Music Trade Review
Issue: 1924 Vol. 78 N. 25 - Page 5
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
JUNE 21, 1924
MUSIC TRADE
REVIEW
Collecting from Uncertain Accounts
Fixing the Payments on the Sales Contract in Such a Way That They Can Be Most Easily Met by the
Customer—A Passbook System Used by S. L. Scott, Piano and Talking Machine Merchant of
Mt. Vernon, N. Y., Which Meets the Requirements of This Demand
ALES of the higher grades of instruments
made to people of recognized responsibility
on the instalment basis should offer few
problems in the matter of collections, for it is
assumed that the credit standing of the cus-
tomer has been duly investigated. Under such
circumstances the making of collections on a
monthly basis proves generally satisfactory,
?.nd the number of overdue payments should
S
other ways protects the dealer against facing a
large unpaid balance which the customer cannot
possibly meet and which is most likely to lead
to a repossession.
A number of dealers who do considerable
business in low-priced instruments are already
following the policy of quoting terms on "a
weekly basis. This policy has two results—
first, it brings the money in at more frequent
THIS IS TOUR ACCOUNT BOOK, ia whkk will fcc raltrcJ yeu »«r- Pleat* notify ut at once • ! aay ekaftfe in your
d payauati. Yw ••••la' »h»rn
residence address.
Wiaf it with * • • wbca traauctiaf u f auiaeet with ai.
DOLL.
or
PAYMENTS
PURCHASES
OcrA.L
tastoet*
crs
DOLL.
CI«
D*1>
tllf
PAID
I
c
OAtC
AHT.
P*IO
s
c
IHIT
AMOUNT
Bm. row o
TCR MS ONLY 1
r i r u c N T s AKE DUE A N D PAYABLE AT O U " * » « • >
Ail MM
U u utmnUrmf
(Op*** »).
AS •PKCiriCO IILOW.
j
Dtpoall;
«
On Delivery; $
$
k*l«re Delivery
every
L
iMxtenlnt
Special payment «4 %
r o o t * CAIIK-D Ovm
FOOT'© O M 1
Ovf*
WESTCHESTER'S LEADING
MUSIC
HOUSE
VICTROLAS, PIANOS, RECORDS - EVERYTHING IN MUSIC = = = = =
represent only a very small percentage of the intervals, and, secondly, is calculated to impress
gross.
the prospect with the fact that a very small
There is a class of customers, however, pur- amount of money is necessary to put him into
chasers of medium and lower-priced instru- possession of the desired instrument.
ments and sometimes of the more expensive
It is a fact that the great majority of furni-
types if the dealer is not careful, to whom the ture houses making a specialty of selling on
monthly payment plan is likely to prove a bur- instalments and emphasizing the fact that bills
den after the newness and thrill of the purchase for housefurnishings amounting to as little as
has worn off.
$10 may be paid in instalments, invariably quote
Ordinarily speaking, this type of customer terms on the weekly plan, as, for instance, SO
may be honest and from the standpoint of in- cents per week on a $25 purchase, $1 per week
come a good credit risk, but, in many cases, on a $50 purchase, $2 per week on $100 pur-
the weekly income represents the total resources chase and $4 per week on a $200 account. The
of the family, and there is a tendency at times amounts appear to be very small, yet $4 a week
to. place too great a burden on that income. The amounts to over $17 per month, taking the aver-
result is that unless the head of the family puts age for the year, and the individual who would
aside each week a sum sufficient to cover at hesitate to obligate himself to pay $17 a month
least a quarter of the monthly instalments, the out of $150 salary will sign up on a $4 per week-
payment date is likely to find the customer short basis without hesitation.
of funds through force of circumstances rather
In the main, the problem in connection with
than intention.
any instalment sale is to impress the customer
In cases such as this, it has proven a matter with the fact that in signing the contract he is
of policy to divide the monthly payments into putting himself under an obligation to meet the
four parts and make the provision that the payments as provided for therein, and in connec-
smaller amounts be paid weekly. It entails a tion with the weekly payment plan there is a
little more bookkeeping, but at the same time it new angle presented to this problem which is
keeps the account well in control, keeps con- that of persuading the customer to come to the
stantly before the customer that a certain store each week to make the payments and thus
amount is to be paid out of each weekly en- cut down collection overhead.
velope for the piano or talking machine and in
There are various methods that have been
Highest
Quality
tried to bring about this regular calling at the
store, such as giving cash discounts for the
cleaning up of accounts on schedule or before,
or presenting the customer with a music roll
or some other piece of merchandise upon com-
pletion of certain sections of the contract to
bring out payments.
