Evening Star Newspaper, December 30, 1923, Page 52

Of Cutting Costs of Selling| — Complaints Are Coming From Every- Values Seen as One Cause for Losses. BY WILLIAM ULLMAN. With auto dealers everywhere com- plaining’ of meager profits, with the expense of doing any kind of busl- nass constantly mounting, and with competition encouraging many new varieties of economic waste, it is time for the car owner to appreciate what the high cbst of selling automobiles means to him Automobile dealers’ association: cluding the national organization, ¢ taking up the question of selling st for scrious consideration, fol- Jowing the news that the net retail profits on the sale of motor cars have averaged only slightly better than 2 per cent for the entire country While this is primarily a problem, -it is contended that the dealers’ loss of legitimate profit is reflected In the cost of buying cars through various indirect channe! For instance, the low trade-in values on used cars are a result of sclling waste quite as much as mar- ket conditions. The automobile deal- trade reached a y af- ing a sale that he has point where he cannot po: “ford to take any more loss accepted as part payment Selling Costs Too High. Putting it another way econpomists point out that much of the loss taken hy car owners when trading in could he eliminated if the selling expenses could be lowered and the savings ap- A to the allowance on the old car. unnecessary expenses involved n 1ling ne cars are lost so far as the motorist and the dealer are con- cerned. Afternoon spins in cars one hasn't the slightest idea of purchas- ing. long-winded conferences with salesmen who have appointments with live prospects and demands for xurious automobile salesrooms e no good purpose. They benefit her motorist nor dealer, and thus represent a useless expense that has 10 be met by somebodyv Until recently the dealer ered this loss. but he has discovered that. heing squeezed with used car losses at the same time. it is neces- sary to call a halt. Having absorbed all the loss he can reasonably be pected to take, and more, he must pass the remainder of it back to the car buver through the handling of the used car transaction. This process is already in full swing, according to those who see a uld- need for more economical buving and | selling. And it is predicted that the more waste the motorist encourages the more dificult will it be for him to continue to motor economically. Apportionment of penses. paper read before a bankers' 'n a typical apportionment xpense showed that seven- s ry dollar taken n through his accounting depart- nent went for the purchase of ve- hicles from the fwctory which are pajd for spot cash. Approximately eight cents went for administrative ex-| hense which could not be cut during slack periods, since a sales organiza- tion to be effective must be kept in- tact. Sales expense took approxi- mately thirteen additional —cents, leaving a net profit of 4 per cent if the dealer had a successful season. This is rather startling in view of tha fact that the gross profit on the sale of an average priced car repre- sonts a tidy sum. it is largely because the facts are known that a condition now where there are almost as v dealers handling 10 per cent utomobiles manufactured as are dealers handling 80 per 2t of them. These newcomers in hile row soon learn that there i8 a wide margin of grief between he commission and the actual profit. f any. But in the meantime they offer such serious competition to the established dealer, and make such e travagant allowances on used c that all the dealers are largely ai teeted. 1t is contended that if car owners would give more consideration to he dealer’s problem there would be far less extravagance in the buying and eelling of cars and a better deal for the motorist in the long run. The truth of this has been pretty well demonstrated to many motorists who, paying no heed to this warping. ave inadvertently aided in® the pankruptey of their local dealers. vith the attendant annoyances and loss due to lack of service and rep- resentation. Gre conomic Waste. The demand of the motorist for a constant @ line of models means a great, eco- nomic waste, which must be absorbed at_various points along the line. Ten to twenty worth of motor cars standing idle in a dealer's salesroom, and this condi- tion duplicated by twenty or thirty other dealers in the same territory, ties up working capital. Interest, depreciation and insur- surance d to the cost. cutting down the net profit and forcing the dealer to_go easy on the trade-ins. Even where he has been forced to abolish trade-ins his excessive sell- ing costs render it virtually impo: sible to offer the customer