STEADYING BUSINESS
SEASONAL DISCOUNT
A large food cannery, on the other hand, has found that
“deferred dating is of no value unless accompanied by special
discount,” but that the latter, “under certain conditions,
causes jobbers to increase their stocks.” Numerous other
manufacturers have had a similar experience. To many
dealers a discount on advance orders is far more convincing
than are any other advantages of early ordering. A producer
of duplicating machines finds that offering a properly timed
discount attracts a good volume of sales at the season when
demand formerly slackened. At times when consumption
warrants he also offers coupons for the supplies to be used with
his machines. A preserver of fruits writes, “One [method] we
use in off seasons is to sell the retailer a deal of all of our five
products. He gets a generous discount on this deal but the
proportion of each product he must buy is determined by us.”
In other words, this concern combines the seasonal discount
with a plan for development of the market for its dovetailed
products.
A builder of heating apparatus systematically adjusts his
prices from season to season. The lowest price is set in Febru-
ary, March and April; it is raised by 214 per cent. during the
next quarter, May, June and July, then by another 214 per
cent. in August, September and October; it is lowered in
November, December and January 214 per cent. from the
previous quarter. This policy of rewarding the customer who
plans and orders well in advance of his need, and penalizing
those who order late, has had a powerful stabilizing effect on
this highly seasonal business.
SEASONAL ADVERTISING
The search for advance orders, with or without preferential
prices and similar inducements, is often made easier by properly
timed publicity. Among other sales management devices.
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