Business English: A Practice Book by Rose Buhlig

DISTRIBUTION CORRECT buying and the most efficient methods of manufacture play a large part in the successful carrying on of a business, but the most important consideration is the successful marketing or distributing of the product after it has been manufactured or bought. Very few products are so superior in quality that they sell themselves purely on merit. Competition in business to-day is so keen that, in order to find a market for his product, a merchant must create a demand for it. Thus at its very foundation, distribution is merely a process of creating a demand and then filling that demand. For instance, the retail merchant is concerned with bringing the customers to his store rather than to his competitor's across the street. The wholesale merchant is concerned with having the retailers handle his goods rather than those of another firm. The mail order merchant is concerned with getting the farmer's business before some other dealer gets it. The salesman is concerned with writing the order before a rival from another house writes it. In the first place, the merchant must handle those things that his customers consider necessary or desirable. Overcoats cannot be sold in August, ashsifters on the equator, nor electric fans in Iceland. Different peoples, different times, and different conditions create different demands, and it is the merchant's business to study those demands and to fill them. In the second place, he must leave no stone unturned in endeavoring to make his product more desirable than that of his competitors. This may mean extensive advertising campaigns, expensive displays, outlay for costly catalogues and booklets, the expenditure of money for inducements to bring customers, or the hiring of expert salesmen. In fact, thousands of plans are carried out every year in this endeavor to increase trade. The getting of new and additional business, however, is only one of the important considerations that the merchant must always have in mind. He must also keep what business he already has by maintaining the standard of his goods and by giving his customers satisfactory service. One of the first essentials in this question of service is promptness and exactness of delivery. In this the merchant must depend very largely on the transportation companies, and therefore a brief study of these facilities will be especially in place at this point. Transportation Transportation is an essential item in the problem of distribution. If you wished to drink a cup of coffee and found that none could be had except in Brazil, you would begin to realize how much the steamship company and the railroad company have done in transporting and hauling it where you might buy it. The same is true of our oranges from California and Florida, our apples from Washington and Oregon, and our grain from the Middle States. In fact, in the case of many products the most important item is not growing them, but bringing them to market, since the transportation charges are often much greater than the actual cost of producing. Thousands of barrels of apples rot on the ground every year because their quality does not warrant the high transportation charges, the lack of transportation rendering them useless. In a smaller measure, the delivery wagons in our cities and towns are essential to us because they save us the trouble of carrying our purchases about. Thus, the element of transportation enters into our lives every day, saving us inconvenience, bringing to us necessities that we demand and luxuries that we like, and, at the same time, increasing the price of commodities. Common carriers, as transportation companies are called, are of two general classes: