The Garland globe. [volume] (Garland, Utah) 1906-191?, 1906-03-24
Cash, Credit and Collections.

We copy the following from the Dry
Goods Reporter, Chicago, an interesting
story on cash, credit and collections
written by 1.-The Tramp
Continued from last week.
"Your trade IL mostly with farmersH'
Eyes, and carry an sis 900 stock, and
some of my trade don't pay up for twelve
months I've got to change to cash
system, for I'm getting in such fix that
l cant discount my bills
"what kind Of a collecting system
have your"
81 haven't any. My trade comes in
and buys, and ! charge the goods, and
when they get good and ready to pay
they do 80.
Don't you ever send out any state.
mentsf"
"Oh, yes, send out statements every
month. but they don't pay any attention
TO them, for they know they don't have
to pay until they get ready"
az suppose you know every one OF
your customers personality
"Oh, yes, I am friend of them all
Am well acquainted with the whole lot
"Got any competitors In your town.
Eyes. Got two good strong ones, and
they do credit business too
"Well, how do you expect to success
fully change from credit to cash with
that kind Of competition
al don't know. That's what want
you to tell me.
DWELL, Paul JONES'" says l, 81 can I
tell you any such fool thing. It's not q
cash system you want, nor a credit sys-
TEN you want to get away from. Your
trade II all well.to.do farmers, and their
accounts are good. What you wont is a
collecting system.
"You want to 20 after these people
and make them pay up.
"You want to set time limit Of how
long you can stand a customer of, and II
he doesn't pay up In that time, you want
to stop giving him credit until he does
pay up. Simply tell such customers
strain on your business, and that you
cannot stand for IL.
well, my trade Ia awfully 'tetchy
and they are likely to get mai II push
them. ! can't afford to make 'em mad.
Eyes, that's true" saysI Every
body II touchy---or pretend to be--whei
they owe us money, but you might a
well make 'em mad, by asking 'em 70
money, as to turn EN- away by changing
TO q cash system.
"What you need, Paul Jones, is stiff
er backbone In your collecting.
Well, 1t IL problem" said Paul
"Drop In and see me when you are dow,
my way and look things over. Goodbye
About four months after that was 1
Arrowsmith, and spent a week loAfin
about Paul's store.
He had good trade and rattlin
good store for the town, but all coul
hear from mingling with the customer
was, "Charge 1t, charge IT, charg
It"
Paul had a head man about 90 year
old who was q very bright fellow, an6
during my stay there. had many talk
with him about cash. credit. and collect
ing systems. and l got him thorough
saturated with the idea that good co
lecting system was the only salvation fo
his employer.
Then l had talk with Paul, and sale
"Psul, what you should do is to turn a
your credits and collections over to JohI
Have nothing to do with II yoursel
Your backbone Is too weak. You remin
me Of fish with Its vertebre broken.
LET John grant all the credits charq
nothing 10 anyone unless he asks It, an
let him see to the collecting Of it,"
Well, went down and stsid all nigi
with Paul on that subject, and the mel
morning 1t was fully decided that h
head man, John Story, should have fu
charge Of these affairs.
We got out a letter TO the trade. tellin
them the facts In the case, and after tel
ing John all knew about how to get I'll
money, left Arrowsmith for ride wit
tho hogs.