UNIVERSITY OF CALIFORNIA 
 AT LOS ANGELES
 
 MODERN 
 SALESMANAGEMENT
 
 MODERN 
 SALESMANAGEMENT 
 
 A PRACTICAL HANDBOOK AND GUIDE 
 
 BY 
 J. GEORGE FREDERICK 
 
 VBESIDENT OF THE BUSINESS BOtJBSB, NEW YORK; SALES ENGINEEB AND COUNSELOR; 
 TBBlASDBBa AND QOVEBNOB THE NEW TOBK BALESMANAQEBS' CLUB 
 
 D. APPLETON AND COMPANY 
 
 NEW YORK LONDON 
 
 1929
 
 Copyright, 1919, by 
 D. APPLETON AND COMPANY 
 
 Printed in the United States of America
 
 
 \ PREFACE 
 
 ^ By Charles F. Abbott 
 
 vj My Deae Mr. Frederick: 
 
 I have read witli great interest the proofs of your hook 
 on " Salesmanagement, " and I wish to express to you my 
 appreciation for your painstaking effort in preparing a 
 book which, in my opinion, will prove of great value to 
 business men in all fields of endeavor. 
 
 For the first time, there is now available in your book an 
 <v>j organized body of knowledge on all phases of salesmanage- 
 ^ ment. No profession can properly develop without the 
 siyj help of such knowledge, and salesmana^ement very greatly 
 needs, especially at this time in American business his- 
 tory, the sound development of salesmanagement as a 
 trained profession. 
 
 For many years, individual salesmanagers have hoarded 
 their knowledge as their personal possession, with the re- 
 sult that owing to a lack of a cooperative exchange of ideas, 
 v^ business finds itself in great need of broadly trained sales- 
 j> managers. While there has been much writing on sales- 
 ^ manship, there has been very little on salesmanagement, 
 though, in my opinion, there is a greater need for the 
 latter, as selling ability can only be developed through a 
 proper understanding of salesmanagement. 
 
 The next ten years will no doubt see tremendous com- 
 petitive pressure, and remarkable sales opportunities for 
 America, and if we are to maintain our prestige, we must 
 have salesmanagers and sales executives who understand 
 the full degree of knowledge and training essential for 
 selling on the broad scale which is now in demand. 

 
 vi PREFACE 
 
 Through your broad experience in salesmanagers ' or- 
 ganizations, and as a sales counsellor, you have had 
 an excellent opportunity to develop a great deal of 
 valuable information on your subject, which is reflected 
 in your publication to a veiy high degree. Likewise, your 
 able editorship of Advertmng and Selling magazine, and 
 your earlier work as Managing Editor of Printers' Ink, 
 particularly fits you for presenting to the American busi- 
 ness man an outline of salesmanagement that combines 
 the best of practical experience. 
 
 I am confident that salesmanagers and business execu- 
 tives throughout this country, no matter what their experi- 
 ence has been, will read this book and greatly add to their 
 information and knowledge of salesmanagement. Person- 
 ally, I am indebted to you, because I feel that your book 
 is one that will prove of value to me in my work. 
 
 The under-student of salesmanagement, or, in fact, any 
 business man interested in selling, which is the great funda- 
 mental of business, will find in your book a saving of 
 years of their time and study, and a means of great as- 
 sistance in moulding successful business careers. 
 
 Yours very truly, 
 
 Charles F. Abbott. 
 
 At present Director of Sales, Celluloid Company of New York; 
 founder and president, Salesmanagers' Club of New York; 
 secretary, American Association of Sales Executives.
 
 INTEODUCTION 
 
 When the Great War came to its sudden end, a hun- 
 dred thousand factories in America and all over the 
 world — factories with nearly doubled capacity since 
 1914 — were swiftly shifted from production of war 
 material to production of regular merchandise. 
 
 Sales organizations which virtually had been idle dur- 
 ing the war were suddenly laden with the heavy re- 
 sponsibility of finding a market for huge additional 
 manufacturing capacities. Capital, floor-space, equip- 
 ment and labor had been expanded in various degrees 
 from 20 per cent to 100 per cent. To shut down the extra 
 capacity, or part with it, was deemed not only out of 
 keeping with American spirit and patriotism, but would 
 have been a serious step for many other reasons of pres- 
 tige, finance and competition. 
 
 American selling genius is meeting the situation char- 
 acteristically by more intensive study and preparation 
 for the sharpest sales competition the world has ever 
 known. The nations of the world are all organizing 
 for commercial development to a degree not heretofore 
 possible. The fabricating skill learned in war's hard 
 school is producing a total additional world production 
 of at least 40 per cent, and to absorb this, the world's 
 consumption of merchandise will need to be increased 
 through creative sales effort. The United States has 
 practically doubled its production of manufactured ar- 
 ticles — and the farmer has done likewise. 
 
 vii
 
 viii INTRODUCTION 
 
 What does this mean to the salesmanager whose re- 
 sponsibility it is to develop and maintain this volume 
 of business? 
 
 A peculiar compulsion and challenge lies upon 
 modern salesmanagers — a challenge to grow in personal 
 vision and ability to the new levels called for by the 
 great stimulation of production brought about by the 
 war's abnormal consumption. The new high levels of 
 consumption must not slump : the new high standards 
 of living and purchasing created by war wages must be 
 maintained rather than lowered. Throughout the world 
 the per capita consumption of purchase must be raised ; 
 backward areas must be equipped, millons of population 
 must be taught new food, clothing and equipment wants ; 
 and fallow fields and resources must be cultivated. 
 
 In plain business terms, we must sell enormously more 
 than we have ever sold before, not only to ourselves, but 
 also to the other countries of the world. The country 
 with the most constructive, trained salesmanagers will 
 keep the most factory wheels whirling and achieve world 
 commercial leadership, a prize which is now the only 
 legitimate object of national ambition and competition. 
 
 The sales task before America can only be accomplished 
 by an increase of technical knowledge concerning the 
 diificult art and science of salesmanagement. This in- 
 crease of knowledge must be of the broadest kind, and 
 include a sound understanding of not only the more 
 practical parts of salesmanagement, but also study of 
 public temper, psychology and economics. The sales- 
 manship and salesmanagement of pure bombast and 
 sheer energy, so familiar in past years, will not suffice. 
 Success at salesmanagement must depend upon some 
 fundamental changes in the habits and thoughts of the 
 American people, results which are obtained only by
 
 INTRODUCTION ix 
 
 the most subtle and painstaking and statesmanlike 
 grasp of the subject of increased national consump- 
 tion and of the deeper economic problems of selling. 
 The problem not only has to do with the huge and 
 varied territory of the United States and Canada, but 
 in the future must include the world. There are seven- 
 ty-nine countries into which normally it pays to seek 
 export markets ; and even the United States alone has 
 almost as many separate units to study. In view of 
 the grave situation in weaker countries, salesmanship 
 will have to be mixed with humane international policy 
 for a time — thus demanding from salesmanagers a 
 broad world outlook and vision. 
 
 It appears to the author therefore, that the treatise 
 on Salesmanagement here offered is one which fits in 
 with a national, even an international, need. Until 
 within recent years salesmanagement was conceived to 
 be largely a matter of personal qualities — ability to 
 inspire salesmen, energy, enthusiasm and a certain in- 
 gratiating good fellowship which mixed smoothly with 
 the customer and the men under him. This period and 
 type was obliged to go because of the rapidly increasing 
 breadth of the country as a sales field, and its many 
 complex characteristics, together with the increasing 
 intricacies of distribution. 
 
 Once customer and salesman both could be met and 
 understood and stimulated individually and person- 
 ally by the salesmanager. Now there is mainly a long 
 distance contact and a dealing with abstract factors, 
 policies and methods which call for study and treatment 
 on the mass principle. 
 
 As a matter of fact salesmanagement has always 
 been to a large degree a dealing with the intangible, for 
 selling success is primarily an intangible matter. Ex-
 
 X INTRODUCTION 
 
 perience in contact with people gave the old-time sales- 
 manager an ability to successfully master these intangi- 
 ble factors when personified in a customer whom he 
 could personally see, talk to, "size up" and affect 
 with his personality. But this type of salesmanager — as 
 a rule a successful road salesman elevated to the job — 
 too often finds it difficult and even distasteful to study 
 customers in the mass ; to average up human nature, 
 to correctly analyze the complicated factors of dis- 
 tribution and public psj^chology. The rapid rise of ad- 
 vertising in selling councils is due to this frequent tem- 
 peramental failure on the part of salesmanagers to be 
 able to visualize abstractly — to understand the intangi- 
 ble elements of selling well enough to plan correctly 
 to affect people at long range. Advertising genius has 
 supplied this knowledge of public temper and need and 
 become a very prominent part, therefore, of modern 
 successful sales policy. 
 
 The problem of building and maintaining an organ- 
 ization large enough to cover the country, to say nothing 
 of export selling, is still another kind of problem which 
 salesmanagement demands, calling for still another set 
 of faculties and aptitudes and special abilities. In the 
 days of smaller radius of selling and smaller volume 
 of sales, a salesmanager who was not much of an organ- 
 izer, but who had personal selling ability and selling 
 insight, could succeed. In a day, however, of long- 
 range selling, on a broad scale, the need is absolute 
 for a salesmanager who is not only an organizer of 
 men, but who can also shape and carry out the wide- 
 flung careful policies and apply the broad principles 
 which the new and greater selling opportunity demands. 
 
 It will readily be seen, therefore, that the personal 
 equipment of the salesmanager is all important — is no
 
 INTRODUCTION xi 
 
 longer a matter of unusual personal ability at selling, 
 or of a little natural gift at leadership. It calls for a 
 most unusual combination of qualities which are rather 
 seldom present in one man, and when they are not 
 present must be introduced in the form of able staff 
 assistance or consulting counsel if the business is to 
 reach its logical success. 
 
 In past years a great deal of mysterious hocus pocus 
 has been made over salesmanship and salesmanagement. 
 It has popularly been supposed to consist mainly of 
 personal magic — certain inborn qualities and certain 
 charms and powers of personality which constitute some- 
 thing of an individual secret — something that ''a man 
 either has or hasn't got." Naturally, therefore, a sur- 
 prising lack of organized knowledge of salesmanage- 
 ment has existed. Salesmanagers hoard their knowledge 
 like doctors in the old days when medicine was merely 
 the practice of "black art." This is evidenced by 
 the fact that practically every other branch of business 
 activity — credit managers, export managers, advertis- 
 ing managers, etc. — many of them the employees of 
 the salesmanagers — have well-defined organizations, na- 
 tional and international, in scope, with many textbooks 
 and common standards of activity. Yet salesmanage- 
 ment has until recent years been entirely unorganized, 
 and is now but barely beginning to be organized. Suc- 
 cessful salesmanagement and selling methods have been 
 held to be business secrets to a greater degree than 
 any other activity of business. Firms have been willing 
 to show visitors every nook and cranny of their factory, 
 every form and system of their office, and details of 
 practically every other branch of their business ; but 
 they have balked at disclosing the principles and methods 
 by which they produce their sales success.
 
 xii INTRODUCTION 
 
 This has actually retarded the development of sales- 
 mauagement, and severely limited the number of able 
 salesmanagers. There is now, and will be for some 
 years to come, a dearth of really able salesmanagers, 
 skilled in both the modern requirements of practical 
 knowledge and of the deep-reaching matters which they 
 will have to consider. If this book will assist in the 
 development of more better trained salesmanagers, it 
 will have reached the author's goal. 
 
 J. Geobge Fsspebick 
 
 New Yobk Cixt
 
 CONTENTS 
 
 !HAPTSB PAOB 
 
 I. The Salesmanager Himself and His Point op View 1 
 What He is Up Against — Personal Qualities Essential in 
 Salesmanagers — The Analytical Point of View — The 
 Dynamic Point of View — The Right Organization 
 Point of View — Trained Merchandising Instinct. 
 
 II. Shaping the Product for the Market ... 16 
 The Correct Relation of the Article to the Sales Plan — 
 Experimentation and Market Test — The Importance 
 of Individuality in Merchandise — How to Develop In- 
 dividuality — Making an Article "Fool Proof" and 
 Convenient — Meeting the Consumer's Need. 
 
 III. The Salesmanager's Relation to the Factory . 25 
 
 Need of Synchronizing Making and Selling — Degree of 
 Authority of Sales Department Over Product — Relation 
 of Production Time to Sales Policy — The "Standard 
 Burden Plan" of Equalizing Idle Factory Time — 
 Factory Capacity and Seasonal Variations — Multi- 
 plicity of Models versus Standardization. 
 
 IV. Building a Good Sales Organization ... 33 
 
 Correct Conception of Sales Organizations — Different 
 Forms of Sales Organization — Charting the Sales 
 Organization — The Fixing of Authority and Responsi- 
 bility — ^A Sales Organization Manual — Overlapping of 
 Duties and Authority — Organization Etiquette — 
 Loyalty and "Esprit de Corps" for Both the Firm and 
 the Department — Sales Conference Methods and 
 Principles. 
 
