TRAVELING SALESMANSHIP THE MACMILLAN COMPANY HEW YORK BOSTON CHICAGO DALLAS ATLANTA SAN FRANCISCO MACMILLAN & CO., LIMITED LONDON BOMBAY CALCUTTA MELBOURNE THE MACMILLAN CO. OF CANADA, LTD. TORONTO TRAVELING SALESMANSHIP BY ARCHER WALL DOUGLAS CHAIRMAN, COMMITTEE ON STATISTICS OF THE UNITED STATES CHAMBER OF COMMERCE, AUTHOR OF " MERCHANDISING " f ark THE MACMILLAN COMPANY 1919 All tights reserved COPYRIGHT, 1919 BY THE MACMILLAN COMPANY Set up and electrotyped. Published November, 1919 PREFACE I have always held that a complete and thorough understanding of any phase of Economics can be gained only by personal experience or first- hand study and observation. Hence this little book is not merely the usual study of the psy- chology of Salesmanship, but rather the result of forty years' close contact with the traveling salesmen of one of the largest distributing mer- cantile organizations of this country. ARCHER WALL DOUGLAS. St. Louis, September ist, 1919. CONTENTS CHAPTER PAGE I. THE NATURE AND FUNCTION OF SALESMANSHIP. . I II. PREPARATIONS FOR THE ROAD 10 III. WORK ON THE ROAD IJ IV. WORK ON THE ROAD 25 V. CONTACT WITH CUSTOMERS 34 VI. COMPETITION AND PRICES. 45 VII. COMPETITION AND PRICES 55 VIII. COMPETITION AND PRICES (CONCLUDED) 68 IX. SOME PHASES OF SELLING. SELLING NEW STOCK 82 X. SOME PHASES OF SELLING CONTINUED; SELL- ING TO ALL DEALERS IN A TOWN 95 XL SOME PHASES OF SELLING CONTINUED; CHANG- ING CHANNELS OF DISTRIBUTION IO5 XII. SOME PHASES OF SELLING CONCLUDED; AD- VERTISING 119 XIII. CLAIMS 128 XIV. THE HUMAN EQUATION 138 INDEX 151 vii TRAVELING SALESMANSHIP TRAVELING SALESMANSHIP CHAPTER I THE NATURE AND FUNCTION OF SALESMANSHIP General survey of Salesmanship Reason for Salesman- ship Definition of the Science of Salesmanship Different types of Salesmen Selection of the Jobber as the type for consideration. The compelling reason for the exercise of the Art and Science of Salesmanship consists in the elemental fact that in normal times there are always more persons who are eager to sell than there are persons who are eager to buy. In other words, while there must always be a seller for every buyer, it constantly happens that there are many would-be sellers who have difficulty in finding a market for their wares. This is especially true of dealers in rare articles, in curiosities, and for all those articles for which there is only spasmodic and uncertain demand. In a larger way this difficulty in finding a ready market for those who desire to sell is one of the peculiarities of the real estate business in most parts of the world. Only in the comparatively 2 TRAVELING SALESMANSHIP rare and fleeting days of extreme prosperity, when demand presses hard upon or else over- tops supply, does there arise that condition known as a buyer's market, when the buyers are more eager to purchase than salesmen are to sell. So with brief and passing interludes of "boom" periods in business, the usual and continuing story in commercial life is a sur- plusage of wares seeking a market. It is a curious and interesting fact of commercial life that a large proportion of the sales made are due to the skill and persuasive powers of the salesman rather than the initial desire or neces- sity of the buyer. In normal times the buyer is naturally conservative and inclined to pur- chase only for his immediate needs. Under such conditions the part of salesmanship is, after some fashion, to persuade the buyer of the wisdom, or necessity, or advisability of making purchases, so that the salesman may get an order for his goods. Salesmanship is ele- mentally the ancient scheme of barter trans- ferred to a higher and more rational plane of psychology, and conducted after modern ways and methods. In the Orient the old ways still persist, and a purchase of even a modest nature in the bazaars is a serious and momentous affair, involving much dialogue and bluffing (as we NATURE AND FUNCTION 3 term it in the Occident) until at last a compro- mise is reached, far different from the initial impossible demands of either party. In modern times and among Western nations we largely have eliminated all useless forms and paraphernalia of inconsequent and irrel- evant discussion, and we endeavor at once to come to the point of mutual understanding. Yet, withal, an appreciable and indispensable share of persuasion is required on the part of the salesman, and this attitude is met by a natural indifference, sometimes real, sometimes sim- ulated, and an innate determination, on the part of the buyer to get a better bargain than is at first offered by the seller. It is both an instinct and a tradition with the buyer never to be eager in purchasing, but rather to assume a reluctance to buy unless it obviously be made to his ad- vantage to do so. Often the buyer is not in actual need of the goods, and can afford to wait, much more so and much longer than the seller. It is here that the art of salesmanship comes into play in the psychology of argument, per- suasion and reasoning which he brings to bear upon the buyer. It is remarkable how often he succeeds, considering how much stronger nat- urally is the position of the buyer. It is a com- mon saying in the trade that any man can sell 4 TRAVELING SALESMANSHIP goods by cutting prices, that is, by making lower prices than the buyer can secure else- where, but that it takes salesmanship to main- tain prices and still get the business. It is this latter accomplishment to which the art of salesmanship is directed. The science, as distinguished from the art of salesmanship, consists rather in the systematized direction and careful handling of the many details of the salesman's work. It is quite as necessary to successful salesmanship as the more intellectual and psychological methods of artistic persua- sion. It is only within the last generation that there has come, even in the commercial world, a widespread realization of the true nature and importance of salesmanship. Prior to that time the calling or vocation of a salesman in commercial life was looked upon askance, and rather regarded as a pursuit which did not de- mand either great talent or study for its success- ful prosecution. The term "drummers" as ap- plied to commercial travelers expressed largely the estimate of their standing in popular regard. What is now clear is that the principle of sales- manship is of universal application to every one who has something to offer for which he expects compensation. Salesmanship is thus as much a part of the calling of a writer or author as of NATURE AND FUNCTION 5 a retail grocery dealer, though the manner and method of such salesmanship necessarily vary widely according to the character of the calling. The usual misconception of salesmanship on the part of professional men and artists is to assume that it can only be of the same character as that very naturally and properly employed in the business world, namely, solicitation, and con- sequently is unsuitable to their calling. The salesmanship of commercial life is the story of this book, and its analysis and exposi- tion are undertaken with the full consciousness that it is the most difficult of all phases of busi- ness endeavor to describe or to teach. More than of any other occupation in commercial life is it true of a salesman that he is born, not made. Fortunately this is true only of the highest expression of salesmanship. For by ceaseless industry, patient study, and much hard thinking, many men, not natural-born salesmen, make a success of their calling. There is no formula nor is there any certain definition of salesmanship. Men most diverse in every way make good salesmen, and apparently by meth- ods as opposite as the poles. So very impos- sible is accurate analysis as to the detailed requisites which constitute a salesman that prob- ably the best definition is that of a very sue- 6 TRAVELING SALESMANSHIP cessful commercial traveler: "A salesman is a man who sells goods." Careful observation and analysis seem to indicate, however, that there are certain traits and factors common to all successful salesmen. Unflagging industry, a knowledge of their business, and better still, a knowledge of human nature, and such conduct and bearing as win and hold the respect and confidence of their customers, seem to be ab- solutely essential requisites to enduring success in selling goods. For the purposes of this book the salesman for a large distributing house (a jobber) is se- lected as the type under consideration, because of the wide scope of his duties and experiences. Those analogies common to the salesman for a manufacturer or for a retailer will be touched upon as they occur. The ways and means of selling as illustrated in everyday commercial life by the best examples will be the subject of the following chapters, the contents of which are briefly epitomized. CHAPTER I, THE NATURE AND FUNCTION OF SALESMANSHIP, emphasizes the far-reaching character of Salesmanship, both as an art and a science, and as being a calling fitted to every phase of endeavor of men who have some- NATURE AND FUNCTION 7 thing to offer in return for a livelihood and its rewards. CHAPTER II, PREPARATIONS FOR THE ROAD, explains the necessity of systematic training of the salesman before he goes out on the road; especially emphasizes the need of a thorough knowledge of the goods which the salesman expects to sell. CHAPTERS III AND IV, WORK ON THE ROAD. These chapters describe the methods by which the salesman covers his territory, both with respect to broad general policy and neces- sary details. CHAPTER V, CONTACT WITH CUSTOMERS, brings out the need of great tact and diplomacy even in small matters as well as in great, in so far as they bear upon the all-important study of dealing with customers; it also shows that gaining the confidence of the customer is the keynote to success in Salesmanship. CHAPTERS VI, VII, AND VIII, COMPETITION AND PRICES. These chapters analyze the difficulties of competition and the best methods, sanctioned by experience, in overcoming these 8 TRAVELING SALESMANSHIP difficulties. They treat of the important matter of prices, but show that price is not the all- important factor it is erroneously supposed to be. Examples are given of various ways and methods of meeting competition, of handling prices, and the necessity of making profits on goods sold is set forth in detail. CHAPTERS IX, X, XI, XII, AND XIII, SOME PHASES OF SELLING, treat of the im- portance and best methods of selling new stocks of merchandise, of establishing agencies for certain lines of goods, of the great importance of selling to as many customers as possible in each town, of quantity prices and how they are to be handled, of changing channels of distri- bution and how to meet the difficulties thereby created, of the supreme importance of selling largely of such goods as are profitable, of selling futures, of the relation the traveling salesman bears to advertising, of the importance of small things, of the salesman's share in handling claims and credits. CHAPTER XIV, THE HUMAN EQUATION, dwells upon the human equation as the most important factor in the problem of salesmanship, as illus- trated in the salesman's contact with his cus- NATURE AND FUNCTION 9 tomers, his associates in his own firm and the people he meets daily; shows the value to the salesman of the faculty of making friends; illus- trates the capacity possessed by the salesman for the true analysis of the business conditions in his territory and his vision as to the possi- bilities of his route; concludes with the review of the ultimate purpose of the salesman in the acquirement of experience, and the fulfillment of a most difficult task. CHAPTER II PREPARATIONS FOR THE ROAD Knowing the goods Working in stock or in a retail store Memorizing the numbers, descriptions and prices of a line Knowledge of workmanship, packing and material of the lines Familiarity with talking points Keeping posted on catalogue. Preparedness for his job is the first essential of the salesman. To send out an unprepared salesman is tempting fate and courting almost certain failure. Few salesmen under such con- ditions have either the luck or the resourceful- ness requisite for success. The primal thing is for the salesman to know the goods he expects to sell. One of the best preparations is sufficiently long service as a stockman in daily handling the goods or else serving an apprenticeship in a retail store so that he thus becomes acquainted with them by actual contact. He must know them by sight, be familiar with the uses to which they are put, and as far as possible should be able to call off the numbers and names of the goods at sight. Perfection or even proficiency IO PREPAREDNESS 11 in this latter acquirement is usually the result only of long experience and often much study. Few things impress a customer more favorably than the familiarity of the salesman who calls upon him with the goods he has to sell. There are not a few very good salesmen whose knowl- edge of their line is not very deep. Contrari- wise, there are a number of men who are most conversant with their line, but are not good salesmen. Yet it is none the less a serious handi- cap for the best salesmen not to be thoroughly familiar with their lines. To have these lines at their fingers' ends is a most useful accom- plishment and a great aid to success. The more complicated the line, the more striking and effective is a complete and thorough knowledge of it. Embroideries and laces, for instance, are lines which few men, even among those who sell them, have really mastered. To know these goods intimately, to call off the selling prices by merely looking at the articles, to be able to describe them in detail, "sight unseen," as is the boyhood phrase, is usually the mark of the special salesman and is consequently one of the prime factors in his success. Such familiarity with the goods always impresses a customer, provided it be displayed quietly and as a matter 12 TRAVELING SALESMANSHIP of course. This is largely the psychological basis for the success of the special salesman, who makes a study of some one line of goods, and thus is able to present all the merits of the goods to the customer in a more convincing manner than the regular salesman, even though the latter may be, and often is, on the whole, the better salesman of the two. The human nature of the buyer prefers to deal with one whose knowledge of the goods in question is superior to his own, and from whom he, therefore, can learn. And in addition there is the instinctive admiration we all feel for the man who is on to his job and knows whereof he speaks. In every phase of the com- mercial business of distribution the lines are so many and the assortments so large that no one salesman can be a specialist in them all. But the salesman must have more than a passing fa- miliarity with the staple lines, those most frequently sold or he will make a poor im- pression upon his customers. He should never go on the road until he has at least attained that much. He must likewise be equipped with talking points on the merits of his leading arti- cles. He should know, for instance, the mate- rial of which the best handsaws are made, the peculiarities of the grinding of the blade and the PREPAREDNESS 13 setting of the teeth that they may saw more readily and effectively; also such minor points as the material of the handle, the way and man- ner by which it is fastened to the blade, and compactness of the box in which it is packed. These details of material, method of manufac- ture, and ways of packing naturally are sug- gested in conversation with the buyer of the goods of the salesman's firm, whose business it is to keep posted on such matters. In most large distributing houses there are regular classes for the instruction of salesmen, presided over by practical experienced men, sometimes buyers, sometimes sales managers, who present and elucidate all matters of interest. This makes the sale of the goods easier. The talking points bearing on the merits of an ar- ticle are of great moment in effecting its sale. Sometimes the demand for an article may be based almost entirely on one or two distinctive points of merit. For instance, the wearing qualities of a certain brand of hosiery may be their principal selling point, or else a hammer may have the handle so fastened to the head that, unlike an impetuous person, it never "flies off the handle." The salesman must have all these points of merit well learned and readily at his command in selling the goods. For be i 4 TRAVELING SALESMANSHIP it remembered that the goods which endure in public favor are those of proved and tried merit, and the salesman must be prepared to demon- strate the points of merit to his customers in a brief and entertaining fashion, and one entirely free from any suspicion of being didactic. The average customer is a ready enough listener when the story is well and aptly told, and does not smack of that learning which seeks to im- part knowledge in a too obviously superior manner. The salesman must also make himself famil- iar with the uses to which the articles he sells are intended and their fitness for such purpose. He should be able to explain intelligently, for instance, why the composition and workman- ship of automobile casings which he sells causes them to wear so long, to be so resilient and not to puncture easily. The prospective salesman must likewise be well posted on the prices of the goods he expects to sell, and the general policy of his firm in re- gard to meeting competition. In an extended line of goods, such as is generally carried by every large jobbing house, no salesman can expect to be familiar offhand with the prices of more than a comparatively limited number of articles. Necessarily he must consult his price PREPAREDNESS 15 list or catalogue frequently when quoting prices, especially as prices in most lines have a fash- ion of constantly changing. Yet the good salesman will memorize from constant use a large line of prices of the goods he sells fre- quently. His readiness and ability to quote promptly such prices from memory are taken for granted by the average customer. So much so, in fact, that the inability of the salesman to do so always makes an unfavorable impres- sion on the customer. The salesman should also become familiar with the printed and illustrated catalogue, which most jobbers of any size now issue to their customers, or from which the salesman sells goods. He should know in which part of the catalogue the different lines of goods are shown and illustrated, and be able to turn quickly in the book to any goods he wishes to refer to. In consultation with the proper par- ties, he should post himself as to the general policy of the firm in regard to the handling of claims, the extending of credits, the collection of accounts. He must likewise provide himself with all necessary details, as stationery for cor- respondence, order books for taking orders, expense account books, and the like. He must carefully select his line of samples in cooperation 16 TRAVELING SALESMANSHIP with the sales manager or other official to whom he is immediately responsible, and who pre- sumably is thoroughly posted as to the territory in which the salesman is to travel. Likewise in connection with the same official he should arrange his general plan of covering his route, and should especially become familiar, as far as possible in advance, with the peculiarities of the customers upon whom he is to call, and the nature of the country which he is to cover. Some jobbers have found it wise not only to put a salesman through this system of intensive training, but likewise to catechise him carefully before he goes out so as to be sure that he has learned his lesson well. The difference between the needed training for the salesman of a manufacturer and a jobber is one of degree and not of kind, since the manu- facturer's salesman rarely has so extensive a line to sell, and is consequently more of a spe- cial salesman. On the other hand, he usually covers a wider range of territory, but on the whole has not so many customers. CHAPTER III WORK ON THE ROAD Covering his territory Various merits of large and small routes Working his territory thoroughly Conserv- ing the salesman's time Exercise of patience and display of modesty invaluable aids. The first matter the salesman has to determine when he is out on the road is how he shall work his territory. Shall he travel fast or slow? Shall he hit the high spots and thus skimming along, get only the orders ready at hand? Or shall he milk his territory dry by going over it care- fully and endeavoring to get everything in sight? As usual there is no general answer as to the best policy, since much depends upon condi- tions and circumstances. If he has a very large territory, he must perforce travel faster than in a smaller territory. For it is as incumbent upon him to see the same trade just often enough as it is for him not to see it too frequently. His main intent and purpose should be to sell to every merchant in his territory as large a proportion of the goods in his particular line 17 i8 TRAVELING SALESMANSHIP as possible with due regard to the ability of each customer to pay his bills promptly. Most salesmen deceive themselves in this respect, and gain the impression that their customers buy proportionately more goods from them than is really the fact. It is a common occur- rence for a salesman to state that he sells such and such a customer fifty per cent or more of the goods that the said customer buys in his (the salesman's) line, when as a matter of fact the actual percentage may not be over ten to fifteen per cent. Any impartial observer who carefully inspects the stock of the average re- tailer and sees the large proportion coming from many different sources realizes how widely distributed are his purchases. This situation arises not only from the natural, human desire of the dealer to give orders to as many salesmen as possible, but often, likewise, from the undue haste and hurry of the salesman, who is desirous of getting through with each customer as quickly as possible in order to go on to the next one, that he may thus cover another lap in the end- less Marathon race over his territory. So he fails to estimate the true possibilities of sales to each particular customer. For selling goods, especially to the retail trade, is a matter requir- ing infinite patience as well as infinite tact. As WORK ON THE ROAD 19 a rule the salesmen who sell the largest amount of goods are those who sell each customer a large proportion of the goods he buys in the salesman's line. It is not enough that the salesman take the orders from the customer's want book the book containing the record of the goods the customer needs. He must go further and use the power of suggestion as to what he believes the customer may or will need, or some item of new goods to be added, or some line to be replenished which escaped the customer's eye, or the completion of some assortment, or nu- merous other suggestions that ingenuity, keen observation and business insight may suggest. All this takes time, much time in fact. It can- not