ee

OH!IO STATE UNIV

|

DIT WORLD

Official Publication of the National Retail Credit Association National in Name---International in Scope

December, 1936 Vol. XXV, No. 3 KANSAS CITY—At the Crossroads of America!

Located in the “Heart of America,” Kansas City combines the conser- vatism of the East and the “rarin’-to-go” enthusiasm of the West in a perfect blend. Its credit association is 100 per cent National, with many coordinated group units: The Credit Analysis Club, a Credit Women’s Breakfast Club, as well as professional and rental credit groups.

Photograph courtesy of The Merchants Association of Kansas City. (Used each month on the cover of that association’s monthly magazine, “The Shoppers’ Guide.” )

won't you send us a check— please?

Thank You!

ia Please Pa

NOW that we've reminded you,

National Collection Stickers 1. “Standard”

Five in the series, exact size as shown (upper half of this page), printed in two tones of blue on gummed white paper.

Prices, 1,000 of any one sticker, $2.00; 1,000 assorted, $2.50; 500 as- sorted, $1.50.

| Just to |) Remind You--

6) that this account ( has probably been overlooked and

| ih <I

—s

we'll appreciate your remittance.

Thank You!

Oe FOO eee [wae] SS soe

Hour Remittance- |

for this past due account will be appreciated. We'll be watch- ing for it!

Many Thanks!

Pe eeeeees esses sesessesesees

FOSSSFOSSOOEOOOO OH:

“Good Credit—

is worth more than all the gold mines in the world,’’ said Webster.

Prompt Payment Builds Good Credit—‘W orth More Than Gold”

TREAT YOUR CREDIT

SaCRED TRUST

as ot in aR

SOSSHSSSHSSHFSOSHOOOOS

A Friendly Reminder!

As this account is overdue, your remittance will be greatly appreciated. Prompt Payment Builds Good Credit—‘Worth More Than Gold”

© 1934 Sainte

2. “Gold”

An outstanding series—rich and dignified looking: Printed in royal blue, on special gold paper. Five in series (shown on lower half of this page). Actual size, 134” x2”. (Dotted lines are not part of stick- ers but are only “size indicators.’’)

PRICE, $3.00 PER THOUSAND Order Either Series from Your Credit Bureau or—National Retail

Credit Association, 1218 Olive St., St. Louis.

Now—Please?

We know how easy it is to forget. Won't you send it now—please—while you have it in mind?

Prompt Payments Build Good Credit—“Worth More Than Gold”

© 1934 N.R.C.A. eteeneeil ea

|

Keep Your Credit As “Good As Gold”!

Prompt payment of accounts. according to terms, will build a priceless credit record—

“Worth More Than Gold”

SaCRED TRUST

\

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Lee eee eee eee ee eee eee eo

Past Due!

Prompt payment of this ac- count is necessary to protect your credit record,

Safeguard Your Credit— It’s “Worth More Than Gold”!

© 1934 N.R.C.A, | ae

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The CREDIT WORLD

(Registered U. S. Patent Office.) Official Magazine of the NATIONAL ReTatL CREDIT ASSOCIATION

December, 1936 Vol. XXV No. 3

EDITORIAL AND EXECUTIVE OFFICES

1218 Olive Street St. Louis, Missouri

is Th Ro ccnenierinincntsevcnitisaiabigpsitiiagnedan Editor DANIEL J. HANNEFIN-.----------- Managing Editor GE Fly. Si cemennnesnnns Research Director 2S. rere re reer Circulation Manager ee i NE ice dcuscadecandawh eaeen Advertising Manager R. Preston SHEALEBY.............-- Washington Representative

Advertising Representatives

THomas W. FARRELL......... 180 N. Michigan Ave., Chicago Wu.iam J. Devaney, INc.....420 Lexington Ave., New York