 V. Price-Making and Price Protection ... 47 
 Price, QuaUty and Individuality — Price in Relation to 
 Manufacturing and Field Conditions — Price Equality — 
 Just Price Discrimination — Fixing the "Re-Sale Price" 
 — General Profit and Price Policy — Special Margin 
 Plans and Sliding Scales — The Psychology of the 
 Retail Price — Merchandising a Price — Protecting 
 Dealers and Jobbers Against Themselves in Price 
 Policy — Zone System for Jobbing and Retail Prices — 
 Advanced Geographical Price Equalization. 
 xili
 
 xiv CONTENTS 
 
 CHAPTER PAGB 
 
 VI. The Shaping op Sound Marketing Policies . . 63 
 The Vital Need of Definite Sales Policies — Difference 
 Between Policy and Principle — Matters for which 
 Policies are Important — How to Measure the EfBciency 
 of a Policy — Featuring a Single Policy as a Keynote — 
 Profiting by Competitor's Weakness of Policy — Policy 
 and the Twenty- Year Point of View — Policies and 
 the Human Equation — The Importance of the Man in 
 Sales Success. 
 
 VII. Achieving Successful Distribution ... 76 
 
 Automatic Sales Through Smooth Running Distribu- 
 tion — The Seven Elements of Successful Distribution — 
 Distribution as a Mechanism — "High Spot Selling" 
 versus Concentration and Intensified Work — "Per- 
 centage of Distribution" — How Aggressive Advertising 
 Builds Distribution — Educational Effort on Dealers 
 to Increase Distribution EflBciency. 
 
 VIII. Selling Direct and Selling Through Jobbers . . 85 
 Why Some Firms Prefer to Sell Direct to Retailers — 
 Advantages and Disadvantages of Selling to Jobbers — 
 Branch Warehouses and Other Compromises and 
 "Straddles"— Getting "Sales Punch" to Retailer 
 Through Jobbers — The Jobber and " Mixed Functions. " 
 
 IX. Creating Demand and Educating Consumers . . 92 
 Demand as a State of Mind — The Subtle Work of 
 Creating a State of Mind That Leads to Demand — 
 Changing the Public's Habits and Standards — Demand 
 Creation in Relation to a Mass Movement — The 
 Technical Tools of Demand Creation — Names, Trade 
 Mark or Slogan That Help Create Desire — Develop- 
 ment of Tendencies in the Bujdng Public — Systematic 
 Educational Campaigns — Service as a Means to Help 
 Educate. 
 
 X. Meeting Competition ...... 102 
 
 House Pohcy as a Competition Safeguard — Territorial 
 Readiness to Meet Competition — Price as a Competitive 
 Factor — Wilful, Reckless Price Competition — Secret 
 Price Concessions — Meeting the Competitor's Selling 
 Arguments — Competition for Prestige — Advertising as 
 a Competitive Tool for Prestige — Organization as Com- 
 petitive Protection. 
 
 XI. Splitting Up Sales Territory and Setting Quotas . Ill 
 The Logic of Carefully Split Territory — Best Lines on
 
 CONTENTS XV 
 
 OHAPTEB PAGE 
 
 Which to SpUt Territory — How Much Territory Can a 
 Salesman Cover? — Territory Analyzed on a Consumer 
 Basis — Jobbing Centers and Their Relation to Sales 
 Territory — Territory as Related to Routes of Freight 
 Transport — Special Conditions of Big City Territory — 
 Territorial Sales' Organizations — An Efficient Layout 
 of National Sales' Districts — The Districts and Their 
 Boundaries and Natural Centers — Data Needed Con- 
 cerning Sales' Districts — Reduction of Sales' Terri- 
 tory — Applying the Per Capita Measure — Fitting the 
 Territory to the Salesman. 
 
 XII. The Selection op Salesmen 124 
 
 Why Salesmen Are Difficult to Select — Can Salesmen Be 
 Picked from Appearance? — The Use of Application 
 Forms — Need for Applying Scientific Test to 
 Applicants —Principal Native Qualities Generally 
 Agreed to Essential for Salesmen — "Star" Salesmen 
 versus Average Salesmen — Preference for Young 
 "Green" Material — Selecting Salesmen Who Can Sell 
 Policies as Well as Merchandise — Selecting Salesmen to 
 Fit Type of Men They Will Sell To. 
 
 XIII. Methods op Payinq Salesmen .... 138 
 
 Difficulties and Problems in Salesmen's Compensation — 
 Relation of Compensation to Type of Man Required and 
 His Living Standards — Salary or Commission, or 
 Both? — Some Defects of the Salary-and-Commission 
 Plan — How to Shape a Thoroughgoing Plan of Com- 
 pensation — Importance of Equality and Uniformity — 
 Plan for Automatic Salary Raises — Crediting Mail 
 Sales and UncoUectable Accounts — "Drawing Ac- 
 counts" — Handling Compensation of Juniors — The 
 "Piece Work," or "Task and Bonus" Idea in Selling. 
 
 XIV. Prizes, Bonus and Stimulation Plans for Salesmen . 151 
 
 The Basic Need for Stimulation — Differences Between 
 Staple and Specialty Salesmen — The Various Forms of 
 Stimulation to Choose From — Some Typical Bonus and 
 Contest Plans — Honor Alone as Stimulation and Incen- 
 tive — Merchandise as Reward — The Quota Plan — 
 Sound Principles for Operating Contests — Peculiar 
 Types of Contests — Bulletins, Letters, House Organs as 
 Stimulators — Stock Participation and Profit-Sharing — 
 Utilizing the Game Instinct. 
 
 XV. The Scientific Point System for Quotas and Contests 167 
 Reasons for Development of Point System — Instruc-
 
 XVI 
 
 CONTENTS 
 
 XVI. 
 
 XVII. 
 
 XVIII. 
 
 XIX. 
 
 XX. 
 
 tions for Operating Point System — Applications of 
 the Point System — Territory Factors Measurable 
 by Means of Point System — Merchandise Factors 
 Measurable by Point System — Special Reward 
 Factors Measurable by Point System. 
 
 Sales Conventions, Lectubes and Conferences . 175 
 How the Sales Convention Developed— Illustration 
 of Exceptionally Elaborate Convention — Making 
 Conventions Profitable and Practical — Correct 
 Physical Arrangements — Promptness and Dispatch 
 — Importance of Food and Drink Problem — Making 
 a Successful Program 
 
 Managing Salesmen's Temperaments and Habits . 183 
 The Salesman Type of Mind and Its Needs — Develop- 
 ment and Maintenance of Self-F'~ith — Adjusting 
 Salesmen to Organization Work — Overcoming Too 
 Great Obsession by Competition — Correcting Erro- 
 neous Notions That Salesmen Develop — Wrong Tra- 
 ditions and Superstitions Among Salesmen — Dealing 
 with the Question of Drink and Over-Fondness for 
 Women — Salesmanagers and Their Attitude to Habits 
 and Superstitions. 
 
 Sales School and Training Methods . . . 197 
 The Reasons Behind Intensive Sales Training — Why 
 More Sales Schools Have Not Been Established — 
 Preventing Sales Schools from "Pauperizing Sales- 
 men" — The Type of Instructors Necessary — Methods 
 and Curriculums — Examinations and Certificates 
 of Passage. 
 
 Sales Strategy ....... 205 
 
 The Right Definition of Selling Strategy — The Various 
 Kinds of Strategy — Direct Action or "Offensive" 
 Strategy — Indirect Strategy — Secret Action Strategy 
 — Complicated Series Strategy — Confusing or "Feint" 
 Strategy — • Wedge Action Strategy — Defensive 
 Strategy — Educational Strategy — Time Annihilation 
 Strategy — Good-will Strategy — Distribution Strategy 
 — Domination Strategy — "Caveat" Strategy. 
 
 The Service Principle in Selling 
 
 Service as the Central Keynote in Sales Building — 
 Goods Must Render the Service the Customer Expects 
 of Them — Service Should Be Rendered Spontan- 
 eously — Promises Should Be Unconditionally Made 
 
 221
 
 CONTENTS xvii 
 
 OHAPTBB PAQB 
 
 Good — Service Should Be Without Risk or In- 
 convenience to the Customer — Service, to be Efficient, 
 Should Be Rendered Entirely from the Point of 
 View of the Customer — Service Should Provide Full 
 Technical Information and Advice — Service Should 
 Express Personal Relationship — Service Should Be 
 Closely Defined and Definitely Stated. 
 XXI. The Development op Good-Will .... 230 
 Definition of Good-will — The Nature of Good-will — 
 Good-will and Advertising Departments — Indirect 
 Developers of Good-will — Cooperation in the Develop- 
 ment of Good-will — Legal Protection of Good-will — 
 Measurement of Good-will — Appraising Good-will. 
 
 XXII. Sales Administration and Budgeting . . . 236 
 The Sales Department as an Administrative Problem 
 — Administration Problems Defined — The Sales Bud- 
 get — The General Sales Quota — Budgeting a Quota. 
 
 XXIII. Selling Cost and Expense 244 
 
 The General Situation in Sales Cost — What Properly 
 Is "Sales Cost"? — Common Errors in Sales Cost 
 Figuring — Sales Cost and Fixity of Demand— The 
 Cost of Aggressive Selling — Volume in Relation to 
 Sales Cost — The Vital Matter of General Costs — 
 Data on Profits — Costs and Profits Traced to In- 
 dividual Salesmen. 
 
 XXIV. Practical Salesmanship Principles . . . 255 
 
 What is Salesmanship? — The Feeling Accompanying 
 Every Idea or Impression — Watching the Buyers' 
 Facial Expressions — The "Approach" Arousing In- 
 terest — -Reaching the Prospect's Mind Through the 
 Five Senses — Developing Conviction — Leading Points 
 of Sales Appeal — Adjusting the Appeal to the Prospect 
 — Studying the Prospect — Analyzing Physical Ap- 
 pearance: Forehead and Eyes — Analyzing Physical 
 Appearance: Lips, Chin, etc. — Speech and Acts — 
 Working Toward a "Close" — The Fine Art of 
 "Closing." 
 
 XXV. Standardizing the Work op Selling . . . 269 
 Why Selling Requires Standardizing— Standardizing 
 House Policy — The Sales Manual — Table of Con- 
 tents for the Sales Manual — Ideal Plan for Contents 
 of Sales Manual — Standardizing Salesmen's Equip- 
 ment — Standardization Through Symbols — Standard- 
 izing Salesmen's " Jumps " — Standardized Definitions.
 
 XVlll 
 
 CONTENTS 
 
 CHAPTIB 
 
 XXTL. 
 
 XXVII. 
 
 Interlocking Sales and Advertising Effort . . 278 
 Should Functions of Sales and Advertising Manager 
 be Combined? — Sales and Advertising Differences 
 Defined — Organization — Position of Sales and 
 Advertising Department — Viseing of Advertising 
 Copy by the Sales Department — Increasing the 
 Salesmen's Knowledge of Advertising — Advertising 
 Cooperation Through the Sales Manual — Making 
 Salesmen Sell Advertising Assistance Rather Than 
 Merchandise — Salesmen and Dealer Help Adver- 
 tising — Salesmen's Cooperation with Advertising 
 Inquiries — Advertising's Part in Sales Conferences 
 and Conventions — Advertising to Cut Down 
 Introductory Sales Expenses. 
 
 The Study op Aggressive Retail Merchandising 290 
 Why Retail Merchandising Insight is Essential in 
 Salesmanagement — SeUing Sales, Not Goods, to 
 Dealers — Surveys of Retail Possible Business — 
 Getting Power and Punch Out of Advertising — 
 Equipping Sales People to Push Goods — Profit- 
 Sharing for Salespeople — Getting Salespeople to 
 Think — Fighting Invisible Competition — Decrease 
 Cost of Doing Retail Business — The Turn-over — 
 Departmented and Itemized Costs — Increasing the 
 Avera2;e of Sale. 
 
 XXVIII. Working with the Jobber .... 303 
 
 Necessity of Carefully Laid Jobber Policy— The 
 Missionary Plan of Assisting Jobbers — The Size 
 of the Jobber's "Spread" as an Inducement — 
 Interesting a Jobber in a New Article — Special 
 Methods of Influencing Jobber Salesmen. 
 
 XXIX. Stimulating and Assisting the Dealer . .311 
 The Manufacturer's Partnership with the Dealer — 
 Stimulation with National Advertising — SjTichron- 
 izing Dealer Cooperation with the Appearance of 
 Advertising — Local Advertising at the Expense of 
 the Manufacturer or Half and Half — Miscellaneous 
 Dealer Helps — House-Organ for Stimulating 
 Dealers — Special Day and Week Plans — Window 
 Display Plans and Service — Bonus and Certificate 
 Plans — Clerk Education — Salesman-at-Large. 
 
 XXX. Sales System and Graphic Records . . .328 
 Visualizing the Sales Field— Map and Tacks and
 
 CONTENTS 
 
 XIX 
 
 XXXI. 
 
 XXXII. 
 
 XXXIII. 
 
 XXXIV. 
 
 Other Graphic Ss^tems — Unit Order Forms — Sales- 
 men's Report Blank — Salesmen's Route List and 
 Route Maps — Detailed Summaries — ^Expense Re- 
 ports and Expense Accounts — Memorandum 
 Forms — General Records that a Sales Office Should 
 Have. 
 
