8. A "business service" depart ill Cll t.—Among those who seem to have carried this work farthest, is the Moller and Schumann Company of Brooklyn, New York, varnish manufacturers. This company maintains a "business service department" under the direction of the credit manager. The object of the department, as stated by the manager, is "to help dealers in the conduct of their business by advice and counsel to avoid their going backward; to help them escape the courts; to avoid losing their money; in short, by suggestions and personal assistance, to help make them successful merchants." The Moller and Schumann Company makes use of its salesmen in its effort to discover cases that re quire the aid of the business service department. Each salesman is provided with a report form upon which he checks the subjects which, in his opinion, de mand attention in the case of the dealers reported on. This form is as follows: Customer's name Address Business I find this customer susceptible to suggestion and my ob servations indicate that he could profitably use the services of the department. I have x'd the points I consider ap plicable.
Accounting Delivery Systems Borrowing Money Insurance Cash Discounts Legal Cash Sales Partners or Officers Buying Taxes Collections Trade-papers and Organiza tions Credit Miscellaneous Dealer's Credit Rating The form contains a number of subdivisions of these heads, so that the salesman may indicate as nearly as possible what particular form of service he considers most necessary.
Upon the receipt of such a report, duly checked by the salesman, the credit man either visits the dealer in person or sends him a letter—preferably the former. At other times, when such a course seems desirable, the necessary information is sent to the salesman in the territory, who thereupon takes up the subject with the dealer by means of a personal call.
The department finds its services in demand chiefly in connection with such subjects as accounting, credits, buying and selling, insurance, taxation and legal matters.
9. Direct value of cooperation with customer.— Obviously work of this nature, when the credit de partment is in a position to give it proper attention, is of distinct value as a means (1) of developing the business ability of the more competent, thereby mak ing them better customers and safer credit risks, and (2) of tying these dealers more closely to the house that offers such service.
Mr. H. C. Workmaster, of Pittsburgh, writing in the Credit Men's Bulletin, of this phase of the credit man's work, says: Unfortunately the credit man who suggests such a policy is often met with the objection of expense; but my experience has been that I could secure enough business in addition to the valuable information I went after, to cover considerably more than my expenses, and besides being able to corral some overdue accounts which had stood as obstacles perhaps for several months to securing new business. One will be surprised at the number of "pick-up" orders that can in variably be secured in credit investigation excursions, orders which awaited the first man's arrival and which the customer had delayed in sending in.
Perhaps of even greater value is the information which by this means comes to the credit department of the wholesale house. In the words of Mr. Work A credit man has the golden opportunity of scanning with his own eyes the stock and character of the man with whom he trades his dollars, and is in position to note the actions and habits of the man in his own place of business. In many cases, by a little tact, it is possible to derive from him a statement of his financial affairs which can be compared with stock under direct observation. In not a few cases I have been successful in securing such statements after the representative for the reporting agencies had been flatly turned down. Why is this? It is not because more tact was exhibited, but because of the credit man's peculiar posi tion. He is able to make the approach from a different angle.
Meeting the objection that many dealers would re sent such an approach as an intrusion the writer con tinues: I have seldom left my customer with any but the best feel ings, and with the exception of a few cases, I have been able to approach my people and handle their business after such a call, in a more friendly and intelligent manner. I have been able, very likely, to make a very small account a stead ily increasing one.