CONTENTS

Editorial Comment 2 Soft Merchandise! Budget Plan! Letters of Credit! 4 Successful Selling—On the Budget Account Plan 6 October Trends—A Fast- Reading Review _ 10 Retail Dairy Credits—1900 to 1936 12 District Conferences In the Offing 13 After Christmas—W hat Then? 14 The Nation’s Collection Percentages—Octo- ber, 1936, Versus October, 1935 16 The Effect of Governmental-Insured Credit on Retailers’ Terms 18 Credit Department Letters a 20 A Little Rhyming Now and T hen— 22 Local, State and National Membership Drives In Texas 23 Credit News Flashes—Personal and Other- wise _ - 24 A Suggested Program for “Pay Promptly” Advertising and Publicity 26 “Let’s Advertise!” 27 The Membership Drive Goes Forward “On All Fronts” oC wy ak co ee The Credit Clinic - 30 Who Says the Credit Man Is Not Sales- Minded? mes bak; t,t Oe

CHANGE OF ADDRESS: Please notify us promptly of any change of address so that you may not miss any issues. With your new address it is absolutely necessary that you also send us your old one. Entered as second-class matter at the Post Office at St. Louis, Mo., under the Act of March 3, 1879. Published Monthly. Subscription, $2.00 a year, to members of the National Retail Credit Association only.

This publication carries authoritative notices and articles in regard to the activities of the

In all other respects the Association cannot be responsible for the con- tents thereof or for the National Retail Credit statements or opinions Association. of writers.

Copyright, 1936, by National Retail Credit Association

DECEMBER, 1936

pe APRA PA NIENIERFENIG RIES,

Anain--Chat Age-Old Wish!

a again brings the welcome op-

portunity to extend to each and every one of our members that age- old wish of the Christmastide—

A Merry Christmas ani

A Gappu New Year!

FTEN, throughout the year, in the stress and strain of business, we long for better acquaintance—for the privilege of knowing, intimately, those who make up our membership.

ry

PS

encouragement during the current year have earned our lasting grati- tude.

mn

F COURSE, we cherish the hope (each of us) that, some day, we may be able to thank you in person— to meet you and call you “Friend”!

mn

NTIL then, though, we must con-

tent ourselves with tendering you, through these pages, that old wish that never grows old: A Merry Christmas to You and Yours and a Happy New Year!

Che National Office

: : : : d x 2 z 2 Pd 2 2 z 2 z 2 z 2 2 2 2 2 z 2 z 2 i OU who have helped us, by your z 5 suggestions, your advice and your e e 2 z 2 z 2 z Pd & 3 x 4 3 2 = 2 2 e z z z z x Pd ec rr

DERI 2A DORE BODE

1

EDITORIAL COMMENT

From the Pens of Other Editors

How Will We Use Credit?

(An editorial in the “Milwaukee Journal”— Milwaukee’s Leading Daily— November 16, 1936.)

REDIT aids buyer and seller and stabilizes the flow and consumption of goods. But credit, unwisely used, may become the octo-

pus that drags both creditor and debtor to the depths of insolvency. L. S. Crowder, General Manager-Treasurer of the National Retail Credit Association, therefore is right when he now warns merchants not to over-extend credit and tells us to remember that “too great an extension of credit during the boom days was one of the factors that led to the collapse of 1929.”

Consider the course of many an American fam- ily: It bought a car, or perhaps two, on credit. It traded in “the old bus” as a down payment and assumed monthly instalments for the balance.

It bought a radio on similar terms. It perhaps refurnished its home on the time-payment basis. It acquired mechanical refrigeration, laundry ma- chinery, automatic heating, maybe fur coats, jewelry and silverware, all on the same easy-pay- ment terms. No one of these purchases would have overstrained the resources of this family. But, with easy credit running against a dozen bills, the family found itself in 2 morass of monthly payments quite beyond its financial capabilities.

So there were defaults. Individuals and fam-

ilies came to legal or virtual bankruptcy. They were withdrawn from the consumer market and rendered impotent as buyers of new goods because they were tied, by too-easy credit terms, to old goods. . Out of this came some share of the national de- pression. Out of it, too, came a nation-wide wail against creditors. This protest was, of course, quite unreasonable from one viewpoint—the credi- tors, for the most, had honestly provided the goods and openly laid down the terms of payment. Yet there was some measure of justice in it.

