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THE MUt,
JULY 5, 1924
TRADE
REVIEW
Bringing Delinquent Debtors to Book
System of Personal Letters Used by N. Goosman, President of the Goosman Piano Co., Toledo, Ohio, in
Dealing With Overdue Instalment Accounts Which Brought Satisfactory Results—Per-
sonal Letters Make Collections Where All Other Means Have Failed
S has been stated so many times—no sale
is completed until the cash is in the bank
account. Realizing the importance of that
assertion and being desirous of getting all past
due accounts into more liquid form, Fred. N.
Goosman, president of the Goosman Piano Co.,
Toledo, O., undertook recently through a series
of personal letters to close all delinquent ac-
counts.
While the house has often used collection
forms and letters of the fill-in variety, it was
believed that customers soon get to look upon
that type as meaningless. Hence a personal
letter to fit each individual case was dictated.
These, to be sure, were as varied as the people
to whom they were addressed, for Mr. Goos-
man is personally acquainted with most of his
debtors and has a card full of information about
each one. Therefore, he was able to write let-
ters which drew money from its hiding places,
or, at least, brought delinquents to the store,
which was their purpose.
The following is a sample letter which
brought the debtor in:
"May 1, 1924.
"Dear Mr. Bouch: Enclosed is statement of
your account showing $76.80 all past due.
"We must how insist upon your calling and
taking care of this at once as it will be impos-
sible for us to continue with the account in its
present condition.
"During the past, Mr. Bouch, on account of
your long friendship and our acquaintance with
your wife's family we have been patient with
you, hoping from month to month that an effort
would be made to take up some of the past due
amount. Instead you have allowed it to get
worse, and while you have made a few payments
they have not helped the account much.
"If you expect us to continue carrying this
account it will be necessary for you to make a
big payment no later than the sixth and then
see the writer regarding the balance. It is
mighty important that you take care of this
without delay."
That letter brought Mr. Bouch in with a $30
payment and an explanation that his wife was
visiting her people and his daughter needed
some party things, so he had become short of
cash. He also arranged for taking care of the
balance.
But unfortunately all delinquents do not re-
spond so promptly. Here is a series of three
letters written to Mr. Doyer, a transportation
man, who was not moved to pay until he had
been literally smoked out:
"May 6, 1924.
"Dear Sir: On the first we called your at-
tention to your past due account of $94.20. We
made a distinct request that you call at the
store. This you failed to do, so we must now
insist that you send check for the entire amount
by return mail so that we can cancel the chattel
mortgage which we hold against the player-
piano.
"We had expected all along that you would
get the past due amount caught up before the
entire amount became due, but you have made
no effort to do this. Therefore, inasmuch as
our creditors want their accounts it becomes
necessary in order for us to pay them to collect
all our past due accounts.
"Yours is a very old one, therefore we must
again insist upon immediate payment. So see
A
Highest
Quality
the writer as soon as you receive this letter."
That letter did not move him, so another was
sent.
"May 11, 1924.
"Dear Sir: We are disappointed in your not
taking better care of your account and feel that,
in neglecting our requests for you to call, you
have not the proper interest in protecting your
agreement.
"Now, Mr. Doyer, we are not going to carry
your account any longer in its present condition
and unless you call with a payment and arrange
for future payments by Saturday we are going
to resort to other means to get this account
closed. We want to be reasonable in this affair,
but if you won't take care of your end we must
protect ourselves. So please see the writer by
Saturday if you expect further consideration
from us."
Still he failed to respond, thereupon a clincher
was dispatched.
"May 16, 1924.
"Dear Sir: Our recent letters have received
no attention from you, so this is to notify you
that unless payment is received at this office by
the twenty-second we will close the account and
send for the piano.
"We have given you every opportunity to
take care of your account. Your neglect causes
us to believe that yo do not care about your
obligations."
The last letter in the series scarcely had time
to reach Doyer when he came rushing to the
store. He was defiant and boldly asserted he
would pay when he got ready. However, a few
hot shots straight from the shoulder soon made
him change his attitude. He offered a compro-
mise and was told the only proposition the
store would entertain was cash or a note, with
interest at 6 per cent, covering the entire ac-
count, plus a 10 per cent addition to the amount,
the carrying charge made on all delinquent
accounts. This proposal again set him off, so
he was told to borrow the money from a bank
at 6 per cent and pay up. He hotly declared
he would do this and left. In the course of a
couple of hours, however, he returned, after
having visited three or four banks and receiving
courteous turndowns. He was now in an ap-
proachable mood, he paid $20 and signed the
note for the balance of the amount, plus the 10
per cent charge.
It will be noted that the letters were written
five days apart and, while not severe, did not
mince words.
Every past due account on the books of the
Goosman Co. received a letter similar in tone to
one of the above and few failed to respond.
Some came with knees shaking, others with
tears in their eyes. Others took the dun in a
good-natured manner. To all, however, the pro-
posal that cash must be paid at once or the 10
per cent carrying charge would be added to the
amount was made. Most of the debtors ac-
cepted the terms. Many realized that the penalty
was deserved. Practically every one of the lot
desired to keep his piano.
Each to be sure had his or her excuse story to
offer. In the majority of cases carelessness, ex-
travagance and wastefulness were at the bottom
of their troubles. Thrift has no part in the lives
of most persons who are continually.in debt.
From the standpoint of the house this series
with the kickback of 10 per cent carrying charge
T
ONKRENCH
is the most successful collection effort ever
attempted by the company. More money was
collected and a greater opportunity to foster the
policies of the house presented than ever before.
Most persons are fair and are willing to admit
their faults. Indeed, several declared they had
spent the money intended for payment on the
piano because no collector had called to get it.
The unusual plan points a remedy for the collec-
tion ills of music merchants generally.
Death of John S. Spring
ALLIANCE, O., June 30.—John S. Spring, head
of the Spring, Holzwarth Co., operating depart-
ment stores here and in Salem, died at his home
in this city recently at the age of sixty-seven,
following an illness of two years. The local
store of the company maintains one of the larg-
est piano departments here.
Consult the Universal Want Directory of
The Review. In it advertisements are inserted
free of charge for men who desire positions.
Pratt Read
Products
Piano Ivory
P i a n o Keys
Piano Actions
Player Actions
Established in
1806
at Deep River, Conn.
Still There
Standard Service and Highest Quality
Special Repair Departments
Maintained for Convenience
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PRATT, READ & CO.
PRATT READ PLAYER ACTION CO.
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