i 5721 P9f; Rn si lias 3 v.? corre spoil- dence . >s^. .JS^ ^A^/^Ut^ryu^ ^^ ^UH ? ^m>- Prp4 fdfjff JAN 5 1925 JAN 2 2 192§ APR 1 3 19:|1 ^^f ^ ., - -r^S^ APf?i3^ APRl 81949 IWAR 2 4 195G -^'V4 I95b RETD BOOK BOX APRl9 195i.., _ i?i. i-"-f S£^i' Form L-9-2wi-7,'22 Gt BUSINESS CORRESPONDENCE VOLUME III HOW TO HANDLE THE DISTANT CUS- TOMER: 23 chapters and extracts from 2^3 actual letters on keeping in touch with the deal- er's trade by mail and getting business from re- tailers; how to open up new territory; how to bring in the money due; how to handle and eliminate complaints^ and make adjustments; and how to make the letter a factor in every phase of selling A. W. SHAW COMPANY Cass, Huron and Erie Streets, Chicago 299 Madison Avenue, New York 43-44 Shoe Lane, London, E. C. 4010G Copyright, 1911. by The System Company 1st Printing, July, 1911 2iid PriutinE. October, 1911 3rd Printing, April. 1917 4tL Printing. November, 1917 5th Printing, November, 1918 Gth Printing, March, 1919 7th Printing. February, 1920 8h Printing. July, 1920 9th Printing. April. 1922 Printed in U. S. A. ^ H ^ 3^^ CONTENTS S BUSINESS CORRESPONDENCE VOLUME III PART XI How To Get Business From Dealers Chapter Pack Putting Propositions to the Dealer in Letters • . 5 How to Get Business by Mail from Dealers » . . 17 Gretting Business from Four-Corner I'owns • • « 25 PART XII How to Open New Territory by Letter 52: Opening New Selling Fields by Mail . . • . 34> 63: How Manufacturers Drum up Trade for the Dealer . 41 64: How to Interest New Dealers by Correspondence • . 47 55', Building Up a Trade for the Retailer « • • . 54 PART XIII Usin^ Letters on the Dealer Trade 66 il Introducing the Salesman and Backing Him Up , • 60 57:. Keeping In Touch with the Dealer By Mail . . « 71 58: Cooperating with the Dealer in Campaign on Consumers 78 69: Wielding the Big Slick in Letters to Salesmen . . 88 60: Salesman's Letters That Keep Up a Customer's Interest 95 CONTEXTS PART XIV Collecting' Money by Mail How to Collect Mercantile Accounts by Letter How the Retailer Collects Accounts bj' Mail . How to Make Instalment Collections . How Petty Accounts are Collected . Collection Schemes for Use When Other Methods Fail Holdinfi the Trade of the Poor Credit Risk . 107 118 126 130 147 156 PART XV Handling the hong- Distance Customer Making Capital Out of Complaints The House Policy in Handling Routine Complaints Finding the Right Attitude Toward Complaints How to Systematize the Complaint Department How to Eliminate Complaints . . . . 170 177 136 196 bos Index ... ...... 210 Putting Propositions to the Dealer in Letters PART Xt HOW TO GET BUSINESS FROM DEALERS CHAPTER 49 IT is not the selling scheme cdone^ nor ilie special terms, nor tlie exclusive privilegey nor any of the other tricks in the salesman's pack that finally swing the dealer from the ** prospect^' list to the customer list; it is the MANNER IN wmcH THESE PROPOSITIONS ARE PRESENTED TO EIM. There is a right and a wrong method of approaching him by mail — o5 illustrated on the following 11 pages THE average manufacturer is so much in love with his product that he camiot get away from it. He con- stantly talks to the dealer of his article as an article while it is in reality a «)mmodity of trade. His most common as well as his most disastrous mistake in his selling argument is to lose sight of the great fundamental prin- ciple on which all dealer argujnents must hinge — the fact that merchandise is merely the vehicle by which profits are conveyed to the dealer. As long as the manufacliirer fails to adjust his viewpoint to that of the dealer; as long as he attempts to interest the retailer with arguments on quality and adaptability while he should be talking profits, sales, customers, his letters will fail in their mission. The reason is not difficult to understand. Stop and con- sider that the function the dealer plays in the world of industry is to supply a medium through which goods are conveyed from the producer to the consumer — that his function is to dis- ribute produce, not to use it — and you will understand why oerchandise as mere merchandise does not interest him. The KNOW THE DEALER'S PROBLEMS dealer's business is the selling medium, and his love b not for the game but for gain: he is looking for the profits that the handling of goods — the distributioa of an article — must offer him. If the article offers no gain, he is not interested. Come down to the every-day principle, that the dealer is just a plain, ordinary man, with the same inclinations, the same preferences and prejudices, the same degree of human selfishness that you or I or other men in business have; that if you offer him something by which to gain customers, trade, prosperity, he is interested, and your appeal will reach home. Thus it is evident that the letter which gets the interest and con^^nces the dealer, must adopt his point of view — must sur- • SSOqANCE OF PEM«ND GOOD SER'/lce SELUING ASSISTANCE NEW TEATUBES USE or GUABANTCE FBEE TRIAL ^Pff'WATE BnANO f exCLUSIVE TERRITORY FEAR or COMPETITIOM PRORTS vey his problems^, his troubles and diflSculties from his attitude. It must aim to solve the problems, lighten the troubles and lessen the difficulties"; it must attempt to supply the dealer's wants. And the manufactiurer who attempts to secure the dealer's interest or cooperation, without a full knowledge of the proper weight of these human qualities in the letter, will misa the point of contact Consider the importance of knowing the dealer's business, his problems, his condition, the trade influences affecting him, before you attempt to find a point of contact. The ways by which this point of contact . may be secured are APPEALING TO THE DEALER S JUDGMENT 7 numerous. You may play upon the dealer's desire for gain, his ambition for success, or you may work upon his sentiment. You may strike straight at his interest by inducement, or per- haps you may use pressure to force an entry into his good graces. You may even vi'ield the club of fear, and thus command his good will and cooperation. Then you may approach him with some original method, some new idea with which he is not familiar, thus first appealing through natural curiosity and then quickly swinging to your proposition. But in any case, you must apply the fundamental principle, that you aim to offer him something that brings him gain — that you seek to benefit him as well as yourself — that your proposition is mutually profitable. "I am," and "my goods are," is the gist of the letter that the average manufacturer writes to the dealer, while the basic idea of the letter should be, "What you can do with my goods," "The customers — the. profit — my goods will bring you," "Why you can handle my goods to your benefit." Tell the dealer that you can offer him trade, customers — that your goods will sell readily; and prove it, if you would gerliis interest. Tell him, "Here is a line of customers who want my goods," or, "Here are profits which you should be pocketing," or approach him with this argument, "I merely want you to distribute these goods — to supply a demand which I will create for them." These are the arguments to which he will listen, because they spell "more sales — more orders" to him. And this is the appeal that gets him in line. SCHEME 1— THE OFFEH. OF "MORE CUSTOMERS" A cigar manufacturer's letter tells the dealer, "Customers are included vsith the cigars. You may not want the tobacco — but you do want the customers. When you buy you get the men who smoke them, too; we deliver both. We make the cigars and the on the enclosed addreaaed post card and nail it today. Stand and cards will go forward at once." The guarantee of satisfaction reassures the dealer and the limited number of sets available is a do-it-now spur that induces the reader to reach for his pen at once. A clothing manufacturer put it up to the merchant in this way: " In this letter you will f inl a special offer cf a fine custom made suit of clothes free of C08t--'but this was not the message we started to give you. You need help in push- ing sales of clothes. When a dealer puts Sackman clothes on his shelves we help him sell them. We help him adverti88--send us lists of customers and we will write them letters and send theai etyle hoo'jilets. You want cuts for your local newspaper adver- tising to make it distinctive t»nd appealins and »:e will supply them for you. " But here's the poiiit--wa' re eoing to offer you more--for a short period. For tho next fifteen days we are go- ing to give with every two hundred dollar order of clothes, a fine tailored cult to the dealer FREB. Te will send samples of cloth for ycu to select from and promise you one of the hand- somest suits you ever wore. This offer is dated from August ■^enth. That means that to get the suit, your order miiat reach US before the twenty-fifth. An order blank ie enclosed. Sign the blank today and mail to ueT, Tomorrow ycu bfesin getting the eellln? service for tie clothes, and within ter. days ycu have a suit in addition r A present with every purchase of considerable size often plays up>on the dealer's desire for "goods that he can get for nothing." It has been proved in many instances that an 20 GIVING PRESENTS TO CUSTOMERS offer of a small quantity of the goods free tvitii the regufer orders of a certain amount, will swing the sale more readily than an offer of a discount or a cut rate equivalent to the value of the present. This is because of the impres- sion of inferiority carried by the cut price and special dis- count. To cut rates implies that there is not suScient de- mand for the product. Along this line of appeal was an offer by a soap manufacturer: "With o'T'ery twenty cases of our Violet Brand soap, we win give you on© case absolutely free Your sales on this ad- ditional case will 'brine you a clean prolit You will need fully twenty cases and by ordering that number at one time you will secure this valuable cresent " Still another scheme of giving presents with purchases of goods has been used by manufacturers. It is to offer a present with each purchase — an inducement to get customers into the dealer's store. This letter was used by a shoe dealer: "You want more customers. You want more eale8--and the profits they bring you. We have decided to offer a present with every pair of our shoes purchased in your store. It is a newly patented shining outfit. It consists of a box of the best grade Shinum on the market, a fine bristle brush and a lambs wool shiner. This is an attractive and valuable present. It la the very thing every shoe buyer wants. Your sales will Jump fifty per cent through the Inducement of this present and the quality of the leather and the workmanship In our shoeo will ■bring the customers back." To make the prize offer more generally effective, a special advertising campaign was outlined. This campaign was used as a fiirther inducement: "Your p^roflts on soap sales are limited. You can't «ell more soap without some inducement to bring in more buyers-- new customers. During the summer we are going to give away base "balls to the boys of your town who save our seals. They can't get the seals unless their mothers buy this aoap, but that free TRIAL OFFERS TO PROVE QUALITY 21 baseball (and It la well made) will have every boy teasing his mother to buy this eoap. Each cake of Pure Cream soap contains & seal. Five seals call for a baoe bell. These prize base balls are furnished by us and sent to you with the case of soap- -send In the order today and have every boy in town plug for your store. "Vo will advortlsa Para Cream soap and the free base balls In your local papers. Tou want to be one of the retailers handling it. The enclosed order blank includes the special offer. You need only write your name at the bottom and the trial case oj soap will be sent at once. Unless you want your competitors to reap the harvest of this caEpalgn, fill out the blank and mail to US today. " One of the most effective schemes for clinching the dealer's order is to guarantee sales — to OiTer him the privilege of returning unsold goods at the end of a certain period in case he so desires. A wholesale mercantile house, which aimed to put out a line of hosiery selling for more money than the average brands because of a new feature in its manu- facture, sent out this letter: "When you order a stocic of hosiery you never know just how long there will be a demand for that particular grade of goods. You may have to dispose of any surplus stock by selling at reduced prices, cutting your profits, and there is always the chance that you will lose money on the order "So certain are we of the demand for Elwood brand hosiery, which is made with a double wo-sen heel and toe that we are prepared to protect you ab3olutely--to guarantee you a sat- isfactory sale on Elwood brand and make this exceptional offer: We guarantee to take back all unsold goods, and refund your money at the end of the season, if you feel that you do not wish to carry them longer. " The dealer, given confidence by the guarantee from the manufacturer, is made to feci that he is taking small risk. The sale of the goods js practically assured and seldom are unsold goods returned at the close of the season. A thirty-day trial offer is one of the most effective argu- ments in a "selling campaign. It is an absolute guarantee that can be adapted so that it will not conflict with the working of any other limited offer or scheme of a temporary nature. Fol- lowing arguments consis^nt with good quality and economical 22 PLAYING UP DISTINGUISHING FEATURE value, this scheme frequently proves the final inducement to bring the sale. It adjusts itself to almost any product. A concrete illustration is found in the letter of a tooth brush manufacturer who WTote the dealers: "By accepting our 30-day trial offer, you can prcve for yourself that the Olire tooth brush is all that we claim for it. Just to convince you that it will aell even more readily than wo have claimed, we agree to fill thia order on a 30-day free trial taals. If for any reason you do not wish to continue selling thi3 brand of brushes after the 30-day trial--simply ship hack the unsold part of the order at our expense and mail us a check for the brushes you have sold. " There can be no more effective way of securing the dealer's confidence. He takes no risk, incurs no expense, and until the end of the thirty days may sell the article and collect his profits without incurring any responsibihty. A special feature or distinguishing characteristic furnishes a selling argument that is most advantageous, and manu- facturers frequently add attachments to machines or put on some new apphance with the primary object of pro- viding a talking point. The attachment may be something that is very seldom used, but it gives a distinguishing char- acteristic that tips the scale in favor of that particular ma- chine or device. A manufacturer whose sales failed to come up to expecta- tions added a distinguishing feature and wrote this letter to dealers: "A good safety razor must fill every demand of the man vho uses it or your sale will be small. Every good safety razor should be made to come apart easily in order to cleanse It. If it doesn't the razor will rust and your customers will bo dis- satisfied. The Sanito safety razor permits the ub-o of the blado as though it wore a straight, old fashioned razor, for" times when the man using it wants to trim about hie beard. -Cntil you have a razor with all these appliances you won't bo able to eell half the men in your town." GETTING DEALERS' NAMES FROM CONSUMERS 23 The dealer was plied with these arguments on the spe- cial selling features of the article, and in addition to the letters, all inquiries coming to the manufacturer from consumers as the result of the advertising were forwarded to him. Then the sale- clinching letter followed: "Sahlto razors come apart by sliaply preielng a small spring on ihd olde-and may "be cleaned and dried e&ally. It takes only a moment. The Sanito baa an aujclllary handle which permits the use of the h'lade as a straight razor. This makes it equal to every etoergferrcy. And icen vrill appreciate this fact. You want to eeli thi» razor; you want the additional salea and profits that a POPULAR RAZOK with a POPULAR FBICS will hrins you. " The special feature of the article rendering it more adaptable to the needs of buyers, may be played upon to get the dealer's order. The campaign of the razor manufac- turer is an example of how the special selling feature may be used. The scheme adjusts itself as readily to other devices. Through a direct appeal to women, a wholesaler of a new brand of codfish secured an effective approach for his letters to dealers. He offered a five-pound box of XX brand codfish to any one who sent in a cooking receipt. When a cooking receipt came from the housewife, he immediately wrote, thanking her for it, and explaining the proposition which hooked up with a selling scheme this way: "Of course you know that we nerer distribute direct to consumers. We send the prize box of fieh to dealers who distrib- ute them. So if you will send us tho name of your regular grocer wo will mail him the codfish and give hia instructions to deliver to you. *• In this way the name of the dealer was secured and a wide opening made through which to get his business. A letter ac- companying the prize codfish told the dealer, "We are sending you a box of our extra fine brand of codfish, which is creating so much interest all over the country, and ask that you give it to Mrs. Blank when she calls." Then a special proposition was made to the dealer, pointing out the desirability of carrying XX iu stock. 24 THE LURE OF THE "PRIVATE BRAND" A series of dealer letters followed the sending of a prize box of fish, and so eflFective was the approach that this par- ticular wholesaler sold over forty per cent of the dealers written. The scheme is not limited to one product. It is applicable to any food stuff sold through dealers to consumers. Originality in the letter itself is often effective as an order- getter. A Boston wholesale grocer employed a scheme in his letters to give an added impression of value to a brand of sardines which were purchased through a London broker. So instead of writing the dealers personally, he sent out letters over the signature of the London broker and on the brokers personal stationery. This letter recommended that particular brand of sardines, called attention to the whole- saler as the local jobber, and gave the dealer confidence. Then the wholesaler followed this up with a personal letter which produced the desired results. The foreign mailed letter held an unusual appeal to the dealer, and seemed to impress him with the fine quality of the sardines. As a direct approach to the dealer by the manufacturer, the offer of a "Private Brand" of goods is very effective. This scheme gives the manufacturer an appealing argument for his goods without preliminary creation of consumer demand. It offers the dealer an opportunity to adjust the goods to his particular business and to put his personal O. K. on the product. Price is also a strong argument in this scheme, since the manu- facturer is usually willing to quote a lower price when a con- siderable quantity of goods are sold under contract. While this scheme may or may not be backed up by an offer of the manufacturer to aid the dealer in turning the goods by advertising, circularizinrj or store display, it is usually a strong inducement to clinch the dealer's business. Although it is evident that every scheme for getting the dealer's business must be twisted and moulded to suit condi- tions in the selling field and in the manufacturer's business, these examples outline the fundamental principles of several successful campaigns. Getting Business From Four- Comer Towns PART XI HOW TO GET BUSINESS FROM DEALERS CHAPTER 5 1 IN EVERY state there are hundreds of Utile coun- try merchants f situated off the main highways of business^ w}wse orders most manufacturers and jobbers never solicit. These are the obscure cross- roads dealers on whom salesmen seldom call because of the difficulty of reaching them. Al- though 'practically inaccessible, each is usually in the heart of a prosperous farming community — the center of a cluster of homes. Yet a great bulk of his trade can be handled by mail— by methods explained in this chapter TAKE your map of Illinois, or Pennsylvania, or Nebraska, and run your finger down one of the railroad lines. You will find familiar names that appear on the salesman's order blanks. But on the branch lines and in the open spaces in light face type you will find Roseville and Middle Creek and Brown Center. Look up their population and you will find their inhabitants number anywhere from twenty to two hundred and twenty. Your order blanks show no records of sales in these towns, or at most records are widely separated. The business of the four-corner town merchant has not been extensively cultivated by the majority of manufac- turers. His stock is usually so meager and his orders so small that an expensive salesman's visit is not warranted. Then the salesman usually steers clear of this class of deal- ers for the trip over country roads requires too much time. 25 23 WHERE TO GET USTS OF SMALL RETAILERS Frequently it would be necessary to insist upon cash orders, for the merchant may not be rated, or his rating may be too low to allow a line of credit. But the small dealer's business can be secured, provided he is solicited in the right way. In fact, here is a large field, entirely neglected by hundreds of concerns that might get in on this extra business if they went after it in an enlightened and systematic way. It is a primary necessity, however, that the product is one for which a demand already exists or can be easily created — staples that are in use everywhere. Practically all this businiess is now secured by general mail- order houses, simply because they are the only concerns that have made any real effort to get it. There is no reason why the manufacturer could not adept the mail-order plan of getting this business and thereby add a desirable outfet for his goods. He can organize a small mail-order department as an adjunct to his regular selling plan. Nor is this a difficult problem. It b highly profitable, because the selling costs are so small. To start such a department you must have the names and addresses of dealers not reached by regular salesmen. Then you must Ikt and classify these names. Names may be copied from mercantile agency books but they list the names of only the larger merchants. A more detailed method, though more thorough, is to write to bankers, or newspaper men, or railroad station agents, and ask for the names of storekeepers removed from the main business centers. The merchants must have dealings with some bank in the adjacent town, they must get supplies from railroads, and they often advertise in the coun- try papers. In asking for the names it is well to state frankly the purpose for which you want the names, for while country business men are usually very accommodating in such matters, they are suspicious of city business methods. Some concerns pay a small sum for lists of names or send some souvenir that the recipient will appreciate. A third method is to advertise for names. With maga- zines as a medium, one sales manager used this copy: "This ofTer is for small town retail merchants," and then fol- lows the specific proposition; "If you have trouble in getting trade, or if you have difficulty in holding customers, I can help you. My business is supplpng Small country merchants with THE PERSONAL VERSUS THE FORM LETTER 27 helpful hints on how to attract trade by window and store dis- plays, and how to hold trade against the competition of city bargain counters. There is no charge for this information which includes a 200-page booklet telling how to run a retail store successfully. Write for the- booklet." The names of merchants who asked for this information form the basis of a prospects' list. The names must be classified. The best method is to list them on cards, to which may later be added such special in- formation as specific business conditions, shipping routes, literature used on each customer, and sales records. PRtPAAATlOM RCACHING SMALL DEALERS BY MAIL INOUCfNO.OAOCnS f 1 1 1 ci.