The Credit Corner

By WlltlAli E. TOCKE

Bill hos lought hundrcds of independenlly owned ftrms, building supply outlcts omong fhcm, how lo build solcs lhrough credit selling, ond how lo collecl reccivoblcs. Bill'r progrom ofiers lhe deoler ond his slsfi on the iob credit lroining ond periodic supervision. He hos corned q mosl envioble repulotion lecching "professionol credil monogemenl" lo progrersive reloilers during thc losl I I yeors of his lotol of over 30 yeors in lhe field of reloil ond consumer credif. For deloils write him direct, 3401 Bolboo Street, Son Froncisco 21, Colifornis.

A superior I once worked for, a credit supervisor with many years of experience, once said, 'oThe stronger and more efficient a credit department is the more chances the sales department can take."

How true that is. But" there are still far too many retailers, building supply dealers among them, who fall flat on their faces because they are constantly pushing their sales force for more sales, giying the sales force all the advantages of sales training, but not building close cooperation between the sales division and the credit division. Sales go up, and unfortunately, receivable outstandings go up. Big gross sales figures look good on the books and collection effort is slacked ofi to keep Mr. and Mrs. Credit Buyer coming back.

Credit managers and sales managers must build teams that cooperate with each other and be able to adjust to changing times and the changing economy. Sales personnel should be trained not only to make sales, but to ask for the cash at the time the sale is made. Surely, it's just as easy for the salesman to ask for the cash as it is the credit manager.

Judging from my experienceo the median income of semiskilled and unskilled labor is declining. Collection agency men from Seattle to San Diego are complaining that collections are getting tougher and tougher, and mention that these two groups are hard to collect from. Analysis of credit applications and investigation of delinquents I assist show more of their customers in these two groups. Take a good look at your receivables and see how many customers you have on the books that fall into one of these categories. Keep this in mind: most of the semi-skilled and unskilled are solely dependent on current income to survive.

Another reminder. Stop grgnting credit to working wives who are the sole support of a family. We all know that there are more working wives than ever before, but working wives contribute very little to family support.

I am of the opinion that more and more State legislation will be enacted from time to time in the hope of curbing credit abuses by both debtors and creditors. I believe that there are certain danger signals flying, and what it will take to spark another boom is anybody's guess.

Play it safe. Stop guessing which of your credit customers will pay, and which won't pay. No matter how large or small an operator you are, whether wholesaler or retailer, build your credit sales on facts!

G. Arnold Smirh Elected Eostern Regionol Vice-Presidenl of IHPA

G. Arnold Smith, former Tokyo representative for U. S. Plywood Corporation, has been elected eastern regional vice-president of the Imported Hardwood Plywood Association. Smith was recently transferred by the company to New York City as manager of U. S. Plywood's import-export department replacing John Pells who has been elevated to the post of director of architecfural services.

Its light, uniform color and soft texture have long made Ash a favorite with cabinet makers. Especially when they order fromHiggins-where they know they can get matching mouldings and plywood, plus lumber thicknesses up to 4". This isjust one of 52 expertly selected hardwoods you'll findat J. E. Higgins Lumber Company, 99 Bayshore Boulevard, San Francisco. For 83 yeaisNorthernCalifornia specialists in fine hardwoods. Let's get acquainted. Call us at VAleneia 4'8744.

THE RIGHT LUMBER FOR EVE