a satis factory service for disposipg of the old car. It requires money to handle used car problems with any degree of satisfaction, but one problem cannot be successfully solved with tie losses of another. i The demand for immediate deliv- ~ries adds considerably to the cost ¢ smelling cars, since they must be warehoused by the dealer and in- sured throughout the winter months. A little more forethought in select- ing cars, 1t is pointed out, would ender i unnecessary to carry these cars at a loss, and would result in ~nabling dealers to improve othe more important forms of servis which they would otherwise be in a yosition to offer. How Buyer Can Help. Instead of suddenly deciding that he must have a new car_the motorist is encouraged to place his order for delivery at the time when' he knows he will need the car. It is furthel more shown that the national ad- vertising employed by the motor car nanufacturers is making it'less im- portant for the prospective buyer to see the particular model he is inter- ested in. Naturally he desires to inspect the chassis in detail and have a2 demonstration in the machine, but features ' of color, upholstery and seating capacity may be considered from catalogues and other descrip- tive matter. A a matter of fact there are many who contend thgt almost dvery mo- torist makes up his mind what car | he is going to buy before he visits the various salesrooms, particularly where he knows that the dealers are standing together in a determination to avoid the folly of making extrava- want and illogical allowances on used cars. Thus, to a very large extent, the «laborate salesroom and the many other expensive detalls of selling play no true part in the sale of the car. The vesult is needless expense and a weakening of dealer organisa- tion which may eventually leave the car owner caught without local rep. resentation for the car he drives. Every dealer likes to have the pub. lic take demonstration for he I eager {o prove the value of fa forced to spend so much mak- ! play of, the dealer's full | thousand _dollars’ | his offering. But there is a happy medium, - And when a motorist knows that he is going to place an order for a 3500 car and then con- sumes salesmen’s time taking dem- onstration in ten other makes he is not playing fatr with himself. He will pay the penalty in the end. Witness: Suppose the dealers de- manded increased commisaions? Whe would lose on the increase in the | st price of the cars affected? i (Copyright, 1923.) REPEAL OF TAXES | Clancy Says Cars Are Wrongly Classed as Lux- ] uries by Lawmakers. “The war excise taxes on automo- biles. motor trucks, accessories and spare parts are so-called luxury taxes, stigma or unisance taxes’ sald Robert H. Clancy, member of Congress from the city of Detroit, in an address broadcast over WRC for the American Automobile Assoctation, the other night. Representative Clancy has introduced a bill in Con- gress tor the repeal of the excise war tax on motor ~vehicles and acces- | sortes. “But the auto truck, which is an railroads of the expensive short haul, is atil]l taxed, although the railroad war excise tax was killed shortly after the war” sald Mr. Clancy. “More than a million tons of freight were moved by motor trucks on state highways in Connecticut in a period of three months during 1932 The auto truck tax is absolutely inde- fensible from any fair, scientific tax standpoint. The amount of revenue raised is small—$10,678.761 for the las fiscal year, closing June 30, 1923. Hits Farmer Hardent. | “The tax on spare parts hits the | farmer hardest. for he has the worst i roads, is farthest away from service !stations and is the biggest user of lcars. It is a penalty on the man who | has a breakdown. who breaks an axle or ruins a tire. ! and should be repealed. |"“The tax on automobiles by the purchaser of the car manutacturer merely 3 exclse tax to the consumers’ purchase price. There are over 13,000,000 car users who are interested In_ having this tax killed. It would decrease the cost of their cars by & per cent.” Taxes on Motorist. Mr. Clancy recounted the various taxes which are piled on the mo- torists. “Farmer legislatures have singled out the auto and accessories for their fury because often they blindly imagined that they were striking at the hated city dweller." sald Mr. Clancy. “They do not un s paid The derstand that the auto is even more | of a necessity for the ruralite than the cityite—that it brings to their doors the blessings of modern civili- zation_and makes life on the farm ! more bearable.” In view of the fact that 52.000.000 Americans_are directly paying these taxes on the basis of an estimate of four members of a family to each