Business English Part 50

8. Labor unions are a benefit to the public.

9. All government should be conducted on the civil service plan.

10. Underselling a compet.i.tor ruins trade.

=Exercise 151=

One or two weeks in advance let the cla.s.s choose three members for each side of one of the following propositions. On the day of the debate let the rest of the cla.s.s act as judges to decide which side has presented the most convincing arguments in the best English.

1. It is better to be a farm hand than a factory employee.

2. Every girl should prepare herself to earn her own living.

3. Trusts should be regulated, not abolished.

4. Strikes should be considered illegal.

5. Advertising has increased the cost of living. (See Exercise 152.)

6. Communism would lower the cost of living.

7. The business of a city should not be centralized.

8. Labor troubles are brought about because the poor ape the rich.

9. Contentment is better than wealth.

10. Tariff increases the cost of living.

=Exercise 152--Outline for a Debate=

Choose two or four members of the cla.s.s to develop each side of the following debate. Wherever possible, definite figures should be used.

_Resolved_, THAT ADVERTISING HAS INCREASED THE COST OF LIVING.

_Affirmative_

I. Modern advertising is world-wide in extent.

(_a_) Practically all cla.s.ses of articles are now extensively advertised.

(1) Food stuffs; e.g., breakfast foods.

(2) Clothing; e.g., men's suits.

(3) Luxuries; e.g., automobiles.

(4) Investments; e.g., real estate.

(_b_) Every possible medium is used.

(1) Newspapers.

(2) Magazines.

(3) Billboards and street cars.

(4) Circulars and booklets.

II. An enormous amount of money is spent in advertising.

(_a_) The use of advertising agencies is growing more widespread.

(1) One agency has made the statement that it has nine men whose salaries amount to $227,000 annually.

(_b_) More and more companies are engaging advertising managers.

(1) They draw large salaries.

(_x_) In many cases, $10,000 annually.

(_c_) Advertising rates are very high; for example, (1) The rate for a certain magazine is $1000 a page per issue.

(2) Metropolitan newspapers charge as high a rate as $500 a page per issue.

(_d_) Many advertisers use each issue of a number of mediums, making the cost run to an enormous total; for example, (1) _Cream of Wheat_ is advertised in every issue of almost every magazine.

III. The consumer pays for the advertising.

(_a_) The price that the consumer pays for an article must cover the cost of production and the expense of distribution, leaving fair margins of profit, since (1) The manufacturer will no longer produce if his profit ceases.

(2) He is not willing to take the cost of advertising from his profit in manufacturing.

(3) The dealer will not take the advertising cost from his own profit.

IV. Advertising increases prices.

(_a_) The cost of manufacture and the expense of distribution have been steadily lowered, and yet prices of articles have steadily advanced; therefore (1) The rise is not due to the cost of manufacture.

(2) Nor to the expense of distribution.

(_b_) Compet.i.tion necessitates an increased amount of advertising.

(1) If one firm begins to advertise, its compet.i.tors, for self-protection, must follow suit.

(_c_) Compet.i.tive advertising raises expenses above the point where there is a fair profit at the old price.

(1) For a given kind of goods there is usually a certain volume of business, which grows with population.

(2) If all the firms competing in those goods increase their expenses by advertising, they must raise prices to make the same profit as previously.

(_d_) Advertised articles cost more than the unadvertised.

(1) Bulk rolled oats vs. package rolled oats.

(2) Bulk pickles and relishes vs. advertised brands.

(3) Bulk macaroni vs. package goods.

_Negative_

I. The present increased advertising is the result of normal growth.

(_a_) Multiplied manufactures necessarily multiply advertis.e.m.e.nts.

(1) Every day new products are being put on the market.

(2) No product has the chance of a sale until it is known.

(3) In the present scope of community life the advertis.e.m.e.nt is the most convenient means of acquainting consumers with new products.

(_b_) Any unusual increase in advertising has a reasonable explanation.

(1) Automobile advertising has increased as the automobile has replaced the wagon and carriage, because of (_x_) Greater convenience.

(_y_) Lower operating cost.

(2) Prepared breakfast food advertising has increased as these foods have replaced cooked foods, because of (_x_) Greater convenience.

II. Increased advertising is done on the scale of old prices.

(_a_) Merchants dare not raise prices to make the consumer pay for the advertising, since (1) They must compete with manufacturers who do not advertise and who have no overhead advertising expense.

(_b_) The most widely advertised articles are the inexpensive necessary accessories.

(1) Food products.

(2) Soaps and soap powders.

(3) Toilet articles.

(_c_) They have not advanced in price.

(1) Quaker Oats.

(2) Ivory Soap; Sapolio.

(3) Mennen's Talc.u.m Powder.

III. Widespread advertising works to the advantage, not the disadvantage, of the consumer.

(_a_) It gives new opportunities (1) To compare values.