Evening star. [volume] (Washington, D.C.) 1854-1972, 1927-01-05
MEN AND MONEY
By NJ. S. Rukeyser.
Copyright, 1879


cess. Sophisticated business leaders
in the United States are coming to
realize that even selling enthusiasm
can be overdone.
A. j. Brosseau, president OF Mack
Trucks, Inc, the largest exclusive
manufacturer of motor trucks and
passenger busses. has recently taken
the leadership in correcting abuses
which have crept into this newer wing
of the motor industry The chief evils
grew out of excessively easy credit
terms, which tempted many individ-
uals without experience or capital
into the trucking or bus business.
IF the object of business enter
prise" said Mr. Brosseau. els simply
each year to beat last years sales rec
ord, it is likely to do unsound things.
The zeal of the sales department
should be tempered with the cool and
analytical control of the credit man.
Unless commodities are soundly sold,
q business is not setting the founda-
tions for lasting prosperity.
Tightening Credit Terms.
In explaining to me how his own
concern had recently frightened up
credit terms, Mr.. Brosseau continued:
with view to improving condi-
tons in the industry, Mack Trucks.
Inc, has adopted the following terms
policy-25 per cent down payment;
terms not to exceed IS months, and
in every instance a careful investiga--
ton is made of the operation conduct
ed by the buyer to ascertain whether
his business is sufficiently we'll estab-
.iiShed4 or his prospects good enough to
justify the investment.
THE effect of these terms will be
to reduce temporarily the volume of
sales to the extent that it eliminates
the less desirable class of business.
but there is no doubt that the ulti-
mate effect of the new terms will be
to benefit, first of all, those already
engaged in the trucking business, by
eliminating uneconomic competition
and also the manufacturers. who will
from now on, conduct their business
without the hazard of losses due to
repossessions.
THE new policy was not adopted
because of losses that had been, in
Cured, but because of the conviction
that unless the tendency toward I'M
sound terms was corrected, losses
would inevitably follow"
Ready for Any Changes.
AS result of the new credit and
sales policies, Mr.. Brosseau believes
that his company is ready for any
changes that may come in business
conditions.
Questioned concerning his expecta-
tions for 1927, Nv. Brosseau declared:
Nineteen twenty seven will be a
good year so far as volume is con-
cerned. but it will be a year of in.
creasing competition and every one
will have to work hard to make sub
stantial profits
The willingness to sacrifice i'm.
mediate sales volume to broader con-
siderations regarding the needs of the
industry as a whole is encouraging
There is perhaps too much high pres
sured selling in business. Less
thoughtful business men set their
own standard of living extravagantiy
in advance, and then decide how
much they will have to get out of
their business. And returns have
come easily in the last two or three
years, The give-me habit has de.
veloped. Business men should think
first of rendering service, rather than
how much are entitled to.
Mr.. Brosseau continues an enthusi-
astic believer in the future of trucks
and buses.
Should Investigate Routes.
From experience his company has
learned how to pick risks in the bus
field also. Mr.. Brosseau sees an in
creasing disposition, on the part of
traction companies to, go into the bus
field. The utility companies are in
general good credit risks, Mr.. Bros
seau believes, but they are low in cash
and want very long credit terms In
the case of independents, in addition
to substantial down payments, the en-.
tire industry should make an ANALYSIS
Of the proposed routes, and such
analysis Is necessary, because the ex-
perience of pioneers IN making money
on the best routes is not a guide to
others who may want to engage in the
business in territories not so produc-
tive.
Mr.. Brosseau believes that the time
has come to treat, the bus and truck
business as a staple industry and to
adjust sales policies to conform to the
best interests of the industry as a
whole; that the industry must become
reconciled to passing up sales that
may result in losses or dilute the in
dustry to the extent that the business
of operating trucks may become un-
profitable to all.
Prospects for foreign sales, the trade
believes, are improving, although it is
not as promising for trucks as for pas
sanger cars which are built on a mass
production basis, and that as a result
the best foreign outlet for American
trucks and buses will be to countries
that are not manufacturers. On neu-
trail territory American manufacturers
feel confident that they can hold their