automobile, Mr. Clancy urges that every automobile owner use his,in fluence to have these taxes repealed. “The tax framing committees of Con- gress,” sald Mr. Clancy, “admit these taxes are of an unusual nature, that they should be killed as s00n as pos- sible. It is just a question of getting around to it and of having the matter properly presented to the membe of Congress by the motorists of th country. . {AUTO STUDENTS ADVISED i ON ENGINE LUBRICATION 0il in Base Should Be Changed Every 350 Miles for First Thousand. “Lubrication of the automobile engine is a very important factor to its suc- cessful operation,” says E. A. Drumm, principal of the Y. M. C. A. Auto School. A new car should never be driven over twenty to twenty-five miles per hour for the first thousand miles. The ofl in the engine base should be changed every three hundred and fifty miles for the first thousand and every five hundred miles there. after. This will insure proper lubrica tlon to the moving parts and permit smooth surface polish. ‘Grank casé dilution of the ofl is one of the problems the car owner must look after, especially in cold weather. This {s caused by excessive use of the carburetor choke and the exposure of too much radlating surface to the cold air. A radiator cover with adjustable flaps or an adjustable shutter will tend 1o keep ‘the temperature of the water In the cooling system up to normal. This will eliminate the use of the choke while running and will prevent as far as possible the dilution of the oil film on the cylinder walls and piston rings. “Lack of attention to the oiling sys- tem will cause cxcessive cylinder wall, piston and ring wear. as well as bear- ng trouble. "Motto—It's cheaper to buy the grade of cylinder oil recommended by the manufacturer than new parts and la- MOTOR CARS DIG WELLS, PUMP WATER AND CUT HAY Popular Science Monthly De- scribes the Channels in Which Autos May Be Employed. 0dd_uses to which motor, cars may be put are deacribed in the January issue of Popular Science Monthly J. M. Schofleld of Stockton. Calif., uses a small touring car to help him dig wells. ' On the way to_and from jobs his car pulls a four-wheel trailer loaded with more than-a ton of digging tools. Ingenious appli- ances which he has attached to his motor enable him to use it as a sta- }lomn‘ Qn[ln:, !filrlluch :ork la‘ ra ng derricks, drilling and pumping. W Teo of Broskiyn, N. ¥ his car to prevent the water supply at his country place from running short. He ralses the rear end of the oar, removes & tire, slips a belt over e e e e mk s Samuel D. Lamis of Hannibal, N. ¥. uses his oar toihaul a mowing ma: chine when the time comes to cut hay en his farm. 5 | auxfliary of railroads and reiieves the | It is & nuisance tax adds the war ON AUTOSLRGED | t * FIGHTS ACCIENTS {National Auto Chamber of i. Commerce Safety Plans for Year Announced. Unlimited effort will be | by the automobile industry to reduce traffic accidents during the,coming year. The traffic planning and safety com- mittes of the National Automobile Chamber of Commerce announces that as a result of its meeting held Detroit last week a program has i been formulated for 1924 which prom- ses to reduce highway accidents in {the next twelve months. The automobile chamber has been lactive in the safety movement for a number of years, particularly in call- ing for punishment of the reckless tmotorist, and_constructtvely in en- couraging safety education in the | schools. The present committee alms to am- ify this work and to carry on a mprehensive program which will attack the various causes of acci- dents. . ! Plan Nationnl Remearch. The first step of the committee is {the planning of a natiom-wide re- search to determine what are the major causes. When these are deter- mined vigorous effort will be made toward the adoption of remedies. The industry has a deep interest in \the safe and efficient operation of motor _transportation. Tt believes | that through research and public in- { terest highway casualties can be con- siderably reduced and the regulation of traffic more effectively managed. This program will not attempt to | compete With or supersede constructive | safety work now being underiaken by | various competent agencies. The traffic planning and safety com- { mittee of the National { Chamber of Commerce conaists of ! George M. Graham, chairman; Alvan { Macauley, Edward S. Jordan, George H. B. C. Hardy and Jobn C. Ip i REAR CAR SEES DEFECTS. Motorist Can Learn Much From Driver Behind Him. ‘The path behind vour car is not the closed book you imagine it to be. In your wake one finds much that can e construed as a warning of trouble or expense you are going to suffer sooner or later. Only those behind you can note the wobbly hind wheels of your car, the flat tires and the stiff springs. The man behind observes the smoke from your exhaust, a condition which may be an indication of too rich a car- huretor mixtura or &n engine that {has begun to pump ol He is the one who notices your habit of spin- }ning the wheels when you apply the brakes. At night he is the man who notices the sparks shooting from thg exhaust—an {ndication of a_carbon® choked motor. And he is the party who smells the burning brakes. inl Automabile | Five Sizes for L Y- MflmR INDUSTRY ‘Balloon Tire Makers Select All Auto Types !Policy Aims to Prevent Complication ! by Addition of Too Many | New Designs. | AKRON, Ohio, December 29.