*9^>.'n. From chewing gum to automobiles, the exclusive selling rights have a povv'crful appeal. The more widely advertised the particular machine or brand or trademark, the more ready is the dealer to take advantage of this publicity. Here is the v/ay a manufacturer approaches the dealer with an exclusive selling representative proposition: Sear Sir: Vou would not be justified, of course, in selling our eafety razors unleaa you could make la«rger profits than you are tion making. But if you were convinced that you could make from 10^ to 20^ more profit than you are makine at present, you Wouldn't hesitate a moment about taking on our line, would you? Well that's exactly what you can do with our safety razors. Remember, when you buy of ua the transaction doesn't end with our sending you the razors. We actually eeli the razors for you. First, by the enormoua magazine advertlslne which we are constantly doing and which will cause people to oome to your Store and ask for our razors. Second, by use of printed matter bearing your came and address which we furnish you free of charge. Finally, be;ar In mind that you will be handling goods With a reputation, and the very fact that you represent us in your locality will add to your prestige, and this means dollars to vou. If you place an order for two dozen safety razors wo will give you the exclusive selling rights in your city. The demand will bo created; it is certain to grow. Are you going to profit by this businoos or is your competitor? Why not make the start to-day--you'll never regret It., Yours for greater profits, SAHITO SAFETY RAZOR CO. PLAYING UP NOVEL TALKING POINT S i9 Aside from improvements, better quality, and exclusive scll- intr rights, there is the opportunity to interest the dealer in some new article, such as a firelcss cooker, or the vacuum cleaner. Here again the manufacturer has an abundance of material for talking points, as progressive dealers are always ready to take advantage of a growing demand. Frequently the dealer can be waked up to some new oppor- tunity. You may be able to point out to him the way to de- velop some additional line of trade, A manufacturer of automobile accessories opened up a good territory by the application of this idea. He learned that a new macadam road, then under process of construction, would materially lessen the distance between two cities. It would inevitably become a popular route for automobiles. He immediately secured the names of hardware dealers in the towns along the route, and began an educational campaign. The significance of the new road had not occurred to them. He wrote : "Your new macadam route Ijetween B and W will te completed early in the summer. Think of the great field that will he opened up to automohilista hy this road. B is a city cf half a million, with over ten thousand machines used solely for pleasure riding. It la a safe estimate that half the auto- mohiles owned in these two cities will use your road every month. "You can see what a demand for automohile accessories and supplies will be created. You are naturally in a position to- supply th.i.s demand. You want the additional husineas and the fine profits that the sales of automohilo accessories and sup- plies offer. You can easily arrange to install a small depart- ment in your husiness place for such stock. " And then the letters pointed out the special advantages of the particular line of accessories offered. As a clincher the manufacturer wrote: / "You don't want to wait until others have estahlished a trade with the automobilists. You want to be Just a little ahead of the other fellow3--you want to get the jump on them and get your name among the motorists as the best place in the ter- ritory for supplies. Here is a list of accessories that you will need at first. Check off the amounts of each article you want tand mail the list today. We will send complete instructions re- garding the best way to arrange your stock and handle the business. " 50 SHOWING THE DEALER HIS OPPORTUNITIES In this way the manufacturer played upon the prospect's appetite for more profits and his desire for business that might go to his competitors. Thus he opened up an entirely new territory by being before-handed, by educating the dealer and getting the order before the other manufacturers woke up to the situation. A free trial or an order placed at the risk of the manu- facturer appeals to the dealer no less than to the consumer. The manufacturer of chewing gum successfully approached the retailer from this angle: "You probably have been selling gum, but you had to pay for It whether you could dispose of it or not. I'm not going to ask that of you. I merely want the privelijge of displaying my new gum on your counters, that you may see how readily it will sell. Merely sign the enclosed card, telling me to send you a trial order, including a large glass display case. Put the gua in the case; put the case on your counter and watch it sell. Whsn the trial order is gone you collect your profit and pay ms for the gum. I will give you the glass case." Then the manufacturer added, to this guarantee of selling profits, a hurry-up clincher: "This is a ten-day offer. Order NOW while there is an opportunity to try out this gum at our risk." This selling feature was an almost irresistible one. This guarantee of profits encouraged trial orders, while the gift of the display case kept the goods on the counters within easy reach at all times, and the gum sold itself. Within a year that chewing gum was known almost universally. No other selling medium than letters was used. The prize-with-customer-sale plan is another effective approach. It was used effectively by a large western soap, manufacturer. He wrote the dealers, offering to give their customers handsome prizes for various amounts of soap pur- chased; "Each cake of soap will have a coupon, and for every twenty, forty, or a hundred coupons turned in, you are author- ized to give a valuable present. We will supply the presents. They will be sent to you with the trial order and you can display them in your store. They are handsome presents and will bring intomany new customers your store. FEIEE DEMONSTRATIONS A INIAGNET 61 Something for nothing always attracts customers. Offer them a prize with a certain number of purchases and they will keep buying until they secure the present. Dealers know this. Therefore, when you offer the dealer a legitimate profit on his sales, plus presents for his customers, he is interested, for the inducement is something tangible — it will draw trade to his store. In addition to the usual selling argument used, one manu- facturer of a mechanical device offered to give the dealer a delivery cart, made to represent the article. "This cart will be a constant reminder to your customers that you sell this article, and it will be a continuous advertisement for you," Concerns making food products have found the free dem- onstration proposition a winner with many merchants. If the firm is trying to place a new breakfast food or a brand of canned goods or a beverage, the merchant may be induced ta put in at least a small order on the strength of a demonstration which the manufacturer will conduct at the store. A personal representative will take charge of it; the demonstration will be advertised in the newspaper and by personal invitations to the ladies to call and sample the product. No man- ufacturer goes to the expense of such a campaign unless his goods have merit that will lead to sales. So if the mer- chant is not asked to lay in too big a stock, this proposition is almost sure to get his name to an order blank. Frequently a manufacturer will try to secure some local influence to help push his goods onto the merchant's shelves. An advertising contract dangled before the eyes of a news- paper man will usually induce him to use his influence with a local dealer to add a new hne: "Would you like a contract for 350 inches of roofing advertising? This is all new busineeQ. busineso that has never been placed in weekly papers before. Electros of the ads are furnished; you will be at no expense in handling this high class advertising. "If you want this business, go to some local dealer and get him to place an order for 100.000 feet of double strength roofing. This is the best roofing ever placed on the market; it will be easy for any dealer to dispose of this amount in a few weeks but he takes no risk, for the manufacturera will buy back at the end of the year all unsold material. " 62 WORKING THROUGH LOCAL ORGANIZATIONS "And if your paper makea good on this advertising it will be a year-in and year-out source of income. The whole thing hinges upon your confidence in your own medium as a method of selllns roofing." Such propositions are usually made through an adver- tising agency and the newspaper man 13 often glad to act as salesman, for the advertising is "velvet" — business that he could not otherwise get. Then, too, he wants to stand well with the agency in order to get its future orders. The dealer is usually anxious to curry favor with the press and will go further for the local newspaper man than for any salesman the manufacturer might send out. Sometimes the agency writes to the dealer at the same time to pave the way for the call from the newspaper man: "We are getting ready right now to sell more roofing in your section than has ever been sold there before. Some dealer can pocket the profits without HISKIHG OSB PEH2JY. Scores of new customero can be brought to your doors asking for Double-atrengtli rorfing. Do you want then? Your competitor's customers will ccae to you looking for Doubla-strength. You may be able to make them your customers on other lines as well. Do you want tha opportunity? Only one man in a town oan sell this roofing. That means that if we form a connaotion, tha undivided profits from the e&les of our gooda are yours as long as we stay to- gether. You are the only man wo havo written to because you can handle the distribution most conveniently." Occasionally other local influences are^ available. Manu- facturers in unionizing a factory frequently get the local labor leaders in strong union towns to bring pressure to bear on the merchants to handle their goods, and in many places this is a powerful influence. In rural districts the manufacturer may be able to work through some grange organization, and if some prominent individual can be induced to try a new machine or device or line of goods, his name as a reference carries weight with the dealer, and the same argument by which the manufacturer induces the retailer to put in a new product b available for the merchant in moving the good.s. Dealers are almost always impressed by the pubhcity given to any widely advertised article. Many manufacturers con- THE INFLUENCE OF IVIAGAZINE ADVERTISI NG 63 cede that the principal benefit to be derived from expensive magazine advertising is the effect it has on the dealer, for oa the strength of these big appropriations many retailers are in- duced to lay in a stock of goods, the only advantage of which is the wide publicity given to the brands or trade marks. Man- ufacturers try to persuade the merchants to put in a stock be- fore the first gun of the campaign is fired, but there are some ■who never climb into the wagon until the procession starts. Here is the way one manufacturer wrote to his luke-warm prospects just after a campaign had started: "last week the houee advertised in all the leading nagazines. Special French Edge Mattresses, full size--60 poundS'-regular price 030.00 at the reduced price of $16.60 each. I know froic inquiries thet a display in your window will bring in the sales and profits to you. To insure you a good profit, I can quote you--on lots of twelve. "This offer is limited, for our whole purpoeo at thla tiae is to get a live dealer in each tcvn. If you don't want to handle this line, someone else will, so we can't he expected to hold the field open in your city. It neans profits to you if yoo get husy now Write at once or telegraph at cur expense." Exclusive rights, the money-back-if-not-sold proposition, free advertising* in some form, or a demonstration, first in the field with a new article, pressure from some local source these are the methods used by manufacturers in campaigning to get the dealer. Special inducements or outside influences are the forces that move the retailer. The proposition is always viewed from behind the cash register and the manufacturer has a hard road to travel in introducing his new product unless it has some ob-\nous advantage, some convincing talking point or a selling margin that will magnetize the retailer's store and attract customers for that particular article. Building Up A Trade For the Retailer PART XI I HOW TO OPEN NEW TERRITORY BY LETTER CHAPTER 53 THE SHOP-KEEPER naturally buys the ''lines'' that he can sell most readily; his greatest profits come from the goods for which there is the biggest demand. He gives preference, therefore, to mer- chandise for which the market has been created. The manufacturer who assists the dealer to create the market paves the way for future orders. This is one way of doing it MANY manufacturers seek merely to get their goods on the merchant's shelves, depending entirely upon the efforts of the dealer to sell theni, and order more^ If their products are new or possess some conspicuous merit or improvement, this may be sufficient, but with the staples, where competition is keen, many manufacturers are not con- tent to await the slow growth of trade built up by merchants who have no incentive for pushing one Une in preference to others The ambitious manufacturer is not only willing but anxious to help the merchanL He wants to stimulate the demand for his goods; he is ready to spend money in adver- tising in giving demonstrations, in distributing samples — any- thmg to bring his products to the favorable attention of the public. The first step is to secure the cooperation of the dealer, and the offer to conduct a local publicity campaign is usually a lever that brings the desirable merchants into line. The most familiar scheme is to supply the dealer with a stock of samples, provided he agrees to distribute them and to carry sufficient 5« THE DISTRIBUTION OF FREE SAMPLES 55 stock to take care of any demand that may be created. As the manufacturer finances the campaign, the merchant is in the position of having little or nothing to lose and much to gain. The work of distributing the samples is slight compared to the benefit he derives from bringing so many possible cus- tomers into his store. When his interest is enlisted the merchant can help the cause along by furnishing the manufacturer with names of customers and prospects. Frequently his own sta- tionery is used to give the letter to them a more inti- mate tone. Another great service the dealer can render is in handling the samples. For instance, the recipient is much more favor- ably irnpresscd if the merchant reaches up to a shelf and takes down a sample than if he dives under the counter and drags it forth from some hidden box. Then, too, a casual word about the quality of the goods or calling the recipient's atten- tion to some new feature leaves an impression that is hkely to germinate into a demand for something more than a sample. These little points are urged upon the dealer as his share ia making the campaign a success. SCHEME 1— THE CARD THAT IS EXCHANGEES FOR A FREE SAMPL^ These preliminary steps having been taken, the manufacturer goes out to round up possible customers. Here is the letter sent out by the distributers of a new brand of coffee: Dear Uadeua: Will you let us ohow you shat dellciouo coffee 25 cents a pound nill buy? Then get a package of B. B. brand and try It at our risk. You would scarcely believe that such delioloua coffoa could bo sold at 25 cent3--unle83 you happened to know that the flavor of coffee depends largely upon the blending. The blending of coffee has been a life study with us. We know just how much of ono kind to use for richness, of another for delicious flavor and of a third for its exquisite aro.vi. The result la the B. B. blend that wo want you to try. 56 COUPONS AND CERTIFICATES The B. B. is sealed in air tight packages while crlep from the oven. Our roaeter, a nan of thirty years' experience, can toll you, by the look of the coffee berries, just how much lieat 13 necessary to bring out their full flavor and fragr&nce. The Central Grocery will' handle the B. B. coffee, and «e have instructed the proprietor to give you a sample package with our complimentB. Tailce it home and try it--that i8 all wa ASk. Remember you can purchase a pound package for 25 cents. If you like the sample, try a full package, and remember that if you are not entirely satisfied that it is the most delicious coffee you ever tasted for that price, one word to tha Central Grocery and they will refund your money. Don't be satisfied until you know what delicious coffee your twenty-five cents will buy. Very truly yours. Samples promiscuously handed out or piled up on thQ coun- ter or in a basket with a "Take One" card, do not begin to bring such results as the samples that are judiciously distributed after a letter has interested the recipient in the article. This lure of the free sample appeals to the men no less thaa. to the women, if the article is something they use. Distributers of tobacco products use this method frequently. After a dealer has been secured in a place, a company sends out the following letter to known smokers of the better grade of cigars: "Wouldn't you like to find a cigar that combines Just tr.e right blendlnR to give it aroma and fragrance, without the usual weedy taste? These cigars ere made of the finest selected Havana leaf --but we shall not try to describe them- instead wa ere going to give j-ou one, just a sample, that you may try it, without spending your Boney, and judge "for yourself. Go into Brown'9 store tcmcrrow noon after lunch snd give him this coupon, Ee will hand ycu e cigar with cur ccmpllments. ° Such methods are more expensive, but they bring results.. The letter can be depended upon to pull the prospect into the store for the sample, and ha\ing done this, it has accomplished, THE "REFUND" IS REASSURING 57 its mission. Future sales depend entirely upon the quality of the goods. Frequently a coupon, which the lady can exchange at the store for a sample package, is enclosed. Here is a letter that a large manufactxirer used extensively: Dear Hadaa: Tho enclosed card certificate entitles yoa to e fullr sized can of Harvey face powder--ABS0LUT2LY JTIEB. The Harvey face powder matee a wome.n'e complexion snooth and velvety. The ekla does not looe ite youthful at- tractiveness: it eeene to be impervious to exposure. The eua ind wind have no terrors for the woman using Harvey**. IT prevents that oily, ehiny appearance and counter- icta the disagreeable offoots of perepiratlon. If this were merely an empty clala we could not afford to give you a full-sized sample package free. We know that once you have used Harvey's you will insist on having It always at hand. To secure this free package ell you have to do le to present the certificate to the Pioneer Drug Store which will handle all the Harvey toilet preparatlono. RTafTIMBlgl this offer is good for three dayt only. Very truiy yours, nXRVSTi TACS P0TE3ra CO. In this case an elaborate certificate was filled in with the lady's name, and emphasis was put on the time limit of the offer. Both of these things enhanced the importance of the sample, and practically all the coupons sent out were presented at the drug store for redemption. SCHEME ?— THE OFFER TO REFUND There are manufacturers who contend that the sample dis- tribution is too expensive and that as good results can be ob- tained by emphasizing the satisfaction-guaranteed feature. And many have found that a letter will pull trial orders if the money- back-if-not-satisfactory offer looms up promineatly enough. 58 THE "MONEY BACK" PROPOSITION A large coffee house found this method effective, but made the campaii^n more personal by mailing out letters on the dealer's stationery over his signature w-ith a hard and fast guarantee to refund the money for every package that did not prove absolutely satisfactory: "You will find any grade of coffee here you want; we carry all the well known trands. But jxxet now we want to suggest your trying a package of Eupero--a new trend that seems to us to have just the blending to make "it popular with those who want the test. "Of course you may not like it for tastes naturally differ. But eo confident are we that Supero will please you that we will take back broken packages and refund the full purchase price, if you are not satisfied. "We know some coffee will come back for there is noth- ing that will please everyone but we are convinced that ninety- five per cent of the trial users will be delighted with it. That is why we make this absolute guarantee of satisfaction. "May we not Include a package with your next order for groceries?'' The manufacturer of course has to back up the dealer in the refund without question, but it is assumed that no one makes such an offer unless he is reasonably sure that the product will caxry satisfaction. In these schemes the letter forms the keystone of the pubh'city campaign. It is the most formidable agency in opening up new territory, but it must be used with care to direct every letter to a likely customer and thereby avoid costly leak- age. Create the demand and center the pioneer work on a single dealer — the demand will then force other dealers to put in the line if it is a staple that can be handled by different merchants. SCHEME 3— PRIVATE DEMONSTRATIONS There are products that cannot be advertised by samples or by a public demonstration, but this does not prevent manu- facturers from doing effective work in bringing customersl .to the dealers. LETTERS THAT EXPLAIN •■HOW" 55 The manufacturer of automobiles uses personal letters extensively to round up prospects and get tliem to call on the local dealer or representative. These letters bulge with "reason why" copy, showing how easy it is to maintain the car and how cheaply it can be operated. Here is part of a letter that points the way to the dealer: "The Klngley is not an assembled car, tli3 parts comlns from all parts of the country. Every part except the magneto and the tires are made in our own plant or expressly for us. "The raw materials and the finished parts are 8ubmi-tte4 to the most rigid teats and the most careful inspection. Hor ■are we satisfied with a floor test; every completed machine l3 thoroughly tested on the road,. "But It is hard to carry conviction by letter — go to Ur. Wallace, our local representative, and ha will gladly give you a convincing demonstration. Or teleohono Central 689 and .ha will call with the machine. "We are glad of this opportunity of writing you but V9 don't Bell machines by letter--the other fellow may be able to write Just as good a letter but he can't show you such a reli- able, durable, economical machine at thia price." The letter to the consumer must play up quality, merit and spe- cial advantages offered. The dealer sees only the selling feature,, but the consumer must be reached from the angle of desirability for some specific reason. If you can show the dealer that your goods have "convertible" qualities there is littTe trouble ia opening up new territory by letter. If the article has novel or distinguishing features they can be utilized in interesting the prospect; otherwise the sample, the free trial and the satis- faction-guaranteed arguments must be brought into service to interest the consumer and pull him into the store — all that a letter can be expected to do. Introducing The Salesman And Backing Him Up PART XIII USING LETTERS ON THE DEALER TRADE CHAPTER 56 THERE WAS a time — and not so very long ago — when a salesman was given a state WMp arm told to go out and get the business. But today ^ the pro- gressive house assists the salesman by a care- fully planned LETTER CAMPAIGN. If it is a new housey it secures a list of prospects and introduces itself by maily gives information abovi its goods una shows the dealer Iww he -mighi profit by haridling them. CONFIDENCE IS EsTABLBBED arid the way paved for the salesman. After the pros- pect bec6)ties ' a customer ^ letters between sales' vmns calls keep the name of the house and its product before him. At every stage, letters co- operate with the salesman— hack him up and. reinforce his personal efforts EVERY house selling through salesmen can use to advaa- tage some form of cooperative service that will back up the men in the field, relieve them of many details and gather up the shag ends of business. Whether the product is a specialty or a staple, whether sold direct to consumer or through dealers, the cooperative letters are of great assistance. Much of the preliminary work of introducing a product and educating prospects can be carried on by letter, paving the way for the salesman to enter at the proper time and close the sale. Advertising plays an important part in introducing new products and preparing the field for the saleeman but the letter LOCATING NEW PROSPECTS 81 is the most valuable auxiliary, as it can be made applicable to the small jobber and the large manufacturer. The educational work may extend over months and by using letters for this purpose the salesman can center all his efforts on a final canvass that will get the order. If the product is a staple the letter may be used to introduce new policies or methods and to stimulate the business in the less productive territories. Effectiveness in auxiliary service can not be obtained without an organization in the correspondence department that will insure a discriminate handling of the letters. It must provide some system for securing accurate information about the condi- tions in the field; a reliable method of keeping in touch with the salesmen and a method of checking lists, mailings and replies. A knowledge of conditions on the firing line is secured through salesmen's reports and letters from prospects. Most houses require their travelers to furnish data that will enable the cor- respondents to strike a personal note in their letters. Salesmen are also required to report changes in routes — which are followed by a map and tack system — so that new prospects can be turned over at any time or instructions sent out. Keeping department records is comparatively easy. A card is filled out when an inquiry comes in and additional data is secured from salesmen's reports. Each card should be a his- tory of the relations, showing sales or reasons for not buying and other information that will assist the correspondent. One of the most important services of the cooperative letter is to locate possible buyers in order to avoid wasting time and money on persons who are not likely to develop into purchasers. So the original letter must offer an inducement to the inquiry, so worded that it will not attract curiosity seekers. To get a line on those who may possibly need a cash register, one manufacturer says in his letter: "2ven though you may not need a cash register In your store at the present tiae, any auggestiona that will stop leaka In your profits will ha valuahle to you. Juat sisn the enclosed return card and, without ohligating yourself in any way, you can secure one of our booklets on 'Elininating Errors in Handling the Cash,' which is packed full of intensely interesting schemes and plana used hy live, progressive husiness nen. " 62 APPEALING TO THE DEALER'S JUDGMENT While the booklet gives some valuable information, it is in reality an educational document on the use of cash registers. The request for the booklet or other inducement offered, turns the indefinite name into a likely prospect and the inquiry is followed up with a selling proposition. This campaign aims merely to get an indication of interest so the house may know when to turn the procpect over to a salesman. But it goes further and creates confidence in house, proposition and goods. This letter, however, should pave the way for the approach of the salesman. It must lead up to the personal factor in the sale with the letter campaign, and do this so as not to frighten away the prospective buyer. Incase the product is one that goes to the dealer, his confidence is gained by some assurance that the article v/ill sell readily. The letter should impress upon the merchant that he takes no risk in stocking up on goods that are sure to bring back quick profits. So a manufacturer, seeking to make the sale to dealers easy for his salesman, writes: "We don't expect you to take our word, absolutely--all we aak ia an opportunity to prove the claims we make for these garments. We are so confident, however, that the goods will al- most sell themselves, that It is possible to make you this un- usual offer: you try the goods, and we agree to take back any unsold garments at the end of sixty days " If the product is such that a sample can hs sent, this !3 the strongest method of creating confidence in the goods. Thus the selling plan of a corset manufacturer is to send samples to prospective buyers as soon as any signs of interest is shown. And he seeks to gain their confidence by an ''up-to-you'* letter. A large wholesaler strikes straight at the dealer's in- terest, by an appeal to his business judgment: "Suppose you can't sell a big stock of these goods right off the bat; you will sell a few, and ycu aty bo sura of this fact: those who buy will come back again. And here is the point; In case you find that you can use a stock of our corsota. we will agree to advertise in your local papers and to circular- ize the women of your com^iunity with our literature. We will direct the trade to your Dtore If you will talco oare of It. " FAI^JMING THE PROSPECT'S INTEREST 63 To introduce the salesman to a prospective buyer re- quires considerable tact. It is not usually advisable for a letter of introduction to ask point blank for the privilege of sending a salesman to the prospect. Few men care to be bothered by salesmen unless they are decidedly interested in a proposition or unless a demonstration is necessary to satisfy them regarding some particular advantage in the product. Even ■«\ hen a demonstration is necessary, the prospect hesitates to ask a salesman to call for fear that he vv'ill feel obligated to buy. So the introductory letter must bring forward the salesman very diplomatically. One clothing house opens the path for its representative in this way: "You have examined the aamplea sc mailed yci and prolja- tly tested them thoroughly by this time. But any tests you might Cive them would not be as satiBfactory to you as a few minutes' tcilk with our oale3man--or possibly his personal demonstration. Co when Er. Jones visits your town next week we will tare him call oy> you and talk over the proposition. " The prospect may reply that he will see the salesman on the understanding that he does not agree to place an order; more likely he will not answer at all. In any event, the salesman i3 notified that the prospect is "open." For convenience and economy, a form post card is frequently used giving the pros- pect's name and address, together with any special information that the salesman should know. So by this cooperative service, th*> salesman's hardest work — the education of the prospect to the buying point and the approach to the order — is made easier. The goods are known, the proposition has been made clear and the prospect expects a personal call. Then if he lands the order the notification card is usually returned with the word "sold" marked across its face, together with the order. If he fails to close the sale he writes the house the facts which will indicate just what treatment the prospect should receive from later letters. For convenience in handling these reports, one manufacturer supplies salesmen with form cards, on which he notes any in- formation which may be useful to the house in a later follow-up. Then this card is placed in an index labeled "Special Educational Letters" or, "Prospects Seen and Not Closed." Since the sales 64 SMOOTHING THE WAY FOR THE SALES^L\N man inay be called back to complete the sale, copies of these letters, whether educational or merely reminders, are sent to him. Often after the personal call, the arguments used oa the prospect by letter will be more effective if sent out over the salesman's signature. The touch of indiuduality adds effect- iveness. Many firms even send such mailings out on the sales- man's personal letter paper. Others make up the letters and send them to the salesman for mailing. The careless use of such letters is checked by requiring the salesman to pay the postage and his extra expense may be covered by an additional commission on sales. //VV/^ OfTLCMEK. Wl WOULD BE PtCftSEO TO HAVE « BEPBt SE K T ATI V £ CALl ON OUR MM J^^\^9 ^ »airiT»«r^l-^ - OUSlNtSS C*T(RS TO H^ . ^ /f .