be done successfully, in fact not at all, if the salesman is too much bent on catching the next train to the nearest town. The more goods the salesman sells to any customer, the more diffi- cult he makes it for his competitors to sell goods to that customer. Also, it is cheaper in many ways to sell large amounts to one customer than the same volume to many customers. Selling to each customer as many goods as he can well pay for is usually good policy and should be the ultimate ambition of most salesmen. But, of course, this plan has its limitations 20 TRAVELING SALESMANSHIP and is not always either feasible or practicable. Under certain conditions it may be better judg- ment and more profitable to go on to the next town, where there is a reasonable certainty of getting good orders, than to stay over where he is with the full knowledge that the few ad- ditional orders he will receive will not pay for the extra time thus spent. The salesman's route also may be so large and contain so many towns, many of them small ones, that he has Hobson's choice of either spending a compar- atively small period of time in each one, or else partly neglecting some of them, or else not "making" (visiting) them at all. The time at the disposal of the salesman, the arrangement of train schedules along his route, the pecul- iarities of his various customers, and the nature of the goods he sells, are all factors in determin- ing this question for him. Train schedules have to be carefully studied so that the best advantage of them may be taken to save time. The salesman often finds that like the old man cited in Ecclesiastes "he rises at the voice of the bird," to catch the early morning train, and likewise goes to bed with the owl on his arrivals at towns on late night trains in order that he may start work early the next morning. Sometimes when train schedules WORK ON THE ROAD 21 are not favorable, he can save time, and really save money, by hiring an automobile to go from one town to another. This latter recourse is the only way he can cover those "high-grass towns " off the railroad. Experience seems to indicate that the most successful plan, so far as selling a large volume of goods is concerned, is for the salesman to have a territory just large enough for him to cover completely and to allow him sufficient time to work each town thoroughly. This method, of course, applies better and more logically to thickly settled states where railroad facilities are good and where carriage or automobile trips to towns not on the railroad do not have to be resorted to often. Conversely in some of the sparsely settled districts of the West, where railroads are few, it is often found advantageous to have railroad territories and automobile territories covered by separate salesmen. The salesman soon finds that he needs all his tact and diplomacy to have his customers realize that his time is valuable, and that it can be best conserved by the customer talking busi- ness with him promptly, and either giving him an order or else telling him that there is "nothing doing." This is not an easy matter to compass, for it is about as difficult and futile an under- 22 TRAVELING SALESMANSHIP taking to hurry the retail dealer, especially in a small town, as it is to hustle the East, as Kip- ling puts it. The dealer in the small town lives in an atmosphere of quiet and of slow-moving events, and the nervous haste of the city-bred man usually irritates him when it does not excite his somewhat pitying though good-na- tured criticism. The desire of the traveling man to get through business quickly, not in- frequently appears to the customer as rather a reflection upon the importance of the business the salesman is conducting with him. The business in question is naturally of moment to the dealer and should be duly considered and thought over as is his wont in all similar trans- actions. The average dealer, however, has that usual good nature, which generally accompanies the man who lives far from the madding crowd's ignoble strife, and it is therefore the business of the salesman to have the dealer realize that the salesman's time is really valuable, especially because it is not his own time, but his firm's. Furthermore, the dealer is aiding the sales- man in making a success of his business by assisting him in conserving and economizing his time. So that the dealer's consideration is most helpful to the salesman, and does much to further his success. Of course the WORK ON THE ROAD 23 salesman must inevitably waste much time waiting for the dealer when the latter is serving customers. For the customers are apt to take their time, since making purchases is with them, especially if they be women, both an event and an adventure, and something not to be lightly entered upon, nor hastily carried through. Under such circumstances there is but one thing for the salesman to do, and that is to avoid altogether the least appearance of im- patience, no matter what are his inward feel- ings. For to exhibit such feeling would be fatal. He can put in the time, chatting with any clerk who may not be busy, and thus be making friends who may fulfill the second part of the little girl's definition of a lie, that "it was an abomination in the sight of the Lord, but an ever present help in time of trouble." For in time the getting of the good will of everyone in the store adds much to the chances of the salesman's procuring larger orders. On the other hand, the salesman may gain a knowledge of the dealer's stock and assortment by a not too obvious examination of the goods on the shelves. Or he may tactfully assist the dealer in making a sale to the customer whom the dealer is serving. In all such situations few things so befit the 24 TRAVELING SALESMANSHIP salesman and so advance his cause with the customer as modesty and patience. Modesty, which prevents him from over duly impressing his customer with the importance of his (the salesman's) time, and the patience which good- naturedly waits while his customer is busy with his own affairs. When, however, that relation, which every ambitious salesman aspires to, is finally reached in the course of time, namely, when there is com- plete understanding and mutual respect and regard between the salesman and the dealer, then it becomes much easier for the salesman to get the entire and ready cooperation of the dealer in all ways that tend to conserve the salesman's time. CHAPTER IV WORK ON THE ROAD Clerical work Importance of and best methods of handling Selection of samples Their use and ef- fectiveness Familiarity with and demonstration of them Disposition of shop-worn samples. The salesman traveling for a large jobbing house, carrying an extensive line of goods with a complete assortment, finds a large proportion of his time taken up in what seems to him unproductive clerical work. It appears unpro- ductive, and often is, because it does not appar- ently have any direct relation to the main busi- ness in hand that of selling goods. Many firms make the serious mistake of burdening their traveling men with work which should be han- dled in the house by clerks. In order to get the best results the salesman should be left as free as possible to devote his time to selling. Yet under the most favorable circumstances the traveling salesman finds much clerical work thrust upon him that cannot be neglected nor evaded. There are route sheets to be written up and sent in to his house, giving his addresses 25 26 TRAVELING SALESMANSHIP and stopping places for the next week or two. There are reports of claims that he has adjusted, or concerning which he reports progress. There are expense accounts to be filled in. Always there are letters from his firm on innumerable subjects, and many of these letters require answering. There are memoranda of orders taken during the day to be written up in proper form before being sent in. In passing, it must be remembered that the salesman saves himself and his firm much time and trouble by sending in his orders in such shape that they are en- tirely intelligible to those in the home firm who handle them, and can consequently get out the goods and ship them without the necessity of having to write or wire the salesman for further information or exercise their ingenuity in guess- ing what he means and what he wants. In making out his orders the salesman should leave nothing to the imagination of those in the firm who handle them. The name and address of the customer should be written so plainly that literally he who runs may read and understand. All terms, datings, cash discounts, freight al- lowances and the like, which form a part of the order, should be plainly stated. A large proportion of the misunderstandings which arise between the home firm and the WORK ON THE ROAD 27 customers are due to the failure or oversight of the salesman to state things plainly in his orders. All articles on his orders should have proper numbers, and descriptions should be exactly the same as used in the catalogue from which the salesman sells his goods. He must not over- look the fact that his orders are often got out by stock clerks who have not a thorough knowl- edge of the goods, and are not familiar with the various local or colloquial names of the goods, and consequently do not recognize these names when they see them and may errone- ously report the goods as out or short. All this and much more clerical work which the salesman cannot escape has to be done at night, or on the train, or during occasional spare moments during the day. Usually it has to be written out in long hand, since stenographers are not always available, nor are they always time-savers. The salesman usually finds that it is a mistake not to clean up each day's work as he goes along. Ragged ends postponed and carried over until the next day only get more frazzled, and once the salesman gets behind in his work it seems impossible for him to catch up. It is better to devote the necessary time to disposing of each day's work, even if it trench somewhat upon the night or be at the sacrifice 28 TRAVELING SALESMANSHIP of some pleasure. Constant, unceasing industry is one of the fundamental factors in successful salesmanship, and the lack of this essential quality cannot be supplied by the possession and practice of more engaging and brilliant qualities. In all clerical work there is much accom- plished by the simple practice of doing one thing at a time, and completing it before let- ting it go. It is probably the most effective method of accomplishing work, and the one least consistently followed. There are several short cuts and direct routes of arriving at re- sults, such as making answer on the same letter sheet that needs reply, using a pencil in place of a pen if more convenient, making letters as brief as possible, and never writing unneces- sary letters. Napoleon wisely said that most letters answer themselves in three weeks' time, but the firm usually expects discriminating cor- respondence from the salesman and prompt answers to inquiries. Although one of the most important elements of work on the road is carrying samples, unless proper use is made of them, they cost more than they earn. Some salesmen take out a line of samples, probably several trunks full of them, and leave them most of the time at their head- WORK ON THE ROAD 29 quarters, where they repose peacefully the trunks unopened and samples unused. The better plan for the salesman is to make his headquarters a depot for his sample trunks, and take out on his various trips such of them as are needed. Carrying samples is a very expensive practice when full use is not made of them by showing them and selling from them. There are excess baggage charges, tips to depot and hotel porters to insure prompt handling of the trunks, deteri- oration of the goods by constant exposure to dust and moisture, and the expense of sample rooms at the hotels. The number and amount of samples to be carried depends upon many things: the nature of the business, and the na- ture of the goods; the condition and character of the salesman's territory; and the general business conditions of the times. In lines of goods which change constantly according to the dictates of fashion it is practically necessary to carry samples of almost every article to be sold. In some other lines where a large propor- tion of the items have a long and honorable lineage, only comparatively few samples need to be shown. In most branches of business new goods should be generally sampled by the salesman, since very few experienced buyers 30 TRAVELING SALESMANSHIP care to purchase new items from photographs or descriptions, but prefer to see the real article. Buyers as a rule have that Missouri trend of mind that needs "to be shown." There are innumerable instances, also, where it proves the part of wisdom to carry samples of well- known and familiar goods. There is an innate desire in the mind of prac- tically every purchaser to see the article that he is buying. In some lines, dry goods and shoes for instance, almost everything is sold by samples. An attractive sample is practically the best selling and talking point that a sales- man can use. The more expensive and the more stylish the goods, the wiser and more necessary it is for the salesman to carry samples of them. This is equally true of all goods associated with outdoor sports, of all manner of luxuries and things of ornamentation, and of every kind of wearing apparel. One of the difficult problems which the trav- eling salesman encounters is to persuade cus- tomers to come to the hotel and inspect the samples. Some customers do not want to take the trouble, others dislike being away from their stores when it can be avoided, others are indifferent and, like the guests bidden to the wedding feast in the New Testament, with one WORK ON THE ROAD 31 accord begin to make excuses. There is another contingent who are loath to come because of well-founded fear on their part that, once see- ing samples, they will buy more goods than at first they really intended to. So when the cus- tomer will not or cannot come to the hotel to inspect the samples, it is incumbent upon the salesman to take his samples to the customer's store, as far as this is practicable. Sometimes this has to be done by taking an entire trunk or again it may be possible to get the customer to look over a few items of the more attractive articles which can be carried in a roll. A very experienced salesman once said that the successful use of samples consisted in "know- ing them and showing them." The salesman's talk to the customer about samples should con- tain first that elemental quality which news- paper men call a story. There should be inter- est to it and a point, not didactic at all, not too technical, and yet sufficiently so to indicate the salesman's mastery of his subject. As in Ham- let's adjuration to the players, the salesman should "speak his speech trippingly on the tongue," not as though learned by rote and recited, but with all the similitude of spon- taneity and of being purely extemporaneous. The principal point is a telling presentation 32 TRAVELING SALESMANSHIP of the merits of the goods. For it is the power of conviction, as well as the psychology of per- suasion which finally accomplishes the sale. Most necessary of all is it that the salesman believe his own story, else he will never get anywhere. In the long run he will fail to con- vince others unless he himself is first convinced. It is one of the wonders of this world that so many "four flushers" and fakirs make successes and get away with it. But it is not of record that they make successful salesmen in the same line of goods for any length of time. This is especially the case where the buyer is an ele- mental man in a small town and whose native instinct of perspicacity more than compensates for his lack of experience. He soon detects the lack of sincerity and discovers the pretense of the salesman. With the enthusiasm for his goods the salesman must mix such a measure of common sense and proportion as restrains him from claiming for his goods merits and excellencies which they do not possess; other- wise he hurts his own cause by exposing its weakness. The salesman must also be careful not to fall into the error of talking too much and too often about the merits of the goods he is selling. This can easily be done until it becomes weari- WORK ON THE ROAD 33 some to the customer. If constant repetition impresses us at first, it finally, when carried too far, becomes tiresome and loses its pristine effectiveness. The judgment and perception of the salesman must tell him where to stop and when to refrain. It is always a matter of concern with the salesman to dispose as economically as possible of such samples as he does not return to the firm to be refinished and put back into regular stock. It is generally better to sell such samples as have become shopworn, instead of returning them to the firm and expecting it to dispose of the goods. This can usually be done to some customer at a slight concession in price. The salesman should be very careful to keep his sample account checked up so that he can at any time show the firm what he has still in use, and what he has disposed of and accounted for. CHAPTER V CONTACT WITH CUSTOMERS Deference Respect Confidence Fear Independence Good feeling Avoiding arguments with customers Holding the customers' trade. The attitude of the young salesman making his first trip on the road is apt to be like unto that of Agag, v King of Amalekites, towards Samuel, the prophet of Israel, as related in the Book of Kings. Agag was a captive in Jeru- salem, and was bidden to come into the temple of Jehovah, where he found Samuel standing before the Altar with a drawn sword. And the veracious chronicle naively adds: "And Agag walked delicately before Samuel." The deference of the seller to the buyer is a business tradition and convention, though fad- ing somewhat and losing much of its force in a time which more clearly recognizes the mutual- ity of obligation between the two. A deference which descends to obsequiousness and truck- ling is always a serious mistake, since it appeals only to that comparatively small class of buyers, who like Bimi in Kipling's story, have too much 34 CONTACT WITH CUSTOMERS 35 ego in their cosmos, or in street parlance, suffer from an acute case of swelled head. Most men in their hearts despise a sycophant, however much their vanity may be flattered. It is always a mistake for a salesman to be afraid of his customer to the extent of allowing the fear of losing that customer's trade to influence him to the degree of departing from the correct principles and policies of his business. Trade got by such methods hangs by a slender thread, is usually short lived, and is always unsatisfac- tory to the salesman's firm as well as to the salesman himself. In order to obtain the con- fidence of his customer the salesman must first command his respect, and no buyer really re- spects a salesman who is "easy" and whom he can "work" without difficulty. It is a difficult matter for a salesman to travel over the same route for a number of years and not make some enemies and lose some good customers, often through no fault of his. Misunderstandings will arise between seller and buyer despite the utmost care and caution on the part of the salesman. There is always a certain percentage of unreasonable customers and of cranks whom few can please. Often the best and most effect- ive way of handling such customers is in coun- try parlance, to give them as good as they send, 36 TRAVELING SALESMANSHIP and to meet them on their own ground with frank, outspoken bluntness. Often this method gains and holds both their respect and their trade when an effort to conciliate and please them is of no avail. For it often happens that such cranks are sound at the core and more responsive to displays of courage and independ- ence than to ways of conciliation and truckling. Many years of observation and study make evident that the only salesmen who travel their territory for a long time and still hold their trade are those who command the respect and con- fidence of their customers. This is the bed-rock foundation principle of successful salesmanship. Shrewdness, knowledge of his business, keen- ness of intellect, low prices, and an attractive line of goods are of small avail in a salesman without that personality which inspires con- fidence in the man and his motives. This is especially the case in the South where goods are still sold more largely on personality than on any other factor. Lacking this, the salesman may as well "pack his doll rags and go home," so far as any hope of permanent success is con- cerned. The distinguishing mark of merit in a salesman in that section is that he "totes fair" with his customers. Doing this, he is their friend, always welcome, and it is apt to be his CONTACT WITH CUSTOMERS 37 own fault if he does not sell them goods indefi- nitely. As to winning this confidence, the way and means thereto, as expressed in the Prayer Book, is a long and consistent story. In the beginning of the salesman's career it is well to observe many little things. Neatness and cleanliness of appearance count for much, and can never safely be neglected, no matter how well the salesman may be acquainted with his customer. No matter how "sloppy" or careless a man may be in his own appearance, he does not approve of it in others. By the same token, neat appearance in the matter of dress should never be permitted to verge on display, showiness, or excess, for that indicates a vanity that the average customer dislikes even more than untidiness and neglect. The salesman should always keep his engage- ments with his customers to the minute, even though the customers be tardy or forgetful. If the salesman advises the customer by mail that he will call on a certain day he should not fail in this, or else he should later, but in advance of the appointment, advise the customer of his inability to do so. Some salesmen, in their desire to save time, telephone to a customer from a neighboring town to learn whether the customer has any 38 TRAVELING SALESMANSHIP orders and inquire if they shall call. Nine times out of ten the customers answer "no" on gen- eral principles, for they feel the implied slight that their trade is not of sufficient value for the salesman to come after it. A traveler has to know his customer very well and for a long time to venture on anything of this nature. Even then it is not safe to do it often. It is always well to avoid argument with a customer, as far as possible, particularly on outside topics of the day, such as religion and politics. Arguments of this sort usually get nowhere and are apt to lead to controversy and to cause bad feeling. This does not mean that the salesman shall be a spineless creature with- out the courage of his convictions, or that he shall fail to stand by his guns when occasion demands. Rather that he use such tact and diplomacy as make evident his desire to avoid unprofitable or vexatious discussion, while in no way seeking to conceal his real convictions. It often requires genuine