Page 96 - Past Chair Book-Pre 2020

10U The A’ational Supply and Machinery Dealers’ Association

This matter set for discussion this afternoon is one that is
interesting to all of us, and is of more importance than we usually
accord it.
The jobber is between two fires. On the one hand we have
the manufacturer who makes his terms net thirty days, or possible
two per cent cash ten days. On the other hand we have the
consumer who seems to think he is entitled to two per cent cash
discount whenever his remittance reaches us. I sometimes think
if we were to take our net profits at the end of the year (after
making just allowance for loss, depreciation and other matters
that enter into that account) we would appreciate this question
more fully.
Take it in our own business, our capitalization is small in
comparison with the business we do, but two per cent on our
gross business pays fifty per cent on our capitalization.
It has grown to be the practice of most people in the manu­
facturing business to allow two monthly statements, and I think
when buying we should insist on those terms. In selling goods
we cannot take that in consideration. Where we allow a cash
discount it is usually on monthly statements, and a man who
buys $100 of Armstrong Tools from us. takes his two per cent,
and we can’t separate those items. I think in buying it should be
the policy of this Association to demand two per cent, and we
could get it if we would work together.
In connection with this matter, there is another question of
charging interest at the expiration of sixty days. In.Cleveland
we have a local Association. We are not quite as liberal as our
friends in Pittsburg. Our terms are two per cent cash discount
if checks are received on the 10th of the following month, but we
have an agreement among ourselves that we will allow two per
cent on remittances that reach us on or before the loth, whereas
remittances reaching us after the loth are returned, and at the
time of return we notify the other dealers that we have returned
the check, and our reasons for doing so, so that other people are
prepared to do the same with the account the next month.
We have people who are willing to remit at the latter part
of the month, but we have talked them into remitting before the
loth.