Creditors who grant “easy terms” without in- quiring into how many prior claims, under other easy-payment contracts, the debtor already has as- sumed, arent wisely using the credit structure. They deserve what they get if the structure col- lapses under the overload.

So Mr. Crowder’s warning to merchants is timely. We should, of course, use credit. A

2

vv

proper volume of instalment buying is beneficial. There is no objection to time payments or easy terms within sound limits, but the American peo- ple undoubtedly got themselves more deeply into the depression by their overload of time pay- ments and perhaps got themselves out of it by not buying for awhile, paying up, defaulting and writ- ing off some of this debt load. It would be sheer folly to go right back to the old, overweighted credit situation again, and it is largely up to mer- chants to prevent that eventuality.

mer

Guarding the Nation’s Profits

Extracts from an editorial by Henry H. Heimann, Execu- tive Manager, National Association of Credit Men, in “Credit Financial Management,’ November, 1936.

There are still those in industry who think of their credit department in negative terms. The credit de- partment is and should be a positive department. It should be the most potent influence for business develop- ment in any organization. ‘The credit department, in the final analysis, is the guardian of the profits of the business. And profits, let it be emphasized, are only potential profits until they are completely realized.

The modern credit manager does more than merely reduce losses and collect accounts. He analyzes condi- tions . . . he appraises his customer; he develops a com- plete picture of his customer’s credit habits. . .

The modern credit manager is vitally interested in legislation. He knows his guardianship of profits de- pends upon sound credit legislation. He knows also that from the moment he assures the position of credit man- ager of his company he has enrolled in a practical univer- sity from which he will never graduate. To keep abreast of the times he constantly educates himself. He is thus a vital force in the erection of standards against unsound credit legislation, an architect planning and building sound credit structures.

~~ er

City Nationally Recognized

(An editorial from the Fort Lauderdale {Fla.| “Daily News’—November 16, 1936.)

Lauderdale received more excellent national publicity yesterday when the National Retail Credit Association released figures to show that this city showed a 25 per cent improvement in retailers’ collections over the com- parable period a year ago, leading the nation.

This is substantial publicity that reaches a substantial people who have the money to invest in Lauderdale’s future. Such figures are accepted by substantial people

(Continued on page 31.)

The CREDIT WORLD

The Bureau Telautographs a Report

(SHOWN BELOW)

and the Store Receives It THEN

AT THE VERY MOMENT IT IS WRITTEN!

(NOT HOURS OR DAYS LATER)

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CH P-~12- 82)

car Am 24%- 3b

11:00

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407° Yo. BOL hie. Ge

Ask for G. B. 36 and Send for Our Man Now!

This message (a “Speci- men” report) was written on a Telautograph instrument installed at The Retail Mer- chants Association, Tulsa, Oklahoma. As it was being written at the bureau offices, a perfect facsimile was ap- pearing at the credit depart- ment of a department store several blocks distant, and only one person’s time was required because the ma- chine at the store received the message without the aid of anyone.

Thus, the bureau and the store profited—not only in saving the time of one em- ployee but the credit granter at the store received perfect authorization to open an account immediately which, of course, increased sales for that day. The rec- ord shown on the left side of this page is an indelible one and cannot be altered either at the bureau or the store.

COMPARE

This system with a slow messenger service (with carbons easily altered or blurred in transit) or an oral means of communication requiring the time of two people to send and receive with no record which means extra expense and no assur- ance because of the chances of shifting responsibility after the merchandise has left the store.

In the Past 30 Days 3 Stores in San Diego, Calif., Ordered Store-

to-Bureau Service!