 Sales Engineering; Investigations and Surveys 338 
 Applying Engineering Standards to Sales Work — 
 Market Investigations — Analytical Procedure for a 
 New Article — Why Investigations Should Be Made 
 by Outsiders — Canvassing and Tabulating Trade 
 Sentiment — Statistics of Distribution — Future Con- 
 sumption Surveys — General Sales Surveys — Check- 
 ing Sales Work — Analysis of General Basic Factors. 
 
 The Statistics op Salesmanagement . . . 348 
 The Correct Attitude Toward Statistics — The 
 Two Main Classes of Statistics — Per Capita Con- 
 sumption Statistics — The "Saturation Point" — The 
 Law of Averages — Scope of Use of Averages — The 
 Psychology of Statistics — The Law of Diminishing 
 Returns — Analogy and Statistics — The Law of 
 Statistical Regularity. 
 
 Imagination and Vision ..... 364 
 Feeling Out the Future — Unforeseen Develop- 
 ments — Reserve Resources — Watching Formative 
 Periods — The Great Power of Ideas — Laying Pro- 
 tective Lines. 
 
 The Story op an Actual Selling Campaign . 
 Reason for Describing an Actual Campaign, and for 
 Selecting This One — The Strategic Situation Before 
 the Campaign Started — The Prehminary Plan to 
 Get and Popularize Quickly a New Name — The 
 Preliminary Trade Work — Results of the Contest — • 
 After the Name was Selected — Strategic Deduc- 
 tions from the Campaign — Ready Now for the 
 Big Campaign — The Three- Year Plan of Growth 
 — Signed Cooperation by Dealers — Conditions for 
 Becoming a "Blue List Dealer" — Checking a "Fall 
 Down" by Salesmen — The Campaign Outlined in 
 Detail — How the Sales Promotion Department 
 Operates — Principles Behind Successful Sales Pro- 
 motion Department. 
 
 370
 
 MODERN SALESMANAGEMENT 
 
 CHAPTER I 
 
 THE SALESMANAGER HIMSELF AND HIS POINT OF VIEW 
 
 1. What He is Tip Against. — Above all else, success in 
 salesmanagement demands a trained point of view. Boldly 
 analyzed, the difference between unsuccessful, mediocre 
 and completely successful salesmanagement is, first of all, 
 a matter of point of view. Things are possible or im- 
 possible according to how the salesmanager looks at them 
 and acts about them. 
 
 It is quite natural that this should be so, because selling 
 success must depend primarily on states of mind. Every 
 other department of business deals mainly with things that 
 can be seen and measured and touched. The point of view 
 is not so important as the technical facts. Selling, on the 
 other hand, deals almost exclusively, with ideas, images, 
 imagination, and the semi-mysteries of the human equa- 
 tion. People buy what their feelings, ideas and desires 
 suggest. 
 
 A salesman does not, primarily, sell merchandise to a cus- 
 tomer — he sells rather the hope and expectation of profit 
 or pleasure or something else. Therefore a salesmanager at 
 the very outset of his job faces subtleties and puzzles of the 
 hardest possible kind, with only exceedingly limited tech- 
 nical knowledge available. His attitude toward these 
 problems — his conscientiousness in securing all such facta 
 which are possible to get before making a judgment; his 
 
 1
 
 2 MODERN SALESMANAGEMENT 
 
 open-minded zeal for probing to the bottom of true condi- 
 tions ; his courage, his persistence, his energy and resource- 
 fulness — all these qualities count in a manner far more 
 telling than in most other executive positions. It is for 
 this reason, perhaps, that successful salesmanagers as a class 
 are usually splendid "men of parts," for the work posi- 
 tively demands broad and varied powers. 
 
 Almost every kind of information about people and 
 economic conditions bears some possible meaning to the 
 salesmanager. He is, in fact, a student and a shaper of 
 economic life, because if his job were stated in plain lan- 
 guage, it would be that he is an educator of the public 
 to an improved idea of some sort, which it is slow to adopt. 
 (The public is, of course, practically always slow to adopt 
 ideas, and always requires to be "sold" by a gradual proc- 
 ess of education.) 
 
 A point of view may be, and often is, the only thing 
 standing in the way of decisive sales success. This is 
 illustrated by the great slowness with which adding ma- 
 chines were bought when they were sold merely as a me-' 
 chanical device which would add and multiply. When the 
 adding machine selling idea was hitched on to the idea of 
 better business method and system (in which the adding 
 machine naturally played an essential part) sales began 
 immediately to spurt forward. The change had been sim- 
 ply one of the point of view of the salesmanager, who 
 himself had merely successfully analyzed the point of 
 view of the customer. The frontal attack with mechanical 
 arguments of excellence had produced little results; there- 
 fore logic suggested an indirect attack with a general idea 
 which would of necessity carry the adding machine with it. 
 
 2. Personal Qualities Essential in Salesmanagers. — In the 
 light of the above statements regarding the importance of 
 point of view, it is easy to see why in the past such great 
 stress has been laid upon the personality of the salesman-
 
 THE SALESMANAGER HIMSELF 3 
 
 ager: Personality is so closely bound up with point of 
 view. Naturally, however, some crude rules-of-thumb 
 ideas have prevailed. For instance, it has come to be a 
 tradition that first of all a salesmanager must be "an op- 
 timist"; otherwise he would too easily be discouraged. 
 This tradition is a sample of the half-truth which circu- 
 lates in the name of knowledge of salesmanagement. Op- 
 timism may be as great a drawback in successful salesman- 
 agement as pessimism, although this fact is not generally 
 recognized. Given the other qualities which make suc- 
 cessful salesmanagers, a pessimist will outdistance an opti- 
 mist, simply because, not having so great a faith in magic 
 and in luck, he will work the harder and look facts more 
 squarely in the face. 
 
 The same is true of some of the other qualities which 
 tradition attributes to the successful salesmanager, such 
 as "enthusiasm" and "confidence in himself." These 
 qualities have their importance and worth, and have made 
 profit for many businesses through their sheer, unintelli- 
 gent force ; for of course enthusiasm and confidence in 
 one's self have a certain amount of propelling power. But 
 it should be clearly understood that these "qualities" are 
 really not consciously controllable qualities at all, but 
 rather emoiions. Like all other emotions, therefore, they 
 are raw materials for the directing power of will and in- 
 telligence to use, but are very uncertain and inadequate 
 when depended upon alone. It is because of this fact that 
 salesmen and salesmanagers have the reputation of being 
 highly temperamental, with many "ups and downs" and 
 tender sensibilities. The blunt truth is that while success 
 may be obtained from salesmen who have these emotions, 
 if guided by a will and an intelligence, nevertheless no 
 really important enterprise of selling can be made per- 
 manently successful by dependence on a salesmanager who 
 has such qualities alone. Wherever may be found sue-
 
 4 MODERN SALESIVIANAGEMENT 
 
 ccssful salesmanagers possessing these qualities, without 
 also dominating intelligence and will, there is sure to be 
 found an executive higher up who supplies the deficiency. 
 In fact it is a common situation (and an unsound one) 
 to find a salesmanager who has only part of the right 
 mental equipment for salesmanagement, while an executive 
 higher up is the real brains and directing power. 
 
 The really able and successful salesmanager, who is self- 
 propelling and self-sustaining, and who has all the ele- 
 ments which his work calls for, needs or must have the 
 following qualities and abilities : 
 
 1. Cool, analytical intelligence. 
 
 2. Strong, dynamic will. 
 
 3. Trained merchandising instinct. 
 
 4. Organizing ability. 
 
 5. Capacity for understanding the consuming public 
 and general human nature. 
 
 These are the vital and decisive characteristics. There 
 are of course other qualities which are important, such as 
 personality, special experience, etc. 
 
 What is desired here, however, is to emphasize the point 
 of view which is so all-important in salesmanagement suc- 
 cess. Salesmanagers who lack some of the less important 
 qualities may still achieve striking success if they have the 
 qualities and points of view above outlined; whereas un- 
 less they possess such qualities and points of view they 
 are very likely to fail, or at least to fall short of possible 
 success. 
 
 While it is quite true that few men acquire the above 
 mentioned qualities late in life and are usually bom with 
 aptitude in these directions, nevertheless it is exceedingly 
 incorrect to say that salesmen and salesmanagers are 
 ' ' born. ' ' Many who are bom with aptitudes for the above 
 qualities are nevertheless poor salesmanagers, because
 
 THE SALESMANAGER HIMSELF 5 
 
 training and coordination of ability are far more impor- 
 tant than the mere aptitudes alone. 
 
 3. The Analytical Point of Yi&w. — Whenever any piece 
 of work has difficult and intangible elements in it, anal- 
 ysis becomes the primary requirement of success. This 
 is decidedly the case with salesmanagement, as it is now 
 required in a country like ours where selling is completely 
 national and even international, and where economic con- 
 ditions, laws and competitive strategy invariably compli- 
 cate any selling situation. 
 
 An unanalytical salesmanager whose chief asset is en- 
 thusiasm, optimism and confidence is quite able to mal^e 
 a good showing in purely local territory, or in a limited 
 territory the salesmen in which he can frequently person- 
 ally inspire. But he quite naturally finds himself beyond 
 his depth when asked to cope with markets far away, 
 conditions foreign and unknown to him, and with intri- 
 cate organization and distribution questions, to say noth- 
 ing of subtle public psychology factors which are too deep 
 for his visual and personal type of mind. He cannot 
 understand what he does not see concretely before him; 
 he has not a mind that can generalize and synthesize. 
 
 The conditions of marketing to-day create a hundred and 
 one general problems, calling for wise practical thinking. 
 Where the old type salesmanager could decide on a basis 
 of temporary expedience, the new type salesmanager must 
 decide on a basis of enduring principle. In a modern 
 selling and distributive organization too many forces of 
 importance must be balanced to admit of the use of much 
 expedience. Principle alone can harmonize and reconcile 
 warring elements. Sometimes compromise is entirely in- 
 advisable and impossible, and long and expensive battles 
 for a principle must be waged — like the battle which a 
 great breakfast food house fought for years against quan- 
 tity price. It takes wise and patient analysis to reach
 
 6 MODERN SALESMANAGEMENT 
 
 important conclusions on principle, or to adjust standard 
 commercial principles and policies to particular situations. 
 It takes also courage and vision and long-range planning. 
 
 It is a truism, therefore, that success in salesmanship 
 is largely in ratio, first, to the faculty for successful anal- 
 ysis ; second, to the power of shaping correct policies based 
 on such analysis; and, third, to campaigning ability to 
 carry out such policies. 
 
 Successful salesmanagers to-day, therefore, are either per- 
 sonally acquiring this ability of analysis, or if they pos- 
 sess little of it, are supplementing themselves with the 
 best facilities and talent for analytical ability. Not only 
 the broad scope of selling and the complications of dis- 
 tribution demand this analytical ability, but also the 
 growth of the business. Size alone creates its own compli- 
 cations. A small business has a less apparent need for 
 analytical ability (although in reality its need is even, 
 greater). But a big business just naturally brings to the 
 salesmanager's desk each day questions which are not only 
 Greek to any but an analytical mind, but are also ques- 
 tions upon the answers to which the company may hinge 
 the expenditure of hundreds of thousands of dollars. 
 Error of judgment may be fraught with tremendous ex- 
 pense. As a matter of fact, it is now recognized among 
 the ablest business men as utterly wrong in principle that 
 any man or men, sitting around a table and using merely 
 their judgment (without the utmost data which may be 
 obtained) should assume to decide questions of importance. 
 The percentage of possible error is too great. No engi- 
 neering profession would dare so to risk its reputation. 
 Nor is it necessary. Modern investigation and analytical 
 facilities make it possible to get vital data on any com- 
 mercial subject which will bring business judgment far 
 nearer to 100% accuracy. Personal "intuitive" convic- 
 tion, pride of opinion and vanity of decision are not qual-
 
 THE SALESMANAGER HIMSELF 7 
 
 ities which make for highest business ability, especially 
 in salesmanagement. 
 
 In a later chapter will be given specific details and 
 modes of procedure in practical analysis; the author here 
 simply wishes to focus attention upon the part analysis 
 plays in the successful salesmanagement point of view. 
 Salesmanagement is, after all, rather comparable to mili- 
 tary planning; both depend supremely upon careful ad- 
 justment to fact. It is, of course, well known that no 
 general can make a more deadly mistake than to move 
 his troops and his guns upon the enemy on so puerile a 
 basis as optimism or enthusiasm alone. He must execute 
 every move from specific information, with a larger plan 
 of strategy and analysis both behind it and before it. The 
 greatest military strategists of the world war are men in 
 whom analysis is the very first quality that shines out. 
 The great objectives of salesmanagement cannot be won 
 by qualities less thorough or campaigns less seriously 
 planned and balanced than those of war. 
 
 4. The Dynamic Point of View.— Of almost equal impor- 
 tance to analytical ability in a salesmanager is the dynamic 
 power to act upon the findings of analysis. It is a com- 
 mon human failure to be dilatory about making a deci- 
 sion when the facts are in hand ; and also to act upon the 
 decision when it is made. It is said of Napoleon that al- 
 though his patience and energy in ferreting out facts was 
 very great indeed, his genius was most apparent through 
 his lightning-like rapidity in carrying into effect a policy 
 after it was decided. He rushed his decision into action 
 with the greatest possible haste, knowing that if action 
 on a decision is delayed, the decision itself soon becomes 
 obsolete. 
 
