MEN AND METHODS

Dominion, Volume 22, Issue 72, 18 December 1928, Page 15

MEN AND METHODS

BUSINESS PLANS AND IDEAS (By Observer.) Is Credit Replacing Cash Sales? In one generation many changes take lace in the business world. Perhaps ne of the greatest of late changes is he manner in which the cash buyer is ‘eing slowly placed by the credit cusomer. Strangely enough, this change s often welcomed by the business managir, and many big stores are seeking neans of converting their eash customers o credit buying. One striking advan;age of this system is that credit links .■ustomers to the store. The cash customer remains a stranger and it is difficult to determine his buying habits. Many of those to whom the extension of credit would be justified cling to cash buying, some from habit, others from principle. Some are ignorant of credit service and many dislike the procedure of opening an account, although they admit it is necessary; they dislike giving details of themselves, their family hisory, and their finances. Again, a cash buyer is free from the temptation to buy >vhat he does not need and cannot af'ord. He has no day of reckoning. From ;he manager’s point of view the tempta;ion that attends credit privilege is an idvantage. People buy more when they >ay once a month. Also, the credit sys:em brings the buyer into personal contact with the business man and he is more easily able to ascertain the wishes and needs of his customers. In some stores bonuses are paid to salespeople for bringing prospects to the credit office, for the counter clerks are the ones who have the best chance to appraise rash customers. The loss entailed by retail credit is in only slight proportion o the ease of selling and increased sales volume. Helping the Debtor. The ways of old-time creditors are not those of to-day. Under present methods, the debtor is given every chance of recovery, and instead of the creditors realising a small fraction of their original claims, after poor stock sales and the payment of expensive fees, the presentday creditor very often is paid in lull, and the merchant’s affairs are restored to a firm basis. In some countries, the adjustment bureau, owned and operated bv the creditors themselves, does much to achieve this state of affairs. Its functions are to handle assignments for the benefit of creditors, arrange extensions for solvent debtors, handle composition settlements, conduct investigations and examinations, prepare and file claims of creditors in probate and bankruptcy proceedings, and render such other services as are within its powers. The business man who is not insolvent, but only embarrassed. if results of examination are satisfactory, is granted an extension. The situation is discussed by local creditors, or a representative committee The bureau sends an adjuster to take a financial statement from the debtor s books, and to take stock of his merchandise. When the adiuster reports, the committee meets again. If they are satisfied that the debtor can pull through, he is granted an exit is obvious that the busies cannot be saved, it is the bureaus policv to sell the stock in the open market. No sale is confirmed until approved bv the largest creditors, or the creditors committee Under this plan, the asests are held together as long as possible, and the interests of the creditor, as well as the debtor, are protected ♦ i • The Ago Colour. Despite the many difficulties that the “age of colour” bolds for manufacturers, there are many arguments that commen . it as a means of stimulating sales and commanding attention in the market. One of these is that it may alter entirely the way in which a product is regarded by purchasers. Jewellers report that sales of clocks have shown a great increase since they were made objects of ornamentation by colour, as well as merely articles of utility. The clock is part of the colour scheme of the furnishings, and when that is changed new clocks aie bought. In keeping with .the modern trend, alarm clocks and kitchen clocks are now being offered in tones to match the more popular kitchen decorative schemes. Colour has also helped in the sale of portable typewriters, and the granite cooking utensil. The latter is a fine example of a product revivified by the use of colour. Until coloured kitchens became the vogue, granite-ware was considered much inferior to aluminium utensils. The foresight of manufacturers in producing granite-ware in tints has worked improvements in this condition. Another advantage is the attractiveness colour lends to a display of commonplace articles. Dealers’ showrooms are considerably brighter and more inviting when they are a riot of beautiful shades. Refrigerators, ranges, washing machines, and such objects have a very much more interesting appearance. The matching of colours presents one of the greatest difficulties. For instance, the enamelled ware which is ordinarily used for bath tubs must be fired at a different temperature from the china used for lavatories and other fixtures. The process of compounding the two materials is different. This is why some manufacturers advocate contrast in the bathroom or harmonising pastel shades which does away with the matching difficulty. On the whole, the profits made from coloured articles, by the manufacturers, does not compensate for the large amount of expenditure in their production, and the heavy losses sustained through the changing popularity of tones. Interest in colour, we are told, has come in regularly recurring waves all through history. Every barbaric invasion has been followed by a Quickened interest in colour. There was a colour revival after the Persian conquest of Egypt, the Roman conquest of Greece, the Barbarian invasion of Rome. It arises in the first place through art and spreads with the education of the people.