The Cash Discount Problem

"Beware of little expense$ A small leak will sink a great ship."-Franklin.

There will probably always be a certain percentage of purchasers who conveniently forget that cish disc6unts were originated for a definite puipose.

On the other hand, in all probibility, there will always be a certain number of manufacturers-and wholesalers'who will continue to be lax in their methods of enforcing the terms of payment. A weak policy in handling this pro-blem costs the individual seller in unwarranted "loss of *any interest and discount items which, considered separately, are.small amounts, but in the aggregate, based on^" y"ar;" oTlr:r.,.are-.apt_to mount to startling figures.

-uncoubtedly, there are instances_particularly in cases of valued customers-when it would nbt be good policy to call them to account too sharply, but the iealei wtrl is allowed to do about as he pleases with credit terms? Is h.e likely.to. look with increjsed respect upon the company rnat rs atrard to insist upon its rights ? A very importani element in good will is-respect. "A policy ;fr,t;hil;; and enhances respect is a builder of iood will.

-Because the collection of discount itJms must necessarilv be. handled tactfully.but firmly to obtain ttt"- J.-r-ii"J'rJ- t,1,,..,..tt mrght be helpful to pass on a sample of the sort ot..r:lt.r: used by-other firms with excellent returns:

"'l'hanks so much for your check for $600.75 which we are.?leased.to apply to t-he credit of your account.

_ vve nnc, nowever, that you have made a deduction of 2/o for cash discount. Aciording to our standard terms in the lumber business (printed on our invoice), this cash discount is allowed as a'premium which we are'willing to pay for receiving our monev oromptlv.

"It would not be fair to ,ir 'ot out 5ther customers who mail their checks on time, for you to take this discount tld -*9 will appreciate it if you will send us an additional check for $6.30 to balance this account.

"On reconsideration, we feel sure you will see the justice of..ggt position but should we be mistaken in this, if you will let.us !lo*, it -will be a pleasure to go into the -"it., in detail with vou."

Roy A. Dailev.

CHAS. H. GUNTHER TO REPRESENT J. M. HUDDART LUMBER CO.

Chas. H. Gunther has been appointed the representative of the J. M. Huddart Lumber e6. in the Sacramento Val- ley and San Joaquin Valley territory. Mr. Gunther has been connected with the lumber business in the Bay Dis_ trict for many years and was formerly associated wiih ttre Kiernan-Hubbard Lumber Co. of Oikland. He recently made.his initial trip over the territory with .,Bob', Gardnei, who is connected with the company's San Francisco of- fice. "Bob" did considerable reminiicing on the trip himself, as it was the first time he has cafled on the Vallev Trade for a couple years. The J. M. Huddart Lumber Co. are the Northern California rail distributors for the Gerlinger Lumber Co. ahd getropolitan Redwood Co.