—That ifive sizes of balloon tires will effec- | xpended | tizely meet the needs of the entire |y automotive industry is the conclus- | sion of Rubber Association executives who have been studying the problem during the past season. As offictals of the Goodyear Tire and | Rubber Company point out, it was| | early realized the introduction of bal- | loon tires will complicate the line of | tire sizes, already rather large, 0 an | {effort has been,made to limit produc- jtion of the new type to the fewest | {number of sizes that will adequately | |different sized automobiles. The Rubber Association now rec- comends to members that standardi- zation on these flve sizes be definitaly |adopted for their tuture production. The two smaller sizes, according to this plan, will be bulit to fit a twenty- | one-inch ‘wheel only. The six-inch bal- | Joon tire is designed to fit either a twenty or twenty-one-inch diameter whedl, while the seven-inch tire is bufft ‘to fit ‘a twenty-one-inch dia- meter wheel only. " i Use New | Symbols. | “Give me & four-forty twenty-one.” may become a common request of small car owners to dealers when bai- loon tires become popular, bacause these new type tires are to be desig- nated by different symbols'than are uged in labeling the regular type of tires now In use. And when a custo- | mer anks'for a 4.40-21 he will get a | jtire that takes the place of the pres- jent 30x3% size used on Fords and {others of ‘the lighter car cla | The first two figures of the balloon {tire size. by way of explanation. rep- resent the size of the tire in decimals of an inch, and the figure back of the | diagonal dividing line gives the dia- | meter of the wheel and run designed o fit this size. In other words, @ | 4.40-21 valloon tire is @ 4.4-inch eross- | jmection dlameter tire for a 3l-inch | |diameter wheel and a 3%-inch rim. | { Months of experimentation and care- | ful consideration for the preference of varfous car manufacturers h: re- Solved the balloon tire question down to the five following designated sizes: 4.40-21, 5.35-21, 6.20-21, 6.20-20 and 7.30-20. The new designation of sizes has been selected to avoid confusion with regulation tires now in _use. The balloon sizes, expressed in_terms of inches, as in the cass with all tires at present, would be in the order giv- ove: 2934, 31x5, 83x6, 32x6 and Ways of Replacemen: How will these balloon tires replace tire equipment in use at present? The popular 30x3% size used on Fords and the smaller cars will be replaced by 4.40-21 balloons, while the 5.25-21 |take care of the requirements of [y overloading and underinfiation. short- ening the life of the tire. just the me as with ordinary tires, Good- ar tire engincers point out. And 30 they have prepared the following table of air pressures for the various sizes of balloon tires. together wtih a maximum load that may in safety be carried by the tires. Overloading and underinflation ruin balloon tires just as easily as they will regular tires, So that the recommendations of the chart be strictly followed for the best mileage results. Load and Inflation Facts. Load and inflation table for balloon tires: Pouads infiation. 26 1.200 5 1300 17400 500 1800 1.700 1.800 1,900 32 u 36 “ aderscored Sgures indicate mosc desirable | load and Inflation for each size. Tire enginecrs and automotive ex- perts are pretty generally agreed that | the balloon tire has a definite future. And present indications are that these better cushioning tires, wi larger volume of air insuring easler riding, will be furnished as optional equipment by a number of the lead- ing automobile manufacturers in 1924. | 1t 1s also rather certainly indfcated in | tire circles that a great many pur chasers of new cars are ready to pay Rudiators and Fenders 10 DIFFERENT MAKES RADIATORS ANY KIND MADE OR REPAIRED. Cores installed in any make WITTSTATT'S R. and F. WORKS 319 13th. F. 6410. 