CONTROL OF STORE CREDIT

Taranaki Daily News, 8 February 1934, Page 8

CONTROL OF STORE CREDIT

VALUE OF CAREFUL ACCOUNTING. CANTERBURY MAN’S ADDRESS. Illustration of how a country storekeeper could make a success .of business by keeping up-to-date was afforded the New Zealand grocers’ conference at Hawera yesterday by Mr. J. S. Chapman, Canterbury. In an address on credit control Mr. Chapman revealed by his detailed figures how useful a careful accounting and costing system could be. Mr. Chapman said that as return for the accommodation he gave in credit he charged a booking fee of 1J per cent. Goods were otherwise charged at the same rate. The average term of credit was 36 days, and by keeping close contact with customers bad debts were reduced to a minimum. He estimated that it should not cost more than 2 per cent, to 5 per cent, to run a credit department, for his was run at a cost of 1J per cent., which was . nearly covered by the surcharge. Supposing that all his credit business was cut out, said Mr. Chapman, he would not be in such a good position. Even if he doubled his cash sales, without cutting prices, he would do only two-thirds of the business, while instead of making a clear net profit of 3.9 per cent, his profit would be only 19s 2d per cent. On a turnover of £20,000, which would do for calculation, it would mean the difference between £6BO and £ll5. On unit credit sales in 1930-31 his profit was 8d and on cash sales there was a loss of sd.

As considerable interest was shown in the many charts produced by Mr. Chapman, he gave further illustration of his methods. Each assistant was paid at least the award wage, while a careful account was kept of the sales of each. If the commission. on the sales was higher than a man’s wages he received that amount. One man at one period was earning £8 10s a week. He had found that the best way to make money was to geat his staff generously. If an assisnt was working on a job where he could not make sales, such as window dressing, an assistant would make out a docket charged, in that example, to the advertising department. Referring to the amount that goods should be marked up on cost Mr. Chapman said it was the independent grocer who was the price cutter, for he sold slow-moving lines much too cheaply. Quick moving lines were cheap to sell and could be sold at a mark-up of say 8 per cent. Slow-moving lines at the other extreme should be marked up 40 per cent.’ for they took more insurance,) were longer on the shelves and took more to selL SOUTH TARANAKI BOWLING. PARK-OPUNAKE TROPHY. • A trophy for competition between the Park and Opunake bowling clubs has been presented by Mr. A. J. Brennan. In the past the clubs have played an annual friendly game; this will now take the form of a trophy game. It will be played at Opunake each year and probably during the week-end, so that the visitors can take their families for a day at the beach while the match is in progress. Last week-end the trophy was played for for the first time and Park won by 7 points. Big scores were a feature of the game. Burton beat Smith (Park) by 11 points, Mason (Park) beat Hammonds by 18 points, Chadwick (Park) beat Morris by 20 points, ahd Baker beat Quin (Park) by 25 points. Wilson and Colman drew 23 all and Goodwin had a good game to beat Julian by 5 points. Park Wins Wednesday. Park’s decisive win from Hawera ended the Wednesday section of the southern division last week and interest at the moment is. focussed on the Saturday division match between the same clubs to' be played this week. Patea was to have visited Park yesterday for a friendly match but was unable to make the trip. In the banner final Park beat Hawera by the substantial margin of 33 points. Goodwin and Hother were the heroes of the day, the two skips making 31 of Park’s lead. Chadwick was the only Park skip to lose his match, and he was beaten by only two points. Smith (Park) and McCormick had a close game, Smith winning by 22-18. Goodwin’s score of seven on the 14th head was a feature of the game.

BOWLING AT MANAIA. INTER-FACTORY CONTEST. A bowling match of considerable interest took place on the Manaia green on Tuesday evening for the “Acid Test” challenge chield. The shield is a handsome trophy presented for competitions between bona-fide suppliers or employees of Kaupokonui, Riverdale and Joll dairy companies. The first challenge between Joll’s and Kaupokonui resulted in a win for the former by 28 points to 26. Cran, A. Guy, Kilpatrick, Johnstone (s) 28 beat Ure, Ross, Corry, McDonald (s) 26. Manaia Personal Items. Mr. A. George has returned home after a tour of the east coast. Mr. Clarke, of the staff of the Manaia post office, and his wife and family are spending a holiday at the Kaupokonui beach. Mr. and Mrs. H. Lowe have returned from the Kaupokonui beach, where they spent the holidays. OPERA HOUSE TALKIES. BIG NAMES IN “DINNER AT EIGHT.” “Dinner at Eight,” which will be shown to-night and to-morrow night, with matinees to-day and to-morrow, at the Hawera Opera House, has an unusual galaxy of big names in the cast. John Barrymore is seen in a highly dramatic role and Lionel Barrymore plays the part of a financier doomed to death from heart failure with admirable restraint. Wallace Berry is his usual rugged self in the part of a shady big business man, and Jean Harlow as his stormy but attractive partner is excellent. Marie Dressier, as always, is—Marie Dressier, sometimes haughty, sometimes pathetic, usually witty and invariably interesting. Edmund Lowe, Lee Tracy, Billie Burke and Madge Evans have the other leading roles. The continuity is reminiscent of “Grand Hotel,” in that there is no plot in the old sense of the term, but a series of snapshots from a number of lives which are linked by the fatal “dinner at eight.” Each such vignette is a sharp and dramatic picture in itself. The supports are gcod. Jack Buchanan's latest film “Yes Mr. Brown” opens at the Opera House on Saturday. ,