€;^,.^ ' /-^^ .y £z:r.^A:t Atdj' A^y/-t^^ jg^ ^AJ^ G^^ - ^tX /^ -jr^o.^.x/T' y\^^^ 7^1^ -^^^^l-^^Ly L^ ^>^^ r /^. ^^ < ^ C'< T >^o/^ ^zA-c^ ..^lo^^ iy^-zZLajt^^ // .c^<^ tt' t^ /f^^^/Ay ajL^ T v.^^ Fronf Gruf reverse sides of notification card. A card of this kind ii sometimes used by tJie corresporuknce cooperative department to notify ilie salesman on the road wlien a prospect is educated up to the point where a personal cull will close tJie sale. After the call the salesman returns the card. It is marked with the single word "SoW" arross Ike face if it accompanies an order; otlierunse,a report for the assistaiice of the letter dejiartment is made, as indicated at tlie bottom of tlte card 70 RELIEVING THE SALESMAN OF DETAILS After the dealer has received a letter of this kind, the sales- man, following a few days later, finds him in a more receptive mood. The letter started him thinking and the sale was half completed. So the cooperative letters, besides handling pro- spective customers up to the point of the sale, turning con- sumer-buyers into assistants to the salesman, and insuring satis- faction to the dealer's trial-order, may also aid the representa- tive in his regular customer calls. » There is still another important function of this cooperative service — assisting in the disposal of the inevitable "left-overs." The small dealer usually depends upon these odds and ends from the manufacturer to furnish the material for his retail store " leaders " and the salesman is usually too intent up>on selling his regular stock to devote valuable time to " left-overs '* and "cut-price" goods. So house-letters take this work off the shoulders of the salesman. They announce the fact that such goods are ready for disposal, quote the prices, do all the educational work and frequently land the order. Or, if they do not actually secure the order, they have " worked up the sale" so that it is little more than formality for the salesman to pick it up — leaving him free to devote his time to the more important lines. The field for house cooperative letters, considering the many angles from which they may be applied, are a vitally im- portant factor to the salesman in the field. When you con- sider that the average salesman, either because of limited time or the small margin on these goods, must neglect them al- together, or, at the best, handle them in an unsatisfactory man- ner, the pressing need of cooperative letters becomes apparent. As auxiliary sales-producers, they have proved their value in al- most every line of business — they are one of the most coa* venient and profitable forces in trade building. Keeping In Touch With The Dealer By Mail PART XIII USING LETTERS ON THE DEALER TRADE CHAPTER 57 ONE OF the hard problems of the wholesaler^ manufacturer and jobber is to Maintain a Point OF Contact with the distant dealer. The loyal salesman is a good medium, but such a medium, lacks permanency. The house tliat seeks to hold the dealer with stronger bonds, reinforces the work of salesmen by letters between calls. How such let- ters can be made to DEVELOP GOOD will and keep a current of mutual interest circidating between the house and the dealer is here described ONE of the large manufacturers of shoes, not long ago, found the business in certain sections steadily falling off. Some of the heaviest buyers v/ere cutting down their orders; several accounts were closed. The trouble could not be with the shoes, for the same rigid standard was maintained. The loss of business was evidently due to changes in the sales department. One veteran salesman had died, a second had retired, a third had resigned to go with another concern, and there had been a general shifting of terri- tories to the great detriment of the business. The company had always paid big salaries and hired good salesmen, dejiending upon them lb bring in the business. Evi- dently it had been a mistake to depend so entirely on salaried representatives. No effort had ever been mad6 to bring the dealers into personal touch with the house. Customers were loyal to salesmen rather than to the company; the salesmen carried the trade — not the house* 71 72 ESTABLISHING A POINT OF CONTACT The necessity of adopting a new policy was apparent. Let- ters were sent out over the president's signature, asking the dealers about local conditions, what the prospects were for trade, what ways they could suggest for pushing their business. The letter went on to outline an extensive advertising plans asking the dealer's advice regarding it and urging him to make suggestions as to changes in the proposed campaign. The letter was an intimate man-to-man talk based on the mutual interests of manufacturer and retailer- and emphasized the desirability of getting together to try out some new trade- winning schemes. Not a word was said about sales; no refer- ence was made to the falling off in orders; the letter aimed to establish a point of contact between the house and the dealer — nothing more. The merchants replied, almost to a man. Where specific suggestions were made, the house planned aspecial advertising campaign. Space was taken in the local papers, the house preparing "copy" and paying half the cost; window- trims were suggested and special sale schemes worked out. Within six months the company had not only gained the ground it had lost, but new records were being made. Distant dealers began to look on the company as something more than a factory; it gradually acquired a personality; it took a warm interest in the problems of the retailer and offered help, not in a perfunctory sort of way, but as if it were a pleasure to cooperate with the distributers. The salesman was not ignored; the aim was to develop a spirit of team work — to convince the salesman and the dealer that the best scores could be made by working together — cooperating — playing the "inside game." In two years the business was doubled The increase in sales was attributed to the new attitude — Ireeping in touch with the dealers by letters, following them up between the calls of the salesmen, maintaining a point of contact at all times. Such a relationship is the most effective barrier against com- petition and makes the dealer feel that a house has an interest in him beyond the filling of the next order. Progressive manufacturers and wholesalers are learning that mutual good will and a spirit of cooperation are vital factors in trade-building and dividend-papng, and the letter is the natural medium for keeping the house in close touch with customers. The letter serves more than one good end; it promotes closer relations; it keeps the house and its line before the dealer: LETTERS THAT CARRY INTEREST it guards against the vest-pocket rule of salesmen; it holds trade for salesmen and gets advice on policies, methods and plans. The effectiveness of the letters sent out by a house depends largely upon an accurate knowledge of the customer and condi- tions in his territory. Nothing deflects a customer's interest more quickly than a letter betraying ignorance of past transac- tions or his relations with the house. Just as truly, the subtle flattery of a letter showing an intimate knowledge of a customer and manifesting a genuine interest in his welfare tightens the bonds that hold him to the house. The letters need not be individual in all cases. Announce- ments of changes in prices, the addition of new lines, and general trade news is sent to ail the customers, but the clever correspond- ent tries to get away from stilted formality, making the recipi- ent feel that he is one whom the house never loses sight of when it has information that may be of interest. The form letter may be used, also, in educational work, pointing out the advantages of certain goods, and suggesting trade-getting schemes. A wholesale paper-house writes to all its customers at least once a month, calling attention to some line of paper which is especially adapted for a certain Hne of work: Dear Sir- The next man who comes in and wants some stationery that is a little out of the ordinary, a little better than the other fellow's, show him the enclosed samples of Quaker Bond. We don't claim this is the best bond made: we do claim you can't equal it at the price. Then. too. the new Vellum finish gives a tone of quality that will give distinction to a letter- head or envelope. We enclose samples of white, opaline, azure and rusaet. Envelopes are carried In stock in these colors in 6i and Baroni&l sizes Many printers are using Quaker Bond for their own stationery and they find it most effective advertising Let us know what you think of it. Very sincerely yours, THE CEilTEAl PAPEH CO. By 3-^ (i? h/.SLc — ^ UDW/LK ligr. Country Icpt. 74 MAKING GOOD USE OF TESTIMONIALS Such a letter is primarily a form of advertising, yet it is cer- tain to be read, for the artistically printed samples give valua- ble suggestions. — Another house sends out every month a bulletin of special bargains — broken lines, job lots and odd sizes on which special prices are quoted. This bulletin not only enables the house to get rid of its accumulation of odds and ends, but it carries with it a letter, calling attention to these special prices to the "'regular customers," affording them the same opportunities for "close buying" as if they were in the city. If a letter serves no other purpose, it is worth its cost in keep- ing the name of the house and its goods before the trade. A coffee house in Chicago attributes its great success largely to the way it recognizes orders. Even the smallest order calls forth a letter thanking the sender for remembering the house: "Your 'business is important to us; we are just as glad of this order as if it were from our largest city customer for it shows that you like our coffee and find our service satisfac- tory. A dozen small orders mean more to us than one large order for they mean that twelve dealers are creating a demand for our trands, a demand that will increase. This means that your businece will grow and then our husiness will grow. " Such a message puts the small dealer in the right attitude; makes him feel that his orders are really appreciated. Another concern keeps its name and goods before customers by testimonial letters sent out at regular intervals: "0. L. Kason at CanJral City put In the Union line l»3t Kay; every montli since then hie orders have been larger." "SiaitlL.& Smith of Cedar Creek added the Union line a year ago^ Last week they wrote ui): 'Our sales on canned goods have more t^an doubled since wo began handling your products. •" "The Vittb. ATenue Crooer at Vilson Harbor writes: *Union canned goods ffell themseJ.vea. Send us enclosed order at once. Thought we had enough to last ub until your man Butler got around next month, but our stock la already running low. • ' 'TEAM WORK" WITH THE SALESI^UN 75 These letters contain a little folder describing the Union goods, but that is all. Not a word is written about buying; but the letters keep the line before the dealers, and by show- ing what other merchants are doing they make it easier for the salesmen to close an order. The aim of the successful correspondent is to seize upon every opportunity to write to the customer and show an interest in his business. Getting orders is a secondary consideration. JAN FEB NAI.1C MAn. APR. MAY JUNE JULY AUC SEPT OCT NOV 12 13 14 IS ie 17 IS 19 ?0 21 22 23 2 DEC. 4 23 2« 2 ^ 12346670* 10 1 28 29 00 31 AOOnfFB LOCATION NO. SiOE ACE OCTWCEN AND PBOIiPCCT OWNER ODDBEfS IKTEBCertO TENANT CONNECTED RCMArns BUSINESS. .rcOM»E«C,.L. COMEBTiC OSIKG rO.1 LIGHT STVLE OF FIXTURES DATE winEb PIPEO MATERIAL IS USING ELECTBiciTv ron cat Sir.E LIGHTING, DATE COULD USE eLECTBIClTV FOS MATERIAL REMARKS DATE or THIS REPORT Specimen cards used for mailing lists. The upper card is filled ovi by a salesman and sent in to tlie house for filing. The lower card gives tlm data required by an electric ligfding company, and enables tJie corres- pondent to send oxd letters and advertising viatter aimed directly at the needs of each prospect. The small signal at tlie top of the card sliows the date for sending out the next follow-up First of all, get in close touch, establish a point of contact and the orders will take care of themselves. Soliciting business may, however, be the very best method in which to show a genuine interest in the dealer, as, when the wholesaler advises him of an advance in prices at a certain time and suggests that orders be placed before that date. Where the house keeps in touch with the dealer in this way there is little danger of the salesman's getting such a hold on the 76 WINNING THE DEALER'S COOPERATION trade that it is hb to carry to a rival firm if he so desires. The cost of the letters that establish and maintain this point of contact may be charged up to insurance on future business. If a complaint comes in it may be turned over to the salesman to adjust. At the same time, letters to the cus- tomer make it plain that the salesman is acting under instructions from the house and is merely carrying out the policy of the house in settling the claim. If a large order is given a salesman the house writes and thanks the customer — deftly the impression is carried that the order was not given to the sales* man, but to the house throvgh the salesman. The attitude is taken that salesmen are not sent out to get business and to stock up the dealer, but rather to assist the dealer in selecting lines best suited for his trade, making it eas- ier for him to place his orders. This does not mean that the salesman is restricted in his work — it merely applies to the attitude towards the dealer. In fact, there is no greater function of the house-letter than to prepare the dealers for^ the salesman's coming and persuade them to hold their orders for him. Letters between calls supple- ment the canvass of the salesman, bring out new features and give the retailer opportunity to consider a proposition more fully. This is most necessary in introducing a new line and in educating the trade to better grades. This letter was sent to awaken an interest in advance of the salesman's call: Dear Sir: You have teen dealing in building materials long enough to know what the roofing problems are to architects and con- tractors. Shingles, tiling, patent roof ing3--doubtlea8 you havo handled them all. This is all the more reason T7hy you will be interested in the sample of Reaisto concrete roofing that wo are sending you. Here is a concrete shingle that is light enough in weight to be practical yet strong enough to defy sun, rain and wind Concrete is the only material that Improves by exposure clothing and many of the household necessities, she did it be- cause there was no other way to ge^ them. You don't do It today for the reason that you can buy a better "ready-to-wear" artlol* Cheaper than- you can fflalM it. 8^ FOUR FUNCTIONS OF A LETTER The eame holds true with braad. Our grandmothers wer« famous h re ad makers — prize winners But they worked hard and had few of the comforts of today Eoro. ecienco. skill, machinery and pure food laws, together with expert workmen and high grade flour, have produced wonders In hread making. They have made it posslhla for you to buy bread cheaper than you can make it You can saTO your atrength, your tlme--and money. Brown & Co brands — Perfection. Butternut Pioneer and Spoolal--are the appetizing results of long and progressive bread mstking the cleanest of workrooms, the latest machinery, large autoiratio ovens and equipment that allows the lowest cost In tha making, and consequently the lowest cost to you. If you buy broad, instead of makinff it, you want only the best — it costs no more than the other kinds A trial «ill con- vince you that oura is tha best Call up tha Fourth Avenue Groc- ery, which sells our brands and have aomo daXlvered — do it irhen you order your groceries tomorrow Very truly youre. If the dealer reminds Mrs Smith, when ordering sugar and potatoes of Blank & Co.'s breads, aad suggests sending a few loaves, the sales are bound to increase rapidly. Here is where there should be good team work between the wholesaler and the dealer^ cooperation should be active and consistent. On some Unes, such as specialties or new products, the propo* sitioa is not so simple, for the educational work takes much longer. The letter, in such cases, should have four specific purposes: picking up prospects, educating them, creating a desire to possess the article or goods, and turning the prospects over to the dealer to "close." If the list is a selected one, such as inquiries secured through magazine advertising, these purposes are more readily accom- plished as the prospect is already interested to a degree. But the aim is always the same: stimulate the interest and get the prospect into the store. Even where the letter has created a desire for the goods its force may be wasted unless it impresses the name of the dealer upon the mind of the reader. Make the name stand out prom- inently near the close of the letter. Some houses accomplish this by a sentence of this kind: "Mr. Jones, 212 Main Street, handles our line — ^you can easily reach him and he will be LETTERS ON DEALER'S STATIONERY 8* glad to tell you further details and show you the goods." Or, lor simplicity, they merely write the dealer's name and street (address at the bottom of the page; Others have clever schemes by which to impress the name of the dealer and his address upon the' minds- of the inquirers. For example, a clothing manufacturer encloses with his letter an attractively en- graved card, which reads: "This will introduce you to our dealer in your city, who will be very glad to show you our latest line of exclusive fashion ideas. Should you decide to order any clothes through him, you can rest assured that your o»der will receive our most painstaking attention." At the top of this card is a space where the inquirer's name is filled in and another space, surrounded by a heavy border, where the dealer's name and address is typewritten so it stands out conspicuously. If the dealer is well known in his locality and has consider- able prestige, letters sent out over his signature and on his per- sonal stationery are sure to give more confidence to buyers. It accomplishes all the purposes of the manufacturer's letter, and is usually more effective, because the retailer is known personally to the recipient. So the house writes the letter from the dealer's attitude, adding here and there a touch of local color. Then tlie mailing is sent out direct from the house or turned over to the dealer, so that the letters may have a local postmark. Take the grocer, for example. A personal letter from him to consumers in his locality, whether to his customers or those of his competitor, always carries weight. Here is a letter from a manufacturer that is written at the house but bearing all the earmarks of a personal letter from the dealer. It aims to get the buyer to the dealer's store by two distinct methods — the special advantages of the goods and by the assurance that they can only be obtained from the one grocer in that locality: Dear Uadam: There la no need of your tioillng. broiling, baking and atewlng In aa overheated kitchen If you have BVBR-READY meats in your pantry. They need no cooking and are always ready to serve, hot or oold, in a hundred appetizing ways. BVBR-READY meats could not be more savory or delicious If prepared in your own kitchen. The government inspection makes you sure of their purity. Every week an increasing number 84 INSPIRING CUSTOMERS CONFIDENCE of custonera ars using theas prepered ireata. for t.hpy are cnn- venlent; thoy are always ready to serve, thpy are unexcellsd In quality. Do not take our word for it Try them anl -Re. one trill will show you why your nelijhbors are so ent hu 3 i as t It- o^er FVER-RSADY naata This store alone handles this t-and and I hope the next time "ou are In this vicinity you will drop In and easiple some of them and take home a can. Very truly youra. A letter of this kind — the dealer's personal letter — may be used advantageously to couple up with the manufacturer's answer to an inquiry, the manufacturer sending out both letters; the dealer'3 personal letter going out a few days after his own. The prospect gets the impression that his inquiry has received double attention. Often to gain an approach for the dealer's personal letter, a direct reference is made to the inquiry: Bsar Sii Brown & Cozipany have written us about ycur inquiry and, Hiougil you havo probably received a cataloeue and other deacrlp- tivs natter direct fron theai, we want to invite you 10 call at our etore where you can see the Wellington cachinn in actual op- eration. It will be a pleasure to talk with you personally and explain any of '.aa features that may not be perfectly clear to you. Very respectfully. In case these dealer's personal letters are sent out from the local territory, the dealer must have a list of the inquirers so he can couple up the two letters. One nianufacturer uses a simple device for accomplishing this. The dealer is first sup- plied with coupling-up letters, then with the manufacturer's reply to an inquiiy, is sent a slip bearing the name and address of the local dealer. At the top 13 tlic name of the inquirer. These slips are duplicatersons who are known to be in the market. Then a letter is sent out from the house to the prospect, taking up the arguments in favor of this particular stove: Doar Sir: Befora you purchase that re^ range you should take tine to Inveetieate the merits of the Opal stovee. The true test of any atove is In Its use. When new. one Btovs looks a good deal like another, and it is only by actual . eervice that the real Talue le shown. Our clcin for merit In the Opal range is warranted "by the years of satisfactory service It has given to thousands of uoern. Only the highest grade of ma- terials and the most skilled vyorkiiien are employed in its con- struction. All steel is extra quality, highly polished and re- quires no blacking. All cast parts are made of the highest g.-ade oast iron obtainable The fire boxes are made large and roocy and are correctly proportioned to hold fire for a long ttiae. Ths ovens are full size, lade square, and will bake quicker, more evenly and with less fuel than the ovens in other stoires. But we cannot tell you even briefly all the good points about the Opal, so we want you to call at Samuel Smith s store et 428 Center avenue, look the Opal over carefully and aee it taken apart so you will understand the reasons that have prompted thousands of householders to buy the Opal in prefer- ence to all other ranges. Very truly yours, OPAL STOVE UANUFACTURirrC} CO. By <^i4^,..^/2^^.^ Ugr. of Sales. 