SELLING PRICES AND TERMS OF BUSINESS. IO9 



company must therefore be prepared to assist the con- 

 sumer, and indirectly themselves, in regard to anything and 

 everything that can be hired out on remunerative lines. I 

 am not in favour of hire-purchase schemes. The appliance 

 is usually badly worn by the time the last instalment is 

 reached. Indeed, I have known careless customers who 

 had knocked the cooker to pieces before they had paid 

 for it. One often hears that the advantage of hire-purchase 

 is that when the consumer has secured the ownership of the 

 appliance he is more likely to continue to use it. But there 

 are two sides to the argument. He does continue to use 

 it long after it should be consigned to the scrap heap, 

 and when it is an annoyance to himself and a discredit to 

 the use of gas. The advantages of simple hire as compared 

 with hire-purchase is that the company keep the full control. 

 No doubt it costs more, but the consumers are satisfied, 

 and the company get more business. If the company are 

 responsible for keeping the stove in repair, the consumer 

 does not allow one or more burners to go for months 

 unused because they need repair; but it is another thing 

 when he knows that ihe repairs will be at his expense. 



The method of calculating a fair charge for hire of stoves 

 or fittings is the same as for meters. It must cover 

 (i) interest on first outlay, (2) renewal and depreciation, 

 (3) special expenses, such as inspection, cleaning, etc. The 

 working life may be anything from five to twenty-five years, 

 apart from the possible frequent renewal of parts that wear 

 rapidly. A charge of 12^ per cent, for cookers and 15 per 

 cent, per annum for fires, payable quarterly, based, as in 

 the case of meters, on the net cost, including fixing, is 

 sufficient to cover all costs. If the consumer will pay for 

 the fixing, well and good; but in most cases anything in the 

 way of a first charge is a hindrance to business. 



