612        Economic  Value  of  Wholesale  Druggist.    {Am' ^lvm' 
doors,  as  it  would  have  been  impossible  for  them  to  keep  up  stocks. 
As  it  was,  all  they  had  to  do  was  to  look  pleasant,  as  their  good 
friend,  the  wholesaler,  did  the  worrying,  and  in  those  days  there 
was  cause  for  it.  The  average  retailer  does  not  appreciate  that 
today  the  wholesaler  has  to  pay  spot  cash  for  much  of  his  mer- 
chandise. Nor  does  he  know  the  amount  of  money  the  wholesaler 
has  tied  up  without  a  chance  of  turning  a  dollar  of  it  over  for 
months  at  a  time.  He  gives  the  retailer  dating  on  this  same  mer- 
chandise for  which  he  has  to  pay  spot  cash,  and  all  for  the  sake 
of  rendering  an  economic  service.  The  retailer  certainly  could  not 
get  this  same  service  by  buying  direct  from  the  manufacturer  or 
direct-selling  house. 
"  Who  kept  the  retail  druggist  posted  as  to  all  the  rapid  price 
changes  during  the  four  years  and  a  half  of  war?  advised  him 
what,  how  and  when  to  buy?  kept  him  informed  as  to  all  the  new 
government  regulations  and  rulings  that  affect  his  business,  in 
order  to  keep  him  out  of  trouble?  Was  it  the  manufacturer — or 
any  of  the  direct-selling  organizations  or  their  representatives? 
No,  it  was  through  the  wholesaler  and  his  representatives  that  he 
got  all  of  this  information. 
"And  now  when  business  conditions  are  changing  and  stock  is 
low  and  prices  declining,  the  retailer  will  have  to  lean  more  upon 
the  wholesaler  than  he  did  before  or  during  the  war  for  the  adjust- 
ment of  his  business  affairs. 
"  Statistics  show  that  it  costs  the  retail  druggist  about  35  per 
cent,  for  overhead  expense.  If  there  were  no  wholesalers  of  drugs, 
and  the  retail  druggist  had  to  buy  everything  direct  from  the  manu- 
facturer, it  would  increase  his  overhead  at  least  10  per  cent.,  which 
would  make  35  per  cent.,  on  account  of  extra  expense  for  stock 
clerks,  floor  space,  increased  stock,  depreciation,  express  and  freight 
charges,  and  many  other  items  of  expense,  which  he  does  not  have 
to  bear  in  buying  from  the  wholesaler.  The  ultimate  outcome  of 
all  this  would  be  that  the  dealer  would  have  to  raise  his  selling  price 
to  the  consumer,  as  the  average  gross  profit  for  the  retail  druggist 
is  33/^  Per  cent- 
"  The  wholesale  drug  salesman  is  the  connecting  link  between 
the  manufacturer,  wholesaler,  retailer  and  consumer.  The  whole- 
saler relies  upon  his  salesmen  to  present  his  special  lines  to  the 
retailer  and  to  adjust  difficult  matters  pertaining  to  accounts,  short- 