86 CONTESTS TO GET NAMES OF PROSPECTS Another manufacturer gets out letters for his dealers when- ever they visit the hous^ to purchase goods. These letters are often personal communications from the dealer to his cus- tomers, calling attention to new styles and samples he secured during his visit to the city. They are sent out from the house over the dealer's signature and are made up in some such form as this: Dear Sir: Can't you call around at our store in a fsw days and loolc over the new patterns in browns and fancy blues that I have been selecting here in the city? I honestly believe this is the finest line of goods I have ever seen and I knew you will be en- thusiastic over some of them. I am taking a few of the best patterns back with me and will be mighty glad to have you drop in some afternoon and look them over before they are placed on sale. Very truly yours. A short, friendly note of this kind carries great weight. It is unusually effective where relations between the dealer and the customer permit the tone of intimacy. A tobacco manufacturer, wishing to direct a campaign of letters, booklets, printed matter and samples for the dealer, decided, for more effectiveness, to secure a select list first. To secure this list, a prize guessing-contest was conducted in each town. An attractive window-display was made in the dealer's store, appealing to all classes of smokers. The only require- ment for entering the contest was for the smoker to leave his name and address in a book. After the contest was over and the books had been returned to the manufacturer, the campaign was directed at the smokers whose names they had secured. A large wholesaler adds to his letter campaign to the dealer*3 customers and prospects, a letter to the dealer's salesmen. The first step in the campaign for dealer-sales is to educate the dealer to cooperate with him; the second \& to induce him to send in the names of possible prospects and also the names of his clerks. During the Campaign on consumera ENLISTING THE HELP OF CLERKS 87 letters are mailed periodically to the clerks to secure their active interest. Here is an effective letter to clerks: Dear Sir: Your word usually nakea the sale to the average f-ua- tomer--we appreciate this fact. We also appreciate how often you are called upon to recommend good trands, especially of canned goods. If you recoimnend the heat, your customers will be pleased-'they will come hack again and again--you will he estab- lishing a trade that will make your position stronger--your value to the house greater. We are writing to impress upon you the fact that there Is little danger of your "making it too strong" when talking about the Lunar products. We raise our own vegetables and pack them the day they are picked; our plant is tho largeai. and most complete in the country; our system of inspection is most rigid --every facility that money can buy, every precaution that sci- ence has proved, and an organization that has made this estab- lishment known throughout the country--the result is a line of canned goods that is not excelled In quality; a line that you can guarantee absolutely. Recommend them for a week or two to your customers and then watch them come back for more orders. Very truly yours, D.C.L./R.H. TEE LUNAR COMPAUY. In this way this manufcicturer not only educates prospects and customers and keeps them trading at the dealer's store, but he also insures proper treatment when they call, by educational work with the clerks. For the cooperation of the clerks is nearly as important as the cooperation of the dealer. So when you open the letter-campaign that aims to move your product from the dealer's shelves, first show the dealer that you are working for his interests; secure both his coopera- tion and that of his clerks and then go to the user of the goods to develop interest and create a demand for your product. Wielding the "BIG STICK" in Letters to Salesmen PART Xm USING Li:n CIIS ON THE DEALER TRADE CHAPTER sq WHEN your salesman is sitting opj)osite you in your office^ it is easy enough to ins-pire him to greater effort — to put *' ginger'* into him — by the sound of your voice, the glance oj your eye, the slap on the back or the emphatic thump on the desk. But to impress your personality upon him when he is on the road, perhaps buried in a third or fourth class town and needs your encourage- inent most^ is a problem that resolves itself to the Personal Letter. Herein are extracts from some sales managers* correspondence with their salesmen — methods for keeping up the fighting spirit of the men in the field THE sales manager who looks for big results appreciates the necessity of keeping in close touch with his sales force, no matter how widely it is scattered. To main- tain a point of contact that will carry a current of enthusiasm and galvanize the discouraged representative, a three-fold ability is required: You must be able to put yourself in the salesman's clothes, understand his personality and see the selling problems through his eyes. You must be able to show him your position; put him at your desk and make him understand "the why" of house policies. You must know the territory in which the salesman v/orks, understand the local conditions and the class of customers hi reaches. Such knowledge is essential to an understanding oi" the sa PUTTING GINGER INTO THE FIELD FORCE 8& field problems and without this understanding the sales manager cannot give real help or inject much enthusiasm The salesman is the human factor — the connecting link between house and customer. His treatment of customers should reflect the character and policy of the house. His attitude should create the same degree of confidence that you, as sales manager, would create were you able to handle each customer in person. This is the ideal to hold up before the sales force. You aim to educate the salesman to the importance and responsibility of his position, to direct his efforts into productive channels and to keep him interested and working at top notch efficiency. Except for occasional conventions or meetings, you must rely upon letters to recharge his energies. In order to make these letters effective it is necessary to knov; where a salesman can be reached at all times. This necessitates a daily report by which each man's route can be followed by a map and tack system. Customer reports give data regarding selling conditions in each territory and a weekly summary of sales enables the sales manager to keep his finger on the business and on the v.ork of every man. The experienced salesman learns to read between the lines of the salesmen's reports, detect lagging interest, determine when they are working from a wrong angle, interpret the hidden note of discouragement and with letters charged with enthusiasm and helpful suggestions, brace them up and get them going under full headway again. But these letters do much more than impart ginger and inspire confidence. They are frequently educational in the strictest sense of the word. Various arguments are taken up, and anecdotes are related showing how selling problems have been solved, difficulties met, obstacles overcome. A salesman may never recognize his own weakness until he sees just how some other man has been able to increase his sales. It is obvious that the salesman must be supplied with price changes, market reports and suggestions for handling emer- gency propositions. !Many houses employing large forces of salesmen send out house bulletins, daily or weekly, instead of letters' to give this information. The bulletin is usually a email pamphlet made up as attractively as possible without incurring too great expense. It discusses house policies from the view- point of both house and salesman; takes up questions of compe- 90 EDUCATIONAL WORK BY LETTERS tition and methods of meeting arguments; reproduces sugges- tions offered by salesmen; carries warnings against poor selling arguments, misdirected energies and the dangers of wasting valuable time. Then it outlines advertising campaigns that may be available as selling arguments. Time after time the brilliant beginner falls down because he lets his own magnetic ability to take orders blind him to the The house should keep in close touch with its field forces and this cliart indicates the many ways in which letters may be used for gingering up tlie distant representatives necessity of keeping the shag ends of his business picked up. He neglects details, taking orders with never a thought of how or when they can be filled. Either house bulletins or letters explain the mistake of this attitude and suggest remedies. A little ginger plus some hard sense talk, puts the spur on the jagging salesman and opens the eyes of the man who is easily discouraged. Some concerns conduct educational letter campaigns which carry the salesman mentally through the various departments SENDING SPECIFIC INSTRUCTIONS 91 of the business. He is shown operations in factory and ware- house, detaib of shipping and bilhng rooms and working sys- tems of the credit and collection departments. Salesmen must be inspired to raise their efficiency; they must feel sure footed. Confidence in one's ability is the keynote of success, and m letters to salesmen, hammer on thia idea continually: "You can do anything any other person has done, if you do what he has done to accomplish it." Some men are handled by letting them alone; others are handled by sympathy; others by analytical criticism; others by direct and specific advice. No rule fits them all — or any two, but every letter sent out must be intended to leave the man in a better frame of mind. It should convince him that no matter how his disappointments have piled up, he is sure to demonstrate his power if he keeps at it, and does things right. Giving the salesman some specific thing to accomplish often gets results. For example, an insurance manager wrote an agent: "Go over to So-and-So and Insure him for $10,000. He rill tell you that he doesn't want the policy, tut I know he does. " It is often a surprise what specific instructions such as these will accomplish Agents who have been falling down frequently regain their stride under such a spur. The influence of a strong, personality upon a salesman is grea c, and the man who has been aimlessly looking up and down the street, will apply himself with new vigor if his energy is properly directed. Many times it is possible to turn to account the disappoint- ments and discouragements which make men falter. If sales- men can be made to realize that the very difficulties of their calling give them their Uving, they will find a new incentive. See how this letter gives the beginner a new outlook : "Seme salesmen forget that the difficulties In the bus- iness are the stones in the wall which protects them in their field of labor. Were the business suddenly to become easy, a thousand times p.^ many men would be rushing into it as rushed to the ElondHfe for gold. Were it not difficult, the 'diggings' you have staked out would very soon be exhausted. " fiS NEVER BELITTLE A SALESMA^^S ABILITY "WTien a man thinks of his calling in this h'ght, he is nerved to go ahead. There are many such diplomatic turns the mana- ger may give to complaints, generating inspirational advice from the discourafrement. o Deprecate any complaints from men that this "or that sales- man was specially favored by circumstances. Seek to impress upon all that application, determination and perseverance will accomplish almost anything. Point out that "luck" really undermines a man's strength and makes his future success less secure, even though he m.ay profit temporarily. The force of such an argument often nerves men on although they had been ready to quit the struggle Follow the general idea of this letter: "I have come to look upon it as a pity that circuE- etances Bhould ever combine to place men of much ability in a po- Dition where they are not obliged to becin with a struggle for existence; for most individuals ere so constituted that they are obliged to do so. The saving event in many a nan's life is the tlow that takes away the props thst have supported him and leaves him to look out for himself, ifany persons havo tcld me that this is true of their own lives." Tlie men who receive a letter like this, come to look upon "luck" from a new angle. The sales manager may deal in platitudes and time-worn ginger talks but they are new to the young salesmen and help them see their problems in a broad way. Men do not think out these things for themselves at first. They must be educated. Take a man out and tell him to jump over a five-foot hurdle and he will say he can't do it. To train hira to jump, you give him lower hurdles, and raise them gradu- ally. To lift men by degrees into a knowledge of their own powers and the ability to use them is the aim of the sales manager. Never discourage a man by running down his ability. On the contrary, tell him how much he is really capable of doing. An example is very valuable in getting men to work. Show them what other men are doing, or have done, and point out that the men who accomplished such marvelous results are only like the common run of mankind. Even the best salesman out on the road will at times falter and lose faith in himself unless he is galvanized from the office. AN ARGUMENT THAT APPEALS TO FIELD MEN 93 The struggle is hard, and he is away from the inspiring influences of the house and the magnetic touch of the men who swing the thing along. A letter of fault-finding, a "roast" from the home office, a discourtesy from his manager, reflects itself disastrously. Ve&r Mr. Cochrane: The correspondence 1 have Just had with one of our field men working a difficult territory is eo preenant with 6U£geBtlon that I am going to pass it on to you. Mr. Geo. I.. Brown, working the countlea of Winneshiek end Howard, in Iowa, wrote ne on August eighth last that ho had ahout decided to go into the land husinesa aa he had "been offered & guarantee of twenty-five hundred dollars and expenses a year. I wrote Mr. Brown the tenth as follows: "To my personal knowledge we have not a field mart making less than twenty-five hundred dollars yearly who does not fail to worJc regularly eight hours a day. "The field man who plans hio time and who spends eight hours a day out among his prospects makes three — f ive--eiKht-- ten thousand dollars — no natter what the territory. "The opportunities are greater In insurance than in any other line today for the man who will put in tha time. So, before changing to any other line, I want you to try the eight* hour-a-day plan--and see how profits' foot up. " Fifteen days later, I was pleased to receive tne following wire from Mr. Brown: "Eeep my name on the agency list. Have written forty' two thousand dollars in two weeks." And--remem'ber : This was the 8$ne man in the same ter ritory. He merely tried the plan of working Eystematically eight full hours a day in the face of every possible discour- agement. Uost cordially, Uanager of Agencies. The inspirational letter is especially needed for gingering up insurance solicitors, and the field force can be greatly stimulated by the manager who understands how to apply the spur by letter. The above letter proved unusually effective in holding men dovm to their vxrrk 94 STUDY THB WEAKNESS OF INDIVIDUAL S On the other hand, any man worth having is worth treating diplomatically. For example, here is an idea that has Been effectively used: "There Is a vast difference tietween a proper under- standing of one's own aldllty and a deternination to make th» ■best of it, and offensive egotism. It is absolutely necessary for every man to believe in liimaelf before ho can make the moet of himself. " To get men to exercise their powers in initiative requires pressure from above. The manager cannot sit in his office and expect his sales force to keep up their enthusiasm without encour- agement. No matter what the incident or occasion for the letter, the keen manager can turn it to account by using it as an inspiration- builder. If it is patience the man needs, you can give him a little talk that will leave him in the right frame of mind by a letter of this kind: "~ "One of the most essential requisites in the accom- plishment of any really great matter is patience--not the pa- tience which sits and folds its hands and waits, liacawber-like. for 'aomething to turn up,' but the self-control which never Jeopardizes or upsets a plan by forcing it at the wrong moment. The man who possesses that kind of patience always finds plenty to do in the meantime. " If the man has scattered his energies, there is splendid occasion for a homily on concentration. The letter ought to be the reflection of the same influences that exei't themselves in the office: to put a hand on the shoulder of a worker, or give him a handclasp, or say things to bim as in person, and send him away full of enthusiasm and determina- tion to work as he never worked before — this is the real func- tion of the letter to the salesman. Salesman 's Letters That Keep Up a CUSTOMER'S Interest PAKT XIII USING LEITHRS ON THE DI.ALhll 1 KAUb: CllAriLll 60 TO HOLD a customer s attention when the salesman is face to face with him is a simple matter. But to keep the salesman in the CL'S- tomer's mlnd during the intervals between calls, especially at those times when he is about to place orders for goods ^ is a problem that is solved by the salesman s letters — letters ranging from hastily-penned personal messages written from various places en route, to form letters sent out from the home office over the salesman's mechanically reproduced signature, lloio these letters are 'prepared, and how they are used is described in this chapter CONCERNS that depend upon the salesman's per- sonahty to make their letters more eirectivc, use one of these methods of producing them: The salesman's letter written at his hotel. House form letters — sent to salesmen for signature, post- script and personal supervision in mailing. House form letters — mailed from the house over the salesman's signature, applied mechanically. The salesman's hotel written letter carries the most intimate message, gets closest to the customer and is consequently the strongest in its appeal. It commands attention. It is the most adequate substitute for the personal call. It adds force to arguments, because explanations may be read and studied over during the customer's leisure moments. It builds an easy 96 WAYS OF EMPHASIZING SALIENT FEATURES approach for a sale at a later call by keeping the proposition fresh in the customer's mind without an appearance of too much persistence. It is usually advisable to leave an opening for a follow- up letter at the time of the call. One alert salesman notes on his customer's desk memorandum tlie date when he expects to return, remarking as he does so: "You may want to reach me before that date; I'll just drop you a line from time to time to keep in touch with you." Thus the stage is set for the entrance of his letters, which may deal with purely business matters, or they may relate wholly to matters of a personal or private nature. A week after making the call, the salesman may express his reafinterest in the customer by writing: "In my kurry to catoh the 10:46 tha other morning I may net have explained fully soice of the eelling features poseeased Cy our AAA Corsets. " Then he goes on and reviews his arguments, pointing out the advantages in handling his line. Or, he may emphasize some one point that he had not played up sufficiently: "Did I make it clear to you that there ia tut one re- frigerator manufactured in this country using genuine porcelain food compartments, and that ia the Alaska? There are plenty of Imitations of one kind or another under misleading names. Some of tttem are good refrigerators tut none of them will give such eervice as the Alaska. " Some service argument is always effective and seized upon by salesmen with pleasure: "I received word from headquarters this morning that the new factory v.a3 opened yesterday. This Is equipped with the most modern machinery and it practically doubles our capacity. We are now prepared to give you hotter service than ever hefore-- ietter service than any other house in the country. Wire a rush order and see how we take care of you. " PUTTING NEWS VALUE INTO LETTERS 97 Another effective letter to a customer vshows him how the salesman keeps his individual problems in mind: "On my return trip I am going to tell you about a clever window I saw at the People's Store at Benton. They have a corner window Just like yours, and the minute I eaw the trim and the crowd it attracted I said to myself: 'There's Just the thing for Watson, ' and I arranged to have a photograph taken and can show you just how the stunt was worked — you'll te needing a new line of neckwear hy the time I get hack." A selling scheme is offered as well as goods, and salesmen from rival houses will find it practically impossible to get an order from Watson as long as this man is taking such a per- sonal interest in the development of his business. News of market conditions that will bear directly on a sale, offers opportunity for some such letter as this: "The weather conditions of the past few weeks Indicate a shortag^in the wheat crop. Prices of flour are sure to ad- vance. I cannot advise you too strongly to place orders for sev- eral car loads at once. New Doninion flour is as safe an invest- ment as government honds — and will yield many times the profit." Give the salesman ammunition such as a special offer on goods and he may get orders by mail from his customers. He may send letters back over the territory just covered and save the time and expense that a return call would involve. This letter is a good illustration: "Xook at the enclosed display stunt. "Our display experts have proven that It doubles sales. It certainly is the most attractive scheme you'll see this year. •The house has promised to give you one of these display racks--mind you. give it you, if you will advance your fall order a week or two and take the full gross of platea. "This is a ten-day offer and I can't reach you within that time. Use the enclosed order blank and reach me at fienioi.. Hotel Columbia. ■ i)8 SHOWING REAL INTEREST IN CUSTOMERS Special price tips often secure OrcJers by mail when the salesman is pressed for time. The fact that a salesman makes a special proposition of this kind not only shows his interest in the customer, but impresses him with the "time limit" or the ''limited supply," inducing him to "order now." The salesman's cooperative letter assists the house in the quick adjustment of complaints, and most salesmen feel that their time is well spent in personally straightening out kinks, as it gives an opportunity to show that their interest really ex- tends beyond taking the order. Here is the way one salesman handled such a situation: "Notification of your complaint haa just reached flie.but Have not reoeiTod particulars regardins the exact nature of the trouble. Write me fully and I can doubtless tell you Just how to remedy it. Be assured there ia nothing seriously wrong with your machine, for every one is thoroughly tested before being chipped. The trouble is due to sona little part that is not just properly adjusted. If you can't explain the situation thor- oughly in a letter, wire me and I'll change ay route so as to reach CenterTille Saturday night and get the machine running properly. " Often a clever twist may be applied by the salesman, in cases of unjust complaints, by which his letters will save future sales. A buyer who had overstocked tried to place the blame on the house, but the salesman smoothed over the imagined difficulty and tactfully thrust upon the customer an obligation to hold his next order for the house: "1 was sincerely sorry to receive notice from the house that you claim the books snipped were not as ordered. I have never known the sales or shipping department to maVe a sim- ilar mi8take--in fact, Ky experience tells mo that they are un- usually painstaking and careful. "Even though the house investigation indicated noth- ing wrong, I can promise that your interests will be considered first. 'You'll agree with me I'm 6ure, that they have met your complaint with all fairness when they allow the books re- turned. Don't take the time to thank me now. I'll call in a month with my fall sampler and you can do it then.