tact to express an honest difference of opinion and still avoid a wordy and futile discussion. How possible it is to do this under trying circumstances was well illustrated in the Presidential campaign of 1896 in this country. A salesman for a large jobber in the Central West was a strong Gold CONTACT WITH CUSTOMERS 39 Standard man, being so by much study and reflection. He traveled in the Free Silver State of Nebraska at a time when political differences of opinion on the financial question of the day aroused bitter, personal animosities. Yet he went through the entire campaign selling goods as usual, with rare tact and discretion and never lost a customer. He accomplished this very delicate and difficult task by the simple process of never allowing himself to be drawn into an argument nor entangled in a controversy on the subject which then was largely absorbing the thought and attention of the country. When with customers whose views differed from his, he confined his conversation solely to business or to topics which did not invite differences of opinion. It is invariably a blunder for a salesman to abuse his competitors or to speak slightingly of them and their wares. It instinctively arouses opposition in the customer, is usually ascribed to envy and jealousy on the part of the salesman and generally results to the benefit of the competitor. Such abuse invariably ex- cites the suspicion, whether in selling goods or any other phase of life, that the one doing the attacking, as Shakespeare says, "like a drab, unpacks his heart with words," because of 40 TRAVELING SALESMANSHIP sheer spite and rancor. More than one can- didate for President of the United States has spoiled his chance by violating the elemental rule of salesmanship which requires that you speak well and courteously of your competitor as far as a conformity with the truth permits. It is both wise and politic to avoid the sub- ject of competitors and their goods as far as possible. Entertaining customers is like unto self- decapitation described by Koko in the "The Mikado," as a delicate and difficult operation. It is perfectly true that most men like being entertained, and often expect it. Yet there are those who resent it, especially from a new and unknown salesman, as being a reflection on their independence of action, and a covert and insidious method of winning their favor and attempting to influence their judgment in buy- ing. It is seldom wise to attempt anything of this nature until after a long acquaintance and friendship and at times when it can be tendered merely as a natural courtesy without any further thought than that of cementing friendship. Everything depends upon the manner in which the entertainment is offered. It should be done simply as a natural expression of good will and a desire for a chat and intercourse. It is always CONTACT WITH CUSTOMERS 41 an advantage to get a customer away from his business surroundings when he has on the ar- mor of professional conventions and is con- stantly disturbed and harried. Thus in quiet and sociability the real man may be got at, and some common ground of sympathy and understanding be reached. As salesmanship is largely a study of applied psychology, it is essential that the salesman get an intelligent idea of the buyer's point of view, and find some congenial trait or interest. Often the apparently most ordinary and com- monplace man has some subject which excites his serious interest, and of which he has much first-hand knowledge. This is well illustrated by the example of a retail hardware dealer in a small town in Mississippi, who through sheer force of much deep reflection obtained not only a clear comprehension of the many economic and social problems forced upon the South by the invasion of the cotton boll weevil, the drain- ing of swamp lands, and the consequent destruc- tion of the malaria-bearing mosquito, and the freeing of the South from the Texas cattle tick, but likewise an equally intelligent understand- ing of the results which were likely to arise in the future out of these causes. The salesmen who appreciated the quality and trend of thought 42 TRAVELING SALESMANSHIP of this dealer were likely to get nearer to him in all business ways than the superficial trav- eler to whom such matters were of no concern. There can be no formula or rule in dealing with customers. Human nature is too diverse for that, and each customer possesses a personal uniqueness and is a study by himself. Among buyers, as among men in all callings, there are perverse and contrary specimens of humanity. Some few delight in misusing the advantage which the buyer naturally possesses, and many use it for devious purposes and sharp practices. Others are prone to exercise the little brief power which their position gives them in ways which make the salesman uncomfortable. These men have to be treated according to their mer- its or demerits as the case may be. Sometimes patience and good nature win their trade if not their good will. Sometimes a firm, decided stand, accompanied by a declaration of inde- pendence is necessary. It is usually a fatal mistake for the salesman to borrow money of his customers, save in an emergency. It generally makes an unfavorable impression, and is a bad habit easily acquired and not so easily broken. It gives the customers a low estimate not only of the salesman, but also of the firm he represents. For the salesman CONTACT WITH CUSTOMERS 43 should never forget that the customer measures the firm by its representatives. The customer assumes that the firm does not knowingly and consciously engage a man to represent them on the road in whom they do not have confidence and whom they do not indorse. Consequently many dealers, if they do not like a salesman, refuse to trade with the house. The author knows of a retail dealer who ceased dealing for several years with a firm because its salesman spit tobacco juice on his new maplewood floor. This was an ex- treme instance, but well illustrates an elemental truth. This instinctive feeling of the dealer finds expression in another marked manner. One of the most unfortunate things that a busi- ness house can do is constantly to keep chang- ing salesmen on a route. Inevitably the dealers come to the conclusion that there must be some- thing wrong with a firm which cannot hold its employees. Evidently it either does not know how to treat them or else is a poor judge of men and chooses only inefficient representatives. It is true that salesmen often delude them- selves as to the amount of business which they "own," as is the phrase, and which they believe they take with them to any house which em- ploys them. They soon discover that one of 44 TRAVELING SALESMANSHIP the strong elements in every successful organ- ization is its standing with its customers, and this good will of the customers towards the house is one of the chief reasons why the sales- men sell goods so easily and so readily. Yet it is equally true in the last analysis, no matter how strong a firm is and how well equipped, that it cannot sell goods to its full advantage and capacity unless it be represented on the road by capable salesmen. One modern in- stance will illustrate this. In a large city on the Missouri River there were two jobbing houses very dissimilar in their character. One was progressive, with a large line of goods and a complete assortment. The smaller house was rather staid and slow, with a smaller line and much inferior assortment. Yet in a territory immediately adjoining the city the smaller house sold twice as many goods on a certain route because their salesman was far more competent than the representative of the larger house. As has been well expressed by one of the most successful business men of the day, as well as one of the best judges of salesmen, "It's all in the man." CHAPTER VI COMPETITION AND PRICES Friendly relations with competitors Studying their methods Personality as a selling asset Advantage of being connected with a good house Methods of meeting competition. The hardest problem a salesman has to solve is how to meet the endless and sleepless com- petition which confronts him at every turn. It is a continuous performance, with compet- itors who seek to get the trade which he has, to outwit him in every way, and to make lower prices than he makes. There is a true saying among traveling men that it is easier to get trade than it is to hold it, and that the most difficult task of all is to get back trade that you have lost. Nowadays, competition is usually open and above board, and the rules and ethics of the game are generally well observed. Also, as in football, you are apt to be on good terms with your opponents and competitors, but none the less you are engaged in a contest, and rejoice 45 46 TRAVELING SALESMANSHIP when you win, even though the element of personal feeling be largely absent. The best modern practice is to be friendly with the traveling salesmen of competing houses, though not to the extent of injudiciously be- traying business secrets or telling too much about your own affairs or those of your concern. The annals of traveling salesmen are full of good turns and kindnesses done by one com- petitor to another, especially in the way of one salesman getting a good position for a compet- ing salesman whose ability and character he has learned to respect. One of the necessary adjuncts of salesman- ship is observing closely the work of compet- itors. First, there is the study of the ways of an opponent, as in the game of chess, that you may know the answering move, and may learn both the skill and the weakness he displays. A very observing salesman traveling on the Pacific Coast had a competitor who gave him a hard time. This competitor had every qual- ity of a good salesman except industry. Like the sloth, he turned to slumber in the morning and broke engagements for early hours. Now hard work was the "long suit" of the first sales- man. With quick perception he at once saw his opportunity. If the first salesman failed COMPETITION AND PRICES 47 to show up early, the industrious traveler was on hajid ready to take orders. He was tactful enough never to refer to his competitor save in complimentary terms regarding those fine and salesmanlike qualities which the other man undeniably possessed. Often the provoked and irritated dealer gave the order intended for the absent salesman to the man who showed enough appreciation of the dealer's business to be on hand working for it. Thus, in the begin- ning of his career, the industrious traveler learned the invaluable lesson that day and night must be alike to the salesman who would succeed, and that quiet persistence and cease- less industry win most desirable things in this world, all the way from orders for goods up to wives. On the other hand, the story of the lazy though brilliant salesman was that of a gradual loss of business and a steady slipping in his hold upon the trade. Then again, the salesman should have his competitor "sized up" because often his firm needs a new salesman, and he can recommend some one from his competitors who is ambitious for a better route or a better salary and this may be a benefit to his firm as well as to the other man. These opportunities occur con- stantly, for many traveling salesmen are a peri- 48 TRAVELING SALESMANSHIP patetic lot, and change frequently. One potent reason for this is that the results of the travel- ing salesman's work are always in evidence, more so in fact than in any other positions in commercial life. His sales, expenses, and prof- its are matters of record that cannot be con- cealed, nor can they well be explained away, when the net results are unsatisfactory. Stated baldly, the salesman must either "de- liver the goods" or seek a new job, though often enough he may be the victim of misfortune or represent a house which fails to back him up. So among traveling salesmen, there is a certain proportion who in their time travel for many houses, either because they are ambitious and seek to make better connections, or because they do not like their jobs and consequently do not understand them, or because they fail to get with the right and congenial house, or else they lack industry, or tact, or knowledge of human nature or some other indispensable element of salesmanship, or because of some incurable habit or fault which entirely mars their business career. Then there is the competition of the traveler representing a better house than the one you are with. The other man's house may have a superior line of goods and more complete assort- COMPETITION AND PRICES 49 ment. It fills its orders more completely and makes prompter shipments. It treats its cus- tomers liberally. Its prices average lower than yours, so you are put to your "stumps" to offer reasons why dealers should buy goods of you. This is the problem that confronts many sales- men and it is not easy of solution. The only answer that avails is the personality of the salesman, and the efficient manner in which he prosecutes his business, in spite of undeniable handicaps. The very existence of these handi- caps, however, only emphasizes the advantages which a salesman possesses who travels for a house who makes it easier for him by the serv- ice it gives its customers and by backing him up in all his efforts. Likewise it renders it easier for him to meet competition from other quarters. One salesman traveling for a good house on his initial trip in the Far West, conscious of his own inexperience and his own lack of knowl- edge of the business, in a most frank and alto- gether manly way told the dealers that this was his chance to make good, that his only art in the severe competition he encountered was to ask them to encourage him by an order. That if he got through his first trip success- fully he would have no trouble hereafter and So TRAVELING SALESMANSHIP those who befriended him by giving him busi- ness would never have occasion to regret it. His appeal "went," and to-day after many years, he is still traveling in that same terri- tory. One of the severest forms of competition the regular salesman encounters is from the " spe- cial" salesman selling a limited line of goods, and who has an undeniable prestige because of the superior and intensive knowledge of his goods which he is supposed to possess, since his efforts and study are centered on a com- paratively few articles, whereas the regular salesman has to spread knowledge over a vast line. The only reply, of course, is for the regular salesman to become thoroughly saturated and familiar with the part of his own line similar to that handled by the special man. As Pooh Bah says in the Mikado, "I have known it done," and done very successfully. In such cases the regular salesman has the great advan- tage of special inducements in other parts of his line as reasons for the purchase of the com- petitive goods and thus combats the limited repertoire of the special man. Yet it must be confessed that the natural tendency of the aver- age traveling man is to follow the line of least COMPETITION AND PRICES 51 resistance and leave the field largely to the special man. Sometimes the special man has a better and more complete line and lower prices. But often the inability of the regular man is due not to the weakness of his line, but to his lack of industry and application in attaining familiarity with his own goods that he may present them with the same confidence and the assurance that distinguishes the special salesman. Every line of business has certain goods, such, for instance, as fine dress goods in the dry goods trade, whose apparent complexity deter the average salesman from mastering their seeming intricacies and thus making him a foe- man worthy of the well-posted special man. What the regular salesman thus loses is not only much business that he would otherwise get, but likewise the profound gratification and education which come from the mastery of a knotty subject, whose difficulties are conquered by earnest and persistent study. The average salesman is apt to underrate the nature and strength of his competition. It is a fatal de- lusion. For it breeds that over-confidence which causes one to go "to sleep at the switch." Not long ago there traveled in the South- west a salesman for a small manufacturer in 52 TRAVELING SALESMANSHIP the Central West, and whose annual sales were out of all proportion to the size of his concern. He was an adept at keeping his own counsel, and never made the fatal mistake of boasting of the amount of his sales. Like most travel- ing salesmen he talked the usual patter about business being good, but it was always in glit- tering generalities and never any reference to his own achievements. His competition largely went unnoticed by the salesmen of the larger manufacturers in his line, which was just what he planned, for he was left alone as being merely small game, and entitled to such pickings as he might secure. One of the most difficult forms of competition is from a salesman whose firm gives good service in the way of prompt shipments, orders filled complete, and quick deliveries. It is the hardest of all competition, requiring the utmost in- genuity and skill to overcome. It is a com- petition often characteristic of a well-organized and well-managed concern. There was a salesman traveling in the Far Northwest for a firm, such as that spoken of, over 2,500 miles east of his territory. It took from three to four weeks for goods shipped from his house to reach his customers. Mean- while, he was hemmed in by local competitors COMPETITION AND PRICES 53 who made deliveries in from three to four days. Yet, he had a large and growing business. He was eminently resourceful and presented the arguments of an unequaled line both in scope and variety of everything that any dealer could want or need, of broad and liberal treatment of his customers by his firm who backed him up in all his statements and all his agreements, of the very best goods and the best assortment in his branch of business. He had his customers realize that by his competition he was a stabil- izing force in prices, and prevented local com- petitors from taking advantage of any emer- gency to exact unduly high prices, also he had an unlimited supply of goods in times of local scar- city. He persuaded his customers that it was to their mutual advantage to combine their pur- chases from him and enable him to ship "col- lective cars," thus securing lower freight rates and less time in transit than if shipped in less than car loads, and he used the collective car method to bill to his customers the goods of luxury and high quality at reasonable prices. He made the argument that thus every dealer on his territory had access to a great market for all the goods in his line, and thus avoided the fate of some sections away from great central markets that though buying staple goods cheap, 54 TRAVELING SALESMANSHIP yet they had to pay unduly high prices for less staple and less well-known articles. The very necessities of the situation brought out all the ingenuity and resourcefulness of the salesmanship in him and from the Nettle Neces- sity he plucked the Flower Success. CHAPTER VII COMPETITION AND PRICES Competition and prices Price only one of the factors in selling Service and the human equation Quality a more enduring element than price Differing methods of selling Need of traveling salesmen "Baits" and their purpose Declining prices and their effect upon buying. The problem of prices is that of a troubled sea, ever moving, ever changing, with eddies, and cross currents, so that any scientific and certain diagnosis of the situation is, from the very nature of the case, quite impossible. There are many factors which enter into sales; ease, propin- quity, price, service, and the human equation. And the greatest of these are service and the hu- man equation. It is an economic dictum that the natural instinct of the average person is to buy in the cheapest and to sell in the dearest market. Whatever may be the abstract truth of this statement, it is very certain as a matter of ex- perience, that in daily life its effect is so pro- foundly modified by those other factors of which I speak, that price is not the principal factor 55 56 TRAVELING SALESMANSHIP in making sales, and frequently is entirely over- borne by other influences. One has only to use common sense and observation to establish the truth of this statement. In our own individual experience we purchase constantly from those dealers who are conveniently located near us, or whom we like, or from whom we receive satisfactory service. Even in the case of the woman shopper, who is keen for bargains, the personal element and the quality of service are apt to be determining factors in her choice of purchases. A most striking instance is afforded by the great cities where large department stores are enabled by good management and great buying power, because of the large volume of their purchases, to offer low figures to the gen- eral public. Yet, in such great cities, often in the shadow of these great department stores, there are hundreds and thousands of small shops which make money or a living and rarely, if ever, on the basis of low prices. Quite a proportion of buying is merely for- tuitous. Purchasers drop in at certain shops because it is convenient to do so, or because they are passing by. Other buying is a matter of habit, especially if the human equation of the shopkeeper or his clerks enters into the transaction after a pleasant fashion. COMPETITION AND PRICES 57 Even more compelling are the questions of service and quality which are coming more and more to be recognized as the determining factors both in obtaining and holding trade. There is a homely saying that "the proof of the pud- ding is in the eating." So in every phase of commercial life the story of experience is that the permanently successful organizations are those which combine quality of product with good service in distribution and in the general treatment of their customers. It is an interest- ing fact that neither in manufacturing nor dis- tribution has there ever been more than an occasional instance of other than a temporary success of the organization whose principal bid for trade was that of low prices. The solu- tion of the problem of prices lies in that instinct of human nature which desires always to get its money's worth, which realizes that those who habitually sell goods cheap are apt to sell cheap goods. No goods habitually sold cheap give satisfaction on the whole. And the summing up of the situation is found in the saying of a very wise business man of much experience, that "the recollection of quality remains long after the price is forgotten." The business of the concern that rests upon low prices is built upon the sand, while that of 58 TRAVELING SALESMANSHIP the house which relies upon quality and serv- ice has its foundations on a rock, and it alone can endure the stress and trials of changing time and fortunes. If goods could be sold prin- cipally on price, it is obvious that there would be no need for the salesman and that all that would be necessary would be quotations