from a chain and filled the prescription for the customer and take it out to her and tell her this is $3.25 and she will make the statement, well, you are 50 cents less than what I paid last time for it at a large chain drugstore. So there are occasions when our prices would be less. But here again, the small businessman as a rule is very happy to operate on a set percentage markup on his cost.

Mr. CONTE. Could we get for the record that bulletin of Peoples and the wholesale pricelist?

Mr. GOLDFEDER. Yes.

Mr. CONTE. You will leave those?

Mr. GOLDFEDER. Yes, sir.

(The material referred to follows:)

Prices for prescriptions at Peoples Drug Stores, Washington area

Prices for prescriptions at Peoples Drug Stores, Washington area—Continued

NOTE. Prices are based on Peoples new pricing chart-they could vary from store to store, but, only slightly.

Mr. GOLDFEDER. I told the wholesaler that I would like to purchase these items as an independent retail drugstore operator and asked the lowest price that he could charge me for these items. I would like to set you certain examples here, if I may.

Mr. CONTE. Will you please identify the sheet?

Mr. GOLDFEDER. Yes. I would like for you to bear in mind that we may be off a penny or two on these prices. For example, I had a representative I would rather not mention his name or company in public-that was in to see me last week, and he had a deal on a particular product which his company manufactures and very heavily is promoting and advertising.

I asked him what the deal was and he said, "Doc, I will have to apologize to you, here is a sheet, but I don't understand the deal myself."

It is on many occasions most difficult to cite and break down when they start giving you 2 percent and 5 percent and 3 percent-you go crazy trying to figure out the actual costs. So we may be a couple of pennies off.

Mr. POTVIN. It is my impression that you have the sheet that you just alluded to with you. Is that correct?

Mr. GOLDFEDER. I have a sheet which I am not too satisfied with.

There was another sheet but unfortunately he had only one copy
Mr. POTVIN. May we have the one that you have?
Mr. GOLDFEDER. I will be glad to give it to you.
(The material referred to follows:)

of it.

TWO STEPS TO GREATER PROFITS

1. Check your stock on all Clinton Division products and order for maximum wholesaler discounts. 2. Your purchase and display of Clinton Division promotions mean extra profits. SEND THIS ORDER THROUGH YOUR FAVORITE WHOLESALER

A DIVISION OF BRISTOL-MYERS COMPANY

Mr. POTVIN. Will you describe it briefly?

Mr. GOLDFEDER. This is a sheet from Bristol-Myers. One other area that I would like to cover if I may in conjunction with this. One of the biggest headaches that we have in retail drug today are the "cents off" and the coupons which are driving us crazy. There are certain deals occasionally available from the wholesaler if you purchase $100 worth perhaps of Glenbrook Laboratories, you may be eligible for a percent discount, plus additional discount. I may purchase today $100 of an item or let's take Fact toothpaste which is manufactured by Bristol-Myers, which means that I would put into my store a perhaps 4- to 6-week inventory of Fact toothpaste. Low and behold, a week later, Bristol-Myers decides to come out with Fact toothpaste "12 cents off" on the family size and the recommended retail price is 95 cents. That means the price to the consumer immediately becomes 83 cents, which means that I either have to pass up this "cents off" promotion because I have a heavy inventory of regular-priced stock merchandise, or I have to take my regular merchandise off the shelf, put it in the stockroom and purchase the "cents off" deal in order to compete with competition in the area.

Now, many times advertising in the paper may have a "cents off," for example, on a dollar item, which may be discounted at 57 cents and will be advertised for 57 cents, and the consumer will not be aware that there is a 20 cents off until they enter the drug store and see that the manufacturer has given the 20 cents off, and therefore that would bring the price down. But the person reading the newspaper would say, my goodness, they are very, very reasonable, only charge 57 cents for a $1 item. However, the consumer is not aware that this item is a "cents off" promotion.

The other item is the coupons which in many instances are attached to the package of shampoo or hand lotion, whatever it may be, and we are supposed to give the consumer cash credit when they present their coupon. We are supposed to give the customer the 5 or 10 or 12 cents off on this particular item when they come in the drug store and purchase this product. In turn, we have to make sure we don't lose these coupons and we have to take time out to mail them to either New York or the Midwest or West some place. They do allow, I believe 2 cents handling charge on these coupons, but rest assured, that in many instances, many of these coupons go astray.

Now, the manufacturer still charges his full price to the retailer. However, he says to the retailer, when this lady presents the coupon, give her 12 cents off on the product, mail the coupon to us and we will reimburse you. Unfortunately, in many cases the coupons get lost, and here is an area that I believe the manufacturer is taking advantage of the retailer, by these coupons.

Now, on occasion the manufacturer will say to a consumer, purchase this product, take off the flap and mail it in to us and we will send you a quarter. This I believe is the fairest way of handling this situation. I told a local wholesaler that I would like to purchase these items as an independent retail drug store operator and that he could charge me for these items. I would like to show you certain examples here, if I may.