* HOAV ONE FIRM VARIES ITS STATIONERY 99 The Nt- \'-t: Fd^--." Company ■ \r,:i F : '-^ ife Six «"ll Mz^ n«N-«Y. A=^ liiiiiiiiliiiiliiliiliiilliiiiilillilliii A series of letterheads thai illustrate various uses of the product and so not only vary the appearance of successive letters but afford good advertising 100 MAKING USE OF DIFFERENT LETTERHEADS '111 I » "F'b v'-S f >y>w- Ao(//Hls (on// Hint/ ,\'nui l^/' ■>!,.'c.r, upon learning the cause of non-payment merely alludes in the most indirect way, to the iron hand; he throws himself heart and soul into the overcoming of objections with arguments and persuasion — salesmanship. The indifferent or dissatisfied customer must be re-sold. The successful in- stalment houses are those that develop just as much cleverness in the collection department as they do in the sales department. Threats give way t'- selling schemes and plans for re-interesting the customer. Diffcent .arguments and different lines of ap- proach are devised, tested and developed just the same as with selling letters. A publishing house, selling a historical work on instalments, tries to answfr fully the objections that are made. Here is a typical letter; 130 HOW INSTALMENT CUSTOMERS ARE RESOLD Sear Sir: Your feeling of disappointment In the Romance of Anerl- oan History is due, I bm poaitlTe, to tho fact that you have not had time to read the books or look them over carefully. The worth of a historical work cannot be appreciated immedlately-- Its value is cumulative. Every year you will get more out of it ..more satisfaction and more knowledge. Your boys will soon be old enough to read these books It is a duty you, as a father, owe to them to put the best liter- ature within their reach. The elaborate illustrations will in- terest them; the romance of American history will fascinate them; every page will give them Information about the develop- ment of the country's resources, its industries and its civlo in8titutiona--knowledge that will be almost invaluable in meeting the larger problems of life. The children of today will be the men of tomorrow--tho Importance of the position your boys will occupy will depend on the preparation you give them and there is probably no greater Influence in their lives than the books they read. What does $5 00 a month for three months mean to a man like yourself when compared to the satisfaction you will have in knowing that you are giving your boys the best literature that money will buy? Look over the table of contents again, see the wide range of subjects touched upon--8ubJect8 of practical, every- day value. While we could force you to live up to your contract »» don't want to do that, we want you to keep these books because you appreciate their worth, not only toyoureeif but to your family. We want you to feel glad that these books are on your table--books that you will take satisfaction in loaning to your Qeighbors. Does this not appeal to you? Will you not .decide SOW to keep these books and send us a check covering the first month's payment? Very truly yours. Before writing this letter the correspondenl learned from the sale record that the buyer was a lumberman in a small town — probably a man who did not care much for books of this charac- ter. The record showed that he was married and had three children. His letter contained no specific objection — he wasn't interested in the books, he didn't have much time for reading and his boys weren't old enough to care for them. From this WHEN INSTALMENTS ARE OVERDUE 131 the correspondent took his cue; deftly he wove the argument around the boys' education — the one point he rightly guessed would strike home with the father. He cleverly wound up with a reminder that collection could be forced and while there was no suggestion of a threat, between the lines could be read a message that was more effective than a direct demand to "pay up." The letter called forth an immediate remittance because it had been accurately aimed; it re-sold the set of books. Every instalment house recognizes the desirability of a cash-up proposition if three letters fall to land a payment. Practically all instalment contracts have the provision that if two instalments become overdue a firm may demand either a return of the goods or payment of the whole remaining purchase price. Of course the firm prefers to collect the money, and so much more preferable is this course, that to bring in the cash new inducements are offered. These inducements may be either in the form of a cash dis- count or an offer of some additional article free for an immediate settlement. Here is a letter that is used to get the cash from delinquents: Dear Sir: You have violated your contract wltn us and have failed to give our repeated statements, notices and letters regarding your delinquent account tusiness-like attention. You have even denied us the ordinary courtesy of replying to our communica- tions. Naturally, this would lead us to but one conclusion-- Intent to evade payment of the obligation. As you know, this is a binding obligation; but before turning it over to our legal department for collection, I am going to mailce one more effort to reach an amicable settlement. I am going to make it to your advantage to take care of this ac- count right away. Your balance is $24. If you will send me a check covering this amount, I will send you absolutely free (we will even pay express charges) a copy of the American Popular Dictionary. This is a volume of 676 pages, giving the proper spelling, pronunciation and definition of more words than any other dictionary of similar size that can bo bought at any price. It contains simplified rules of spelling, a summary of the postal laws, tables of weights and measures, a complete list of the foreign words and phrases commonly used in social and business corr83pondenoe--thirty-8even pages of specific in- formation which everyone should have at hand for aulck referenoo 132 "HOME-MADE" COLLECTION AGENCIES This book Is bound in flexible leather cover and thousands of copies have been sold for $4.50. We have only a few copies of this book available and if you desire to take ad- vantage of this remarkable offer, it will be neceesary for you to send your check immediately. Don't go to any trouble--BiiBply nail your reiittanca Vlth this letter in the enclosed envelope and as soon as it reaches my desk, the book will be shipped. Bemember the time limit on this offer and realt now. Very truly yours. If this offer is not accepted, the only recourse is to turn the account over to an attorney or an adjustment bureau. Many instalment houses maintain a collection bureau of their own, operating it under some impressive name, such as the National Mercantile and Adjustment Agency or the Central Adjustment and Collection Bureau. There is nothing to indicate that this bureau is connected with the house, and impressive letterheads give emphasis to the organization's ability to collect accounts "where others fail." The first letter sent out by a collection agency reads in this way- Sear Sir: The Johnson Home Purnahing Company of Chicago has placed with us for adjustment, your account amounting to $48.30. As we wish to afford you an opportunity to make an amicable set- tlement, we should like to have you advise us fully by return mail your reasons for not taking care of this obligation. We judge that it is simply an oversight on your part and your prompt attention will save both of us the embarrassment of hav- ing this matter taken into the court. It la hoped you will appreciate this courtesy and that this letter will meet with a prompt response in the way of a re- Bittance, or some definite statemant as to when a settlement can Ise made. Very truly yours, It^LL COLLECTIHG BUEEA'J. THE MAN-TO-MAN APPEAL OR THE COURTS? ,133 If no reply to this letter is received within two weeks, this second letter is sent out: Dear Sir: We are surprised that r.o reapcnse has been received to our letter regardinij the account recently referred to us by the Johnson Hone rurniahing Company for collection. It would seem to us that you would think too much of your local credit standing to allow this small item to be re- ferred to our local correspondent in your city, so we aro de- laying the bringing of suit in this matter, simply to give you one more opportunity to arrange for an amicable ecttlcaent. However, unless some oatisfactory understanding is reached within the next fifteen days, wo will instruct our attorney in your town to take inmediate actlcn to force payment. Very truly youro, RfiLL COLLECTIHG rUHSAV. Sometimes a third^ letter is sent out, but usually v?hen the correspondence has reached this stage and fails to bring results the account is turned over to an attorney for collection. There are serious objections to this course, however, for at- torneys are not much interested in small collections r.nd an en- tire follow-up system is required for keeping track of an account. :::H '■- THE HAr^JLTON COLLECTION / \GENCY 'HE- or"«« 0... .,. ,...S. .C^.T „,„c. ,0 THC „«0..„0-tO, O. Ct 0« ,H.- ..0 » SCTTLI~CT».S«T OHCt tOV »ltl 5«y • OS T » t T»Oo .i t. »N0 ^OUXSI Lr T H I C> ""'"' .ItOBCO.C.CI.ON. '""' ivl Form used % a "house" coUeciing agency ai a last resort before bringing suit 134. K\.ST RESORT SCHEMES Comparatively little is collected, because of exemptions, re- movab and other causes, and when a collecliou is made the attorney gets a large per cent of it. So the thi-eat and the lawyer are being discarded by many instalment houses in favor of die cash-up iuducement and the re-seliing plan. The fact is becoming more evident that if an account is collectible at all, other means can be devised, more expeditious and more effective than through legal steps. The man-to-man appeal reaches many who are im- mime from the debtor's court and it gets action from those who are simply negligent or "stalling" to keep from paying the balance just as long as possible. One clever collector by mail has had remarkable success in bringing in the money on small accounts, that were almost hope- lessly delinquent, by an appeal made on the basis of "Now vre understand each other, let's be square." It w a man-to-man method that gets many a dollar that threats would never pull. Here is one of his best letters: I3ec.r Sir: "Huh! Another dunning letter? Those people needn't Tie 80 nervous. Tlioy'll fet their money--sometime. " That's probably what you said when you saw this letter But instead of tossing this aside for "tomcrrow" or junking it altogether, just stop this time and consider US for a moment. We don't like to write dunning letters any better than you like to get them, but you see you have a little of our inoney--$6. That isn't much and of course you intend to pay it. But let's square this thing up NOW. Don't read an- other letter Until you have wrapped your check in this one and Eailsd it back in the enclosed addressed envelope. That will just rescue your name from our "unfair" list and you don't know bow jEuch we will appreciato it Very truly yours. After all, success in collecting instalment accounts is largely a matter of understanding your customers and concentrating your efforts so as .to keep them from getting behind. It HOW ONE SUCCESSFUL SYSTEM WORKS les is far more difficult to collect two instalments than it is one, and the further behind a customer falls, the less profitable his purchase becomes to you. Early persistence is better than later sacrifices. If a man falls behind in his payments it is not only harder for him to pay up, but with each passing week he loses his desire to go on with his contract if there h any way of avoid- ing it. 1"he man who is satisfied with his deal will either keep up the payments or make some explanation that will lead to further concessions as to time- But if the man falls behind, get him to reply by some clever question, get him to state his objection and then re-sell him. Bring new selling arguments to bear; overcome his objection by arguments, proofs, persuasion; make him want to keep the goods; make him willing to continue the payments. A mail-order specialty house, selling on instalments and allowing a free trial of the goods without an order deposit, has worked out a highly satisfactory collection system. While this method might not be adaptable to all businesses, it has reduced the collection losses to a very small per cent for this growing concern. At the expiration date of the trial, a letter to the purchaser expresses the hope that the goods have proved entirely satis- factory and attention is called to tJie fact that under the terms of the contract, which was properly signed and recorded, the first payment is now due. The letter adds that in case there has been any delay in the transportation a report should be sent at once, so that an investigation can be made. About a week before the second instalment becomes due, in case, the purchaser is still in default, a little additional severity of tone is adopted. This second letter opens with the statement that according to the terms of the contract, which the customer signed, the first payment on the goods is overdue and must be taken care of at once. Then, to make the urgency of the payment a little more forceful, the letter adds: "In fact.iyou will notice ty coneultlng the duplicate contract you hold, that the Becond inetalment la nearly due. And elnoe thla second Inatalnent date Is oo close, wo hope you will llnd it convenient to mail thia payment along with the first," 13G FEAR OF NOTORIETY BRINGS IN I^IONEY Tn case no reply is received to tliis letter within five days, a plain statement is sent out, stamped in red ink "Overdue," and uith the t}'pevvTitten sentence underneath: "Won't you taice care of this payment at once? We are balancing our books at the present time and we want to check up your account. " Again five days are allowed to elapse and then another statement is sent which also bears the red-inked stamp, "Overdue," and in addition this typewritten sentence at the bottom: "Won't you tell us If there is any reason why you ehould not pay this first iastalmont at once?" After another five days have passed, the second payment has become due and although no harsh measures for collection have been hinted at, it has been found advisable, at this point, to adopt the "must be paid noio" attitude. So a threat is made that usually strikes home. Two schemes for accom- plishing this have been tried with almost equal success. If the record of the sale indicates that the customer is a person who might dislike notoriety, this letter is sent: "You don't want to force us to wrlta your friends In thl8 matter. It would be embarrassing to you. But we must know why you pay no attention to our lett;ers---we must find out some- thing regarding your work and your financial condition, that wa may know just what the chances are of your paying for the goods you bought. You will compel us to ask your references and friends to get this information unless you give us a definita date when you will take up this matter. We will wait five days for your answer before subjecting you to treatment which eeems to us rather eevare, considering the email amount of your obligation. ■ K no rcplyhas been received to this letter the purchaser is placed in the "last resort" class. A letter of this kind goes out; FEAR OF CREDIT LOSS IS STRONG 137 "As you possitily know, wc aro mem'bers of a Merchants' credit and Trust Association, which aims to keep all merchants end mail-order houses informed as to the credit of all persons who buy goods on tine. This association extends everywhere-- even to the little stores in the country. Its purpose is to aa- Eure safety in allowing credit to any persons seeking it. By our promises to this association, we are compelled to make a report on all persons purchasing goods, and this places us in an embarraBsing position regarding your case. "We don't want to report your credit as BAD, and thus cut you off from any possible credit In future from merchants all ever the country as well as from mail-order hou3es--'because your account is too small to warrant such a disastrous course. Ec- sides. we feel that perhaps it is not a lack of willingness on your part to pay, hut rather some extenuating circumstances that make it impossible, temporarily, for you to handle the account. By your failure to answer any of our letters, you are simply compelling us to make this report, while in reality you probably are willing to pay as soon as you aro better fixed financially. So we are inclined to wait a few days — to hold the report over until the 12th, believing that you will tell ua Just what the trouble ie rather than force us to take this steD." If no reply to this letter is received it is safe to assume that llie custoraer needs tracing, for if a man is stalling he will fix; up some excuse tc offer, for by so doing— which is what ha wants, he plays for time. A second method is used where the sale record indicates that a reference to legal steps might strike the delinquent with fear. After the second instalment has lapsed for some time- long enough to indicate that the purchaser h not desirable as a customer, so the only thought is to get in the money, a letter of this nature is mailed: "776 don't want to adopt stringent measures to collect thla small account--we don'-i want to put It in the hands of the legal department, unless you force ua to do it. But that la Just what you are going to do, unless you answer our letters and tell us what the trouble is within the next ten days. " When this letter fails to get the reply, a letter written on the stationery of the Legal Department is sent out bearing the simple statement: 138 LAST RESORT MEASURES "Your account haa been placed in our hands for collec- tion. As you muat know, it ia Just sa disagreeable to us as It l3 to you to force a settlement. So we want to avoid harsh methods until wo are absolutely satisfied thtt you are unwilling to pay. If there is any reason for not closing this account at once, wo will expect you to tell us within the next eight days." Failure to get an answer to this letter Is taken as e\idence that last resort measures must be adopted. So the next letter aims to strike fear to the purchaser's mind from a different angle. Extreme tact is essential to the wording that goes into it. Here is one that has been used to good effect: "lou aust know the Government lawa regarding the uao of the Bails for fraudulent purposes. The government accepts na 'ifo' or 'ands' as an excuse — it punishes where Justice should he dealt. Mo man can expect to violate the federal laws without suffering the consequences. We have your signature on the returned duplicate of invoice — It is regular. Our aide of the sale has teen straightforward end honorable. Can you say aa much? What do you think the sicned invoice, we hold, must indi- cate to us? We'll tell you. It Indicates an evident Intention to obtain goods under false pretenses through the use of the ' United States mails. This ia a penitentiary offense. While we feel that to pursue the course laid out for us on such a small account would be harsh--lnasmuch as there may be some alstake-- you will force us to coianenco an inveatlgation. Unless we hear from you within the next atx days we will be compelleii to start the machinery of investigation." In case the account b large enough to. warrant it, this in- vestigation is actually started after a reasonable lapse of time, since it is safe to assume, that you are dealing with an unre- sponsible person who is immune to ordinary threats. But the purpose of this entire series of letters is to approach the de- linquent from different angles, one of which is likely to touch a tender spot, and experience shows that most men can be worked in this way. The justness of the debt and the uncertainty of the consequences if the threats are carried out brings most de- linquents scurrying to cover. How Petty Accounts are Collected PART XIV COLLECTING MONEY BY MAIL CH.'UPTER ft4 THE SMALL ACCOUNT that becomes over- due is a common form of annoyance and often of actual loss to the house. The time and Tncmcy spent in forcing a delinquent to fay mai^ eat wp the 'profits of several good accounts, and it not infrequently loses a good customer. In order to handle these petty accounts profitably^ the manner of collecting them must be REDUCED TO A MATTER OP ROUTINE that requires the mini- mum of effort and expense. How to do this, yet to give each colleciion letter the appearance o/" a SPECIAL and PERSONAL CO^IMUlTfCATION that 18 not offensive, is the aim of the shrewd credit Tiian and collection manager TRI\TAL accounts, accounts too small to receive more than the merest routine attention, are often the cemetery for profits. These accounts are peculiar to certa-in lines of business and present a perplexing problem, for the time required to collect one account personally will frequently wipe out the profits of half a dozen other accounts. Many houses nominally doing a cash business are compelled, as a matter of occasional courtesy to patrons, to charge little items on tlie. will-pay-in-a-day-or-two basis. Other houses, such as music stores, make a regular practice of charging small items, like sheet music, ^purely as a matter of accommodation. A good many Dewspapers and magazines find it profitable to bill 140 A SERIES OF COLLECTION LETTERS LETTER NO. 1 Uy Dear Sir- You ■111 find encloood a s'.alo- aent of account ehowtns balanca of tlO dua u« In dealing direct with tha • aoker tho accounts are nocoasarUy eaall and of great number, and I can- not thareforo afford to be at euch •ipenae for collection I hope you ■111 take thla Into conalderat Ion and that It »lll bo conTonUnt for you to nelie ce an Immediate reolttance cot- •rlng thlg eoall anount. I rot only »lsh to oa^e ityaalf tl:o trouble of for»srair.!! another Btatcncnt. but I ao quite aa annloua to BOTe you tho annoyance of receiv- ing another rocilndar- Slncerely your i^t-^c:?^?. LETTER NO 2 Uy Dear Sir I ao enclosing another atate- oent ahoirlna a balance of JlO In my faTor I belleie you ha>e been urgeA once or twice ))efore for pays^nt on thla account, and I do not write ttal* letter so much to urge you again for ptiycieBt as 1 do In hopes that we oay arrlTs at an adjustment ct the ac- count, which will save both you and ffls further annoyanca in auch a saalX matter. 1 aa putting ny cigarettes upon the market strictly upon honor, ond depend upon their being so good that CTeryooe who geta them will want to pay for thea If this 19 not tV\o feeling In your caao. however, ond you will write OS a llnp staling that you do not wlat to pay the account. I will cross It off with perfect good win. but of courae I would rather SlDcerely yo hU^Tf ■ ( LETTER NO. 3 i Ky rear Sir: j I hops that the soda will h-t pro ?ltSouo when you open thla letter and that the warm opot. which I know la n your heart, will Induce you to ( wrl uS your nana at tho bottom of ths j er.e oeed slip, and fill In tho namo j of your bank above, or eloo ooni laa [ ton 3 other form of parchment that wi; I be eciually negotiable. Beally, I am afraid If you j «on t pay thla cuaount Tory noon, you j will forget bow good the ■omoie" nau, j and how much you enjoyed It. Ihera wor i 135 of those little eaokes you kno », and every single one of then mus I have brought you eomo o^Joytcnt. Jus I think of lt--125 times ocao cu- Jcyoent. what a lot of Joy. I don't j know after all whether $10 will pny ( for lt all or not, but send alohz t:io 1 JlO tnysay. ! Clnoerely youra. ^i^^-fV-J'^ LETTER NO. 4 Ky Dear Blr: Z wleh to express to you cy deepest sympathy In your trouble, t suppOBO there ar* a few fortunata people who go through life without getting "up against' It ,* but I as not one of those, and thsreforal can I'ully appreclata your unfortunat9 situation. There are many klrtda of trouble, but It would be hard to Icifiglne anything much worse th.tn Ina- tlllty to pay a smoke bill of $10. Sin ely yo hUv.H-f '4^.cJ^ A mail-ordsr firm, selling cigars on credit, finds feto customers wJio cannot be readied by one of these letters AN INFORMAL REMINDER 141 subscriptions on trial, and news dealers conduct a business that is made up entirely of petty accounts that are payable monthly. Then thcie are the telephone companies collecting their rentals monthly. Newspapers that accept classified advertisements by telephone or by mail also. have a petty account problem to deal with and nearly all drug stores and retail merchants have some petty accounts on their books — accommodation business on which the small margin of profit necessitates bringing in col- lections at the minimum expenditure. All of these accounts are alike in three things : first, the debtor generally forgets all £:,bout the bill or he neglects to pay it because of its very triviality; second, this forgetfulness or neglect, usually, is the sole obstacle in the way of collection; and third, the collection "attack" must be right at the point — ^getting the customer to act at once — to pay in cash instead of good in- tentions. The first letter must be a reminder, nothing more, but giving enough of the details of the transaction to brizig it back clearly to the mind of the customer so as to get the xncney withoutany delay or expense for explanation. Frequently a regular bill is sent giving sufhcient data to bring all the facts regarding the transaction to the mind of the customer. A music house in Nashville brings an account to the atten- tion of the customer in an eflfective way with tJiis informal note: "Unless you are lilrely to tie in the store in the next day or two, will you send our cashier check or currency for $__ to talce care of the little charge of sheet music vrhioh you pur- chased the other da;'?" There is none of the jar of a typical collection letter about this note — it is more of an appeal for a reciprocation of courtesy extended: we extended a courtesy to you in charging this little purchase, will you not now extend a. courtesy to us by sending over the money right away? First letters, while maintaining the cordial tone necessary toward desirable trade, invariably fix a shoii; time limit for payment, fixing attention on the necessity for immediate aciioiv 142 FINDING AN UNUSUAL APPROACH Following the first letter or statement, a second statement is frequently mailed out on which is printed or stamped in red ink an attention-getting notice: AST DUE! This account has,no douht,escaped your notice. Please favor tis with a remittance by return nuiil ? Another music house in an Ohio city asks every customer £o put his initials on sales checks where the goods are not paid for at the counter, and then uses this as a lever for prompt collection: "The I. 0. U. Which you gave us to cover your purcnaee cf yesterday is held by our cashier. You may redeem this at your conver.ienoe any tine before next Saturday. "We carry no charge accounts but are always glad to de« ilver email itame on memorandum, asking only that they be ta):en care of before the next week-end. " Offense cannot be taken at this procedure and yet it impresses upon the cusLomer in a very vivid way a sm^il obligation that he might otherwise neglect. Such a letter as this is used only by houses doing essentially a cash business. With concerns that mal'.e a practice of charging purchases, the collection approach must be different, but still turn on some suggestion for immediate pajTuent. A book pub- lisher who sells a $2.00 book on a five days' approval basis, writes: Dear Sir. The five days agreed upon for the examination of the Mechanic's Hand Book have gone by and we know without even asking that the book has already made itself almost Indispensable to you. W:aY SMALL ACCOUNTS ARE TROUBLESOME 143 will you DOT oloao the traas&otlon ty remitting the $2.00 In whatever form la aOat oonvenlent for you? Fold a 92.00 hill In this ah'eet If you like and' mall It tack In the addreaaed envelope enolo8fid--va vlll take the risk of loss If It la Balled at onoe. Very truly youra. These letters are all short — an essential quality not only in first letters but in all the letters of a series intended to collect accounts of thb character. Anyone who has a trivial pur- chase charged, resents having it treated as a serious matter, so thai a short, crisp note making the one point of "pay Qow*' is essential. One Chicago house, which handles a large nimiber of petty accounts, combines the idea of novelty with that other ele- ment of appeal — the "you" element. This second letter runs: Sear Sir: You douhtloas have our laet letter on your desk aoao- where expecting to give it attention as soon as you havo a moment to spare. iTe certainly do not 7l4h to seem unduly insistent ahout 80 small & matter as this little aooount but you, as a hualness man, will readily appreciate OUR position. If we are called upon to spend even postage to collect each of these small hills. It really works a hardship upon us. Therefore we ask you to send us TODAY check or currency for the a"oovo amount. We know you will cheerfully comply with )t^i8 request and then we. sh&ll not have to trouble you again with remindera. Very truly yours. At the head of this form letter is a space for the amount of the bill, which makes the letter very easy to fill in. The third letter on these accounts is bound to assume a tone of greater seriousness. In fact, it must make plain that the creditor has a grievance against the debtor for not having paid attention to the^preccding two reminders. 