All about coffee by William H. Ukers
14. Go over the selling prices of the various articles and see what
686 words | Chapter 135
are profits; then get busy in putting your selling figures on a
profitable basis and talk it over with your competitor as well.
_A Credit Policy for Retailers_
While the minor factors governing a credit policy for retailers vary
with local conditions, the fundamental principles are alike everywhere,
and should have the thoughtful consideration of all retail distributers
of coffee. After a retail grocery store experience of twenty-five years,
a past president of the National Association of Retail Grocers of the
United States[344] found that a grocer should insist upon references and
a thorough investigation of every new applicant for credit, refusing the
privilege when the prospective customer hesitates to give the needed
information; that he should arrange a date for periodical payments,
explaining that this is necessary so that the storekeeper can arrange to
meet his own bills, which will enable him to discount his invoices and
to sell his goods cheaper; that statements of accounts should be sent
out promptly and never a few days late; that he should insist on payment
in full when due, requesting the customer to call if an extension of
time is asked; that he should not let the customers decide when they
will pay bills, bearing in mind that the possible loss of a few
customers who do not pay promptly is offset by the advantages of cash
when promised; that he should never abandon the hope of collecting an
old account, but should try the method of sending statements only to the
surest customers, sending a clerk for the collection of all other
accounts; that he should personally examine all uncollected accounts
every month, insisting on a reason for failure to pay; that he should
study his customers and not trust those who give a bad impression; that
he should have the courage to say "No" when necessary; not to be
satisfied with merely a financial rating on a credit applicant, but to
ascertain his general reputation and character; and to help to eliminate
the "dead beats" by giving careful attention to all requests received
from other retailers for credit information.
_Premiums for Retailers_
House-to-house dealers are the largest users of premiums among coffee
distributers. Most of them operate under what is known as the
advance-premium method.
The plan followed by house-to-house dealers until about 1910 was to
issue checks redeemable in premiums after a certain amount of tea,
coffee, or other products had been purchased. This practise has not been
entirely abandoned; but in most instances, the premium is now handed to
the consumer in advance of the initial purchase, in consideration of the
buyer's promise to use a stipulated quantity of tea, coffee, or other
merchandise. The driver of the wagon generally carries a portfolio
illustrating numerous premium items redeemable through the purchase of
varying amounts of merchandise.
Many retail coffee stores also employ premiums, using both the old-style
and "advance" methods. This type of store, however, is being supplanted
by the chain grocery store.
Some independent retail grocers use premiums to a limited extent. These
usually carry a small line of premiums, featuring a piece of
kitchenware, or other inexpensive item, with bulk coffee.
It is significant that one of the largest chain-store organizations in
the United States--the Great Atlantic & Pacific Tea Company--uses few
premiums today, although its business was founded on the premium idea.
[Illustration: AN AMERICANIZED ENGLISH GROCER'S SHOP
Ernest Carter's store at St. Albans, England, operated under the name of
Thomas Oakley & Co., has a distinctly American atmosphere, accounted for
by the fact that the fittings were supplied by an American manufacturer,
the Walker Bin Co., of Penn Yan, N.Y. The tea and coffee department is
shown in the foreground. The coffee is roasted in the window]
Trading stamps, which are sold to grocers and other merchants by firms
making a specialty of this form of premium-giving are little used
nowadays. The average retail grocer is antagonistic to trading stamps,
as a result of the methods of certain unscrupulous stamp-dealers.
Legislation against trading stamps is in effect in many states.
[Illustration: SOME PACKAGE COFFEES THAT ADVERTISING HAS MADE FAMOUS]
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