through the mail with tempting low prices. This method of selling is much in vogue in some sections and apparently is growing. Yet it is equally of note that the traveling salesmen are still the chief means of selling in by far the greater part of the manufacturing and distributing world of commerce. The former method, that of selling largely by price, sets forth the importance of price as a factor; while the latter method, that of the traveling salesman, emphasizes the inherent and inalienable value of the human equation and the call that merit and quality must always make upon the buyer. Moreover, there are long lines of goods, which can be sold adequately and ef- fectively only through the medium of the travel- ing salesman. Such goods are largely those of quality and merit which depend upon the per- sonal exposition of their attractiveness or their merit where it is such that it cannot be con- veyed by the printed page, nor by photographs nor by any graphic representation of the article. COMPETITION AND PRICES 59 Moreover, in every phase of human life there are certain results which can be attained in their perfection and completeness only by the human equation, while on the other hand, sys- tem, method, and every form of machinery fail of the ultimate purpose sought to be at- tained. It is upon this eternal and inherent fact of every phase of human life that the sales- man must rest his cause and give reason for the faith that is in him. There are many things in life that seem logical but are not so. Hence, it is that commercial history contradicts the alleged super-importance of price as the prime factor in making sales. The matter of bargain prices, as often exem- plified in the history of the department stores in large cities, has some analogy to the same methods sometimes used by traveling salesmen, as incidental divertisements rather than the main theme. They are familiarly known to the trade as "baits," and are estimated and ranked accordingly; so much so that they are not the sign manual nor the custom of the experienced salesman, who knows that the road to success does not lie that way. Moreover, the shrewd buyer purchases only the low-priced bargains and does not allow the salesman to recoup himself by selling the buyer more expensive 60 TRAVELING SALESMANSHIP and more profitable goods at regular market figures. One of the sidelights on prices and one of the paradoxical happenings in commercial history is that declining prices almost invariably exer- cise a strong deterrent effect upon buying, and the lower prices go, the more purchases are cur- tailed, until at the bottom buying is strictly from hand to mouth, and is confined almost entirely to absolute necessities. This was strik- ingly and succinctly shown in the long commer- cial depression from 1893 to 1896 when prices of commodities were the lowest recorded in the history of the country and the business of buy- ing and selling was almost at a standstill. The explanation and the psychology are simple enough. The buyer fears that prices once started downward will continually decline, and believes that by waiting he will secure lower figures. But in the mass he never realizes when the bottom has been reached but anticipates still lower figures. Contrariwise, in a rising market, the natural instinct of the buyer is to purchase eagerly and liberally lest the oppor- tunity pass quickly away, and he perforce be compelled to pay higher prices. So by the same token he never realizes when the top has been reached, and goes on buying without rhyme or COMPETITION AND PRICES 61 reason. Much truer than the economic dictum as to the tendency of the individual to buy in the cheapest and sell in the dearest market is the Wall Street jibe that the shorn lamb, who wan- ders into the Street, and finds no tempering wind, always buys at the top of the stock mar- ket, and sells at the bottom. There is one phase of prices concerning which there is much general misconception and mis- understanding, and both are largely reflected in books on economics. It is the statement, appar- ently logical, that there is much wasteful and expensive effort because of many and diffused methods of production especially manufactur- ing and distribution, when the same effort in concentrated form would result in great econ- omies, both in production and distribution, with consequent lowering of prices to the general consuming public on the articles thus affected. This is one of those many instances of appar- ently logical and unanswerable reasoning on paper which proves entirely fallacious in actual experience. This was very definitely illustrated in the early years of the present century when the great consolidations in some large and im- portant manufacturing lines took place as one of the indirect results of the Spanish-American war. It was conclusively shown at that time 62 TRAVELING SALESMANSHIP on paper that such consolidation would re- sult in many economies because of the elimina- tion of much useless and expensive duplication of work, and the concentration of all major activities under one central control. It was argued, for instance, that the number of offices would be reduced, there would be fewer travel- ing men, fewer employees, and there would be in practice all those economies which go with unified control. It was held out as one of the prime reasons for these consolidations that the general pur- chasing and consuming public would receive the benefit of these economies in lower prices of the manufactured articles so affected and in con- sequently lower costs of living. What actually happened was in direct contradiction to all these promises and prophecies. Expenses in- creased, because of the very size of the con- solidations and the impossibility of successfully controlling all the avenues of expenditures. Besides, additional expenses, foreign to the small manufacturing concerns, became a natural and apparently inescapable part of the consolida- tions. They essayed and undertook many new functions which had no direct connection with their original purpose of manufacturing, and all of them cost much money. The net result COMPETITION AND PRICES 63 was an increase in the cost of the manufactured articles to the general public, and the very com- plete demonstration that free and unrestricted competition with the opportunity for that in- dividual initiative, which is so distinctly a part of our nation, is the surest factor in insuring reasonable prices and good service to the gen- eral public. After all, Wisdom is justified of her children, and Experience has demonstrated that the con- trol and monopoly of any article invariably results in higher prices and poorer service to the consumer. The traveling salesmen are the best proof to dealers that competition is in reality the life of trade in not only keeping down excessive prices, but most of all in insuring good service. The very business existence of the salesman depends upon the service he renders his custom- ers. For at every town he encounters the keen- est competition from others of his tribe, so that the spur of necessity, the greatest of all incen- tives to action, is ever with him as a cause for constant and unremitting effort. Much of the apparent duplification of effort, such as the calling of a dozen salesmen in one line of busi- ness upon the dealer, is offset by the benefit to the dealers in reasonable prices, but more es- 64 TRAVELING SALESMANSHIP pecially in good service, both of which factors would be largely modified were much of this keen and ceaseless competition eliminated. STABILIZING PRICES There is always a great deal of current and absolutely theoretic discussion in the daily papers and in the magazines as to the wisdom and the necessity of stabilizing prices. By which seems to be meant there should be some kind of stability free from fluctuations in the prices of a great many staple articles, notably those of food products. It is a vain delusion. We might as well talk of stabilizing the tides. What is really needed is that there be free and unrestricted play of the natural laws of supply and demand that prices may fluctuate accord- ingly. Evils that arise in the changes of prices are largely brought about by arbitrary regu- lation by the Government or other artificial interference and by the constant attempt of human agencies, usually in combinations, to depress or elevate prices of certain articles which they seek to control solely in their own interest. An illustration of the daily evils of selfish control and manipulation is found in the gam- bling on margins in the stock markets and in the grain pits of the country. They are serious COMPETITION AND PRICES 65 economic and social evils despite the fallacious, untenable excuses offered in explanation of this practice. It is a curious instinct in human na- ture, when engaged in questionable proceedings or even in proceedings that are distinctly wrong, that they invariably offer some other reason and excuse than the real one, which is merely that of selfish gain. At one period in our history, not so long ago, the evils of associations which sought to control prices became so apparent that they were legis- lated against by what are known as anti-trust laws. This legal procedure, however, illus- trates in a very singular and significant manner that it is impossible to interfere with the nat- ural play of the laws of supply and demand, no matter how urgent and necessary the situa- tion nor how commendable the motive, without creating trouble and paying the inevitable price of such interference. In other words, in every phase of interference with natural laws one evil simply produces another. Usually com- binations in the beginning seek to control prices for their own benefit and in defiance of public weal. The restraint of the law is then imposed upon such actions with the result that an entirely well-meaning business finds itself hampered 66 TRAVELING SALESMANSHIP and restrained in its natural course. This is again illustrated in the Government control in relation to the price of food products during the recent European War. The short harvest of wheat in 1917 precipi- tated a grave crisis. It was necessary for this country to produce food in great abundance for the needs of the Allies in order that the war might be won. Because of this extraordinary demand from abroad and because of reduced supply in 1917 there was every prospect, in fact every certainty, that the price of wheat would reach abnormal figures with consequent great social unrest, not only in this country but abroad. The Government, therefore, fixed the price which seemed fair, both to the producer and consumer, stabilizing the otherwise wild speculation in food products. This fixed price continued into 1918 and the Government guar- anteed the prices of the crop of 1919 in wheat, as no ending of the war seemed likely in the near future and the demand for wheat showed no diminution. When peace came, in November, 1918, there immediately ensued an instantaneous change in the situation and it became apparent at once that since the Government promise, as to the fixed price of wheat to the farmer, must be made good until the first of June, 1920, the COMPETITION AND PRICES 67 consumers of this country were facing an enor- mous and unprecedented loss because of the price they must pay to the farmer for his wheat crop a price far above the market price of wheat as indicated by other wheat exporting countries. An attempt to regulate prices according to human needs by human theories is thus always accompanied by disturbance to the ways of business, so that the real problem consists merely in such government or other artificial regulation and control as shall prevent the manipulations and operations of human greed and shall simply allow the laws of supply and demand free and unrestricted play. CHAPTER VIII COMPETITION AND PRICES CONCLUDED The salesman's part in sustaining prices Cooperation with his concern Necessity of salesman making satisfactory profits Example of salesman selling profitably Its good effect upon the customer Bar- gain sales Economic aspect of high prices. It will be seen by the previous chapter, there- fore, that the salesman's part in the mainte- nance of prices is a far-reaching one in which the genius and spirit of salesmanship has the great- est scope for action very early in his career. The salesman must have the courage of his con- victions and ask his prices as though he expected to get them and not as mere offers for barter and compromise. The purpose of selling is not mere volume, but rather profit, for it is small advantage to sell many goods unless they show satisfactory remunerative returns. In the last analysis, the test of salesmanship is selling goods at a satisfactory profit, for any tyro can dispose of them at losing figures. There are two salient facts which the sales- man must always bear in mind. The first is to 68 COMPETITION AND PRICES 69 cooperate with his concern and be guided by its policy in the prices he makes. The most successful houses suit their action on prices of certain staple lines to conditions. In eras of prosperity when prices are advancing they hold their salesmen strictly to the prices given in their catalogues or price lists, since in such times the demand is so great that the principal con- cern of the buyer is to get goods rather than vainly endeavor to obtain lower figures. In general, however, the policy of such houses is to exact from every salesman that he show a satisfactory profit on his sales or else his serv- ices are of no value. The salesmen who drift from one house to another in service, usually in a descending scale, are, as a rule, those who fail in the first essential of their calling, that of making a satisfactory profit for their house and consequently for themselves. One of the best teachers of salesmen in this country, im- pressed upon his men that they owed themselves and their families this primal duty of making a profit on their sales in which not only the firm but the salesman and those dependent upon him would share. Failing in this, there was only one sure fate he could expect: to face the future with decreasing earning powers and the consciousness that he had thrown away golden 70 TRAVELING SALESMANSHIP opportunities because of lack of foresight and courage. For it is only by sustained courage and determination that the salesman can make a success of his calling. The instinct and conscious purpose of the buyer is always to obtain a better figure, and thus an advantage; while the business and aim of the seller is to resist as best he can this cease- less pressure which tends to reduce the level of prices and thus of profits. Like modern war- fare it is a contest where the natural advantage rests with the offense rather than the defense. From time immemorial the attitude of the buyer is often that of a plea of necessity that he must have lower prices or else be unable to meet the competition of other dealers who evidently have the figures he asks for, or they would not be able to make the prices which seem habitual with them. Or, as expressed in the Book of Proverbs: "It is naught, it is naught," saith the buyer, "and when he goeth his way he boasteth. " The tendency of the salesman is to yield here and there until great gaps have been torn in his line. It is then that he needs to remember the second great salient fact of his calling and that is that not only his job but his future depends upon his upholding his margin in such fashion as COMPETITION AND PRICES 71 shall be satisfactory to his firm and profitable to himself, for nowadays most traveling sales- men in some way and to some degree share in the profits they make for their house. There are many methods by which the buyer seeks to obtain lower prices than the salesman offers. Not often by deliberate falsification nor by sharp practices, which in effect are deception, and which are becoming more and more dis- credited in the business world, though often the buyer is himself honestly in error as to figures he can obtain from others, and which he expects the salesman to meet. There are a large number of instances of these alleged low prices, which are merely mistakes or half-truths. The average man is more or less superficial, taking much for granted, and rarely getting to the bottom of things. Investi- gation often reveals many modifying or even entirely different conditions which completely alter the original statement. The price quoted may be for a quantity which the buyer was un- able to reach, or it may be an old quotation which has been withdrawn, or it may be for an article other than that mentioned by the buyer; or perhaps it was a palpable mistake, or any one of a dozen other things, which entirely change the situation. As regards attempts on 72 TRAVELING SALESMANSHIP the part of the buyer to deceive, it may be said while the old Adam remains in human nature that sharp practices will always prevail in some phases of business, but the ethics of buying and selling are on a much higher level than those which were prevalent a quarter of a century ago, and this is true likewise of business prac- tices in general. One of the methods used by buyers is to maintain an impenetrable silence so that the salesman's imagination depicts a much lower price than the buyer really possesses and in the end he is simply bidding against himself when as a matter of fact his own price may have been the lowest that the buyer really possessed. There are ways of conveying wrong impressions without actually making false state- ments, akin to the shrug of shoulder, spoken of in Hamlet, and the giving out of ambiguous phrases as "I might if I could or I would," and the like, intended to create- the belief in the mind of the seller as to certain information possessed by the buyer about prices, which he cannot divulge, but concerning which the sales- man can easily draw his own inference. There are times also when the buyer frankly discloses to the salesman prices which he has from sales- men of other firms, giving ocular evidence in the shape of invoices from these same firms or COMPETITION AND PRICES 73 orders placed with them. He may even tell the salesman that these evidences of low prices are shown only to him as a proof of the confidence the buyer has in this particular salesman. There are occasional instances where this is really true, but in general it is a dangerous and often a fatal mistake for the salesman to credit such statements, even though his vanity may lead him to do so. It is usually well to remember that a buyer who betrays the prices of one sales- man is likely to follow the same practice with other salesmen, and that there is a homely saying among hunters, that "a dog who will fetch, will also carry." How the salesman is to meet and combat the various methods cited in preceding pages is practically a study of human nature. He must know his man and how far he may go and what he can say in the discussion of the subject. There are those among his customers whose veracity and accuracy of statement are entirely dependable. To doubt their word, or even to ask for proof, may be very poor policy. There are others whom he can frankly ask for facts, that he may be sure that there is no mistake. While the salesman in general should keep posted as to what his competitors are doing, there is a danger point in this soon reached 74 TRAVELING SALESMANSHIP where he allows such information unduly to influence his own prices, until he becomes that unsuccessful salesman of whom there is a famil- iar saying in the trade, that "he knows too much about his competitors' prices." The business of the buyer is to purchase as cheaply as he can, as a general proposition, and he is justified in using all legitimate means to that end. The ultimate and inevitable effect upon the salesman who is too much influenced by prices his competitors make is gradually to reduce the level of his selling prices, and to im- bue him with the feeling that his prices are not right in those lines which he does not sell readily. One of the hardest tests a salesman has to face is that of an order offered him at a certain price, which he must accept if he is to receive the order. In other words, he can take it or leave it. Few .arguments are more potent in securing low prices than an actual order which speaks for itself in a most persuasive manner. It takes both courage and resolution in a salesman to refuse an order, even though he knows it will have to be taken at a loss, or that it means making lower prices than he consistently should and for which there is probably no real neces- sity. He is also apt to delude himself by think- ing that by accepting this order he opens up COMPETITION AND PRICES 75 the way to further business at regular prices. There are times when this is so, and when it pays to start in thus with some concern to which he has never sold at all or only in a small way. But oftener it is a confession of weakness and gives the buyer the impression of the salesman being easy, so that he will endeavor to repeat the same experiment at the first subsequent opportunity. It is often merely a trap laid for the salesman and which should be spread in his sight in vain. Against these and innumerable other tempta- tions to scale down his prices the salesman must oppose not only resolution but intelligent meth- ods. He must refuse orders constantly for goods which are clearly unprofitable and the taking of which does not help him in any other way. He should in general expect to be right in his prices that is, be in position to meet legiti- mate competition on staple items, but his constant purpose must be to maintain a satis- factory profit on his sales on the whole, or else some day he will find himself in dire distress. There are many ways of achieving his pur- pose. One is to always bear in mind the curi- ous fact that often the easiest goods to sell are those on which he has fixed prices and conse- quently no leeway. On such goods the buyers 76 TRAVELING SALESMANSHIP soon find that arguments are of no avail in ob- taining lower figures and so accept the situa- tion. This is especially true of patented and trade-marked articles and of special brand goods. One obvious reason for the easy sale of such goods is the confidence the salesman feels in asking their prices as he knows he will get them and that there is no real argument why he should take less. Another notable way whereby the salesman may maintain his percentage of profit and still keep up his volume of sales is by demonstrating to his customer that his the customer's interest lies principally in buying those goods which bear a good profit. This is well illustrated by the experienced dry goods salesman who displays his line of shirts, and, with rare good judgment and tact, instead of first showing the cheaper and more staple num- bers, which the customer would probably buy in any case, proceeds to call attention to the higher priced and higher grade numbers, dilating upon the material of which they are made, the workmanship, and the style. He first shows a shirt for $72.00 per dozen, speaks of the de- mand there is for such an article among