 Patience and indefatigable care in getting at the facts, 
 but tigerlike vigor and swiftness in executing decisions 
 are both vital elements of salesmanagement success.
 
 8 MODERN SALESMANAGEMENT 
 
 Whereas most other departments of business call for dy- 
 namic force only in a rather routine and limited manner, 
 salesmanagement, on the other hand, presents to the sales- 
 manager an unlimited challenge to conquer indifferent or 
 hostile markets ; a challenge which means nothing but en- 
 counter, struggle and supremo resistance in a cold and 
 unfriendly field. As in warfare, the offensive is ever the 
 strongest policy, and should never be relinquished if pos- 
 sible. The salesnianager, of all business executives, needs 
 to be "a fighter" — a will and a power for action. Many 
 concerns suffer from a lack of a completely dynamic policy 
 which may be due either to the salesmanager or the limi- 
 tations placed on him from above. Some such firms are 
 resting upon the achievements of a former executive head 
 who lifted the business to a certain level ; others have come 
 to success upon the high tide of a rising industry (such 
 as steel and machinery) and are doing well without putting 
 forth much dynamic effort. Others still are in the dan- 
 gerous state of having allowed a certain measure of suc- 
 cesss to drug their ambitions and energies. A firm which 
 has made money for its owners is apt to ask why it should 
 take the risk and make the extensions of effort and capital 
 necessary to reap the amount of success which lies ready 
 at hand. Others of still another variety suffer from in- 
 decisiveness, lack of working capital, nepotism, incapacity 
 or unwillingness to adjust to changed conditions, etc. The 
 tonic medicine needed most in all such cases is sheer dy- 
 namic force put just behind a well-planned campaign, 
 based upon intelligent analysis. 
 
 Business history is full of instances of the sales marvels 
 that are achieved by a proper combination of salesman- 
 agement qualities backed up by strong dynamic ability. 
 It is a commonplace of American business now to hear of 
 sales success against all odds and all predictions and prece- 
 dents. An instance is that of a firm which manufactures
 
 THE SALESMANAGER HIMSELF 9 
 
 coTintry-electric-ligliting plants. Against all precedence 
 and advice from those who were in the very best position 
 to know, this firm, headed by a salesmanager who had 
 both the analytical ability to see what needed to be done, 
 and also the dynamic courage to carry it through to a 
 finish, sold more electric-lighting plants in one year than 
 the scores of other manufacturers in the field had sold in 
 the past fourteen years. 
 
 It is valuable for purposes of study to dissect dynamic 
 power — the "punch," "pep" and "ginger" of common 
 business parlance. 
 
 Dynamic ability salesmanagement consists simply of a 
 plentiful supply of intense purpose and well directed en- 
 ergy for obeying the decisions which the analytical mind 
 has prepared. It is also very important to know that 
 scatteration of energy and will is the deadly enemy of 
 successful dynamic ability; and concentration of it is the 
 keynote of its success. Every ounce of such dynamic 
 energy which is not directed toward carrying out the 
 coldly analyzed plan is waste-energy. Salesmanagers some- 
 times fume and sputter with energy in a way that simply 
 scatters it into the air. They believe they are intensely 
 dynamic; not realizing that the most dynamic men are 
 usually the most calm and apparently cold men. A sales 
 organization is an almost uncanny way takes its cue from 
 the salesmanager. The result with a salesmanager who 
 cannot economize and concentrate is a great appearance 
 of motion, but very little result. Effective dynamic action 
 in managing a sales organization demands a coolly dynamic 
 salesmanager with his hand firmly but calmly on the throt- 
 tle, dealing out the "steam" with a calculating and eco- 
 nomical hand, with as little noise but as high effectiveness 
 as possible. 
 
 Just plain courage and "nerve" are more of the primi- 
 tive emotional qualities which in the past have been im-
 
 10 LrODERN SALESMANAGEMENT 
 
 portant in salesmanagement. To-day courage must be in- 
 telligent and nerve must be not a gamble but a cool cal- 
 culation from facts. To ''do and to dare" in selling has 
 a boyish merit, but usually is boyish also in its limited re- 
 sults, unless masterfully calculated. 
 
 It is the mark of a high degree of dynamic power when 
 a salesmanager refuses to be satisfied that a thing "can- 
 not be done" until he has all the facts; then tested the 
 facts, and then satisfied himself that he can't change the 
 facts. 
 
 It is quite true that with the greatly increased compli- 
 cations and factors entering into the broader and bigger 
 salesmanagement of to-day, it is a difiicult task to assemble 
 facts, make decisions, "sell" these decisions to the "men 
 higher up"; keep up a nation-wide organization to con- 
 cert pitch and use all the intricate arts and instruments 
 of salesmanagement in a well coordinated, business-like 
 campaign that hits the mark. Many able salesmanagers 
 can succeed when they are "given a free hand" to "work 
 in their own way" — simply because they cannot be dy- 
 namic except in an individual and personal way — which is 
 always a limited way. Such salesmanagers need to leam 
 not only to be dynamic themselves but how to induce dy- 
 namics in others and maintain them. In other words, how 
 to organize dynamic power, 
 
 5. The Right Organization Point of View. — Sales organ- 
 ization is the house sales policy, and the salesmanager 
 himself expressed in terms of so many additional hands 
 and feet and eyes and ears. The exact degree to which 
 these extra extensions of himself really represent his own 
 idea of power and punch, and the house plan and policy, 
 to that degree does a salesmanager have a good sales or- 
 ganization. The salesmanager who has not achieved the 
 organization point of view is doomed to experience a 
 limited and narrow scope career for himself and limited
 
 THE SALESMANAGER HIMSELF 11 
 
 sales for his house. A man has only two hands and two 
 feet and one tongue. The possible individual achievementt 
 of one salesmanager, no matter how gifted, are as limited 
 as the achievements of a one-man retail shop, unless he 
 can make an organization. 
 
 This is the Rubicon which many salesmanagers are 
 never able to cross. They may successfully manage a lim- 
 ited group of salesmen, but that is far from being suc- 
 cessful in an organization sense, or achieving the true or- 
 ganization point of view. A considerable number of sales- 
 managers rule the salesman under them not by organiza- 
 tion ability but by such other things as fear, imitation and 
 personal example, love and good fellowship. None of these 
 are to be relied upon as the right plan of salesmanagement, 
 for the very simple and obvious reason that they are too 
 personal — they are bound up in the personality of the 
 salesmanager, and disappear or change when a salesman- 
 ager changes — a most unsound organization situation. 
 
 Now, the very first organization point of view vital to 
 a truly modern salesmanager is to pare dowTi his personal 
 vanity, if necessary, to a point where he fully understands 
 that he represents a function in his firm's business organ- 
 ization; \iha,t unless he functions as a part of that organi- 
 zation solely in that organization's permanent interest, he 
 is disloyal to the organization. He is certainly disloyal 
 unless he binds his salesmen's loyalty to the house rather 
 than to himself. He must do this very definitely in small 
 things as well as large, and have almost a military pre- 
 ciseness and punctiliousness about it in order to succeed. 
 
 But even a good organizer of a group of salesmen 
 may fail to understand the great importance of sound 
 organization: (1) as applied to his office and branch or 
 district organization; (2) as applied to his distributors 
 (dealers and jobbers); (3) as applied to the coordination
 
 12 MODERN SALESMANAGEMENT 
 
 of all parts of his organization into a single hard-hitting 
 effort. 
 
 Some salesmanagers develop, consciously or uncon- 
 sciously, into one-sided organization men. They are good 
 organizers of salesmen, or neat and systematic ofSce exec- 
 utives but lack the other important elements, and rather 
 resent the suggestion to improve in these directions. This 
 is fatal and costly limitation. Organization is in itself a 
 rather extensive technical study, and is absolutely essen- 
 tial to broad-gauge salesmanagement success. Particularly 
 is this true of success in building and maintaining a dis- 
 tributive organization of dealers and jobbers, because they 
 are not the paid hirelings of the firm who can be ordered 
 to do things — their invaluable assistance must be won, 
 by the right policies. Discrimination, vacillation, tactless- 
 ness, delay, stiffness, etc., in policies and methods break 
 down an organization; while firmly maintained policies 
 of equity in terms and dealings, and courteous service- 
 ful relationships knit an organization together. 
 
 A successful broad-gauge salesmanager must have a very 
 keen constructive sense of organization in order to shape 
 wise and winning policies. Large business can only be 
 built, as a rule, by securing the maximum voluntary co- 
 operation of many thousands of retail and wholesale units. 
 How to inspire them all to work vigorously in unison is 
 the most important item in many a salesmanager 's pro- 
 gram. He can only succeed if he sees the matter from the 
 human and broad-gauge point of ^dew, deciding on prin- 
 ciple, not on expedience, and keeping his mind open con- 
 stantly to new aspects of the selling situation. 
 
 61. Trained Merchandising Instinct. — ^When the selling or 
 "trading instinct" in a man is analyzed it is found to be 
 simply close attentiveness to the possibilities for making 
 a desirable exchange of values. It is like the reporter's 
 "nose" for news — everything he sees or hears suggests
 
 THE SALESMANAGER HIMSELF 13 
 
 a posssible "story." So it is with the trading instinct — 
 everything suggests a possibility of a trade to mutual ad- 
 vantage. Starting with the boy impulse to trade a jack- 
 knife for a bag of marbles, the sense of comparison of 
 values, the weighing of relative human desires, one against 
 the other, is the same even when the trade is a railway sys- 
 tem for a quarter interest in a holding company. 
 
 In salesmanagement, the merchandising instinct ex- 
 presses itself in the capacity to know what the consumer 
 wants, what he can be induced to want; to know what the 
 jobbers and dealers will think and do about a merchan- 
 dising proposition. It thinks always in terms of actual 
 sales possibilities, not theoretical sales possibilities. It 
 visualizes the actual conditions of the field — on the counter, 
 in the home. The absence of this merchandising instinct 
 is the cause of the loss of countless thousands of dollars. 
 Every day corporations are started for the sale of some 
 invention or other product, which it is expected will reach 
 a large annual sale. The inventors, the incorporators of 
 a company, or the salesmanagers they hire, are usually 
 over-optimistic as to the merchandising possibilities of the 
 article. Then comes a gradual period of disillusionment 
 which is not at all necessarily due to the lack of salesman- 
 ship on the part of the salesmanager or his men, but first 
 of all due to a failure to sense the fact that the article 
 is not merchandisable in the degree hoped for, in its pres- 
 ent form, or perhaps in any form. 
 
 This merchandising sense (by which is meant merely the 
 instinctive feeling, and not the fact-knowledge which can 
 be secured to check up and prove or disprove this instinct- 
 ive feeling) expresses itself also in an experienced sales- 
 manager's sense of how to shape a selling policy, arrange 
 the distribution and work out the best selling arguments 
 for a product. He may be right or wrong in this sense 
 (and usually is just as often wrong as right), but the in-
 
 14 MODERN SALESMANAGEMENT 
 
 stinct guides him better than ignorance alone. A large 
 part of this merchandising instinct consists of a practical 
 conception of the redstances which are to be encountered 
 in any selling proposition ; that is, a feeling and a knowl- 
 edge of the inertia on the part of either the public or the 
 dealers or the jobbers; and therefore a practical appre- 
 ciation of the educational effort which must be put to work 
 to win. 
 
 All of this refers to the purely instinctive insight which 
 gives a salesmanager the right sense of practical values in 
 estimating any selling campaign; which decides whether 
 a thing is practical or impractical to push through further ; 
 whether it is worth while to put great expense, effort, 
 time and money along certain lines, or whether the sales 
 efforts or plans or the product itself is going counter to 
 the grain of human nature and of the merchandising sit- 
 uation. 
 
 A salesmanager may (and usually does) possess only a 
 limited merchandising instinct because of limited mer- 
 chandising experience ; but he can train this limited in- 
 stinct, not only with his own further experience, but also 
 with the knowledge of the experience of others he secures, 
 and the right attention to fact-study and sound deduc- 
 tion therefrom. Instinct is, after all, only unconscious 
 logic which is actually made more valuable if it becomes 
 conscious and bases itself on a reasoning process. So, even 
 though lacking in merchandising experience and instinct, 
 a salesmanager can at least carefully feel his way from 
 fact to fact and not make any vital mistake. Some veiy 
 able salesmanagers have no real merchandising instinct, 
 but have the good sense to understand this lack and be 
 especially careful in subjecting all their own judgments 
 and plans to the most careful, logical reasoning. On the 
 other hand, many of those who have real merchandising 
 instinct are far too confident of its infallibility; far too
 
 THE SALESMANAGER HIMSELF 15 
 
 impatient with utilizing information, when it can be ob- 
 tained, in place of mere instinct. 
 
 The temptation with men of well-developed merchan- 
 dising instinct is strong to regard it as a great labor 
 saver and personal mark of genius instead of the proper 
 point of view of it as a good tool to use when nothing! 
 better is ai hand. The general tendency of business, as 
 in every other human activity, is away from the instinctive 
 toward the reasoned out process.
 