34 Bureaus Connected to 183 Stores!

Our Service Charges Are

About $1.00 Per Day for

Each Store Connected to the Bureaus

No Obligation—of Course

TELAUTOGRAPH CORPORATION

(45 BRANCH OFFICES IN U.S. A. AND CANADA) 16 West Sixty-First St., New York City

Factory and General Offices: DECEMBER, 1936

Soft Merchandise! Budget Plan! Letters of Credit!

By F. G. LITTLEJOHN Of the Credit Staff of the Broadway Department Store, Los Angeles, Calif.

, 7 HAT do these words mean? Seemingly they are of tremendous importance these days, for since the National Convention in Omaha last June, Mr. S. E. Edgerton, Credit Manager of the Broadway Department Store, has received many letters of inquiry on this type of credit selling. As he went down (figuratively) for the last time under an engulfing wave of correspondence this morning, topped by a letter bristling with ????’s from a credit executive in Ten- nessee, he realized something must be done to satisfy curiosity.

So he suggested I submit an article dealing with our method of selling “soft merchandise” on a budget plan. The reason Mr. Edgerton is not writing this article him- self is due to his belief that he might be overzealous toward this plan of selling and any remarks he might make would be too enthusiastic.

Former credit requirements, with which you are all familiar, have been satisfactory in meeting the demand for credit until recently. To adjust the old régime to the new trend, our credit policy has had to assume a new flexibility. We have met this change with our “Letter of, Credit.”

This method was evolved to meet the demand of the customers who had character, moderate capacity, but lit- tle capital. We know it is difficult to refuse this type of applicant on open account.

However, as these are customers we wish to accom- modate, we have found it advisable to place the appro- priate account at their disposal. Our plan is simple and it can be definitely controlled.

First, let me say that, in all cases, an application is taken in the regular way—and a report obtained from our credit association. We do not open these accounts promiscuously or in a haphazard manner. However, more consideration is given with regard to permanency of employment, salary and past paying records (where such records are available) rather than to ownership of property, bank account, etc., which to us, in most in- stances, would be a necessary requirement when opening a regular charge account.

A contract is signed wherein the customer agrees to make stipulated monthly payments. If the account is opened, a small “Letter of Credit” card is given to her. On the reverse side of this card is designated the amount to which she is permitted to charge.

This card is presented to the salesperson each time a purchase is made. The salescheck must be signed by the customer and the card sent with the salescheck to the authorizers who enter the amount of the purchase on the card, deducting it from the last balance shown thereon. In this way the customer has an up-to-date record of the exact amount she still may spend.

A “Letter of Credit” can be purchased in any amount from $15.00 to $100.00. The minimum monthly pay- ment is $5.00. Carrying charges are computed at the rate of one-half of 1 per cent per month for the life of

4

the contract, on the balance of the account after a down payment of 20 per cent has been made.

In the event full payment is made in thirty days the carrying charge is credited. The time limit on any con- tract is not to exceed six months. No additionals are granted on the original contract, nor do we issue a sec- ond “Letter of Credit” until full payment has been re- ceived on the existing agreement.

The customer may buy any type of merchandise. How- ever, if “hard merchandise” is purchased we still prefer to make arrangements on a regular lease, which allows more liberal terms and at the same time reserves our right of repossession.

The thought placed with the customer is that she alone controls the spending—we control the method of pay- ment—and payments must be made on the dates specified, regardless of whether or not the “Letter of Credit” has been used up to the amount paid in. This eliminates mis- understanding regarding collection.

Our Community Credit Policy does not permit news- paper publicity on this plan. We are permitted to use direct mail advertising, but no extensive campaign has been carried on.

Practically the only knowledge the buying public has received is from those customers who have availed them- selves of this convenience, or from our salespeople who are permitted to suggest this manner of buying. For this reason, we are particularly pleased with the mo- mentum it has gathered during its first year; and we are confident that, as time goes on, it will become more and more popular.

This indicates an eager acceptance of the plan by our buying public. Our increase in good will may in part be credited to the fact that we have been able to accom- modate friends of the store who heretofore were not able to meet our requirements for a regular charge ac- count and were, therefore, forced to buy from an insti- tution which offered the convenience of budget terms.