those of good taste and wealth, calls the attention of the dealer to the fact that the shirt can easily be retailed for $10.00 each, thus showing a COMPETITION AND PRICES 77 handsome profit of $4.00 each or forty per cent on the selling price. Also how much more it shall profit the dealer both in the way of money made and satisfaction afforded the wearer to sell one shirt of such grade and quality than a half-a-dozen of the cheaper grades on which the profit would be only fifty cents each. He then persuades the dealer to buy a small assortment of each color and size of collar, say one-quarter dozen each, and suggests to the dealer that he put some of these shirts in his show window as the best possible method of advertising them. He next takes up a $60.00 per dozen shirt, and so on down the line until he reaches the cheaper and most staple grades which he sells at the usual market price, but as few as possible. When he has shown his samples and finished his sales he has run the whole gamut of salesmanship. He has satisfied his customer by selling him the competitive grades of shirts at the regular going competitive prices, and thus taken care of him, as is the trade phrase. He has done more, however, with benefit both to himself and his customer. For he has sold the latter goods of high quality and merit on which both make a satisfactory profit and which are the best possible advertisement with the consumer who wears the shirts. The story of a sale such 78 TRAVELING SALESMANSHIP as this, being merely a recital of many actual daily experiences, is an example of a very vital way by which a salesman can help his customer to prosper, and this is among his first and most important duties. He can bring to the customer the absolute necessity of building up his busi- ness on the lines of giving satisfactory service to his customers the consumers and how a large part of such a service must lie in the dealer himself being a salesman and selling goods in the main which the consumer will always re- member with pleasure and satisfaction. Every dealer, like every salesman, must carry and sell some cheap goods, and must be prepared to meet current market quotations without, however, being a cutter of these prices. But these goods, however, are not the ones upon which stress is to be laid nor any great effort made to sell. As a matter of fact, they usually sell themselves. The goods of higher grade and higher price, bearing a better profit, are the ones which the dealer will find require salesmanship to sell, but which are the surest foundation on which he can build his business. An actual incident well illustrates this. A car- penter was once buying a handsaw and was persuaded by the dealer to buy a high-grade saw of a well-known brand at $2.00 for the saw, COMPETITION AND PRICES 79 instead of a cheaper saw cheaper both in quality and price which he had originally intended to buy. As time went on he was so well satisfied with the saw that he bought all of his tools of the same dealer and of the same brand as the handsaw. At the end of twenty- five years the saw, though much worn, was still in use, and the carpenter was a living, walk- ing advertisement of the merit of that particular brand of goods which the dealer carried and which were by far the cheapest as well as the best in the long run. There are times, of course, when the salesman will have bargains, genuine bargains, to offer. His firm may have bought an extremely large quantity of goods at a very low price, and on that particular lot will make very low prices. Or they may control a certain desirable article and are thus enabled to make very low figures on it. In such cases the salesman should not only cooperate with his concern by selling as many of the goods in question as possible but should also use this as a lever and an argument why his customers should also buy more largely of his regular line in recognition of the value of the bargain priced article he is offering. In his effort to uphold prices against the ceaseless effort of the dealer to beat them down, 8o TRAVELING SALESMANSHIP the salesman, perhaps unconsciously, is giving voice to a great economic axiom whose truth is but dimly beginning to be perceived. Competition is undoubtedly the life of trade and the cause and inspiration of good service. That is a lesson we have had deeply imbedded in us by the war, which showed that unified control, fitting and necessary in war, is entirely unsuited and unfitting to peace. So it is equally true that unrestricted competition, carried to its logical and natural, tends to destroy those who employ it. Meanwhile, we have not yet evolved, nor even conceived any practicable form of socialistic endeavor which is capable of solving this abstruse and forbidding problem. Therefore, we are beginning to understand that merely low prices are not in themselves desira- ble nor necessary to our social and economic welfare, and that in fact the lowest prices are those which are the earmarks of bitter and often prolonged eras of depression. The advanced economic thought of the day leans to the concept of the general welfare of the many as the surest and most enduring foundation of the prosperity of any nation. Such a statement carries with it a generally high plane of living and consequently an en- hanced cost of labor, which must affect the cost COMPETITION AND PRICES 81 of every phase of production. So long, there- fore, as our present industrial system endures we cannot separate the economic relation of prices and of the purchasing power of the con- sumer, and the most feasible solution of this association seems to be in a permanent increase of the latter factor. As a rule the only way to stimulate production is by making it re- munerative and this inevitably means at least comparatively high prices. There is a point beyond which these prices become profiteering at the expense of the many, and just what the point is and how to prevent prices going beyond that point seems to be the outstanding problem of our present economic life. In this, however, we must not lose sight of the momentous fact that increased production in many lines is really the greatest need of our civilization, that all may have some share of those advantages and possessions now confined to the compara- tive few. Thus increased production may be found the solution of some of our present prob- lems of the inequalities of distribution and use of the material abundance of the world. CHAPTER IX SOME PHASES OF SELLING. SELLING NEW STOCKS Value of new stocks to the salesman and his firm Test of salesmanship Price as a factor Confidence and good reputation best arguments Leads to enduring relations Consistency in treatment Articles suit- able for establishing agencies Difficulties and per- plexities of such agreements Mutuality of obliga- tions Tact and diplomacy. Selling new stocks of merchandise to dealers starting in business involves the fine arts of salesmanship, since it demands all the varied accomplishments and gifts of a salesman to compass it successfully. The initial importance of the sale consists in establishing close relations with a new customer by providing him with the necessary merchand- ise in the beginning of his career. The secondary and often the greater result, is the continuing sale of future wants to this same dealer, pro- vided the new stock be so well and tactfully sold as to be profitable to the customer as well as to the firm making the sale, and thus leave a pleasant taste in the mouth of the buyer. This 82 SOME PHASES OF SELLING 83 is much more difficult than making a sale of equal volume and value to a dealer already established, because it is often the first venture in business of the buyer of the new stock of merchandise, and he is apt to be nervous and apprehensive and not infrequently very partic- ular and "fussy" about it. He often attaches undue importance to the size of the bill he is buying and expects unreasonable concessions in the way of terms and prices. Besides there are generally several firms bidding for the stock. Hence, keen competition soon brings about that condition often experienced in such situations when the dealer obtains lower prices than he is likely to get afterwards. When the buyer decides to shop, going from one city to another, and one firm to another, the matter soon resolves itself into a mere contest of prices and the order is apt to go to the lowest bidder, regardless of other considerations. The only value of the sale then is the possibility of business in the future from the same dealer at more remun- erative figures. For by tacit understanding between seller and buyer prices made on new stocks are not to be regarded as precedents in days to come. The highest art practiced by the salesman consists of selling the stock by eliminating com- 84 TRAVELING SALESMANSHIP petition. It becomes then the old, old story of gaining and holding the confidence of the pros- pective customer so that he trusts largely to the fairness and judgment of the salesman both as to prices and selection of goods. It often hap- pens that the intending purchaser has but scant experience in the business in which he is em- barking, especially if it be a complicated line of much extent and variety. He consequently finds it impossible to form an intelligent judg- ment of the figures presented him as to whether they are really cheap, and is often very much at sea as to the quantity of goods to be bought and the assortment to be selected. He realizes that he may make a serious blunder by over- stocking himself with unsalable goods or too great quantities, so he is prone to rely upon the judgment and experience of some salesman who can guide him through the tangled maze. This is the opportunity of the experienced salesman. His part is to demonstrate to the intending purchaser that the only wise course is to put himself into hands where his interests will be safeguarded. His story commences with his own firm, its reliability, its standing, its capacity and ability, as well as its desire to take care of the dealer. There enter into his argument all the details of the assortment and SOME PHASES OF SELLING 85 nature of the goods carried by the salesman's firm, of its carefulness in shipping goods com- plete, in attractive containers, properly packed, and of the business efficiency which insures a prompt delivery of the entire order in such shipshape that the customer will have but little difficulty in transferring the goods to his own shelves in a speedy and intelligent way. The salesman must dwell upon this sale be- ing merely the beginning of cordial and satis- factory relations between his firm and the cus- tomer and intimate that it is all important that the dealer get started right, and thus lay the foundation for future success. The sales- man must impress upon the intending customer the supreme importance of making connections, in the beginning of his career, with a concern with whom he will be content to maintain close and profitable relations in the years to come. Thus illustrating his principal argument which is that the buying of the new stock is not so important as the establishing of connections in the very beginning with a firm possessing the qualifications necessary to relations which will be permanent and profitable to both of the contracting parties. The question of prices is one upon which the dealer must be satisfied without the necessity 86 TRAVELING SALESMANSHIP of those unduly low figures which unrestricted competition implies. The salesman should real- ize that the customer must be in a position in the beginning of his career to meet competition from those already in the business; consequently that taking advantage of the dealer, through the latter's ignorance, or trust in the salesman, by charging unduly high prices is sure to prove a boomerang should the dealer either rightly or wrongly conclude that he has been imposed upon. Selling a new stock and then failing to con- tinue the connection in the way of a large con- secutive business is a tacit confession of a lack of foresight and energy on the part of the sales- man. It is in effect a sowing without reaping, and the story of a neglected opportunity be- cause of bungling in the beginning, or else fail- ure to follow up a favorable commencement. Selling a new stock gives the salesman an opportunity to get a larger share of the business of the new concern than often is afforded him in his relations with those longer-established customers. It is natural and inevitable that in the days to come the new concern will divide its trade and at least buy to some extent of others. But the observant and tactful salesman will still retain a greater share than if he had SOME PHASES OF SELLING 87 allowed some one else to sell the new stock. This is particularly true where the salesman was farsighted enough to induce the new cus- tomer to buy largely of goods owned and con- trolled by the salesman's firm. Here, however, is where the salesman's judgment must clearly see the wisdom of not overdoing this to the extent of stocking up the new customer with brands that are not both salable and profitable. Persuading the intending customer to place himself in the salesman's hands in the matter of the new stock rather than letting it out to the lowest bidder is a triumph of salesmanship which must be an absolutely sincere procedure if the salesman's relations with the new firm are to be permanent. In effect, the salesman must make good, not only for the time but in the future, alike in his promises and performance if the selling of a new stock is to carry with it the full measure of benefit and profits to the salesman's firm. The new customer must be made to realize by deeds rather than words that the connection he has made is to his last- ing benefit. Paradoxical as it may seem to those who reckon price as the main factor in selling and buying, probably the wisest, most farsighted, and altogether profitable method, from the 88 TRAVELING SALESMANSHIP point of view of the customer, in purchasing a new stock is to make such connection as has been indicated, with a reliable and capable con- cern which will give him that comprehensive service which is the thing most to be desired in all business connections ESTABLISHING AGENCIES In every branch of business there are a num- ber of articles which are distinctive and pecul- iar either in the way of construction, quality, patent rights, trade-marks, or extensive adver- tising. There may be, and usually are, other articles which serve the same purpose equally well but which are not so widely or favorably known. It is, therefore, the natural desire and purpose of the distributer, whether wholesaler or retailer, to monopolize such well-known articles and to have the sale exclusively for his own trade territory. By so doing he is sure of obtaining favor in the eyes of his customers by being the sole source of supply of a favorably known and popular article. He thus acquires a certain prestige for his enterprise and initiative. He is likewise enabled to take advantage of the established reputation of the articles in question by selling in a market already created for him and thus reap where others have sown. SOME PHASES OF SELLING 89 If it is to his advantage to obtain the ex- clusive sale of these articles for his territory, it is often equally to the advantage of the owner or seller of them to give such exclusive sale or agency, as it is usually termed, to some enter- prising dealer who will thus have an incentive to push the sale of the goods and increase their output. Take the concrete case of a well-advertised, hence well-known, efficient and registered trade- mark line of heating stoves handled by some jobber who has secured the exclusive agency of them from the manufacturers for a certain territory, say the states of Missouri, Illinois, Iowa, Kansas and Nebraska. The manufac- turer agrees not to sell the stoves in these states to any one other than the jobber in question. In return for this concession the jobber binds himself to push the sale of these stoves in the territory named and to use his utmost endeavor to sell as many as possible. Not having any competition on them in the restricted territory agreed upon, the jobber has no difficulty in always obtaining a satisfactory price for the stoves from his trade. This price, of course, must not be so high as to restrict or hamper in any way the sale of the goods, and is usually proportionate to that prevailing in neighboring 90 TRAVELING SALESMANSHIP states, and is often set by the manufacturer himself. For while the retailers in these states cannot buy from the manufacturer nor from any jobber in the said states, other than the one having the agency, there is usually nothing to prevent them buying from some other jobber handling these same stoves in some other states, as they will be likely to do if the jobber having the agency charges more for the stoves than they can be bought in some neighboring state. The part the salesman plays in establishing these agencies is a very diplomatic one when the salesman travels for a wholesale distributing house. In certain lines of goods, establishing agencies is often the only feasible and practicable method of creating a large business for the goods. For almost every retail dealer in such lines has the agency for some one brand and centers his attention on making sales of this particular brand. He finds this concentration gets better results than spreading his energy thinly over two or three brands of practically the same article. There is naturally the exception that in the line there must be brands of different quality and prices, but these, of course, do not conflict. Moreover, the owners or sellers of the lines of goods usually sold on the agency plan SOME PHASES OF SELLING 91 are not content to give the agency of their brand to any dealer who will not devote his attention to their sale exclusively. The problem, therefore, of the salesman for a jobbing house which wishes to establish agen- cies for articles of a certain brand is to select in each town he "makes" (visits) the dealer best fitted to obtain results in the shape of large sales of the article under consideration. This selection is sometimes made by the salesman, sometimes by his firm, and oftener by mutual cooperation between the two. The first consideration for the dealer or jobber is mutuality of obligation, since always there are some dealers who either through indiffer- ence or neglect fail to perceive that their own interests, as well as those of the jobber, are bound up in a heavy output of the article under the agency plan. For obviously the jobber has no other means of distribution of the agency article save the retailer in question. So if the retailer fails to make adequate sales the jobber either must suffer the loss of business which might be his, or else withdraw his agency from the retailer, which may cause a breach between the two and consequent breaking off of business relations. This latter is sometimes a question- able procedure, especially when the other busi- 92 TRAVELING SALESMANSHIP ness of the retailer may be of greater value than that of the agency article. Hence, the part of the salesman either in selecting or in advising the choice of the dealer who shall have the agency is a matter of good judgment and dis- cretion. He must know his men and their pos- sibilities, so that his choice will finally rest upon that one who is the most dependable in the long run to realize his share in the agency. Most dealers are ready enough to accept an agency, when they are not already committed to something similar, but not all are so ready to fulfill their implied obligations. It is not alone a matter of conscientiousness but also of in- itiative, energy, and industry. So in establish- ing the agency the salesman is banking not only on the dealer continuing in business long enough to make the agency worth while, but likewise on his business ability, his character, and his tem- perament. Besides, the salesman may offend some other good customer in the town, who also wants the agency. A matter of this nature is not easy to arrange without trouble and pos- sibly some loss of trade. Complications of this nature test not only the tact and diplomacy but also the firmness and strength of character of the salesman who may have to be very frank, though friendly, SOME PHASES OF SELLING 93 in announcing why the choice was made of one customer rather than another. A most effective plan of preventing com- plications is to offer to the other customer some article which the salesman's firm may carry as suitable for an agency arrangement. The choice once made, it becomes the sales- man's further duty to follow up the matter by watchfully seeing that the customer carries out his share of the bargain by sufficient sales of the agency article to make the continuation of the arrangement worth while. He can also materially aid to this end by suggestions and by assistance to the customer in advertising the agency article. There are apt to arise complications which the salesman can often straighten out, since his firm is some distance away and he is on the spot. For instance, two dealers in towns several miles apart both have agencies of the same articles for their towns. A customer in one town, for some cause does not trade with the dealer in his town who has an agency article which he wishes, so he buys it from the other town. Or, one of the dealers sells the articles to the farmer lying between the towns at a less price than asked by the dealer in the other town. What usually happens is best expressed by the homely 94 1RAVELING SALESMANSHIP phrase that the fat is in the fire. For the ag- grieved dealer, he who lost the sale, is pretty sure to demand that the firm or the salesman discipline the other dealer, sometimes threaten- ing to abandon the agency unless the offender makes reparation or else ceases his practices. The renewal of peaceful relations between these two competitors is not always an easy matter, since the average dealer is rather in- dependent when he feels that his rights have been assailed. Sometimes persuasion prevails, sometimes the common sense appeal of the salesman to the better judgment of the two dealers. It is in such cases that the personality and standing with the trade of the salesman are most effective in settling the difficulty, especially when the salesman is courageous as well as tactful in carrying out the policies of his firm. CHAPTER X SOME PHASES OF SELLING CONTINUED; SELLING TO ALL THE DEALERS IN A TOWN Selling all dealers Its great difficulties Complications arising from human nature Methods of handling them Maintaining the salesman's independence Results of a divided territory The reason for quan- tity prices Their advantages Complications Not an important factor. The opposite problem of establishing agencies is, as far as possible, selling to all the dealers in a town. On the face of the proposition it is obviously the best and most profitable policy and yet it is the rare salesman who carries it out to anything like its full possibilities. It is fraught with all manner of difficulties, chief among them