S. L. Scott, a piano and talking machine
dealer in Mt. Vernon, N. Y., has used for some
time past and with considerable success a pass-
book such as that used by savings banks. The
book is so ruled as to permit of the entering
of each payment as made, and there is also
space provided on the pages for entering a rec-
ord of the terms of the contract so that his
obligation is brought to the attention of the
customer each time he opens the book.
The accompanying illustration shows the fac-
ing pages of this passbook, which gives some
idea of the layout and the printed text. The
reverse side of the pages which constitutes the
cover of the passbook bears the name and ad-
dress of the dealer, together with the name and
address of the customer with space provided for
any change in such address. The customer al-
ways knows how his account stands.
In the case of weekly payments the passbook
has been found to save much argument over
payments that have been made and receipts
lost. The customer sees to it that each payment
is entered in the book which gives him a con-
stant checkup and protects him against the loss
of one or two loose receipts, which are fre-
quently given for instalment payments under
other systems.
There are, of course, certain types of cus-
tomers to whom the passbook might not appeal,
but where the buyer is of the type that makes
the adoption of the weekly plan desirable the
passbook idea will meet with little objection.
Two New Buildings Planned
For Plant of Victor Go.
One Structure to House Record Library and
Studio and Another for Service to Employes
to Be Erected at Cost of $2,000,000
1'mi.ADKi.i'HiA, PA., June 17.—Eldredge R. John-
son, president of the Victor Talking Machine
Co., of Camden, announced during the week that
plans have been completed for the erection of
two new buildings representing a cost of $2,000,-
000. One of these buildings will be erected for
the purpose of housing the record laboratory
and studio and will be constructed on the site
north of the present office building on Front
street near Copper street.
The other building will be given over to a
service department for the workers in the Vic-
tory factory. It will be of ten stories and
divided into a series of kitchens sufficient to
supply food for the 10,000 employes of the Vic-
tor plant. The company's emergency hospital
and dispensary will be located in this building,
which is to be erected on the north side of
Copper street, between Point and Ambler
streets. The restaurant department in the build-
ing will be arranged on an entirely unique basis
and will be provided with every modern -cooking
device of first-class dining service providing for
efficiency and good cooking.
Highest
Quality
THE
JUNE 21, 1924
MUSIC TRADE
REVIEW
Collecting from Uncertain Accounts
Fixing the Payments on the Sales Contract in Such a Way That They Can Be Most Easily Met by the
Customer—A Passbook System Used by S. L. Scott, Piano and Talking Machine Merchant of
Mt. Vernon, N. Y., Which Meets the Requirements of This Demand
ALES of the higher grades of instruments
made to people of recognized responsibility
on the instalment basis should offer few
problems in the matter of collections, for it is
assumed that the credit standing of the cus-
tomer has been duly investigated. Under such
circumstances the making of collections on a
monthly basis proves generally satisfactory,
?.nd the number of overdue payments should
S
other ways protects the dealer against facing a
large unpaid balance which the customer cannot
possibly meet and which is most likely to lead
to a repossession.
A number of dealers who do considerable
business in low-priced instruments are already
following the policy of quoting terms on "a
weekly basis. This policy has two results—
first, it brings the money in at more frequent
THIS IS TOUR ACCOUNT BOOK, ia whkk will fcc raltrcJ yeu »«r- Pleat* notify ut at once • ! aay ekaftfe in your
residence address.
Wiaf it with * • • wbca traauctiaf u f auiaeet with ai.
DOLL.
or
PAYMENTS
PURCHASES
OcrA.L
tastoet*
crs
DOLL.
CI«
D*1>
tllf
PAID
I
c
OAtC
AHT.
P*IO
s
c
IHIT
AMOUNT
Bm. row o
TCR MS ONLY 1
r i r u c N T s AKE DUE A N D PAYABLE AT O U " * » « • >
Ail MM
U u utmnUrmf
(Op*** »).
