The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1889-07-03
The REASON WHY,


Since returning TO Wellington we are
asked, almost daily, why we do not do
credit business. Many people haye become
so habituated to the phrase "mark II down
for a few days" that any other system
seems an innovation. They never stop to
consider the enormous expense attending
a credit business, without even consider
Ing the losses. What is actually lost by
way ef bad accounts Is but a small portion
OF the actual losses of credit business.
Carefully considering the following facts
and figures will convince any one that
credit Is bad for both seller and buyer.
Business cannot be done for nothing. A
merchant must add profit to cover clerk
hire, freight, living and reasonable in
crease upon capital invested. There a cash
dealer, who has no rent to pay, can stop.
How with credit merchant oh, he must
add per cent. TO cover the 5000 or 81, 900
TO pay his book keeper. Then he must
have three or four times as much capital
invested as is necessary for his business, or
else he must buy on credit--a loss which
we will explain later-and per cent. must
be added for that luxury. Then, many
who are "good, but little slow" will let
their accounts run .or months-a great in
convenience to any merchant, whether he
be rich or poor, and loading must be
added to cover the time, as it would not be
policy 10 charge interest. Then there are
some who can't pay, and some who won't
pay, and In marking goods per cent. must
be added 10 cover such losses, or else the
! tradesman must lose II out of solid capital
and whom among you believes that mer-
chants are such foolsl Occasionally
credit customer will 10 TO the city, where
he has no credit, and buy of a cash down"
house for less than he has been in the habit
| of paying his home freefor all-credit any
| body merchant, and then he calls his home
merchant "a fraud, "a cheat" "a robber,n
etc, not considering that 10 per cent.
cash profit is better than 10 per cent
credit profit.
Now follow our figures and, If we make
any mistake, report 10 us and we will treat.
A man commences business with cash
capital Of say $1,000. He turns his CAPT.
tai six times year, doing business Of
$4,000. A profit Of 10 per cent. pays him
81, 800 or 90 per cent. on the capital In
vested. Can you always afford to pay that
profit for the sake Of getting trusted occa-
siopally, or because the merchant has 10
carry a good many slow, and some never
pay" customersf Can the merchant afford
TO do better? Please follow the figures q
little farther. If he Is in the clothing
business and pays cash down, he gets a
discount Of per cent. II he handles his
capital six times year he saves AZ per
cent II he buys on time and sells on
lime, who pays this percentages Who
pays for the fimei Who pays for Che
bad accounlsf Who pays for the ex-
ira help 10 carry on credit business I!
Who pays the book keeperY Certainly
not the man who never pays nor the man
who lets his account run year. His pat
ronage Is detriment, even II he pays 80
per cent. profit. The pay comes from
those who patronize merchants who are
compelled 70 add these various loadings
70 cover the expenses and losses Of credit
business. Neither wiEe men nor fools can
figure II otherwise. "Do men gather grapes
Of thornsr' Here we want il understood
that We are writing no advertising zephyr
-that we antagonize no one, but that we
will relate q few facts that will benefit
every person who Is interested In building
up your town and community, II he will
heed them.
A lady Of Wellington, who would pay
according 10 agreement, wanted a suit Of
clothes worth $14 and pay on the monthly
installment plan, during period Of three
months. We instructed our salesmen to
say that while We felt disposed TO be &C.
commodatipg we had marked our goods
on a strictly cash basis and were doing
only cash business, and could not 10 Jus
tice to our customers and and our own in.
tegrity, make variation. She went else.
where and paid $l6 for suit that did not
please her as as well by $2-thus paying
"a extra, or nearly 30 per cent. for three
months time. Some Of the graduates will
remember that they saved 81 on their
Prince Charles suits by calling on US, and
those who did not deal with us saved the
amount by bantering other dealers down
10 our prices. The "three dollar all.wool
can't rip 'em pants" that are so extensively
advertised over the country, have never
been sold by us for over $3.50, and they
pay profit Of 25 per cent at that; but we
could not sell them at that price II we had
TO book half of each days sales, as the
cost Of Going credit business will aver
J age 25 per cent. We have tried both ways
In this county for over 20 years, and know
whereof we speak.
Mr.. Farmer, Mr.. Mechanic, Mr.. Laborer
! you who can borrow money Of the legiti-
mate banker Tor per cent why will you
! compel your merchant TO do your banking
] business for you, through the tedious pro-
T cess of buying, selling, charging, transfer
: ring 10 ledger, writing statements, collect
$ ing and losing discounts, which aggregate
. 25 per cent. or more, and In the end have
I. IL charged back to you in pricesl Why do
}, yon complain that Wellington is dull, and
] not as good a market as Il should bef
. answer, because too many Of you take your
b money to the city and leave your credit
: inr Your LONE merchant 10 subsist on
3 Why Is your land worth but $40 Ter acre
n while land 30 miles northeast OF you Il
worth $3.50 per acreY There the land Il
no better, and the climate is no healthier
! Il Is simply because you take your money
! there and build up q city, and impoverisi
J, your own town.
Our expenses are low. We will sci
: goods for cash cheaper than you will fins
thcm In any city la The state. Our clerk
2 shall not misrepresentt the quality of goods
s Every article will he just rs represented
's and the price will be guaranteed the low
est, md marked in plain figures. We shal
treat rich and poor alike. giving 70 all th
4 a a. -.