Marketplace

“ Dealers in a small way, in cities and large towns, are frequently denominated shop-keepers; but those who do an extensive retail business, are usually called merchants or grocers, according as they deal in dry goods or groceries. In cities, the extensive [189] demand for goods enables retailers to confine their attention to particular classes of articles; such as groceries, hardware, crockery, a few kinds of dry goods, or some articles of domestic manufacture; but in other places, where trade is more limited, the merchant is obliged to keep a more general assortment. ”

“ Every great market is organized with a view not merely to the purchase and sale of a commodity at once, or “on the spot,” but also with a view to the future requirements of buyers and sellers. This organization arises naturally from the necessities of business, Future Delivery. since modern industry and commerce are carried on continuously, and provision has to be made for the requirements, say, of a spinning-mill, by arranging for the delivery of successive quantities of cotton, wool or silk over a period of months “ahead.” ”

“ The factor often provides a store, together with a complete selling and office force, and every facility for receiving, storing, selling, and shipping the goods, and for financing the business. The salesmen of the house travel throughout the country, reaching all the important markets, and the managers of the different departments, who thus understand the needs of the market, are in a position to advise the mill with intelligence and exactness as to the kind of goods which should be made to meet the requirements of the trade. ”

“ In such a market every purchase is made with the most thorough acquaintance with the conditions involved. Each dealer, each broker, each speculator, strives to obtain the best knowledge7 of the supply and demand, and the earliest news that may affect it, and each buyer or seller has an equal and a fair opportunity to profit by the resultant effect on the market of all these various agencies. The larger the body of brokers and traders, then, the more accurate the standards of value thus created. ”

“ When indeed the market, being that of a great city, holds out a sufficient inducement to large capitalists to engage in retail operations, it is generally found a better speculation to attract a large business by underselling others, than merely to divide the field of employment with them. This influence of competition is making itself felt more and more through the principal branches of retail trade in the large towns ”

“ If the store is his own, he can make sure that his goods are represented by a full line, he can dictate the price at which they shall be sold and the service that shall be given. Retailers have used coöperative methods in order to make their relations with production more direct, through buying clubs organized to accomplish specific purchases, through buying organizations of a permanent character which rival jobbing houses, through capital-ownership in wholesale houses, and in a few cases through manufacturing institutions. ”

“ Through Wholesalers and Retailers.—Most products of common use—such as foods, clothing, footwear, house furnishings, lumber, fuel and so on—are marketed through middlemen. The manufacturer of men’s clothing or of shoes usually sells his product to retailers scattered over the country who in turn sell to consumers. Manufactured food products, dry goods and notions, drugs, hardware and house furnishings are generally sold first to wholesalers, who in turn sell to retailers. ”

“ Upon this foundation has been raised a business of such proportions that it scarcely knows any limits, and wherever telephone or telegraph, mail or express, reaches, there you will find this business represented. Distance makes no difference. Customers served at any time and in any place. Catalogues, representative of the entire stocks of these large houses, are issued from time to time, and regularly find their way into the people's homes, no expense being spared to keep customers informed regarding goods and prices. The methods employed have won their trade, and fair treatment retains it. ”

“ Such wholesalers are known variously as commission dealers and brokers.
While goods are being gathered together in wholesale quantities and made ready for distribution to the retail trade other factors in marketing frequently enter in, factors of a speculative nature. Well-standardized goods that are not readily perishable, such as grain, cotton, wool, silk, provisions, coffee, sugar and so on, are likely to be bought purely for speculative purposes. ”

“ This is the constant multiplication of intervening agents—middle-men, factors, brokers, speculators, contractors, and distributors of every sort—between the producer and the consumer, or between the primary owner and the ultimate owner of almost everything which is the subject of ownership and trade. Those two, who are the actual persons brought chiefly into relationship by the thing in question, are put quite out of sight of one another in most of the transactions of modern industry and commerce ”

“ As large and populous as is the market, it is conducted with the greatest order. There is a particular place appropriated for the sale of each class of goods: thus in one place may be seen spinners offering their yarn to those who weave; in another, weavers offering their cloths; then those who sell iron-ware, sitting in their own quarters, and next to them the dealers in beads and other ornaments: here is the meat-market, and there the wood-market, and the clothing-market, and the place for the sale of live-stock, etc. etc. One man manages the entire affair with the greatest ease. ”

“ Those who lived near a town were permitted to sell their products in the market place within the walls on condition that they sold directly to the consumers. They might not dispose of their whole stock to one dealer, for fear that if he had all there was of a commodity he might raise the price above a just one. ”

“ The wholesale trade is conducted by three classes of persons: dealers or merchants, commission men, and brokers. The dealer is one who buys the goods outright and takes his own risk on making a favorable sale to the retailer. The commission man is one who receives the goods, sells them at such price as he may be able to obtain and remits to the seller the amount obtained less expenses and his commission. The broker is a man who effects a sale without coming in contact in any way with the materials sold. ”

“ If sold for cash in the home market, well and good, but if sold on consignment, choose one reliable commission house in each city in which the product is to be marketed—never two in the same city—and ship to it right along. ”

“ It is true, therefore, of every particular producer or dealer, that a great demand, a brisk circulation, a rapid consumption, of the commodities which he sells at his shop or produces in his manufactory, is important to him. The dealer whose shop is crowded with customers, who can dispose of a product almost the very moment it is completed, makes large profits, while his next neighbour, with an equal capital but fewer customers, gains comparatively little. ”

