40 $40 to $eo $60 & over 6,275 15,797 6,946 Total (Average) 233,843 Coder $20 $20 to $40 $40 to $60 $60 & over 7,320 94,720 122,592 9,2U Total (Average) 700,800 Under $20 $20 to $40 $40 to $60 $60 & over 54,307 465,124 183,648 17,721 Total (Average) 1,171,411 Under $20 $20 to $40 $40 to $60 $60 !c over 64,084 1,083,399 23,928 895 4,334 1,033 38,705 1,224 16,723 19,317 1,441 137,666 3,573 84,725 44,121 5,247 271,207 19,376 246,302 5,529 22.87 21.14 21.19 22.79 14.26 27.44 14.87 16.55 16.72 17.66 15.76 15, 6A 19.64 10.41 18.22 24.02 29.61 23.15 30.24 22.73 23.11 100.0 107.6 99.4 99.7 107.2 67.1 129.1 69.9 77.6 78.6 83.1 74.1 73.6 92.4 49.0 85.7 113.0 139.5 108.9 142.2 106.9 108.7 Average $21.26 338 under $40,000. In 1918, there were 42 with sales of this amount, and in 1919 there were 14. Moreover, in 1914, 29 or 41 per cent, of the 71 stores, had inventories of $60 and over. In 1918, 23, or 55 per cent. of the 42 stores, had inventories of this size, and in 1919, 4, or 29 per cent, of the 14 stores, had inventories of this size. Similar changes in other groups characterize the stores from year to year. TABLE 243 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP SELLING EXPENSE, FOR 149 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1918 Aaoant of Inventory p«r tlOO of Total net Salee HoBber of Stores Total Selling Expense Total Advertising Advertising per $100 of Selling acpense Cluilflsd Total Fet SaT Uo «3o to i:«o »40 » oT.r 10 23 1.06 l.as 47.1 64.7 0.50 0.9S 49.0 93.1 »>tal (ATsra,:?*! 10« l.ST 60.9 0'.78 74.5 (Ms t* tso tt*ler t.:o «SC to (Uo t40 k o,,r S 49 B8 1.3S l'.4S 1.28 81.8 69.8 8a.« a.js a.87 0.83 32.4 68.7 83.3 ?otja (*Tor»j3) «e t.OO 68. a 1.08 102.9 1 •80 U lUO ITUSar tto t«0 to »«0 Ho a> OTor 6 es 90 0.81 l.Sl 8.34 96.0 84.9 104.0 0.19 0.87 1.S6 18.6 85.3 192.9 M «.90 124.4 1.00 98.0 i tto to Mo » 89 1 S.SJ 2.87 2.3* 113.3 127.6 los.a 0.67 1.10 1.9S S5.9 107 .a 194.x lUOk mr i ATttr«g« i2.2S Averago %\,0Z 342 TABLE 246 AMOUNT OP ADVERTISING PER $100 OF SELLING EXPENSE PER STOCK TURNOVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF INVENTORY PER $100 OF TOTAL NET SALES, 1919 itaouiit of Inventory p«r $100 cf TotBl !Iet Sales Hunber of Etorea Advertising per (100 of Sailing Expenae Advertising per (100 of Sellli^ Bxj>«n9* per Stock Turnover Claeslfled Total Anonst fer Cent. Anount Par Cent. (in OOO'a) 3 20 40 Oraphlo 60 60 1 Actual 100 120 140 *'"="° 1 Actual 3 20 40 60 60 100 120 140 160 180 20O Total (Avorogo) 282 $22.15 100.0 (10.07 100.0 j Undor $20 tso to Uo t40 k ovor 17 153 112 25.28 22.14 20.50 114.1 100.0 92.6 5.75 9.23 14.G* 57.1 91.7 145.4 Tot«l (Avorae«) I i j j • 1 t j i Total (Average) S3 19.59 88.4 13.06 129 .7 1 1 Ondsr i*a tinder ^20 $20 to t40 Uo t over 10 2S 1S.6S 20.01 84.1 90.5 8.87 15.39 88.1 152.3 ""^ 1 : Total (Average ) 106 18.39 83.0 10.22 101.5 '"■■^" (Tnder t20 $20 to (40 Uo 4 over 5 45 58 23.70 20.73 16. S« 107.0 C5.6 7S.9 S.64 9.42 10.91 56.0 93.5 108.9 $40 to *80 ■ j j i Total (Average) SS 19.71 89.0 10.37 103.0 — ! i Sao to tiso Dndar (20 (20 to (40 (40 k over 5 65 90 S.22 IS. 62 25,13 41.6 84.1 104.4 2.20 8.49 15.42 2i.a 64.0 153.1 ""^ i Total (Average) 45 24.62 111.2 8.79 87.3 Dnd«r (20 (20 to (40 (40 k over 9 15 1 27.52 24.06 2S.U 124.2 108.6 104.3 6.12 60.8 91.9 191.3 iieo i over 1 Avorage €£2.13 Average $10,07 tain for some of the groups in the different years. Fourth, when the amounts of advertising expendi- ture are expressed per $100 of total net sales for the amounts sold per $1 of inventory, they decreased between 1914 and 1918, and 1918 and 1919, for stores classified by size. Fifth, expenditures for advertising per $100 of total net sales for the amount sold per $1 of inventory increase as the amounts of inventory per $100 of total net sales increase. This condition holds for stores treated as a whole and when classified by size. Sixth, the amounts of inventory per $100 of total net sales for stores con- sidered irrespective of size decrease as the amounts of advertising per $100 of total net sales increase. When the stores are classified by size, the amounts of inventory per $100 of total net sales neither increase nor decrease regularly as the amounts of advertising expended per $100 of total net sales increase. Seventh, advertising expenditures per $100 of selling expense increase as stores in- 343 crease in size. Eighth, the amounts of advertising per $100 of selling expense, for stores considered irre- spective of size, remain essentially constant for one group — 149 — and decrease for another group — 282 — of stores, as inventories in relation to sales increase. When stores are clas- sified by size, the direction of change in the amounts is uncertain. The tendency for some of the groups is for tlie amounts to increase and for others to decrease as inventories in relation to sales increase. C. — Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales, for Stores Classified hy Bates of Stock Turnover and hy Size, 1919. For 1919 the records of 282 stores are available for a study of the amounts of advertising expenditures per $100 of total net sales for stores classified by rates of stock turnover and by size. In Table 247 the stores are classified by size and by rates of stock turnover. In Table 248 they are classified by the size of city in which they are located, and by rates of stock turnover, store-size being ignored. For the 282 stores, as shown in Table 247, the average expenditure for advertising per $100 of total net sales is $2.25. For the stores which turned their stock less than once, it is $1.72. From this amount as a minimum, the expenditures increase to $2.59 for stores which turned their stock four times and over. For the stores with a given rate of turnover, advertising expenditures per $100 of total net sales increase as the stores increase in size. That is, the amounts of advertising per $100 of total net sales vary directly with the size of the store, this condition obtaining not only for the group treated as a total, but also when it is classified by the rates at which stock is turned. In the detail in which the data are shown, there are too few instances in a number of places to secure a satis- factory average. The data, however, are shown in this form because it is thought desirable to give standard expenditures in this particular for stores classified according to the con- ditions which seem to determine the amounts. It is not contended, of course, that a causal connection is shown between the amounts of adver- tising expenditure and stock turn- over. The association between these facts, however, is so unmistakable as to suggest, if not a causal, at least a related connection. In Table 248, the same 282 stores are classified by location and by rates of stock turnover. For the stores arranged in this form, two methods of expressing the amounts of adver- tising are used : First, they are given in terms of sales; and, second, in terms of sales per stock turnover. For the 204 stores in the small cities, the average amount of expendi- ture per $100 of total net sales is $1.59. For the group of stores, when classified by the rates of stock turn- over, the amounts decrease generally as the stock turnover rates increase. For the 78 stores located in the large 344 TABLE 247 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAIi NET SALES, FOR STORES CLASSIFIED BY RATES OF STOCK TURN- OVER AND BY SIZE OF STORE, 1919 Claaelfled Total Net sales (In OOO'b) Htonber of Stores Total Het. Sales Total Advertising Advertising per $100 of Total Net Sales Rates of Btook Aiaount Per Cent. Qraphlc Actual p 20 40 60 80 100 12.0 14i0 Total (Average) 282 $35,563,014 $799,944 $2.25 i 100.0 Total (Average) Under $40 »40 to #80 $80 to $180 $180 ic over 33 106 98 45 1,012,152 6,020,400 U, 667, 072 16,863,390 11,888 82,543 233,690 471,823 1.17 1.37 2.00 2.80 1.72 52.0 60.9 '^^^"^^^^ I 124.4 I Total (Average ) 9 601,109 10,346 76.4 ^Hi^ TktdM- 1 Under $40 $40 to $80 $80 to $180 $180 (c over 2 4 3 64,787 226, 698 309,624 719 3,567 6,oeo 1.11 1.57 1.96 49.3 69.8 87.1 Total (Average) 136 11,010,775 209,205 1.90 84.4 1 1 to 2 Uhdar $40 $40 to $80 $eO to $180 $180 & over 19 66 45 6 570,712 3,571,041 5,487,136 1,361,886 7,328 49,604 122,893 29,380 1.28 1.39 2.24 2.13 56.9 61.8 99.6 94.7 Total (Average ) 100 15,987,018 389,788 2.44 108.4 2 t« S Under $40 $40 to $80 $80 to $180 $180 k over 12 26 40 2S 376, 653 1,561,875 4,663,355 9,385,135 3,841 21,447 89,307 275,193 1.02 1.37 1.92 2.93 45.3 60.9 85.3 130.2 Total (Average) 23 4,443,953 99,583 2.24 99.6 9 to 4 Under $40 $40 to $80 $80 to $180 $180 8c over 8 5 10 510,610 617,557 3,315,886 6,701 8,688 84,194 1.31 1.41 2.54 58.2 62.7 112.9 I Total (Average) 14 3,520,159 91,022 2.59 115.1 ^^^^^^^ 4 & over Under $40 $40 to $80 $80 to $180 , $180 8c over 2 5 7 150,276 889,400 2,780,483 1,224 6,742 83,056 0.81 1.14 36.0 50.7 132.9 i Average §2.25 345 cities, the average expenditure for advertising in relation to sales is $2.85. When this group is classified further by rates of stock turnover, the amounts increase as stock turn- over rates increase. When advertising expenditures in relation to sales are expressed on a per turn basis, the average amount for the 204 stores in the small cities is $0.84 and for the 78 stores in the large cities, $1.10. For both groups as located, the amounts, of course decrease as the rates of stock turnover increase. For the stores in the small cities which turned their stock less than once, the average amount is $2.11, and from this as a maximum, the expenditures decrease to $0.19 for those which turned their stock four times and over. For the stores in the large cities, if the single store which turned its stock less than once is excepted, the expenditures for adver- tising decrease from $1.75 for those that turned their stock one to two times, to $0.66 for those that turned their stock four times and over. There is an advantage in expressing the amounts of advertising in relation to sales per single turn, inasmuch as by this method the data are made TABLE 248 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY RATES OF STOCK TURNOVER, 1919 RttH of Stock TUTOOver IhiBber of Btor«B UvertlHas per tlOO of Totol Sot Soles Advertising per »100 of Total Hot Bales per Stock Turnover Bit* or Clt7 (U OOO'l) AoDUnt Per Cent. AnoTsit Per Cent. 3 20 40 60 80 100 120 140 160 5 20 49 6f 80 100 120 140 160 180 tot»l (ATora^ ) 282 (2.2S 100.0 tl.02 ttodv 1 1 to 2 2 to S S to « S 1S6 100 23 1.72 1.90 2.44 2.24 2. SB 76.4 84.4 ioe.4 99.6 lis. I 2.29 1.19 0.9S 0.66 0.64 224.6* US.7 total 1 over ^ ""^ Totnl (Averfcgo) 70.7 0.B4 DtoSor 1 1 to £ 2 to S 3 to 4 4 k OTor e 120 iB 10 7 1.S8 1.76 l.M 1.22 «r.B7 70.2 77.8 W.4 M.2 58:. 7 2.U 1.09 0.64 0.36 0.19 206.9* 106.9 TBS.7 3S.9 18. « Dndnr — Tot»l (ATerkge) 78 2.85 126.7 1.10 ttodar 1 1 to 2 2 to 3 5 to « 4 k oTor 1 16 41 13 7 ?.»0 2.f2 2.64 2.f.3 5.:o 128.8 116.4 126.2 116.» 146.7 3.87 1.76 1.14 0.77 0.66 ' 40 u^ ^^^^ . ^^^^^^ 64.7 ATsrecs H.2i Avaraee tl.02 ViU lenetb not 346 TABLE 249 COST OF MERCHANDISE SOLD, AVERAGE INVENTORY, 1918 AND 1919, AND AVERAGE ANNUAL STOCK TURNOVER, FOR STORES CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919 Slzo of city. Amoijnt of Advertising per $100 of Total Net Sales Number of Stores Cost of Merchandise Sold Average InventoiTr 1913 & 1919 Average Annual Stock Turnover Rato ( Per Cent. (In OOO's) Graphic Actual ) 20 40 60 80 100 120 Total (Average ) 282 $23,853,253 $10,940,487 2.2 100.0 Ifader $1 $1 to i2 $2 to $3 §3 & over 79 100 66 37 4,186,022 5,733,595 7,445,518 5,488,123 2,041,793 3,350,806 3,280,090 2,367,798 2.1 2.0 2.3 2.4 .Total . (Average) : 90.9 104.5 109.1 ^^^^^^^ Total (Average ) 204 11,492,072 6,167,981 1.9 86.4 1 Under $1 fl to §2 $2 to *3 tS & over 72 79 39 14 3,598,129 4,395,340 2,717,964 780,639 1,806,214 2,428,494 1,469,938 463, 335 2.0 1.8 1.8 1.7 90.9 ei.8 Under 40 : 77.3 Total (Average) 78 12,361,186 4,772,506 2.6 118.2 1 1 Under $1 $1 to $2 $2 to §3 |3 & over 7 21 27 23 587,893 2,338,255 4,727,554 4,707,484 235,579 922,312 1,810,152 1,804,465 2.5 2.5 2.6 2.6 113.5 113,6 118.3 113.2 40 and : Averagd 2.2 directly comparable. The contrasts which obtain between stores of dif- ferent location, but with uniform rates of stock turnover, are shown by amounts in Table 248, and it is un- necessary to review them in detail. In Table 249, the actual annual rates of stock turnover are shown for stores as classified in Table 248. This table is inserted primarily for the purpose of supplying the details used to calculate, in Table 248, the adver- tising expenditures per $100 of total net sales per turn. D. — Summary. (1). The amounts of advertising expenditure per $100 of total net sales generally decrease as the inventories per $100 of total net sales increase. This holds only when stores are classified without regard to size. For stores of a given size, the direction of change is uncertain. (2). The amounts of advertising expenditure per $100 of total 347 net sales for the amount sold per $1 of inventory increase as the size of the inventory in terms of sales increases. This is true for all stores and for stores of a given size. (3). For stores with a given amount of inventory per $100 of total net sales, the amounts of advertising per $100 of total net sales decreased be- tween 1914 and 1918, and 1918 and 1919. (4), For stores considered without regard to size, inventories in terms of sales decrease as the amounts of advertising per $100 of total net sales in- crease. For stores of a given size, they remain essentially constant as advertising ex- penditures increase. (5). The proportion of selling expense attributable to ad- vertising tends neither to in- crease nor to decrease as the inventories in terms of sales increase. (6). The amounts of advertising expenditure per $100 of total net sales per stock turnover increase as the inventories in terms of sales increase. (7). The amounts of advertising expenditure per $100 of selling expense per stock turnover increase as the in- ventories in terms of sales increase. (8). For stores Avith a given rate of stock turnover, advertising expenditures in terms of sales increase as the stores increase in size. (9). For stores with a given rate of stock turnover, the amounts of advertising, measured in terms of sales alone and of both sales and turnover, are higher in large than in small cities. 3. — YEIARLY AMOUNTS OF EXPENDITURE FOR ADVERTISING IN RELATION TO THE AMOUNTS OF GOODS SOLD PER FULL-TIME SALES-PERSON. The present discussion, which has to do with the amounts expended for advertising, corresponds to the simi- lar sections relating to selling expense and to wages and salaries, with the exception that tables reflecting the amounts of expenditure under dif- ferent conditions of wage payment, are omitted. For the analysis of the amounts of expenditure for advertising in rela- tion to sales per full-time sales-person, the records of 146 stores in each of the years 1914, 1918, and 1919 are available for study. A. — Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Expense, 1919, 1918, and 1914. The stores are classified in Tables 250 and 251, first, by years, and sec- ond, by the amounts sold per full- time sales-person. Two methods of expressing the advertising expendi- tures are used. The amounts are shown, first, for each $100 of total net 348 sales or selling expense, as the ease may be, and second, per $100 total net sales or selling expense per $1,000 sold for each full-time sales-person.