. Canadian grocer APril-June 1920 . ry figuresmore fully. I hope to reciprocate atsome future time. Yours truly, You need never apologize for writingsuch intelligent inquiries, for I learnthrough trying to answer just such ques-tions! I am not sure that I know allabout the practices you speak of and Iam not in reach of the right informationat this time; but maybe I can help some. Practically all large departmentizedhouses, wholesale or retail, set certainquotas of sales for their various depart-ments at the beginning of each quotas are based on estimates fur-nished by the department
. Canadian grocer APril-June 1920 . ry figuresmore fully. I hope to reciprocate atsome future time. Yours truly, You need never apologize for writingsuch intelligent inquiries, for I learnthrough trying to answer just such ques-tions! I am not sure that I know allabout the practices you speak of and Iam not in reach of the right informationat this time; but maybe I can help some. Practically all large departmentizedhouses, wholesale or retail, set certainquotas of sales for their various depart-ments at the beginning of each quotas are based on estimates fur-nished by the department heads, modi-fied by the merchandise or sales managerand by other means. Growth Is Imperative Among such houses it is keenly real-ized that steady, consistent growth is animperative necessity in business. Not togrow is to stagnate and die. So thehouse which did $8,000,000 in 1919 setsa quota of $9,000,000 as total sales for1920, and apportions the expected in-crease among its departments pro rataon last years sales, very nearly. But. HENRY JOHNSON, JR. each department manager seeks to havehis quota put as low as possible, so hecan exceed it as much as possible. Theyall figure to beat the $1,000,000 increaseby considerable. Such houses naturally have elaborateaccounting systems — far more detailedthan any common or garden variety ofgrocer could understand, let alone be ableto afford. They know practically everynight just where they stand. Depart-ments are watched keenly, checked upfrequently, seldom permitted to run onany haphazard plan. Hence it is com-paratively simple for them to know, withclose approximation, what stock theymust have in general, and in particularin every department. No trouble at allto tell in August almost exactly what thehardware stock, for instance, will standat on December 31. Now, let us suppose that the end ofthe year finds the hardware man with hisquota of sales made say $160,000. Hehas made his average margin with cer-tainty, because his prices are
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