1425 P. ’ T443, D - WHOLESALE AND RETAIL RIMS FOR ALL CARS SERVICE . TIRE CO. FOR WINDSHIELDS OR BODIES. Iastalled While You Wi Taranto & Wasman replaces any four-inch tire and the 41c-inch tires now in use may be re- placed by either the 6.30-20, or the 6.20-21. ' Regular five-inch tires will become 7.30-21, in the balloon type. Though balloon tires permit the car owner to carry less air pressure in b8 equipment, there 1s the danger of Washington’s Newest Daylight Garage Our List of Pleased Patrons Grows Daily Convenience of location, unusual facilities, exceptional service and 1 Car storage at very courteouts, careful atten- tion to all details are daily adding to our large _list of satisfied customers. moderate rates—inspec- tion enitails no obligation whatever. 'L Street Garage 1705 L St. N.W." D. M. Gordon, Mgr. Fr.9462 : Controllad by the Galliher-Walkr Invezemens Corp. The correct gear lubrica. tion made specially for the transmission and differen- tial gears (rear axles) of your motor car-or truck. EBONITE takes the vu:::‘r‘ as it b:mmle-. no congealing, or up like grease. The transmis- sion or differential gears are t:::uaod by a film of oil insures long life. Sold by reliahle denlers in fivepound cans and .at appointed mervice wtations where you ree the checker- bozrd design pump = and i service rtation sign - "EBONITE Has No Rival— There Is No Substitute. s D Ol with their | adaitional prices if necessary to get this easier riding equipment It is expected that the New York and Chicago automobile shows in { January will feature balloon-tire | equipped machines, and Goodyear en- &ineers predict it is not unlikely that { most_automobile factories in the fu- | ture will honor specifications for the | balloon tire at an extra charge. WHY THE CAR ROCKS. Service Brake Operates on Band at Forward End of Shaft. When & car seems to rock a littls |after it has stopped it simply means | that the service brake operates on a band attached to the forward end of ellor shaft instead of at the Some cars have their i y brakes in this position: a few use this method for the service | brake. The rocking after the car has stopped is simply the result of Uplay” or back-lash in the pinion and dif- ferential gears. # The idea of using this method of | braking is to simplity the brake as- | sembly, care and adjustment, and to | equalize the braking effact on the rear wheels minimizing skid- lding. thus Auto Buyers to Reap Benefit Of New Sales and Service Plans Waiting Uniil Spring to Purchase Shown to Be Uneconomic Policy, Trade Association Asserts. Local iiotorists are to enjoy the advanta: es of many conspicuous im- provem:nts in sales and service of card during the coming spring sea- s0n, according to a statement just is- sued by the Washington Automotive Trade Association. “A year of intensive study of meth- ods for the improvement of trade conditions, s well ks those directly affecting the car owner, has resulted in putting loéal automobile dealers in a position to help the motorist solve many a knotty problem,” the state- ment says. ' “Co-operation of dealers has served to eliminate many time- honored evils and the car owner is bound to see the results of this as the new year develops.” The Washington Automotive Trade Association, said to be one of the largest automobile trade organiza- tions in_the country, reversed the usual order of things by first taking up the problems of local motorists for consideration, rather than start- ing with internal problems peculiar to the trade itself, it is pointed out. The result, according to the various committees appointed to investigate owner problems, has been to reveal the fact that solutions to owner prob- lems are the basis of soluti: trade problems. g Cites Used Car Probiem. “This was clearly demonstrated in the instance of the local used car problem,” the statement continues. “The used car committee discovered that the local motorist who planned to wait until spring to buy a used car was overlooking an economic feature of buying. An investigation showed that if he ‘walted until spring he would pay more for a car which somebody else had enjoved through- out the winter. This situation was presented to the local motorist, with the result that, being a motorist problem, the local dealers found that their stocks of used cars were soon greatly reduced. It was a case of looking for a cause, removing it and automatically solving those problems {hat ‘were indirectly thriving upon Through this plap the W. A. T. A. announces that it is in a position to offer the following improvements in_ local automotive conditions throughout the mew year: “Because used car stocks are being reduced through the winter, owing to & growing recognition of the foliy | of storing transportation. virtually every local dealer will be in a better