Enlightening facts: Loss incurred from bad debts (and collection expense) is surprisingly low. A fairly accu- rate count shows that three out of every five “Letters of Credit” represent a repeat on the plan. The number of “Letters of Credit” opened for our regular charge cus- tomers is nominal. Operation expense is no more than it is for regular or lease accounts. There has been no break- down in the term structure of our installment plan on “hard merchandise.”

Of course, it is difficult to determine the number of buyers who have been converted from a cash basis to the “Letter of Credit.” Those who may have paid cash in the past and now use our budget plan undoubtedly feel more at home in “the Broadway,” and we feel we have made it possible for them to concentrate their purchas- ing in our store.

The use of the “Letter of Credit” as an instrument for reestablishing accounts (providing circumstances per- mitted) which were formerly closed due to slow paying

The CREDIT WORLD

eo GO = +

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Tt

records, has been valuable. . have found most profitable. It has, in fact, exceeded all expectations. This, in itself, is sufficient reason for the existence and adoption of the “Letter of Credit.”

I have not mentioned that my information relative to the value of this plan has been gathered from a year’s experience on the firing line as a credit interviewer in our Credit Office. I have had no experience in other depart- ment stores and, therefore, believe I am free from preju- dice ‘toward conventional thought and practice which might have influenced me to harbor a more hostile atti- tude to this type of selling.

This type of business we

Author’s Explanation of Forms Various forms used in the “Letter of Credit” are reproduced in the plate on this page. Figure 1 (Form 236 “B’’) is a “Letter of Credit” card which is given to the customer. ‘This card must

accompany each purchase. On this card are entered the date, amount of purchase and

plans

(plus the carrying charge) and the payments as they are

made.

Figure 3 (Form 199) is the authorization card which, when the signature of the customer is obtained, is sent to the tube room. A/l the signatures on saleschecks must correspond with this signature, and the charge is autho-

rized from this card.

Figure 4 (Form 226) is the customer’s receipt book, which remains in her possession unless she desires to send In this case the

it in with a payment through the mail. payment is duly entered and the book returned to her. Der

Silver Anniversary—National Retail Credit Associa- tion—Spokane, Wash., June 15-18, 1937. Plan now to

attend.

No. DATE_ACCT. OPENED

WIFE'S NAME

BUSINESS ADDRESS

————

REOPENED

in the last column, the unused CLOSED rerse side | EW ADORESS eee SESS balance. On the reverse side oo Amount ot | Last Amount }-SiGNATURES OF AUTHORIZED BUYERS =) *.) of the “Letter of Credit” card are shown the number of the nee et account and name and address rien LOE of the customer. eee Figure 2 (Form 236 “A’’) NAME ADDRESS Limit is the contract signed by the weccccccnsnccocasncnooene pe cca a ssi biel eile customer; on this form all cred- - (3) its to the account in the form . of payments and returned mer- she < NAME Lome. chandise are entered. Posted » Gown Payee thereon, also, are the total oa —_—— ra rn ee SP i nce Cmanee amount permitted to be charged a ie crv (2) Bacance 236B 3M 12-19-35 » Teaws Ove Day OF EACH MONTH Baoinnine DATE : pram CHARGES CREDITS BALANCE “Ss Riwil) Mano TERMS DUE @) DAY OF EACH MONTH 2 DATE cuances | CREDITS BALANCE ACCT. NO. TRAN | iti 2 1 : it 2 : | 8 6 4 7 5 8 6 9 3 10 8 11 9 12 10 1. Ins. Desires 2. Int. Desits 3. JouRwaL Desits 4. Trans. Desirs 5. i 6. Ins. Crevits 7. Int. Creoits 6. Joumwal Crevits 9. Trans. Creoirs ©. Mose. Creoirs 12 resid img at BROADWAY DEPARTMENT STORE, Inc. hereinafter relerred to as the buyer, desires to purchase merchandise to the amount of & ___ at pha go ree hageny fan Ny no referred to as the seller, and juane to pay the amount THEREFORE in consideration of the seller issuing a certificate of credit to the buyer in the sum of 13 Gow the buyer agrees to pay the said sum together with a carrying charge of $__., 14 making a total of $________ on the following terms and conditions: 5 The sum of $..___..._ immediately and the sum 7 6 soon “the a day of each calendar month thereafter, until the total “16 uM amount of $_—__ in. pad ful 4 w essence hereof! 17 dg herunde ori tg ergrmane ot any condom heer the aur mays aptamer a fe v ww - purchases oxels Us inder immediately due > on oe so" vey rx ofr: obl: ae ote Ap action at law to collect any moneys herein 4. to be paid, the be: . c my —* 4 attorney fees which may be incur oy® y- sag eng cencsastte 9 THE A Fe y wp AE, if in connection with any such act 19 eo ius oneal pA ye ledge that there are no written or oral qugeeeantaaians or agreements other 20 Dated the day of 1” 21 Witness: 22 ' @BRoaoway OSPARTMENT STORE. Inc. a Se oe ee 24 Your CORRECT BALANCE 18 PRINTED OW oom ae Boon. ARE NOT VAI ALWAYS A 108 Soon wwene porwr " PAYMENTS, OR MAIL WITH YOUR REMITTANCE _———