* For the combined years, represent- ing the experience of 438 store-years, the average expenditure for advertis- ing per $100 of total net sales is $2.28. For 1914 the amount was * The methods by which these units are computed are explained on page 4, items 22 and 24. $2.57 ; for 1918, $2.22 ; and for 1919, $2.20. When the expenditures are expressed in a unit of sales for each $1,000 sold per full-time sales-person, the average amount for the com- bined years is $0.14. For 1914 it was $0.23; for 1918, $0.14; and for 1919, $0.11. It will be observed that the expenditures for advertising meas- ured in terms of sales alone decreased between 1914 and 1918, and 1918 and 1919, respectively, by 14 and 1 per TABLE 250 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES CLASSIFIED BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919, 1918, AND 1914 jbKnmt ot Mrnla* per Fall-tlM Baloe-ponoo (In OOO'd ■oBbor of Sto ra- ja ara Adrartlalng par tlOO of Total Bat Sals3 Advertlalng par $100 of Total Hot Salee par tlfOOO of Salsa par Full-tlma Selas-poraon T*u« Aaouit Par Cant. Aaount Per Cant. Qraphio 20 40 60 60 100 120 Aetroal 20 40 60 BO 100 130 140 150 180 200 Total (ATorago) 438 tz.zs 100.0 to. 14 ' 100.0 ', OUlar tl2 tl2 to tie tie to tzi t«i to tSS tS2 ft erar 151 107 iia 39 £9 2.32 2.12 2.27 2.51 2.24 lOl.a 93.0 99.6 UO.l 96.2 0.2S 0.15 0.12 0.09 o.oe 178.6 107.1 1 (lTar>«>) ■ • 1 1 1 42.9 1 TotU (ATorsga) 146 2.20 96.5 0.11 1 OaSar tl2 tl2 to tie tie to t24 $24 to tSS tSS ft OTOF IS 30 61 ei 19 2.27 1.56 2.05 2.69 2.31 99.6 66.4 69.9 118.0 101.3 0.23 0.11 0.10 0.10 0.06 164.3 78.6 71.4 71.4 42.9 1«U 1 1 »*tal (ATaraga) 146 2.22 97.4 0.14 100.0 t OMlaF tl2 tu to tie tie to te4 tZ4 to til |S2 ft OTOF SO 42 5T 14 S 1.97 2.10 2.49 1.90 1.67 86.4 92.1 109.2 83.3 73.2 0.19 0.16 0.13 0.07 0.04 135.7 114.3 92.9 50.0 28.6 isia ^^^ 1 1 ! ■^■i^Bi Total (ATaraga) 146 2.57 112.7 0.23 164.3 1 Oblar tl3 tl2 to tie tie to tZ4 t24 to tS2 tS2 ft oTar 86 36 20 4 1 8.59 2.62 2.73 2.30 0.35 110.5 U4.9 119.7 100.9 15.4 0.28 0.19 0.15 200.0 135.7 107.1 57.1 7.1 , 1 O.Ol ■ : ATorage t2.28 ATaraga' t0.14 349 cent. Between 1914 and 1918, and 1918 and 1919, the amounts per $1,000 sold per full-time sales-person de- creased by $0.09 and $0.03, or by 39 and 21 per cent., respectively. This more rapid decrease in the amounts from year to year is directly attribut- able to the increase in the amounts sold per full-time sales-person. In 1914, 1918, and 1919, respectively, these amounts were, on the average, $11,345, $15,613, and $20,437. When the stores are classified as in Table 250, there seems to be no defi- nite tendency in each of the different years for the amounts of advertising per $100 of total net sales to increase or to decrease as the amounts sold per full-time sales-person increase. "When the amounts are expressed in terms of sales per $1,000 sold for a full-time sales-person, however, they decrease in each of the years as the sales per full-time sales-person increase. By expressing the amounts in this form, they become directly comparable, in- a.smuch as both advertising and sales are reduced to a unit basis. The sizes of the decreases from year to year are found in the graphic and tabular parts of Table 250. In Table 251, the advertising ex- penditures are shown for stores classi- fied as in Table 250, The amounts, however, are given, first, as propor- tionate parts of selling expense, and second, as proportionate parts re- duced to a per $1,000 basis of sales per full-time sales-person. Brief con- sideration should be given to this table. For the combined years, advertis- ing expenditures constitute $21.18 of everv' $100 of selling expense, or, ex- pressed as a percentage, they repre- sent 21.18 per cent, of selling expense. In 1914, 1918, and 1919, the corre- sponding percentages were 22.64, 20.28, and 21.15. That is, they de- creased between 1914 and 1918, and increased between 1918 and 1919. When the expenditures are further expressed in terms of $1,000 sold per full-time sales-person, the average amount for the three years is $1.31. In 1914 it was $2.00; in 1918, $1.30; and in 1919, $1.03. That is, between 1914 and 1918, and 1918 and 1919, the amounts decreased. When the stores in each of the years are classified as in Table 251 by the amounts sold per full-time sales-person, the advertising expendi- tures, as proportionate parts of sell- ing expense, neither increase nor decrease regularly as the sales per full-time sales-person increase. The general tendency, however, is for them to increase. When they are computed for each $1,000 sold per full-time sales-person, they decrease as sales per full-time sales-person increase. By the use of this more refined unit, the stores from year to year and from group to group are more readily compared because the expenditures for advertising and the sales are reduced to a unit basis. The nature of the amounts wdth the in- creases from year to year and from group to group are shown in tabular and graphic form in Table 251. 350 B. — Yearly Amouiits of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Clas- sified by Size, 1919, 1918, and 1914. For the discussion of the amounts of advertising expenditures for stores of different size and with different amounts of sales per full-time sales- person, the records of 146 stores are available for study from year to year, while for 1919 alone the records of 269 stores may be used. Attention is given, first, to the larger group of stores, and second, to the stores which are identical from year to year. Based upon the records of 269 stores for 1919, as shown in Table 252, the average amount of advertis- ing expenditure per $100 of total net sales was $2.25. As the stores in- crease in size, the expenditures in- crease, the minimum being $1.13, for TABLE 251 AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER PULL-TIME SALES-PERSON, FOR 146 IDENTICAL STORES, CLASSIFIED BY AMOUNT OP SALES PER FULL-TIME SALES-PERSON, 1919, 1918, AND 1914 ABomit of Salsa par Pull-tljiia Bales-person (in OOO'a) BuBbor Of fitora- Taara MT«Ftlalii« per $100 of Sailing Bipania Advartlalng par $100 of Sailing Sxpansa par $1,000 ofSales par ?nll-tljM>Salao-pareon •x»m AaouDt Par Cant. Aarant < Par Cent. *"^° 1 Actual ) 2p 4p 60 8p 100 120 140 *^"« 1 Aotnal ) 20 40 60 80 100 12,0 140 160 180 200 Total (ATarse*) 438 $21.}B 100 .0 $1.81 100.0 Dnlar tl2 tl2 ta (la |16 to |24 i2i to %iZ »J2 ii OTsr ISl 107 \13 33 23 20.76 19.35 20.22 24.96 26.es 98.0 91.4 95.6 117 .8 126.9 2.21 1.41 1.06 0.91 0.72 168.7 107.8 (iTaragt) ,p^^^ 69.S SS.O Total (A»«r«ro ) 146 21.1S 99.9 1.03 78.6 Undar tl2 %12 to $16 tl6 to t24 t24 to %iZ $32 h OTsr 15 30 61 ei 19 24.61 IS. 3* 18.11 26.91 26.82 116.2 72.5 SS.S 127.1 I2s.e 2.59 l.U CSS o.ge 0.72 193.1 84.0 73. S 74.8 SS.O 1S19 — Total (AToraf^a ) 146 20. 2S 95.8 1.30 99.2 Oddar tl2 $12 to $16 $16 to $24 $24 to $3S $SZ k OTar SO 42 37 14 9 19.22 ia.S7 21.91 18.83 29.30 90.7 ea.l 103.4 88.9 141.2 1.89 1.S9 1.10 0.6B 0.80 144.9 106.1 S4.0 82.7 61.1 "■■^ (Araraga) 146 22.64 106.9 2.00 152 .7 Oidar $12 $12 t» $16 $16 to $24 $24 to $32 $32 i OT»r 86 SS 20 4 1 2Cr.99 23.38 27.88 20.17 12. 4« 99.1 110.4 131.B 9e'.2 e».e 2.34 1.67 1.49 0.73 0.33 178.6 127 .S 11S.7 SS.7 28 .2 1814 , '^^ '" !* ■^^^ — Anrags tnua Avara^ tX«9X 351 the stores with sales under $40,000, and the maximum $2.81 for those with sales of $180,000 and over. When the amounts are expressed per $100 of total net sales per stock turn- over, the average for the entire group is $1.02. As the stores increase in size, the expenditures for advertising in terms of both sales and stock turn- over increase from a minimum of $0.75, for the group of stores with sales under $40,000, to $1.06 for those with sales of $80,000 to $180,- 000. When the stores are further classi- fied by the amounts sold per full- time sales-person, the expenditures for advertising, expressed in terms of sales, do not show a tendency to in- crease or to decrease regularly as the amounts sold per full-time sales- person increase. In some of the store-groups the number of instances are too few to serve as a basis for generalization. The averages, how- ever, are inserted as representing the standards determined for the stores as classified. When the expenditures are shown for each $100 of total net sales per stock turnover, the amounts for each store-group generally decrease as the amounts sold per full-time sales- person increase. To this general rule, however, there are numerous excep- tions, although, as a general principle, the turnover rates, which accompany large sales per full-time sales-person, are of sufficient size in most instances to reduce the expenditures expressed in this form. The actual amounts, together with the increases or de- creases, are shown in tabular and graphic form in Table 252. For the 269 stores, advertising expenditures per $100 of total net sales, reduced to a basis of $1,000 sold per full-time sales-person, are shown in Table 253. Expressed in this manner, the average amount for the entire group is $0.11. For the stores that had sales of less than $40,000, the average is $0.07, and from this as a minimum the amounts increase to $0.12 as a maximum for the stores with sales of $180,000 and over. For the stores considered as a whole, and when classified by size, the expenditures decrease as the amounts sold per full-time sales-person in- crease. It is unnecessary to name these amounts inasmuch as they are contained in the table, the graphic summary of which makes a compari- son of them easy. In Table 254 a somewhat different form of analj^sis is presented. The table shows the amounts of sales (in dollars) secured per $100 of adver- tising expenditure.* For the 269 stores, the average is $4,435. For those with sales under $40,000, it is $8,880, and from this as a maximum the amounts decrease to $3,557 for stores with sales of $180,000 and over. That is, the sales secured for each $100 expended for advertising de- crease as the stores increase in size. When the stores are classified by size and by the amounts sold per full- time sales-person, the sales secured for each $100 of advertising tend, on * The method by which this unit is com- puted is explained on page 4, item 11. 352 TABLE 252 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 Aaeunt of S>lM t»r ?\lll-tlBO E«lea-parBon (In OOO'i) Hmbor of StoroB Adnrtlolng por (100 of Total Kot Salts AdTortlalng par (100 of Total Vat S«lea por Stock Turnover T«t«l *st Smln (In OOO'i) iaount far Cant. ABount Par Cent. Orapblo | Actual 2p 4p 60 SO 100 120 Hfl 160 Orapblc 20 40 60 80 100 120 140 160 ISO 1 Actual Tottl (iLTor«s> ) 269 (2.2S 100.0 (1.02 100.0 Undor 112 tl2 to tie |1£ to t2« tX* to tS2 t:e k aiar 90 SB 109 44 96 2.10 1.69 2.17 e.3e 2.S9 99.9 76.1 96.4 104.4 129.4 1.24 0.80 1.09 0.98 1.09 totU (Avarage) 78.4 ^- i Totil (AverA£8 ) 31 1.13 so.e 0.75 75.6 Cbjor (12 (12 to (16 (16 to (24 (24 to (32 (S2 t OTcr » 4 7 7 4 1.32 o.ei 0.62 0.79 2.02 66.7 40.4 96.4 93.9 69.8 0.94 0.51 0.63 0.44 1.26 ttader $40 ^^ 60.0 61. S 43.1 125. S — TotiJ (ATer«s« ) 109 1.37 60.9 0.76 74.S Onaor (12 (12 to (le (16 t«*(24 (24 te (32 (»2 i over 16 34 91 9 19 1.42 1.67 1.12 1.27 1.10 63.1 74.2 49.6 96.4 S2.4 0.95 0.96 0.62 0.60 0.62 93.1 96.1 60.8 58.8 60.8 |40 to ^ i Tot»l (Aver«^e ) 92 2.01 69.3 1.06 Undor (12 (12 to (IS (16 to (24 (24 to (32 (32 « ever 4 U 50 14 9 3. 55 1. 01 1.94 1.97 2.15 148.9 64.9 66.2 67.6 94.7 1.76 0.96 1.08 0.94 0.76 172.& 94.1 10S.9 92.2 »eo to liso Tottl !A,.roKO) 43 2.81 124.9 1.04 Dndor (12 (12 to (16 (16 to (24 (24 to (32 (32 & 07er 1 3 1£ 14 10 2.61 1.52 2.81 z.ee 3.49 124.9 67.6 124.9 lit. 2 155.1 1.12 109.6 1.08 — ' — ^ • 10S.9 100.0 106.9 ^^^^ ^"T"" 1.09 • .iTCfA^ %2,a ATera^ 1 1.03 the whole, to increase as the amounts sold per full-time sales-person in- crease. This is not true for the stores treated irrespective of size, nor for all of the groups as classified in this form. Generally speaking, however, there is a direct relation between the sales secured per $100 of advertising and the amount of goods sold per full-time sales-person. The actual amounts and the changes from group to group are shown in Table 254. The foregoing discussion relates to the records of 269 stores for the year 353 TABLE 253 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME S.VLES-PERSON, FOR STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 Tot.l *»onat or &»!•■ psr PoU-tlM 6«l«i-p«.~aall-tlj!ie Salee-peraon lat Balsa (In OOO'a) Amount far Cant. Aaoont Per Cent. ) 20 40 60 eo 100 120 140 Ortphlc 1 4^„j^ J 20 40 60 80 100 120 140 160 160 Total (Averaga ) 4se (2.28 100.0 (0.14 1 Dndar tl2 •12 to |16 (le to t2« t24 to tZS tS2 k OTer 1£1 107 lie s» 25 2.52 2.12 2.27 2.51 2.2« 101.8 85.0 68.6 110.1 se.2 0.25 0.15 0.12 0.09 0.06 1 178.6 107. 1 85.7 total (ATaraaa) Total (Ayerage ) 125 1.70 74.6 0.16 U4.3 Usdar tl2 %12 to (le (IE to (24 (24 to (22 (52 » OTer 71 25 17 10 4 l.ee 1.54 1.24 1.78 2.22 82.5 58. e 54.4 76.1 97.4 0.24 0.10 0.07 0.06 0.06 171.4 71.4 50.0 DuSar i*0 -iii— ::^ Total (iTorago) 165 1.67 75.2 0.12 85.7 Oalar (12 (12 to (16 (le to (24 (24 to (i2 (92 k omr 65 «B se 7 7 i.a2 1.71 1.42 1.51 O.Bl 84.2 75.0 62.5 66.2 55.5 0.19 0.12 o.oe o.oe 0.02 155.7 85.7 67.1 42.9 14.5 $40 to tao — Ibtal (Avaraxa ) 108 2.28 100.0 0.14 100.0 DBdar (12 (12 to (18 (16 to (24 (24 to (S2 (J2 k o»or 14 51 46 12 S S.U 2.16 2.21 2.02 2.06 156.4 S4.7 96.9 68.6 90.4 0.51 0.16 0.12 O.oe 0.06 221.4* 114.3 es.7 57.1 42.9 teo to tuo HZ" Total (Avaraga ) 42 2.75 U9.7 0.15 92.9 Ondar (12 (12 to (16 (16 to (24 (24 to (52 (S2 k OTor 5 6 17 10 7 5.72 2.86 2.60 £.84 2.51 165.2* 125.4 U.4.0 124.6 110.1 0.56 0.21 0.15 0.10 0.07 257.1* 150,0 a2.a 71.4- 5o'.a tiso k oTor _ , . Anr*et (2.2S ATcrags (0.14 Pull lon^tb not eiiOvL 357 TABLE 256 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FUXIj-TiaiE SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OP SALES PER FULL-TIME SALES-PERSON, 1919 Anotmt of Salea p«r Pull-tlaio Balaa-peraon (In OOO'a) Umber or Stores AdTortlalng par (100 of Total Hat Salsa AdTortlalng per (100 of Total Hot Sales per (1,000 of Salea per Pull-tljao Sales-person Claaairiad To-.«l I>t S«:a> (IB OOO'i) Ajacrunt for Cant. Aaoont for Cant. Oraphia | Actual 20 40 60 80 100 120 140 160 Qraphlo 20 40 60 80 100 120 1< Actual Total (ATemge) 146 (2.20 1 100.0 (O.U 100.0 ttador (12 (12 to (IS (16 to (24 (24 to (32 (32 k over IS 50 61 21 19 2.27 1.58 2.05 2.69 2.31 103.2 70.9 S3.2 122.3 105.0 0.23 O.U 0.10 0.10 0.06 209.1** 100.0 eo.s 90.9 64.5 (ATftr&g«) — ' Total (Avorane) 14 i.4e 66.4 0.09 81.8 ' Dador (12 (12 to (le (16 to (24 (24 to (32 (32 S 0T« 6 1 4 2 2 1.3S 1.24 0.71 0.96 3.43 61.8 56.4 Z2.3 43.S 157. 3 0.14 0.09 0.04 0.04 0.10 127. S si.ar S6.4 36.4 90.9 OaiaT (40 zz ■■■■■■ TotU (Arerago) 64 1.28 68.2 0.06 72.7 ttadar (12 (12 to (16 (16 to (24 (21 to (32 (32 4 over 8 la 18 4 '« 1.33 1.67 1.08 1.40 0.S8 60 .5 71.4 49.1 6S.S 40.0 0.14 0.11 0.06 0.05 o.oa 127.3 100.0 54.5 45 .S ia.8 tU t« (80 Totol (Average) M 1.97 e«'.5 0.11 100.0 1 Onder (12 (12 to (16 (16 to (24 (24 to (32 (32 k over t U SO 7 4 S.02 1.5S r.86 1.91 2.07 828.2* 70.5 89.1 ee.8 94.1 0.50 0.11 O.U 0.07 0.06 454.5* 100.0 100.0 63.S 64.5 (80 to (ISO Total (Averbga) 24 2.65 120 .S O.U 100.0 ' i 1 tl80 ft OTor Dnder (12 (12 to (IS (16 to (24 (24 to (32 (32 h OTsr 9 8 7 2.4S '2.99 2.51 IIO.S 135.9 114.1 0.13 O.U 0.07 • 118.2 100.0 «S.6 ' Aier^ea (2.20 Avorags (O.U PuU length not f&oan of selling expense constituted $22.13. In otiicr words, advertising consti- tuted 22.13 per cent, of selling ex- pense. When the stores are further classified by size, the expenditures for advertising per $100 of selling expense range from $18.28, for the stores with sales of $40,000 to $80,000, to $24.37 for stores with sales of $180,000 and over. That is, generally 358 speaking, the amounts increase as the stores increase in size, or, in other words, advertising expenditures for stores of increasing size increase more rapidly than do the total selling ex- penses. When the advertising expen- ditures per $100 of selling expense are reduced to a per stock turnover basis, the average for the entire group is $10.06. For those stores with sales under $40,000 it is $12.77. From this as a maximum, the amounts decrease to $9.03 for the stores which had sales during this year of $180,000 TABLE 257 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1918 CtaaBiriad AmoTjilt of Sales per Pull-tlmo Saies-peraon (In OOO'a) number of Storee Advertlalng per $100 of Total net Saloa MvertlBlne per $100 of Total Hot Ealea per $1,000 of Sales per Pull-time Saloe-peraon Rat Salss Aaonmt Per Cent. Aiunmt Per Cent. Oraphlc 1 Actual 3 20 40 60 80 100 120 140 Orophle 1 Actual 3 20 40 60 80 100 120 140 160 180 Total (Average) 146 $2.22 100.0 $0.14 1 100. Under $12 112 to »16 tie to t24 t2i to $32 (32 t over 50 42 37 14 3 1.B7 2.10 2.49 1.90 1.67 88.7 94.6 112.2 65.6 75.2 0.19 0.16 0.13 0.07 0.04 135.7 114.3 92. » 50.0 28.6 (Average ) ^^^ * Total (Average) 40 1.52 68.5 O.IS Dnder tl2 $12 to $16 $16 to $24 $24 to $32 $32 4 over 21 7 5 S 2 1.56 1.38 1.06 2.28 cr.se 70.S 62.2 47.7 102.7 4Cr.l 0.18 0.10 0.06 0.08 0.02 Alder Uo ... ll. 71.4 42.8 57.1 14.3 — Total (Average) 61 1.63 73.4 0.12 Dnaer $12 $12 to $16 $16 to $2i $24 to $32 $32 i over 24 20 15 2 1.92 1.62 1.30 0.61 86.S 7S.0 58.6 27.5 CIS 0.12 0.07 0.02 128.S 85.7 SO.O 14.3 ito to teo - Total (Average) it 2.SS 107.7 0.14 100.0 Dnder $12 $12 to $16 $16 to $24 $24 to $32 $32 k over 5 11 10 5 1 2.66 2.25 2.58 2.16 2.03 11S.4 ' 101.4 116.2 9T.3 91.4 0.24 0.16 0.13 o.oe 0.06 171.4 U4.S S2.» 57.1 42.9 %ao to tiao Total (Average) 13 2.63 118.5 0.15 107.1 tieo t OTor Obder $12 $12 to $16 $16 to $24 $24 to $32 $32 k over 4 7 2 2. SI 2.80 1.73 llS.l 126.1 77.9 0.20 0.14 O.oe 142.9 100.0 «S.9 Average $2.22 359 TABLE 258 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER $1,000 OF SALES PER FULL-TIME S.VLES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 AaouBt of Siaoi por Pull-tUM S«loi-p«r«ofi (in 0O0'«) Sn>b«7 or AdTortlaiAg par tlOO of Total lat Salsa AdvartlBlng par tlOO of Total lat Salea par tlfOOO of Salea par Pcll-tljna Salas-paraon Clutiriod Total «*t tmlf (la ooo'>) Far Cant. ABOunt Far Cant. Storaa Aoount OrapMo Actoal 20 40 eO 80 100 120 140 160 Crapble 1 Aatual 3 20 40 60 80 100 120 140 160 Total Unngo ) 14« te.ST 100.0 tO.23 100.0 1 96.1 101.9 106.2 89.5 13. e 0.28 0.19 0.15 O.oe 0.01 121.T 82.6 es.a 34.8 4.3 tu to tie tie to tM t24 to taz tS2 h oTor S5 20 « 1 2.e2 2.V, 2.30 0.3S — Unr> 20 40 60 Orapblo JAotuU 80 lOO 120 140 160 180 2001 total (Arerage ) 438 (21.18 i 100.0 (l.Sl 100.0 (12 to tlS (le to U* t24 to Ise |32 & oTor 151 107 lis 3S 2S 20.76 19.33 20.22 24.96 28.se B8.0 91.4 «5.6 117.8 126.8 2.21 1.41 1.06 0.91 0.72- 168.7 107.6 80.9 69.6 55.0 (AToras*) 1 1 Total (AToraga) 12S 19.80 S3.S 1.90 14S.0 1 uadar tl2 tl2 to tie (le to (24 (24 to (S2 (52 k OTar 71 ss 17 U 4 1S.4* 19.43 17.64 28.77 44.26 8T.8 91.7 83.3 135.8 209.D* 2.38 1.42 0.9S 1.05 1.19 181.7 108.4 71.0 80.2 90.8 VDitT UO ' 1 1 Total (Avarago) 1£S 18.19 85. « 1.36 103.8 1 ttadar (12 (12 t« (16 (16 to (24 (24 to (32 (32 k over es 46 3S 7 7 17.76 18.07 IB. 65 21.08 20.06 83.9 85.3 88.1 S9.5 94.7 1.78 1.31 1.02 0.77 0.47 13S.9 100.0 77.9 tto to tso ^^^^^^^, ^^"^^"""""^ 1 Totol (Avaraga) 108 21.26 100.3 1.28 1 ' Ondar (12 (12 to (16 (16 to (24 (24 to (32 (32 k ovar 14 91 46 1£ 5 29.76 19.41 21.49 19.62 18.13 126.3 91.6 101.5 92.6 85.6 2.64 1.40 l.is 0.73 O.SO 201.5 106.9 86.3 i&o to (leo • Total (ATaraga ) 4e 22. 5S 106.5 1.11 1 ODdar (12 (12 to (16 (16 to (24 (24 to (32 (32 1. o,.r S 6 17 10 7 25.20 20.41 19.82 26.87 29.75 119.0 96.4 93.6 126.8 140.5 2.41 1.52 1.01 0.97 0.81 JlBO i onr , i 61.8 ATon«* li.n roll leugtb not tbova 363 TABLE 262 AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER FL'LL-TIME SALES-PERSON, FOR 146 STORES CL.VSSIFIED BY SIZE AND BY AMOUNT OF SxVLES PER FULL-TIME SALES-PERSON, 1919 Aatnint of S.li>. poi- p\iH-ti»o Soltto-pxrooa (la OOO'.) of Stoi-M ftd,«^i.i«8 p- tioo o, s.m.s arp-" 1 Vi.'SS? oflSr.*^? ^n^Tt^S^YirJ^r.?.' TOtO lot Stol Uwoa*) M 91.93 loc.o 1.3T 133.0 ttoe«r tl2 tu to tie tie to t24 tS4 to t9< %S» ft OTW 8 4 * S u.sa is.sa 10.08 80.33 48.se si.a 71.4 •T.8 •ea «W.7» 1.97 104 o.si 0.7» 1.40 191.3 110.7 49.S Oidftr ttO -— ^mmam 13S.9 1 1 lotad M 17.18 81U i.oe 101.9 U».l»«o) e u u 4 e 13.U u.oe 18^4 23.08 10 .S8 ea.e ae.a T«.a aos.a ae.T 1.5» 1.28 0JB1 0.86 0.48 133.0 124.3 84. S 83.3 46. S •«a to teo tu to tie )1S to t2« tM to t3t »32ft r^F .^^^_____ 1 1 ?t.t«l (iTorogo) M U.3« S1.S 1.08 102.9 1 OBdor tu tu to tu tu to %M t24 to tSS taftorcr a u 30 7 « seas u.ao M.70 es.es is.u S«8.S» M.3 S3.X 107.1 S.61 O.ge 1.08 0.89 0.44 644.7* 95.1 10S.9 8C.S 42.7 lea to tiso 1 1 »>t.l (Anrogo) S4 ta.n ioe.4 0.S4 91.3 • 1 1 tlSO ft nar Cedar tu tu to tie S e 7 1T.45 37.88 W.7S ea.8 ux.a 140.7 o.ea 1.00 0.81 89.3 97.1 78.e 1 t24 to t33 ^^^^1 •"""" ; *7u;.l length Bot ohjwn sales of $180,000 and over it is $22.55. Over the entire range of sizes, the amounts increase as the stores in- crease in size. When the stores are further classified by the amounts sold per full-time sales-person, the expen- ditures for advertising for the entire group, irrespective of size, increase as the amounts sold per full-time sales-person increase. For stores of a given size-group, however, this ten- dency is not so evident. For the small stores — those with sales of less than $80,000 — the amounts seem gen- 364 erally to increase as the sales per full- time sales-person increase. For the other two groups, the direction of change is uncertain. When the expenditures for adver- tising are shown per $100 of selling expense for each $1,000 sold per full- time sales-person, the average for the entire group is $1.31. The largest amount — $1.90 — applies to the stores with smallest sales, and the smallest amount — $1.11 — to those having larg- est sales. That is, over the entire range of sizes, the expenditures ex- TABLE 263 AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1918 Aaount of S>lo> par FiOl-tljM Salea-peraoD (In OOO'i) ■nbar of Storoa Ade s»r $100 of E«Uln« BiiMns* AdTartlslng par $100 of Sailing Expanaa par $1,000 of Saloa par Pull-tlaa Salaa-poraon Total Sot SalM ABixmt Far Cant. Aaoimt Per Cant. 30 40 60 80 100 120 140 160 180 <=r'P^l» Actual 20 40 60 80 100 120 140 160 Total Urerago) 148 $20J8 100.0 $1.30 100.0 1 Vnimr $12 $12 to $18 $16 to $24 $24 to $33 $33 h onr SO 42 37 14 S 19.23 10.67 21.S1 13.83 29.90 94.S 92.1 108.0 92.9 147.4 1.89 1.39 1.10 0.69 0.80 145.4 106.9 Uvoraso) 1 ^^^ 53.1 61.5 , 1 1 total (ATorago) S0.9 1.56 120.0 "•" 1 ' Itedar $12 $12 to $ie $16 t. $24 $24 to $J2 $32 h onr 21 7 S 15.72 19.30 i4.oa 77.5 SS.3 69.3 173.8 12V.3 1.80 1.43 0.75 1.3S 0.81 138.5 110.0 57.7 96.2 62.3 VaiKf $40 1 1 1 3 1 32.30 1 1 Total (Areraga) CI 17.42 63.* 1.32 lOl.S 1 Dndar $U $12 to $ie $16 to $24 $24 to $32 $32 . ovr 24 j 13.34 30 17.05 15 16.17 3 i 17.53 90.4 84.1 79.7 86.7 1.73 1.29 0.69 0.62 133.1 96.9 68.3 47.T $40 to $80 IB^^iM^iV f 1 1 Total (Averago) S2 1 21.83 107.6 1.28 96.5 1 Qad«r.$lS $12 to $1» $1« to $24 $24 to $32 $32 h orar S ' 26.43 130.3 108.6 109.8 83.6 145.2 2.36 1.S8 1.11 0.63 0.81 181.5* 120.0 85.* 4S.S 63.5 $80 to $ieo ^^T^ 10 5 1 22.27 le.95 29.44 20.99 "^■■■■■■^■T ■■■" r Total (ATorago) 13 103.3 1.17 90.0 1 1 $1S0 « oTsr Vaimr $12 $12 to $1« $16 to $24 $34 to $3S $3et oTw 4 7 3 17.47 2a.97 18.57 86.1 U2'.8 91.6 - 1.36 1.13 0.67 106.2 66.9 Sl.S , ^— ^^^^^^^^ 1 AT«r«^ $1.30 •?UU langt^ not choi 365 TABLE 264 AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR 146 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1914 Aammt of Balea per Poll-tlae Saloe-perBPn (in.ooo'e) Boater of Store* Advertising per $100 of Selling Bxpesae Advertlalng per $100 of Selling Sxpanso per $1,000 of Sales per Pull-tlno Sales-porcon cussinsd Tot.l Bet &*!•• (In OOC'e) taoant tor Cent. Amount. Per Cent. QrspUo 1 Aetual 3 20 40 60 80 100 120 140 Graphic 1 ^^^^ ) 20 40 60 80 100 120 1^ Total (ATersge ) 146 $22.64 100.0 $2.00 100.0 Dbder $12 $12 to $16 $16 to $24 $24 to $32 $32 & OTor 86 5S 20 4 1 20.99 23.36 27.85 20.17 12.46 92.7 103. 5 125.0 89.1 55.0 2.34 1.67 1.49 0.73 0.33 117.0 63.5 (AT«rags) — 56.5 16.5 — ^ Total (Average) 71 20.29 89.6 2.26 113.0 Older $12 $12 to $16 $16 to $24 $24 to $32 $32 » over 45 15 e » 19.73 19.81 26.94 21.99 - 87.1 87.5 119.0 97.1 2.74 1.43 1.45 0.S2 137.0 71.5 72. S 41.0 Under Uo Total (Average) 4a 19.90 87.9 1.77 88.5 Onilar $12 $12 to $16 $16 to $24 $24 to $32 $32 k over SI 10 6 1 1 18.52 19.99 51.06 19.20 12.46 80.9 88.3 157.2 84.8 S5.0 1.90 1.46 1.76 0.67 0,55 95.0 73.0 88.0 33.5 16.5 $40 to ^ ^" — Total (Average) 22 24.60 108.7 1.91 95.5 Older $!£ $12 to $16 $16 to $24 $24 to $32 $32 k over » e 22.74 23.87 29.11 100.4 104.1 128.6 2.35 1.75 1.51 117.5 86.5 75.5 |eo te (180 Total (Average) B £5.25 Ul.S 1.96 98.0 UnHer $12 $12 to $16 $16 to $24 $24 to $32 $32 t over s 1 1 26.20 26.50 21.54 111.3 116.2 95. 1 2.41 1.76 1.20 120.5 87.5 liao & oTsr I Average $22 .64 Average |2*00 pressed in this form decrease. Within each group of stores, moreover, when they are further classified by the amounts sold per full-time sales- person, the advertising expenditures decrease. For the entire group in which the sales per full-time sales- person are less than $12,000, the ex- 366 penditure for advertising, expressed in this form, is $2.21, while for those in which the amount sold per full- time sales-person is $32,000 and over, the amount is $0.72, Similar de- creases hold for each of the groups.* The basis of classification normally requires this. In Tables 262 to 264, the expendi- tures for advertising, for stores classi- fied as in Table 261, are shown for the years 1919, 1918, and 1914, re- spectively. The amounts for the dif- ferent groups of stores from year to year, as well as the tendencies which they may have to increase or to de- crease when differently classified, are fuUy set out in the tables, and it is unnecessary to review them in detail at this point. In considering these tables, the reader should remember that care has been taken to eliminate, so far as possible, all elements of error in the data and to classify the stores in the detail necessary to make comparisons of significance. To have printed the frequencies with which the different items occur, or even the highs and lows in the detail provided for in the tables, would have unduly compli- cated the tabulations and probably been of little value in the interpreta- tion of the norms or standards shown. One of the many reasons for showing the expenditures in the form of com- plex units has been to obviate the necessity for elaborating the tabula- tions. * There is a slight exception to this rule for the stores having annual sales less than $40,000. C. — Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Classified by Size and hy Size of City in Which Located* 1919, 1918, and 1914. Analysis has shown that the size of the city in which stores are located helps to determine the amounts of expenditure for store operations. In order to take note of this factor in the discussion of advertising expen- ditures, a group of 103 stores with annual sales of $40,000 to $80,000 in 1919 has been classified in Tables 265 to 268, inclusive, by location and further by the amounts of sales per full-time sales-person. Table 265 shows that the average expenditure for advertising per $100 of total net sales for the 89 stores located in cities with population under 40,000 was $1.32. It also shows that the corresponding amount for the 14 stores located in cities with population of 40,000 and over was $1.64. When the amounts expended for advertising are expressed per $100 of total net sales per stock turn- over, they constitute, on the average, $0.78 for the stores in the two city- groups. When they are expressed in terms of $100 of sales for each $1,000 sold per full-time sales-person, as in Table 266, the average amount for the stores in the large cities is $0.09, and for those in the small, $0.08. For the stores in each of the city- groups, when further classified by the * Population figures are for 1920. 367 TABLE 265 AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES PER STOCK TURNOVER, FOR STORES WITH SALES OF $40,000 TO $80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 imnmt of Soles p«r Pull-tlE» tAloB-perflon (In OOO'i) Vinbcr or stores Advertising per $100 of Total let Sales Advortlalng per tloo of Total let Sales pep Stock Turnover site of Asount Per Cent. Amount Fer Cent. CltT (lo OOO'i) (SrapMc D 20 40 eO 80 ICO 120 140 160 ISO Actual <^"P"' 1 Actual 1 20 40 60 60 100 120 140 Iot»l (Average ) 103 tl.S7 ^^^^^^^^^ 100.0 $0.76 1 : DBdsr «12 tl2 to )16 «16 to »24 $24 to t52 tS2 k OTcr 16 M 51 9 IS 1.42 1.67 1.12 1.27 1.18 103.6 121.9 61.8 »2.7 86.1 0.95 0.98 0.62 0.60 0.62 i2s:o 128.9 61. e 76.9 81.6 Itet»l (Average) 1 ■' l" ^^1^^,^^ 1 ^^^^^^^^ 1 Total (ATerago ) 89 1.S2 96.5 0.78 102.6 Ondsr tl£ |1£ to tlS tie to t£4 t£4 to tSZ t52 » AdTcrtlatsg per $100 of SelUng Siq>imM AdTertlalns per $100 of Selling BxpeDS» per Stock Tumovor 81 u of City Aaount Per Cent. Aaount For Cant. Graplile 1 20 40 60 80 ICp 120 1^0 160 160 Actoaa araphio 1 Actual 3 20 40 60 80 I90 120 140 Tot»l 103 $1S.28 1 ■100.0 $10.16 100.0 OaivT tl2 tl2 to $16 tie ta $24 ♦24 to »i2 $32 h over 16 M 31 9 15 IS .76 19.43 17.00 17.75 23.41 86.2 106.3 93.0 97.1 123.1 lO.Sl 11.43 9.44 e.4S 12.52 1 103.4 112.5 92.9 83.2 121.3 7 U*aFae«) ' Total (Avorage) e» IS.OS 98.7 10.62 104.5 Osdar $12 $12 to $16 $16 to $24 $24 to $32 $52 i over 14 29 29 e u 18.37 20.01 15.44 15.48 25.24 84.1 109.S 84.S 84.7 138.1 10.25 11.77 9.08 8.60 12.62 100.9 115.8 89.4 84.6 l£4.e 40 Total (Average ) 14 ' 19.42 106.2 9.25 91.0 ; Osder $12 $12 t« $18 $16 to $24 $24 to $32 $S2 «c OTor 2 S 2 3 2 20.16 16.66 32.72 17.68 14.30 U0.3 91.1 178.0 96.7 78.2 12.60 8.33 9.92 7.07 8.94 124.0 82.9 97.9 69.6 88.0 40 and . ^ OT«r ' ATarB^ ilS«Sft ATerago |10*16 amounts sold per full-time sales- person, the average expenditures are different. In most eases the number of stores is inadequate to serve as a basis for comparison. For stores within both city-groups, however, the advertising expenditures, measured in this form, decrease as the sales per full-time sales-person increase. D. — Summary. (1). The amounts of advertising expenditure per $100 of total net sales per $1,000 of sales for a full-time sales-person decreased between 1914 and 1918, and 1918 and 1919. This holds for all stores and for stores of a given size. (2). The amounts of advertising per $100 of selling expense per $1,000 sold for a full- time sales-person decreased between 1914 and 1918, and 1918 and 1919, for all stores and for stores of a given size. (3). For stores of a given size, the expenditures for advertising, measured in terms of sales alone, tend to increase as the sales per full-time sales-per- son increase. When measured in terms of sales per stock 370 TABLE 268 AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE PER $1,000 OF SALES PER FULL-TIME SALES-PERSON, FOR STORES WITH SALES OF $40,000 TO $80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF SALES PER FULL-TIME SALES-PERSON, 1919 Amount of Salos por PUll-tlM Seltta-paraon (m ooo'«) Number of Storoa Adrartlalng par ♦lOO of Sailing Sxpenia AdTortlaln^ per ♦1,000 of Salaa ♦loo of Salllag Bzpanaa per par Pull-tljw Salaa-peraon of city (In 000'«) AiBount ?