the various parts of an ad. it isn't necessary that it should enclose the cut and the body matter. It usually does in newspaper ads. where the cuts are small and the space small. In nice booklets and in magazines the cut or illustration is allowed to break through the border of the ad., giving a strong effect.

When you use large space in your newspaper, the several offers in your ad. may be enclosed in a light box rule, which makes them stand out prominently, almost like separate ads. within an ad. You can have a special border made to order for your own use which will give you a border different from any of your competitors. Most newspapers carry a large variety of borders in stock and will give you the exclusive right of one or two of them. No border is needed for your street-car cards, as the wooden strips above and below and the metal strips between the cards form a border.

MARGINS. To give an ad. the proper set-up and balance, a margin of white space should extend all around the body matter. This corresponds to the white mat of a framed picture. At least a six-point margin between border and body matter should be allowed in your single-column newspaper ad. Plenty of white space should be provided for around the headlines, central display and your name, to give the proper contrast, and to separate them from the body matter and cut.

CHAPTER XXXVI.

CONDUCTING RETAIL ADVERTISING.

How To GET CUSTOMERS BY ADVERTISING.-Suppose, for instance, your sales represent the steady patronage of 160 customers, who average to spend $1.75 per week, or twentyfive cents per day. Then your daily sales will be $40. If you can secure forty new customers through advertising, your sales would be increased $10 per day. If the gross profit on your sales is thirty-three and one-third per cent., your gross

Send a Valentine

To your little playmate, your sweetheart, your teacher, your
brother or sister, your father or mother, your aunt or uncle,
your cousin, in fact to the ones you like. Valentines are not all of the
comic kind. The art valentines are as acceptable to men as to women.
It is the little tokens of attention and thoughtfulness that win friendship
and appreciation. Lend your assistance to the observance of this pret-
ty custom which originated hundreds of years ago. Our stock of Val-
entines is immense; we want you to see this pretty array of "Cupid's
Messengers" as they are sometimes called.

Fancy Valentines, 25, 35, 50c, $1.50.
Art Panels, $1.00, 1.50.

Fancy Art Folders, 15, 25, 35, 40c.
With the famous Burrick heads.

Boxes of Stickers (heart shaped) 10c box.

Red Hearts, several sizes for making valentine drops and for decora-
tions, 8 to 12c package.

Valentine Booklets, 3, 5, 10c.

Valentine Drops, 5, 15c.

Lace Valentines, 6, 8, 12, 20.

Valentine Post Gards with sachet bags attached, appropriate de-
signs and quotations, Buster Brown, Happy Hooligan and lead-
Ing comic subjects. The largest line in the city.

Valentine Novelties, over 50 designs, 5, 10, 15c.
Valentine Boxes, for candy, 5 to 50c.

Valentine Cards, Fancy Embossed Envelopes, Bob-ups, Placards
with toasts, Card Novelties. Watch the White Windows.

SPECIAL BORDER MADE TO ORDER. SPATULA OCCUPIED BROKEN SPACE AT

BOTTOM OF BORDER.

profit on this $10 increase per day would be $3.34. Assume that your percentage expense of doing business is twenty-two per cent., and to get the extra $10 increase you had to spend three per cent. for advertising, then your total expense would be twenty-five per cent., or $2.50. This sum deducted from the $3.34, your gross profit on the $10 increase, leaves 84c net profit. So the $10 increase covers all the cost of the advertising and leaves a profit of 84c. Besides this, it has secured for you forty new customers and it is safe to say that it has stimulated your 160 old customers to buy more goods, especially the leaders you advertised. If the advertising is responsible for their spending only five cents a day more, that would add $8 more to your sales, which with the $10 from the forty new customers, would assure an increase of $18 per day to your regular daily sales of $40. So you have secured through advertising forty new customers, have held your 160 old ones and developed your business from a $40 a day to a $58 a day business.

Suppose that you advertised "cheap" leaders and had secured 100 new customers, but their average expenditure was only ten cents, then your increase would only be $10, just the same as with the forty customers who average twentyfive cents at each purchase. It required less time and less help to wait on the forty customers and the increase in the sales was the same. The forty customers will be more permanent because they were attracted by "quality" advertised leaders rather than "cheap" advertised leaders. Customers attracted by cheap prices are apt to go to another pharmacy the minute its proprietor starts advertising a few low-priced specials. It should be your endeavor, then, to advertise for "quality" customers.

For instance, let us suppose that you are carrying a stock amounting to $4,500, and your gross profit averages thirty-three and one-third per cent. Then every time you sell $4,500 worth of goods you make a gross profit of $1,500. If your expenses for the year are, say $3,937.50, then it is easily seen that if it takes a year to sell your $4,500 worth

of goods, you will lose money because your yearly expense is greater by $2,437.50 than your yearly profit. Now, then, the only thing for you to do is to sell your $4,500 worth of goods several times during the year. Suppose you sell that much three and one-half times during the year, then your yearly sales will be $15,750, and your gross profit thirtythree and one-third per cent. of this, or $5,250. Deducting your expenses of $3,937.50 leaves a net profit of $1,312.50, which figure is eight and one-third per cent. of your total sales, or about twenty-nine per cent. on your capital invested in your stock. If your capital can be "turned over" four or four and one-half times a year, your gross profits will be larger.

Now you can afford to increase your expenses by buying more advertising, if it secures a more frequent turn over of your stock. The possible development of your business and your past experience will have to be brought into play to determine how much you can increase your expenses by advertising and have such increase prove profitable.

Here is one way to figure it. We will assume that your yearly expense of $3,937.50 doesn't include your advertising expense. Your net profit on your $15,750 yearly business we have seen is $1,312.50. Now, suppose that in analyzing your yearly sales you figure that it is made up like this; viz., $13,650 of it represents the trade from 150 customers with average yearly purchases of $91, which would be about twenty-five cents a day, or $1.75 per week. The remaining $2,100 you figure is transient trade. At thirty-three and onethird per cent. gross profit you would make thirty-three and one-third per cent. of $91 or $30.33% on each regular customer's yearly trade. Now, you figure that if you can secure one permanent customer through $20 worth of advertising, you will make $10.33 clear profit on this customer the first year, besides probably getting some extra transient trade or single sales brought about through the extra advertising, and the profit on your new customer for the coming year. You now assume that you can get forty steady customers in a