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VOL. XLV. No. 24. Published Every Saturday by Edward Lyman BUI at 1 Madison Ave., New York, December 14,1907.
DEVELOPMENT OF A SUCCESSFUL EXPORT TRADE
Some of the Essential Requirements in This Connection Interestingly Set Forth by an Expert in
This Field—The Problem of Representation in Foreign Countries—Prompt Shipments and
Careful Packing Are Other Matters That Should be Carefully Looked After.
Ameiican manufacturers of musical instru-
ments, who are desirous of building up an export
business, will no doubt be interested in the arti-
cle recently written for the American Exporter
by Stephen de Cseznak. The article gives much
excellent information regarding the export prob-
lem that may be used in any line and reads
in part as follows:
The development of a successful export trade
requires only common sense and good salesman-
ship. There is nothing mysterious or complicat-
ed about it. The question of distance is almost
eliminated nowadays: ocean greyhounds, over-
land expresses and the cable reduce space and
time. There is very little difference between a
manufacturer's trade in a distant State of the
Union—say, Nevada, and his trade in any for-
eign country—say, for the purpose of compari-
son, Holland. Precisely the same preliminary
tactics would apply in both cases. It is only, in
the smaller details of following up the sales at-
tack that special differences are to be noted. A
manufacturer who wants to start a successful
trade in Nevada would probably first try to inter-
est responsible dealers in the principal towns
of that State. He should do exactly the same in
Holland. To interest such dealers it is neces-
sary to advertise, circularize, correspond with
them and, when practicable, call upon them. We
take for granted that these are the methods em-
ployed in the case of your trade campaign in
Nevada, and that as a result you receive in-
quiries and orders from various firms and indi-
viduals. Upon receiving such inquiries and or-
ders you will probably first of all want to ascer-
tain the ratings and standing of the parties in
question, try to find out if the inquiry comes from
a jobber, retailer or consumer. Apply the same
methods when you receive an inquiry from Hol-
land, or Patagonia for that matter. Secure exact
data on the foreign house and then quote them
the right price, the right discount and give them
the right terms. Treat the foreign merchant ex-
actly as if he were from a neighboring State,
only a little better, as far-away customers are
entitled to more prompt attention on account of
the longer time consumed in the transit of the
shipment.
It is possible that you quote your prices to
your Nevada customers f. o. b. your factory.
Such quotation is permissible in the case of
United States customers, as they are in a posi-
tion to know the railroad freight rates, but it
would not do when quoting a foreign customer.
He has no means of being posted regarding
• railroad rates from your factory to New York
and cartage from the railroad depot in New York
to the steamer. It is, therefore, advisable for you
at least to make your export quotations f. o. b.
steamer' New York City and include in your
prices the cost of railroad freight to New York
and cartage in New York. If the quotation is
f. o. b. factory you are presenting a puzzle to the
foreign dealer which he has neither time, in-
clination nor means of solving, and it is the
writer's experience that in many instances valua-
ble connections have been lost on this account.
English and German manufacturers make it a
point always to quote f. o. b. steamer London
or Liverpool, Hamburg or Bremen, as the case
may be. In many instances they make their
quotations c. i. f. This abbreviation means
that cost, insurance and freight to the foreign
port of entry are included in the quotation. It
would be exceedingly gratifying 10 all who have
American export interests at heart if American
manufacturer would try to quote their prices
c. i. f. Any responsible foreign forwarding agent
in New York City can assist our manufactur-
ers in this direction and give them full informa-
tion regarding the steamship freight rates and
marine insurance rates and thus enable them to
quote to a customer in Holland c. i. f. Rotter-
dam, or to a customer in Russia c. i. f. St. Peters-
burg or Odes?a.