 CHAPTER II 
 
 SHAPING THE PRODUCT FOR THE MARKET 
 
 7. The Correct Relation of the Article to the Sales Plan. — 
 The most modern view of selling requires that, as a princi- 
 ple of successful marketing, the article should be the result 
 of sales planning, and not sales planning the result of 
 the article. Old-time practice and principle took the ar- 
 ticle for granted, as the correct starting point for selling. 
 But as C. F. Post, of Postum fame, was fond of saying, 
 "anybody can hire people to make things — the real ques- 
 tion is always, what can be sold, not what can be made." 
 
 This point of view is intensely important, as it affects 
 the success of an enterprise from the very start. It is a 
 first consideration for any salesmanager, because after all 
 is said and done the article itself and the degree of its 
 adaptability to its market (as well as the degree to which 
 it has a logical market at all) predetermines the amount 
 of sales success that may be achieved. The selling of fur 
 coats in the tropics or radiators in Gehenna or electric 
 fans in the Arctic zone are obvious absurdities. But a 
 great many other absurdities of selling are in existence 
 just because they are not so obvious. A group of opti- 
 mistic investors in New England erected a good-sized plant 
 to make a certain ingenious office device and spent $150,- 
 000. Then it came out that six months' operation of the 
 plant would produce all of the machines which the market 
 could absorb for ten years, for the simple reason that only 
 offices with over 100 employees and doing certain types 
 of work could afford to own such a machine ! 
 
 16
 
 SHAPING THE PRODUCT FOR THE MARKET 17 
 
 Another large concern put out a machine and six months 
 later had to recall every one of them because they were 
 unadapted to average use. It is a pitiful waste of sales 
 genius to sell an article inadequately adjusted to the mar- 
 ket, and for this reason the counsel of the selling depart- 
 ment is becoming more and more dominant, not only in 
 the making of the article itself, but in its shape, features 
 and general aspects, and even in its wrappings. In fact, 
 a number of remarkable successes in selling are due solelj' 
 to a reasoning process that an article built to fit certain 
 consuming conditions would succeed. The inventors and 
 factory men in such eases are mere workmen building 
 something to order ; in fact, some prominent examples, such 
 as a well-known rubber heel and a safety razor, were 
 operated merely as selling corporations — purchasing the 
 article from factories on contract. 
 
 The goods to be offered for sale should be goods with 
 every selling advantage which study and experimentation 
 with the market can afford. Otherwise salesmanagement 
 starts with a handicap. 
 
 8. Experimentation and Market Test. — If an article is 
 new there should be no sales plan at all until the product 
 has gone through periods of test and tryout. Just as a 
 theatrical performance is first tried out in the small cities, 
 so a new article needs tryout. It should be tested under 
 all conceivable tests of tjnpical use, by all classes of con- 
 sumers with care and thoroughness, to insure reliable re- 
 sults. (See later chapter on investigation methods.) Ex- 
 pert observation by production experts of the results ot 
 such tests and investigations will then need to be coordi- 
 nated with wise sales judgment from the basis of human 
 nature, distribution and competitive conditions. 
 
 From such effort will evolve an article which really has 
 sales possibilities and which may be sold in the largest 
 quantity at the lowest cost, and with the most rapid turn-
 
 18 MODERN SALESMANAGEMENT 
 
 over. The mechanical engineers in Henry Ford's employ 
 at one time advised him to build and sell a six-cylinder 
 car. He did, forcing himself against his better judgment 
 to take the word of mere mechanicians. Finally he dis- 
 carded it, making a car which fitted sales conditions ; he 
 built a car at a price and with a performance which would 
 interest the greatest number of people who had the price 
 to pay for it. His own tests and experiments had shown 
 him that he must strike a shrewd balance between mechani- 
 cal excellence and price and quantity production. From 
 every point of view his judgment has been vindicated — 
 from the points of view of reputation, profit, service to 
 public, quantity and rapidity of sales development. He 
 was daring in this respect even to the point of uniqueness. 
 
 There is a very frequent clash between the inventors 
 or production executives and the sales executives concern- 
 ing the product, and it is very important that the right 
 principles be followed. Inventors and production execu- 
 tives frequently have an overfondness for mechanical 
 cleverness or completeness, or insist upon placing condi- 
 tions of production first. On the other hand, salesmen 
 have a tendency, because of the knocks and suggestions 
 they must listen to, of desiring frequent changes. Their 
 imagination makes them see a different product easier to 
 sell. 
 
 The true answer to conflict of this kind is expert im- 
 partial analysis, the results of which are carefully con- 
 ferred over in the presence of both production and sales 
 executives. The true average of consuming conditions, not 
 the special ideas or leanings of either sales or production 
 executives, should rule the product. The article needs to 
 be a balance between what the public will buy in quantity 
 and the best that can be produced at the price which 
 market conditions demand. It will be seen from this that 
 the outside point of view is two-thirds of the matter. All
 
 SHAPING THE PRODUCT FOR THE MARKET 19 
 
 business, in fact, is more and more being built, not from 
 within outward, but from the outside inward. 
 
 9. The Importance of Individuality in Merchandise. — 
 "People do not pay for the merchandise, but for the 
 individuality of the merchandise," says a prominent 
 retailer ; that is, for those points by which it distinguishes 
 itself in the minds of the customers from competitive 
 merchandise. 
 
 "When a purchase is about to be made, there are, as a 
 rule, a number of articles competing for the attention 
 (and the money) of the buyer. Among these is one that 
 has one or more points that stand out so strongly in the 
 mind of the buyer that he selects the article thus distin- 
 guished. These points may be : 
 
 Price Prompt Availability 
 
 Utility Familiarity through previous use 
 
 Convenience Recommendation 
 
 Appearance Advertising 
 
 Service Reputation of the maker or seller, etc. 
 
 Reliability 
 Many manufacturers do not take these factors into ade- 
 quate consideration. They make goods a certain way, be- 
 cause "they have always been made that way." 
 
 10. How to Develop Individuality. — The consensus of 
 opinion among those who have given this problem careful 
 study and have built their sales successes on it, has de- 
 veloped these basic principles : 
 
 a. The merchandise must have at least one vital point 
 in which it excels competitive merchandise. — These points 
 can be found by comparing the merchandise proposed with 
 similar goods on the market, or by ascertaining some 
 "unfilled want" in a given market. For example, the 
 success of Uneeda Biscuits is built principally upon their 
 crispness when they reach the consumer. 
 
 IngersoU watches made price their vital competitive ar-
 
 20 MODERN SALESMANAGEMENT 
 
 gument. It is actually wise to reshape merchandise which 
 has no vital arf^imentative individuality, so that it does 
 have an individuality. Often there is excellent sales in- 
 dividuality in the process of manufacture or quality which 
 has been overlooked. 
 
 h. The merchandise should have uses or points which 
 meet a popular tendency or general needs in a given field. 
 — For example, makers of automobiles with particularly 
 effecti%'e brakes can thereby cash in ^vith their sales efforts 
 on "safety first" movement. Another case in point Ls the 
 policy of makers of food products to exclude benzoate of 
 soda which was condemned by government chemists. Sub- 
 sequently government officials retracted this condemna- 
 tion, but the food makers who excluded the preservative 
 nevertheless scored a hit because they gave evidence by 
 their policy that they would take no chances with the 
 wholesomeness of their goods. The public naturally pre- 
 sumed these manufacturers would be equally conscientious 
 and careful in everything pertaining to their merchandise. 
 c. The merchandise should he attractive in appearance. 
 — The human instinct for neatness, beauty, attractiveness 
 of some sort (which varies with different classes of pur- 
 chasers) is so deep that it has been found advisable to 
 cater to it, even where appearance has no bearing on merit. 
 For instance, makers of tools give them "a highly nickel- 
 plated finish" — of no consequence except to attract the 
 eye. In the field of cosmetics it often happens that the 
 actual usable merchandise costs less than the package in 
 which it is put up. The principle of attractiveness is 
 sensed even by the fruit vendor at the comer who polishes 
 his apples. 
 
 The same principle is responsible for the use of "color- 
 ing matter" in food products. Color, in fact, plays a very 
 important part in the salability of nearly all merchandise.
 
 SHAPING THE PRODUCT FOR THE MARKET 21 
 
 The entire paint and varnish industry exists principally 
 because of the desire of the public for appearances. 
 
 Goods of small dimensions especially need the assistance 
 of attractive packapng. It has been found that retailers 
 select the neatest looking packages to display in the choice 
 places where patrons will see the goods (in the show win- 
 dow, the front countei*s, the most prominent shelves, etc.). 
 
 Appearance counts even in the purchase of raw mate- 
 rials. Sellers endeavor to have their samples show up in 
 the best possible form. 
 
 The reason appearance is discussed here prior to merit 
 is because that is the rotation in actual business life. Ap- 
 pearance makes the first appeal to the buyer, and if ad- 
 verse, no sale is made — the goods do not get a chance to 
 prove their merit. 
 
 If the goods are one of a family of products made 
 or sold by the same firm, they should be packaged or out- 
 wardly shaped or colored to give a unity of identity that 
 will connect them in the buyer's mind with other goods 
 of the same "business famil3^" 
 
 For instance, the scores of products made by Armour 
 & Co. generally have a label in which the same color (yel- 
 low) plays a prominent part. All the package products 
 of Babbitt & Co. (soap makers) have the same color 
 markings. 
 
 11. Making an Article "Fool Proof" and Convenient. — 
 Many articles do what inventors claim but cannot operate 
 in a practical way when used by the average user. In a 
 line where there are various competitive devices it is im- 
 portant to agree on standards. Nearly all typewriters 
 now employ the same keyboard. Those that had different 
 keyboards years ago had ditlficulties in finding a steady 
 market. Automobile makers got together long ago and 
 agi'eed on screw, wheel and other standards. One of tho
 
 22 IMODERN SALESIMANAGEMENT 
 
 strongest arguments in favor of any contrivance is the 
 claim that it has fewer parts than a competing article. 
 
 a. Goods should also he convenient to handle. — This is 
 another reason for packaging small articles. The conven- 
 ience works in two directions — it simplifies the work and 
 cost of handling the goods on the part of the store-keeper ; 
 it means greater convenience on the part of the purchaser. 
 The man who first put a wooden handle on laundry wax 
 made a fortune. Raisins have always been sticky and un- 
 sanitary to handle — a carton for raisins has met with in- 
 stant success. Convenience, cleanliness, appropriateness 
 and handy size and form are very vital sales factors. 
 
 &. Repair parts should he easily accessible, and service 
 available at a reasonable cost. — The less trouble the buyer 
 has to keep the article purchased in good working condi- 
 tion, the more favorably will he be inclined toward it. 
 One of the prominent automobile companies advertises, 
 "You are never more than a town away from a service 
 station of ours." Sometimes the buyer gladly pays a 
 higher price for a machine or other article simply because 
 he knows he can get repair parts more readily. 
 . c. If possible, make the article according to the ideas 
 of a recognized authority in its field. — This is particularly 
 the case in lines where buyers are accustomed to guide 
 themselves by the advice of authorities, as in foods, drugs, 
 architectural goods, etc. 
 
 12. Meeting the Consumer's Need. — Goods should never 
 fadl to he practically designed ta sv/it the characteristics 
 and needs of the class of buyers for which they are in- 
 tended. 
 
 Manufacturers constantly enter the export market, for 
 example, and fail to familiarize themselves with the pecul- 
 iarities of its consumers. 
 
 One reason why the Stetson Hat proved such a success 
 is because this manufacturer made a hat of high quality
 
 SHAPING THE PRODUCT FOR THE MARKET 23 
 
 and of a particular shape that seemed to fit the needs of 
 the Southern and Western cattle breeders. 
 
 Goods made for people of more primitive taste must be 
 more "flashy" in appearance than goods intended for peo- 
 ple of culture. Human nature and psychology principles 
 play an important part in the appearance of merchandise 
 and therefore must be carefully analyzed. 
 
 a. The goods should he planned and pachaged to per- 
 mit convenient transportation to the market amd the buyer. 
 — This is particularly important for sales in sections where 
 transportation facilities are limited, as in isolated parts 
 of the South and West, and particularly in Asiatic and 
 South American markets. Here American manufacturers 
 have been beaten by their European competitors who make 
 their goods so that they can be taken apart and transported 
 easily on muleback. 
 
 European manufacturers also go to greater lengths in 
 adapting the kind of package to the market for which it 
 is intended. For instance, it has often been found that 
 American export goods arrived at their destination in a 
 condition very much inferior to European goods, because 
 the latter were put up in damp-proof packages for the 
 ocean voyage. 
 
 b. Goods should he put up in units and with marks 
 familiar to the purchasers. 
 
 For instance, goods sent abroad should be measured ac- 
 cording to the metric system, or the sizes should be desig- 
 nated according to the system in vogue in the country 
 for which the merchandise is destined. Gauges sold abroad 
 should show the pressure in kilos or kilograms instead of 
 American pounds. 
 
 Sometimes the article cannot be made different from 
 competitive goods except by adding some minor points, 
 generally called "mere talking points." They impress 
 some peoijle; but as a rule do not deserve the emphasis
 
 24 MODERN SALESMANAGEMENT 
 
 jnit upon them. For instance, each make of self-playing 
 piano speaks about some patented tone-accentuating de- 
 vice, generally featured under a coined name. 
 
