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Show ICasji, Credit and Collections. We ropy tho following from tlic Dry llrtbds Reporter, ClilcHgo, nn Inlcrcsllng tory 011 cash, credit and collections written by "Tlio Tramp": (Continued from last week.) "Your trade Is mostly with farmers?" "Yen, nnd I enrrv n 18,000 stock, and nomc of my trudu don't my up for twclvn month I've got to change to a cash system, for I'm getting In hucIi u llx that 1" can't discount my bills," "What kind of a collecting system have you)" "J haven't anv. My trade cornea In anil buys, anil 1 charge the goods, and when they get good and reudy to pay they do so. "Don't you ever aund out any Mate-menta?" Mate-menta?" "Oh, yes, I send out statements every month, hut they don't pay any attention to them, for they know they don't havu to pay until they get ready." "I suppose ynn know every one of your customers personally?" "Oh, yes, I am a friend of them all. Am well acquainted with the whole lot." "Got any competitors In your town?" "Yes. Got two good strong ones, and Ihry do a credit business too." "Well, how do you expect to success-Jullychangc success-Jullychangc from credit to cash with that kind of competition?" "I don't know. That's what I want you to tell me," "Well, Paul Jones," says I, "I can't tell you any such fool thing. It's not a cash system you want, nor a credit system sys-tem you want to get away from. Your trade Is all well-to-do farmers, and their accounts are good. What you wont is a collecting syRtcm. "You want to go after these people and make them pay up. "You want to set a tlmo limit of how long you can stand a customer off, and If lie doesn't pay up In that time, you want to stop giving him credit until ho does pay up. Simply tell such customers that such a long-time credit is too big a train on your business, and that you cannot stand for It. I "Well, my trade Is awfully 'tetchy.' and they are likely to get ma.l If 1 push them. I can't afford to make 'em mad." "Yes, that's true," says I. "Everybody "Every-body Is touchy or pretend to bo when they owe us money, but you might as well make 'em mad, by asking 'era for money, as to turn 'cm away by changing to a cash system. "What you need, Paul Jones, Is a stiff-er stiff-er backbone in your collecting." Well, It la a problem," said Paul, "Drop In and sec me when you nro down my way and look things over. Good-bye. About four mouths after that I was In Arrowsmlth, and spent n week lo&flug about Paul'a store. He had a good trado and a rattling good store for the town, but all I could hear from mingling with the customers was, "Charge It," "chargo It," charge It " Pant had a head man about SO years old who was a very bright fellow, and, during my stay there, I had many talks with him about cash, credit, nnd collecting collect-ing systems, anil I got him thoroughly saturated with the Idoa that a good collecting col-lecting system was the only salvation for hU employer. Then I had a talk with Paul, and said, "Paul, what you should do Is to turn all your credits and collections over to John, Have nothing to do with It yourself. Your backbone Is too weak. You remind me of a fish with Its vertebra: broken. "Let John grant all the credits charge nothing to anyone unless he asks It, and let him see to the collecting of it," Well, I went down and staid all night with Paul on that subject, and the next morning It was fully decided that his heud man, John Story, should havo full charge of these affairs. We got out a letter to the trade, telling thorn the facts In the case, and, after tell Ing John all I knew about bow to get the money, 1 loft Arrowsmlth for a ride with th hogs. |