being those set up by human nature itself. There is a curious instinct in the buyer, which often finds expression in a desire to have the salesman with whom he does business, confine his visits to his town to the buyer's firm alone. It is not often put as baldly as that but the desire itself is not uncommon. Akin to this is 95 96 TRAVELING SALESMANSHIP the wish that any special concessions or prices given by the salesman be confined to the buyer alone; for the latter realizes that such conces- sions or prices are no longer special when en- joyed by more than one purchaser, for the chances then are that they will serve merely to reduce the general price to the consumer. Then again there may be a strong rivalry be- tween two or more dealers and they may not all like to buy from the same salesman. Be- sides the salesman cannot always be sure of gaining the good will and confidence of every dealer, despite the utmost tactful efforts on his part. Under such conditions, and they are constantly encountered in more or less modified phases, the average salesman is apt to choose the line of least resistance and to sell to those to whom he can with the smallest effort and even to become that sad figure the "one man in a town salesman," often justifying his course by the amount of business that he receives from his lone customer. The disadvantages of such a method are obvious, and usually result from causes, or rather weaknesses, which the salesman rarely admits, even to himself. Usually they are the lack of energy and industry on the salesman's part, sometimes born of a desire to cover his SOME PHASES OF SELLING 97 territory too quickly, and at the sacrifice of his own independence and courage, because he is not willing to take the chance of offending a good customer by soliciting the trade of this customer's competitors. There is always the serious possibility and likelihood of this one customer dying, or going out of business, or failing, or having some falling out with the salesman or the salesman's firm. Then indeed the salesman is strictly "up against it," stranded high and dry. For under such a contingency it is certain that the other dealers in the town will not buy, if they can possibly avoid it, of one who so completely turned them down in the past. One successful method for the salesman to maintain his independence and his trade at the same time is an effort to call the customer's bluff. The argument is something like this: "All right, if I agree to what you request and confine my sales to you and do not call upon any other dealer in town, will you on your part agree not to buy any goods in my line from any one but me? There are always, you know, two sides to an understanding and, of course, you will not ask me to do anything that you in turn are not willing to do yourself." This ar- gument usually shows up the pretense and 9 8 TRAVELING SALESMANSHIP selfishness of the dealer's proposition since he is apt to refuse to make any such initial agree- ment as the salesman suggests. So that the latter is left with a good and valid case, which the dealer has not been able to overthrow. Nor is he able to offer any real business reason why the salesman should assume all the obligations in a one-sided bargain. Of course, these considerations apply more particularly to the general salesman with a large and varied line of goods; for it is another story with the salesman of a line of specialties only, or of some patented or trade-marked article, or a manufacturer's salesman with a limited line and assortment, for often in such cases the situation is much akin to that of es- tablishing agencies, and consequently selling to one dealer in a town is the best and most productive method. Selling to as many dealers as possible in a town means in the beginning that the salesman must travel more slowly and must comb his route most carefully. There will be occasions when he will lose more time than will be com- pensated for by the small orders received. He will also have to make his choice between cover- ing a large territory with longer intervals be- tween visits to each customer and taking a SOME PHASES OF SELLING 99 smaller territory and working it more thor- oughly. How frequently the average salesman fails to realize and reap the possibilities of his terri- tory is shown by a familiar example. For vari- ous reasons the firm concludes to divide the territory of a salesman, usually against his strong protest that he cannot possibly get enough business out of his moiety to make it pay. What frequently or rather commonly happens is that each salesman sells as many goods in each of the divisions as the original salesman sold in the former whole. It's all in the man, rather than in the territory. The reason of this is obvious. In the first instance, that of the large territory, the salesman mani- festly neglected a lot of trade, and because of this lack of attention it went to other salesmen and other firms. In the second instance, that of the divided territory, both under the spur of necessity and pride the salesman let nothing escape him and his reward was a larger business in the secondary half than the primal whole. Instances such as this illustrate the vital neces- sity of the salesman's working his territory care- fully and thoroughly. In selling to as many dealers as possible in a town there is involved a frank and courageous ioo TRAVELING SALESMANSHIP stand by the traveling salesman that he is simply following the dictates of duty and carrying out his obligations to his firm. Some dealers may bring pressure to bear on him not to sell to cer- tain of their competitors. He must make plain, however, that his endeavoring to get all the business he can in the town does not mean that he will fail in his full duty to each individual customer, recognizing and meeting their separate claims to his consideration according to their business merits. There are occasionally some dealers in a town whose businesses, or character and reputa- tion are such that it is most unwise for a sales- man to call upon them. Otherwise the most successful salesman is apt to make a practice, with the exception* of such cases, of selling to as many dealers as good judgment dictates. It is an interesting fact of experience that the salesmen who consistently follow this practice are usually the most popular and esteemed men in their calling. For neces- sarily they must combine tact and diplomacy with courage and independence but do not find it necessary or wise to display these latter traits in a flamboyant fashion. Beyond this is the fact that the average retailer in any rep- resentative line of business is constantly up SOME PHASES OF SELLING 101 against the hard facts of life, and is usually endowed with that common sense and fairness which are the saving graces of the nation. More- over, he is a seller as well as a buyer and in- stinctively recognizes the arguments of the seller and their compelling force as to the necessity of the traveling salesman selling to whomsoever he can within reason. Experience also teaches that the dealer loses nothing by this plan that is not the result of his own lack of initiative and energy. Furthermore, it is evident that a larger market for a line of goods is created by greater competition. In the distinction in prices that the salesman may find it wise and necessary to make to differ- ent customers there cannot here be even an approach to the statement of a general policy. Just how the salesman shall differentiate in prices in respect to his different customers de- pends upon the line of goods he is selling, the policy and instructions of his firm, the condi- tions of business in general and those surround- ing each line that he handles, and the nature of the competition he encounters, and the volume and nature of each customer's business. All these things are matters of experience and not of formulas. In some branches of busi- ness, for instance, it is a well-recognized custom 102 TRAVELING SALESMANSHIP to give certain special prices or discounts for larger quantities than usual, or what are called quantity prices. If, for instance, there is one price for a certain article bought in one or two dozen lots, and a somewhat lower price for full case lots, containing five dozen in a case to be taken at one time, such distinctions as these are based upon what experience seems to in- dicate as sound business policy; the argument being that the cost of selling five dozen of an article at one time is necessarily less than selling one-half dozen of that article ten times in order to reach the same volume. For as far as the salesman's time is concerned, as well as the time of the workers in the firm filling the order, it costs as much to write out the half dozen on the order, to get out the goods in the house, to pack and ship them, and to make out a bill for them as it costs to put an order for five dozen through all these operations and yet the amount of the sale of a half dozen is only one-tenth as much as the sale of five dozen. And in the final analysis the costs and profits of a firm are figured on the dollars and cents amount of the business done rather than on the tonnage and the unit of quantity. In making quantity prices the salesman has to be most cautious never to quote them to a SOME PHASES OF SELLING 103 customer who cannot take advantage of them, that is, to one whose purchases are not suffi- ciently large to enable him to buy the necessary quantity in one shipment. For the human na- ture of the buyer is such in every station of life, that knowing of the quantity price, he feels that he should get it, even though the volume of his purchases does not fulfill the conditions upon which the quantity price is contingent. So he makes such pleas as being entitled to it when his purchases in time reach the total volume required, or because he is at a disad- vantage with the competing dealer who gets the quantity prices unless he likewise gets the same concession. In homely phrase what " sticks in his craw" is the uncompromising and un- comfortable fact that a competitor is buying goods at a less price than he is. Of course the only logical reason for the quantity price is for the entire quantity to be handled at one time as a matter of economy to the seller and the only basis upon which he can afford to make the concession. Incidentally it is a constant reminder to the salesman of the correlated economy in his selling as far as pos- sible all goods in original packages, that is, the small packages whose volume makes up the full case lots. For instance, an article may be io 4 TRAVELING SALESMANSHIP packed one-half dozen in a box, and six dozen, or ten boxes, in a case. In such instances the salesman should always endeavor to persuade the customer to buy at least a half dozen of these and thus save the salesman's firm the often useless expense of breaking the original package, and thus having to wrap up the smaller quantity bought, say a quarter dozen, leaving the remainder in the box to become all the more easily shopworn and unsightly. As a matter of fact, in actual experience quan- tity prices play but a small part in the business of most concerns. The comparatively few ar- ticles to which this method can be applied, the few customers who can really take advantage of such prices without seriously overstocking themselves, and the constant complications which ensue, usually do not make the game worth the candle. CHAPTER XI SOME PHASES OF SELLING CONTINUED; CHANGING CHANNELS OF DISTRIBUTION Changing channels of distributions Legitimate business Department stores and retail stores disregard tradi- tion Fundamental necessity of selling profitable goods Keeping track of sales Selling futures Advantage to customers and dealers. Closely allied to the policy of selling to as many dealers as possible in a town, is that of detect- ing and taking advantage of the constantly changing channels of distribution. These altera- tions in the currents of distribution usually come so slowly and so imperceptibly that often the transformation has taken place before the aver- age man realizes its import. It is a general trait of human nature to consider the present as per- manent, and most men are unable to conceive of anything radically different from that now exist- ing. This is why some firms persist in clinging to a line of goods when the days of its usefulness are nearly over; this, too, in spite of warnings and manifestations that are plain to all save those, who having eyes, see not. 105 io6 TRAVELING SALESMANSHIP It was the business creed of the past that certain lines of trade must confine themselves to what was called legitimate business, and that handling any articles outside of those particular lines was contrary to good business principles and consequently was tabooed. Grocery stores were not supposed to sell hardware, nor must dry goods stores sell groceries, nor must hardware stores sell any of the foregoing lines. At best there was never any consistency in the practice of the various branches of business, since each division of trade was apt to trench upon the prerogatives of other divisions by handling such items outside of its supposedly legitimate sphere, as could be sold to advantage. These forays into each other's territory were not presumed to take place and such infractions were tacitly overlooked unless they assumed un- due proportions. The modern department store set the fashion of handling everything under one roof, and other retail stores followed suit to the extent of handling such outside lines as attracted trade or added appreciably to their volume and profits of business. In the main the distinctive character of each branch of business remains unaltered, clustering around a central core of a characteristic line of trade, yet upon the fringes are many new addi- SOME PHASES OF SELLING 107 tions, many of them seemingly irrelevant and not germane to the great body and character of the business, though in fact they are in gen- eral the effect of a definite demand. The limitations as to the nature and assort- ment of the stock of merchandise of any dis- tributing commercial organization are largely those set by the matter of the possible sale and profit of any new line and also by human con- ventions. A most compelling reason among wholesale distributers is the nature of the goods handled by their retail customers. A dry goods jobber, for instance, finds that retail dry goods dealers have taken to handling trunks, valises, and jewelry. So he immediately adds these goods to his assortment since it is both easy and economical for him to sell these articles along with his regular lines of dry goods. Consumers follow the inherited habit of going to certain kinds of shops for certain kinds of goods, and, save in department stores, are not easily at- tracted to stores for articles which they do not naturally associate with the character of mer- chandise most carried by such concerns. One rather notable economic revolution, on a small scale, in opposition to this practice has re- cently upset many of these conventions as to where goods are to be bought. The inherent io8 TRAVELING SALESMANSHIP problem of drug stores has been of late, how to obtain a sufficient volume of business to over- come their expense account. The reasons for this are numerous and are principally the small purchases of drugs in dollars and cents made by each customer. The problem was compli- cated by the obvious fact that the desired volume could not readily be found in an increase in sales of drugs and kindred articles. An apparently little thing, the soda water fountain, furnished the solution, by first attracting to itself cus- tomers who afterwards became purchasers of out- side lines and articles which the intelligent and enterprising druggists added to their assortments, such as stationery, magazines and periodicals, candy, some articles of outdoor sports such as base ball and tennis goods, fishing tackle, some readily selling lines of cutlery, shaving appliances playing cards, and a number of other items all taken from other lines of business and apparently without necessary connection with the drug trade. So the retail grocer added wooden ware, house- hold utensils, wash boards, step ladders, and the like. Then the retail hardware dealer added auto- mobile sundries, bicycles, paint, and sometimes window glass, crockery, and a line of silver plated ware. SOME PHASES OF SELLING 109 So now it is hard to make any distinction as to what is legitimate to a distributing business and what is not. The natural effect upon the jobber was not only to cause him to add to his line everything that the retail trade in his branch of business carried in stock, but to seek to sell what he car- ried to those outside retailers who handled similar articles. The problem still remains for the salesman whom he shall regard as "legitimate," and to whom he shall sell without offending and pos- sibly estranging some of his regular trade. He may find that the druggist sells more of some of the new lines he has recently added than the retailer who has always handled them. Yet, this regular dealer with difficulty brings himself to regard the druggist as a legitimate competitor. The salesman's province is to watch and judge whither the channel of distribution is drifting, for that in the main must be his trend. If he fails to sell to the dealer in new goods, it is cer- tain that some one else will do so. Yet, in some instances he may display poor judgment if he risk the large trade of his regular customer for that of comparatively unimportant items bought by the outside dealers. It is here that judgment and diplomacy are needed largely in the begin- no TRAVELING SALESMANSHIP ning, for later the matter usually takes care of itself. After the initial readjustment the con- suming trade goes to those who most deserve it, and the good sense of those in the regular trade who at first may have felt aggrieved accepts the situation and it often stimulates them to re- newed efforts to recover the trade they seem in danger of losing. So the salesman who consistently, yet tact- fully, follows the policy of selling to as many dealers in a town as possible and as far as good judgment permits, finds himself still in the chan- nels of distribution, so long as he ceaselessly ob- serves their trend and tendency. Moreover, the channels are not always entirely changed but are often rather subdivisions shared between the regular and the new trades. There are changes, however, which are permanent, such as the ab- sorption of the saddlery "and harness shop and likewise the tinshop by the retail hardware deal- ers, and here the salesman must have prescience to see the inevitable before it happens, and not afterwards, and adjust his course accordingly. SELLING PROFITABLE GOODS The aim and purpose of selling is to make a profit as well as to attain volume. The best way to accomplish this is by selling as many profit- SOME PHASES OF SELLING in able goods as possible. There is often a wide difference in the margin of profit between lines of goods and this difference is caused by condi- tions beyond the control of the salesman. Cer- tain lines in each branch of business bear a small and often insufficient margin of profit, and the salesman has to accept this condition. There is, however, a compensation for this, and it lies entirely with the salesman, for it is a matter of experience that the salesman can de- termine to an appreciable degree the nature of the goods he sells. In this lies the distinction, as deep as a well and as wide as a church door, between a real salesman and one who merely takes such orders as his customers give him. A salesman for a grocery jobber often finds himself forced by competition to sell sugar on a very small margin. Under such conditions it is a test of his salesmanship to "sweeten up" the order through persuasion with the customer by also working in a line of fancy groceries, high-grade food products, and similar profitable items. It is one of the interesting facts of business history that a salesman usually sells what he likes to sell, and this generally consists of goods that he knows and fancies. The most success- ful salesmen are those who sell the most goods and make the best profits and in so doing sell a ii2 TRAVELING SALESMANSHIP great variety of goods in order to make a good general average of profit. Most firms have some kind of an arrangement with their salesmen whereby the latter share to an extent in the profits which they make, so that the salesman has constantly before him the in- centive of enlightened self-interest. He must also remember that it is most desirable to sell as many as possible of the goods which his house controls. There is no competition on them, for they can be had only from his firm. So on such lines the salesman is assured of a continuing business. KEEPING TRACK OF SALES It is well for the salesman to keep track of the total volume of sales he makes each customer if his firm is willing to furnish him this informa- tion from its books. He can thus know all the time whether he is gaining or losing ground, and seek the cause and apply the remedy in the latter case. By the same token the salesman on the occasion of his visit to each customer finds it of great advantage to refer to his order book and see what he sold the customer in question on his former trip. It gives him an immediate start, especially in the line of seasonable goods. If, for instance, he has sold a line of winter dress SOME PHASES OF SELLING 113 goods the previous season to a certain customer, when the time comes around, he can, by refer- ring to his order book, refresh his memory on the former transaction as to goods, quantities, and prices. He is then primed for the sale and, moreover, can make quite an impression upon the customer by calling attention in detail to the former sale of a year ago, showing entire famil- iarity with it, and suggesting certain changes for the coming season. The customer is very apt to feel flattered at the interest and knowl- edge of the transaction displayed by the sales- man as it indicates an interest in the affairs of the customer. SELLING FUTURES One of the most important phases of salesman- ship is what is known as futures and consists principally in selling seasonable goods for future delivery. Seasonable goods are those which sell largely at certain seasons of the year, because of the weather conditions prevailing at such periods. For instance, ice-cream freezers are seasonable in warm weather and sell in the Summer, while heating stoves are seasonable in cold weather and sell in Winter. Every branch of business has a large propor- tion of seasonable goods in its assortment, such n 4 TRAVELING SALESMANSHIP as winter and summer clothing in the dry goods trade, agricultural tools and machinery in the implement trade, and the like. Articles used in outdoor sports are naturally seasonable, such as skates in Winter and baseball and tennis goods in Spring and Summer, and guns and ammunition for hunting wild game in Fall and Winter. Consequently all these goods are sold as fu- tures. They must be made up by the manufac- turer some time in advance