Automatic Age

Issue: 1930 May

12
T h e A u t o m a t ic A ge
CENSUS O F D IS T R IB U T IO N TO IN C L U D E
M A N Y ITEMS
By DR. ROBERT J. McFALL
Chief Statistician for Distribution, United States Bureau of the Census
Automobile merchants have long realized
the need for basic and comprehensive in­
formation concerning the various agencies
and channels through which merchandise
travels from producers to the final sale to
consumers. The lack of such knowledge
has placed wholesalers and retailers gen­
erally at a great disadvantage in the
planning of their business. Production in
both manufacturing and agriculture has
been greatly benefited for many years by
the availability of statistical facts con­
cerning production. There seems to be
little or no question but that distribution
will also receive enormous benefit as soon
as more comprehensive statistical informa­
tion is available concerning marketing.
The average output per worker in pro­
duction has increased 85 per cent since
the beginning of the century and 34 per
cent since the termination of the World
War. No comparable figures are available
to show the changes in efficiency in distri­
bution, but the fact that production is
taking a smaller and distribution an in­
creasingly larger share of the consumer’s
dollar than before the war would make it
appear that distribution has not increased
in efficiency so rapidly as production. In
justice to our distribution system, it must
be stated, however, that in many cases the
increased cost of distribution may be
attributed to better service which is now
being rendered. Nevertheless there must
be some relation between this situation
and the fact that, while abundant data are
available regarding production, there are
few dependable statistics covering the field
of distribution. Thus the big question con­
fronting the business man is how the
be speedily and economically distributed to
supplies in all lines of merchandising can
be speedily and economically distributed to
the consumers, eliminating waste and un­
necessary expense.
Until adequate information is ava'lable
it is wholly impossible to know the many
diverse elements of distribution, their
operations and deficiencies. There have
been some data gathered by governmental
and private agencies on distribution, but
the work has been restricted in scope which
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the result that there never has been a
complete picture presented.
For these reasons and many others the
first nation-wide Census of Distribution,
now being taken, has created wide-spread
interest in the business world through whose
demand Congress has provided for this
study by the Bureau of the Census, which
already has arrayed an army of workers
to gather the basic facts concerning the
vast field of distribution.
The work is confidently expected to
develop important and useful knowledge
affecting the economic life of the country.
Rough guesses concerning such elementals
as the number of merchants in operation,
and their total volume of business, will be
supplanted by “cold figures.” Since the
survey is being conducted by .the Bureau
of the Census, automobile dealers need
have no hesitancy in answering the ques­
tions, because there is not the slighest
chance that the confidential information
they give will be disclosed. They are pro­
tected thoroughly in this particular by the
law, which requires that such information
shall never be revealed by the Bureau of
the Census, not even to any other Govern­
ment bureau or department. All employees
are sworn to keep secret the figures on the
individual returns.
Since the census is being taken at the
behest of the business world, and every
individual organization is merely a unit in
the whole structure which is being mea­
sured, the Bureau of the Census is con­
fident that generous co-operation will be
accorded it in the work, and hopes the
1930 census of distribution will present a
thorough picture of the subject and its
many parts. It is realized that one
difficulty may lie in the fact that the
information possessed by retailers, whole­
salers, and others may be scant. However,
it is certain that the eensus will compile
valuable information and, moreover, will
prove a dependable basis for getting addi­
tional and comparative material which will
prove helpful in the solving of the distri­
bution problems.
To indicate the scope of the work, it
may be pointed out that the census of
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T h e A u t o m a t ic A ge
distribution will cover all distributing
organizations and their business activities
as well as all automobile merchants. It
will give account of the various types and
sizes of retailers, wholesalers and all other
merchandising concerns in the entire
country, their sales, expenses, inventories,
and employees. So far as possible it will
provide information relating to goods sold
by these various distributors, the limiting
factor being the inadequacy of records
kept by the rank and file of merchants.
Not only will this information be sum­
marized whenever available for each city
and county as well as for each state and
the nation as a whole, but it also will be
publ:shed promptly so as to be as timely
and valuable as possible.
Every automobile marchant, as well as
merchants in other lines, will be in a posi­
tion to compare his business with that of
groups of others in his general locality
and in the nat'on as a whole. Comparisons
maybe made regarding the amount of
sales, proportion of business done on
credit, amount of goods returned, inven­
tory, expenses, number of employees,
wages, and various other items. Informa­
tion will be sought as to the number of
establishments an organization operates or
owns in a given l:ne of business in
different cities, the character of the or­
ganization, whether operated by an in­
dividual, partnership, incorporated company
or co-operative association.
Sales by
commodities, such as automobiles, trucks,
buses, tractors and accessories will be
tabulated.
Every business firm in the country will
be canvassed. Each dealer will be asked
a number of questions which will supply
essential facts. No attempt, however, will
be made to discover the amount of profit.
All questions to be asked are designed for
the purpose of obtain'ng data to eliminate
some of the blindness from competition,
to strike out waste, and, in general, to
help the automobile merchant and other
merchants, to know themselves and their
businesses to a point never known pre­
viously. The Census of Distribution re­
ports can be compared to a trade conven­
tion on a large scale in which merchants
exchange among themselves and for
mutual benefit many lessons drawn from
their practical experience.
The Census of Distribution is designed
to give retailers information concerning
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13
FLUCTUATING LIVING COST
The cost of living has done much
see-sawing since the war, as shown
by official statistics, the prices of 1913
equaling 100:
*Low
*High
Since War Since War
Food ......................... 138.7(22) 219.0(20)
Clothing .................. 160.5(29) 287.5(20)
Rent ......................... 109.2(18) 168.2(24)
Fuel and Light -- 145.6(19) 194.9(20)
House Furnishings. 197.7(29) 292.7(20)
Miscellaneous ......... 165.8(18) 208.8(21)
All Items ............. 166.3(22) 216.5(20)
♦Figures in parentheses indicate the
years in which the highs and lows
occurred
the number of establishments of each type
and size in their own community and the
average situation of each group as to such
matters as sales, inventory, expenses, em­
ployees, service, and so forth. Moreover,
it will acquaint retailers with the porpor-
tion of business done by chain stores as
against independents, the degree to which
stores of various types sell goods more
generally supposed to be sold by stores of
another type, and the proportion of retail
sales in their region made on credit, and
what proportion of sales is offset by re­
turned goods.
The census also will help manufacturers
and farmers in their field of production,
and finally it will help the consuming
pubi c which will benefit by lower prices
or better service supplied through more
efficient distribution.
GETTING HIGHBROW
To show where the drug store has got
to: A Liggett’s on S'xth Avenue has a sign
on the window which reads: “Come in and
Browse Around.”
Phil Baker said Florida raised enough
grapefruit in the last year to blind the
people that prohibition didn’t.
TALK
I wish people—when you s't near them—
Wouldnt’ think it necessary to make con­
versation.
And send their drought of words
Blowing down your neck and your ears
And giving you a cold in your inside.
—D. H. Lawrence.
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