«> Cant. Aoount far Cent. ) 20 40 60 Sp 100 1^ 140 160 ISO Actual ) 20 40 1 ActnaJL 60 80 100 120 140 160 Tot»l (Av«r«go ) 103 ♦la. 28 ^J 100.0 ♦l.lO ■'■ '-1— 100.0 1 ( Dndar ll£ tl2 to tie tlS to t24 t24 to tS2 ♦32 i o.,r 16 Si 31 9 13 13.78 19.43 17.00 17.73 23.41 86.2 lee.s «3.0 97.1 128.1 1.57 1.34 0.90 0.66 0.56 142.7 121.8 81.8 60,0 80.0 Tot«l ' (ATer«g«) ^^^^^^^m ' ^^^^^ 1 • 1 1 Total (ATOragt) 89 18.0S 98.7 l.U lOO.O I ttadar tl2 tl2 to tie tl6 t« tZ* ti* to $32 ♦32 k OT«r 14 29 S9 6 15.37 2*. 01 15.44 15.48 25.24 84.1 109.9 84.8 84.T ise.i l.SS 1.S9 0.88 0.S7 0.60 138.2 126.4 74. S E1.8 54.8 tlni«p ^I^MHB 40 ^^^^ • r 1 • Total t Avarage ) 14 19.42 106.2 1.10 100.0 1 1 Dndar tVl ♦12 to ♦is ♦16 to ^24 ♦24 to ^32 ♦32 h oTar 2 t 2 3 g ao.ie ie.6s 32.72 17.S8 14.30 91.1 179.0 96.7 78.2 2.12 l.U 1.S6 0.67 0.S2 102.7 141.8 •0.9 29.1 40 >nd ^^""^^""^ over ^^^^^^ , ^^^^■""^^ ' , ^^_ Avor«8» ^13.28 Averftg* ll.lO *7ull langtb not Aawm turnover, and in terms of sales for the amount sold per full-time sales-person, they decrease as the sales per full- time sales-person increase, (4). The proportions of selling expense attributable to adver- tising increase as the amounts sold per full-time sales-person increase for all stores and for stores with sales under $80,- 000. The direction of change is not uniform for stores with sales of $80,000 and over. (5). The amounts of advertising expenditures, expressed in terms of selling expense and stock turnover, are irregular for stores with different amounts sold per full-time sales-person. In terms of sell- ing expense and the amount sold per full-time sales-person, however, they decrease as the sales per full-time sales-per- son increase. (6). For stores of a given size, the average amount of advertis- 371 ing expenditures per $100 of total net sales for a $1,000 sold for a full-time sales-per- son is higher in the large than in the small cities. (7). For stores of a given size, the average amount of advertis- ing expenditure per $100 of selling expense for a $1,000 sold per full-time sales-person is the same in both small and large cities. 4. — YEARLY AMOUNTS OP EXPENDITURE FOR ADVERTISING IN RELATION TO EXPENDITURES FOR RENT AND IN- VESTMENTS IN FIXTURES, FOR STORES CLASSIFIED BY YEARS, BY SIZE, AND BY LOCATION. The discussion of the amounts ex- pended for advertising, considered in this section, is based upon stores clas- sified according to the amount of rent paid per 100 square feet of floor space and to the amounts invested in fix- tures per $100 of total net sales. In outline, it follows closely a similar discussion of the amounts of wages and salaries paid, although in some respects it is less inclusive. (1) — YEARLY AMOUNTS OF EXPENDI- TURE FOR ADVERTISING IN RELA- TION TO EXPENDITURES FOR RENT PER 100 SQUARE FEET OF FLOOR SPACE, FOR STORES CLASSIFIED BY SIZE OF CITY IN WHICH LOCATED.* For the purpose of analyzing the expenditures for advertising per $100 of total net sales and per $100 of • Population figures are for 1920. selling expense for stores paying dif- ferent amounts of rent per 100 square feet of floor space, a group of stores having annual sales between $40,000 and $80,000 in 1919 is selected. The stores are classified in Table 269 by the size of the city in which located and, further, by their rent expendi- tures, measured in units of floor space. A brief consideration of this table is of interest. For the 87 stores located in the small cities, as shown in Table 269, the average expenditure for adver- tising per $100 of total net sales is $1.34; per $100 of total net sales per stock turnover it is $0.79; per $100 of total net sales per $1,000 sold per full-time sales-person, $0.08; and per $100 of total net sales for the amount sold per square foot of floor space, $0.08. These are the same units which are used in the discussion of the amounts of wages and salaries paid for stores classified in the same manner. For this group of stores, the advertising expenditures per $100 of total net sales increase as the amounts paid in rent per 100 square feet of floor space increase, the minimum amount being $0.88 and the maximum $1.67. When the expenditures are measured in terms of net sales per stock turnover, they likewise increase with the increase in rent paid per unit of floor space. A similar condi- tion obtains when the amounts are expressed per $1,000 sold per full- time sales-person. On the other hand, when they are expressed per $100 of total net sales for the amount sold per square foot of floor space, they de- 372 crease with increasing rent payments per 100 square feet of floor space. This follows because of the dimin- ished floor space which is used under conditions of high rental.* The amounts of advertising expen- diture per $100 of selling expense are also shown in Table 269, the same units which were used when relating them to sales being employed. The table shows the amounts for stores having different rent expenditures per 100 square feet of floor space, and it is unnecessary to review them in detail. The general directions of change agree with those found when the amounts are expressed in terms of sales. One feature of Table 269, however, requires brief consideration. The * See Table 75 and the accompanying discussion. lower part of the table shows the average amounts of expenditure for advertising in terms of sales and of selling expense, for 10 stores having sales of $40,000 to $80,000, but located in cities with population of 40,000 and over. By consulting the table, comparisons maj^ be made of adver- tising expenditures for stores with similar rentals and sales, but with different location. Without reviewing them in detail, it is of interest to observe that the average amounts per $100 of total net sales and per $100 of selling expense are greater for the stores in the large, than for those in the small cities. This table should be studied in conjunction with the cor- responding tables which relate to the amounts spent for wages and salaries and total selling expense for stores similarly classified. TABLE 269 RELATION OF ADVERTISING TO TOTAL NET SALES AND SELLING EXPENSE, FOR STORES HAVING SALES BETWEEN $40,000 AND $80,000, CLASSIFIED BY SIZE OF CITY AND BY AMOUNT OF RENT PER 100 SQUARE FEET OF FLOOR SPACE, 1919 size of Cltj (to OOO'a) iBormt of Rout per 100 »q. ft. of Floor Space of Stores AdTartleloe per $100 of Total Hat Sales AdTartlsloe par $100 of BarUng Sxjmbbu Salek Alone Per Stock Turnover Per $1,000 of Sales per Poll- 1 lice Sales-porsoa Per Sales per aq. ft. cf Floor Space Selling Expense Alone Per Stock Turnover Per $1,000 of Sales par FaU-tlao Sales-person Par Salaa per sq. ft. of Floor Spec* ATerage 67 $1.54 $0.79 $0.08 $0.06 $18.13 $10.66 $1.10 $1.04 VBOar 40 (tadar $20 (30 to $40 $40 to $60 $60 ft ovar U 4S 17 14 0.88 i.es 1.67 1.S4 0.44 0.79 0.93 0.96 0.05 0.08 O.U 0.10 0.09 0.07 0.08 0.06 13.44 18.27 10.91 18.88 6.72 U.42 U.06 11.80 0.71 1.09 1.31 1.24 1.36 1.09 0.90 O.70 40 czid OTar $60 ft orep 10 1.87 o.ei 0.11 0.06 20.54 6.04 1.16 o.ee 373 A- — Sujnmary. (1), For stores of a given size, the amounts of advertising ex- penditure per $100 of total net sales increase as the amounts of rent paid per 100 square feet of floor space in- crease. (2). For stores of a given size, the proportions of selling expense attributable to advertising in- crease as the rental payments per 100 square feet of floor space increase. (2) — YEARLY AMOUNTS OF EXPENDI- TURE FOR ADVERTISING IN RELA- TION TO INVESTMENTS IN FIX- TURES PER $100 OF TOTAL NET SALES. For the analysis of advertising ex- penditures per $100 of total net sales and per $100 of selling expense for stores classified by the amounts in- vested in fixtures per $100 of total net sales, the records of 135 stores are available. The purpose of this analy- sis is to determine the relation, if any, which exists between the amounts expended for advertising in relation to sales and the amounts of the fixture investments, similarly expressed. A. — Yearly Amounts of Expenditure for Advertising per $100 of Total Net Sales and, per $100 of Selling Expense, 1919, 1918, and 1914. Table 270 shows the average amounts of expenditure for adver- tising per $100 of total net sales for 135 stores, classified by the amounts invested in fixtures per $100 of total net sales. Without reviewing the average expenditures for each of the years for the 135 stores, as a whole, attention is directed primarily to the amounts in each year for stores hav- ing different fixture investments per $100 of total net sales. For the com- bined years, the average advertising expenditure per $100 of total net sales, for the stores which had fixture investments of less than $2 per $100 of sales, is $1.84. From this average as a minimum, the amounts increase to $2.71 for the stores which had $6 or more invested in fixtures for each $100 of sales. For each year, with two unimportant exceptions, the ex- penses for this purpose increase, as the amounts invested in fixtures per $100 of total net sales increase. That is, a direct relationship between ad- vertising expenditures and invest- ment in fixtures is found. This is to be expected in view of the fact that an important service rendered by fixtures is the display of goods. In the nature of the case, such a display involves some expenditure for adver- tising. In Table 271 the average fixture investments per $100 of total net sales are shown for stores classified by years and further by the amounts of advertising expenditure per $100 of total net sales. The purpose of this table is to show the direct relationship which obtains between fixture invest- ments and the amounts expended for advertising. With a single exception, amounts of fixture account vary di- rectly with the amounts expended for advertising in relation to sales. 374 TABLE 270 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Pljcture Account per $100 of Total Net Sales Number of Store- years Total Net Sales Total Advertising Advertising per SlOO of Total Net Sales Xo«ra Amount Per Cent. GrAphlc Actual ) 20 40 60 80 100 120 140 Total (Average) 405 $40,576,908 1923,442 |2.28 ' ' ' ' 1 -'■— 100.0 1 1 Under |2 $2 to (4 i4 to |6 }6 & over 72 131 86 116 8,020,930 10,428,302 7,841,253 14,286,445 147, 545 206,442 182,392 587,263 1.84 1.98 2.33 2.71 80.7 86.8 102.2 118.9 Total 1 (Average) • 1 1 1 Totea (Average) 136 18,919,233 412,745 2.18 95.6 1 Under $2 $2 to ^ fl to $6 ♦e & over 58 51 23 23 5,228,703 4,897,266 3,173,841 5,619,423 100,793 93, 916 67,564 150,472 1.95 1.92 2.15 2.68 84.6 84.2 93.4 117.5 1919 1 1 1 Total (Avorage) 155 13,360,145 293,780 2.20 96.5 1 1 1918 Under (2 $2 to $4 |4 to $6 $6 & over 20 45 34 56 2,163,476 5,706,664 2,807,944 4,682,071 55,524 75,135 64,292 120,829 1.55 2.05 2.29 2.58 68.0 89.0 100.4 113.2 1 ^ Total (Average) 135 8,297,530 216,917 2.61 114.5 Under $2 $2 to $4 $4 to $6 $6 & over 14 35 29 57 628,751 1,824,582 1,859,448 3,984,949 13,028 37,391 50,536 115,962 2.07 2.05 2.72 2.91 90.8 89.9 119.5 1914 1 ! Average |2.28 In Table 272, the amounts of ex- penditure for advertising are shown as proportionate parts of selling ex- pense. The bases of classification of the stores are years and amounts in- vested in fixtures in relation to sales. For the combined years, the stores which had less than $2 invested in fixtures for each $100 of sales, spent $17.69 in advertising for each $100 of selling expense, while those which had $6 and over invested in fixtures, similarly measured, expended $21.38. Over the entire range of stores, when classified by fixture investments, ad- vertising expenditures become a pro- 375 portionately larger part of selling expense. This holds not only for the combined, but also for the individual years. There are certain exceptions to this rule and these the reader may observe for himself by consulting the table. It is unnecessary to review for each of the years the amounts of advertis- ing expenditure per $100 of selling expense for stores treated without relation to fixture investment. This has been done in various places in the preceding discussion. While the amounts in this case slightly differ from those for other groups of stores, the variations on the whole are of the same general nature and the amounts not widely different. TABLE 271 TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Aaovmt of Advertising per OlOO of Total Bet Salea number of Store- years Total Net Sales Anount of Fixture Account Fixture Account per $100 of Total Bet Salea TSCM Amount Per Cent. Q-"apW.e 1 Actual 3 20 40 60 BO 100 120 140 160 180 200 Total (Average) 40S $40,576,908 $1,908,079 $4.70 ^^^^^^: 100.0 Dader %1 ♦l to 42 $2 to (3 tS 4 over 99 123 109 69 6,041,768 9,375,659 14,595,172 10,564,309 217,855 354,297 674,077 661,850 3.61 3.78 4.62 6.26 76.8 80.4 98.3 133.2 Total (Average ) Total (Average) 155 18,919,233 738,774 3.90 83.0 1919 Dnder |l ♦l to t2 »2 to »J ^ 4 over 39 39 42 15 3,049,266 3,903,793 8,280,017 5,686,157 93,17J 128,510 339,711 177,582 S.C6 3.29 4.10 4.81 65.1 70.0 87.2 . U)£.3 Total (Average) 135 13,360,145 620,889 4.65 98.9 Under |1 ♦ l to »2 t2 to |3 *3 4 over 36 44 35 £0 2,112,506 3,258,720 4,278,153 3,710,768 87,312 119,980 204,313 £09,284 4.13 3.68 4.78 5.64 87.9 78.3 101.7 120.0 Total (Average) 135 8,297,530 548,416 6.61 140.6 Onder tl |1 to tZ %2 to tS |3 4 over 24 45 32 34 879,996 2,213,146 2,037,002 5,167,386 S7,372 105,807 130,053 275.184 4.25 4.78 6.38 8.69 90.4 101.7 135.7 184.9 1914 ; Average $4.70 376 TABLE 272 TOTAL SELLING EXPENSE, TOTAL ADVERTISING, AND AMOUNT OF ADVERTISING PEB $100 OF SELLING EXPENSE, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 Amount of Fixture -Account per tlOO of Total Uet Balea number of Store- years Total Selling Expense Total Advertising Advertising per $100 of Sailing bpense Tears Amonnt < Per Cent. Craphlo Aotnsl 20 40 60 89 lOp 12p Total (Average) 405 $4,428,098 $923,442 120^5 100.0 1 1 Under $2 »2 to U a to «6 i6 & over 72 131 86 116 852,922 985,648 798,319 1,811,209 147,345 206,442 182,392 587,263 17.69 20.94 22.85 21.38 84.8 100.4 109.6 102.5 Total (ATerage) Tbtal (Average) 155 1,992,310 412,745 20.72 99.4 Under J2 |2 to U U to $6 ^6 k oTsr 38 61 23 23 556,252 428,443 326,474 702, 161 100,793 93,916 67,564 150,472 18.85 21.92 20.70 21.45 90.5 108.1 99.3 102.8 1919 Total (Average) 155 1,473,360 293,780 19.94 95.6 Under |2 $2 to $4 p^ to |6 $6 !c over 20 45 34 36 244,748 570,632 267,521 590,559 33,524 75,135 64,292 120,829 iy.7o 20.28 24.03 20.46 65.7 97.3 115.5 98.1 Total (Average ) 155 962,428 216,917 22.64 108.1 Older (2 |2 to $4 $4 to $5 t6 k over 14 35 29 57 52,942 186,675 204,324 518,489 13,028 57,391 50,536 116,962 24.61 20.03 24.73 22.37 118.0 96.1 118.6 107.3 1914 Average $20.85 B. — Yearly Amotmts of Expendi- ture for Advertising per $100 of Total Net Sales and per $100 of Selling Expense, for Stores Clas- sified hij Size, 1919, 1918, and 1914. In Tables 273 to 276, inclusive, the average amounts of advertising ex- penditure per $100 of total net sales are computed for stores classified by years, by size, and by the amounts in- vested in fixtures per $100 of total net sales. The amounts may be studied from two points of view: First, from year to year for stores 377 TABLE 273 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET S.