The Credit Corner

By WlLtlAM E. TOCKE

Eill hos toughl hundreds of independently owned firms, building supply outlets omong lhcm, how to build solcs lhrough credif selling, ond how to collect receivobles. Bill's progrom ofters thc deoler ond his stofi on the iob credit lroining ond periodic supcrvision. He hos eorned o mosf envioble repulolion leoching "professionol credil monogemenl" lo progressive reloilers during fhe losl I I yeors of his lolol of over 30 yeors in the field of reloil qnd consumer credil. For detoils wrile him direct, 3401 Bolboo Street, Son Froncisco 21, Colifornio.

I have had building supply dealers tell me that credit granting and collection procedures generally adopted in other mercantile outlets o'will not work" in their operation. Nothing could be further from the truth, for basically credit is credit.

In fact, lumber yards with retail stores should be more cautious in their credit granting procedures than many other types of retail outlets. Why? Compare your monthlv cash sales with your monthly credit sales.

By comparison, credit managers in furniturg appliance, motor car, television and radio sales outlets carefully evaluate the credit rating, character, stability and ability to pay of the applicant, even though thev are buying a repossessable item, and come up with a yes or no that can easily be related to good credit granting practices. Credit managers of these businesses want to be paid, and their decisions are not based on the fact that the item can be repossessed in the event of default.

Building supply dealers should adopt very careful credit granting procedures, for lumber, nails, paint, etc., can hardly be repossessed once used.

Furthermore, many of those I have called upon to assist were found to be actually gullible when asked for credit by contractors. Contractors requesting open book credit nreant big ticket sales, end sales took precedence over good judgment. No member of the dealer's stafi took time. or knew how. to discriminate between the speculator and the contractor with financial stability who was able to meet the demands of his creditors without depending entirely on his draws.

One firm quick to adopt sound and practical credit selling procedures, together with good relationship between the sales force and the credit department, is Willow Lumber Company of San Jose, California.

Manager Bill Mitchell, an excellent merchandiser and businessman. discovered that displays, modern store fixtures, well-stocked inventories and good salesmanship were not all that was needed to succeed. He had to be paid for what he sold. Since the store was enlarged and modernized several years ago, resulting in a larger stafi, better supervision was needed, especially contractor sales.

BILL SUTTLE

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As lVillow Glen devoted special attention to selling and building fences for individuals and contractors, management

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