Page 91 - Past Chair Book-Pre 2020

First Annual Convention

from the manufacturer to the dealer and from the dealer to the
consumer ?
P resident S trong : I do not think that is intended. It is
from us to our customers. That is my understanding of the
matter.

M r . O ’H a r a : I believe it has been customary in a great
many instances where a certain discount for cash has been allowed-
by the manufacturer to the dealer, that the dealer has given the
same. It seems to me from our experience that the terms of
thirty days net would control just as much trade as if a larger
cash discount was given, and that if the cash discount and a
thirty day net proposition could he worked out it would be more
satisfactory, but there are a number of people who are in
position to take advantage of every opportunity offered, and I
think if the members of this Association would agree on one-tenth
where they receive any discount, and where the manufacturers
who do not give anything are today opening their hearts and
giving one off ten days, I believe if the members of this Associa­
tion would agree to give one off ten days, it would be satisfactory
to the purchaser.

M r. C e a r k e : Is not there a distinction between the
machinery dealer and the supply dealer? Is not there some
difference in the attitude of the supply dealer? Has not the supply
dealer a much larger margin of gross profit? If the machinery
dealer is working on a margin of ten per cent, and gives us two
of it, he hasn’t much left if he is not able to get a corresponding
cash discount from the manufacturer. A good many manufac­
turers are taking the stand today that they will give no cash
discount to the dealer, and if the dealer gives two per cent to his
customer on those goods it does not leave anything.

M r. I>r a i )I,e y : My i m p r e s s i o n o f t h e q u e s t i o n o f c a s h d i s ­
c o u n t i s t h a t it i s s o m e t h i n g r a t h e r p r e m a t u r e t o d i s c u s s a t t h i s
t i m e .
As I try to think about it, I find myself very much embar­
rassed to arrive at any conclusion.
Speaking for the company I represent, I will state that it is
our custom to sell thirty days net, and allow no cash discount.