SELLING LUMBER 



261 



through during the past few years, the selling cost has been large, 

 as compared with the general profits of the business. It is a sad 

 fact that the selling cost is usually the very highest at the time 

 when the market is the lowest, and when our employers are least 

 able to stand the expense. Let us at all times remember that our 

 efficiency means keeping the selling cost down as much as is con- 

 sistent with the securing of the highest price for the product we 

 have to sell. 



The average cost of all shipments for the first four months 

 of this year for sixty-nine mills reporting to the Southern Pine 

 Association, shipping 943,029,970 feet was $14.50 per thousand and 

 the selling expense amounted to 68.3 cents, or .046 per cent of the 

 whole. If the selling expense of the sixty-nine mills reporting 

 to the Association that now have this average selling expense 

 for the first four months of 68.3 cents had been reduced to the 

 average of the nine mills that I am familiar with, to 56 cents per 

 thousand it would mean a saving of 12.3 cents per thousand. These 

 nine concerns I have reason to believe received at least an average 

 price for their product that would be fully up to or above the 

 average price received by the entire sixty-nine concerns reporting. 

 This would mean a total saving to the 35 per cent of the Association 

 that are now reporting costs to the Association of $115,992.68, or 

 on this same basis of about one-third of one million dollars to the 

 manufacturers that are now members of the Southern Pine Associa- 

 tion. 



Summing up the situation, the salesman who keeps ever a 

 watchful eye on his expense account and uses his maximum energies 

 in the service of his employer, even though he may not be as bright 

 as others, is the one who will be promoted while the one possessing 

 a brilliant mind failing to watch his expense account and serves 

 less loyally his employer, will ever remain a traveling salesman or 

 serve in some other position with less reward. 



Relation of 

 Cost of 

 Production to 

 Cost of 

 Selling. 