DECEMBER, 1936

T IS an old saying that nothing undertaken is noth-

ing gained. So it is with the installment business.

A few years ago, the only type of stores that thought in installment terms were, for the most part, furniture stores. Now, most all stores or business places talk in- stallment terms.

For years, the firm I work for has been selling mer- chandise of both the so-called “hard line” merchandise and that of what some term the “soft lines’—on the installment plan.

We have not suffered any more by selling particular types of soft-line merchandise on the budget account plan (or installment account, if you want to term it that), than we have on the hard or lasting merchandise accounts.

We feel that if Mrs. John Public wants to purchase one or two blankets on a plan that allows her more than thirty days to pay for the merchandise—if her credit war- rants it—there is no reason why we should not grant her a Budget Account for the particular articles selected.

So Mrs. Public purchases her blankets and we set up a Budget Installment Account. She pays the required amount down (which would be based on the amount of the purchase) and if the amount is in the limit of say $10.00, Mrs. Public will have three months to pay for the blankets.

Some may say: “Well, that runs your Credit Office ex- pense up, allowing your customers to put such small amounts on a Budget Account, rather than a thirty-day account.” Perhaps it does but, even so, is not this more than offset by the additional business we place on our books ?

And remember, too, such customers, even on such a small amount, might prove to be very slow pay on the “open” type of account, taking perhaps five or six months to pay for the same article! On the other hand, the Budget Account, if properly opened, will be paid out in three months, exactly, according to the agreement or terms of the contract.

Then again, there are some of our very best customers on “thirty-day” accounts, who desire to have articles they may purchase, at different intervals, extended on a budget account, rather than charged on their open account.

Their reason is very easily explained: Incomes and sal- aries have been curtailed so drastically during the past several years that—for a great many people—it is not pos- sible to purchase articles that they may want for their homes (or even clothing, in some cases), and pay for them in one month’s time.

There are many desirable installment accounts today purchasing just such articles on the various plans that each individual store may have. They are proving to be good payers and regular buyers, while normally, but not

6

Successful Selling-- On the Budget Account Plan

By A. J. KING

Credit Manager, Scranton Dry Goods Co., Scranton, Pa.

in all cases, they might be rather slow “open charge ac- count” customers.

We have achieved some degree of success with the in- stallment type of account through the medium of what we consider a proper set-up, beginning with the opening of the new account, and the “follow through” until the final payment has been made.

This means that, when the interviewer takes the appli- cation, all conditions of the purchase-contract must be properly explained to the customer and, after the account is accepted, a collection follow-up should be provided, automatically collecting the payments according to that contract.