\LES, 1919, 1918, AND 1914, COMBINED Araotmt of Fixture Aooonnt per §I00 of Total Net Sales number of Store- jears Total Bet Sales Total Advertising Advertising per #100 of Total Het Sales Claaairied Totftl Vet Sales (In OOO'b) Amoimt Per Cent. °'''P^° 1 Actual 5 2p 4p 6p ap 100 120 i4iO Total (Average) 405 #40,676,908 #923,442 #2.28 100.0 Under #2 ♦2 to |4 U to «6 #6 k over 72 Ul 86 116 8,020,930 10,428,502 7,841,235 14,286,445 147,545 206,442 182,392 387,263 1.84 1.98 2.33 2.71 80.7 86.8 102.2 118.9 Total (Average ) ^^ I Total (Average ) 112 5,119,809 54,547 1.74 76.5 Under |40 Dnder }2 ♦2 to $4 H to $6 ^6 * over 14 28 27 43 403,667 800,159 723,519 1,192,274 6,768 12,713 11,735 24,111 1.43 1.59 1.62 2.02 62.7 69.7 71.1 88.6 1 Total (Average) 153 8,672,180 145,442 l.«8 75.7 — |4o to feo Dnder |2 ♦2 to »4 #4 to |6 #6 It over 20 65 51 59 1,107,291 3,755,697 1,653.451 2,155,841 10,467 61,733 31,295 41,947 0.95 1.64 1.89 1.95 41.7 71.9 82.9 85.5 Total (Average ) 98 11,411,444 253,444 2.22 97.4 Under |2 #2 to U |4 to f e ♦6 k over 27 55 19 19 5,021,911 3,838,758 2,592,924 2,157,851 56,997 77,049 61,961 67,457 1.89 2.01 2.59 2.66 82.9 88.2 113.6 116.7 #80 to tlSO Total (Average) 42 17,575,475 470,209 2.71 118.9 Under $2 »2 to |4 U to $6 $6 & over 11 7 9 16 5,487,871 2,033,788 5,071,559 8,780,477 74,093 54,947 77,401 253r,76e 93.0 118. « 110.5 131.6 llBO k over 2.70 Average #2.28 378 TABLE 274 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 Classified Amount of Fixture Account per $100 or Total Net Sales Humber of Stores Total Het Sales Total Advertising Advertising per $100 of Total Het Sales Total Hst Sales (m 000' e) Amount Per Cent. ^^''P^'^ Actual ) Zp ip 6,0 8,0 100 1^0 1^0 Total (Average ) 155 $18,919,235 $412,745 $2.18 1 100.0 i Qnder (2 »2 to U (4 to $6 (6 & over S8 51 25 23 5,228,705 4,897,266 3,175,841 5,619,425 100,793 93,916 67,564 150,472 1.95 1.92 2.13 2.68 88.5 Total (Average) 97.7 122.9 ^^^"^"" Total (Average ) 12 374,525 5,686 1.62 69.7 Under $2 (2 to f4 (4 to |6 (6 & over 2 4 5 3 62, 964 129,541 92,703 89,117 1,875 986 928 1,897 2.98 0.76 1.00 2.15 136.7 34.9 45.9 97.7 Ttoder UO ZI. Total (Average) 52 2,967,756 39,857 1.34 61.5 |4o to teo Under $2 |2 to $4 »4 to (6 |6 & over 8 28 a e 470, 684 1,668,927 431,726 406,419 5,202 24,255 6; 945 6,455 0.68 1.46 1.61 1.34 — 51.2 67.0 75.9 61.5 Total (Average ) 48 5,603,210 104,534 1.87 85.8 Under |2 $2 to $4 (4 to $6 $6 8c over 20 15 7 6 2,217,649 1,759,679 836,118 789,764 38,350 50,856 17,015 18,315 1.75 1.75 2.03 2.52 79.4 80.3 93.1 106.4 (30 to $180 Total (Average ) 26 9,975,942 262,668 2.65 120.6 ttider tz %Z to fr4 #4 to (6 (6 Be over 8 4 5 6 2,477,406 1,549,119 1,815,294 4,534,123 57,566 57,819 42,676 124,807 2.32 2.80 ?.35 2.88 106.4 128.4 107.8 132.1 ♦l80 Jt over , Average |2.X8 379 of a given size, and second, from store-group to store-group in each of the years for stores classified by size, with variable amounts invested in fixtures. The latter comparison is of chief interest. Without reviewing in detail the averages under the condi- tions established in the tables, it is of interest to observe that the expendi- tures increase with the amounts in- vested in fixtures per $100 of total net sales. This condition obtains for the stores treated as a whole and, with minor exceptions, when they are clas- sified by size. A single group of stores — those with sales of $40,000 to $80,000 — for the combined years, may be used to illustrate this tendency. The average for this group of stores is $1.68. For those which had invest- ments in fixtures of less than $2 for each $100 of sales, the average amount is $0.95. For those with fix- ture investments of $2 to $4, similarly measured, the average is $1.64; for those with fixture investments of $4 to $6 it is $1.89; and for those with fixture investments of $6 and over, it is $1.95. Similar increases hold for each of the other groups of stores, although the actual amounts, tending as they do to increase with the size of the stores, are different. In Table 274, the expenditures for advertising per $100 of total net sales are shown for the 135 stores classified by the amount of their fixture invest- ment in 1919. For the entire group of stores the average for this year is $2.18, as compared to $2.28 for the combined years. For the group of stores with sales of $40,000 to $80,000, it is $1.34, as contrasted with $1.68 for the combined years. In this group, however, there is the same tendency for the expenditures to in- crease with an increase in fixture in- vestments per $100 of total net sales. It is unnecessary to review the ac- tual amounts of advertising expendi- ture for stores in 1918 and 1914. They are contained in Tables 275 and 276, respectively. It is, however, advisable again to call to the reader's atten- tion the fact that, while 135 identical stores are studied from year to year, both the sales and the investments in fixtures in the stores varied from year to year, with the result that the same stores are not encountered in a given sales or fixture investment group. In spite of this fact, however, there is an advantage in using a group of iden- tical stores over one in which not only sales and fixtures, but also the num- ber, vary. Because of the direct relationship which obtains between fixture invest- ments per $100 of total net sales and advertising expenditures, similarly measured, it has been thought of in- terest to include Tables 277 to 280, inclusive, which show for the 135 stores, the average amounts invested in fixtures per $100 of total net sales for stores having different classified amounts of expenditure for advertis- ing in relation to sales. The stores are classified according to size. For the combined years for all the stores, the average fixture investment per $100 of total net sales is $4.70. For the stores with sales of less than $40,000 it is $5.26, and from this 380 TABLE 275 TOTAL NET SALES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1918 Classified Total Set Sales Amount of Fixture Account per $100 of Total Ket Sales Number of Stores Total Net Sales Total Advertising Advertising per $100 of Total Het Sales Amount C Per Cent. (In OOO'a) Graphic 1 Actual > 20 40 60 80 100 120 140 Total (Average) 135 $13,360,145 $293,760 $2.20 100.0 Total Under |2 »2 to U $4 to t6 ♦s k over 20 45 34 55 2,163,476 3,706,654 2,807,944 4,682,071 33,524 75,135 64,292 120,829 1.55 2.03 2.29 2.58 1 70.5 92.3 104.1 117.3 (Averago) ^^^^" 1^ Total (Average ) 37 1,117,468 17,642 1.58 71.8 Vn&ar $40 Ubder #2 ♦2 to #4 U to «6 $6 It over 4 S 11 14 124,966 269,792 297,192 425,518 1,735 4,076 6,383 6,448 1.39 1.51 1.81 1.52 63.2 68.6 82.3 69,1 Total (Average ) 56 3,239,547 51,826 1.60 72.7 t40 to |90 Under i2 #2 to %4 U to *6 $6 & over a 22 IS U 434,936 1,335,132 779,116 690,363 4,353 22,641 12,045 12,787 1.00 1.70 1.55 1.85 45.5 77.3 70.5 84.1 Total (Average ) 28 3,298,407 75,369 2.32 105.5 Under $2 »2 to »4 ♦4 to |6 $6 8t over 5 12 6 6 593,109 1,417,061 654,591 633,646 10,709 31,290 16,639 17,731 1.81 2.21 2.54 2.80 82.3 100.5 115.5 127.3 |80 to |180 Total (Average ) 14 5,704,723 147,943 2.69 117.7 Under i2 »2 to «4 |4 to te |6 k over 3 3 3 5 1,010,465 684,669 1,077,045 2,932,544 16,727 17,128 30,225 63,863 1.66 2.50 2.81 2.86 75.5 113.6 127.7 130.0 |180 & over AverBge $2.20 381 TABLE 276 TOTAL NET S^VLES, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OP TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OP TOTAL NET SALES, 1914 Clasgirisd Total Met Sales (In OC'O'e) Araount of Fixture Account per $100 of Total Net Sales Total Net Sales Total Advertising Advertising per $100 of Total Net Sales Graphic p 2p 4p 6,0 ep 10,0 izp 140 iqo Total (Average ) Ihder #40 ^ to |80 teo to tlSO ^180 & oTer Total (Average) $3,297,530 $216,917 Uoder $2 (2 to U |4 to $6 #6 fc over 628,751 1,324,582 1,659,448 5,984,949 13,028 57,391 50, 556 115,962 Total (Average ) 1,628,016 51,019 Under |2 $2 to |4 |4 to |6 $6 k over 216,927 400,826 535,624 677,659 2,178 7,651 5,424 15,766 Total (Average ) 2, 464-, 877 55,759 nider (2 |2 to >4 #4 to $6 ♦6 t over 201,671 761,538 442,609 1,059,059 2,912 14,837 12,505 25,705 Totia (Average ) 2,509,827 72,541 Coder #8 Is to |4 ♦4 to »6 %6 & over 211,153 663,018 902,215 751,441 7,958 14,905 28,507 21,393 Total (Average ) 59,598 Under $9 |2 to #4 ♦4 to |6 #6 II over 181,000 1,513,810 4,500 55,098 $2.61 2.07 2.05 2.72 2.91 1.91 1.01 1.91 1.65 2.33 2.18 1.44 1.95 2.78 2.24 2.89 5.76 2.25 S.14 2.91 2.49 3.64 Average $2.61 100.0 79.3 78.5 104.2 111.5 7S.2 38.7 73.2 62.5 89.3 83.5 55.2 74.7 106.6 85.8 110.7 144.1 86.2 120.3 111.6 95.4 139.6 382 TABLE 277 TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE, AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914, COMBINED Classified Tot;al :i9t Sales Anoimt of Advertising per $100 of Total Net Sales of Store- years Total Net Sales Anoimt of FLnt'jxa Acoouat Fixture Aeoount per $100 of Total Det Sales A,-noimt Par Cent. Cln OOO'a) °ra^^o 1 Actual 3 20 40 60 80 100 120 140 160 Total (Average ) 405 $40,576,908 $1,908,079 $4.70 100.0 tJnder $1 $1 to $2 $2 to $3 iZ k over 99 128 109 69 6,041,768 9,375,659 14,595,172 10,564,309 217,855 354,297 674,077 661,350 3.61 3.73 4.52 6.26 76.3 Total (Average ) 133.2 Total (Average) 112 3,119,809 164,125 5.26 1U.9 Under $1 ♦l to $2 $2 to $3 $3 4 over 31 44 20 17 919,298 1,214,515 546,408 439,588 43,996 63,129 54, U9 22,881 4.79 5.20 6.24 5.21 101.9 iia.a 132.3 110.9 Under $40 ^^*""" Total (Average ) 153 8,672,180 377,800 4.36 82.8 Under $1 $1 to »2 $2 to $3 $3 i ove> SO 50 35 18 2,797,430 2,771,467 2,034,101 1,069,132 104,578 122,201 84,959 66,062 3.74 4.41 4.18 6.19 79.6 93.3 88.9 131.5 $40 to ieo Total (Average ) 98 11,411.444 431,319 3.73 80.4 |80 to $180 Ondar $1 $1 to $2 $2 to $3 $3 & over 16 27 33 22 1,763,073 3,166,728 3,948,606 2,533,037 58,204 94,473 149,388 129,254 3.30 2.98 3.78 5.10 70.2 63.4 80.4 103.5 Total (Average) 42 17,373,475 934,835 5.33 114. S tlBO fc over Under $1 $1 to $2 $2 to $3 $3 i over 2 7 21 12 S«l,967 2,222,949 8,066,057 6,522,502 11,077 74,494 405,611 443, 653 1.97 3.35 6.03 6.80 41.9 71.3 107.0 144.7 ' Average $4.70 383 TABLE 278 TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1919 ciuiirisd Tot»l let E«ls9 (In OOO's) Jkaormt of AdTcrtlilsg per »10<; of Total Set Salss Anount of' Plituro Account Flxtul^ Account per tlOO of Total Het Sales Graphic Actual 20 40 60 80 100 120 140 160 180 200 CmSer $40 $40 to teo teo to (ISO tl80 4 OTer 118,919,223 $738,774 Dndor $1 Jl to iz |2 to $3 $3 8: over 3,049,266 3,905,793 8,280,017 3,636,157 374,325 93,171 128,510 539,711 177,382 16,697 Under $1 $1 to $2 $2 to |3 $3 & over 159,936 113,058 28,261 73,070 e,645 5,592 2,050 3,410 tinder |1 tl to $2 t2 to tS $3 fc over 2,967,756 1,225,703 927,429 653,559 181,265 107,859 41,104 31, Ul S6,042 9,582 Total (Average] 6,603,210 175,562 Under Si $1 to iz >2 to t3 $5 k over 1,529,517 1,579,572 2,109,129 585,192 41,033 45,698 67,271 25,560 total (Ayerago) 9,975,942 458,876 Under il (1 to $2 t2 to (5 %Z & over 534,510 1,283,734 5,509,268 2,846,530 5,389 48,109 244,348 141,030 43.90 3.06 3.29 4.10 4.81 4.46 3.55 4.95 7.25 4.67 5.65 5.55 5.55 4.11 5,29 5.13 3.09 2.77 3.19 5.99 4.40 1.61 5.75 4.44* 4.95 100.0 78.5 64.4 105.1 123.3 114.4 90.5 126.9 185.9 119.7 95.1 es.9 S5.9 105.4 15S.6 80.5 79.2 71.0 81.8 102.5 112.8 41.5 96.2 115.8 126.9 Average v3.90 amount the averages diminish to $3.78, for the stores with sales of $80,000 to $180,000, and increase to $5.38 for those with sales of $180,000 and over. Within each group of stores, classified by size, and for the total, the average fixture investment in terms of sales increases as expendi- tures for advertising, similarly meas- ured, increase. The group of stores which had sales between $40,000 and $80,000 may be used to illustrate these increases. The average for the entire group is $4.36. For those 384 which expended the smallest amount for advertising in relation to sales, the average is $3.74, and for those which expended most, it is $G.18. That is, over the entire range, the average amounts increase. Within the range, an inverse condition ob- tains. Similar, but somewhat different amounts are found for the various groups of stores in each of the other years considered. These are shown in actual amounts and in graphic form in the tables. In Tables 281 to 284, inclusive, the average amounts expended for ad- vertising in stores classified by size and by fixture investment per $100 of total net sales are expressed as proportionate parts of $100 of sell- ing expense. Table 281 refers to the combined years and Tables 282 to 284, inclusive, to 1919, 1918, and 1914, respectively. For the combined years, the aver- age expenditure for advertising per $100 of selling expense is $20.85. Over the entire range of stores, the amounts increase as the stores in- crease in size, the average amount for those with sales of $40,000 to $80,000 being the lowest for any of the groups. When the stores are classi- fied by size and further by the amounts invested in fixtures, the amounts expended for advertising per $100 of selling expense increase with the fixture investment per $100 of total net sales. To this general rule, for some of the groups, there are clear exceptions and too much significance ought not to be assigned to the tendency indicated. Indeed, probably the most important func- tion which this and the corresponding tables for the individual years have, is to develop norms for the different groups of stores and not the tenden- cies for the amounts to increase or de- crease under different conditions of operation. The facts are given as they were determined largely be- cause, so far as is known, they rep- resent the only available data upon this topic, for stores in the retail field, C. — Summary. (1). The amounts of advertising expenditure per $100 of total net sales increase as the amounts invested in fixtures in relation to sales increase. This holds for all stores and for stores of a given size. It is true also for each of the years. (2). The proportions of selling expense attributable to ad- vertising increase as the amounts invested in fixtures per $100 of total net sales in- crease. This holds for all stores and for stores of a given size. 385 TABLE 279 TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OP FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL NET SALES, 1918 ■ AoouBt of Advertising per $100 of Total Bet Salea number of Stores Total Bet Salea Asumnt of FLxtur* Account Fixture Accoiint per $100 of Total Het Sales Clateifled Total Bot Bales (In OOO's) Amount C Per Cent, °'-^P'^« Actual 20 40 60 80 100 120 140 . Total (Average) 135 $13,360,145 $620,889 $4.65 100.0 Cndop i\ »1 to «2 $2 to t3 $3 * over 36 44 35 20 2,112,506 <5, 258, 720 4,278,153 3,710,766 87,312 n9,980 204,313 209,284 4.13 3.68 4.78 5.64 es.e 79.1 102. S 121.3 Total (Average) i Total (Average) 37 1,117,468 62,352 5.58 120.0 Dnder $1 »1 to $3 is to is $3 *! over 10 la 6 3 323,214 520,474 175,690 88,090 19,400 28,226 9,932 4,794 6.00 5.42 5. 