Pay Your Debts

Dominion, Volume 27, Issue 184, 3 May 1934, Page 11

Pay Your Debts

Sir. —“J.W.” writes so confidently that he is apparently qualified to speak for the retail business. He ridicules our opinion that prompt payment would assist tlie retailer, and that business would be much healthier if there were a reduction all round in the araoifnt of floating liabilities. It does not appear to us so very ridiculous to supnose that it would benefit business if customers were less “longwinded.” and facts seem to support our view.

That prompt payment is advantageous seems proved by the fact jhat cash stores can sell more cheaply than those which have to give long credit; the quicker turnover for casli permits the trader to work on a smaller margin of profit. That prompt payment is of some advantage to tradesmen also seem obvious from the practice of giving discount for cash We may be wrong, hut are inclined to hold to our opinion that less credit would permit of lower prices and a consequent greater turnover. However, “J.W.” denies this, apparently from practical knowledge of trade; many people will no doubt be glad to have his authority to sunport their practice of keening the retailer waiting for his money.—We are, etc.. N.Z. WELFARE LEAGUE. Wellington. May 2. 1934.