EDITORIAL

Are you sure the check's In the mall?

A S COMPETITION has grown fiercer in rell cent years, so has the need for stricter controls on company credit policies. Retailers and wholesalers alike are increasingly aware that all those beautiful gross sales numbers can turn to dust ifsloppy credit practices turn potential profit to actual loss.

Some suggestions to help you keep the dreaded red ink off the ledgers:

Monitor the age of receivables. Set standard responses at definite time periods, i.e., 30 days, 60 days, etc. Compare your collection and bad debt ratios to industry norms. Don't be satisfied with an average rating; work hard to be in the most efficient bracket.

Be strict when allowing volume or time discounts. Don't allow a customer to take a l0 day discount when you don't actually get your money for 15 or 20 days. Don't be reluctant to ask for payment up front, either full or partial, if

DAVID CUTLER publlsher

you think payment may become a problem. This bit of good advice, however, had best be tempered by actual circumstances, lest you alienate a present or prospective customer. Obviously, the better you know the people, the more effective your judgment will be.

Commissions to sales people can and should be adjusted downward if it appears they are selling to obvious credit risks or are not following company guidelines on credit. Encourage slow pays to respond promptly by offering cash discounts. If this doesn't work, try penalties.

Whenever possible, try to obtain personal guarantees. It may just keep the real flakes from hiding behind a bankruptcy.

Don't be put off by debtors' sad stories or less than 100% payment. Keep in mind that they ordered the materials and promised to pay. They owe you the money and they ought to pay. No ifs, ands or buts.

G-P Tightens Distribution

Georgia-Pacific has closed six distribution centers, consolidating operations into those of neighboring territories.

Ft. Smith, Ar.; Lafayette, La.; Dallas, Tx.; Oklahoma City, Ok.; Joplin, Mo., and Charleston, W.V., have been closed. The consolidation is part of the reQonfiguration begun last year after the'acquisition of U.S. Plywood and its distribution network.

The 152 facilities resulting from the acquisition have been consolidated with many sales territories reconfigured. Twelve DCs have been converted to Millwork and Specialty Centers and three to Manufactured Housing Centers. G-P now maintains 144 locations.

Dealers Go To Washington

Dealers attending the National Lumber and Building Material Dealers Association's 17th annual Conference with Congress, March 18-21 in Washington, D.C., will participate in several meetings.

Merle Mensinger, president; Earl Carpenter, chairman, and Ron Salvatore, building material association executives chairman, will preside at the Presidents Council for all elected officers March 18. Young Executive Society members willconduct a business meeting and seminar March 19.

NFPA To Study Bar Coding

Bar coding of wood products is being studied by an electronic information standards subcommittee named by the National Forest Products Association.

The committee's first project was the review of a survey of interest and/or involvement in bar coding of wood products with home centers, retail dealers, wholesalers and wood product manufacturers.

A mission statement has been approved with committee members assigned to five section groups: physical labeling; shipping unit code identification; price code identification; electronic data interchange, and product database.

Next meeting of the full subcommittee will be held during the National Home Center Show. March l2-15, in Chicago.

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