65 4.89 129.0 116.5 121.5 105.2 tinder t40 Total (Average) 56 3,239,547 132,364 4.09 88.0 I ITnder |l ♦l to »2 $2 to tS #3 fc over 22 16 13 5 1,212,225 912,773 793,452 321,097 46,842 38,913 30,674 15,935 3.86 4.26 3.87 4.96 83.0 91.6 83.2 106.7 i*0 to ^80 : : Totp.l (Average ) 28 3,298,407 127,804 3.87 83.2 • Under $1 »1 to $2 ♦2 to «3 ♦3 i over 3 7 10 8 349,410 886,258 1,138,028 924, 7U 15,382 26,456 34,412 51,554 4.40 2.99 3.02 5.57 94.6 64.3 64. » 119.8 •ao to liso Total (Average) 14 5,704,723 298,369 5.23 112.5 • $180 h over Under |l »1 to $2 ♦2 to $3 $3 & over 1 3 6 4 227,657 939,215 2,170,983 2,366,868 5,688 26,385 129,295 137,001 2.50 2.81 5.96 5.79 S3.B 60.4 128.2 124. S '■ Averags ^.65 386 TABLE 280 TOTAL NET SALES, FIXTURE ACCOUNT, AND AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF ADVERTISING PER $100 OF TOTAL. NET SALES, 1914 ClasBlfloa Ajaonnt of Advert Is log per $100 of Total Met Sales Number of Stores Total Net Salea Ajnonnt of Fixture Account Plituro Account per $100 of Total Bet Sales N«t Salaa Anount Per Cent. Gr«PMc 1 ietual 3 20 40 60 80 100 120 140 160 180 200 Total (Average) ISS ♦8,297,530 $548,416 $6.61 100.0 1 Total ( Avar age > Under |1 (1 to tZ $8 to $3 $3 & over 24 45 32 54 879,996 2,213,146 2,037,002 3,167.386 37,372 106,807 130,053 275, 184 4.25 4.78 6.38 8.69 64.3 72.3 131.5 1 Total (Average ) 63 1,628,016 85,076 5.25 79.1 Valve Ho Under $1 ♦l to »2 »a to $3 |3 & over 16 23 13 12 436,148 580,983 342,457 268,428 18,951 29, 311 22,137 14,677 4.35 5.05 6.46 5.47 65.9 ■"^^ 97.7 : 1 Total (Average ) 45 2,464,877 137,597 6,58 84.4 1 |40 t9 (80 tinder $1 $1 to $2 ♦2 to »3 $3 i> over 7 17 U 10 359,502 931,265 607,290 666,820 16,632 52,177 28,243 40,545 4.63 6.60 4.65 7.15 70.0 84.7 70.3 108.2 ^^ Total (Average) 22 2,509.827 128,153 5.11 77.3 $00 to tlSO Dnder $1 $1 to $2 $2 to |3 (3 «• over 1 6 6 9 84,346 700,896 701,449 1,023,134 1,789 24,319 47,705 54,340 2.12 3.47 6.80 S.31 32,1 52. S 102.9 80.3 Total (Average) S 1,694,810 197,590 U.66 176.4 i tlSO fc OTar Uader $1 *1 to «2 te to |3 »S fc over 2 3 385,806 1,309,004 31,968 166,622 8.29 12.65 125.4 191.4 Avorago $0.01 387 TABLE 281 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE, FOR 135 IDENTICAL STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SMILES, 1919, 1918, AND 1914, COMBINED Amount of Pljcturo Account per $100 of Total Uat Sales Hujnber of Store- years Total Selling Szpense Total Advertising Advertising per $100 of Selling Expense ClasBirisd Total Set B&lea (In 000' e) Amount Per Cent. Graphic Actual ) 2p 4p 6p 80 100 1?0 140 Total (Average ) 405 14,428,098 $923,442 S20.85 _L r r . r p 100.0 1 Ocder $2 t2 tc ^ i4 to t6 t6 &; ever 72 131 86 116 832,922 985,648 798,319 1,811,209 147,345 206,442 182,392 387,263 17.69 20.94 22.85 21.33 84.8 ICO. 4 109.6 102.5 Total (Average) Total (AverRgp) 112 263,714 54,347 20.61 98.8 Under §2 ?2 to $4 44 to C5 t5 & ovsr 14 28 27 43 25,921 64,602 58,105 115,086 5,788 12,713 U,755 24,111 22.33 19.68 20.20 20.95 107.1 94.4 96.9 100.5 tTmler Uo ^T Tctsl (Averape) 153 806,561 145,442 18.04 86.5 $40 to teo Under 52 $2 to |4 ^4 to $6 $6 & ovsr 20 65 31 39 78,674 314,078 158,148 255,461 10,467 61,735 31,295 41,947 13.30 19.66 19.79 16.42 — i 63.8 94.3 94.9 78.8 Tctcil (Average) 98 1,255,879 253,444 20.21 96.9 Under f2 €2 ts ti ^ to $5 $S & over 27 33 19 19 507,174 405,623 274,227 266,855 56,997 77,049 61,961 57,437 18.56 19.00 22.59 21.52 89,0 91.1 108.3 105.2 tso to tieo 1 Total (Average) 42 2,104,144 470,209 22.56 107.2 Older iz i2 to C4 $4 to Se t6 t over 11 7 9 15 421,153 201,345 307,839 1,173,807 74,093 54,947 77,401 263,766 17.59 27.29 25.14 22.47 1 84.4 130.9 120.6 107.8 flBO i over 1 ^T" : Average §20.85 388 TABLE 282 TOTAL SELLING EXPENSE, ADVERTISING, AND AMOUNT OF ADVERTISING PER $100 OF SELLING EXPENSE, FOR 135 STORES CLASSIFIED BY SIZE AND BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919 Classified Amotmt of Fixture Account per $100 of Total Hot Sales number of Stores Total Selling Eixpenao Total Advertising Advertising per ftlOO of Selling Expensa ToteO. Bet Sales (la ooo's) Amormt Per Cent. Graphic 1 Actual 29 49 6

.6_ 103.5 92.2 i Total ( ATsrago ) 44 1.50 115,4 12.41 102.9 tiao k oTsr 1919 1918 1914 £5 14 6 1.39 1.55 1.96 106,9 119,2 150.0 12.16 12.27 13.98 101.0 101.7 115.9 ; Average $1.50 Average $12.06 corresponding expense is $1.65. In terms of selling expense the average amount for the stores in the small cities is $9.99, and for those in the large cities, $13.60, From year to year, for the stores in both city- groups, the amounts per $100 of total net sales generally decrease. In terms of selling expense, for the stores in the small cities, the amounts increased from year to year; but for those in the large cities they increased be- tween 1914 and 1918, and decreased between 1918 and 1919. £>. — Yearly Amounts of Other Selling Expense per $100 of Total Net Sales and per $100 of Total Sell- ing Expense, for Stores Classi- fied hy Size and hy Size of City* 1919, 1918, and 1914, Combined. In Table 288 the records of 154 identical stores are combined for the * Population figures are for 1920. 394 TABLE 287 AMOUNT OF OTHER SELLING EXPENSE PER $100 OF TOTAL NET SALES AND PER $100 OF TOTAL SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY, 1919, 1918, AND 1914 Years Number of Store- years Other Soiling Exponae per $100 of Total Net Salee Other Selling Ej^penae por JlOO of Total Soiling Expanse size of City (la OOO'a) Amount ( Per Cent. Amount Per Cent. Oraphlo | Actual ) 20 40 60 60 100 120 140 Oraphlo Actual 3 20 4<) 60 80 100 120 Total (Avsrage) 4S2 U.SO 100.0 $12.06 100.0 i Total 1919 1918 1914 154 154 154 1.24 1.55 1.35 95.4 lOS.B 103.8 11.94 12.39 11.81 £2.0 102.7 97.9 (A7erag«) J 1 Total (Average) MS 0.95 71.5 9.99 82.8 i 1919 1918 1914 115 US lis 0.81 0.96 0.S6 70.0 73.8 73.8 10.28 10.08 9.42 84.7 83.6 78.1 40 Total (Average ) 117 1.65 126.0 13.60 112.8 i 191» 1918 1914 59 59 S» 1.55 1.7S 1.79 119.2 133.1 137.7 13.14 14.09 13.83 109.0 116.8 U4.7 over : : ■ Average $1.30 Average $12.06 years 1919, 1918, and 1914. In this table the basis of classification is the location of the stores and their size. For the 462 store-years, for the stores irrespective of location, the average amount of miscellaneous ex- pense per $100 of total net sales is $1.30. As the stores increase in size, the expenditures increase, the smallest average amount being $0.88, for the stores with sales under $40,000, and the largest, $1.50 for those with sales of $180,000 and over. Similar increases hold also for stores of increasing size when classified by location. Just how rapid these in- creases are, may be observed by con- sulting the table. Table 288 also shows the amounts which other selling expense consti- tutes of each $100 of total selling ex- pense. For the combined stores irre- spective of size, the average is $12.06. The smallest amount characterizes the stores with smallest sales and the largest amount, those with largest sales. Over the entire range of sizes, the average amounts vary from $10.45 to $12.41. For the stores in the small and in the large cities, the average amounts on the whole seem to de- crease as the size of the stores in- creases, if the eight stores in the large cities having the smallest sales are omitted from consideration. The aver- age for this group is clearly an ex- ception to the rule and suggests that the data are probably incomplete. 395 TABLE 288 AMOUNT OF OTHER SELLING EXPENSE PER $100 OF TOTAL NET SALES AND PER $100 OF TOTAL SELLING EXPENSE, FOR 154 IDENTICAL STORES CLASSIFIED BY SIZE OF CITY AND STORE, 1919, 1918, AND 1914, COMBINED Total ll«t Salsa (la OOO'e) Jimber or Store- year ether SoniTiB Expenae per $100 of Total 5et Sales Other Selling Expense per $100 of Total Selling Ejcpenae SI I* of (In ooo'i) Aaount Far Cent. Amotrnt Per Cent. Graphlo j ActueJl P 20 40 60 80 100 1^ 140 160 Orayhlc Actual p 20 40 60 80 100 1?0 140 1^0 Tctal (Av!r«g«) 48S n.30 ^^^1 100.0 $12-.06 100.0 " Itadsr J40 *40 to $30 iao to tiso $130 i over 128 172 117 44 o.ea 1.11 l.JO 1.50 67.7 85.4 100.0 115.4 icr.4s 11.98 11.96 12.41 86.7 (Averftg* ) - 545 a. 93 71.5 9.99 82.8 (A7!n.s») Under (40 »tO to »S0 tao to tiso $180 k over 121 ise 77 9 0.92 0.89 1.02 0.95 70.3 66.2 78. S 73.1 11.09 e.84 9.98 9.13 M 75,7 Totol (Avoragfl) 117 1.6S 126.9 13.60 112.8 ». — «0 ma Dndsr UO »40 to teo tec to tiBo llBO & over e 34 40 » 0.43 1.58 2.05 X.S7 33.1 121.5 157.7 12a.8 4.21 17.86 14.91 12.79 34.9 125.6 106.1 ATersgv $1.30 Avereieg $12<(M E. — Summary. (1). The amounts of other selling expense per $100 of total net sales, for stores irrespective of size, remained constant be- tween 1914 and 1918, and decreased between 1918 and 1919. For stores of a given size, the amounts decreased from year to year. 2). The proportion of total sell- ing expense attributable to other selling expense, for stores irrespective of size, in- creased between 1914 and 1918, and decreased between 1918 and 1919. For stores of a given size, the direction of change was not uniform. (3). The amounts of other selling expense per $100 of total net sales increase with the size of the store. This holds for each of the years and for stores located either in small or in large cities. (4). The proportion of selling ex- pense attributable to other selling expense, for stores irrespective of location, in- creases as stores increase in size. When the stores are classified by the size of the city in which located, the. 396 amounts tend to decrease as the size of the store increases. (5). For stores of a given size, the amounts of otlicr expense per $100 of total net sales are higher in the large cities than in the small cities. (6). For stores of a given size, the proportions of total selling expense, classified as other selling expense, are higher in large, than in small cities. 2. YEARLY AMOUNTS OF OTHER SELL- ING EXPENSE PER $100 OF TOTAL NET SALES AND PER $100 OF TOTAL SELLING EXPENSE, FOR STORES CLASSIFIED BY AMOUNTS OF INVEN- TORY PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914. In Table 289 the records of 149 stores are studied in order to deter- mine for the combined years and for each of the years 1919, 1918, and 1914, the average amount of the mis- cellaneous selling expense per $100 of total net sales and per $100 of sell- ing expense when the stores are clas- sified by the amount of their inven- tory in relation to sales. This section of tlie discussion corresponds to sim- ilar analyses in the parts of the vol- ume relating to total selling expense, to wages and salaries, and to adver- tising. For this group of stores the aver- age amount of miscellaneous selling expense per $100 of total net sales is $1.28. For 1914 the amount was $1.33; for 1918, $1.33, and for 1919, $1.24. That is, the amounts are es- sentially identical with those for 154 stores shown in Table 285. Within each year and for the combined years, these expenses, when expressed in terms of sales, decrease as inventories in relation to sales increase. The average amounts in the combined years may be used to illustrate this tendency. For the stores having the smallest inventory — less than $20 per $100 of total net sales — the average amount is $1.38. A similar amount characterizes those stores which had inventories between $20 and $40 in terms of sales. The smallest amount, applying to those which had the largest inventories, is $0.98. De- creases similar to these hold for each of the different years. There are some exceptions in the direction of change, but these are relatively few and unimportant. Table 289 also shows the amounts of other selling expense per $100 of total selling expense. The average for the stores in the combined years is $11.85. In 1914, it was $11.55; in 1918, $12.16; and in 1919, $11.76. When the stores are classified by the amounts of inventory per $100 of total net sales, the expenditures for miscellaneous selling purposes tend, on the whole, to decrease as the in- ventories in relation to sales increase. For the combined years, the decreases extend from $16.38 to $10.47. Sim- ilar decreases, with certain excep- tions, are found for the stores in each of the different years. It is unneces- sary to review these in detail, inas- much as the table is self-explanatory and the graphic part of it makes it 397 easy to observe these relationships from group to group. 3. — YEARLY AMOUNTS OF OTHER SELL- ING EXPENSE PER $100 OF TOTAL NET SALES AND PER $100 OF TOTAL SELLING EXPENSE, FOR STORES CLAS- SIFIED BY AMOUNTS OF SAIiES PER FULL-TIME SALES-PERSON, 1919, 1918, AND 1914. In Table 290 the records of 146 stores are presented in order to de- termine the amount of other selling expense expressed in terms of sales and total selling expense for stores classified by the amount sold per full- time sales-person for the years 1919, 1918, and 1914, individually and combined. The averages for the entire group for the combined and individ- ual years closely correspond to those shown in Table 289, and require no particular explanation. "Within each year and the combined years there seems to be no unmistakable tendency for the amounts to increase or to de- TABLE 289 AMOUNT OP OTHER SELLING EXPENSE PER $100 OF TOTAL NET SALES AND PER $100 OF TOTAL SELLING EXPENSE, FOR 149 IDENTICAL STORES CLASSIFIED BY AMOUNT OF INVENTORY PER $100 OP TOTAL NET SALES, 1919, 1918, AND 1914 Ancnmt cf Inventory per llOO of Total Ket galea n^Bber of Etore- years Other Selling E^anse per $100 of Total Met Balea Other Selling Expense per $100 of Total Selling Expense Years AnonDt Fer Cent. Anmrnt Per Cent. GrspMo 20 4p 60 60 lOp 12p 140 Aotnaa Orapblo ? 2p 49 6p 80 lOp 12,0 14,0 1^0 ISO Actual Total (Avorape) 447 $1.2S lOO.O $ii';8S 100.0 Under (40 UO to $30 teo to (IfiO Jl60 1 o»er 14 168 177 ee i.se 1.S8 1.16 0.98 107.8 107.8 90.6 76.6 i6.4e 11.8S 11.60 10.47 1J8.2 100.0 97.9 88.4 Total I (Average ) [ """^ : : »)tal (Average) 149 l.M 96.9 •U.78 99.2 |40 to too (80 to tlSO $180 & over 1 8S 61 8 LIB 1.26 l.ie •.69 lOT'.e 98.* 90.6 53.9 15.71 u.4e 12.14 9.09 132.6 96.9 102.4 76.7 1919 ^^ ; Total (Average) 149 1.S9 10S.9 ie.16 102.6 Under |40 $40 to $S0 $60 to $1S0 $180 t over S 46 CO 40 1.22 1.47 1.50 0.96 95. S ■ 114.8 101.6 76.0 20.06 11.73 13.28 10.33 169.3 99.0 112.1 87.2 isie ; Total (Average) 149 1.53 10S.9 11.65 97.5 Under $40 $40 to $60 $80 to $180 tleo k over « 39 66 40 1.64 r.68 0.99 1.09 128.1 ISl'.S 7T.S BS.2 1S.04 13.26 9.08 126.9 111.9 76.4 92.S 18U : 10.94 : A7era£e $1.£8 Averftgo $11«85 398 crease with the sales per full-time sales-person. A relationship between the amounts of such expenses and the activity of the salesmen can hardly be expected. The data are presented in this form largely to complete the analysis and in the hope that they will be of service to merchants in comparing their expenses with the amounts for the different groups of stores. Table 290 also shows the amounts of other selling expense as proportion- ate parts of selling expense. For the combined years, there seems to be a general tendency for this expense to increase as the amounts sold per full- time sales-person increase. In the TABLE 290 AMOUNT OF OTHER SELLING EXPENSE PER $100 OF TOTAL NET SALES AND PER $100 OF TOTAL SELLING EXPENSE, FOR 146 IDENTICAL STORES CLASSIFIED BY AMOUNTS OF SALES PER FULL-TIME SALES- PERSON, 1919, 1918. AND 1914 Amount of Sales per Pull-time Sales-person (In OOO'e) Nianber or Other SslUng Sxponso per $100 or Total Bet Saloa Other Selling Expense per ilOO of Total Selling Expense YeoM Per Cent. r 1 Per Cent. Storo- yeare Amount Oraphlo 1 Victual 20 40 60 80 iqo 1^0 140 160 p 20 40 60 80 1()0 120 140 Total (Areraga) 438 $1.28 100.0 $11.94 100.0 Under $12 tl2 to $16 tl6 to $24 $24 to $32 $32 k OTer 151 107 118 39 23 1.01 1.39 1.2« 1.53 1.31 78.9 108.6 98.4 119. S 102. S 6.99 12.61 11.25 15.22 15.71 7S.3 1C6.5 34.2 127.5 131.6 Total (A.