144 THE SECOND AND THIRD FOLLOW-UPS Men who have been successful in collecting these petty accounts agree thcat the stereotyped formal note asking for payment is not eflfectivc. So the collector must seek for original- ity; he must cudgel his brain to find new avenues of approach, new phrases for his appeal. In the second letter it is espe- cially desirable to introduce the element of novelty. If an ac- count has been neglected for several weeks, a dry reminder that "you haven't paid yet" is not likely to extract the money. One firm combines a statement of its grievance and a review of the facts in connection with the account, so that there may be no possible misunderstanding in the mind of the customer of exactly what the account is for and why it should be paid without further delay. This letter reads: Dear Sir: We have twice reminded you ae politely aa wo know how Of your account amounting to $7.50. Do you not think it l3 rather unfair to cause us to write several letters in order to collect this trivial l}.ttle 1)111. especially in view of these facta: 1. We delivered these goods to you at your store with- out payment as a matter of especial accoEimo- dation to you. 2. You ^ero at perfect liherty to return the goods and have the charge canceled had you so desired. 3. You have not returned the goods or Indicated any question as to the correctness of the charge, and, 4. We naturally expect accommodation charges like this paid promptly upon request. Certainly we do not anticipate having to write three letters to obtain settlement. We fully appreciate that this item is very inconEe- Ouential from your point of view, hut it would really help we greatly if you would dispose of it now hy a procpt renittanoe, not hecause of the amount involved so much as the handling Vblch each one of the'se email accounts require. Very truly yours. SCHEMES THAT BRING IN THE CASH 145 The last paragraph is intended to relieve, somewhat, the smart left by the sting of criticism. The letter usually ends with a request for a check before the end of the week. If a fourth letter is used it must contain a mild threat that the next step is to turn the account over to a collection agency, or something of that kind. This note may be a very short one, or it may dwell at aoine length on the regret experienced in having to enforce payment of such a trivial account. Usually every firm has an established policy regarding this fourth letter ac- cording to the nature of its business. Unless it is the intention to turn the account over to a col- lection Rgency, it is best to frame the fourth and final appeal in a pcrsii olive tone rather than as a final demand. One house uses this persuasive appeal in its fourth letter: Dear Sir: You don't like to get dunning letters. Ve don't like to write them. Already wc have written you three times regarding this little account of $7.50. That's too mr.ch, isn't it? Too nuoh. bother for you over such a trifle--too much bother for us to get what belongs to us. Of course, you are going to pay this amount soon--but if you please, we'll take the money now as it's past due. Sow, do the square thing. Don't let this sheet out of your hands until you wrap your check in it and mail it back in the enclosed addressed envelope, so that we will not be put to the unpleasant necessity of cutting you from our list of those wb.0 are entitled to credit accommodations. Very truly yours. Many firms, whose business is made up largely of small accounts, find it necessary at times to wield the "big stick." One of the effective ways is to send out letters written on the stationery of their own lawyer or in the name of a house collection agency, as previously described. I4G ^ VIELDING THE 'BIG STICK' Some concerns feel tliat this course is undignified but many of the largest newspapers, telephone companies and news dealers in the country maintain adjustment bureaus for this purpose. Collection managers are always seeking some scheme for handling these accounts without the necessity of filling in ancf addressing individual form letters. An eastern publisher has devised a series of collection slips which are used in the collection of subscription accounts. These slips of paper are of uniform size, made to fit an outlook envelope. They are gotten up in rather attractive style so as to be pleasing to the eye. The whole series may be filled in by carbon copy process immediately after the order is entered. This publisher writes the name and address and the amount of the bill on the five collection slips, which constitute the series, at the time he makes out the bill. Each slip contains a distinct collection appeal and the results the publisher has obtained from tliis method of collection are fully as satisfactory as the more individual appeal contained in the form letter and it is a much less expensive method of handling the business. This publisher's collection manager has come to the conclu- sion that the form letter is nowso generally known and recognized, not only by men in business but by everyone else, that its old time force as a dictated communication is practically lost; and he has found that -whatever advantage there may be in this factor is more than offset by the novelty of the scheme which he uses, and the appeal of the novelty itself on the minds of the debt- ors. Everyone likes a good scheme — a new idea — and this is recognized as such. The larjje returns from these collec- tion slips are perhaps as much an expression of appreciation of the scheme itself as a response to the request for payment. Just as a good salesman is forever searching for new schemes, new ideas, new angles of approach, just so the collection manager "sweats blood" in trying to think up new schemes for bringing in the money. Persuasion is effective when given a new angle. The element of novelty is an account-saver. Schemes, new ideas, new methods^ of approach, new appeals — these are the vehicles that bring in the money and retain the good will of the customer. Collection SCHEMES for Use When Other Methods Fail PART XiV COLLECTING MONEY BY MAIL CHAPTl^R r>5 THE USUAL methods of inducing delijiquent customers to ''pay up'' sometimes fail. In such cases the collector must resort to exceptional tactics; he must use whatever weapons the exigencies of the occasion demand. But he must never lose sight of the main object of his activities — to Collect the Cash. The very nov- elty of his plan of attack often wins out when other schemes prove ineffectual. Here are FIF- TEEN SCHEMES that are employed by some of the cleverest collectors in the busiiiess TIMES come in every credit man's experience when the old methods fail. Hard-shelled debtors manage to pass every guard of precaution, and set themselves down with seeming immovability upon the firm's boolcs. Chronic de- Knquents manage to get past the border-line of credit. They are proof against all ordinary collection methods. Trained upon them, statements and second notices fall without effect. The cleverest letters lose their pulling power. Such debtors must be grouped into a class by themselves. They are subjects for the credit man's ingenuity. And it is for these that unusual collection schemes must be devised. Every credit man knov/s this situation, whether his business is wholesale or retail, and the conditions are the same in the regular mercantile establishments and in the instalment houses. These schemes have bepn used successfully and will offer suggestions to every collector. If the debtor is remotely located, U7 148 USING THE ^YIRE TO HURRY COLLECTIONS it is often possible to get results by deserting the mails and turn- ing to the more speedy and urgent ways of communication. SCHEME 1— A LON'G-DISTANXE TELEPHONE TALK A St. Paul wholdsaler had written two or three letters to a merchant in another state who owed the house $4iOO.OO. The debtor replied with glowing promises to pay, but persistently neg- lected to name a date. Then the credit man resorted to the wire. Atfifty cents a minute, he got the merchant into the telephone booth and talked to him in heart-to-heart fashion. He told him that the house was under heavy expense at the time and simply wanted to know when it could count on his check. Consistency with his letters compelled the merchant to be courteous and the novel effect of a three-hundred-mile call on the wire prompted him to make up his mind quickly. Settle- ment was promised in tea days. Better than his word, he had, a check on the credit man's desk less than a week later. The 'phone call had given the collection efforts that personal contact tliat the letters had almost reached, but not quite. Like the quick trip for a personal conference that lands so many lagging but good-intentioned debtors, the long distance wire is a net that will pull in tardy payers when the best of letters fail. SCHEME 2— USING THE LETTERGRAM. AS A FOLLOW-UP Since the "night letter" service went into effect, at least one wholesaler has used it in his collection work. One cannot open- ly dun a customer by wire, for it is illegal under the blackmail laws to give publicity to a buyer's indebtedness. But this dealer uses the wire most effectively as a follow-up. A customer ordered a bill of seasonable goods, ignoring a back account. The v/holesaler knew the dealer was in a rush and so used the oi-der as a lever and telegraphed him: "T?hen office closed tonight, no reply had tieen received to our letter of the eighth, asking for a settlement of your ac- count. Has check heen mailed? Your rush order is ready in the ohipping department, hut we feel we cannot let it go forward L'ntil this matter has been adjusted. If you have mailed chock, please wire us collect eo goods can go forward tomorrow. " L.\ST DISCOUNT DAY REMINDERS 14D Such a telegram as this is permissible, because it really asks regarding the account only as a matter of informa- tion.. From the merchant, who is anxiously awaiting his goods, it is practically certain to secure at least a partial remittance. SCHEME 3— RIVETING ATTENTION ON LAST DISCOUNT DAY In cases where a special discount is allowed for payment within, say, thirty days, it is a good plan to remind the customer a day or so ahead of the date when this discount period expires. One firm makes a very clever use of a telegram in this connection. On each customer's bill is printed in red ink a statement to the effect that if it is paid by a certain date — thirty days from the date the goods were supplied — that a special discount of two and a half per cent will be allowed him. Suppose this discount period expires on December 15th. On the morning of De- cember 14th, the customer will receive a telegmm worded: Today is the last day for discount on Hovem'ber account. JAMK3 JOHIiSOU & CO. This acts as a strong reminder to the customer and impresses upon him the necessity of sending the check the day the telegram is received. The plan takes into consideration the fact that, when the average man receives a routine statement or a request for payment of a bill, he puts it aside for further attention and in many cases it gets mislaid and is forgotten. The telegram scheme guards against this — it demands im- mediate attention, and usually gets it. The customer has no excuse to say, *'I intended to take the discount but forgot when it was due." SCHEME 4— A CALENDAR PAD "REMINDER" A more gentle, but highly suggestive, scheme is used systematically by an eastern hat manufacturer. A week or ten days before a bill 'n due the credit man sends the customer a 150 pro:mises tiiat coinie back home card printed in facsimile of a leaf from a desk calendar pad. The large figure on it, representing the day of the month, shows the date the bill is due. In the blank space belpw is printed in imitation of handwriting a memorandum, so that the leaf reads: AUGUST iO /^^ry.^c ^^^^ -^..^ ^^ ^'f SCHEME 5— QUOTING FROM CUSTOMERS' LETTERS A somewhat similar scheme is used on the sensitive debtor. One firm often collects the number of promises that a debtor has made in letters written to the house, and arranges them in one, two, three order on an attractive card as follows: John Black & Company, Hughesville. U. Y. , PROMISED Blank, Blank & Sona on-- Uay I0th--"W1H remit in ten dayo. " May 25th — "You will have check promptly by the 1st." June 10th--"Acoount 3 are alow but will curely settle la firteoa days. " ALL PROUISES UHFILLEB Don't Promise Any More But Mail Check Today. HOLDING UP ORDERS TO FORCE PAYMENT 151 The card is mailed with a special delivery stamp and it makes an immediate impression. Ten cards were recently sent out by a certain firm and eight brought in settlement within five days. SCHEME 6— THE ELOQUENT QUESTION MARK Akin to this letter scheme is another equally as unique that has aroused many lagging debtors. The house sends a letter, by special delivery, formally addressed on the letterhead but in the center of the page is simply a large interrogatioa point printed ia red. The letter is signed as any ordinary letter. The debtor may not catch the point instantly, but invariably he will rummage in his mind for something that he has over- looked or that has reference to the house sending the letter. In the majority of cases he will hit on his account first. SCHEME 7— HOLDING TIMELY PURCHASES PENDING PAYMENT The leverage of the urgent order is just as good a medium for the retail credit man as for the wholesaler. It is especially effective if the goods ordered are intended for gifts, as is often the case One big department store watches such purchases carefully. For example, if a customer, who is back in her ac- count, orders silverware engraved, the credit man waits until the good3 are ready for delivery and then sends a polite note: "The engraving department advlsea ^X9 that the set of epoons you ordered are now ready and we had intended to send them out to you this afternoon. We have Just noticed, however, that your last month's account etill remains unpaid. Won't you send ua a check to cover this at once? Then we can have the spoons delivered immediately. We feel sure you would hardly irant this account to become any larger on our hooks. Two or three days before Christmas, or a wedding, or birth- day, this scheme is bound to force the buyer to "pay-up." SCHEME 8— FORCING COLLECTIONS ON C. O. D. DELIVERIES Every retail credit man knows tlie value of any scheme that will jolt the customer into a recognition of the condition 152 HARNESSING THE C. O. D. ORDER of his or her account. One l>Ig store docs this through its C. O.D. service. Suppose a lady customer, whose credit is per- fectly good but who becomes negligent at times, lets her account drag thirty days behind and then, without heeding the store's letters, comes in and orders more goods. When the pur- chase slip comes up for O. K. the credit man notes tlie con- dition of the account and gives orders to have the goods sent out C. O. D. Next morning the driver rings the customer's doorbell and asks, say $20, for the package he brings Instantly the lady becomes indignant. There must be a mistake, she insists. Her purchases are always charged. The driver, however, has no alternative — he must take back the money or the goods. He suggests, however, — it is not the first time he has played the part — that she call up the house by 'phone and ask the credit man for an explanation. This is exactly what the latter has counted on and in answer to her call he takes a hurried look at the books and explains. Her account, he notes, is considerably overdue. Probably some subordinate in the department, unappreciative of tlie e^:tent of her patronage, had held up the charge ticket. Of course it is unfortunate; tlie store apologizes; the driver is called to the 'phone and told to leave the package. The customer receives her goods in triumph, but she also receives a jolt straight from the credit man regarding her delinquency and he has had (^portunity to mention if per- sonally, a thing he could not very well do without an excuse. A day or two later a check is pretty sure to find its way to his desk. SCHEME 9— COLLF.CTING PAST DUE BILLS ON C. 0. D. ORDERS Another store uses the C. O. D. purchase as a collection in a somewhat different vvay. A customer, whose account has been long neglected, comes in and orders goods sent out C. O. D. The credit man leaps at the opening. A bill is made out for the purchase, and to it is added the account on the books. When the driver delivers the goods, he has with them the statement in full and he has but one alternative — to take back the money in full or the goods. If the customer wants the articles badly, there is but one way to get them — pay the •ERRORS' THAT BRIXG IN DELINQUENTS 153 entire bill. At least the scheme serves to rouse her to the delin- quency and get her into touch with the credit man. SCHEME 10— AN INTENTiON/i, ERROU IK THE STATEiMENT A Michigan merchant stumbled onto a collection scheme by accident — and then used it systematically. A farmer who lived at such a distance that a personal call was impractical, owed $10 for a long time. He was one of those men who are counted as "sure pay sometime" but who are never hurried up by a little thing hke a monthly statement or the ordinary collection letter. One day he appeared at the store, highly indignant. "Look here," he said, "I don't owe you any $20. I have just received this statement and I know it is twice too much." One glance at the sLatement showed the merchant that the bookkeeper had made a mistake in filling in the amount of the bill. It took but a few minutes to show the farmer the books and convince him that it was an error — and then the merchant in the suavest manner possible asked him when he could pay the actual amount of the account. The upshot was that when the farmer left the store he carried with him a corrected state- ment ornamented ^ith the "Paid" stamp. The merchant now goes through his books every month and checks ofT the accounts that are to be billed at twice the amount of the actual debt. Invariably the padded bill brings the man in — sometimes he is angry, sometimes only protesting, but it always gives an opportunity for a personal interviev/ and a chance to talk the account over and arrive at some basis for settlement. SCHEME U— KOVEL WAY OF WIELDING "BIG STICK" Carelessness is often responsible for slow payments. It is the put-ofF merchant who annoys the credit man. This class must therefore be handled in a way bordering on coercion. He must often be goaded in the side. One concern rouses this procrasti- nating merchant by having the advertising man write a short news item covering a h}'pothetical law suit of its firm against a certain debtor. The firm is given an execution of his property, and the story is printed as a news item in ordinary newspaper type, with a heading on it and a date line. This is torn as you 154 LAST RESORT SCHEMES would tear a clipping, and pasted in the center of the letter to the debtor. Undernaath the clipping is written on the type- writer: " You would not want us to do the same by you, would jou, Mr. ?" SCHEME 12— THE PERSONAL CALL OF THE COLLECTOR. Another effective scheme of the retail credit man is to play on the average customer's horror of a personal collector. A Chicago store uses this in a unique way. When the account has run behind and the routine letters have failed to get a response, the credit man calls the buyer on the 'phone. "I just called you up to tell you," he says, "that I have a memorandum on my desk to have one of our men call and see you tomorrow. I find that your check has not come in as yet, and I have called you so that if you wish you can wait until tomorrow and hand it to him personally. This will save you the bother of mailing it." Of course the purpose of the telephone conversation is to effect just the opposite result. The average debtor wants to head off the collector, and, in many cases, this 'phone message will call forth an urgent request not to have the collector come around as the check will be mailed that m'ght. SCHEME 13— THE "BAWLING OUT" METHOD OF COLLECTING Then, occasionally, every retail credit man finds one debtor on his books on whom even more extreme measures must be used. Hope of retaining the customer's patronage is abandoned. The only aim is to get the money. When a debtor reaches this stage he is given by one store what it calls the "bawling out" process. A real estate broker was indebted to a number of stores. The credit man for the largest creditor felt that this man could pay his bills if he wanted to and learned, upon investigation, that he was actually hoarding considerable cash in order to handle some deab which he very much desired to swing. Nat- urally the credit man deubted the propriety of the customer's using the merchant's money to run his business. The collector called a number of times and letters were written, but all to no effect. Then the firm's star collector was called and the "bawling out" process prescribed. The "CERTiriCATE OF CREDIT" APPEAL 155 collector decided to use it at the "psycholo^c^l moment. " So each day he waited until the broker was in conference with one of his clients; then he would open the office door and, in elevated tones, ask the broker when he expected to pay that bill he had been promising to settle for three months past. The real .estate man stood the strain for a week, but constant fear of los- ing a sale by the untimely entrance of this collector wore him out, and at the seventh call he paid up. SCHEME U— THE WOMAN COLLECTOR One instalment house has been very successful in its bard local collections by sending a lady collector to call on its men delinquents. Few things are more embarrassing to a man than to have a young woman approach him in an office full of his associates, lean over his desk and in a stage whisper ask him when he is going to pay the $10.00 he owes her firm. In nine cases out of ten, with this pressure upon him, he vnll procure the money on the spot, if he has to borrow it SCHEME 15— THE CEaTIFlCATE OF CREDIT Many houses have brought in the money by offering a senti- mental inducement to the debtor. An instalment firm selhng by mail makes clever use of a certificate of credit. At a certain point in the follow-up, a letter is sent the customer enclosing a sample certificate and explaining that as soon as the account is settled in full a properly filled in and authorized certificate of credit will be presented to him. This, it is pointed out, wUl be a valuable asset to him in dealing with other concerns — in fact in every transaction where his credit might be a factor. The certificate, an elaborately lithographed affair, has been found remarkably effective when used on country and small town buyers. In their desire to possess a properly filled in cer- tificate, many have paid their instalments before they fell due. In any event, these schemes are more or less emergency methods. Except in the last case, these methods are em- ployed only when ordinary methods have been exhausted. The clever letter is always the most diplomatic collector. But it does not always win. When it faib, the scheme comes into its own. Holding' The Trade Of The Poor Credit P^isk PART XIV COLLECTING MONEY BY MAIL CHAPTER 69 THE POOR CREDIT mtmg of a customer or of a prospective customer is ample reason for limiting his dealings with the house. But to restrict those dealings by refusing to sell goods is not only cutting crff a possible source of present profit^ but SHUTTING OFF the probability of FXJRTHER DEAL^GS in that direction. Various ingenious methods by which the experienced credit manager ^^ turns down^' poorhj -rated customers , and at the same time retains all or part of their trade by assisting them to handle it on a cash basis ^furnish some of the most profitable lessons in the study of salesmanship by correspondence iOSSIBLY Ibe hardest letter to write in the whole field of business correspondence is the one which turns down the order from a merchant having a poor rating at the same time getting his business on a cash basis. And this is a proposition that comes up almost daily to the credit men in large wholesale houses and in manufacturing establLsh- ments selling to dealers. To the credit man, the world appears to be full of storekeepers whose imaginations are greater than their capital — merchants who dream of the great businesses they will build if they can only get credit. It is only one out of a hundred v/ho makes a noticeable success; some drift along, forever haunted by sight- drafts and overdrafts, and the others sooner or later fail, and 158 PROFITABLE TRADE WITH THE SMALL DEALER 157 so wholesale houses are constantly on their guard against losses from this class of customers. At the same time, these hundred merchants represent a Volume of business that the wholesaler cannot altogether ignore. TVhile a' dealer's credit may be questionable he may have con- siderable trade that it is very desirable to get if it can be se- cured on a cash basis or if his orders can be held down to a safe margin, Human nature is so constituted that the "httle fellows" who have not established a basis for credit are always the ones who are most touchy of their reputation, and so great diplom- acy is required in handling them in a way that will hold their trade. There are some firms that make no effort to secure any of this business. If a merchant's rating is acceptable, well and good, his orders will be filled, but if there is any doubt as to his financial standing he is informed in no uncertain terms that his patronage is not desired. But the credit man who is looking after the larger interest of his house, always meets the vast army of "^ttle fellows" with a welcoming hand and an en- couraging smile. If he must turn one down he does it so diplomatically that the way will be left open to go after his business later on if the mer- chant becomes thoroughly established. In every city there are prosperous business men who started out wiih small capital and were considered poor credit risks at one time. And so the credit man must look upon every customer as a possible Marshall Field. The large-calibre credit man realizes, moreover, that he is a salesman as well as a collector and must coddle along the small dealers, even at the expense of an occasional lost account. This is the price the house is willing to pay for the additional business that could never be secured by limiting the credits too strictly. No definite rules can be laid down for handling this class of business. The form letter is usually impractical, for each case must be diplomatically handled with a full knowledge of the standing, reputation and record of the customer. The letters given in this chapter are not intended as models to be generally fol- lowed, but they may point out certain attitudes that should be guarded against and they may oiler some suggestions as to 158 AN UNDIPLOIMATIC DUN diplomatic methods that have proved successful in holding the business of this class of customers. Here is a letter from a type foundry to one of its delinquent customers: £>oar Sir: We are la receipt of your faror of the 7th, encloeinc an order for On referring to our ledger we find that you have a Icnj overdue account on our ledger amounting to $54. 