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THE
VOL. 85. No. 14
REVIEW
Published Weekly. Federated Business Publications, Inc., 420 Lexington Ave., New York, N. Y., Oct. 1,1927
8In
ft£ € R?JL? eilto
Collecting the Money
But Keeping the Customer
Another Series of Collection Letters That Serve to Cut Down the Past Due
Balance Without Offending the Customer — Helping to Solve the Problem
of Keeping Instalment Accounts in Profitable Shape by Use of the Mails
I
-^HE overdue account may be described as
the boll-weevil of the retail music busi-
" ness, for it sucks constantly at the profits,
and if allowed to flourish and propagate can
prove very dangerous to the entire business
fabric. The music merchant, however, with an
instrument in the home, must use a certain
amount of discretion in forcing his collections,
and use sufficient tact to get the money and at
the same time retain the friendship of the cus-
tomer. The combination of diplomacy and firm-
ness is the answer.
Prompt collection depends first upon careful
credit granting, to eliminate at the outset as far
as possible those who are likely to prove un-
desirable risks, and, secondly, an efficient sys-
tem for following up slow-paying accounts and
a rigid system that the terms of the contract be
respected.
Increased collections are the real barometer
of profits of any business and collections can
be "speeded up" through tact, courtesy and
persistency in getting after delinquent accounts
the minute their heads bob above the waters of
"not paid on due date."
Many music dealers let their accounts run
too long, and then suddenly wake up to the
realization that their best collection efforts are
completely baffled and results in the form of in-
coming checks barren and fruitless. But by
prodding delinquent accounts by means of a
persistent follow-up which never lets an ac-
count get cold on the books, the honest debtor
can be warmed up to paying his account. This
system of continuous nagging in a friendly vein
gets its psychological reaction in the form of
payments, in full or on account. And there is
no use getting "hard-boiled" about it, or in
dipping your pen in vinegar when you pen that
next collection letter, since such a method not
only fails to bag the needy dollars, but it loses
many an otherwise perfectly good account.
A regular series of result-tested letters and
methods is also preferable to continuous search-
ing for an ideal collection letter. Such a series
used by one music dealer is here presented.
This system features the trip-hammer method
of extracting checks, cash in hand, or definite
promises to pay, by repeated mailings every
ten days until the account is heard from, and
so brings home the bacon without resorting to
legal action or other unnecessary expense, or
turning the account over to a collection agency.
This printed form is filled in in duplicate and
the original sent out with the first statement of
account, as soon as it shows up delinquent. If
nothing happens, in ten days the duplicate copy
of this slip automatically turns up, and reminds
the music trade dealer to send out Form No. 2
which is another printed form:
TWO
REMINDERS!
LLECTING
instalment accounts
That Your Account is Now Payable!
promptly, keeping the past due within
Your co-operation in this matter will assist
reasonable bounds and at the same time re- in reinstating your account among the prompt
taining the friendship of the customer, is pays.
A Duplicate of Your Last Statement of Ac-
the final test of the retail merchant. The
count
is also enclosed to remind you of the ex-
collection letter that jogs the customer and
act amount due.
moves him to pay up without causing him
CROWN MUSIC CO.
annoyance
If nothing is heard from the customer in the
medium, and there is presented in this next ten days, out goes Form No. 3, which is
article a series of letters that have actually another printed reminder, and includes a blank
brought results. They do not become "hard- check, dated and made payable to the Crown
Music Co. in the amount actually due, so that
boiled" until necessity demands it.
all the delinquent has to do is to fill in the name
of his bank and sign the check.
IF YOU HAVE MAILED YOUR CHECK
THROW THIS AWAY
These seven holy apostles preach an unmis-
takable sermon, and the debtor is quick to
But If You Haven't—Just Fill in and Sign
sense their significance. Consequently, results the Enclosed Check and Drop it in the Nearest
begin to arrive anywhere along the line as the Letter Box TODAY!
ten-day intervals elapse in quick succession, and
On the left of this form is a picture of a
when the last letter of this series is ready to go letter box; on the right is a picture of a waste-
out the ranks of debtors are pretty well thinned
basket, with a red arrow leading to it from the
out, and as for the remaining sinners they heading "throw this away."
Red lightning,
might as well be turned out of the temple of
darting out of black clouds under the reading
your trust.
matter "letter box to-day," on the center of the
The first series is a mild type of printed re- form, is flashed to the left in the direction of
the letter box.
minders,
Payment
Acct. No. 431
It has been well said that a good picture is
Past Due
The Crown Music Co.
worth 10,000 words, and this graphic reminder
To
1927 certainly proves very effective. Illustrated re-
quests for payment of overdue accounts, like
According to our records your account is past this one, also lend a friendly touch to dunning
due. You should send in your check promptly methods, and get under the skin quicker than
to preserve your good credit standing, or ex- just an ordinary drab mimeograph, multigraph
plain the delinquency. Kindly look after this or printed form, no matter how cleverly it is
worded. But if nothing happens in the next
at once.
Yours very truly,
(Continued on page 7)
THE CROWN MUSIC CO.,
3