Music Trade Review

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A CREDIT ORGANIZATION
THAT HAS
CREDIT INFORMATION
SPEED
PLUS
SAFETY
T
HE average music merchant today has two outstanding
problems, the first, that of developing enough sales to
keep his business going with at least some measure of
profit and, secondly, the maintenance of a credit system
that will work in good times as well as bad and keep collec-
tion losses at a minimum. The credit problem is not alone
avoiding the activities of frauds but of sizing up the responsi-
bilities of those who are honest enough but are faced with
income uncertainty in the existing situation.
Among the music houses that have developed a system that
works surprisingly well is the Platt Music Co., of Los An-
geles, which, in addition to its main store, operates well over
a score of branches. The credit matters of the branch store
in and about Los Angeles are handled direct from headquar-
ters, but in the branches distant from the main store it has
been necessary to set up separate credit departments with a
personnel familiar with local conditions.
PLATT MUSIC COMPANY
REQUEST FOR CREDIT APPROVAL
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FORM USED FOR DATA OVER "PHONE
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GENERAL CREDIT INFORMATION FORM
An excellent idea of how the Platt system operates may
be gleaned from a study of the methods of the main store and
the metropolitan branches. Credit investigation, as a rule,
does not occur until after the first payment has been made.
The salesman fills out the usual credit information on forms
which are forwarded to the credit department of the main
store although the information is telephoned immediately the
sale is made.
It frequently occurs that the credit is passed and the delivery
of the merchandise is made before the papers come in by mail.
If the credit is deemed OK with no delays for investigation,
a dummy delivery order is sent to the warehouse and the
merchandise is delivered. When the papers come in, the
original delivery order is pinned to the dummy and filed with
the other papers.
"We strive not to let the customer realize at the moment
that his credit rating and ability to pay are being seriously
questioned," explained P. J. Cullen, assistant credit manager.
"We have sufficient time between the taking of the order and
the delivery of the merchandise to get enough information to
determine the possibilities. If it doesn't look good, the de-
livery is held up and the customer's money refunded. We
have many newcomers to the region. At first they reside in
hotels or apartments. They want radios. It is necessary for
us to speed up investigation of them, so we use the telegraph
to obtain a line on them from merchants and bankers in their
former homes. A wire sent out in the morning brings an
answer in the afternoon, and, if OK the delivery of the
merchandise may be made the next morning."
Credit passed, a card is made out carrying the information
and terms of payment. Across the top are numerals repre-
senting the days of the month. Red tabs are affixed to the
dates when payments are due. If it is a new account, the
(Please turn to page 14)
THE
MUSIC
TRADE
REVIEW,
October,
1932