7G and we are surpria^d that you ehould send us another order without enclos- ing a draft to take care of this old deht. Of course, we appreciate your business ana aim ta 'he eery ilheral in our torma. You must admit that we have, been ez» ceedingly lenient in your case. But it la not 'business-like to ist these old accounts accumulate and it looks to us as if it ^ould be to your interest Just the sane aa it is to ours for you to tako care of this obligation at once. You must understand that wa have to call et halt soma* time and so we do not feel warranted in filling this last order tintil you send ua a remittance covering the old account. We hope to receive a check toy return mail andi we will then fill your order of the 9th With toest wishes we are. Very sincerely yours. This letter was evidently written while the credit man was "hot under the collar," but it is not unlike hundreds that pass through the mails every day — letters that are sadly out of tune, letters that are discordant in arguments and in language. If the printer had some important job requiring material that could be secured only from this particular tj'pe foundry, he would probably hustle around and scrape up the money to set- tle the old account. But it is equally probable that no more orders would be sent to a house that handled his account in this manner. Even though he may have been negligent about his bills, the house could ill-afford to collect the account at the expense of his good will. A LETTER THAT DOES NOT OFFEND 159 A new credit man coming to this foundry had a broader grasp of the functions of his department, and in handling a similar situation, wrote: Sear Slr: Your letter of 'tE« 9th aceompaDylng your order for ___ lias Just teen received. We thank you for favoring us with thla >)U8lnes8. Do you realize that your previous acdount for #34.76 Is now overdue nearly three months? It may have heen overlooked, although your attention has heea called to It seveial times. We are at all times willing to grant our printer friendo reasonahle aocommodations, but- w^en «e allow them to keep addir.3 new accounts without offering a aat.cl'ement of their old ohligations we feel we are doing both ourselves and the customers an Injustloe. Please understand that ite appreciate your business very fflucli and we try to merit it hy tho quality of goods wa sell and the treatment accorded our customers. We hope, therefore, that you will send us your cheok for this old account hy return mail, and Immediately upon its receipt we will be very glad to give rc'ir order our very beat attention and ship it to you promptly. We trust you will look at this matter in the same'llght fig we do and that you will give thla past due account your im- mediate attention. Vei'y truly yours This letter is diplomatic; there are no harsh words, no Abuse. And yet the point is made perfectly clear that further credit cannot be secured imtil the old obligation has been wiped off the books. Throughout the letter there is evidence of a spirit of fairness that will reach most men when bluster and bullying would have no effect. The delinquent is made to feel, no mat- ter what happens, that he has been treated courteously and fairly, and the hotlse retains his good will. The best credit man is not the one who has the smallest percentage of bad accounts. Every hou^e establishes the per cont o^ loss from bad debts which the business will stand and 160 A LETTER TO A POORLY-RATED PROSPECT below which it does not want to go. So the good credit man puts salesmanship into his letters and thinks not only of keeping the loss from bad accounts from rising above the estab- lished allowance, but also of increasing the volume of business that his house is doing. He looks to the future as well as to the past. Here is the letter sent out by a Chicago wholesaler to a customer on whom reports had not been satisfactory. It does not tell the customer bluntly that his standing is not satis- factory. A sugar coating is given to a bitter pill by assuring him that the reports "do not give the required information," and as an inducement to secure his order on a cash basis, a special discount is offered: Dear Sir: In seeking Information from the usual outside channels, for tasing credit for you, we find our reports have not been eufficient in detail to permit us to arrange this matter on an etiuitatle basis. These reports all speak very highly of you in a personal way, hut do not give us the required information in the way of assets as compared with liabilities to enable us to arrive at such a credit basis as ws feel you unijuestionably are entitled to. We assume you want our eoods for your early fall trade. It is Imperative, therefore, that we ship immediately. We sug- gest that on this order you arrange to favor us with draft, in consideration of which we will be pleased to alloTr you a special discount of Z%. ■ Bear In mind that we suggest these terms only on this first order, as we feel confident we can easily arrange a credit basis for all future shipments we are positive you will need in our line. We sincerely trust you will take no personal exception to our above suggestion, which we have made in your interest Bolely. Thanking you for the kindness of an immediate and, we trust, favorable reply, we are,' Yours very truly'. While the merchant who received the letter was probably disappointed, there was nothing about it to offend him and he FORCING A PART PAYMENT 161 could have nothing but respect for the house that conducted its affairs on such a courteous, yet business-hke basis. Asking a delinquent for money can be just as dignified and courteous as trying to sell him goods — and it keeps the customer ia a friendly attitude. A 'grouchy" credit man may, in one letter, lose to a house a business it had been years in developing. Here is the letter from another wholesale house to a customer who had been allowed a small line of credit but who had fallen behind in his payments: l)ear Sir: After careful consideration of your recent letter wo are sorry to inform you that we have decided to hold back the order. We regret this, I assure you, quite as much as you do, tut our unalterable rule of business in this regard leaves U8 no alternative, We do not in the least like to lose your account, and we sincerely trust we may, in the near future, come to 8om» agreeable understanding. It is to be hoped that^^you will soon dispose of the property you mentioned in your last letter, and that its sale will enable you to clear up the outstanding balances against you. Our action with regard to your case is to be especially regretted, owing to the lateness of tie year; we atill feel you would be best served if you sent ue your remittance of $200.00, and let the shipment go forward. We say this in all earnestness, as we know what it means to go into the open market at this tlmo to buy Christmas goods. Should we not hear from you by next Thursday by wlro or mall we will have to unpack your shipment and place back in etock, as It is taking up valuable space. Very truly yours. This is in reality a collection letter aimed primarily "to get the money" by deftly suggesting to the merchant how hard it would be for him to go into the open market to buy Christmas goods, and the fact is driven home that he cannot hope to have his order filled without a substantial payment on account for he is assured that the shipment will be unpacked unless he w 162 SALESRIANSHIP IN A COLLECTION LETTER heard from by a specified time. This letter is a shrewd blend- ing of coflecting and selling, and while it may hurt, it gives the necessary prod to an easy-going merchanl.that he cannot expect continued credit unless he looks more diligently to the payment of his bills A wholesale house was unable to secure the required in- formation regarding a new merchant and wrote him: Dear Sir: Concernlne your valued order, we find It best to write you directly relative to it in order that we may arrange the nat ter of credit terms to your test adyantage. ffe have experienced a little trouble in securins def- inite Information for basing oredit. But after all, this is a matter which concerns us alone and we would much rather secura the necessary information direct from you than from outside sources.' Our experience in the past has been that when we have gathered information through outside channels, very fre- Quently it does a merchant a serious injustice and it is there fore always our preference to go direct for the facts we need; as we are doing frankly in this case. We enclose a statement and will appreciate it very such if you will fill this out so we can determine upon a credit basis from the facts you submit. It is understood, of course, that this statement is to be held strictly confidential and used only by ourselves. The particular clese of goods which your order calla for has proved one of the most popular lined that we are showing this fall. You will find an immediate demand for it and one that Bill prove very profitable for you. We will appreciate an early reply, with statement prop- erly filled out in detail, and immediately on receipt the order will have our preferred attention. We trust to be able to make Shipment at once. Awaiting your reply, for which we thank you, we are. Very truly yours, This is a diplomatic letter, for it cleverly suggests to the merchant that the house is doing him a favor in sending directly to hirn for information, thus avoiding the injustice that might A FORCEFUL REQUEST FOR CASH IN ADVANCE 1G3 follow from incomplete outside information. And then the fourth paragraph brings in the selling talk intended to stimulate the desire of the merchant to have his order filled promptly. A large grocery house, on receiving an unsatisfactory re- port from the mercantile agencies, wrote this letter to a would-be customer: Daer Sir: We Tiava studied the data regarding your f Inanel&l con- dition and unless there la eomo mistake In the Information fur- niehed us It would appear that your capital is not large enough to Justify ua in letting your order go forward on our regular terms Your reputation Is well vouched for and on the score of your good Intentione we are quite satisfied, but it is positive- ly necessary in such Instances that your assets be such as voulA aosuro us that you could taie care of maturing accounts; It is not so much a Question of whether a dealer will pay a bill aa -vhether he can pay it. It is not at all Improbable that the data wo hafo is In- correct and therefore we enclose a blanjc form which wa will aslE you to fill in and mall us together with the names of a few houses you have had dealings with. If agreeable to you, please deduct Z% cash discount aa4 include remittance with your reply, and further delay on your order will be unnecessary-- the shipment will then go forward at once. Very truly yours. Such a letter is severe but m some cases necessary, espe- cially with weU-meaning but inexperienced men who are enter- ing the mercantile field with a limited capital and everything about the business to learn. The third paragraph affords a little balm for the sting, by the suggestion that the information secured may be incorrect. Some firms depend upon the "hard-up" argument for mak- ing collections ^nd it is frequently the refuge behind which a credit man tries to hide his real motive for denying credit — a 164 A COMMON FORM OF COLLECTION LETTER false position that deceives no one. Here is an' example of such a letter:. Dear Sir: Since your vlait at our office a few weeks ago, we havo ceen pleased to receive an order from you amounting to $475.00, We want to assure you of our appreciation. You are undoubtedly wise in putting in a good subatan- tial list of dry eooda for the fall and winter trade, and we trust' that you will dispose of it quite readily. We are anxious to chip you thiq order as soon as possi- ble, but as we have several very larsa debts to meet in the near future T?e are desirous of doing business on a cash basis, hence we would feci especially gratified if you would do your beat to favor U3 with your check for the order, leas 2% discount. We are asking this favor of all our customers and we trust that you will not feel that we are making aa exception in your case. Rest assured that cuch is not the case. It is our financial need that makes it urgent that we pureue this policy for some time to come. Trusting you will strive to comply with our susseation* ve beg to remain. While it may have been true that the company had large debts to meet and really needed the cash, yet the letter was sent out by one of the oldest and largest dry goods houses in the country and it is doubtful if its statements were believed The assurance that this same request was being made to all its old customers is equally preposterous, and the merchant who received such a letter could not help feeling that the house was not treating him honestly. Even an inexperienced dealer is not so easily fooled; a frank, business-hke statement that his credit is not acceptable will always prove a surer method of bringing forth a check and it always commands the respect of the customer. Much more effective is the letter that tries to get the cash with the order by pointing cut to the customer why it is to his advantage to buy on the cash basis. One credit man cleverly ADVANTAGES OF A "CASH \VITH ORDER" SALE 165 points out how the tliree per cent discount for cash is just the same as making an additional three per cent profit on hlg goods and receiving this profit in cash before one of the crticles is sold. Another firm has an array of figures to show how seldom merchants fail who buy for cash and keep up their own col- lections. "It ia not that we hesitate aCout extending credit but we always take occasion to adrlse dealftfa to stick to the cash policy as much as possible. " This sentence rings true in the credit letter because the firm goes on to give specific reasons why such a policy is to the mer- chant's advantage. The firm does not shake confidence in its own management by the cry of needing money. The letter is dignified and business-like. It carries conviction because the reasons are logical and "good business." And then there are credit men who talk to young business men in a heart-to-heart maimer, telling them that they are willing to extend the credit but it has been their experience that it is advisable for merchants to go slov/ until they get estab- lished and to order in small quantities until they are thoroughly familiar with the needs of the field. A firm in Chicago manufacturing physicians' and hospital supplies writes in a similar way to young doctors who have sent in their first order: Dear Sir: It ia a pleasure to Inform you that the replies re- ceived from the persons whom you gave us as references as to your personal standing and integrity aro very satisfactory and we have accepted your order on the terms outlined in our previous correspondence. We notice, however, in looking over your list, a number of articles for which we believe you will have no inmoliato need --la fact, some of the Instruments aro used only for special op- erations and are likely to remain la your case for many months before you will have use for them. 166 ONE WAY OF REDUCING CREDIT RISKS A8 our experience of over 30 years in equipping pnysi^ clana has taught us that the flnp.noial returns of a young physician starting out in practice are not always as rapid ap he may anticipate we would aueeest the emission of the instruinenta we have enumerated helow. If occasion should arise for inunedi- ate need of any of these instrxiaents they can bo supplied i)7 telegraph order within a few hours. By reducing the amount of the order you will also re- duce the amount of the payments, enabling you to put aside a sur- plus which may be of considerable advantage in case of emergency. We trust that our suggestion will bo taken In good part, and In the interval, awaiting your instructions, we will have your order made ready for shipment so that there may be no un- becesaary delay. Vory truly yours. ^jCijLX^id*.^ . No one could take offense at this attitude — that is, no one whose business is worth goicg after — and there is something about the letter that shows a genuine interest on the part of the firm. The doctor really feeb that the house is giving him good advice, is looking to his interests as well as to its own and so the order is cut down and it is done in such a way that it increases the good wiD of the customer. One of the every-day experiences of the credit man is to pass on orders from customers who are inclined to stretch their credit accommodations. The trick is to induce the cus- tomer to reduce the size of his order without offending him. Here is the way a wholesale grocery house bluntly handles this class of business: "ffe are not satisfied with the replies regardlaff your standing. The total amount of your order would not warrant ua In running any risk. If you are disposed to pay us on aocount, half the invoice, $48.30, and promise to remit the balance In thtt usual thirty days, we will send on the goods as quickly &s possible. " Here is the diplomatic way in which a rival concern per- suades the customer to reduce his order; CUTTING DOWN THE ORDER IC7 Dear Sir: Tour order for goods received. We are quite pleased to hear from your part of the country, and wo trust that businesa Is on the upward trend'in Streator Your intention to put in a etoclc of flour for winter trade Is good policy, but the brand you order ia uot one that we feel will be an Al seller in Streator. It la. Of courae, possible that you may be able to dispose of the entire order within a few inontha, but our past experience teaches us that it ia always teat for a dealer to go slow on a new brand of flour. Instead of sending you a $300.00 order, we feel that it will be to your advantage to try $100.00 worth of the flour firet, and see how it sella. After that you will be in a posi- tion to know positively whether thia brand will be an aaset or a dead burden on your hands We never like to send any dealer a till of goode that we think will not come up to his expectations as a seller. Now. up in the country districts of North Dakota this hrand of flour which you desire is a big eeller. A large demand has been created for it up there, but in your section thia demand we feel has not been fully developed. Hence our %dvice to you. Very truly yours. Country Credit Departii-nl After reading this letter the merchant feels like thanking the wholesale house for giving him such good advice and look- ing after his interests by cautioning him not to tie up his capital in an unsalable hne. A credit man who tried, not very successfully, to combine a collection and selling letter, wrote to a comparatively new customer: "He are in receipt of your valued order given our rep- resentative, Mr. Hammond, and we wish to thank you. Our busi* ness relations durinj our acquaintance have been very pleasant and we trust have been profitable to both buyer and seller. We note that the remittance for your last purchase--$288. 89--i3 10 ilays past due--a condition for which we are at a losa to account --Bsrhapa an oversight on your part. 168 THE TRUE VERSUS THE FALSE NOTE "Before shipping this large order — $978.30--«e would take oecafrlon to euggeat that you oblige uo by reducing the order to half the amount, owing to the fact that we have had a very heavy demand on the ll"ne of goods you call for, and we fear that we will run short before we can replenish our stoclc. ■We ho.ve aelced others to aot on thle suggestion which is simply a, course followed by every live and prosperous business house.' The letter does not ring true; it has a hollow sound that does not fool the buyer. The reference to the past-due account and the request to reduce the order by half are so closely connected that the thought in the credit man's mind is apparent and the reader does not believe that the old customers have been asked to reduce their orders on the same line of goods. But here is a credit man facing an identical situation who succeeded in having the order reduced. There is no suggestion that the house is not doing exactly as it says. Sear Sir: We thank you for your order for eeml-porcelain ware, Sfflountlng to $500. This line has proven so exceptionally popu- lar this season that it has been practically impossible for us to fill the demand In our usual prompt way. It will be appreciated. Mr. Roe. as a special favor on your part If you will permit us to reduce this order to $200 for Immediate shipment. We are asking this favor from other cus- tomers in order that we may let all share in the popular demand for this very excellent lino. We will hold the balance of your order on epeclal file and would be pleased to receive your order for more of the line at any later date that you may be In need of It. Let us assure you that we will appreciate very sincerely your accommodating us In this matter and regret that the demand for the line necessi- tates our asking the favor of you. Awaiting your very prompt reply and assuring you that on receipt of It the, ordenwlll go forward immediately, wa are. Very truly yours. (^^^f^.^Talr8 the body of his paint. If you will use precisely the same amount of oil by meaeure with Pacific Lead as you would with ordinary brands when first mixing Pacific, you will find that our product will cover' far better than the other leads Gradually you can add more oil to your subseQuent mixings of Pacific when you have become accus- tomed to tho feel of the paddle In Pacific Lead. You will then have a paint that will not only cover fully one-quarter more sur- faeo than the brand you have been using, but one that will spread easier under the brush, give you a decidedly whiter Job and prove more durable. If there are any other points lu t-..o connection that are can advise you on. don't hesitate to call on us. Very truly yours. PACIFIC LBAD COMPAlTf. MAKING IMMEDIATE ADJUSTMENTS 183 With a practical explanation the correspondent attempts to bring the customer around to the house-attitude in tlie matter. If the goods are obviously at fault in some particular, an imme- diate reimbursement of money paid and expenses incurred is offered and every effort made to show that the house aims to he fair iu all its dealings. If the fault is merely an imaginary one, the customer is treated as though he were as fair-minded as the house, and is assured that the trouble is not at all seri- ous. But the customer is never left while he feels that he has been treated unjustly. If he refuses, absolutely, to be satisfied, he is asked to return the goods. This, method of handling the dissatisfied customer, with the aver.-^ge mail-order house, is profitable because of the adver- tising such a policy is certain to create. But it may not be adapted to the concern selling expensive specialties. In handling and adjusting the shortage claim it is vitally important not to irritate customers through letters that carry an impression of suspicion. The validity of the complaint, for policy's sake, must be conceded. Wbile the house usually finds an investigation necessary to avoid a recurrence of similar claims, this should be made in a way that will not give offense. Allowing such claims is almost always ad\isable. Repeated complaints from the same customer are thoroughly investigated by most concerns, for a dishonest customer is seldom a profitable one; he should be eliminated from the customer-file or kept under a special "Black List." It is the policy of one house to refill all orders as soon as it learns that the goods have failed to show up, provided the claimant secures the signed notation of the local express or freight agent that a shipment bag not been received. There is little chance of heavy losses to the company hj this policy, for, in case the goods cannot be located, the transportation company is of course responsible and the additional transportation charges, in case the shipment is found later on, is compensated for by the good will created on the part of the customer^ With routine complaints an immediate adjustment and, if necessary, a later investigation, is generally accepted ' as the most profitable policy, if the amount involved is not too large. But when an adjustment means the expenditure of a considerable sum it is necessary for the house to know all the details of the trouble before making^ or refusing a settlement. 