of the actual use by the consumer that they may be ready for the user when the season opens. They are first bought by the .jobber, then distributed to the retailer who has them ready for the final sale when the season opens. Thus seasonable goods used by the consumer from May to July are pre- pared for by the manufacturer the previous August, who then purchases the necessary ma- terial to go into these goods and makes his con- tracts with the wholesale distributer for ship- ments at a future date, say from November to January, according to latitude, hence the name futures. The wholesaler in turn sells to retailers for shipments from February to May. Spring and Summer seasonable goods are naturally bought earlier in the season in Southern latitudes than in Northern latitudes, while naturally Fall SOME PHASES OF SELLING 115 and Winter seasonable goods are purchased ear- lier in Northern latitudes. As the goods are bought both by jobber and retailer some time in advance of their actual use the matter is equalized by a well-understood system of terms and datings from manufacturer to jobber, and from jobber to retailer. Certain seasonable goods bought by the jobber in De- cember and January will be made payable April or May, less the usual cash discount, and the wholesaler will extend the same general terms to the retail dealer. The argument of the salesman to the retail dealer to induce him to place his order for stoves in January and to have them shipped in July is based upon the necessity of the retailer thus anticipating his wants if he is to be sure to get the goods when he needs them. Should the re- tailer delay in so doing he runs the risk of finding that other more forehanded dealers must be served first, and that consequently he may not get the goods, say stoves, until it is very late in the season and thus may miss many sales. For in the height of the season, say in November and December, when the demand is for stoves for immediate use by the consumers, the factories are so crowded with "rush orders" or "fill in" orders that they usually have more business ii6 TRAVELING SALESMANSHIP than they can handle promptly. If all the job- bers and retailers refused to buy stoves until they actually needed them in cold weather, it would be impossible to get them. One system of selling futures is what is known as collective car lots. A jobber, for instance, in the Central West has a salesman traveling in the Southwest who sells futures in the shape of agricultural hand tools and implements in the way of collective car lots. As the salesman travels from town to town he makes up this collective car by taking enough orders from his customers to fill the car in question. The goods are then assembled in one car, "a collective car," shipped from his firm to a central point in his territory, where bulk can be broken and the various lots quickly reshipped to the town of each respective customer. The advantages of this method are that the full car takes less time in transit than the same shipment in less than car lots and the goods are apt to go through in better condition because as there are fewer ship- ments they are not handled so often. The goods are to be used by the farmers in the Spring but are shipped by the wholesale distributer along in January or February, so that the dealer has them on hand when the demand comes in the Spring. SOME PHASES OF SELLING 117 The system of future orders offers many op- portunities to the resourceful and observant salesman to get business which he otherwise could not obtain. He assures his customers by this method that they will have seasonable goods when they need them if they will give him the orders in advance. The real merchandising value of seasonable goods consists in having them in stock when the demand for them comes, because their season is short compared with regular goods, and lost opportunities in the way of being out of the goods in their season cannot be repaired. Besides the retailer acquires great prestige by having the goods on hand for his customers, who usually wait until the last mo- ment before purchasing, and then are much dis- gruntled if the dealer cannot supply their wants. The salesman also finds that the plan of future orders, especially in collective cars, is of great advantage in his competition with the nearby jobbers, whose leading argument for getting business, and the one he finds hardest to answer, is their ability to make prompt deliveries to the trade in their territory because of their being so close at hand. This does not apply to such an extent on future orders where time is given and the necessity for haste is not immediate. The salesman always finds that future orders, prop- ii8 TRAVELING SALESMANSHIP erly handled by him and his firm, are a source of strength to him with his trade and assist him greatly in getting "fill in" orders later in the season for the same goods that are wanted for immediate needs. Contrariwise, futures badly handled, not shipped promptly nor complete, are handicaps which his trade remembers and which excuses and explanations fail to remove. Nothing is of more importance in selling fu- tures than that the salesman have his customer realize how necessary it is that the customer get the goods in early and thus have them when needed. That is the matter of prime importance compared with which the price paid is a minor affair. On the other hand the salesman should not persuade the customer to overstock himself in his purchase for this results in the cus- tomer's carrying the surplus stock over into the next season, some months away, and at quite an expense to himself. The customer is apt to get "sore" over such a happening and to cherish it against the salesman, especially as he has con- stantly before him, in the goods themselves, a reminder of his own bad judgment. CHAPTER XII SOME PHASES OF SELLING CONCLUDED; ADVERTISING What advertising accomplishes The power of suggestion The salesman's part in it The power of conviction The contagion and power of enthusiasm Loyalty, a misunderstood virtue Its obligations Advantage and profits of new articles Mistake of selling un- salable goods to customers Assisting customers in methods of merchandising. There is one phase of advertising which is little understood by the average advertiser, and yet which is vital to the success of an advertising campaign by any manufacturer or wholesale distributer. It is the possession of an efficient selling force as a necessary adjunct to successful advertising. Well done advertising does not, as is commonly supposed, of itself create such a demand for the article advertised that it then will be generally called for by the consuming public. What is really accomplished by adver- tising is done through the power of suggestion so that the intending purchaser of an article will be favorably disposed toward it when brought to his attention. 119 120 TRAVELING SALESMANSHIP The retailer cannot be expected voluntarily to herald the merits of each advertised article that he carries in stock, but must rather center his attention on those which pay him the great- est profit. The part the salesman has to play is keeping constantly before his customers the merits and advantages of the particular advertised articles which his firm handles. If these are profitable to the retailer, his arguments will then be all the stronger and more compelling. His ultimate aim must be gradually to persuade his trade to call the attention of their customers to these advertised articles and thus complete the chain of the effects of advertising. While it is true that success in advertising depends largely upon constant reiteration and keeping everlastingly at it, yet it is equally true that the salesman must beware of overdoing the matter by too unceasingly dwelling upon the articles advertised. There is an element in human nature which grows weary of constant repetition of the same story and this often with- out regard to the nature of the tale. The only distinction is, that matters of much merit are not so soon wearied of as those of more transient attractions. The Greeks got tired of hearing Aristides called the Just, and so banished him SOME PHASES OF SELLING 121 to get rid of him. It is also on record that after the National Assembly of France, during the Reign of Terror, had formally abolished the Deity as non-existent, he was discovered in a new form by Robespierre, and was so exploited by the latter that Danton was driven to remark that Robespierre and his "Supreme Etre" (Su- preme Being) were getting to be a bore. The salesman must consequently mingle considera- tion and prudence with his enthusiasm in voic- ing the merits of his favorite brands. The most effective way in which the salesman can further the sale of the advertised articles is convincing his customers that they are all they are claimed to be. Hence the dealer can consistently advocate the sale of such articles as will surely give satisfaction and will there- fore prove to be repeaters, that is, they are goods which are constantly called for, and thus in fact largely sell themselves, which is the final end and aim of all advertising. Most men are responsive to the call of genuine merit, and moreover take pleasure in commend- ing and recommending it. Besides the salesman must himself be the best advertisement of his special line of goods by the sincerity of his belief in them and in their merit. Indeed, this sin- cerity of belief is only another phase of the en- 122 TRAVELING SALESMANSHIP thusiasm which is one of the most convincing and most essential qualities of salesmanship. Conviction, like charity, begins at home. But when thoroughly domiciled it is one of the most contagious of all human traits. History is full of the stories of fanatics, wild-eyed philoso- phers, and authors of more fantastic and impos- sible theories who impressed mankind and had innumerable and devoted followers because they were first of all profoundly convinced of the undying truth of the doctrines they preached. Belief in one's self must invariably precede the belief of others in you. So the enthusiasm of the salesman for the articles he sells is the surest way to further his cause by convincing his cus- tomers of the truth of his own belief. This phase of enthusiasm is not easily simulated nor does the imitation pass muster for any length of time. The business world in which the salesman travels quickly and unerringly recognizes whether he rings true or merely gives forth an uncertain sound. It is true of every man that he fools himself oftener than he does others. The most convincing arguments of the sales- man are the genuine enthusiasm with which he presents the story of his wares as the reasons why they should be bought. The manner in which a dry goods salesman tells the quality, SOME PHASES OF SELLING 123 merit, and style of the fine laces and embroideries he displays may easily be a type of the persuasive power of giving evidence of the faith that is in him. It is the same trait and the same method which makes converts of men in the serious matters of life and which sustains them in time of stress and trial. Akin to this enthusiasm for his calling is the loyalty the salesman must feel for his firm, when such loyalty is deserved and well placed. We are apt to think of loyalty as an instinctive, but most praiseworthy, and undiscriminating virtue, when in reality it should mark every form of em- ploying and employment if the best results be- tween the two are to be had. The Stuarts, Kings of England, stand out in history as types of monarchs and leaders upon whom for four generations there was lavished an untold wealth of misplaced and unappre- ciated loyalty. Many of the best and finest characters of the times gave their fortunes and lives gladly in the cause of a race who furnished some of the worst kings England ever knew. Nowadays loyalty is more discriminating, not so long lived, and more careful where it bestows itself. The firm which the salesman represents should first of all deserve his loyalty, knowing that it is in its power to have and to hold it. I2 4 TRAVELING SALESMANSHIP Equally must the salesman recognize the mu- tuality of obligation by unchanging loyalty on his part to the firm and its interests. He must always be their representative in every sense when on the road, and never speak of them slightingly nor in fault-finding fashion. This does not mean that he shall not be conscious of such mistakes as they must inevitably make at times, just as the salesman does in like manner. But it is the manner in which he handles such mistakes which is the real test of his loyalty. On the one hand he can explain to the customer how fallible even the best regulated and most systematic concerns are, and at the same time assure the customer that he can depend upon the firm doing the right thing when the facts are fairly presented to them. Or on the other hand he can criticise the action of his concern without offering any palliation or excuse. The first method, when done reasonably and tact- fully, is the surest way to gain the customer's respect. The second plan is almost sure to lose that respect. There is an instinctive feel- ing in every man which is expressed in the homely condemnation of the dog which bites the hand which feeds it. If for any reason the salesman cannot truly be loyal to his firm, then he should find other employment, and SOME PHASES OF SELLING 125 meanwhile refrain from any expression of his real feeling. It makes a strong impression upon customers for the salesman always to have the newest and latest articles in his line. Such a course estab- lishes for him and his firm the reputation for energy and progressiveness. It also offers the customer the opportunity to constantly bring new and attractive articles to the notice of his own trade, and thereby gain the reputation of being up to date in his stock and assortments. Moreover, new articles are usually more profit- able, while their novelty lasts, than those familiar to the trade. Also, they are better sellers, for their mere newness is one of their attractions. It is always a mistake to sell to customers goods which they cannot readily dispose of. They are sure ultimately to blame the salesman for having taken advantage of them, and remember it against him often to the extent of affecting their business relations. It is one thing to sell a cus- tomer close-out goods, overstocks, and job lot goods at prices in accordance with their actual values, and quite another thing to unload "stick- ers" on him. In the former case the customer buys at bargain prices and takes his chances of selling the goods; in the other he forgets the 126 TRAVELING SALESMANSHIP price he paid and remembers only the unsalable goods. By the same token the salesman can often be of great benefit by going over his customer's stock of goods and suggesting where he can save money by closing out certain dying articles which are going out of fashion, or by reducing his overstocks in certain lines, or add to the attractiveness of his line by buying certain new and desirable articles. Very often the dealer is not a good hand at merchandising, either in the turnover of his stock or in the assortment, and little realizes how costly such neglect is. So the salesman from his general knowledge and ex- perience can often be of genuine benefit to his customer. It is even a greater mistake for the salesman to "stuff orders," that is, to put in his orders goods which the customer did not authorize. It can lead only to one thing and that is trouble, and later on the loss of the confidence of the customer. It is not infrequent for the customer to tell a salesman in whom he has confidence to write up an order for what the salesman thinks the customer needs. It is shortsighted to abuse this privilege and overstock the customer so that the latter feels that his confidence has been imposed SOME PHASES OF SELLING 127 upon. Often the salesman can save time by making a brief memorandum of the customer's wants, and writing up the order afterwards in regular fashion at the hotel. It is a very good plan for the salesman to en- deavor to persuade each customer at intervals to go through his catalogue or price list with him so that the customer may be thoroughly posted as to the line of goods carried by the salesman's firm. It usually results in the customer ordering a number of new articles. It is a very difficult thing to induce a customer to do this, because it demands both time and patience, and the cus- tomer rarely cares to expend much of either in this fashion at his store during business hours. Often it has to be done at the hotel at night. CHAPTER XIII CLAIMS Expensiveness and unsatisfactoriness of claims Danger of misunderstandings Salesman's part in adjust- ments Credits not to be judged from superficial appearances Advantage of salesman working with Credit Department Relations of credit to volume of business. It has been said of claims that they are the only part of business of which the greater the volume and the more satisfactory the settlement to the customer, the more unprofitable the result. They are likewise a constant source of irritation both to the firm and customers. This proceeds largely from the fact that they are adjusted principally by correspondence and this is the surest method of prolonging misunderstandings. The claim man, "the trouble wagon," in a firm should be a composite salesman, credit man, diplomat and all around "mixer." He is usually none of these things, and too often inexperienced in the ways of human nature and intent only in getting the claim settled with as little direct pecuniary loss to his concern as possible. 128 CLAIMS 129 The indirect results of claims are the ones most to be avoided since they are frequently of the greatest consequence and cause the great- est loss. It is constantly impossible to locate the fault, and upon this the entire claim usually hangs. A retailer reports to his jobber that there was one box of soap missing in a recent shipment. The jobber investigates and finds that all the records indicate that the soap was shipped and was packed in the case containing the other goods of which the retailer acknowl- edges receipt. The retailer makes another search in the excelsior or hay used in packing the other goods but fails to find the box and so reports. "So there you are." One large well-known firm had a simple and direct method of settling such claims by the simple formula, "the customer is always right." Such a policy is based on the belief that it is cheaper in the long run to grant the claim whenever there is any question of doubt than to let the matter decline into a con- troversy which would probably result in the loss of the customer and his future trade. On the other hand, the policy of the customer being al- ways right is supposed to make the customer a firm friend to the extent of securing his trade for the future. The question as to whether such gain is offset by the comparatively few who take i 3 o TRAVELING SALESMANSHIP advantage of this liberal policy to impose upon the concern is obviously incapable of answer since it is impossible to obtain reliable data. The opportunities for misunderstanding and disagreements on claims are numerous and al- ways present. It is easy for an incautious and undiplomatic claim agent to give offense to cus- tomers by seeming to doubt their word, or their honesty, when all he really doubts is their ac- curacy and when his whole desire is merely to ascertain the facts that he may make settlement accordingly. Some dealers in small towns are averse and unaccustomed to long correspondence, and to cross question and argue with them merely irri- tates them, since they do not understand why the claim is not settled without further ado, when they have told the whole story as they see it, and are entirely honest in their convic- tions as to the justice of their position. A good many valuable and desirable accounts have been lost to the seller by the technical and unwise manner in which claims have been handled. It must likewise be remembered that the dealer in a small town is not and cannot be aware of the necessary detail which has to be gone through in any large house before all the facts can be gathered in relation to his claim. CLAIMS 131 Nor is he familiar with the intricate legal points often involved and is apt to resent anything of this nature being brought into the discussion. Often all he knows is that he has a just claim, from his point of view, and fails to see why it should not be settled. It is largely within the province of the sales- man to prevent these misunderstandings ever coming to a head by disposing of them in their incipiency. In fact, it is one of the character- istics of the good salesman that very few claims from his territory ever reach the home claims department. In the beginning of his career the traveling salesman requests his customers to hold all their claims until he comes around and he will settle them promptly. He is on the spot and can size up the situation, and get the facts far better than can be done by correspondence. He knows his cus- tomers and can tell whether they are sincere or are trying to "work" him, whether they are careless and superficial, or careful and accurate. He also can overcome that curious feeling which exists in some dealers that the large concern can better afford the loss than the smaller con- cern and should, therefore, stand it. He makes the settlement as though it were his own, and brings his personal equation into the transaction 132 TRAVELING SALESMANSHIP as of one man to another. Such concessions as he makes, in a disputed case, are usually far less than are apt to be finally yielded in correspond- ence, as a matter of policy, and then often with- out removing the feeling created by the mis- understanding. The salesman has his firm's interest at heart, and because of its being a personal deal between him and his customer it usually ends in being satisfactory to the customer and reflecting to the credit of the house. The matter of the claim thus becomes merely the matter of a discussion between two people who know each other well, and the usual result is a prompt settlement, in lieu of what might have developed into a long drawn out correspondence with an unsatisfactory termination. The sales- man makes the settlement often more easily than the claim man in the home firm, because he knows the customer and his peculiarities and because it is always easier to make arrangements and to settle differences by personal contact than by correspondence. CREDITS The modern methods of ascertaining the true financial conditions of most business organiza- tions are so complete, and on the whole so re- liable that the manufacturer or wholesale jobber CLAIMS 133 who loses an undue proportion of his sales through bad debts is guilty of poor judgment or great negligence or both. Not so with the re- tailer whose means of ascertaining the true finan- cial state of his customers are very scanty, and are often merely those of hearsay and common report. We frequently see this illustrated in the career of individuals who go through the world, obtaining credit with