The Independent-News, Volume 86, Number 38, Walkerton, St. Joseph County, 20 September 1962 — Page 16

16

- THE INDEPENDENT-NEWS — Sept. 20, 1962

Wells President For Magazine Writes Article (Cont'd iron page 1 1 t i fill hi" l‘n»' . u er< as<- in capacity. Im mils’, proselyte some ot his competitojs' customer*. To do this, he is fd ■ 1 to cut prices. At fii-t he lowers them only to the b ew amiiiis u-mh he is atumpting to woo but then his old eustomers find that lie has hotter prices and Whammo! H. s had n. All of <i more than the savings cffe< ted in a wide! dispersal of costs is forfeited in a reduced a >vi age pi ice. Although we may realize a record sales volume in 1962. we will, ar. aiding to a national publication, have used slightly less than one-half of our total extrusion capacity based on a three-shift six day operation. Notwithstanding this advers, ratio of demad to supply a survey by one of our industry's best known publications shows that one-third of the extniders questioned, were planning to add new presses. Now. although 1962's extrusion produ< tion will be something less ‘ear. on. -half of a capacity, based on three-shi’t six day operations, the extruder" are working (lose to an average of two shifts five davs This is a pretty good average. but alas, few extruders beh‘ ve that they can make money while working on two shifts. If we c nsider that a two-shift - five-dav operation provides reasonable pr-.duction. then we must look to other areas to find the causes for diminishing profits. It would appear logical to examine tnen. the areas of cost and pricing. Certainly no one at al! familiar BARGAIN CENTER Koontz Lake Hours Sun. & Mon. 10-6 Tues. - Wed. - Thur. Fi i. & Sat. 9 -7 STOP IN! YOU CAN’T AFFORD NOT TO. Jim & Marge Money 5t527

WALKERTON LIVESTOCK SALE 14 Mile North of Walkerton, on Rd. 23 Walkerton Livestock Commission Sales SALE EVERY TVESDAY STARTING PROMPTLY AT 5 P. M. For a good market and a square deal where each consignment large or small is given our complete attention. This Week Found Another Large Sale And A Good Active Market On All Classes. The ( alt .Market About Steady With A Top Os 40.50 pd Fbr A 215 lb Gur. 38.50 pd For A 235 lb White. S3B For A 200 lb Gur. $37 For A 145 lb Hol With A Lot Os ( ahes Selling $35 To $37. An Extra Large Run Os Hogs With A Top Os 19.50 pd Foi 11 hd Os 195 lb Hogs. (This Com. To An Extreme Chicago Top Os 19.50) 19.30 pd For 5 Hd Os 230 lb Hogs. 19.30 For I Hd Os 222 lb Hogs. 19.30 For 9 Hd Os 207 lb Hogs. 19.20 For 37 Hd Os 208 lb Hogs With The Bulk Os The Good Hogs Selling sl9 To 19.30 A lop On Sows Os 17.80 With The Real Heavy Sows Selling sls To sl6. The Bull Market Steadv With A Top Os 20.80 pd For , A 1 155 lb Blk. 20.60 For A 1015 lb Blk. S2O For A 1565 lb Hol. IM Hd Os Fat Cattle With A Top Os 28.30 Pd For A , 1105 lb WF Sti. 26.90 For A 1125 lb WF Sir. 26.90 For A 1120 lb W F Str. 26.80 For All 10 lb WF Str. With A / Lot Ol St 1^ Selling $26 To 26.50. ' A lop On Heifers Os 26.50 With A Lot Os Heifers , Selling $25 To 26.50. | Ih< (ou M irk< t \b iut Steady W ith A Top Os 17.20 pd Foi \ 9< 0 lb Hol. 16.90 For \ 1010 lb Hol. 16.60 For A 1505 lb Hol. 16 50 For A 1390 lb Hol. 16.30 For A 15 I ( lb Hol. Wit h Ihe ( anner & ( utters Selling sl2 To sls. NOTH E— Don’t Forget To Contact Is T« Help You W ith > our 1 eedei ( attle Seeds. For Information Call: Don Swanson. Phone Walkerton 586 3663 Les Parrett, Ph mouth, WE 6-27>4, Managers Joe Pence Nelson I/ehman Auctioneer Clerk

with the extrusion industry, can deny that there appears to be no rhyme or reason to today’s extrusion pru ing. Too few extruders r< ally know and understand their costs and on quoting in a competitive mmket. will adjust his price t this competitor's quotation, the thinking (" i seems to be "If he । the compel itor l can make it for that, so can 1. etc., etc." Workshop Program Since it would not only be illegal. but impractical and most unreliabh to seek away to curtail pi ice cutting, special terms and gimmicks. the Aluminum Extruders Council has embarked on an ambitious program for developing a simplified and standardized costing system. Smh a system would alert the extruder to leaks and p rasites in his manufacturing operatic n. The directors of Aluminum Extrudeis Council believe that no one will knowingly sell below cost and therefore. such a program could bt ing about price stability and restore th( industry to a healthy condition. This program will be presented through the Coun. il’s "area workshops" beginning early this fall. One of the specific items which will come under study, for instance. is the cost of making short-run extrusions. A few years ago extrud.-rs would not considei grouping one shape with another. Then, as the industry swung from a seller’s tn a buyer's market and without fully studying the effect on costs, one major extruder offered to group items of different shapes, providing there was a minimum run of two thousand pounds per item. This was the break-through which quickly led to complete deterioration of cos* and price stability Costs and Pricing As part of the analysis on this phase of costing, one of the Council members took a cross-section of some five hundred dies, and studied the cost of every run of every die in this group made during the period of a year. The results were very revealing in that the extruder found, that with only one exception, had he failed to make a profit on single runs of five thousand pounds or more. Neither had he made money on single runs of less than one thousand pounds. There were intermediate cost breaks at the two-