-orage) Total (ATorage ) 14e 1.22 9S.3 11.80 98.8 Dnder $12 $12 to $15 $16 to $24 *24 to $52 $32 & over U 30 61 21 19 1.10 0.87 1.09 1.S8 1.39 es.g 70.0 65.2 123. 4 108.6 12.01 8.60 9.?5 15.85 16.02 100.6 72.0 80.0 132.7 154.2 1919 Total (Average) 146 1.34 104.7 12.25 102.6 • Vnder $12 $12 to $16 $16 to $24 $24 to $32 $32 «c over 50 42 37 14 S 1.00 1.3S 1.49 1.41 0.42 78.1 105. S 116.4 110.2 32.8 9,78 11.98 13. C8 13.93 7.60 81.9 100. J 109.5 116.7 63.7 1918 """""^ ■ — Total (ATerags) 146 l.JS 103.9 11.77 : 93.6 Ondop $12 $12 to $16 $16 to $24 $24 to $32 $32 & over 86 33 20 4 1 0.99 1.85 1.51 0.93 0.74 77.3 144.5 119.C 72.7 57.8 8.24 16.65 15.35 8.16 25.62 • ^^^^ 1^0.6 60.3 — . erase $1.28 Average 011.94 'ruH leneth not shoint 399 individual years, however, the aver- ages become erratic in several in- stances, suggesting that a group of miscellaneous expenses is being studied, and that there are elements which control them other than vary- ing sales of salesmen. 4. — YEARLY AMOUNTS OF OTHER SELL- ING EXPENSE PER $100 OF TOTAL NET SALES AND PER $100 OF TOTAL SELLING EXPENSE, FOR STORES CLASSIFIED BY AMOUNTS INVESTED IN FIXTURES PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914. In Table 291 the records of 135 stores are presented for the years 1919, 1918, and 1914, individually and combined. The stores are classi- fied according to the amounts in- vested in fixtures per $100 of total net sales. For each group of stores classified in this form, the amounts TABLE 291 AMOUNT OF OTHER SELLING EXPENSE PER $100 OF TOTAL NET SALES AND PER $100 OF TOTAL SELLING EXPENSE, FOR 135 IDENTICAL STORES CLASSIFIED BY AMOUNT OF FIXTURE ACCOUNT PER $100 OF TOTAL NET SALES, 1919, 1918, AND 1914 /^ount 'or PUtiu-e icccunt per $100 cf Total Net Bales 1 ■ Other Selllzig Expense per (100 of Total Het Sales Other SelUnj Expense per tlOO of Total Soiling Expense Hirzber of Stci 9- yeara Ano^ait Per Cent. /-30\31t Per Cent. araphlo 1 Actual ep 40 6p ep lOp 12,0 14p OrapMo j Aet,^ 3 2p 4p Sp 8p 100 12p 14^0 TotEl (Average) 405 ii.29 lOOf.O ♦11.87 ! 100.0 ; 1 Doder t2 $2 to »« U to t6 $6 8: over 72 HI B6 116 1.11 1.21 i.se 1.59 86.0 93.8 117.8 103.1 10.7S 12.83 14.95 10.51 Total 108.1 125.9 88. 5 (Average) ^^'""" (Average) ISS 1.S4 99.1 11.74 98.9 ^^^^^^1 !• Dader tZ ♦Z te ti U to $6 t6 St over 38 61 2S 23 1.16 1.14 1.39 1.55 I 89.1 88.4 103.1 104.7 11.26 13.02 12.90 10.78 94.9 108.7 108.7 90.8 1919 • Total (Average) 135 1.55 104.7 1?.1« lOfi.7 Under tZ tz to U it to (6 J6 >c over 20 45 54 36 l.OS 1.42 1.58 1-.28 79.8 110.1 122.5 99.2 7.14 14.24 16.68 10. IS 77.0 120.0 139.7 85.8 1918 ' i Total (ATer^6e) 135 1.36 104.7 U.6S 98.0 1 tmder $2 tz to H %* t« »8 ^ k over 14 35 29 67 1.07 0.97 1.77 1.57 82.9 78.2 1S7.2 106.2 1^.74 9.55 16.08 10.61 107.5 80.5 135.5 88.5 1914 : : _j Averas* ll.SS Averags {11.87 400 of other selling expense, measured in terms of sales and total selling ex- pense, have been computed. For the combined years, the average amount in terms of sales is $1.29. The amounts for the individual years closely correspond to those shown in Tables 289 and 290. In the combined years, there seems to be a general tendency for the amounts to increase as the fixture in- vestments per $100 of total net sales increase. Moreover, this condition tends to obtain, but with less cer- tainty, in each of the years. For the stores which had the least investment in fixtures per $100 of total net sales, the average miscellaneous expendi- ture is $1.11, while, for those which had the largest investment in fixtures per $100 of total net sales, the aver- age is $1.33. From year to year it appears that these amounts are essen- tially uniform. Table 291 also shows the amounts of other selling expense expressed as proportionate parts of total selling expense. For the combined years, $11.87 was expended for this purpose out of each $100 of selling expense. As the amounts invested in fixtures per $100 of total net sales increase, there seems to be no definite tendency for these amounts to increase or to decrease. In some of the groups, the average expenditures for this purpose are unduly low. In others, they are abnormally high, again suggesting the fact that the expenses which are combined are of a miscellaneous type. By expressing them in terms of sell- ing expense there seems to be no ten- dency for them to be reduced to a uniform or standard amount. 401 VII. RATIOS OF OPERATION FOR STORES CLASSIFIED BY RELA- TIVE RATES OF NET PROFIT PER $100 OF TOTAL NET SALES, 1919 In view of the fact that the differ- ent elements of expense attributable to selling have been determined for stores classified by years, by size, and by location, and that these expenses have been expressed in terms of sales and of total operating expense with simple and complex units, it was thought to be of interest to merchants and to others to continue the classi- fication one step further. Accord- ingly, for 1919, 251 stores are clas- sified by their rates of profit per $100 of total net sales. The single store which had the highest rate of profit in relation to sales is taken as 100 per cent., and from this amount the re- spective rates of profits for the other stores are calculated in the form of percentages. In Tables 292 and 293 and in Chart VII, the different ratios of store operation are shown for stores having classified rates of profit ex- pressed in this form. Table 292 shows, for the 251 stores classified by size and by relative rates of profit per $100 of total net sales, the cost of merchandise sold, the gross trading profit, the total operating ex- pense, and the selling expense, all in terms of sales and expressed on an index or relative basis. The amounts for the stores in each classified group which had rates of profit of 60 per cent, or more of the rate for the store having the highest profit in terms of sales, are taken as 100 per cent. The table shows that as the relative rates of profit increase, the costs of mer- chandise sold per $100 of total net sales decrease ; the gross margins per $100 of total net sales increase; the total expenses per $100 of total net sales decrease; and the selling ex- penses per $100 of total net sales de- crease. This condition holds for each group of stores when classified by size. If the entire number of stores is taken to illustrate these facts, it is found that the cost of merchandise sold, for the stores which had rates of profit less than 20 per cent, of the one which had the highest rate of profit, is 39.3 per cent, higher than the cost of merchandise sold for those which had the highest profit in rela- tion to sales. The gross margin per $100 of total net sales is 41.1 per cent, lower; the total expense per $100 of total net sales is 51.7 per cent, higher ; and the selling expense per $100 of total net sales, 30.8 per cent, higher than the corresponding amounts for the store with the highest profit. Similar relationships hold also for the stores of different size. In Table 292 the ratios of operation for stores of a given size-group are reduced to a common or index basis with the best group condition repre- senting 100 per cent. In Table 293, on the other hand, the ratios of opera- tion are reduced to an index basis, each profit condition, when based upon the best, being taken as 100 per cent. To illustrate these differences 402 TABLE 292 RATIOS OF OPERATION FOR STORES CLASSIFIED BY SIZE AND BY RELATIVE RATES OF NET PROFIT PER $100 OF TOTAL NET SALES, 1919 tB4u lualnn >f H.J .Front PV »J0O rf Total S«t aiklM ■ulam 100 or ttona Ifwlu VWIMTO of H«tt«« of 0p«r4tlfl« Cost of Uorcbjuidtio Sold por Oroia lUrtlm por tloo •lOO of Totftl lot a^M or Tottl Vt .iaioo TotAl OpontlBA ezposM (Mr 1 100 of Totol Rot Soloo tolllai KiMuo Mr tlOO 1 OropJUo 1 oropuia 4«t>i«l 1 Ictvual 1 Or.pU< Aotul 1 D 20 to SO 90 100 120 140 >o 40 W W eo b orw 3T ICS U lU 100 5 80.2 117.S 125.5 104.3 100.0 Av«r«8* M 112 01.7 .1.2 M.2 U 20 >0 ta 40 •0 > o^r 4 e 9 117 100 ICO e 71.5 114.1 U.S 7«.4 73J 100.0 JMU- Ho — 4v*r*L«« « lU 2 75.1 115.1 U3.3 to M to U 40 40 to 60 SO ft U2 123 100 5 57.1 49.1 65.2 153.7 117.5 lls.o U4.2 e4.4 Its u leo ^^^ iv«roga 8T 159 131.2 us.s CO to to to 40 eo h OTOr 24 IM ISO e 5: 130.0 153.5 •30 U lUO III *T4n«« 40 160 4 56.9 lis. 3 oo.e to so to t* 40 40 to SO 10 20 17S " ' 141.4 121.4 i:': •ISO i ot«r for stores of different size, the group having net profits per $100 of sales of less than 20 per cent, of the best con- dition may be selected. The cost of merchandise sold for the stores with sales of under $40,000 is 100.7 per cent, of the average. The correspond- ing percentages for the other groups, in order of size, are 105.4, 105.1, and 96.4, respectively. The gross mar- gins for the same stores bear the fol- lowing relations to the total in order of size: 98.2 per cent., 86.7 per cent., 87.5 per cent., and 109.0 per cent. The corresponding percentages for total expense per $100 of total net sales are, respectively, 91.1, 84.1, 82.4, and 112.4, and for selling expense per $100 of total net sales, 48.6, 74.0, 97.8, and 108.3. That is, as the stores increase in size, the costs of merchan- dise sold first rise and then faU; gross margins fall and then rise ; total expenses fall and then rise; and sell- ing expenses consistently rise. Sim- ilar tendencies hold for the stores having profits higher than those of the group selected for illustration. Chart VII is drawn for the pur- pose of showing relative ratios of operation for the 251 stores classified on an index number basis according 403 TABLE 293 RATIOS OP OPERATION FOR STORES CLASSIFIED BY RELATIVE RATES OF NET PROFIT* PER $100 OF TOTAL NET SALES, AND BY SIZE, 1919 ladM humDer* i Vaa^r Mo to tW to llBO |eo to 1180 ATorM* Jndor |40 |40 to teo |W to llBO tlW » o«_.{_ 1 160 140 ><: Total Selling Expense C^ >.- **--^ :5*-eC" v_ 1 1 ■•'''' '"'*'«^ liO • ^t>. »v.»-..^ ^>. lUO 80 60 40 20 ,."' ^ _— — - ^^-' " ^-'''' t 10 10 t( 5 20 20 t 30 30 t( 3 40 40 t c 50 60 to 60 60 & ovpr Index Munbers pf Net Profits per $10C of Tottl Uet SbIps, ]919 405 VIII. CONCLUSION It is difficult to itemize the various conclusions to which the discussion of selling expense in clothing stores has led. Certain of the more im- portant of these conclusions, together with the amounts of expenditure for the different items of expense, are given in the Summary, and there is no necessity" of repeating them here. It may be worth-while, however, to sketch in bold outline the relation be- tween the expenses, and to indicate briefly the methods by which the analysis shows that merchants may reduce their expenses of operation. The total selling expense, as de- fined, constitutes approximately 50 per cent, of the total operating ex- pense and 10 per cent, of sales. When the amounts of selling expense are measured in terms of sales, they in- crease with the size of the store, as do also the components of the total — wages and salaries, advertising, and miscellaneous expense. The amounts of wages and salaries per $100 of selling expense decrease, while the amounts of advertising and of other expense increase with the size of the store. From year to year, selling ex- pense in terms of sales decreased, while in terms of total expense it in- creased. As inventories per $100 of total net sales increase, the amounts of sell- ing expense per $100 of total expense decrease and per $100 of total net sales increase. As the amounts sold per full-time sales-person increase, selling expense, measured in terms of total expense and in terms of sales decreases. As the fixture investments in rela- tion to sales increase, the amounts of selling expense per $100 of total ex- pense and per $100 of total net sales increase. "When the amounts of sell- ing expense are measured in terms of sales, for stores classified according to the amounts invested in fixtures per 100 square feet of floor space, they increase as these investments in- crease. As the amounts of advertising ex- penditure per $100 of total net sales increase, the amounts of selling ex- pense per $100 of total expense and per $100 of total net sales likewise increase. As the amounts of profits per $100 of total net sales increase, the amounts of selling expense and of total ex- pense is relation to sales decrease. At various places throughout the volume, attention is called to the con- ditions under which the amounts of selling expense may be reduced. In brief, they are as follows: By in- creasing advertising in relation to sales, by decreasing the inventories in. relation to sales, by increasing the rapidity of stock turnover, by in- creasing the amounts sold per full- time sales-person and per square foot of floor space, by paying salesmen on a commission basis, and by reducing the amounts invested in fixtures in re- lation to sales. The amounts of the reductions possible through these dif- ferent means are shown in tabular 406 and graphic form at various places throughout the volume. In conclusion, the Bureau wishes to explain its attitude in undertaking the study. Every care has been used to reduce to a comparable basis the various conditions of store operation and to express the amounts of ex- penses in terms which take account of them. It is not maintained that the study establishes the ideal conditions under which stores should operate. It does, however, measure those pre- vailing at the time the study was undertaken and sets up in concrete and measurable form, expenses and their tendencies to change under dif- ferent conditions of store operation. That is, standards of expense dis- tribution and expense tendencies have been determined. It is hoped that this study will have a value beyond that associated solely with the distribution of cloth- ing. The principles established, as well as the amounts of the different expenses would seem to have an in- terest to manufacturers of clothing, to bankers, to advertising agencies, and to others who co-operate in the field of distribution. The funda- mental principles governing sales and selling expense are not restricted to one line of business, nor are they solely related to one phase of retail distribution. It is believed that the study is sufficiently broad in its scope and comprehensive in its method to develop basic facts and relationships which will have general and per- manent value. 