The Credit Corner

By WlttlAM E. LOCKE.

Bill hos tought hundreds of independenlly owned ftrms, building rupply oullefs omong lhcm, how lo build solcs through credit selling, ond how to collecl receivobles. Bill'r progron ofters lhe deolcr ond his sfofi on the iob credil troining ond periodic supervirion. He hor eorned o mosl envioble repulclion teoching "professionol credit monogemenl" lo progressive reloilers during the lc:t I I yeors of his lotol of over 30 yeors in fhe field of reloil ond consumer credil. For detoils write him direct, 34Ol Bolboo Street, Son Froncirco 21, Coliforniq,

As a professional credit man-a consultant to various retail outlets assisting them in their dilemma between creating a a strictly cash sales outlet, or trying to meet the demands of credit buyers in their particular trade areas-I have listened to just about every human reason under the sun for granting credit. But they all have one thing in common. Each is struggling to meet sales quotas-and failing-find that "amateur" credit selling and collection methods moves merchandise while the cash register gets rusty from lack of use.

I'll never know why so many retailers fail to acknowledge credit management ag a profession. They seem to believe that their "amateurish" plan of credit merchandising is sufficient, and their judgment of people and their ability to pay should not be questioned. As a matter of fact, I believe there are businessmen who would rather go broke while defending their own judg. ment than admit oothere might be a better way'"

Why are these habits and attitudes so prevalent? It is simply defined. For too many retailers-especially those operating in smaller communities-are short sighted in their over-all plan to earn profits. Their obsessive drive to make sales causes an illusion of self-sufficiency, and they allow poor control of their credit department to persist because of what they o'think" of a customer, and not based on actual facts about the customer.

If you don't believe me, count the col- lection agencies listed in the yellow pages of your phone book. They profit from claims turned in to them by dealers not schooled in profitable credit selling.

The best all-inclusive advice I have for building supply dealers-selling at the r'etail level-is install a standard of credit management in your outlet as efficient and comprehensive as your inventory controls, budgetary controls, and then analyze your investment contained in the form of receivables as carefully as you would a financial statement.

If you don't believe that such analysis is necessaryo try trading an unsecured deIinquent account to your local banker for dollars. I{ you don't have these controls now-install them.

Publishers' Paper Co. of Oregon City, Ore., paper manufacturing subsidiary of the Times Mirror Co., Los Angeles, has purchased Kappler Lumber Co. o,f Mulino, Ore., for an undisclosed amount of cash, it was recently announced.

Kappler, with current annual sales of more than $I.3 million, will be operated under its present name as a division of Publishers' Paper. It's 14,000 acres of timberland will be integrated into Publishersn 80,000 acre holdings.

stocks.

Maintenance of gymnasium floors, often used for home shows and other community afiairs, poses a problem which lumber dealers can solve, according to Donald J.

Moore, building products sales manager, Masonite Corporation.

The sale of Masonite t/n, Tempercd Presdwood 4x8-foot panels to protect the floors is a solution to the problem and an excellent sales builder, Moore reports.

He told of one Indiana town in which 950 panels of the tempered hardboard were purchased by the Lions club, sponsor of a home show. Stored on dollies when not in use, the panels can be put in place in about four hours. They are taped together to keep dust from filtering through joints to the basketball floor.

Heavy equipment exhibited at the home show, which was attended by 20,000, had no efiect on the basketball floor because of the protective covering. In addition to protecting the softer and more expensive hardwood floors, the Tempered Presdwood provides a smooth, splinter-free surface for all school and civic functions.

When the panels are picked uP after such an event, the floors are restored to their original condition simply by sweep' ing, waxing and polishing.

Robert Johnston has resigned as Execu' tive Secretary of the Wood Products Asso' ciation of Hawaii, according to an an' nouncement by R. H. Grayo President of the Association.

Johnston returns to the Mainland to be' come Manager of Merchandising for the Weyerhaeuser Company in Tacoma.

Announcement oI the Association's new Executive Secretary will be made soon.