thousand and three thousand pound levels. In pursuing this study, he learned that it was not ne< essary to increase his customer's overall extrusion cost, but by working closely With the customer’s purchasing department a' tual savings could be realized. This is not only performing valuable service to the customer, but by reflecting the increased costs of shorter runs into the customer's price schedule, he assured himself of a profit on every run Notwithstanding the savings which can be offered through such analyses and the price revisions which may result, many customers will insist on receiving the benefits of the cost reductions on five-thousand pound runs, but will balk at paying quantity extras on single runs of less than two thousand or three thousand pounds. The extruders who have nothing more to sell than price, may have to go along with the customer or perhaps had better not present such a plan in the first place. I believe the more serious weakness of the extrusion Industry is the salesmen's inability to sell. Too many of them believe that if they can ferret out the going price and then better it. they have done a selling job. I sually this only results in a series of retaliatory actions among competitors, with the en'i result that no one's busin< ss has been im leased; to the contrary, price and profits have been further deteriorated. We need blight, imaginative sales representation which can convince the prospect or customer that his company does have something to sell; who can perform and render valuable services. The extrusion business is a facsinating one; possibly too much so. for it seems to have attracted too many suitors. It is composed of enterprising people, some of whose zeal for "big business" has clouded their sense of practicalbusiness reasoning. But, those who have pioneered the tremendous job in product and market development. will again pioneer toward a profitable and stable industry, and the forces of irresponsibility and folly will not prevail against them. YELLOW BANK There were 318 in the church services Sunday at the Pine Creek Church of the Brethren. Sunday afternoon guests of Mr. and Mrs Orby Baughman were Mr. and Mrs. .John Schmeltz. of Rolling Prairie Mr and Mis Fred Koller, of Buchanan. Michigan; Cleo Sheneman and Mr. and Mrs. Melvin Baughman. Thursday dinner guests of Mr. and Mrs Dwight Harbaugh were Mr. and Mrs. Cden Goon, or Warsaw, were dinner guests Sunday of Mrs. Dorothy Culp and grandma Goon. ter, Mr. and Mrs. Arthur Kaser, in LaPaz Sunday afternoon. They also called on Mrs. Della Marks in LaPaz Sunday dinner guests of Mr. and Mrs. Roy Freeman and family, were Mr and Mrs. Dwight Hoover and family, of Goshen; Mr. and Mrs. Buell Wheeler and family, of Plymouth; Mr. and Mrs. Dale /mypop bought paqt OF] I that Wing FOR tug /Ji /AiO FOQCE WHEN HE (bought a us. SAVINGS bomdl

Hoover and family, of near Tyner; Mrs. Iva Freeman, of Walkerton; Mrs. Jess Doan, Cassopolis, Mich.; Mrs. Hazel Hoover. Teegarden, and Miss Nancy May. Mr. and Mrs. Orville Schmeltz and family, of Walkerton, spent Sunday evening with Mr. and Mrs. Orby Baughman. Richard Baughman, of Manchester College, spent the week end with his parents. Mr. and Mrs. Robert Baughman and family. Mr. and Mrs. Cap Eley, of Argos, and Mr. and Mrs. Roger Hartsough and son, South Bend, were dinner guests Sunday of Mr, and Mrs. Ivan Hartsough. Mr. and Mrs. Marvin Clark, of North Liberty. Were Sunday afternoon guests of Mrs. Dorothy Culp and mother. Miss Kay Baughman, of Manchester College, spent the week end with her parents, Mr. and Mrs. Warren Baughman and ilyMr. and Airs. F rancis Hoffer, of Gary, were week end guests of her parents, Mr. and Mrs. Ivan Hartsough. Mr. and Mrs. Lloyd Killian, of near Walkerton, called on Mr. and Mrs. Orby Baughman Satin day

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afternoon. Mr. and Mrs. Carl Rowe Ron, of Chicago, called on Mr Mrs Earl Rowe and fanui Samuel Rowe Sunday. Mrs. Helen Freeman and Haze] Hoover of Toegarden, Monday evening on Mrs. Stump at the Memorial h( in South Bend. Mr si John Proctor, of S Bend and Mrs. Wert, also of S Bend, wore Sunday after guests of Dorothy Culp and ther. Mr. and Mrs. Wm. Kern, of acuse, ealh-d on Mrs. Cora < Sunday. Elect Junior High CheerleacL On Tuesday. September 11 students of the North Lr Junior High met in the slhool gym to elect their cl leaders for 1962-63 Ten from grade eight, and seven , from grade seven, tried om candidates. Girls elected v Sheryl Bauman and Karen for grade eight; and Carol I ell and Patty Markle were < en from grade seven.