Page 92 - Past Chair Book-Pre 2020

S't) The National Supply and Machinery Dealers' Association

I think we would he very loathe to make any change, the action
of other dealers to the contrary notwithstanding.
The reason that we have reached that conclusion, and the
reason I feel we would continue to do that way is because we size
it up that the cash discount is nothing more than lies in a final
analysis of additional price. If there is any wav you can hold
your customer to ten days, or any other terms you may lay down,
you can figure on a cash discount and get it on a definite plan;
but the way goods are sold if you make an exception in any case
it is going through your entire sales, and it is coming out of your
hide.
In considering the question it seems to me at the present time
we have to recognize a condition that is going to be governed by
local conditions, and I doubt very much if it is anything that this
convention, considering the whole country, can handle.

M r. F aroi'MAR: The subject of cash discount, I think, is
one that has troubled us a great deal, and in our business (being
supplies and machinery both), it mixes things up somewhat, and
personally I would like to see the cash discount done away with
entirely, using our terms as a thirty day net cash, and no further

discount.
That would he my personal preference, but from general
experience it would seem to me that it is going to be very hard
work to carry it out—that we will have to antagonize our custo­
mers a great deal, and it will cause some feeling.
We have had, in a great many instances, letters written by
different customers stating that it is their desire to settle their bills
twice a month, and in doing so they have written to different
parties with whom they deal asking for a cash discount as of that
time, and a certain percentage has been allowed them.

( fibers will go on and say, "we prefer to trade with you and

keep our business as close as we can," and we feel it necessary to
get this cash discount which they demand.

We have to meet our competitors, and it strikes me that while
it might be desirable to do awav with this cash discount, if possible,
I do not believe it possible to do it at once, and rather than bring
it down to any one particular thing it would seem to me proper to