position to handle the fresh crop of i used car offerings made by motorists | WHo want to trade in for new cars tin the spring. ! Dealers in Stronx Position. | “Through organization and co-op- jeration, and the dealer problems, { which guch co-operation has solved or minimized. local dealers are in a particularly strong financial position, which is assurance of stronger rep- resentation. The motorist can buy almost any make of car in good standing, knowing that the local dealer is firmly entrenched. “One of the first matters taken up by the association \vas the fact that the fallure of a dealer not only rep- resented a direct loss to those who had bought his cars, but shook the motorist’s confidence in all dealers. The ‘public wants assurance that its merchants are dependable because they are established, and the auto- motive merchants are no excepti the rule, “The matter of salesmanship wa @lso considered from the car own er's angle. A number of motorist« were interviewed with an idea ascertaining what methods of wales approach were most agreeable to th. average man or woman. Tt wa recognized that the day of dunning the prospect and pestering him wit phone calls has passed, but ther. were other features of selling whi had to be looked into. Raise Selling Standards. | “This investigation has been made available to every member of the W. A. T. A, so that each might be able to take up the matter with h selling force. A number of rad changes have been made with a v to ralsing the standard of automo bile salesmanship so that the pu Wil be able to obtain a sales ser ce. “In other words., if vou are loo ing for a car, your needs will bhe carefully analyzed by whatever sales man you come in contact with, and no effort will be made by the pro gressive organizations to sell you a car which s unsuited to your neads as this forced selling-is now knowr to destroy confidence in tha dealer and often reflects upon the make o car_involved. “The improvements in mechanica service are already well known to 1o cal motorists. Th educational 0 gram, both for dealers and motorist has clearly demonstrated the need f a sound business basis for mervice “The new plaus in force througho the city are serving to cut operating costs and prolong the useful lives the cars in servios. In addition, the are enabling dealers to get out of 1] rut of viewing the service end of 1! yurflness as a necessary evil and 4 oss. Why Improvement Comex. “When a merchant begins to hope of profit from a department his busipess he promptly gives it . attentiofi, whereupon it reveals those improvements which benefit all cou cerned. “Finally, the association is carrying on a campaign to improve traffic cor ditions, as well ‘as offer immediato remedies for many of the problen which the motorist is forced to con tend with. “The committes in chargs of this work reports that, in spite of the clamoring of motorists for better co ditions, many authorities interviewed by the association’s members advies that this is one of the first definite a tempts to bring certain problems to « focus. There have been complaints but no organized complaint of . account, and. therefore, no constr tive criticism of existing ronditions pt o Ve i iy ! HOT ENGINE AIDS START. Always do_vour hard work v the engine while it is hot and lea the casy jobs for the car when the power plant is cold. This means tha the car should always be left in suc) a position that it can be moved wit least effort. " if. for instance the m. torist leaves the car on a hill b should head it downward: it's easin for the motor when he starts off again. In snow, mud, or decp sanu make a little track for the car to pu out while the engine is warm: later when you start off again, the engine will have less to do and is far less Iikely to burn out a bearing. ____——————.—————.—_,_ 1 Dopce BROTHERS MOTOR CAR Valuc so pronounced that you are justified in looking upon the purchase of a Dodge Brothers Motor Car as the soundest possible investment in transportation. Not a dollar is added to the purchase price to support a free service policy; nor to cover the costliness of numerous body or chassis types; nor to pay interest on bor- rowed money; nor to maintain a multiple organization of middlemen. Dodge Brothers finnnoe'thmelm They sell directly through a single organization of dealers to you. They do not believe in charging in advance for service you may never need. They have developed re- markable economies, and a time-seasoned product, by concentrating on standard types. These facts are reflected, not only in the price of the Car, but in the quality of workmanship and materials that enter into ts construction. SEMMES MOTOR COMPANY 8 Dupont Circle 613 G St. NW.