130 WOMEN’S MUSLIN-UNDERWEAR INDUSTRY. 
made to jobbers with the establishments the larger part of whose 
sales were made to retailers: 
TABLE 41.—NET SALES, PROFITS, AND AVERAGE PERCENTAGES OF PROFITS, BASED 
oN NET SALES, OF ESTABLISHMENTS HAVING DIFFERENT METHODS OF SELLING. 
Establishments the 
larger part of whose 
fiom sales were to— 
Jobbers. | Retailers. 
Number of estab ments. ee mmm mein tim = = = == 's wewie man 13 40 
Amount Of Neb Salon... eich nbn nse ne nse enemas SD 50S, A0GNNSY, 559, 171 
Amount of manufactoring profif.. ......... coco eaieesiiancienar iene aa il $197, 200 $609, 890 
Average per cent iof manufacturing profit... ...cociiiiiniii ities 7.40 6. 38 
Amountof ANAL DrOfil. ou. vy vensesrsnrnrsmsrrennsrersnasnnsvsnsnsinmanssssnmee-olll S199 GOO $5486, 772 
Averagoper conb of IMAL Profil, ......covssisnrsssonssannesrensnnimvsanmmnss vn mnn 7.07 5.72 
Amount of administrative eXpense.. ....scsuees asssssossnsrsanssnssnavenon: suns $68, 056 $267,021 
Average per cent of administrative expense. ......ccucuveenvnnsasnsnnsssnnnannns 2.62 2.80 
Amaount of Selling eXPOIISe. .. oui. iis ile suns means va enn x ae wesw wand $120,514 $846,763 
[Average per cent of Selling EXPENSES. ...c rr. snrue i ares assnsnsnsncs I sees 4.98 8. 86 
The impression very generally prevails that establishments which 
sell direct to retailers realize larger profits than those which sell to 
jobbers, but so far as is shown by the data collected in this investi- 
gation, the contrary is found to be the case. It will be seen by the 
table that the 13 manufacturers selling mostly to jobbers had an 
average manufacturing profit of 7.40 pe cent and an average final 
profit of 7.07 per cent, based on net sales; and that the 40 manufac- 
turers selling mostly to retailers had smaller percentages of profit— 
6.38 per cent manufacturing profit and 5.72 per cent fool profit. 
The smaller per cent of profit earned by the manufacturers selling 
mostly to retailers is accounted for by their higher selling expense, 
which averaged 8.86 per cent of the net sales, while the average 
selling expense of manufacturers selling mostly to jobbers was 4.98 
er cent. 
2 The considerably higher percentage of expires for selling in the 
case of manufacturers selling mostly to retailers was to some extent 
due to the fact that some of these manufacturers had recently 
changed their method from selling to jobbers to selling to retailers. 
dn the process of building up a trade with retailers an establishment 
incurs large expense, and therefore it may at the beginning have small 
profits or perhaps losses, but after it has established a steady trade 
with retailers, its profits may be greater than they were when the 
larger part of its product was sold to jobbers. 
The usual time and cash discount to jobbers is 3-10 (that is, 3 per 
cent discount on bills paid in 10 days) and 2-10-60 (2 per cent on 
bills paid in 70 days), and to retailers is 8-10 and 7-10-60. Table 40 
shows that 2 tin gave an actual discount of 8 per cent or 
over, 11 an actual discount of betwoen 7 and 8 per cent, 15 concerns 
{from 6 to 7 Ie cent, 10 between 5 and 6 per cent, 3 between 4 and 5 
per cent, 11 between 3 and 4 per cent, 8 between 2 and 8 per cent, and 
4 between 1 and 2 per cent, 1 establishment not reporting. Because 
of special discounts allowed, the actual discounts taken were in some 
cases higher than the discount usually allowed. 
Good salesmanship.—It was stated that if a salesman travels the 
same territory every three months he must carry new styles. Often