Keeping Tab on Credits 



It U extrvmoly di-iilriiliU- iiuw, n» nlniivit, tliiit the luiiiU'riiiau get a 

 cloac cliock oil the oxtciiHioii of crinlit* to liin rimtoiiuTK. Kvory luni- 

 bprniiiii kiiunrs in u nom-rnl wny what tiip situation i» witli roCHni 

 to the conccrnB on liiii liookd, luit in niont ciim-s it in a vnguo rather 

 than a ilvliuitv, crj-sLallizoil knonledi^c. The information is avnihiblo, 

 provided the variouit xourcra of kuowled(;c arc used, nn<l tlic mercan- 

 tile agency directory, the trade credit rating directory, tlie ledger, etc., 

 arc consulted ; but usually this is not done. 



A successful hardwood concern has recently »ilo|ited a jilaii which 

 has adrantnges in this connection, in that it sununarizes the data 

 regarding credits. The system is oj>erateil liy means of a card index, 

 which remains on the desk of the member of the firm looking after 

 this bu.'iiuess at all times, where it is always accessible. The card 

 shows the name and address of tlie firm, its rating in Dun, Bradstreot, 

 the Red Book and for insurance purposes, and the reports on the con- 

 cern furnislieil by the mercantile agencies, the Reil Book and the 

 National Wholesale Lumber Dealers' Association. Below the space 

 reserved for reports is a section on the card showing "Credits Kx- 

 tended, " while below that is a similar section headed "Notes Receiv- 

 able." By the use of this card, on which the transactions of the 

 hardwood company are summarized, it is possible to see at a glance 

 just what the customer owes, when paper is maturing, when its line 

 of credit is becoming unwieldy, etc. 



As pointed out above, the hardwood man who is close to his busi- 

 ness probably thinks that he has all this information in tlie back of 

 his head, ready for use, but as a matter of fact it is doubtful if this 

 is the case. At all events, it is better to have it down in black and 

 white where it can be referred to without delay. 



A Study in Psychology 



A lumberman, or anybody else who sells goods, must be a fair 

 student of psychology if he expects to ' ' get by, ' ' and to do business 

 with the least amount of friction and dissatisfaction. In other words, 

 the thing that will go with one man will prove a flat failure with 

 another customer. Each has to be studied, and the method adopted 

 to his jieculiarities. 



A hardwood man had an experience recently which demonstrated 

 this rather conclusively. He had an order for half a car of two dif- 

 ferent items, the customer assuming that they could be loaded 

 together. Now, as it happened, the lumberman had the stock ready 

 to ship, but it was at two diflferent yards. Consequently he decided to 

 ship a minimum carload of each, inasmuch as the two would not be 

 much more lumber than could have been loaded into one big car. 



He sent the material out blithely, and got a curt note from the cus- 

 tomer a short time later advising that the stock could not be used, as 

 the order was for half a car only of each item. The lumberman then 

 started in to explain, and after a long interchange of correspondence 

 he persuaded the customer to take in the stock. 



Here was a case where the customer's o. k. should undoubtedly 

 have been secured before the shipment was arranged. It was stretch- 

 ing the order a little, and an explanation would i)robably have secured 

 the customer's consent, but the method indicated made the customer 

 think that something was being put over on him. and he refused to 

 stand for it, quite naturally. 



Put in Track Scales at Mills 



In view of the constant trouble experienced with the railroads by 

 reason of overweights, and the necessity of making claims, having 

 money in excess freight tied up for months, and assuming expense 

 and labor in connection with their collection, it is strange that lumber 

 manufacturers have not adopted what seems to be the simplest way 

 out of the trouble. 



This would be the installation of track scales at the sawmills, and 

 the weighing of the lumber at the mill. At the same time the tare 

 weight of the ear could be chacked, and if any irregularities were 



—20— 



determined, prnpiT attention conr.i i><- i':iili'<i tci it. It is certain that 

 the rnilronilH are more or lesx cnreless in reganl to weights, and while 

 it is possible that they somet lines err on the siile of the Hhip[H-r, it is 

 more likely that they give themselves what is known on the turf na 

 "the percentage" and overlook few liets in this connection. 



One of the prime sources of error in connection with weights is thu 

 weighing of cars while coupled together. This results in a heavier 

 weight being recorded than is actually in the car, and is a still further 

 handicap to the lumlxTumn. If lie had his own scales, they could tie 

 jiroperly tested by the railroad, so as to insure correct result*, and 

 the weights could then bo put through without any delay or danger 

 of confusion. As it is, there is always trouble in collecting claims, 

 in view of doubt as to the state of ilryuess of the wood, etc., and the 

 whole proposition is a very disagreeable and irritating feature of the 

 business. 



The cost of track scales wouhl not he prohibitive, and in view of 

 the advantage of using them for other purposes than shipping lum- 

 ber, the investment wouhl seem to Ik- worth while for any concern of 

 size. A mahogany inaiinfacturer who has scales at his mill u>es them 

 to weigh the logs i-omiiig in from abroad, this furnishing another 

 check on them, as they are usually purchased by weight. 



Consumers Want Dimension 



A hardwod iii;iiiuf:ii'turer rrrently iiiriile a significant comment, 

 namely, that the condition of the lumber market at jiresent is such that 

 many sawmill men are accepting dimension orders when ordinarily 

 they would not handle tliis business. 



"The average millman doesn't want to bother with dimension 

 business," he said, "aud takes it only when there is nothing more 

 desirable in sight." 



This is jirobably a fair statement of the case, and yet it seems strange 

 that the lumbermen should have to be forced by circumstances to 

 give his customer what the latter wants. In all lines of business 

 the tendency is to find out what the customer wants, and then supply 

 that thing. The buyer, of course, must pay the bills, and in the case 

 of dimension lumlier should not expect to get it without taking care 

 of the waste and labor involved in its manufacture. But while the 

 ii.sual excuse given for not selling dimension lumber is that the con- 

 sumer will not i>ay a fair price, the real reason in many cases is that 

 it is more troublesome to handle than ordinary lumber. 



It is of course easier to pile up lumber, random widtlis and lengths, 

 and load it out to the customer the same way. It was also easier 

 to sell it log run, and this was done until modern methods were 

 ajiplied. Some lumbermen with sufliciently large production are 

 piling according to dimensions, following the jdan of the pine and 

 other building wood manufacturers, and thus are arranging to give 

 the customer what he requires without having to remanufacture to any 

 great extent. 



"We don't want to 'fool' with dimension business," is the way an 

 inquiry for this sort of stock is usually received. And it undoubtedly 

 means more work in seeing that the stock is cut exactly to order, that 

 the right number of jiieces are made, and that the various items are 

 properly packed for shipment. It's a lot easier to do it the other 

 way. 



The concerns which really study the dimension business, and learn 

 how to take care of it, are making money on it, however, so that it 

 cannot be said, fairly, that the consumer will never pay a profitable 

 price for the stock. It seems to be chiefly a question of knowing how 

 to ask a price that carries a jirofit ami then .showing that the quality 

 of the material delivered is commensurate with the price asked. There 

 is so much difference in quality in dimension lumber that the man 

 who is turning out the right kind of stuff can get his price if he uses 

 ordinarily good salesmanship in disposing of it. 



Can it be that mental laziness is back of the dislike of the hard- 

 wood lumbermen of the country for dimension trade T 