“ Securing these new names is simply a part of the natural development of the catalogue trade. Wisely considered, the development is both from within and from without. From within, by adding new stocks to the business from time to time, as space, resources and abilities permit; and from without, by adding new and increased numbers to the purchasing list. From within, by getting more goods to sell; and from without, by getting more people to buy. Not only continuing to sell the same goods to the same people, but getting more goods for these same people, and more people to buy these goods. ”

“ Once the merchant has opened his store or shop and purchased his goods he seeks to establish trade relations with as many individual customers as he can attract. Mercantile business is carried on in two kinds of stores, those which supply one kind of goods in wholesale or retail quantities, like groceries or dry goods, and those which maintain numerous departments for different kinds of manufactured goods. ”

“ The point of greatest interest in this is the fact that combinations among this first class of middlemen are fostered and made possible by the combination of producers. Nor does the series end here necessarily. The increased price which the retail dealers are obliged to pay for the goods, with the fact that others are making larger profits, makes them eager to do the same; and by the aid and co-operation of the wholesale merchants they may be able to do much toward checking competition among themselves and increasing their profits. ”

“ A large force of experienced buyers are constantly employed, who visit the world's markets at regular intervals in search of new goods. The aim is to save all intermediate profit, by buying direct from the makers, making direct connection between the manufacturer and consumer, and thus getting as near as possible to the actual cost of production. ”

“ You would have secured a much better bargain, no doubt, had there been twenty dealers in the room competing with each other, and a still better bargain had their number been fifty, or a hundred, or two hundred, because that would mean competition, and the more competition there is, in close contact and governed by rigid business rules, the more certain the approach to a perfect price. Everywhere in the world fairs and other gatherings of merchants are held at periodic intervals because people demand them in their effort to secure proper prices by competitive bidding and offering. ”

“ The merchant or manufacturer protects himself against his risk of loss by making another addition to the price of the goods he sells. Usually the goods pass through several hands; those of the jobber, the Western or Southern wholesale dealer, and the retailer, before they reach the consumer. ”

“ What are known as "markets" are groups of jobbers distributed about the house, each group having its own particular dealings, one in Government Stocks, another in English rail- ways, a third in Foreign securities, and so on. A broker having received an order from a customer to sell £1,000 Great Eastern Railway Stock, would go to the English railway group and inquire of a jobber the price or quotation for Great Easterns, without disclosing whether he wants to buy or to sell. ”

“ Effective competition in retail trade sometimes requires concentration, sometimes dispersion of business. But the most characteristic modern movement in retail trade is a combination of the centralising and dispersive tendencies, and is related to the enlargement of the business-unit which we found proceeding everywhere in industry. The large distributing company with a number of local branch agents, who call regularly at the house of the consumer for orders, is the most highly organised form of retail trade. ”

“ Here good Father Anselmo, of the Ursulines, pours out a benediction upon the market and the awaiting people. When the gates are opened the police take their stations and the market is ready to receive the buyers and sellers of the day. Through the open portals into the market flows a stream of laughing, singing men and women. ”

“ In short, the open market is open to all; and every man has a right to sell there his labor, his skill, or his goods, of whatever sort he can produce, at such a price as he can obtain. The same is true of the buyer. I have a right to go into the open market and secure such goods as any one wishes to sell me at the lowest price for which he will part with them. ”

“ When products and transactions have multiplied beyond a certain point; when one manufactory supplies many shops, and one shop has often to obtain goods from many different manufactories, the loss of time and trouble both to the manufacturers and to the retailers by treating directly with one another makes it more convenient to them to treat with a smaller number of great dealers or merchants, who only buy to sell again, collecting goods from the various producers and distributing them to the retailers, to be by them further distributed among the consumers. ”

“ We draw such fine distinctions between the wholesale and retail traders that our cotton-spinners, calico-makers, and general merchants seem to think that they belong to a totally different sphere, from which they look down on the lady who has had sufficient brains, capital, and courage to open a shop. ”

“ The gain in regularity shows itself notably in institutions like the market, the fair, and the exchange. The old system of market-days, under which country people came to town on stated days to display their wares and enable housewives to lay in a supply of provisions, has given place to a steady flow of products through city shops and market halls to the consumers. Fairs have lost their significance in modern countries, because the volume of trade is now so great, and the instruments of trade are so highly developed, that commerce has developed into one permanent fair. ”

“ On the other hand, large manufacturers in many trades (of which the boot trade is an example which must have come under the notice of every reader) are tending to open retail shops of their own in favourable localities, so as to obtain the retailer’s commission as well as the manufacturer’s profit. Evidently these large manufacturer-shopkeepers are more likely to be extensive advertisers than small one-shop retailers. ”

“ We enjoyed the confidence of the large importers and dealers and were in close touch with the consuming trade throughout the country. Our facilities for getting information as to stocks in the aggregate and individually were unequalled. The large consumers posted us in advance of what their requirements would be for certain periods. If the large city dealers were manipulating the market it was done through our office and we knew their plans. ”

“ In retailing the buyer necessarily seeks the seller, but since in all forms of trade it is the seller who is anxious to promote business, the retailer facilitates his possible customers by placing his shop where the largest number of them would pass, even though his shop were not there. Here he utilizes his shop windows and signs to draw customers into his shop, the two elements of convenience of location and advertising advantage working hand in hand. ”