The enterprise. [volume] (Wellington, Ohio) 188?-1899, 1889-07-10
THE REASON WHY,

asked, almost daily, why we do not do
credit business. Many people haye become
so habituated to the phrase mark 1t down
tor 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 et bad accounts is but 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 tor nothing. A
merchant must add profit TO cover clerk
hire, freight, living and reasonable In
crease upon capital invested. There 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 q per cent. must
be added for that luxury. Then, many
who are "good, but little Slow will lot
their accounts run .or months-a great In
convenience TO any merchant, whether he
be rich or poor, and loading must be
added 30 cover the time, as II would not be
policy TO 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 TO cover such losses, or else the
tradesman must lose II out Of solid capital
and whom among you believes that mer-
chants are such foolsi Occasionally q
credit customer will no 10 the city, where
he has no credit, and buy of cash down.
house for less than he has been In the habit
oil paying his home free-for all-credit any.
body merchant, and then he calls bis home
merchant "a fraud cheat, !" "a robber,"
ETC., not considering that 10 per cent.
cash profit is better than 40 per cent.
credit profit.
Now follow our figures and, II 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 3 business Of
$4,000. A profit Of 10 per cent pays him
$500 or go per cent. on the capital in
vested. Can you always afford tc pay that
profit for the sake Of getting trusted occa-
sionally, or because the merchant has u
Ecarry good many slow, and some "never
pay customersf Can the merchant AFFORD
to do bettere Please follow the figures /
little farther. If he Is in the clothinl
business and pays cash down, he gets
discount of 7 per cent II he handles bill
capiial six timesla year he saves AZ pc
cent. II he buys on time and sells OF
time, who pays this percentage Wht
. paws for the timer Who pays for th,
bad accountss Who pays for the ex
ira help to carry on credit business
Who pays the book keeper? Certainl,
not the man who never pays. nor the moi
who lets his account run year. His pal
ronage is detriment, even If he pays s.
per cent. profit. The pay comes iron
those who patronize merchants who ar
compelled to add these various loading
TO cover the expenses and losses of credi
business. Neither wise men nor fools cal
figure Il otherwise. "Do men gather grape
Of thOrnsg" Here we want il dnderstOo,
that we are writing no advertising zephy
that we antagoniZe no one. but that vi
will relate few facts that will benef
every person who is interested In building
up your town and community, II he will
heed them.
A lady OF Wellington, who would pa
according to agreement, wanted suit 9
clothes worth $14 and pay on the MONTH
. instnllmeDt plan, during period OF thre
months. We instructed our statesmen {
say that while we felt disposed 10 be az
commodating we had marked our good
on a strictly cash basis aud were doin
only q cash business, and could not, In jul
: tice to our customers and and our own il
tegrity, make variation. She went els,
where and paid $40 for II suit that did nj
10 please her as as well by $2-thus payin
"a extra, or nearly 30 per cent. for thre
months time. Some Of the graduates wi
remember that they saved "a on the
>, Prince Charles suits by calling on US, an
those who did not deal with US saved Ii
amount by banterlDg other dealers dow
10 our prices. The "three dollar all-wo
le can't zip 'em pants" that are so extensvel
n advertised over the country, have nevt
q. been sold by us for over $3.50 and the
n. pay profit OF % per cent at that; but v
n n could not sell them at that price If We h;
n. to book half Of each days sales, as Il
n. cost of doing credit business will ave
age 25 per cent. We have tried both wa,
n. in this county for over 20 gears, and kno
n. whereof we speak.
n. Mr.. Farmer, Mr. Mechanic, Mr. LAHORE
n. you who can borrow money of the legi
N. mate banker for per cent, why will "
N. compel your merchant to do your bankiI
M M business for you, through the tedious pr
cess of buying, selling, charging, transft
ring TO ledger, writing statements, collet
ing and losing discounts, which aggrega
. % per cent. or more, and 10 the end ha
II charged back to you In pricesS Why
you complain that Wellington is dull, al
not as good market as II should bef
answer, because too many Of you take yo
money to the city and leave your "cred
ell for your home merchant 70 subsist {
Why Is your land worth but $40 Ler &C
:. while land 80 miles northeast Of you
" worth $3.50 per acreS There the land
no better, and the climate is no healthl
1t is simply because you take your mon
there and build up city, and impover
your own town.
. Our expenses are low. We will 8
goods for cash cheaper than you will 4
them In any city In the state. Our clel
.v. shall not misrepresent the quality Of goo
s6i Every article will be Just as represent
and the price win be guaranteed the ID
- est, and marked In plain figures We sh