Page 32 - Past Chair Book-Pre 2020

36 7 he National Supply and Machinery Dealers’ Association

been enough manufacturers who have taken this position to affect
all the manufacturers.
Manufacturers have their associations; they meet together
and talk these things over. I know some of our manufacturers
who are very willing to give us a liberal discount, and they tell
their associates and fellow members of the manufacturers’ asso­
ciation that it pays to give the dealer a decent discount. It not
only pays in increasing his efforts to get business, but prevents
the dealer from going to the wall in dull times. A great many
manufacturers state “We can’t afford to have our dealers do busi­
ness at a loss, because that means a loss to us eventually.” And
so I think that this movement is going to develop so that instead
of machinery merchants having a discount of twelve and a half—
I understand that was the minimum, Mr. Brown?
M r. B row n : T h a t was the minimum established at this
joint meeting.

M r. C i.a r k e : When machinery gets up to $12,000 or $15,000,
twelve and a half per cent might be more reasonable than on
machinery of less than $1,000. I believe the machinery manufac­
turers realize that they must give a liberal discount, not only to
protect their own business, but so that thfc machinery merchants
will try to get business. We have had one machinery manufac­
turer to come and say “Mr. Clarke, we know how you handle the
business; we are going to give you twenty per cent discount, and
there is no price to any one except the merchants, and We are
going to give vou twenty per cent discount to push our goods.’

I think you will find that feeling is growing more and more,
especially among the manufacturers who are making one ma­
chine only, a specialty. The older manufacturers who have their
business established have been very loathe to increase their per
cent from five to ten, and with these it will be more difficult for
the merchant to get his discount.
Manufacturers who are only making one line, one lathe or
planing mill, all those manufacturers of one line are seeking the
dealers, or the merchants, who will push their goods and give
them their business, and they are willing to pay for it, and I think
this Association can put it twelve and a half per cent or raise it