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their lines to corresoon,. '7ith the stand:ird retail -rices, thr.t wouldd i
.::ive the ret ,iler )ercentr *e of profit sufficient to cover the re-
tailer's overhead n'il arof'it on hi-i sales. The retailers de::lded
that the manufacturers )ric(. their '.ines n,, .ollo's"

 ,..7 a clo-e.i to rctr il at 50..-
 7.50 $1..00
 15 n i'f II II II 1 95|
 21.35 "i 2.95
 3'.35 *I 11 If 4.95
 54.00 7 I I 7.50
 7'. OO. i f 11 1 if 10.00

 It follo'j-dL, ho-'ever, thLt -.1 ret -.iler-s -re not ,-illing to pay
the same -iholesple -rices to thie .irnufjacturers, id )-ice concessions
are continually soqw:ht by retailers, So as to nllo'7 then a larger per-
centage of )rofit.

 Tith the 1-holes-le )rice li:iw s stan.dar-died, the irnulacturers P'
forced to compete on ri b-is or strle, quality nnd value. Co.mvetition
arongst the .Aanufacturers is ver, l:een. Each manufacturer striving to
create no,7 styles Pnd. by .ivin.- -.iote vr.l-.e, he hio)es to a.ttrct busine!.
ai.a7 fron his couietitors. Style is an inortmant 'rctor, !- .d each yea
the manufacturerss' re-)resent: tires pro sent to 2uro-,'e to search the
ar!:ets for ne ideas. A style 'hr, ra.rel- remains :'. 'wnufacturerte
line .iore the-n eight to ten r'eeks. Then it nust be replaced by new
style because of ch,,-Le in color, irterirl, or because the style is
co-ied by a mater of chea) h-nCibogs. Ver:- frenuentl':, a style produce
in an extensive ja^ is co )ied into a. che.- bj-; soon after it is shomn.
in the shop of a ret.iler.

 There cannot U r' price :"i :i'.' b- the ianufa.cturerc of handb
since there are no st".idErIds of .,,-lue, Tnaterin.ls or 'Torlcianshi) that
requiredI in each --rice li-.e, 1nd si:ice no t,,o :ianufn.ctuers mn]:e the
identical bags. The nar-i.i between the uanufr.cturer's costs and his
selling "rice is so nnrro'- tn-t 7rer;t -r."ny of the oldest and iost
substantial fir.,s in the business have been unable to operate and havye
been forced into involuntar,r rietire-lent. '7ith twice the ni'rber of
manufacturers co:r:etin-: for one-hrlI the norTal. vo..ine of business,
corrpetition has' )lrced the hm.idbr" business at the nercy of the retail:
Because of these coniitionc, the retr.ilor is no'- delandinrt concession
in Rice, extra datir;, hi -her discounts, and .added services.

 The 3, discoimt rlloe b-r the :i'nufn.cturers is a cash discount,
and is offered as .n induceient for the prompt payment of the invoice.
the due date, -rhich i.1 thi3 c-se is on the tenth dla: of the nonth
follo-ing the date of shi)-nent. :n :-ntici)ation of receiving paynyent
of the :iajor portion of their accounts receivable on the tenth da' of...
each nonth, it is thie custo for the manufacturerss in the industry toi.
arranAe terns "ith their sources of su))lies that ,ill enable then
to 0ay their current indebtedness of the fiLteenth da;, of each nonth.e
This arr1n-ement .llo',,s the :.-irnufacturers five dai. for the recent
their funds. Sincu the cash discount the manufacturer is allowed de.
upon the ;Pp1nent of his bills pro:nDtly on the fifteenth of the :ionth,

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