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The Beginnings of the Money-Back Guarantee and the One-Price Policy in Champaign-Urbana, Illinois, 1833–1880

Published online by Cambridge University Press:  24 July 2012

Wayland A. Tonning
Wayland A. Tonning
Affiliation:
Instructor, Marketing Department at University of Illinois
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Extract

The widespread advent of money-back guarantees and one-price policies were symptomatic of a major transition in merchandising history. As trade grew and retail stores multiplied, standardization of terms and practices became apparent. Before 1864 Champaign-Urbana merchants had made little progress in developing a policy of standard prices. The postwar years brought increasing competition at the retail level, and the use of the money-back guarantee spread. When this practice became widespread, a one-price-to-all policy became essential. Some old-time merchants continued to haggle with customers, and barter trade in country produce created complications, but by the early 1870's the integration of one-price policies and money-back guarantees had been generally accomplished and the way paved for the advent of mass distribution.

Type
Research Article
Information
Business History Review , Volume 30 , Issue 2 , June 1956 , pp. 196 - 210
Copyright
Copyright © The President and Fellows of Harvard College 1956

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References

1 Russell, Frederic A. and Beach, Frank H., Textbook of Salesmanship (New York, 1949), 45nGoogle Scholar. (Italics added.)

2 Spectator (London), Nov. 26, 1712.

3 The Chicago Tribune (Chicago, Illinois), Nov. 26, 1861. (Italics added.) Palmer's firm eventually became Marshall Field & Co.

4 County Commissioners Court Record, Record Book A (Urbana, Illinois), Nov. 7, 1833.

5 McLean, J., Pioneers of Champaign County (Urbana, 1881), cf. pp. 56 and 28Google Scholar.

6 Cf. Belting, Natalie Maree, Early History of Urbana-Champaign to 1871 (Thesis, University of Illinois, Urbana, Illinois, 1937), 49Google Scholar.

7 Ibid., 51.

8 Ibid., 50.

9 The Urbana Union, A weekly Journal, “Independent in Everything and Neutral in Nothing” (Urbana, Illinois), Thursday, July 21, 1853.

10 Ibid.

11 Ibid., July 21, 1853. (Italics added.)

12 Ibid., Feb. 8, 1855.

13 Ibid., Feb. 14, 1856. Four months later, June 19, 1856, and continuing regularly until Aug. 5, 1858, the Baddeley firm carried the following postscript in its advertising in the Union: “Strictly for cash, They having entirely abolished the credit system.”

14 Our Constitution (Urbana, Illinois), Jan. 3, 1857. Another plea for settlements of overdue accounts took the following approach in the Union, May 21, 1857: “We have a good business lot, opposite the two story brick building north, on which we would like to build a store room, but cannot unless some of our friends who are indebted to us will pay up.” This was signed by J. J. Dunlap & Co., Urbana, Illinois.

15 Urbana Clarion (Urbana, Illinois), Feb. 25, 1860. Perhaps some of the creditors answered their plea and paid-up. (See footnote 14.)

16 Democrat, July 10, 1862. (Italics added.)

17 Champaign County Patriot (Urbana, Illinois), Dec. 10, 1862. (Italics added.) R. M. Eppstein & Brothers opened in Champaign on Oct. 14, 1864, with an advertisement in The Central Illinois Gazette, which, likewise, typified the no-price policy. “Will not be undersold and defy Competition.…”

18 Central Illinois Gazette (Urbana, Illinois), Oct. 21, 1864.

19 Ibid. (Italics added.)

20 Ibid., Oct. 28,1864. (Italics added.)

21 Ibid., July 25, 1865.

22 Ibid., Nov. 24, 1865. (Italics added.)

23 The Union and Gazette, April 13, 1866, and passim.

24 Belting, op. cit., 87.

25 The Union and Gazette, Dec. 25,1867.

26 Champaign County Gazette (Champaign, Illinois), March 24, 1869.

27 Ibid., May 19, 1869.

28 The Central Illinois Gazette (Urbana, Illinois), Dec. 8, 1865.

29 The Union and Gazette (Urbana, Illinois), March 29, 1867.

30 Ibid., May 1, 1867. (Italics added.)

31 Belting, op. cit., cf. pp. 83–84.

32 Champaign County Gazette, Oct. 22, 1873, “Boots & Shoes at D. Rugg's… Men's Plow Shoes $2.00, Men's Fine Boots, Good, $5.00.…” Also, Gazette, Dec. 24, 1873, W. C. Barrett's “… no prices.…”

33 Ibid., Oct. 22,1873.

34 Ibid., Nov. 5, 1873. The tone suggests that for the time he had abandoned the “money-back” guarantee.

35 Ibid., April 15, 1874.

36 Ibid., Oct. 13, 1875. This advertisement included all of the following nomenclatures, “The New York Store,” “The Cheap Store,” “One-Price Cash Store” and “Eichberg Bros.”

37 Ibid., Jan. 12, 1876.

38 Ibid., June 6, 1876.

39 Ibid., Sept. 29, 1880, and passim.

40 Nystrom, Paul H., “Principles of Retail Store Operation,” Economics of Retailing, II (New York, 1930), 477Google Scholar.