The article goes on to say that if the Ameiican
firms desire to compete with the German and
English houses they should so arrange their ex-
port prices so that they may quote c. i. f. prices
without a cutting down of profits. The im-
portance of courtesy in the treatment of for-
eign buyers is impressed upon the exporter and
the advisability of a prompt and direct reply to
an communications is dwelt upon. Regarding
the question of terms it is advised that where
a definite report may be obtained of the firm's
responsibility cash in New York should not be
demanded, but payment made by sight draft
against the bill of lading at the foreign port of
entry. Sight drafts may easily be discounted
in New York, and many manufacturers have
built up a fine trade by taking a chance upon the
first order. A safe way is to follow the general
rule in judging the responsibility of foreign
houses that holds good in domestic business and
grant credit accordingly.
The problem of representation presents another
dilemma to our manufacturers. We believe that
when a satisfactory connection is made with a
responsible dealer abroad and a full report is
obtained regarding his standing and ability to
cover a certain territory, it would be to mutual
advantage to give such a concern an exclusive
agency for a limited territory. However, this
matter also ought to be decided on its own mer-
its in each individual case. It is almost impos-
sible to give any strict rules on the subject. In
some instances a large wholesaler or jobber will
prove a good agent. In other instances it will
be profitable to secure as representative a con-
cern making a specialty of acting as manufac-
turers' agent and is more or less, so to say, your
own salesman.
Before concluding arrangements for exclusive
representation it is highly important that manu-
facturers should consult carefully with some one
who is thoroughly familiar with the geographi-
cal, social and political conditions of the country
in question as well as the firm seeking the
agency. There are occasions, for instance, where
SINGL E
$ 2.OO°PER S VEAR: ENTS
a manufacturer has granted exclusive German
agency to a Hamburg firm, whereas it would have
been far more profitable to split the German
agency among two or more cities. A St. Peters-
burg firm is not always competent to handle all
of Russia, for example. A German firm located
in Warsaw can sometimes get more Polish busi-
ness than a Russian firm because of political
differences.
'"'•'.
The subject of packing for export is of great-
est importance and utmost care should be taken
to have the packing strong and suitable for ocean
transpoitation. It is our competitors, the Eng-
lish and German, who are experts in this line.
Unfortunately, a great many complaints are heard
from abroad about American packing.
The,
goods must be exactly like the samples and the'"
order carefully and correctly executed. Foreign
buyers are entitled to the same treatment in this
direction as your best domestic customers.
SCHEMERS "W()RK" BEESLEY CO.
Secured Two Pianos, Which Were Afterwards
Mortgaged and Then Sold.
Two rather clever crooks played an old game •
on the Beesley Music Co., of Salt Lake City, re-
cently, being successful in obtaining tW££~£lftbo&.'
which they mortgaged and afterwards sold. One
of the men, who gave the name of Worthington,
called upon the music company and rented a
piano for $4.50 per month, which he ordered sent
to an address on East Sixth South street. Soon
after the piano was delivered it was mortgaged
to a party who has not been located as yet, for
the sum of $70, and immediately after was sold
for a like amount.
Shortly afterwards a man supposed to be
Worthington's brother obtained another piano
under similar conditions, which was also mort-
gaged and later sold, netting the crooks about
$140 all told. Before the fraud was discovered
the crooks had disappeared and the police have
been unable to find them. Both pianos were re-
covered by detectives.
•
MELL0R WAREHOUSE COMPLETED.
The new six-story warehouse and piano repair
shop of the C. C. Mellor Co., Pittsburg, Pa., has
been completed, and the company have an-
nounced themselves ready to undertake repair-
ing of all kinds. This is the first venture of the
kind ever undertaken in Pittsburg and it is be-
lieved it will prove successful. The new build-
ing is located at the corner of Martin and Craig
streets and is of absolutely fireproof construc-
tion. The first floor will be used as a stable and
garage, the second floor as a repair shop and
the upper floors for storage purposes.
DEATH OF S. H. DANIELS.
S. H. Daniels, the well-known piano dealer o#
Xenia, O., died recently aged about sixty years.
Mr. Daniels had the reputation of being one
of the best floor salesmen in the State of Ohio,
and was the ideal merchant in every particular.
O. R. Brown will be manager of the new piano
house recently opened, at Moline, III.
;