An important factor in this collection of the installment account is the time limit, or the number of months allowed the customer to pay for the articles purchased.

Notwithstanding the fact that we have no community credit policy in this city (something that the writer re- grets very much), our store owners do not allow the terms of other stores to urge them into “doing one better than their competitors.” We do not allow terms to sell our merchandise. ‘The merchandise is sold first and terms come after. Ours is a rigid credit policy, from which we rarely are permitted to deviate.

For the past nine years we have been very successful in selling men’s suits and overcoats (or topcoats) on what we term “A Man’s Charge Account.” We require a one- fourth down payment on this type of purchase. No car- rying charge is added if paid within three months.

(Note that I mentioned a down payment of one-fourth of the amount of purchase.),

We have also been doing the same thing on ladies’ coats, suits and dresses, subject to the same terms.

Some “Doubting Thomas” may say this cannot be done, this business of a down payment on every budget account of this type we open. I will grant you this, but I can say, also, that we have never lost one desirable ac- count, particularly of the men’s clothing type, because the purchaser was unable to make the down payment. In nine years of selling to men on the installment account, we could safely say that the accounts we have opened, without the down payment, could be counted on the fingers of two hands!

The only accounts that we have lost from time to time, when the customer has had no down payment, are those which, after being checked through the credit bureau, would have been rejected for credit.

In certain cases, the interviewer has consulted me re- garding a customer, who is adamant about not making a down payment. It is never difficult to explain the situa- tion to the customer’s satisfaction and suggest, at the

(Continued on page 8.)

The CREDIT WORLD

Explanation of Forms: Figure 1, application blank; Figure 4 is a letter sent on installment accounts which Figure 2, letter sent out when account is opened—accom- are nearly paid out. (Letter and idea taken from our

panied by copy of contract or lease. Figure 3 is an ad- friend, Dean Ashby.) One of a series of installment

vertising slip also sent out at this time. collection letters is shown in Figure 5.

SCRANTON DRY GOODS COMPANY

SCRANTON, PA

Scranton, Pa

®

- A eiate the prompt an uch we appreciate é ° A y in wnich you have met the peymecustomers which is nearly pe Wy ys aiKe Budget Accomm regard their business, bites ° urse ike neibility are very much apprec?® re

@

We want you to know how

businesslike wa.

you add to your Budget a! without your naving to me te nousehold needs an a transferring the en

4 to have ula be please Seeene it is entirely ones Nes ee h payment. You may purcha Bova will Pnarge it to your c m tire amount to & new contract.

We gratefully acknowled t i

ae ser ledge the Opening of a Budget Account a pao “> seieanent of your account

. ease bring this ¢ c it cel person, or it yee.aath ye pa poeta sco oe We will return contract whe coe pn nen Pe here is anything in the terms of

not accordin . : Please notify the undersigned wives Mead gg understanding,

is herewith en- you when making very truly yours, your payment enclose

SCRANTON DRY GOODS COMPANY

It is our sincer e hope that Dry Go P at you will alw Sivek ods Company to be of service and ee find the Scranton ¥y satisfactory, he merchandise en-

A, J. King, Credit Maneger

1 O

Wee 2 ewrewe ee eoeases:] ur APPLICATION FOR ACCOMMODATION ACCOUNT ond SCRANTON DRY GOODS Co.

Very truly yours, ome Fhe mtd m

Thanking you for this item extended patronage, we on of business and in advance for yo

SCRANTON Deyc a

NEW YORK OFF 220 W. 40 S Mewece oF Scranton

SCRANTON DRY GOODS COMPANY

SCRANTON. PA.

Credit will De extended.

