Non-store retailing

Non-store retailers include mail-order houses, vending-machine operators, and direct house-to-house selling organizations. Mail-order retailers are particularly prominent in department- store-type merchandise such as shopping goods and women's and children's clothing. Some 77 per cent of all mail-order sales are in this department-store-type merchandise. Mail-order retailers also sell automotive merchandise, books, stationery, and even furniture and food. Total mail-order sales represent about 1 per cent of all retail sales.
Vending machines have become big business in recent years. They are destined to grow as more and more merchandise is developed specifically for vending machines. In 1958, the volume of vending-machine sales was only about $750 million. Now, it is over the three- billion-dollar mark.
In the last years of the decade of the 1950's there was a great proliferation of items sold in vending machines. Many manufacturers are making special products and special package sizes for vending machines. Shortly, it is estimated that sales from vending machines will reach $4 billion.
House-to-house selling is another form of retailing that has gained momentum in recent years. The Census of 1958 showed total volume of sales at $2.5 billion. Building materials, farm equipment, groceries, milk, apparel, household appliances, books, stationery, general merchandise and cosmetics all have found ready out¬lets in house-to-house selling. It should be noted, however, that the total volume of sales in 1958 was not very much larger than in 1954. House-to-house selling has certain natural disadvantages such as consumer resistance and cost. Some cities and towns have ordinances against peddlers.
In truth, house-to-house selling is a direct descendant of methods used by the old "Yankee peddler." But unlike the Yankee peddler, the modern house-to-house salesman often offers specialties not available elsewhere. There are many marketing people who believe this type of retailing will become increasingly important. Much will depend on the aggressiveness of local store merchants and their ability to serve the consumer better.
House-to-house selling has the advantage that the dealer or salesman has little capital invested in merchandise. His type of operation gives him flexibility and a home-service convenience that the retail store cannot offer. Also, as shopping areas become more congested, the house-to-house retailer is in a position to offer the consumer greater convenience by shopping in her own living room. It also offers manufacturers an opportunity of introducing new products directly to consumers, and of making sure that consumers get the product by the simple expedient of delivering it to their homes.
The greatest single obstacle to house-to-house retailing is the problem of recruiting, training and holding salesmen. The turnover among such salesmen is often 100 per cent and higher in one year. While some salesmen make a very comfortable living out of such retailing activity, many others, who are often only part- time workers, get discouraged easily. It is not easy to take direct rebuffs day after day and come back for more. Direct house-to-house selling is much more difficult than in-store selling. From the point of view of the manufacturer, house-to-house selling is also costly because of the high commissions needed to attract and hold specialty salesmen.
Many observers believe that the growth of self- service in supermarkets, which has spread to almost every other type of retail store, will give house-to-house selling a great impetus. The competition for shelf-space is tending to limit the selection available to the consumer. Shopping in the suburbs entails certain difficulties, such as lack of adequate parking place, and the cost of getting baby sitters. Also, better advertising has acquainted the consumer with products by name, so that much of the peddler's stigma is eliminated.
The volume of house-to-house selling has reached the $3 billion mark, with some 3,000 houses selling direct to consumers. Despite the relatively high cost of selling in this manner, profits from such sales are reported to be above those of sales through conventional channels.
House-to-house selling has proved especially effective in opening up new territories and in introducing new products. Effective demonstration is virtually assured. And if the quality is as good as prevailing products, a greater consumer interest is almost certain.