but little difficulty and making a great show of well-being until death or some economic or social calamity discloses the mockery of their pretensions. Added to this usual inability to get accurate knowledge is the fear common to many retailers of losing trade by being too insistent in their collections. Es- pecially is this the case in small towns where dealers fear to give offense to those who stand high in the community and whose influence is such that it may be an expensive thing to incur their ill will even though they are slow in settling their accounts. The close collector is not necessarily one who, like Pharoah of old, hardens his heart, but rather one who has moral courage to ask that which is due him and for no other reason than it is his because it is due. The wholesaler must take these and other characteristics and peculiarities of the retail 134 TRAVELING SALESMANSHIP dealer into consideration in extending credit, and there is no one who can better assist him in reaching true conclusions than his traveling salesman. In such matters the salesman must bear in mind that his natural tendency is to sell goods and to shift the burden of collecting for these goods upon the credit man. This is why some firms in making credits to the salesman for his profits, likewise give him demerits for the bad debts he incurs for the concern. The sales- man must likewise remember that, much as he desires to sell goods, he is doing a very unwise and calamitous thing to sell them to a new cus- tomer without first investigating that custom- er's financial standing. There are various ways of finding this out that give the salesman a fair measure of his customer's status. Is the dealer prompt in collecting from his customers or does he allow their accounts to run and thus fail to provide himself with funds to meet his obliga- tions? Is he a borrower from the banks, and if so to what extent, and what does he pledge in the way of collateral ? Does he carry sufficient fire insurance policies on his store buildings and contents, on his stocks of merchandise, and also on his own home, if he has one? Has he any mortgages on his store building, his stock of merchandise, and his own home, and if so, to CLAIMS 135 what extent? Does he take advantage of cash discounts in his purchases, and does he pay his bills promptly when due? Has he insurance on his own life, if so, to what extent, and does he meet his premiums promptly when due? Has he many overstocks, slow-moving goods, and dead stocks in which he has too much capital invested for the good of his business? Last and most vital of all, what are the customer's habits, and what is his character? For in the final analysis, sales and loans are made on char- acter more than on any other one factor. The answers to these questions determine the financial status of the customer and the extent to which it is safe or unsafe to sell to him. They are likewise the points upon which the sales- man's firm most desires to be posted, and upon which he can be their best means of information. Nor are they so difficult to find out as might seem at first blush, especially where the salesman pursues his inquiries with tact and discretion. In many cases the customer himself will tell the whole story to a salesman in whom he has con- fidence. It is often because of this confidence that the salesman is able to determine at times, even better than his credit department, that it is both wise and profitable to carry the customer over a period of distress when 136 TRAVELING SALESMANSHIP on the face of affairs it may not seem safe to do so. On the other hand, the well-posted salesman will advise his house that it is high time to col- lect from some customers, and to collect promptly, sometimes through the medium of the salesman, that there be no delay. It is a distinguishing mark of a good salesman that his house does not have many bad debts in his territory, since he uses the knowledge he pos- sesses of his customers' affairs to see that they do not "get into him" too deeply and that he sells to them from time to time only as they keep paid up. What the salesman soon realizes and perceives is the vast importance of a credit policy which will permit him to sell freely and thus extend the volume of his sales and yet not incur undue risks. He must always remember, however, to keep a curb on his natural inclination, which is to sell all the goods he can and let the credit de- partment walk the floor about collecting the bills. Knowing his people and his territory he can be of great help and assistance to the credit department by the information he can give it as to the danger of the risks it may run, and, on the other hand, the chances which it can safely take with certain customers. In agricultural CLAIMS 137 sections it often pays the wholesaler to take long chances with some of his customers in whom he has confidence, because one or two good crop years will compensate for as many bad ones, and, on the whole, make the chances taken a paying proposition. CHAPTER XIV THE HUMAN EQUATION Faculty of making friends Enduring nature of business friendships Cultivating the good will of the clerks Keeping in touch with his firm The study of the average man Influence of the traveling salesman His mission Insight into conditions and their trend. When all has been said, the story of salesman- ship is the tale of personality, albeit there is needed much method and system and a de- veloped art, much patient detail and ceaseless industry, to bring the story to a successful ending. MAKING FRIENDS One of the greatest assets in life is the faculty of making friends. By this, however, is not meant the smile of mere veneer, which fools no one but its possessor, nor that typical hail- fellow, well-met, of the politician's stripe, who has guile for his compelling motive. The seeking of popularity which springs from the selfish mo- tive of the hope of advancement soon gets its proper measure by the world in general, and 138 THE HUMAN EQUATION 139 verily it has its reward. Enduring friendships are founded on a deeper basis than this, and so too are even those casual acquaintance- ships whose cheery greetings are a large part of the traveling salesman's existence. It is per- fectly true that it pays to make friends of the Mammon of Uprighteousness in the shape of passing humanity, but it is equally true that many friendships so made take on a more serious phase and develop into a genuine liking. The real reward of such friendships is not the ma- terial advantages which so often accrue, but the reactions of the salesman himself. It is a familiar saying that happiness is found only in the dictionary, yet the awakened interest in others, which the exercise of friendly ways and actions stirs in the man himself, insensibly infuses sincerity in all the outward expressions of a kindly spirit. Whatever may be the original motive which inspires the traveling salesman to make himself popular, the usual result is the formation of many genuine friendships which outlast business contact. Furthermore, there are not many successful salesmen who are un- popular on their routes, for being so, handicaps them at every turn. The train men and hotel clerks with whom the salesman is in constant contact can do him good or ill turns, depending 140 TRAVELING SALESMANSHIP upon whether they like or dislike him. They can, and do, tell him of new stocks to be sold, of how to approach various customers, of the movements of his competitors, of the financial standing and report of certain firms, and of numerous other matters of moment. They take a friendly interest in him if they like him, or they let him alone, save with bare civility, if they do not. In their likes they sense the quality of his friendliness, whether it be genuine kindliness, or the mere suits and trappings of shallow pretense. In his own case his sincere interest in others brings the genuine reward of the discovery of certain kinds of knowledge, or of interesting characteristics unsuspectedly possessed by those who at first seemed mere common-place clods of humanity. Most important of all is the nature and extent of the salesman's friendship with his customers, for contrary to an impression prev- alent among many, such friendships are both general and enduring. It is a common saying among traveling men that there is serious danger of disrupting friendships begun socially by after- wards entering into business relations, although the most enduring friendships are those com- menced as mere business acquaintances and gradually ripening into mutual regard. Prob- ably the reason is that such business relations THE HUMAN EQUATION 141 form a solid ground of common respect, without which most friendships are frail and ephemeral affairs. Such friendships are not only the surest basis of continued business relations, but they do much to relieve the tedium and monotony of the traveling man's life. The real reasons for these friendships are often not realized nor analyzed by the contracting parties. Far more than he suspects is the traveling salesman interesting to the customer, because he brings to him the story of other people and other places. He is essentially cosmopolitan in his attitude of manner and of thought, though all unconsciously, because he mingles constantly with all sorts and conditions of men and women. Through his house he has the latest and best things in his line and is in touch with modern conditions and methods of business. He knows how to impart this information, not didactically, nor with the air of superior knowledge, but as a matter of friendly interest. For there are few, however apparently stolid or indifferent, who do not really crave knowledge when told in terms of their own living. The consequent influence of the traveling men with their customers is but little understood and realized. While it is evasive and seemingly indefinite, it is none the less real and significant, for it proceeds from the i 4 2 TRAVELING SALESMANSHIP friendly clash of two minds who know and sym- pathize with each other and speak in terms of mutual understanding. Moreover, their inter- ests are absolutely identical. The traveling salesman cannot profit unless his customers prosper, and the dealer owes much of his welfare to the direct and indirect influences on the salesman. The result is seen in the pres- ent steady growth of both salesman and dealer in correct business ways and methods, and the constant widening of their mental horizons. It is an axiom in business that one can often learn from the practices of one's competitors. So the traveling salesman carries with him from town to town and from dealer to dealer the story, gathered by his keen observation, of successful ways and new methods. He can, therefore, from practical study make constant suggestions to his customers of better ways of merchandising, of advertising, of selling, and of handling em- ployees. In this latter respect the salesman finds it both wise and profitable to be on friendly terms with the clerks of the dealer. They al- ways like and appreciate such attention when tactfully bestowed, and repay in kind. They put the salesman "wise" to bills he can sell, and to goods that are needed which the "old man" may have overlooked. THE HUMAN EQUATION 143 One of the most successful salesmen of many traveled for a large jobbing house in the Central West, over 2,500 miles from his home base, yet he sold many goods and many profitable goods as well. One of his best "stunts" was teaching the clerks at odd moments in the stores he called upon how to sell goods, and especially such profitable goods as he sold the dealers. He made it evident that thereby they found favor in the eyes of their employers, because they added to their employers' profits, and at the same time increased their own chances of advancement. It is needless to say that the results cemented the liking of both employers and clerks for this salesman. In the freemasonry which prevails among the tribe of traveling men there is constant knowl- edge and experience to be acquired from the salesmen in other non-competing lines. They often impart most valuable information of op- portunities in lines in which they are not inter- ested, and their friendliness and good report are valuable assets to any salesman. There is no formula for making friends, especially those who wear well. The don'ts are numerous, and include the minor vices and petty faults as well as the greater ones. Especially are there barred all the ways of deceit, treachery, deviousness, and all 144 TRAVELING SALESMANSHIP the evil crop of lying and envy. Tact and di- plomacy go far, but probably sincerity and good faith are the surest foundations. In the salesman's contact with his firm he must ever have in mind his house as his first and best concern, and the one to which his loyalty is due. The more he gains and deserves the confidence of his own people the more latitude will be given him and the greater will be his scope in all mat- ters. The salesman is judged by results, and the more satisfactory these results, the wider play will be permitted his ability and his per- sonality. He will find it wise to come in at in- tervals and get freshened up with the knowledge of new things which he learns from the buyers and managers of his own house. He needs these revivifying experiences, lest he grow weary and callous and indifferent because of the ceaseless competition and the never ending fight for business. He learns to take account of stock of himself, his ways and methods, and to discern wherein he has been slipping, and wherein he has fallen down. He thus sees where new oppor- tunities can be seized, not only as to the possi- bilities of his territory, but likewise as to the amount and nature of the goods he can sell. Personal contact with the buyers and officials of his house gives him an opportunity for assist- THE HUMAN EQUATION 145 ing them in their purchases by cooperating in those goods they wish to push. Also, he can give much information as to the competition he encounters, and thus put the buyers on the track of procuring better or cheaper goods and prices in order to enable the salesman to meet the competition which distresses him. There is also the exchange of knowledge with the credit and collection departments as to different cus- tomers, the state of their accounts, and the line of credit to which they are entitled. Finally there is the restatement of the policy of the concern with the heads of the firm and what they expect the salesman to stand for a while on the road. VISION AND ANALYSIS It has ever been the earmark of those writers of genius, who make an enduring appeal, that they write of those things whereof they know, and their story is that of observation, experience and insight. It has been so from the dim historic scribes of the Old Testament to Robert Burns and Rudyard Kipling of modern times. So the education of the traveling man is that which comes from the unconscious study of the homely people and the homely things which he has round about him in his ceaseless daily travels. 146 TRAVELING SALESMANSHIP Thus is he the observer and student par excel- lence not only of material conditions, but of the trend of thought among his people. It is upon his intelligent analysis of these factors in busi- ness life that his daily bread depends. The story of the crops, of industrial life, of mining interests, of the probable cut of lumber, and of the enterprises of construction and development, are matters of vital moment to him personally and to his house as well as to the nation at large. He must have a thorough comprehension not alone of present business conditions in his terri- tory, but of all the likelihoods and possibilities of the future. Vision must follow hard upon analysis if the salesman is to have a clear con- ception of whether the territory in which his lot is cast is to be worth while for a long pull and a long stay, for some territories have their possi- bilities clearly defined as to the amount of busi- ness that can be got out of them. To the am- bitious salesman such a territory may be all too small for his pent-up ambition, save as a school wherein he may make good and thus be called to a wider sphere. In sober truth the traveling salesman is a mis- sionary, though often an unconscious one, in many things. He is naturally in sympathy with progressive ways and methods and brings to the THE HUMAN EQUATION 147 dealers in the small town the wider vision of one in constant contact with all sorts and conditions of men. His influence in great national ques- tions was well illustrated in the recent war when he was an apostle of patriotism, instinctively so, because he could see no other way out. So it happens that the traveling salesman is beyond question the most accurate, the most dependable of all observers of the conditions and the people on his route. This is a fact but little realized, and of which as a rule but scant use is made. The knowledge he thus acquires of men and things comes from constant contact and observation, and unconsciously imbues and permeates his entire thought and purpose. He naturally drifts into the habit of endeavoring to forecast the future of his territory from the workings of the daily forces round about him, for in such forecast his own fortunes are bound up. So he is sure, all unconsciously, to become an apostle of progress, though of the persuasive rather than the fiery type; for his teachings are never obtrusively obvious, but rather along the lines of persuasion and somewhat rare advice. In the days of not long ago when first the in- vasion of the cotton boll weevil seemingly threatened the agricultural existence of the South, the traveling salesman was the first to 148 TRAVELING SALESMANSHIP perceive the marvelous regeneration and re- making of Southern economic and social life that lay concealed in this apparently dire menace. So it is that often the territory whose business possibilities are seemingly narrow and circum- scribed contains for him the possibilities that come only from analysis and vision. Fortunately for the truth and certainty of his vision as af- fecting his own future, he has the unusual char- acteristic said to have been a dominant trait in George Washington of always looking facts squarely in the face. He seldom dwells in a Fool's Paradise, nor yet in Castles in Spain, for his abiding common sense tells him that facts are the only things worth considering in the long run, unless he is willing to essay the role of the bluffer and the four-flusher in a gamble with fate. There is enough romance and interest in the seemingly homely facts of everyday life, if one has only power of analysis and vision to under- stand their meaning and their possibilities. THE ULTIMATE END The great handicap to the true comprehension of the real nature and purpose of the calling of the traveling salesman is that it is too constantly undertaken as a mere prelude to other careers. It is true enough that the experience gained THE HUMAN EQUATION 149 on the road is often the best possible prepara- tion for the highest responsibilities of business life, and many salesmen engage in traveling as a stepping stone to less onerous and more remunerative positions. It is a saying among traveling men that the salesman is always going to quit the road next year. In sober truth it is, when viewed from the outside, largely a monot- onous and prosaic life, full of endless work and ceaseless motion, accompanied by constant rep- etition, and apparently getting nowhere when the sum of it all is cast up. It is looked upon as the antithesis of domesticity, and the destruc- tion of those homelike ways which are supposed to sanctify a man's life. Yet equally in sober truth, as in every other phase of life, the matters of most moment are the story of experience and the satisfaction of things done. The life of the salesman is taken up in perpetual study of human nature and an equally perpetual accomplishment of an extraordinarily difficult task, and success in these must ever be his true and lasting reward. INDEX Advertiser, 119 Advertising, 119, 120 Agencies, 92 establishing, 88, 90, 95 Analysis, 147, 148 Anti-trust laws, 65 Arguments, 38 Articles, 13 advertised, 120, 1 21 demand for, 13 new, 125 Baits, 59 Bargain, 59, 78 Business, 2 legitimate, 106, 109 Buyer, i, 2, 3, 42, 59, 60, 70, 71, 72, 73, 74, 95 Catalogue, 15 Claim agent, 128, 130 Claims, 26, 128, 129, 130 reports of, 26 Clerical work, 25, 27, 28 Collector, 133 Collective car lots, 116 Competitive, 7, 45, 46, 48, Competitor, 47, 73, 94 Complications, 92, 93 Confidence, 36 Consolidations, 62 Conviction, 122 Cooperation, 69 Credit policy, 136 Credits, 133, 134 Crisis, 66 Customers, 7, 1 8, 23, 30, 31, 44> 53> 97> H3> Il8 > 126, 127, 129, 135, 136, 141, 142 contact with, 7 dealing with, 42 entertaining, 40 Dealers, i, 22, 23, 43, 47, 49> 53> 78, 91, 9 2 > 9 6 > loo, 130, 142 Deference, 34 Diplomacy, 21, 38 Distribution, 61, 105 Drummers, 4 Ease, 54 Embroideries, n 152 INDEX Engagements, 37 keeping, 37 Expense, 62 accounts, 26 Experience, 21 Firms, 112 Friends, 138, 140 making, 139 Futures, 113, 114, 116, 118 Goods, n, 51, 76, 78, 125 dress, 51 familiarity with, 1 1 profitable, no seasonable, 113, 115, 117 selling, 18, 19, 25, 110 unsalable, 125 Grain pits, 64. House, 44 Human equation, 8, 54, 59 Human nature, 12, 42, 73 Impatience, 23 Industry, 28 Jobber, 6, 16, 89, 91, 107, 129 Laces, n Law, 65 restraint of, 65 Letters, 26 Limitations, 107 of stock, 107 Loyalty, 123, 144 Market, 2 buyers, 2 stock, 64 Misunderstandings, 35 Modesty, 24 Money, 42 borrowing, 42, 43 Neatness, 37 Orders, 26, 27 articles on, 27 future, 117 memoranda of, 26 rush, 115 stuff, 126 Patience, 24 Personal element, 56 Prices, 7, 45, 54, 57, 60, 61, 69, 71, 74, 101, 102, 103 alleged low, 71 bargain, 59 quantity, 104 question of, 85 stabilizing, 64, 66 Production, 61, 81 Propinquity, 54 Purchaser, 30 Quality, 57, 58 INDEX Repetition, 33 Respect, 35, 36 Retailer, 115, 120, 129 Revolution, 107 economic, 107 Road, 7 preparation for, 7 work on, 7, 17 Route, 20 salesman's, 20 Sales, 2, 54, 80 Salesman, 3, 5, 6, 10, 12, 14, i$> i7-33> 35> 36, 41- 52, 59, 63, 68-76, 78, 83, 84, 85, 86, 90, 91, 93, 96-101, 103, 109, IIO, III, 112, 115, 117, 118, 120-123, 126, 127, 130, 134, 135, 136, 139, 141, 144, 146, 147, 149 classes for, 13 definition of, 6 essentials of, 10 personality of, 49 prospective, 14 special, 50-51 Salesmanship, I, 2, 3, 4, 41, , 87 aim of, no art of, 3 definition, I, 2 factors in, 28 Salesmanship, function, I, 6 importance, 4 nature of, I, 4, 6 principle, 4 purpose of, 1 10 reason, I science, 4 test of, 68 Samples, 28,29,30,31,33 Schedules, 20 train, 20 Seller, i Selling, 8, 58, 80 phases of, 8 purpose of, 68 stock, 86 Service, 54, 57, 58 quality of, 56 Sincerity, 32 Stickers, 125 Tact, 21, 38 Territory, 17 covering, 71 Towns, 20 high grass, 20 Trade, 38 Traveling man, 22, 45 Trouble wagon, 128 Vision, 145, 146, 148 Want book, 19 Wholesaler, 133 Printed in the United States of America UNIVERSITY OF CALIFORNIA LIBRARY This book is DUE on the last date stamped below. NOV 6 1947 JAN 22 1948 FEB 6 1948 LD 2l-100m-12,'46(A20 UNIVERSITY OF CALIFORNIA LIBRARY