 In order to create talking points automobile makers 
 started the fashion of bringing out new models every year. 
 But the public is refusing to respond as liberally as it did 
 at first when automobiles were the luxury of the rich. 
 
 The modern business man no longer leaves the planning 
 of the sales qualities of his goods to chance, or to the 
 limited sphere of personal opinion within his own imme- 
 diate circle. Nation-wide investigations are carried on, 
 ascertaining opinions of consumers, dealers, jobbers, in- 
 vestigators, laboratory experts, finding all objections and 
 correcting them before the product is marketed on a 
 large scale. It is customary with some manufacturers to 
 make up a trial quantity of goods and place them with a 
 small number of consumers — aware of the circumstances — 
 for several years, before entering the market on a large 
 scale.
 
 CHAPTER III 
 
 THE SALESMANAGER'S RELATION TO THE FACTORY 
 
 13. Need of Synchronizing Making and Sellings — Evi- 
 dently an unusual amount of friction occurs in many busi- 
 ness houses between the selling and the manufacturing 
 departments. 
 
 This is natural because the two activities are opposite 
 ends of the pole in character and kind. Temperaments 
 diametrically opposed are as a rule represented by factory 
 and sales executives; the factory being accustomed to deal 
 with absolutely fixed quantities and qualities, while the 
 selling department necessarily deals in more intangible 
 matters. 
 
 Efficiency of administration of a manufacturing busi- 
 ness d'epends not alone upon volume of sales, but upon 
 volume coordinated and synchronized to factory produc- 
 tion at margins and terms which leave balances on the 
 right side of the ledger. This requires clear-cut organi- 
 zation and teamwork. 
 
 In fact, the situation is such that the entire manufactur- 
 ing policy requires to be guided by sales vision, whether 
 that sales vision reside entirely in the sales department or 
 in the officers higher up. 
 
 Thus, it comes about that it is important always to 
 establish the right relationship between production and 
 sales executives. 
 
 14. Degree of Authority of Sales Department Over Prod- 
 uct. — This being a greatly disputed point it seems best to 
 
 25
 
 26 MODERN SALESMANAGEMENT 
 
 give an adequate answer here in addition to the general 
 sales organization study given elsewhere. 
 
 The usual form of organization makes the general man- 
 ager the superior of both sales and production depart- 
 ments. Lack, however, of conferences held regularly- 
 enough and in the right spirit and manner, usually en- 
 tirely isolates both factory and salesmanagers from healthy 
 contact. The dealing with production matters is too often 
 regarded as a purely mechanical matter of mere perfunc- 
 tory interest to the salesmanager. Surprising situations 
 of mutual ignorance and negligence quite naturally result. 
 Both greatly need the discipline of frank contact and con- 
 flict in conference with the general executives present. 
 
 As to the blunt question of whose will should prevail 
 in a conflict, the answer is, of course, that the general man- 
 ager' must decide, by the extent to which he is willing to 
 0. K. the salesmanager 's suggestions — a question which de- 
 pends largely on confidence in the salesmanager 's judg- 
 ment and caution. 
 
 Daily or weekly conferences, however short, have a 
 gradual effect of moderating the ignorance and tempera- 
 mental differences, and of making it posssible for each 
 to reach logical compromises. 
 
 A general manager of a biscuit factory is confronted, 
 let us say, with the salesmanager 's desire to have a certain 
 biscuit placed in a tin box instead of paper, sold at 20 
 cents instead of 15 cents and given a better-looking label. 
 The factory man protests that the sale is too small in vol- 
 ume, paper and printing cost too high and the additional 
 labor too expensive to warrant such a move. The sales- 
 manager insists that a big sale can be developed if the 
 move is made, and warns that unless it is made the sales 
 will decline. After a discussion which comes to a dead- 
 lock, the general manager should give the salesmanager a 
 limited experimental time to prove his contention, over'
 
 SALESMANAGER'S RELATION TO FACTORY 27 
 
 riding to that extent the production manager. The point, 
 in other words, is that, until the salesmanager's judgment 
 is shown to be generally faulty and untrustworthy, his 
 recommendations should have right of way, for at least 
 experimental purposes. At the same time the salesman- 
 ager should be permitted to review the entire scope of 
 production work frequently from the selling point of view. 
 This would prevent such things as making enough stock 
 of one kind to last twenty years, simply "to fill in time." 
 The granting of some precedence of authority of the sales 
 department over production rests on the principle that the 
 factory must make only what the sales department can sell ; 
 whereas the factory dare not dictate to the sales force what 
 it miist sell. On the other hand, the sales department must 
 operate with knowledge of costs and other factors involved 
 and share the responsibility — even the financial cost — when 
 things are asked in the name of sales policy which from 
 a production and general management point of view are 
 abnormal and disruptive. 
 
 15. Relation of Production Time to Sales Policy. — The 
 chief logical demand from the factory to the sales depart- 
 ment is that the sales department must sell as near the 
 full capacity of the factory equipment and organization 
 as possible. If this is not done costs rise disproportion- 
 ately. 
 
 C. E. Knoeppel, a well-known production engineer, puts 
 it graphically: 
 
 The average salesman says: We make water-bottles, or 
 we make iron castings, or we make battle-ships, or what- 
 ever it is. I take issue here: I say that what a business 
 makes is T-I-M-E. The product you put out to your cus- 
 tomer is simply a composite of hours and minutes. It 
 doesn 't make any difference just what time it is ; whether 
 it is the time of the salesman, the machine or the opera-
 
 28 MODERN SALESMANAGEMENT 
 
 tive. But the big thing to concentrate on is the margin 
 of time. 
 
 I have seen cases where the factory was supposed to 
 keep certain dates, but it did not get its orders until so 
 long after that it was a practical impossibility for the fac- 
 tory to turn the order out on time. It was not altogether 
 the fault of the factory; it was the fault of some of the 
 departments that had things to do with the order before 
 it reached the factory. It is simply a question of manu- 
 facturing time — a question of so many hours and minutes. 
 There is another point to be considered and very few Sales 
 Managers consider it, although they are coming to recog- 
 nize it a little more as a fact, and that is, the size of the 
 plant and the capacity of its equipment. 
 
 A factory is made up of certain variables. You have 
 to consider the men, and in these days they are almost 
 impossible to keep as an organized body. Then there is 
 equipment, and new equipment is almost impossible to get; 
 there is material on hand, and it is very hard to get mate- 
 rial. These are all variables. And it is up to the factory 
 management to get all these things and work them into 
 sales conditions. 
 
 Here is a factory manager who has a machine in his de- 
 partment which has an overhead burden of one dollar an 
 hour, in addition to the labor and the material that it 
 uses. But for some unknown reason he finds that he can 
 only keep that machine busy five hours a day. The cost 
 of that machine, in a ten-hour day, becomes two dollars 
 an hour. He protests more strenuously : "I have my men 
 here ; I have my power, heat and light ; I have my repair 
 gangs and my oilers ; I am ready to operate that machine 
 ten hours a day; why should I be taxed at the rate of $2 
 an hour when the normal rate is only one dollar an hour?" 
 
 16. The "Standard Burden Plan" of Equalizing Idle Fac- 
 tory Time. — "Within the last six months I investigated
 
 SALESMANAGER'S RELATION TO FACTORY 29 
 
 three of the largest plants in the country," says Mr. 
 Knoeppel. "The first we studied had an average idle 
 equipment time of 40% and the time of 52%, the second 
 had an idle equipment time of 40%, and the third, the old- 
 est and best established concern in New England, had an 
 idle time of 30%. And yet these plants were clamoring for 
 more equipment, having an idle equipment time of 30%, 
 40% and 52%. 
 
 "A plant that is operating only at seventy per cent ca- 
 pacity and figuring its overhead on this basis will have 
 higher costs than if it were running at ninety per cent 
 capacity. The resulting higher prices will make it lose 
 business so that by and by it will be running at only sixty 
 per cent. As its business decreases its costs increaise 
 until a point is reached where it may be forced out of the 
 market. We solved this difficulty by devising a plan of 
 standard burden, what would be the normal burden or 
 what its average competitor would charge, at say, ninety 
 per cent capacity. Then we charge the burden acccount 
 with actual burden and credit it with standard burden, 
 crediting or debiting the difference monthly or every six 
 months to profit and loss. In this way an order ap- 
 parently taken at a loss, by adding the normal burden 
 rate, would really show a profit, and as more orders were 
 taken on this basis the actual burden would decrease in 
 proportion to the increase in total volume of production. 
 
 "The important thing for the Sales Manager in this 
 method of operating on a standard burden plan is that 
 prices are fairly constant, regardless of fluctuations in 
 volume. Figure the orders on hand in dollars and hours. 
 In classes, by dollars and by hours. It may pay to fool 
 the customer, but it does not pay to fool yourself." 
 
 17. Factory Capacity and Seasonal Variations. — The fac- 
 tory and general management has every justification in 
 asking that the sales department fit its sales plans toward
 
 30 MODERN SALESIVIANAGEMENT 
 
 two ends (1) to keep the plant going to capacity, and 
 (2) to maintain as nearly as possible a level demand, free 
 from as miicli seasonal variation as possible. It seems to 
 be the case that most plants have decided seasonal varia- 
 tions ; and often are closed entirely part of the year. Even 
 when the factory is operated continuously the sales vary 
 greatly from mouth to month due to trade custom, climatic 
 conditions, etc. In England and in Germany these sea- 
 sonal variations have been given more attention than in 
 America, and careful policies have been developed to *'fill 
 up the valleys," by the manufacture and sale of other ar- 
 ticles, or by more evenly distributing the manufacture. 
 This has been more easily possible in England and in 
 Germany because there no such rapid style and other 
 changes take place in demand. But the Avaste of great 
 seasonal variation is so great as to call for the most seri- 
 ous planning. Practically all concerns show a sharp de- 
 cline during 2 or 3 summer mouths. Part of the cause is 
 simply custom and prejudice — ^beliefs that goods can be 
 sold only at certain times. Such customs can often be 
 changed with decided benefit and no great effort. The 
 variations in many cases, of course, are quite natural and 
 necessary, and in such cases must be accepted, and the low 
 periods met either by a budgeted plan of production laid 
 out from the sales quota set for an entire year (see budget 
 form, page — ) or by a supplementary line of manufacture 
 to keep the plan and salesf orce going, A certain maker of 
 a novelty ice cream freezer has a unavoidable dull sea- 
 son ; so he deliberately planned another product, a patent 
 trouser creasing device. Both articles are sold through 
 the same distributors, and salesmen have no difficulty in 
 keeping busy all the year round. Every manufacturer 
 with a pronounced seasonal variation should have his case 
 reviewed by a sales analyst.
 
 SAI^ESMANAGER'S RELATION TO FACTORY 31 
 
 18. Multiplicity of Models versus Standardization. — War 
 time conservation stimulated many reforms in standard- 
 izing merchandise which will probably be permanent. 
 Paint manufacturers have reduced the number of standard 
 colors from 100 to 24; tire manufacturers have reduced 
 si'z.es from 287 to 9. Shoe salesmen in the past traveled 
 with trunkloads of samples of different models because 
 one dealer preferred shoes with fancy perforated tips and 
 another did not. To-day this is largely eliminated. 
 
 The competition in price through economies in quantity 
 manufacture has touched most industries, and even in the 
 automobile industry the competition for a new model each 
 year has subsided. The American people are not so naive 
 and do not crave novelty and mere variety in ornamenta- 
 tion as much as they once did. Greater understanding of 
 cost accounting has also opened the eyes of manufacturers 
 to the ruinous cost of multiplicity of models, designs and 
 varieties. War necessity in 1918 pushed such knowledge 
 so far that it was even the practice, as in England, to as- 
 sign entire mills to the making of a single design or type 
 of material, or even one part, whereas previously an entire 
 range of articles or designs were made in one mill. 
 
 From a salesmanagement point of view it is, at first 
 glance, very hard to have but one standard model or kind 
 to sell, especially if competition is ready to cater to the 
 customer's every differing whim. It seems to cramp sales 
 possibilities. But in reality there is an actual gain, because 
 of the high concentration in all respects. 
 
 The one really difficulty and important task in the case 
 of a standardized article in the face of competition with 
 variety is to ''sell" salesmen thoroughly on the merits of 
 this standardization, and to drill them to make full use of 
 the arguments for it, and to have never-failing courage to 
 meet properly the common desire for variety. 
 
 It is part of the general wisdom of salesmanagement to
 
 32 MODERN SALESIMANAGEMENT 
 
 emancipate a business as rapidly as possible from the 
 slavery to variety, change and special demands of custom- 
 ers. The factory always welcomes it, but it is human 
 nature for salesmen to wish to "play up" to customers by 
 humoring them with some special stipulation or digres- 
 sion from standard. Salesmanagers themselves are some- 
 times inclined to change their minds too frequently as to 
 changes, varieties and models and place a severe strain 
 upon costs. The answer again in such disputes is calm, 
 impartial investigation rather than mere opinion.
 