407 IX. INDEX. (The citations are first, to table or chart numbers, and second, to pages.) Accounts, fixture, see Fixture account. Advertising, as used, defined, p. 306. expense for, see Expense, Advertising, reduction of selling expense by, pp. 179, 185, 304. stores classified by amounts of, selling expense, amounts of, see Expense, Selling, wages and salaries, amounts of, see Expense, Wages and salaries, summary for, see Summary. Average inventory, see Inventory. Average stock, defined, p. 66. relation of, to selling expense, 27, p. 65. Bonus paid to regular salesmen, for stores classified by use or non-use of, amounts of selling expense, see Expense, Selling, wages and salaries, see Expense, Wages and salaries, conclusions regarding use of in relation to selling expense, pp. 126, 127 ; in relation to wages and salaries, pp. 261, 262. Capital turnover, defined, p. 66. Commission to regular salesmen, for stores classified by use or non-use of, amounts of selling expense, see Expense, Selling, wages and salaries, see Expense, Wages and salaries, conclusions regarding use of in relation to selling expense, pp. 120, 122; in relation to wages and salaries, pp. 260, 262. Compensation of regular salesmen, methods of, see Bonus, and Commission. Control of expenses, see Summary. Cost of merchandise sold, defined, pp. 4, 75. index numbers of, for stores classified by relative rates of net profit, 292, and Chart VII, pp. 403-405. Expense, Advertising, amounts of, per $100 of sales, in relation to fixture investments, L, p. 27; 270, p. 375; 273-276, pp. 378-382. inventories, F, p. 17; 229, p. 323; 232-236, pp. 327-331. location, B, p. 7; 217, 219, pp. 311, 313; 221-224, pp. 315-318. rent, 269, p. 373. sales per full-time sales-person, H, p. 20; 250, p. 349; 252, 253, pp. 353, 354; 255-258, pp. 357-360; 265, 266, pp. 368, 369. selling expense, 108, p. 173; 117, p. 183. size of store. A, B, C, pp. 5, 7, 8; 215, p. 309; 221-224, pp. 315-318. stock, carried, see Inventories, turnover, stock, 247, 248, pp. 345, 346. years. A, p. 5; 212, 213, pp. 306, 307; 215, 217, 219, pp. 309, 311, 313. 409 Expense, Advertising, amounts of, per $100 of selling expense, in relation to fixture investments, L, p. 27; 272, p. 377; 281-284, pp. 388-391. inventories, G, p. 19; 231, p. 325; 241-244, pp. 337-341; 246, p. 343. location of store, Chart VI, p. 15; 218, 220, pp. 312, 314; 225-228, pp. 319-322. rent, 269, p. 373. sales per full-time sales-person, J, p. 23; 251, p. 351; 259-264, pp. 361-366; 267, 268, pp. 370, 371. size of store, Charts V, VI, pp. 14, 15; E, p. 16; 216, p. 310; 225-228, pp. 319-322. years. Chart IV, p. 13; 214, 216, pp. 308, 310; 218, 220, pp. 312, 314. per store, 213, 214, pp. 307, 308; 217, 218, pp. 311, 312. defined, p. 306. reduction of expenses, through increased advertising, pp. 179, 185, 304. relation of, to fixture investments, see Fixture account, inventories, see Inventory, selling expense, see Expense, Selling, stock turnover, see Turnover, stock, wages and salaries, see Expense, Wages and salaries, summary for, see Summary. Miscellaneous or other selling, amounts of, per $100 of sales, in relation to fixture investments, 291, p. 400. inventories, 289, p. 398. location of store, B, p. 7; 287, 288, pp. 395, 396. sales per full-time sales-person, 290, p. 399. size of store, A, B, C, pp. 5, 7, 8; 286, 288, pp. 394, 396. years. A, p. 5; 285-287 pp. 392-395. per $100 of total selling expense, in relation to fixture investments, 291, p. 400. inventories, 289, p. 398. location of store. Chart VI, p. 15; 287, 288, pp. 395, 396. sales per full-time sales-person, 290, p. 399. size of store. Charts V and VI, pp. 14, 15; E, p. 16; 286, 288, pp. 394, 396. years. Chart IV, p. 13; 285-287, pp. 392-395. defined, p. 392. summary for, see Summary, Salaries, see Wages and salaries. Selling, total, , amounts of, per $100 of advertising, in relation to advertising, 107, p. 171. per $100 of sales, in relation to advertising, N, p. 31; 107, p. 171; 109-114, pp. 174-180; 116, p. 182. 410 Expense, Selling, total, amounts of, per $100 of sales, in relation to average stock carried, 27, p. 65. bonus, use or non-use of, 71, 72, pp. 123, 124. commissions, use or non-use of, 67, 68, pp. 119, 120. fixture investments, L, M, pp. 27, 29; 84, 87, pp. 142, 146; 89-92, pp. 148-151; 101, 102, pp. 160, 162; 104, 105, pp. 167, 168. inventories, F, p. 17; 19, p. 55; 22-26, pp. 59-64; 39, 42, pp. 81, 84; 101, p. 160. location of store, B, p. 7; 6, 8, pp. 39, 41; 10-14, pp. 43-47. net profit, 292, 293, pp. 403, 404; Chart VII, p. 405. rent, K, p. 25; 77, p. 131; 80, p. 135; 82, 83, pp. 138, 140. sales per full-time salesperson, H, p. 20; 43 p. 87 ; 46, 47, pp. 91, 93; 49-52, pp. 96-100; 63, 64, pp. 113, 115. size of store, A, B, C, pp. 5, 7, 8; 4, p. 37; 10-14, pp. 43-47. stock carried, see Inventory, also Stock turnover, turnover, stock, 36, 37, pp. 77, 78; 102, p. 162. years. A, p. 5; 1, 2, p. 35; 4, 6, 8, pp. 37, 39, 41. per 100 sq. ft. of floor space in relation to fixture investments, 103, p. 165. per store, 2, 3, pp. 35, 36; 6, 7, pp. 39, 40; 103, p. 165. per $100 of total expense, in relation to advertising, N, p. 31; 115, 118, pp. 181, 184. bonus, use or non-use of, 73, 74, pp. 125, 126. commissions, use or non-use of, 69, 70, pp, 121, 122. fixture investments, L, p. 27; 86, p. 144; 97-100, pp. 156-159. inventories, G, p. 19; 21, p. 57; 32-35, pp. 71-76. per $100 of total expense, in relation to location of store. Chart III, p. 11; 7, 9, pp. 40, 42; 15-18, pp. 48-51. sales per full-time sales-person, I, p. 22; 45, p. 90; 57-62, pp. 106- 112; 65, 66, pp. 116, 117. size of store. Charts II, III, pp. 10, 11; D, p. 12; 5, p. 38; 15-18, pp. 48-51. stock turnover, 38, p. 80. years. Chart I, p. 9; 3, 5, pp. 36, 38; 7, 9, pp. 40, 42. defined, p. 34. reduction of, methods of, see Reduction of expenses, and Summary, relation of, to advertising, see Expense, Advertising, fixture investments, see Fixture account, inventories, see Inventory. other selling expense, see Expense, Other selling, sales per full-time sales-person, see Sales, wages and salaries, see Expense, Wages and salaries, summary for, see Summary. Total operating, amounts per $100 of sales, in relation to rent, 83, p. 140. 411 Expense, Total operating, index numbers of, in relation to net profit, 292, 293, pp. 403, 404; Chart VII, p. 405. relation of, to selling expense, see Expense, Selling. Wages and salaries, amounts of, per $100 of sales, in relation to advertising, N, p. 31; 206, 208, 210, pp. 297, 299, 302. bonus, use or non-use of, 180, 181, pp. 261, 262. commissions, use or non-use of, 176, 177, pp. 257, 258. fixture investments, L, M, pp. 27, 29; 189, 191, pp. 273, 276; 193-196, pp. 278-281; 202, 203, pp. 290, 292. inventories, F, p. 17; 136, p. 206; 139-144, pp. 209-215; 202, p. 290. location of store, B, p. 7; 124, 126, pp. 192, 194; 128-131, pp. 196-199. rent, K, p. 25; 184, 186, 188, pp. 266, 268, 270. sales per full-time sales-person, H, p. 20; 154, p. 228; 158, 159, pp. 234, 236; 162-165, pp. 240-243; 172, 173, pp. 252, 253. size of store. A, B, C, pp. 5, 7, 8; 122, p. 190; 128-131, pp. 196-199. stock carried, see Inventories, turnover, stock, 210, p. 302. years. A, p. 5; 119, 120, pp. 187, 188; 122, 124, 126, pp. 190, 192, 194. per $100 of selling expense, in relation to advertising, N, p. 31; 207, 209, pp. 298, 300; 211, p. 303. bonus, use or non-use of, 182, 183, pp. 263, 264. commissions, use or non-use of, 178, 179, pp. 259, 260. fixture investments, L, M, pp. 27, 29; 190, p. 274; 197-201, pp. 283- 289; 205, p. 294. inventories, G, p. 19; 138, p. 208; 149-153, pp. 220-225. location of store, Chart VI, p. 15; 125, 127, pp. 193, 195; 132-135, pp. 200-203. rent, K, p. 25; 185, 187, 188, pp. 267, 269, 270. sales per full-time sales-person, J, p. 23; 157, p. 232; 166-171, pp. 245-251; 174, 175, pp. 254, 255. size of store. Charts V, VI, pp. 14, 15; E, p. 16; 123, p. 191; 132-135, pp. 200-203. turnover, stock, 211, p. 303. years, Chart IV, p. 13; 121, 123, pp. 188, 191; 125, 127, pp. 193, 195. per store, 120, 121, p. 188; 124, 125, pp. 192, 193. defined, p. 187. reduction of, methods of, see Reduction of expenses, and Summary, relation of, to inventories, see Inventory, sales per full-time sales-person, see Sales. Expenses, tendencies of, for different conditions of store operation, see Sum- mary. Fixture account, amounts of, per $100 of sales, in relation to advertising, 271, p. 376; 277-280, pp. 383-387. 412 Fixture account, amounts of, per $100 of sales, in relation to selling expense, 85, 88, pp. 143, 147; 93-96, pp. 152-155. per 100 sq. ft. of floor space, in relation to selling expense, 106, p. 169. relation of, to advertising, see Expense, Advertising. other selling expense, see Expense, Other selling. total selling expense, see Expense, Selling. wages and salaries, see Expense, Wages and salaries, reduction of expenses through reducing fixtures per $100 of total net sales, pp. 161, 163, 170, 290, 295. Floor space, amounts of, per $100 of sales, in relation to rent, 76, 79, pp. 130, 134; 81, 83, pp. 137, 140. per store, in relation to fixture investments, 103, p. 165. rent, 75, 78, 83, pp. 128, 132, 140. reduction of expenses through saving in floor space, pp. 133, 139, 166, 170, 271, 291, 295. Gross margin, defined, p. 4. index of, in relation to net profit, 292, 293, pp. 403, 404; Chart VII, p. 405. rent, 83, p. 140. Inventory, Average, defined, p. 4. Yearly, amounts of, per $100 of sales, in relation to advertising, 230, p. 324; 237-240, pp. 332-335. selling expense, 20, p. 56; 28-31, pp. 67-70. wages and salaries, 137, p. 207; 145-148, pp. 216-219. reduction of expenses through control of, pp. 58, 66, 70, 83, 85, 221, 226. relation of, to advertising, see Expense, Advertising. other selling expense, see Expense, Other selling. total selling expense, see Expense, Selling. turnover, stock, see Turnover. wages and salaries, see Expense, "Wages and salaries. Merchandise sold, cost of, see Cost of merchandise sold. Methods of compensating regular salesmen, pp. 118-127 ; pp. 258-263. See also Bonus, Commission. Methods of reducing expenses, see Reduction of expenses. Net profit, defined, p. 4. index numbers of, in relation to rent, 83, p. 140. relation of, to cost of merchandise sold, see Cost of merchandise sold. 413 Net profit, relation of, to gross margin, see Gross margin. selling expense, see Expense, Selling. total operating expense, see Expense, Total operating. Profit, net, see Net profit. gross, see Gross margin. Purpose of undertaking the study, p. 1. Reduction of expenses through control of advertising, pp. 179, 185, 304. fixture account, pp. 161, 163, 170, 290, 295. floor space, pp. 133, 139, 166, 170, 271, 291, 295. inventories, pp. 58, 66, 70, 83, 85, 221, 226. methods of paying salesmen, pp. 120, 122, 126, 127, 260-262. sales per full-time sales-person, pp. 90, 92, 104, 107, 118, 230, 241, 256. turnover, stock, pp. 77, 85, 226. Rent, relation of, to advertising, see Expense, Advertising. floor space, see Floor space. selling expense, see Expense, Selling, wages and salaries, see Expense, Wages and salaries. Salaries, see Expense, "Wages and salaries. Sales, total net, amounts of, per full-time sales-person, in relation to selling expense, 44, 48, pp. 88, 95; 53-56, pp. 101-104. rent, 83, p. 140. wages and salaries, 155, 160. pp. 229, 237. reduction of expenses by increasing the, pp. 90, 92, 104, 107, 118, 230 241, 256. per $100 of advertising, in relation to amount of sales per full-time sales-person, 254, p. 355. per 100 square feet of floor space in relation to rent, 83, p. 140. per $100 of wages and salaries in relation to fixtures, 192, 204, pp. 277, 293. sales per full-time sales-person, 156, 161, pp. 231, 239. per store, 2, 6, pp. 35, 39; 83, p. 140; 120, 124, pp. 188, 192. relation of, to advertising, see Expense, Advertising, other selling expense, see Expense, Other selling, total selling expense, see Expense, Selling, wages and salaries, see Expense, Wages and salaries. Salesmen, amounts sold by, see Sales. methods of compensating, see Bonus, Commissions. Selling expense, see Expense, Selling. Stock, average, see Average stock, turnover, see Turnover, stock. 414 Summajy Advertising expense, amounts of, per $100 of sales, in relation to fixture investments, L, p. 27, and p. 385; inventories, F, p. 17, and pp. 326, 342, 347; store loca- tion, B, p. 7, and p. 320; rent, p. 374; sales per full-time sales- person, H, p. ^0, and p. .570/ selling expense, p. 183; size of store. A, B, C, pp. 5, 7, 8, and 320; turnover, stock, p. 348; years, A, p. 5, and pp. 507, ^iS. per $100 of selling expense, in relation to fixture investments, L, p. 27, and p. 385; inventories, G, p. i5, and pp. 326, 342, 348; store location. Chart VI, p. 15, and p. 5^0; rent, p. J74; sales per full-time sales-person, J, p. 5J, and p. 57i; size of store, E, Charts V, VI, pp. 14-16, and p. 320; years, Chart IV, p. i5, and pp. 307, 319. Floor space, amounts of, per store, in relation to rent, p. 140. per $100 of sales, in relation to rent, p. 140. Inventory, yearly, total, amounts of, per $100 total net sales in relation to advertising, pp. 342, 348; total selling expense, p. 69; years, p. 85. Other selling expense, amounts of, per $100 of sales, in relation to store location, B, p. 7, and p. 397; size of store. A, B, C, pp. 5, 7 , 8, and p. 396; years, A, p. 5 and p. 396. per $100 of selling expense, in relation to store location, Chart VI, p. 15, and p. 397 ; size of store, E, Charts V, VI, pp. 14-16, and p. 396; years. Chart IV, p. 13, and p. 396. Sales, total net, amounts of, per full-time sales-person, in relation to amount of wages per $100 of sales, p, 257; size of store, p. 257 ; years, pp. 232, 256. per $100 of wages and salaries, in relation to sales per full-time sales- person, p. 257; size of store, p. 257; years, p. 233. Selling expense, total, amounts of, per $100 of sales, in relation to advertising, N, p. 31, and p. 185; bonus, pp. 126, 127 ; commissions, pp. 120, 122; fixture investments, L, M, pp. 27, 29, and pp. 163, 170; inventories, F, p. 17, and pp. 57, 69, 85; store location, B, p. 7, and p. 52; rent, K, p. 25, and pp. 139, 140; sales per full-time sales-person, H, p. 20, and pp. 89, 102, 118; size of store. A, B, C, pp. 5, 7, 8, and p. 52; turnover stock pp. 79, 85, 164; years. A, p, 5, and p. 52. per 100 square feet of floor space, in relation to fixture investments, p. 170. per $100 of total expense, in relation to advertising, N, p. 31, and p. 185; bonus, pp. 126, 127; commissions, pp. 120, 122; fixture in- vestments, L, p. 27, and p. 164; inventories, G, p. 19, and pp. 60, 85; store location, Chart III, p. 11, and p. 52; sales per full-time sales-person, I, p. 22, and pp. 89, 118; size of store, D, Charts II and III, pp. 10-12, and p. 52; turnover, stock, pp. 79, 85; years. Chart I, p. 9, and p. 52. Wages and salaries, amounts of, per $100 of sales, in relation to advertising, N, p. 31, and p. 304; bonus, pp. 261, 262; commissions, pp. 260, 262; fixture investments, 415 L, M, pp. 27, 29, arid pp. 290, 295; inventories, F, p. 17, and pp. 226, 290; store location, B, p. 7, and p. 204; rent, K, p. 25, and p. 271; sales per full-time sales-person, H, p. 20, and pp. 233, 250, 256; size of store, A, B, C, pp. 5, 7, 8, and p. 204; turn- over, stock, p. 305; years, A, p. 5, and p 204. Summary Wages and salaries, amounts of, per $100 of selling expense, in relation to advertising, N, p. 31, and p. 304; bonus, pp. 261, 262; commissions, pp. 260, 262; fixture invest ments, L, M, pp. 27, 29, and pp. 290, 295; inventories, G, p. 19 and p. 226; store location. Chart VI, p. 15, and p. 204; rent, K p. 25, and p. 271; sales per full-time sales-person, J, p. 23 and pp. 250, 256; size of store, E, Charts V and VI, pp. 14-16 and p. 204; turnover, stock, p. 305; years, Chart IV, p. 13 and p. 204. Total expense, see Expense, Total operating. Turnover, stock, rates of, in relation to advertising, 249, p. 347. inventories, 40, 41, pp. 82, 83. rent, 83, p. 140. reduction of expenses by means of, pp. 77, 85, 226. relation of, to advertising, see Expense, Advertising, total selling expense, see Expense, Selling, wages and salaries, see Expense, Wages and salaries. Units used explained, p. 4; use of, for measuring expenses, p. 3. Wages, see Expense, Wages and salaries. 416 , ,<• u.i l(,^,^; ,'Kl',ARY FACILITY AA 001 026 564 3 SOUTHERN branch; UNIVERSITY OF CALIFORNIA: LIBRARY, iLDS ANGELES, CALIf^. ^'