Douglas daily dispatch., 1927-07-17

years kept up wise and consistent
policy in their dealings with Mexico
have accumulated profits and have
suffered no losses. have a great
number Of unsolicited testimonials
from representative firms bearing out
these facts. 1t is the teInperamental
exporter, whose policy suffers from
fits and starts, who usually COM
plains of losses for which he is as a
rule practically responsible.
Another practical example is the
exporter who looks for his Mexican
business thermometer in the sersa-
tional papers and orders all credit
closed or widely opened, according to
the pessimistic or optimistic news he
absorbs; in the first case he hurts
the feelings of honorable and respon-
sible clients together with those of
newcomers lightly equipped for the
business field and unconscionSly turns
his business over to his American or
European competitor; in the second
case, he plays into the hands Of So
called merchants and importers who
are just waiting for opportunities to
obtain merchandise on credit and pay
for it out of the proceeds of the next
bill of goods.
when retail dry goods merchant
in the United States receives an APP
lplication for charge account, he in
vestigates the prospect from all an
gles his position, time of service, in
come, habits, references, etc, are
looked into thoroughly before granting
the desired accommodation. The same
rule applies to foreign trade; before
granting credit, not only the trade
history, financial strength and reli-
ability of the merchant are irlvesti-
gated, but very especially his sales
possibilities, the territory he covers.
| its population, his possible turnover,
whether his business is seasonal or of
a steady character, depending on
whether his territory is agricultural
mining, industrial, etc, and with the
facilities offered by The directories.
commercial travellers guides, special
reports, bank connections, these facts
can be ascertained now in Mexico as
well as in the United States. Over
selling a wholesale and retail dealer
controlling a small retail territory or
newcomer in a large city through
lIdoJl1y OCCuICQ dllO A1ACC0l cbC 4t4AAM
nation is often the reason for export
losses.
Another frequent cause for the
dissatisfaction to be found in an un-
wise and precipitate appointment ,of
agents or representatives who look for
quick commissions and volume of
sales in preference to a substantial
and gradual development of their
territory. Men appointed in answer
to applications filled with vague ref
arences instead of being chosen for
! their ability and acquaintance with
he trade usually turn out the wrong
way.
"The appointment of a representa-
tive requires much more care than
opening of a credit account, as he is
the medium through which hundreds
of accounts will be opened and it de-
pends good deal on his judgment
and knowledge of conditions that the
new clients may come up to expecta-
tions. Here. as in the case of direct
credit landings, careful irlyesti-
cation should be conducted and an
agent appointed without haste and
only after the right candidate has
been selected.
"While many manufacturers and
exporters in the United States have
adopted up to date methods in their
dealings with Mexican importers,
quoting reliable firms, price G. I. F.
Mexican port or F. o. B. interior
port of destination, thus eliminating
all complication in the transaction,
a great many firms still cling. to the
old Idea of quoting prices F, o. B.
American port, no matter if the client
offers to cover in advance the cost
OF consular fees marine freight and
insurance. In some cases it is yet
an absolute impossibility to secure
quotations c. I. F. port of destina-
ton, whether the payment may be
made in advance, on, arrival of the
goods or at a later date.
Another obstacle will be found in
packing for export without consider
ing the method of inland transporta-
ton and the relation of the container
to the tariff. Light packages may be
convenient in domestic railroad ship
ments, but will break to pieces when
transported mule back up the noun
tainS to mountain camp, and ln-
necessarily heavy boxes on goods
which pay duties on the gross weight
will increase the cost and cause the
loss of customer.
"All of the above obstacles consti-
tute serious handicapS in the develop
ment of trade, but the worst will be
found in widespread lack of knowl-
edge of the ways, methods and cir
cumStances of the Latin-American
business man. 1t is very little known
fact that the representative Latin
American manufacturer, merchant,
importer or exporter is as rule an
uncommonly capable and intelligent
member of the trade, who knows local
conditions like book, is accustomed
to overcome serious obstacles and not
only exist but progress in spite of
orIc