The star-independent. [volume] (Harrisburg, Pa.) 1904-1917, 1915-04-24
SUBSTITUTION PROBLEM
LARGE IN AUTO business
R. g. Rueschaw Says It Exists In Ag-
gravated Form and That Override
mand for Reos Makes the Company
Face the Question

cove, in the automobile business,
have to deal with the problem of sub
stitution in its most aggravated FORM"
says R. G. Rueschaw, sales manager of
the REQ Motor Car Company.
'"By that, 1 mean that we are con-
fronted with the evil of substitution
not on the part of competitors merely,
but right in our own house as it were.
By the very dealers who handle REQ
cars in some cases.
Just at this moment, because of the
extraordinary condition that exists as a
result of tremendous over-demand for
REQ ears, we are wrestling with the
substitution problem as never before.
Gone would naturally suppose that
the ideal condition for any manufac-
turer or dealer, would be an override
mand for his product. But that is not
necessarily the case. In fact, it may
prove a very dangerous condition. And
that is why we are watching it so close
ly at this time.
"You see, it is known everywhere
in the trade and among motorists that
because of ter splendid reputation
and their values, we have more orders
for REQ fours, skies and even motor
trucks than we can supply at once.
Eventually we hope to supply them all,
of course.
1t would be but natural that deal
ers handling other and competitive lines
of cars, should use that argument to
induce prospective buyers to accept ears
other than Reos. But one unfamiliar
with this kaleidoscope business would
hardly expect the very dealers who han
die Reos to do that. Yet it is a fact in
several cases.
"Few people realize that because of
the fact that this is strictly cash bust
ness it calls for the most careful watch
ing from the sales department. Where
the watching of credits is the problem
in other lines of manufacturing, the
watching for changes and substitutions
is the important thing in the automo-
bile business.
"1'll explain that ina few words.
Being cash business, it is fact that.
the moment dealer has taken his car
load of automobiles off the side-track
and paid the sight draft that is always
attached to the bill of lading, he owes
nothing to the manufacturer-not even
allegiance. Unless he be man of more
than average integrity and stability and
foresight, that is how he interprets the
memoranda that, in this business is
enormously called contract.
So it happens, that when there is
a demand greatly in excess of possible
supply, for a certain car, there is a
great temptation for the dealer to take
on another line temporarily and try to
substitute it for the more reputable
model while the big spring demand is
on.
"Of course he may have no idea of
continuing that line. He may have
bought up job lot at big discount
in fact. It's case of cashing while
the cashing is good.
"Of course this practice is gener-
ally confined to the less responsible
dealers and certainly to the short.
sighted ones. When we find case I
make mental note of the fact that an
other year REQ will look for better rep
resentation in that town.
But, meantime, we have to wrestle
with problem that is met in all lines.
out in an aggravated form in this busi.
ness substitution, and by those from
whom you would least expect it.
To warn buyers of this we have
found it necessary to publish an adver.
tisement treating of and explaining this
remarkable condition.-Adv.#