© L

Do You Know As Much As You Should Know About The Scranton Dry Goods We are disappointed in not receiving a reply to out Company Deferred Payment Plan? previous correspondence regarding en overdue payment on your Budget Account amounting to F jousands of Scrantonians are ginning of the season when assortments are mplete. The anton Dry Inaemuch as you have failed to comply with our request pany Budget Plan makes it possible to forward your payment, the entire balance of your this end pay throughout the seaton. —° contract hae now become due and payable. uw may purchase furniture, rugs o other fur } e 5 R it Bureau ECONE Bedroom, Sunroom, Kitchen and Laund As a member of the Commercial Association Cred , res . jon end Leundry which is the central listing house for all credit in- = a ots, Men's ¢ ». W formation for Scranton and eurrounding territories, it ee soled danas Gigpanek Cox caw Gat gir de our custom to report all delinquent accounts to thea ment, and the bala ‘then pa for listing on their files and collection. Thie will ihe Galen’ weekly or monthly a necessitate vour name being sent in to them unlees the bine ns Se seaek Sie. at the Senta period balance of vour account is received immediately or businesslike aethed 6f adliag payments If you wish to open a Scranton Dry G definite arrangements are made to take care of the emount # of income, for these whe with to bud Cennie Siindod Recninat th wei dng s of your contract. get their expenditures for home improve ply inform the salesper after you ha nents and wearing appare selected the merchandise you d We trust you will make thie action unneceesery by for- so pailithies sdeetih hee havtaiad © tale cule te aa . warding us your remittance on receipt of thie letter. salar to bey ho ante cansse’s maply of oashs on your previews port a Very truly yours, ee ee ee SOME OF THE MERCHANDISE THAT SORANTON DRY GOODS COMPANY MAY BE PURCHASED ON THE DEFERRED PAYMENT PLAN a hy a Buffer Mirrors AJK:RGS A. J. King, Credit Manager Soran _ ol i= Linen

Hangings Weshing Mechines

ing Indow Shades Furniture rigerators Women's Apparel

DECEMBER, 1936

Successful Selling--On the Budget Account Plan (Continued from page 6.)

same time, that the merchandise be held until the down payment is completed or O.K. the transaction under the condition that payment be made during the ensuing month.

Another important item in “Successful Installment Sell- ing” is the medium of collections. It is necessary in some cases to allow extensions. However, we have never taken the line of least resistance but were always insistent that our customers abide by their contracts religiously.

We have tried to educate our customers to the fact that, once a contract is made, terms are rigidly enforced by us. Should the customer have a perfectly justifiable reason for extension of time, we do, of course, take the matter under consideration.

Suppose Mrs. Public, who is making a payment on her account, decides that she will make a partial payment. In such instances, our cashiers have been trained to refer the customer to the head of the Credit Office or one of his assistants, to explain the “why” of the partial payment.

In the majority of instances, Mrs. Public is loath to face the issue. So, rather than make embarrassing ex- planations, she miraculously discovers that she overlooked the fact that she has the amount necessary to make the complete payment!

We have found that by catching an account of this type on the first payment it is usually paid up according to the agreement. We seldom experience any difficulty in col- lecting the balance.

Our particular system of handling installment accounts, developed over a period of years, has enabled us to suc- cessfully maintain an average collection record of from 19 to 23 per cent on outstanding installment accounts. This should be adequate proof that the system has de- veloped into a successful one!

One form of procedure which has proved of material assistance in the collection of our installment accounts provides a follow-up notice to the customer, five days after due date of payment. Should additional notices be re- quired, they are mailed at 10-day intervals.

We do not overlook the fact that many of these in- stallment accounts are potential customers for other pur- chases at all times. We reopen many of them, shortly after they are paid out, by giving a list of their names to different departments, to work on them for purchases to be placed on a new or reopened budget account. A check of our records shows that it pays to do this.

Last month we gave one particular department of the store around three hundred names of closed installment accounts from previous months, and over 60 per cent of them were reopened for purchasés in that department, the amounts ranging from $10.00 up per account.

In closing, may I again state that, if we have the cour- age, anything is possible. Our records clearly show that we can sell any type of merchandise on the installment basis—and our collection percentages and our losses prove that it is successful. All we need in this day and age, to