1S4 HANDLING THE BIG COMPLAINT A careful investigatiou usually indicates tlie most cfTcctive policy to adopt. As in the sctllcment of the small routine complaint, the mak- ing of a big adjustment is strongly influenced by the attitude of the house in its letters. • The bu}'cr of the goods always wants assurance that his claim will receive immediate attention. So the first purpose of the letter in handling detailed investiga- tions and making big adjustments, is to show the willingness of the house to be fair and just; to pave the way for such steps as are necessary in the investigation and to keep the customer in good humor until some definite action can be taken. The actual investigation and adjustment of complaints on big sales should be handled by a house-representative or by a disinterested third party. One house that has estab- lished an enviable reputation for fairness and equality in adjust- ment matters, immediately upon tlie rcccij>t of the complaint, mails a letter expressing regret that there is cause for dissatis- faction, assures an immediate investigation, and promises an early report. This first letter plays for time and aims to put the customer in the right mental attitude. Then, if the customer is not too far away, a representa- tive is sent out to make a personal investigation. • Otherwise the services of a local attorney are secured and the investigation made through him. If this investigation shows a fault in the article sold — some imperfection for which the house is to blame — an immediate allowance is granted on the basis of the amount of damage in the goods or tlic inconvenience incurred by the customer, or, if unusable, the goods are replaced or purchase price refunded. In case a transportation company is at fault, the customer is so informed and every assistance possible is given him in secur- ing satisfaction for his inconvenience or loss. But v/here the customer is at fault, or where the claim 13 obviously unjust, the policy adopted depends largely upon whether the house, for the sake of future business, can afford to assume the claim, or stand pat on its rights in the case. Where the refusal of a settlement may mean a big loss in future business, it is often deemed advisable to make an allow- ance, to meet the customer half-way, or to cut a certain percent* age from the bill and "charge it to advertising." But the letter granting this allowance should be so worded as to ward off SATISFACTION NECESSAIIY FOR GROWTH 185 any impression that a "kick" is always followed by a shading of the bill. The position taken by one house is clearly pre- sented bv such letter as this: "While we cannot feci in any way responsible, we rant to ao ell in our power to help you. We aim to maintain the most pleasant relations with all our customers, and believe our prev- iouo more than satisfactory relations warrant an exception to our usual rule In this particular case. So we have decided to bear a part of the cost and allow you ten per cent on your bill " If a claim is refused, it is always desirable to give the customer the impression that the house cannot consistently con- ceed his demands. This letter must be based entirely upon the interests of the customer, and be made so reasonable that he will be convinced of its fairness. By calling his attention to the position of the house, and then showing him the difference between its estabhshed policy and his position; by showing him the damage the granting of his demands might do the business; and lastly, by thanking him for the opportunity of making an explanation, the "rough edges" are smoothed over and he usually remains a loyal customer. A very small percentage of big adjustments can be handled by letter. Many concerns, selling delicate or very expensive specialties, maintain traveling adjusters who settle claims in the most profitable manner for the house. But in all cases, the house backs up the adjuster with letters, the purpose of which is to make his settlement more satisfactory. Since there are very few business concerns today that are without competition, this fact must at all times strongly infjuence the method of handling a complaint: no one but the man at the postoffice can be indifferent to future trade. The man v/ho sells merchandise of any kind must seek at all times to satisfy; he must appreciate the fact that considerate and sympathetic treatment of customers is the only sure way to build business on a sound foundation; and he must remember that the satis- factory settlement of a real complaint is just as important to the house that wants to grow, as the filling of an order. Finding The Right Attitude Toward COMPLAINTS PART XV HANDLING THE LONG-DISTANCE CUSTOMER CHAPTER 09 IN HANDLING the distant customer who has a frievancey there are two factors that will determine is future relations with the house: the satisfactory adjustment of the complaint and the attitude ASSUMED in maJcing the adjustment. And in many cases the attitude show7i in the letters are the dom- inant factor y for if the customer is convinced that the house intends to treat him honestly and fairly, satisfactory adjustment is a matter of detail. Whether adjustment should be made before inves- tigation or whether investigation should precede adjustment, and the attitude to assume, are the practical svbjects taken up in this chapter AVE you not at some time returned to a dealer an arti- cle that was not satisfactory and had him grumble about it and then slap down the money on the counter in a way that hurt more than as if he had refused to take back the goods ? You got a settlement just as far as money would go but you walked out of the store vowing never to buy another thing there. He squared things with your purse but not with your ideas of good business; he entirely overlooked your mental attitude; he lost a great opportunity to win your loyalty — to take out insurance on your future business. Thb policy is even more disastrous when applied in letters and it has taken some mail-order men a long time to learn that if a distant customer can be brought into the right mental attitude toward the house, the actual adjustment of his com-. SPECIFIC AND INVIOLADLE COMPLAINT RULES 187 plaint is a matter of detail — the pocketbook is easily appeased. A mail-order house that had imperceptibly developed a los- ing attitude toward complaints, finally found themselves in the light of retrospection, the result of which was the organization of a special complaint department with three specific and in- violable rules: promptness in answering every complaint; a care- ful consideration of the reasons for the complaint and probable mentiil attitude of the complainant so tliat the reply can be shaped to carry tlie impression of sympathetic and personal interest; and third, an unwavering truthfulness and dignity that will create respect and tighten the bonds between customer and house. Sooner or later every successful mail-order house discovers this fundamental idea upon which effective handling of com- plaints must be builded, whether they are insignificant or im- portant, whether faults of the seller, or of the buyer, or due to outside influences over which there can be no direct control, the first thing to do is to impress upon the customer the intention of the house to treat him fairly and honestly. The next thing is to impress upon the correspondents the fact that the- cus- tomer's interests must receive full and immediate consideration. The house under no consideration should try to cover up or ffloss over its own mistakes or find fault with the customer for his o errors. A mail-order house sold a go-cart to a customer in Min- nesota and complaint was made that is was badly marred and scratched. The correspondent to whom the letter was re- ferred wrote: Dear Sir: We are surprised that you should try to hold us respon- eitle for tha damage to your go-cart for we have an inspection service to guard against imperfect goods going out. Our packers know just how to ship furniture so it will not te marred and I feci certain that the damage was done in uncrating. Protiably a nail was dragged across it or something of that kind and now you look to U3 to make it good. Under the circumstances it seems to us you ought to get some furniture polish and it is pro'ba'ble a few minutes ru'bhing would make the go-cart look as good as new. Tou can see what u t)ig expense it would be to us to have the cart shippea back and 188 SHREWD HANDLING OF A COMPLAINT another one delivered and in view of the fact that the damage was prohably dona in unpacking, we do not think you should expect it. Very truly yours, TEE UID-TE8T2IR3 StJPPLT HOOSS. It happened that a neighbor about that time ordered a go-cart from a competing house and through a strange co- incident, it, too, was marred. The correspondent replied to the complaint: Doar Sir: You don't Icr.ow how Euch we regret that the go-cart reached you in a damaged condition. While our records show that the cart was all right in every way when it went through the in- spection dspartment. yet under no circumstances would we want Vou to keejj anythiae from our house that is unsatisfactory. Prom what you write, 1 infer that tha cart is only carred and scratched and I have not the least douht that a litti.9 cf our Charter Oak Furniture Polish will give just as fine a finish as when the cart left the factory. We are sending you a bottle and polishing cloth, and prohahly five nlautes* work s?ill make the cart look as good as new. But if if does not, we will make it rig'nt. Either we will make you a cash rebate and you can keep the cart, or you oaa return it at our expense and we will ship you a new ono, express prepaid. Won't you try the polish at once and let us know If it is satisfactory? If it is, it. will save you an annoying delay ia getting another cart. Please write us regarding it at once. Very truly yours, BROra & BHOWIl. By ^^7 ^^ ..** /4»-*^d^iJ i■^^ «<. '* Dry climax always fatal in (I) 56 " Importance of persuasion and inducement in . (I) 51 " Inducements that get the order in . . • (I) 55, 57 Coin cards. Schemes for applying (See enclosures) . . (I) 197 Collections, How to handle mail— (Part) .... (HI) 107 Collections, Dunning letters in, Psychology of (III) 108, 110, 114, 118, 121, 123, 135, 158, 168 " Instalment, How to handle— (Chapter) . (Ill) 126 " " Collection agency schemes for . (111)132,133 " " Last resort schemes for .(111)134,135,138 " " Man-to-man appeal in . . (HI) 133 « " Reselling the customer in . . (111)130,131 " Last Resort, How to make— (Chapter) . (HI) 147 " " " Forcing C. O. D. payments in . (111)151,152 " " " Holding purchases in . . (HI) 151 " " " Intentional error in . . . (HI) 153 •• " " Personal collectors in . . (111)154,155 •• " " Quoting customer's promises . (HI) 150 •' " *' Reminder for. Special forms of (HI) 149 " " Telephone and telegram in, . (HI) 148 " Mercantile, Attitude of credit men in (Chapter) (III) 107 '• " Big stick in. When to wield . (111)113,117 •* " Salesmanship in the letters for . (HI) 111 " " Tact and cooperation in . . (111)114,115 ■• Petty, How to handle- (Chapter) . . (HI) 139 " " Schemes that pulled well in . . (Ill) 142, 144, 155 " Poorcredit, Diplomacy required in — (Chapter) (HI) 156 " " "Forcing a part payment in. Plans for (HI) 161 '♦ " " Getting cash "with the order (III) 163, 164, 165 " " " Investigating the credit risk in, (HI) 168 Reducing risks in . . . _ . . . (111)165,167 " Retailaccount, Attitude to adopt in — (Chapter) (III) 118 " " " Credit rating organizations • (HI) 125 '; Reliable Slow Pay . . (HI) 122 " Statements in. How to send .... (HI) 153 Complaints, How to make capital from — (Chapter) . (HI) 180 " Adjustments of. How to make . . . (HI) 182 •* Adjustments of. Big, Methods of handling . (Ill) 184 • Attitude in letters toward f . . . (Ill) 173 BUSINESS CORRESPONDENCE 213 Complaints, Department, How to systematize — (Chapter) (III) 196 Records of. How to handle . (HI) 201 Returned goods Checks for . (Ul) 200 Tracer records for . . . (01)128,199 " Eliminating, Systems for— (Chapter) . . (HI) 203 " *' Daily reports that help in . (HI) 205 ** " Form of stock report that aids (HI) 206 " " Policy of forestalling kicks (HI) 209 ** Mail order, Schemes for getting . . . (IH) 173, 17-1 ** Routine, How to handle— (Chapter) . . (ill) 177 " " Adjusting, Long personal letters in (HI) 179 Making cash refund in . . . (in)171,173 " " Time schedule for letters in . . (Ill) 178 Concentration, Schemes for fixing — (Chapter) . . . (II) 130 " Illustrations that fix. Plans for using . (II) 137 *• Mechanical schemes to develop interest by (II) 132 • Pen written letter that gets . . . (II) 136 ** Summaries that force (II) 136 Unique enclosures that fix . . (11)131,135,138 Correspondence, Business (See also Business Letter) (I) 5 Coupons, How to utilize (See also Enclosures) . . (I) 187 Deals, How to close by letters (See also Sales) . . (I) 128 Dealers, Letters in connection with — (Part) . . . (11) 183 " Appeals to. How to make— (Chapter) . . (Ill) 5 *' " " Arguments to use in (See Arguments) (III) 16 " " " Attention-getting schemes in . (HI) 8 " Campaigns on. How to conduct— (Part) . . (Ill) 34 " " " Economical use of letters in . (HI) 34 ** *' " Free sample distribution in . (HI) 55 ** ** " How manufacturers use letters in (HI) 41 " " " Inducements that pull orders in (III) 43 " new territories, How to handle — (Part) . . (Ill) 34 Attitude of buyers in . . (HI) 35 " " " Creating demand in . . (HI) 36 " " " Four metlious of opening (Chart) . . . (HI) 35,41,47,54 " Retail, How to get business from — (Chapter) . (Ill) 17 " " Methods of approaching .... (HI) 5 " " Oti'ers to. Demonstration ... (HI) 51 " Free Goods . . . (111)19,44,46 " " Guaranteed Goods . . (10)19,45,58,59 " " Private brands . . . (HI) 24 " " Prizes (HI) 18 " Trial (111)21,22,39 *' " Schemes for forcing orders from (111)23,40,55,57 " retail trade. How merchants use letters in — (Part) (II) 171 " Appeals to (11)171,180,181,190,191,192,193 " " " Circularizing store buyer in . . (11)197,205 " " " Clerks' personal notes in (11)192,198.204 •* " " Compiling lists for (See lists) (11)181,206,207 ** " " Confidential discount cards in (II) 192 •* " " Cooperating with miinufacturers in (TI) 199 •* " " Extending, Schemes for— (Chapter) (II) 200 314 INDEX Dealers retail trade, Holding, Schemes for — (Chapter) (II) 189 " " " Mail orders from, How to handle (II) 203 " Offers in, . . (II) 200, 201, 209, 210, 211 " Out-of-town, Reaching— (Chapter) (II) 208 " Prospects' Names for, (See Lists) (11)201,205 " Small town. How to get business from (Chapter) (III) (III) (III) (III) (III) (HI) (I) (1) (I) (I) 25 27 28,33 27 26,72 30,32 165 164. 187 39,45 (1)166,171 (1)166,172 (I) 32 (I) 149 (I) 168 (1)44,77,80 (I) 166 (I) 183 (I) 149 (1)159,168 (II) 88 3,78102,(11)73 Appeals to. Kinds of (Chart) " " " Arguments to use in letters to " '* " Form letters to. How to prepare " " " Lists of , How to get (See also Lists " " " Offers to. Handling (See Offers) Enclosures, How to handle — (Chapter) " Addressed envelope. Necessity for " Coupon, How to use .... " Descriptive, How to use .... *' Facsimile testimonial. Kinds of " Guarantee, Forms of .... " Illustrations of " Introductory card. How to use " Kinds of. Effective — (Chart) " Methods for coupling letters with , " Order blank, How to use " Postal regulations for .... " Return card. How to use .... " Sample, How to use Filing names, (See also Lists) " Plans for (III) 122, 165, 174, (II) 93, 94, (III) 7 Fill-ins, How to make (See also Appearance) ... (I) 93 Follow-up, How to handle— (Part) (II) 5 " appearance. How to plan — (Chapter) . . (II) 63 ** " Cliange of stationery desirable for (II) 64 " " Enclosures and colored cards for (II) 70 " " Envelopes that strengthen, Styles of (II) 69 " application in selling — (Chapter) . . . (II) 5,6 " arguments. How to handle the— (Chapter) . (II) 24 Angles for— (Chapter) . . _ . (II) 33 " " Dry Climax in. How to guard against (II) 27 " " Examples of wrong and right . . (II) 26 " *' Grouping schemes for . . . (II) 25 Methods for finding appealing . (II) 31,39 " *' Propositions in. Arrangement of . (II) 28 " " Schemes for selling land with . (II) 41 " campaign. When to use (11) 21 " Continuous, How to use the— (Chapter) . . (II) 17 " Continuous, Businesses that use . . . (II) 19 Different kinds of— (Chart) .... (II) 16,20 Fmictions of--(Chart) (II) 7,8 " Getting inquiries by, Plans for . . . . (II) 10 " Getting orders by the. Schemes for . . . (II) 11 '* Keeping trade lined up with the ... (II) 9 " Making personal (See also Appearance) . . (II) 10 mailing lists. How to keep up the— (Chapter) (II) 71 *' " Keeping names for ... (II) 72 BUSINESS CORRESPONDENCE 215 Follow-up mailing lists. Schemes for cleaning up . . (11)73,75,76 " mistakes, How to avoid — (Chapter) . . (II) 77 " mistakes. Schemes for checking . , (11)81,82,83,85 " offers, How to make — (Chapter) . . " " Combining several inducements in the " " Danger of promising too much at first in " " Dangers from scaling prices in " " Limiting time of . . . " " Tact in. Necessity for using . " Specialized, How to use— (Chapter) " " Giving personal treatment in " " Methods of classifying inquiries in " " Splits in, What to do with . " talking points, (See also Talking Points) " Wear-out, Utility of the .... Form Letters, How to shape the idea behind " " How to handle — (Chapter) . " " Idea behind not always apparent in " " Pulling power in. Schemes that get . " " Strategy in. Schemes for using . Guarantee, How to use the (See also Enclosures) . Inducements, (See also Sales and Inquiries) — (Chapter) (II) 140 " Combining several (II) 143 " Premium, Where to use . (II) 210 (II) 144 Price . . • . (I) 137, 138, 185 (II) 141 " Service, Getting a talking point from . (II) 147 " Schemes that make . . (1)53,55,56141.167,186 " Telegram, Hurrying orders by . . .(1)138(11)176 Inquiries, How to get (See also Replies) — (Chapter) . (I) 141 Bringing hack. Methods of using letters for (I) 50 (11) (11) (11) (11) (11) (11) (11) (") (11) (11) (11) (11) (11) (I) (11) (11) (11) (1)171,172 43 48 54 47 45,46 51 56 58,62 61 59 42 21,22 120 90 122 121 124 Inducements that get, General " " " Free trial (1)141,165,185 (I) 193 " " " " Introductory price . (I) 190 " " " " Last chance ... (I) 187 • " " " Limited time ... (I) 187 " " " " Money back ... (I) 193 " Smoothing the way for — (Chart) ... (I) 187 " " •' " " Use of order blanks in, (I) 185 " Quick action, How to force .... (I) 185 Instalments, How to collect (See Collection) — (Chapter) (III) 126 Interest, Awakening dead prospects — (Chapter) . (II) 162 " Making personal appeal to rouse dormant . (II) 163 " IVIan to man appeal to awaken. Schemes for (II) 167 " Mental shock wakes dead (II) 169 " New inducement often effective in reviving dead (II) 166 Letterheads, Distinctive (See Appearance) — (Chapter) (I) 103 Letterheads, Illustrations of (I) 62, 63, 66, 96 (II) 49, 50 Lists, How to handle— (Part) ...... (II) 88 Checking returns on — (Chapter) .... (II) 106 Compiling, Names for — (Chapter) .... (II) 88 " Books of rating . . . (II) 90 •• Directory .... (II) 91 " " " Rewards that get . . . (II) 94 S16 INDEX Lists, Compiling Names, for. Soliciting .... (II) 71, 92 " " Addressing company . . (II) 97 • " " " Schemes of getting (I) 124 (III) 111. lU, 131, 132, 142, 143, Ido, 168 (III) 61,83, 84, 85, 98 " Filing Names in— (Chapter) (II) 98 " Alphabetically .... (II) 100 " " " Colored card systems of . . (II) 101 " " " Geographically .... (II) 99 - General systems of (I) 124 (II) 61, 85, 86, 87, 100,105 (III) 111,114,131,132,142,165.168 (II) 106 (11)107,108 (11) (11) (H) (11) (H) (11) (II) (11) (I) 109 95 102 105 118 89,90 113 171 90 (1)186,187 62 " Keying Correspondence from — (Chapter) " " " " General methods of " " '* Private marks for " Live, How to get " Recording, Systems for .... " Revising, Schemes for .... " Selecting, Plans for . ... " Sources of — (Chart) " Testing mailings to — (Chapter) Local Trade, How to drum up (See also Dealers) Machine letters. How to make individual (See Appearance) Mailing cards. How to use (See also Post Card) Manufacturer's Letters (Wholesalers' and Jobbers') —(Part) (III; *' " Cooperating with salesmen by use of— (Chapter) . . . (1X1)60,61,93 " " Cooperating with dealers by use of (Chapter) . . . _ . . (Ill) *• " Dealer's prestige in. Making use of (III) •• " Functions of (Ill) " Getting the clerk's interest by . (Ill) •* ** Getting the consumer into the ^dealer's store with . . (111)79,80,81 •• " Keeping in touch with dealers by use of — ^Chapter) '* ** Methods or keeping in touch with salesmen by— (Chart) . •* '* Paving way for salesmen with '* " Ile-inforcing salesmen's work by use of — (Chapter) " " Salesmen's report cards that show results of ... . Merchants, Letters in the trade of (See also Dealers) Names, How to handle (See also Lists) — (Part) Offers, How to make (See also Sales) Order Blanks, How to use (See also enclosures) Orders, How to get (See also Sales) — (Chapter) Originality, How to get (See also Business Letter) Persuasion, How to use (See also Business Letter) Post Card, How to sell by (See also Enclosures) — (Chapter) " " folders. Double and triple. How to use " " Fmictions of. Four (1)175,177 " " illustrations (1)186.187.193 " " Mailing, Colored, Cost of the . . . . (I) 181 (III) 78 83 61,82 87 71 (in) 90 (HI) 64,70 (III) 76 ^^?, 69 5 (11) 88 (11) 43 (1)169,187,197 (I) 128 (1) 79 (1) 52 r) (I) 173 (1) 180 BUSINESS CORRESPONDENCE 217 Post Card mechanical make-up (I) 180 " " order blanks, Schemes for using ... (I) 176 " " postal regulations (I) 183 Postscripts, How to use .... (I) 98 (III) 104 Propositions, Last resort, How to make — (Chapter) . (II) 156 " " " Letters, telegrams, etc., in, . (II) 161 " " " Personal guarantee for . . (II) 159 " " " Trial offer inducement for . (II) 158 " Premium offer for . . , (II) 160 " Presenting, Plans for (See also Business Letter) (1)161, 171 Pull, Schemes that make letters (See also Appeal) . (I) 201 (II) 173 Replies, Handling— (Chapter) . _. . _ . . . (II) 149 " Appeal to curiosity effective in getting . . (II) 154 *' Following the line of the prospects' needs to get (II) 150 " Holding proof until asked for to get . . (II) 151 " Introductory offer propositions to bring . . (II) 153 " Sending out tracer to get. Schemes for . . (II) 152 " Writing, Plans for (See also Inquiries) — (Chapter) (I) 184 " " Arguments to use in .... (I) 196 " " Cheerfulness in. Psychological effect of (I) 156 " " Completeness in. Necessity for . . (I) 158 " " Promptness in, (I) 155 Retail trade. Using letters in (See also Dealers) — (Pai't) (II) 171 Sales How to make by letter— (Chapter) . . . (1)151,152 " clinchers. Plans for using ... (I) 130,131,163,164 " delays. How to prevent (I) 154 " enclosures. How to use (See also Enclosures) . (I) 165 " enclosures. How to offer sample . . • (I) 1^3, 155, 168 " inducements, Kinds of .... (I) 53, 56 137, 139 " introductory letter. Elements of .... (1)129,131 " inquiry. How to answer the (See also Replies) . (1) 131, 162 " offers. Different kinds of (See also offers) . . (I) 137, 138 " replies. How to handle (See also inquiries) . . (I) 137 " replies. Inducements that will bring (See also Replies) (1)139, 141 " statements. How to make specific .... (1) 134 " summary. Necessity for (I) 138 Salesmen's Letters, Attitude towards customers in(Chapter) (111)101, 105 Filing data for . . . . . (111)102,104 " ** Four methods of producing . . (Ill) 96 " " Interesting customers with — (Chapter) (III) 95 " " Postal and mail folders in place of . (HI) 106 " " Postscripts in. How to apply . . (Ill) 103 Samp/es, How to use (See also enclosures and Sales) . (1)139,148 Samples, Illustrations of (I) 153 Settlements, How to get (See also Collections)— (Part) . (Ill) 107 Signatures, How to apply form letter .... (I) 164 Store Trade, How to build up (See also Dealers) . . (II) 171 Style, Requisites of (See also Business Letter) — (Chapter) (I) 60,61 Talking Points, How to handle (See also Arguments) . (I) 15 " " Classifying, selecting, testing and filing (1)18,19,20,21 ''"'^ " _ Sources of material for .... (I) 16,17 Territory opening. How to use letters in (See also Dealers) (III) 34 Testimonials, How to use (See also Enclosures) . . (1)134, 165 218 INDEX INDEX TO LETTERS Action, Paragraphs that prompt — (I) 135, 136. 188, 189, 190, 191, 19-2, 193, 194, 195, 198 (II) 46,47 \clvance in price argument, How to use . . (II) 141,146,159 A.ppcal, Effective and clever. Examples of ... (I) 98, 100, 101, 216, 217, 218 (II) 157. 163, 164 " that gets attention (I) 147 to farmers. Examples of (I) 232, 233, 2:54 Investment ..... (I) 217,222,225,226 '* Man-to-man, Reviving customers by . . . (II) 167 " to merchants (1^^) ^'^^ " to women. . .(1)203,205.207,208,209,211,212,213 Argument, Inducement and proof. Effective use of (I) 45, 168, 182 Assertion, Unsupported, Weakness of .... (I) 136 .\ttention-getting schemes (I) 101 Attitude in complaint letters, (Ill) 172, 181 " Illustration of man-to-man .... (I) 83, 86, 87 " Right and wrong . . . (I) 144, 145, 162, 163, 219, 220 Brevity, Illustrating unpardonable (II) 83 papital out of current events, making . (1)88,89(11)132,158 Catalogue, How to ink the letter with the ... (I) 156 Closing paragraphs. Examples of poor . . (I) 54, 56, 57, 58, 59 Collection letter, Agency (Ill) 132, 133 " " containing salesmanship. Example of . (HI) 162 " " showing advantages of cash with order (111)163,165 " Right attitude and schemes for (III) 110, 111, 142, 143 " " quoting from delinquent's letter . . (HI) 150 " letters, Familiar forms of (Ill) 109 Tact and crudenessin (III) 114, 115, 135, 136, 137, 138 *' " used in the following up . . (111)145,146 " " Use of inducement in . . . . (HI) 130, 131 " " used on instalment accounts . (111)128,129 used on retail trade . . . (111)121,122 " " showing false versus true note (111)166,169,170 " " used as a last resort . . . (111)134,138 Complaints, Clever letter that gets (HI) 176 Confidence, Taking reader into writer's .... (II) 166 Continuity, Illustration of (I) 76 Continuity Ijroken by one poor paragraph ... (I) 134 Credit letter. Holding up an order to force collection in (HI) 163 " Poor Risk, Diplomatic and undiplomatic letters to, (III) 161, 162 " Poor risk. Rewritten (HI) 161 Customers, Schemes for getting new (II) 122, 215 (HI) 45, 56, 58, 84, 86 Dealer letters, Inducements in. Illustrations of (II) 174, 175, 187 (III) 8 " " emphasizing special prices . . (II) 143 (HI) 113 " " Trade getting letters from wholesalers and manufacturers used as (HI) 18, 19, 20, 21, 22, 23, 29, 30, 36, 38, 39, 42, 43, 45, 48, 49, 50, 51, 52, 53, 55, 56, 78 " " written while on trip to city . . . (II) 193 " " used in getting lists of prospects . . (II) 194 BUSINESS CORRESPONDENCE 219 (11)17,18,32 (II) 8 29,38 (111)112,113 (I) 94 (I) 93, 125 (II) 12 i 52 (III) 91 (II) 48, 49 (II) 154 (11)134,135 (II) 36,37 (11)139,151 (III) 23, 24 (II) 73, 74 (II) 53 (III) 87 (I) (I) 84 Demonstration offer. Effectiveness of. Illustrations of . (II) 142 Descriptions, Effective (I) 42, 43 Follow-up angles, Kinds used in selling real estate (II) 31,40,41,42 " Continuous, Nine letter angles for " as an educational medium " Good and poor examples of . (II) Fill-in, Illustrations of poor and effective Form letters. Wrong and right methods of handling Getting orders through voting contest Ginger talk, Effective examples of Inducement, Schemes for playing up the Information, Straightforward request for Interest, Paragraphs for getting . " Illustrations of personal " Novel ideas of arousing " in customers after purchase is made Lists, Appeal for cooperation in checking Making it easy to answer. Letters that have pulled by Manufacturers' letters to clerks " to educate . (II) 123 (III) 61,63,65,66 " for customer trade , . (Ill) 73, 74, 76, 77 Mistakes to avoid, Wrong attitude (II) 81, 82 Offer, Giving reason for special (11)146,156 Otter, of the cheaper substitute (II) 55 Opening, Non-essential paragraphs in . . (I) 38, 39, 49 Openings, Original . . , . (I) 32,33,34,35,36,37,81,82 Overcome objections, Ex"plaining application of prod- uct to . . . (Ill) 182 Point of contact. Good illustration of (I) 85 Pen written letter to impress reader (II) 136 Persuasion, Examples of good and poor .... (I) 52,55 Premiums, Offering (II) 49, 160 Presentation, Effective (I) 135 Proposition, Showing how to split up (II) 50 Prospects, Applying stimulant to dormant . . . (II) 169 Prospect's needs. Schemes for getting line on . . . (II) 121 Postals, Specimen of business-getting (I) 183 Pulling power increased by effective enclosures . . (II) 133 References, Good use of (I) 48 Reply, Clever scheme for getting (T) 143, 147, 148, 149 (11)152, 153 Reply to an inquiry. Good and poor (1)158,159 Sales letter. Good example of (I) 133 Salesmen's letters to dealers . . . (Ill) 96, 97, 98, 101 Service inducements. How to play up .... (II) 147 Style, Forceful, Good and poor examples of . . . (1)223, 224 " emphasizing "you" element (1)179,180 " Good and poor solicitation . . . (II) 176, 177, 181 " Specific statements in . . . (1)46 47 (11)39,184 " Unity, Sequence, Logic and Climax in . . (1)72,73,77,82 Subject heading. Use of (I) 156 Summary, Good examples of (I) 44 Tabular matter, How to use (II) 35 Talking Points, Coupling up ... . . (Ill) 138 3 1 158 00781 4170 UC SOUTHERN REGIONAL LIBRARY FACILITY AA 001095 105 i SOUTHERN BRANCH, UNIVERSITY OF CALIFORNIA, LIBRARY, f