5. Customary credit practice in the boot and shoe terms upon which footwear is sold to the retailer are almost uniformly 2/10/60—sixty days net, 2 per cent, off for cash in ten days. In practice, however, it usually means 2 per cent for payment on or before the tenth of the month following. As a variant of these terms, 1 per cent for cash in thirty days, sixty days net (1/30/60) is sometimes quoted.
The foregoing terms apply also to "findings" or shoe store supplies, such as shoe strings, buttons, shoe blacking, shoe trees, etc.
The shoe trade is subject to seasonal influence, the heaviest demand occurring just before the Christmas and the Easter holidays. At these seasons it is often necessary for the manufacturer or jobber to extend the dealer's usual credit limit, tho the credit terms themselves are not thereby affected. Moreover, the seasonal demand frequently compels a manufacturer to fill orders a considerable length of time in advance of the stipulated date of delivery. Orders for fall deliveries, for example, are usually taken in the spring; and as these orders accumulate, it is often found necessary to begin making up the goods early, so that the activities of the factory may proceed uni formly and that its facilities may not be unduly taxed by an avalanche of orders to be filled simul taneously. Inasmuch as storage, insurance, etc., on finished goods add materially to their cost, it is a common practice for the manufacturer to select from among his customers those that are financially strong and well established in business, and ship them their season's goods in advance, while of course billing the goods at the date called for in the order. In this way the customer is given the free use of the goods for two, three, or perhaps four months, while at the same time expense is saved at the shipper's end.
It is generally well understood, however, that no agreement exists between the parties to ship in ad vance, the manufacturer reserving to himself the right to do so or not, according to his own convenience. In practice it generally means that the same dealers re ceive the same privilege year after year.
Rubber shoes and boots are commonly marketed by the manufacturers thru shoe jobbers. The latter, in turn, sell the goods to retail dealers on a December 1 dating, with delivery from April 1. A discount of 1
per cent per month is given for prepayment. To illustrate : let us say that a shipment of rubber shoes is made on April 1. According to the terms of sale the goods are billed as of December 1—eight months hence. If now the dealer, instead of withholding pay ment until the latter date, pays the bill at once, he is entitled to deduct a discount of 8 per cent from the amount of invoice. If he waits until May 1, he may deduct 7 per cent, June, 6 per cent and so on until on December 1, if he waits that long, he pays the amount without any deduction.
During that part of the year that lies between De cember 1 and April 1, rubber goods are sold on terms of thirty days net, or 1 per cent cash discount.
6. Customary credit terms in the textile business.— In its broadest sense, the word textile includes all goods that are woven, irrespective of the material from which they are made. Technically speaking, how ever, there are many divisions of this line—in fact there are frequently several branches within a single line. In this chapter only the more important divi sions of textile's are discussed.
Woolens (piece goods), used by "cutters-up" for suits and cloaks, are sold variously on thirty days, sixty days and four months, with season's dating, which is January 1 and July 1. If bought on four months the discount is 7 per cent, on sixty days 8 per cent (sometimes 9 per cent) and on thirty days 10 per cent. That is to say, on goods bought in August with season's dating, there is given 10 per cent discount if bill is paid within thirty days after Jan uary 1—in other words February 1. If paid on March 1, the discount is 8 per cent, etc.
Dress goods, woolens or worsteds for ladies' wear, are sold to manufacturers of cloaks, suits and dresses.
as well as to retail stores, tho of late years, owing to the increasing demand for ready-made suits and dresses, such goods are sold less extensively to stores than was formerly the case. The terms are usually 6/10/60, tho sometimes 7/10/60 are quoted. This means, in the former case, 6 per cent in 60 ± 10 = 70 days; and in the latter, 7 per cent for. the same period. Season's dating, January 1 and July 1.