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good article and considerable capital back of you, business sense, and a tenacity of purpose that will not falter within two or three years. You cannot get rich quick on two or three hundred dollars. If you could, there wouldn't be white paper enough to print the ads offered the mail order publications.” A beginner should have sufficient capital-actual money in the bank-and a reasonable credit to tide him over in case he needs money temporarily.

Adaptability, as in other lines of business, is a prime requisite. A business suited to one's taste is bound to be a success eventually, and if not suited to it and the promoter cannot adapt himself to its manifold requirements, he should lose no time in changing to one in which he can put forth his full energies.

System.-The advantage of system in the mail order business is fully set forth by Sydney A. Hale, who says: “You must have system in your business, and the best is none too good. In no other business is the routine and detail so great; in no other business is a most accurate and most minute record of every transaction so essential; in no other business is a handy record so necessary. A good system is not necessarily an involved one; on the contrary, inasmuch as system consists in the elimination of labor, time and useless detail, the simplest system is the nearest approach to perfection. It is the writer's experience that no one stock system can ever prove adequate-only a system devised essentially and especially to fill your own particular needs. Whether it fills anybody else's need is not your care; unless it can fill your own needs it should be abandoned. A successful system must always be easy of access; it must be accurate; it must be complete. Money invested in perfecting a system is money saved. Don't try to start business or life without them. It is the man that has a system in both life and business that wins the battles.”

Advertising.-The vital part of a mail order business once started is the advertising. Proper mediums must be used, the ads must be well worded, displayed, and placed; advertising effort must be continuous.

Promptness in Delivery.-Goods advertised should

be forwarded the buyer as soon as possible; there should be no waiting on account goods being out of stock or not yet delivered from the manufacturer.

Neatness.-Many beginners and even some established firms underrate neatness in putting out goods. Goods neatly labeled, mailed in a compact package carefully done up, appeal to the recipient at once.

Originality.--Originality in business methods and personality in conducting a business are always at a premium, and will go a long way toward bringing success in selling by mail.

FIRE INSURANCE ADJUSTMENTS In Case of Loss.—The ordinary business does not suffer from loss by fire more than once or twice in a lifetime. When a loss comes, he should be prepared to see that he obtains every cent rightfully due him. While it is an acknowledged fact that more losses are overpaid than underpaid, in case of a small loss it is probably as satisfactory a way to trust entirely to the fairness of the adjuster. In case of a large or total loss, if the insured shows that he fully comprehends how the amount of his loss is being determined, he will not fail to receive better consideration at the hands of the company's representative. If not satisfied with a loss, as adjusted, it is best to let it go to arbitration.

Rules for Determining Property Loss.-The following rules and formulas are those used by adjusters in ascertaining the extent of a loss on stocks or personal property, and show the methods adopted by them in such cases. There is nothing new about them, and they are perfectly familiar to everybody, and are to be found in any arithmetic used in the common schools in our land. Every school boy has learned them, but their application to the adjustment of losses may be something that those who may not have had experience in this particular line of business will find of assistance. It should be remembered that cost to the assured is the basis of the loss sustained, but not necessarily the measure of the damage or loss; this may be more or less according to the circumstances surrounding each

case, and is undoubtedly affected by depreciation or increased value.

Value of Property.–The question of values was formerly one that perplexed even the most expert adjusters, and many complications have, in former years, arisen because of the difference of opinions relative to the value of merchandise in various or different hands; but for many years the rule has prevailed, and common custom may be said to have regulated this matter, until at the present time it is generally conceded by all that the question of value depends materially and almost entirely upon the business of the party in whose possession the merchandise is found. The insurance contract contemplates only indemnifying a party in case of fire against absolute loss, and the cost to him is the basis of the estimate of the loss. In the case of a manufacturer the basis of the estimate would be the cost of production. If the merchandise is in the hands of a wholesale dealer, then the basis of the estimate would be the price paid the manufacturer. If the merchandise is in the hands of a retail dealer then the value would be increased, and the basis of the estimate would be the price paid the wholesale dealer. The same merchandise in the hands of the consumer would be enhanced in value, and the basis of the estimate would be the retail dealer's price.