 CHAPTER IV 
 
 BUILDING A GOOD SALES ORGANIZATION 
 
 19. Correct Conception of Sales Organizations. — Sales Or- 
 ganization needs absolutely to be up to the measure of 
 the market in order to be efficient. It must be a tool which 
 can master the market. Therefore it must be built like a 
 technical article — it must be accurately engineered from 
 definite designs that fit the need. Unfortunately many 
 businesses have grown in a sort of haphazard and piece- 
 meal way. Like the small house we start in the country, 
 we add one lean-to, then another, and another, until we 
 have a series of unrelated lean-tos, but not a compact, 
 well-organized house. 
 
 The same thing often happens to the sales organiza- 
 tion. Instead of at the start properly building the or- 
 ganization to fit the market, mainy firms merely build a 
 series of lean-tos. This is nothing else but "shoestring 
 salesmanagement. ' ' 
 
 "What is demanded is a sales organization built to fit 
 the full possibilities of sales rather than to fit the hit-and- 
 miss accidents of sales; a sales organization that builds 
 up the industry and anticipates the future development 
 of that industry. Even if it is necessary to completely 
 "scrap" existing sales organization, it is vital to get the 
 right kind of organization. Sales organization is not a 
 bit different from factory equipment in this respect — it 
 frequently pays to make over the organization and bring 
 it up to date. 
 
 In addition to vision of sales development, any correct 
 
 33
 
 34 MODERN SALESMANAGEMENT 
 
 conception of sales organization must include clear-cut 
 knowledge of organization per se. In other words, a sales 
 organization needs not only sound plans and policies but 
 an understanding of what good organization is — any kind 
 of effective organization. There are a great many con- 
 cerns with clear conception of policy, but which suffer 
 from ineffectiveness of organization. Small enterprises 
 do not suffer so greatly from this lack, but larger ones 
 very frequently are limited by failure to grasp the special 
 technique required in any matter which calls for coordi- 
 nating the effort of many men and intermediate, indirectly 
 controllable factors. Therefore, good sales organization 
 depends perhaps first of all on observing the first prin- 
 ciples of organization, and in observing the etiquette and 
 the laws of organization. For this reason considerable 
 space will be given to the correct practical principles of 
 organization, even though these principles are applicable 
 to any department or to the whole of a business. 
 
 20. Different Forms of Sales Organization. — It is absurd 
 to prescribe any single type of ideal sales organization, 
 because there are nine broadly different methods of sell- 
 ing, each calling for radically different organization: 
 
 1. Contract selling, or selling to a small group of large 
 consumers. 
 
 2. Selling direct to a comparatively large number of 
 consumers. 
 
 3. Selling direct, through branch ofSces, to a large 
 number of consumers. 
 
 4. Selling in two or three or more ways simultaneously. 
 
 5. Selling to jobbers only, 
 
 6. Selling to jobbers mainly, but also direct to dealers. 
 
 7. Selling direct to retailers mainly, but also to some 
 jobbers. 
 
 8. Selling direct to dealers only. 
 
 9. Selling by mail.
 
 BUILDING A GOOD SALES ORGANIZATION 3r> 
 
 The aim, under any selling condition, is naturally to sell 
 as cheaply as possible, yet keeping the sales growing satis- 
 factorily. The strength of the resistance of the market 
 largely decides the choice of the above modes of sales 
 organization. 
 
 Different kinds of sales organization are demanded even 
 under the same class as outlined above, if the age, ambi- 
 tions and attitude toward the field differs. For instance, 
 one concern may have a highly aggressive policy calling 
 for a swift-operating, wide-extending and many-sided sales 
 organization, producing an average yearly growth of 30%, 
 whereas another concern in the same field — and possibly 
 doing a larger volume of business — may be entirely con- 
 tent, because of older prestige, temperamental aversion to 
 change or rapid growth, long enjoyment of good profits, 
 etc., to have a small organization yielding 10% or less 
 average yearly growth. 
 
 Therefore, not alone the form of selling, but the policy 
 of sales development must shape the sales organization. 
 If a concern is aggressive enough it may find it desirable 
 to break through old methods — to "annihilate time" — and 
 create an especially large and expensive sales organization 
 that will produce the effect desired — quite logically charg- 
 ing the extra cost to the general capital account, since the 
 work is an investment for future sales at less cost. 
 
 The typewriter and adding machine companies choose 
 to operate a highly expensive direct selling branch organ- 
 ization, first, because of the high importance of service to 
 users, and, second, because no other than directly con- 
 trolled representatives could cultivate the field so inten- 
 sively and aggressively. 
 
 On the other hand, as a contrast, a concern with enor- 
 mous country-wide sales, like the Cream of Wheat Com- 
 pany, does not employ a single salesman, and has a very 
 ismall selling organization, since it sells only through job-
 
 36 
 
 MODERN SALESIVIANAGEMENT 
 
 Big Deal 
 Work 
 
 Advert Islnf 
 Conference 
 
 Analysis 
 Conditions 
 
 ?actory 
 Conference 
 
 Closing 
 
 Sales 
 School 
 
 Quota 
 
 Plans 
 
 Sales 
 Convention 
 
 Selecting 
 Salesmen 
 
 Uspplng Out 
 Campaign 
 
 Sales 
 School 
 
 Closing 
 
 Sales 
 Convention 
 
 Sales 
 School 
 
 Checking 
 Eeoords 
 
 Sales 
 School 
 
 Map & TaclJ 
 Syster 
 
 Analysis 
 
 Sales 
 EeeordG 
 
 Catalogs 
 
 Dealer 
 Records 
 
 Chart 
 
 faking ■ 
 
 Corres- 
 pondence 
 
 Data 
 F'-se 
 
 Quota 
 Records 
 
 Foreign 
 Shippinp 
 
 Hiring 
 Dist. Staff 
 
 Routing 
 
 Planning 
 
 Crew Pol- 
 low Op 
 
 Ulssionary 
 Pork 
 
 STANDARD IDEAL SALES 
 
 bers and depends on consumer advertising almost entirely 
 to maintain demand. Nevertheless, other concerns in the 
 same position as Cream of Wheat, because of a different 
 attitude, may employ a large number of salesmen, "mis- 
 sionaries" demonstrators, and special detail men. The 
 question always is, how fitting or logical or profitable is
 
 BUILDING A GOOD SALES ORGANIZATION 37 
 
 Pom 
 Letters 
 
 Cooperation 
 Plana 
 
 Conferenooa 
 
 Sales Stlm- 
 
 Catalog 
 
 O.K. all 
 Copy 
 
 Vlnijow 
 Display 
 
 Inquiry 
 Handling 
 
 ORGANIZATION CHART 
 
 any given form of sales organization when matched care- 
 fully to the field situation and to the status, ability and 
 capital of the selling concern? It is not logical: 
 
 1. To create a sales organization capable of producing 
 more sales than can be adequately manufactured and 
 financed. 
 
 a 03 6.2.9
 
 38 ]\IODERN SALESIVIANAGEMENT 
 
 2. To create a sales organization without complete 
 leadership and adequate backing. 
 
 3. To operate a form of sales organization which will 
 antagonize the trade uselessly. 
 
 4. To form a sales organization with a mere idea of 
 "covering the field." 
 
 5. To start a sales organization too large in compari- 
 son with probable returns within a year; or too small in 
 comparison with desired returns. 
 
 6. To expect a sales organization to perform miracles 
 or to overcome grave inherent obstacles too soon. 
 
 21. Charting the Sales Organization. — There are logical 
 and practicable reasons why a sales organization chart 
 should be made for any sales organization — even a small 
 one. In the first place, it puts in tangible form in front 
 of all eyes the duties and relationships of individuals. It 
 eliminates possible misunderstanding and overlapping. It 
 gives each executive and each individual in the organiza- 
 tion a clear idea of the sphere of his action and his re- 
 lationship to other individuals. 
 
 The chart shown elsewhere of a standard sales organiza- 
 tion clearly demonstrates the value of such a device. To 
 the salesmanager himself, and perhaps to his assistant, all 
 the details of duties assigned and authorities granted are 
 clear without a chart. But it is for the reason that others 
 besides the salesmanager and his assistant need to knoAV 
 the organization, that a chart is valuable. The least im- 
 portant individual in a sales organization works better 
 when he can visualize his own place in the organization. 
 He can then see his work's relation to other work; a very 
 necessary thing to complete efficiency. 
 
 It is therefore yery advisable that after an organization 
 chart has been designed that copies of it be struck off 
 and given to each worker to keep and study. Anything 
 that can be done to foster and increase the sense of orgaiv-
 
 BUILDING A GOOD SALES ORGANIZATION 39 
 
 ization in the sales department is a great gain; for there 
 is no stimulation greater than the stimulation of work- 
 ing in well-guided unison. A sales organization chart does 
 what nothing else can do, not even talks by the salesman- 
 ager — it makes a picture of the organization, so that its 
 existence becomes visual instead of abstract. 
 
 The method of making such an organization chart is to 
 call in a competent sales organization specialist. Not an 
 organizer of salesmen, but a technician in general sales de- 
 partment organization. Not a mere chart maker, but a 
 competent sales analyst who can advise whether the ex- 
 isting form of organization is the best fitted to the situa- 
 tion. What is often needed is a competent survey of a 
 sales organization, which will examine it just like an engi- 
 neer will survey and report on a factory, or a public ac- 
 countant will examine the books of a firm. 
 
 It is often highly instructive to chart roughly the or- 
 ganization as its stands, showing all the criss-crossing of 
 lines of authority and function, as it depicts clearly the 
 waste motion and confusion that may exist, and the need 
 of immediate reform. 
 
 22. The Fixing of Authority and Responsibility. — ^What 
 are the practical elements in successful organization? 
 What are the basic points which demand attention and 
 effort? The following are the definite practical principles 
 for keeping an organization from degenerating into dis- 
 organization : 
 
 1. The duties as well as responsibilities and authority 
 of each worker should be clearly defined ; even in the case 
 of the least important member of an organization. 
 
 2. Workers in charge of specific duties should never be 
 given cause to have any doubt as to who is the superior 
 held responsible for that particular work. 
 
 3. Work of a given character, even when undertaken
 
 40 IklODERN SALESMANAGEMENT 
 
 by different groups of workers, should be under the gen- 
 eral supervision of one chief superior. 
 
 4. The work of one group should not in any degree 
 be duplicated by any other group of workers. 
 
 5, The work done by each group of workers should 
 function with that of other correlated groups. 
 
 The acknowledged principle behind the idea of organi- 
 zation is the division and fixation of resposibility. Intri- 
 cate work, it is found, cannot be successfully carried on 
 unless this principle is applied. 
 
 23. A Sales Organization Manual. — ^What is organization 
 responsibility? It is the obligation assumed or delegated 
 for the successful discharge of specific functions. Respon- 
 sibility may be divided into three divisions: (1) Planning; 
 (2) Direction; (3) Execution. 
 
 Each executive or employee is entitled clearly to know 
 the full details of all his duties and those of his co-workers 
 with whom he comes in official contact. 
 
 The best way to keep each employee informed of his or 
 her duties, according to the practice of many prominent 
 corporations, is by means of a sales organization manual. 
 It records, in an authentic and carefully planned manner 
 just what is expected of each worker. It should contain 
 detailed instructions for every worker in the department, 
 down to stenographers; accumulating the knowledge of 
 each worker by having these workers themselves suggest 
 revisions from time to time. The Manual should cover the 
 subjects of (1) house policy, (2) systems, (3) standard 
 practice details, in handling work, (4) house bulletins on 
 routine matters. Changes and additions in the rules or 
 tasks are conveyed by means of bulletins or notification 
 slips given to each employee concerned, and then made 
 a part of the manual, so as to be available for reference. 
 
 There should be demanded an acknowledgment, as an 
 evidence in writing, that the worker has read the manual
 
 BUILDING A GOOD SALES ORGANIZATION 43 
 
 and the current additions or notifications. Signatures on 
 sheets provided in the manual itself, with date, is an ap- 
 proved plan. 
 
 Such a sales organization manual is very distinctly dif- 
 ferent from a salesman's manual. A sales organization 
 manual is a purely organization matter, dealing with in- 
 ternal organization method, routine and instruction. 
 
 24. Overlapping of Duties and Authority. — This is an 
 extremely common form of waste and expense. A mere 
 title provides no clearly defined limits as to where re- 
 sponsibility begins or ends. 
 
 A clear-cut routine should be prescribed in the Sales 
 Organization Manual, and respected in practice; that is, 
 there should be no unwarranted assumption of authority 
 or functions, not even toward inferiors. Failure to observe 
 this rule destroys the all-important ''sense of respon- 
 sibility." 
 
 Experience shows that the most frequent clashes regard- 
 ing responsibility and function occur through the minor 
 duties which have not been clearly defined and about which 
 doubt has arisen, or where changing conditions have de, 
 veloped complications. 
 
 To avoid this, it is essential that executives keep close 
 watch on minor conditions and issue regulations to fit 
 them. 
 
 There should be no change in the assignment of duties 
 without due cause and proper notification. The principles 
 of organization are violated if the responsibilities dele- 
 gated to one person are assumed by another without proper 
 authority. 
 
 If experience proves that the assignment of certain duties 
 to certain employees does not work well, the necessary 
 change, according to the practice of leading corporations, 
 Is announced in writing, not only to the parties directly 
 involved^ but also to all with whom they come in contact
 
 42 MODERN SALESMANAGEMENT 
 
 in exercising the duties in question. The logic of this prin- 
 ciple is self-evident. Failure to observe it is sure to create 
 confusion and inefficiency. 
 
