Many credit men have incurred the of the sales department by arbitrary rulings in cases where there was at least room for doubt in favor of the cus tomer. The capable credit man realizes that the real interests of the departments of sales and credits are identical. He knows that the success of the house de pends upon the profitable sale of merchandise, and he realizes that in the promotion of this work the two de partments are jointly interested, since the ultimate success of a department, like that of an individual officer or employe, is necessarily contingent upon the success of the house itself. The credit man should be among the first to recognize the necessity of coopera tion among all departments, and should be guided by it in his attitude toward the department of sales.
Perfect candor, a spirit of democratic equality and interdependence, rather than an attitude of isolation and superiority, should characterize the credit man in his relations with the sales department. An explana tion on his part of the reasons for his decision will generally go far toward removing any possible re sentment in the sales department. If there is any thing in the credit man's attitude that is antagonistic to the salesmen, it obviously hinders the necessary co operation, and to that extent constitutes a detriment to the business as a whole.
3. Attitude toward the customer.—It is, however, chiefly by his attitude toward the customers of his house that the credit man's value to the house is deter mined. It is his duty to make their dealings with his house so pleasant and profitable that not only will their accounts at all times be in a satisfactory state, but a continuance of their patronage may be expected from year to year. If the credit man's duties are in telligently apprehended and conscientiously per formed, he may even develop the customers' ability as merchants, with a view to obtaining for them a stronger position in the local field and a larger net revenue from their annual sales. Of the latter we shall have more to say presently.
Modern American merchandising methods do not tolerate the old maxim, caveat the buyer beware." The slogan : "money back if dissatisfied," today governs the conduct of practically every de partment store and of a large proportion of other re tail stores thruout the country. And while for obvi ous reasons it is not practicable for a wholesaler to permit a retailer to return goods at will and get his money back, yet good practice demands that the wholesaler stand ready to adjust, without question or quibble, any defects in merchandise or any loss which his neglect or error may have caused the retailer.
Upon the credit man the task of making such ad justments usually devolves. He should be able to make his customers feel that he is looking after their interests and that he will protect them in any dispute that may arise in which they have a real grievance. This confidence on the part of the customers goes far toward establishing and maintaining cordial and satis factory trade relations between the wholesale house and the retailer.
The credit man's desire to please customers must not, however, be permitted to obscure his views or af fect his sentiments with regard to the importance of observing the credit terms of the house—in other words, of meeting payment obligations promptly and fully. Nor should he ever assume the attitude of one who regards such promptness as a favor or as a mat ter to be governed by the convenience of the debtor. Strict observance of terms should be expected as a matter of course, and should be consistently reflected in the credit man's attitude on all occasions. Since a reputation for promptness in paying his bills is one of the strongest business assets a dealer can possess, it follows that if the wholesaler's credit man succeeds in instilling in the retailer a proper regard for such promptness, he is rendering him a distinct service. We shall see presently how such a policy may be car ried out in detail.
4. Mental qualities desirable in a credit man.— The position of credit man calls for a person of execu tive ability. He must, first of all, be observant. There are many avenues thru which credit information of one kind or reaches the credit man's desk. An apparently insignificant bit of news may have value as indicating the trend of things in a debtor's business. Such signs may be found in failure to take advantage of the cash discount or perhaps in buying in a new market, or in any one of a number of things the unusual character of which sounds a warning note in the ears of the alert credit man.
As an illustration of this ability to "put two and two together" may be instanced a case that occurred in a New York bank. A certain depositor, a small jobber in woolens, presented one day a dozen or more bills receivable for discounting. Among these was a note for $275 issued by a local house rated by at least one of the large mercantile agencies as worth be tween $200,000 and $300,000, and as being a "good pay." Much to the surprise of the holder of the note the bank's credit man declined the offering without explanation. Upon being pressed by one of the bank's officers to give his reason for refusing the note, the credit man said in substance: That the big house should buy of the small jobber at all is noteworthy. Under normal conditions such a house would have larger and better sources of sup ply. When therefore it turns to a small jobber for its necessary supplies, buying in small quantities and, of course, at higher prices, it throws out a strong hint that its credit is nearly, if not altogether, exhausted. This conclusion is strengthened by the fact that this well-rated house is compelled to give its note for the small amount involved. I conclude that if such a house finds itself unable to buy a small bill of goods on open account in the home market, it is upon its last legs and is tottering to its fall.