It will therefore be observed that the same merchandise in various hands has different values, and in dealing with the various losses that it may have four values, according to the business the party is engaged in who has sustained a loss, viz.: manufacturers, wholesale dealers, retail dealers and consumers.

Definition of Terms.—The following terms are used in adjustment calculations and are here defined for easy reference: gross cost. The entire cost of merchandise, including

all expenses, etc. net cost. The entire cost of merchandise after all de

ductions are made. gross purchases. The amount of merchandise pur

chased at gross cost.

.net purchases. The amount of merchandise purchased

excluding freights, etc. gross stock. The amount of merchandise on hand, val.

ued at gross cost. net stock. The amount of merchandise on hand, valued

at net cost. gross sales. The amount of merchandise sold. gross inventory. The amount of merchandise invoiced

at gross cost. net inventory. The amount of merchandise invoiced at

net cost. expense account. All expenditures incident to the busi

ness. gross profit. The entire excess of pecuniary value re

ceived from the sale of merchandise, over its cost. net profit. The excess of pecuniary value received from

the sale of merchandise over its cost, less all ex

penditures. loss. The difference between the gross cost and the

prices received.

Purchases, less net sales, are equal to the stock on hand.

Purchases, less stock on hand, are equal to the net sales.

Purchases, less present inventory, added to the gross profit, are equal to the gross sales.

Net sales, and stock on hand, are equal to the amount of net purchases.

Net sales, added to the gross profit, are equal to the amount of gross sales.

Gross sales, less gross profit, are equal to the amount of net sales.

Gross sales, less gross profit, added to present inventory, are equal to the amount of purchases.

To Ascertain Cost.—When the amount of gross sales and rate per cent of gross profit are given, then to ascertain cost:

Rule.-Divide the amount of sales by 1 (one dollar), plus the rate per cent of profit, and the quotient will be the net cost (this is simply the old rule to ascertain present value); or the sarne result may be obtained by dividing the amount of sales by the aliquot part of one

hundred representing the per cent of profit, and the quotient will be the net cost. If the goods are sold at a loss, then to ascertain cost, divide the amount of sales by 1 (one dollar), less the per cent of loss, and the quotient will be the net cost; or from gross sales, deduct gross profits and the remainder will be the net cost.

To Ascertain Purchases.-When the amount of gross sales, rate per cent of gross profit, and net inventory are given, to ascertain amount of purchases:

Rule.--Divide the amount of sales by 1 (one dollar), plus the rate per cent of profit, and the quotient will be the amount of net sales (this is the old rule for ascertaining present value). Add net sales to the inventory, and the sum will be net purchases.

To Ascertain Stock.-When the amount of gross sales, net purchases, and rate per cent of profit are given, then to ascertain the amount of stock on hand:

Rule.—Divide the amount of sales by 1 (one dollar), plus the rate per cent of profit, and the quotient will be the net sales. Now, subtract the amount of net sales from the net purchases, and the remainder will be net stock.

To Ascertain Present Value.- When the gross amount of sales and per cent of profit are given, then to ascertain net sales or present value:

Rule.—Divide the value stated by 1 (one dollar), plus the rate per cent of profit, and the quotient will be present value or the net amount of sales.

Note.—You can never arrive at the correct present value or the amount of net sales by multiplying the gross sales by the rate per cent of profit, and deducting this product from gross sales.

To Ascertain Sales.-When net purchases, rate per cent of gross profit, and net inventory are given, to ascertain gross sales:

Rule.-From purchases deduct inventory, the differ. ence will be net sales. Multiply net sales by the rate per cent of profit, the product will be profit in dollars and cents, which added to net sales, will give the gross sales.

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