AS •PKCiriCO IILOW.
j
Dtpoall;
«
On Delivery; $
$
k*l«re Delivery
every
L
iMxtenlnt
Special payment «4 %
r o o t * CAIIK-D Ovm
FOOT'© O M 1
Ovf*
WESTCHESTER'S LEADING
MUSIC
HOUSE
VICTROLAS, PIANOS, RECORDS - EVERYTHING IN MUSIC = = = = =
represent only a very small percentage of the intervals, and, secondly, is calculated to impress
gross.
the prospect with the fact that a very small
There is a class of customers, however, pur- amount of money is necessary to put him into
chasers of medium and lower-priced instru- possession of the desired instrument.
ments and sometimes of the more expensive
It is a fact that the great majority of furni-
types if the dealer is not careful, to whom the ture houses making a specialty of selling on
monthly payment plan is likely to prove a bur- instalments and emphasizing the fact that bills
den after the newness and thrill of the purchase for housefurnishings amounting to as little as
has worn off.
$10 may be paid in instalments, invariably quote
Ordinarily speaking, this type of customer terms on the weekly plan, as, for instance, SO
may be honest and from the standpoint of in- cents per week on a $25 purchase, $1 per week
come a good credit risk, but, in many cases, on a $50 purchase, $2 per week on $100 pur-
the weekly income represents the total resources chase and $4 per week on a $200 account. The
of the family, and there is a tendency at times amounts appear to be very small, yet $4 a week
to. place too great a burden on that income. The amounts to over $17 per month, taking the aver-
result is that unless the head of the family puts age for the year, and the individual who would
aside each week a sum sufficient to cover at hesitate to obligate himself to pay $17 a month
least a quarter of the monthly instalments, the out of $150 salary will sign up on a $4 per week-
payment date is likely to find the customer short basis without hesitation.
of funds through force of circumstances rather
In the main, the problem in connection with
than intention.
any instalment sale is to impress the customer
In cases such as this, it has proven a matter with the fact that in signing the contract he is
of policy to divide the monthly payments into putting himself under an obligation to meet the
four parts and make the provision that the payments as provided for therein, and in connec-
smaller amounts be paid weekly. It entails a tion with the weekly payment plan there is a
little more bookkeeping, but at the same time it new angle presented to this problem which is
keeps the account well in control, keeps con- that of persuading the customer to come to the
stantly before the customer that a certain store each week to make the payments and thus
amount is to be paid out of each weekly en- cut down collection overhead.
velope for the piano or talking machine and in
There are various methods that have been
Highest
Quality
tried to bring about this regular calling at the
store, such as giving cash discounts for the
cleaning up of accounts on schedule or before,
or presenting the customer with a music roll
or some other piece of merchandise upon com-
pletion of certain sections of the contract to
bring out payments.
S. L. Scott, a piano and talking machine
dealer in Mt. Vernon, N. Y., has used for some
time past and with considerable success a pass-
book such as that used by savings banks. The
book is so ruled as to permit of the entering
of each payment as made, and there is also
space provided on the pages for entering a rec-
ord of the terms of the contract so that his
obligation is brought to the attention of the
customer each time he opens the book.
The accompanying illustration shows the fac-
ing pages of this passbook, which gives some
idea of the layout and the printed text. The
reverse side of the pages which constitutes the
cover of the passbook bears the name and ad-
dress of the dealer, together with the name and
address of the customer with space provided for
any change in such address. The customer al-
ways knows how his account stands.
In the case of weekly payments the passbook
has been found to save much argument over
payments that have been made and receipts
lost. The customer sees to it that each payment
is entered in the book which gives him a con-
stant checkup and protects him against the loss
of one or two loose receipts, which are fre-
quently given for instalment payments under
other systems.
There are, of course, certain types of cus-
tomers to whom the passbook might not appeal,
but where the buyer is of the type that makes
the adoption of the weekly plan desirable the
passbook idea will meet with little objection.
Two New Buildings Planned
For Plant of Victor Go.
One Structure to House Record Library and
Studio and Another for Service to Employes
to Be Erected at Cost of $2,000,000
1'mi.ADKi.i'HiA, PA., June 17.—Eldredge R. John-
son, president of the Victor Talking Machine
Co., of Camden, announced during the week that
plans have been completed for the erection of
two new buildings representing a cost of $2,000,-
000. One of these buildings will be erected for
the purpose of housing the record laboratory
and studio and will be constructed on the site
north of the present office building on Front
street near Copper street.
The other building will be given over to a
service department for the workers in the Vic-
tory factory. It will be of ten stories and
divided into a series of kitchens sufficient to
supply food for the 10,000 employes of the Vic-
tor plant. The company's emergency hospital
and dispensary will be located in this building,
which is to be erected on the north side of
Copper street, between Point and Ambler
streets. The restaurant department in the build-
ing will be arranged on an entirely unique basis
and will be provided with every modern -cooking
device of first-class dining service providing for
efficiency and good cooking.
Highest
Quality
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