 25. Organization Etiquette. — There should be strict ad- 
 herence to business etiquette, when conditions compel the 
 assumption of another's responsibility. The zeal of an or- 
 ganization worker has a tendency to make him "over- 
 reach," in his activities. The "man below" wants to show 
 at every opportunity his interest in the work, his ability 
 and his fitness for promotion. This means a natural dan- 
 ger whereby he is apt to assume duties assigned to his 
 subordinates or his superiors. This happens particularly 
 when the worker "trespassed upon" is absent. 
 
 A similar situation arises on the part of "the man 
 above" who — feeling his responsibility for the work of his 
 subordinates — takes every opportunity to mix into their 
 work, and occasionally take it over himself, either all or 
 certain parts. 
 
 On the other hand, experience shows that a particularly 
 frequent cause of trouble is the "sidestepping" of an or- 
 ganization worker of his own responsibility through un- 
 loading it upon some one else. 
 
 If matters come up that need attention while the proper 
 party is not present, it is a rule in well-managed organ- 
 izations that whoever looks after such matters temporarily, 
 should do so in name of, and as though acting for, the man 
 regularly in charge of the particular task, and should 
 report and refer the matter to him at the earliest oppor- 
 tunity. 
 
 The following constitutes a simple but fairly complete 
 code of organization etiquette: 
 
 a. Use courtesy to all, equals and inferiors as well as 
 superiors. This means greetings, tone of voice in talking, 
 consideration for the personal comfort of all who enter 
 your office, whether visitors or employees.
 
 BUILDING A GOOD SALES ORGANIZATION 43 
 
 b. Don't adversely criticize any one in the presence of 
 others. 
 
 c. Don't use ungentlemanly language. 
 
 d. Respect the authority of others, and the personal 
 dignity of subordinates. 
 
 e. Don't criticize destructively. Criticize construct- 
 ively by suggesting how the error in question may be 
 avoided in the future. 
 
 f. Don't encourage gossip about fellow workers. 
 
 g. Don't countenance animosities or intrigues. 
 
 h. Give every one credit for his good suggestions. 
 
 i. Be as liberal in praising good performance as you 
 are in censuring bad performance. 
 
 j. If necessary to discharge or deprive workers of au- 
 thority, do so on the basis of business expediency rather 
 than personal failure. 
 
 k. Don't show partiality or favoritism or injustice 
 in any direction. 
 
 1. Don't let personal feelings govern your actions 
 against your better business judgment. 
 
 m. Promote on merit only, and give preference to your 
 own employees over outsiders, other things being equal. 
 
 n. Don 't belittle any one, not even the humblest worker 
 in your organization. 
 
 26. Loyalty and "Esprit de Corps" for Both the Firm and 
 the Department. — The feeling that makes workers proud, 
 glad and enthusiastic about belonging to an organization, 
 and willing to do their best for its success is of especially 
 great importance in a sales organization. Esprit de corps 
 is produced when the organization workers have the fol- 
 lowing ideas about their positions: 
 
 1. That it is a privilege, an education, and an advan- 
 tage to work for that particular firm. 
 
 3. That the firm appreciates their work and loyalty.
 
 44 MODERN SALESMANAGEMENT 
 
 3. That the firm is absolutely fair and can be depended 
 on to deal justly "with every one on MERIT only. 
 
 4. That the firm will reward merit without solicita- 
 tion on the part of the employee. 
 
 5. That the firm will give extra rewards for extra 
 merits. 
 
 6. That the firm will receive suggestions from any one 
 in its employ, regardless of their position. 
 
 7. That the firm intends to do its best to further the 
 general welfare of its employees. 
 
 8. That the firm, and all co-workers, observe the prin- 
 ciples of business etiquette. 
 
 9. That the rules made by the firm and the sales de- 
 partment are based upon reasonable business requirements 
 and principles. 
 
 27. Sales Conference Methods and Principles. — Perhaps 
 no other department of business so definitely requires con- 
 ferences as does a sales department — for the reason that 
 the aspects of selling are constantly changing. Conditions 
 in the field being of chief importance always, the sales 
 plans must constantly be readjusted; new plans must be 
 devised and new facts studied. The organization con- 
 stantly needs tuning up; special effort and teamwork is 
 constantly demanded for success. 
 
 Conferences between the sales executives within the 
 sales department, sales conferences between the chief execu- 
 tives and the other principal executives or directors of a 
 busir^ess, and conferences between salesmen or branch 
 managers and the headquarters staff are proven to be valu- 
 able. Some firms have even successfully inaugurated dealer 
 conferences, to which the distributors are invited. 
 
 "Whatever the conferences held, it is vital that they be 
 handled properly, for not only do they cost considerable 
 money to hold, but if they are mishandled they are just 
 as harmful as they might have been beneficial. Therefore,
 
 BUILDING A GOOD SALES ORGANIZATION 45 
 
 it is well to study some practical rules for conference 
 holding : 
 
 1. Meetings should be held regularly, on definite dates, 
 at definite hours and with definite fixed time limits. Defi- 
 nite effort should be made to keep within these limits. 
 
 2. The meetings should be extended only when the im- 
 portance and urgency of the matter for consideration make 
 it necessary. Otherwise it should be deferred ior the next 
 meeting or some special meeting to be held if the matter 
 is sufficiently urgent. 
 
 3. There should be maintained a definite schedule for 
 discussion, with sufficient elasticity not to choke off im- 
 portant developments. Some topic, not of immediate ur- 
 gency, should be held in reserve to fill in time not other- 
 wise taken up. 
 
 4. The entire success of the committee and conference 
 method lies in the skill of the presiding officer. The pre- 
 siding officer should be intelligently and courteously firm, 
 keeping the meeting to the schedule and on the subject. 
 In every discussion there exists a temptation to take up 
 time by tangent points of minor importance. Participants 
 should be made to stick to the point. 
 
 5. Every participant should be made to exert himself 
 and contribute actively to the meeting either in a leading 
 way or in the discussions. 
 
 6. Every task developed by a meeting that requires 
 future performance should be assigned to some partici- 
 pants so they can be definitely and personally held re- 
 sponsible for its execution. 
 
 7. It has been found well worth the cost to have in- 
 formal notes taken of the proceedings, with copies fur- 
 nished to the participants and to the executives (even if 
 they have not participated). In the course of the year 
 a volume of these minutes becomes a very helpful docu- 
 ment on the conduct of the business. Also it makes a
 
 46 MODERN SALESMANAGEMENT 
 
 permanent record of individual experiences which thus 
 become the fixed property of the firm. 
 
 8. Conference members should be tactfully coached in 
 public expression of ideas, and brief presentation of a 
 thought.
 
 CHAPTER y 
 
 PRICE-MAKING AND PRICE PROTECTION 
 
 28. Price, duality and Individuality. — "Price makes the 
 "market" was a commercial axiom in former days, when 
 price, as a rule, was the pivot around which sales turned. 
 To-day this is still true to a large extent among staples. 
 However, in the end, even among staples, it is recognized 
 that it is seldom the price, but the reason for the price 
 which determines the sale ; that is, the gain which the buyer 
 hopes to make by "parting with the price." 
 
 Price is determined by one or more of the following 
 principles : 
 
 a. The surest and quickest way of becoming independ- 
 ent of a fluctuating market is to give the article an indi- 
 viduality that permits establishing an individual price. 
 Even ' ■' Crystal Domino Sugar, ' ' sold in cartons, is retailed 
 at a uniform price. It has no competition in the opinion 
 of the housewife who has decided that she wants that par- 
 ticular brand. 
 
 b. The price must compare favorably, value consid- 
 ered, with the price of competitive goods. This does not 
 mean that the price must always be as low or lower 
 than that of the competitive goods. But if it is higher 
 there must be good cause for the difference in price in the 
 mind of the buyer. 
 
 People are not alone willing to pay a reasonable price 
 for standard qualities in merchandise but higher prices 
 for such additional factors as: 
 
 47
 
 48 IMODERN SALESJMANAGEMENT 
 
 1. 
 
 Reputation 
 
 2. 
 
 Purity- 
 
 3. 
 
 Accessibility 
 
 4. 
 
 Appearance 
 
 5. 
 
 Recommendation by friends or authority 
 
 6. 
 
 Security 
 
 7. 
 
 Convenience 
 
 8. 
 
 Social Prestige 
 
 9. 
 
 Style 
 
 29. Price in Relation to Manufacturing and Field Condi- 
 tions. — In setting the selling price of the goods, sufficient 
 margin of profit must be left not only to cover (1) the cost 
 of manufacturing, but developing and broadening a mar- 
 ket; but also (2) pay ample returns on the investment 
 in the business. 
 
 The policy of "charging what traffic will bear" is de- 
 clining, for the reason that it invites antagonism or ill will 
 on the part of the trade or the consumer. It also invites 
 competition to enter the field. The latter is the case in 
 the safety razor situation. 
 
 The modern price policy is to establish prices on a basis 
 that will net a fair return on the investment in the busi- 
 ness — and also provide amply for the overhead cost of 
 doing business and unforeseen exigency. 
 
 a. When there is a probability of change in price later 
 on, it is safer to start with a price that can subsequently 
 be lowered. Such a policy has always a highly beneficial 
 effect upon buyers. It is always more difficult to raise 
 the price than to lower it, as the former is likely to result 
 in the loss of part of the trade. 
 
 b. Keeping the price at a steady level increases the 
 good will of distributors and the public. This is particu- 
 larly true when the cost of raw materials or other items 
 is advancing. The Com Products Refining Company built
 
 PRICK-MAKING AND PRICE PROTECTION 49 
 
 valuable public confidence by not advancing the price of 
 Karo Corn Syrup when advance in raw materials tem- 
 porarily wiped out all profit. 
 
 Experience fully demonstrates that the cost of market- 
 ing goods is generally underestimated. This condition is 
 carefully watched by firms which have the proper con- 
 ception of sales cost. Investigation discloses that sales cost 
 
 NATIONAL PRICE ZONE MAP, BASED ON FREIGHT DIFFERENTIALS 
 
 now runs from 2% on very common staples to as high as 
 65% on some specialties. (See chapter on selling cost.) 
 
 c. The price must permit the distributor to make a 
 profit that is an inducement to him. 
 
 If the distributor is to be asked to do the larger share 
 of introducing or pushing the goods, he will naturally 
 expect a maximum margin of profit. If the manufacturer 
 expends money and energy sufficient to create an almost 
 automatic market for the goods, the dealer must be satis- 
 fied with a minimum profit. 
 
 The live distributor measures his profits, not only on 
 the percentage of profit afforded, but also on the turn-
 
 50 MODERN SALESIMANAGEMENT 
 
 over"; that is, tlie number of times he can turn over hia 
 investment on the goods within a year. 
 
 This is the principal reason why dealers will handle 
 well-advertised goods at a smaller margin of profit than 
 goods not so well advertised. There is more gain in sell- 
 ing 100 dozen of a given article a year at a profit of 50c. 
 a dozen than in handling a competitive article of which 
 only 25 dozen a year could be sold at a profit of $1.00 a 
 dozen. 
 
 d. The large area of this country makes it advisable 
 for manufacturers of articles in which freight or express 
 expense is an important factor, to establish "price zones," 
 that is, separate prices for separate territories. These 
 territories are carefully worked out from freight and ex- 
 press rates. 
 
 In some cases "traffic strategy" overcomes the competi- 
 tive handicap of higher freight rates. For example, the 
 Panama Canal now permits Oregon lumber to compete 
 in towns on the Hudson River with lumber from the South 
 and Middle West. The latter comes by rail, the Oregon 
 lumber all the way by water, being transshipped up the 
 Hudson River from New York. 
 
 30. Price Equality. — "Quantity Prices" should be uni- 
 form to the same class of buyers. Within the past few 
 years a new policy has sprung up in regard to quantity 
 prices. This has largely been the result of a strong public 
 tendency against business monopoly, and in favor of busi- 
 ness policies which stand for the greatest good to the great- 
 est number of people. 
 
 In years past no one questioned the principle that the 
 larger the order placed, the lower should be the selling 
 price. This was based on the theory that the cost of sell- 
 ing and handling the goods was thus reduced. The Kel- 
 logg Toasted Corn Flakes Company was the pioneer in a 
 different price policy which they called the "Square Deal."
 
 PRICE-MAKING AND PEICE PROTECTION 51 
 
 They have declared that the factor which should deter- 
 mine the price differential is not the quantity pur- 
 chased by a firm, but the character of the firm, as to 
 whether they are jobbers or dealers. 
 
 As a result of this policy the Kellogg Company charges 
 the large jobber the same price as the small jobber, and 
 refuses to give large department stores or chain stores a 
 price advantage over the smaller dealer. 
 
 Another modern tendency is to make preferential dis- 
 count allowances for sales cooperation "value received." 
 For example, a certain amount of window display under- 
 taken by the customer, or the operation of special plans, 
 or local advertising, or pushing the goods, or even a job- 
 bing distribution service, as in the case of chain stores, 
 is rated as worth certain scales of reduction in price, 
 thereby increasing the dealer's profit. 
 
 Regardless of the price policy adopted, the consensus 
 of opinion is unanimously in favor of making and main- 
 taining the same scale of prices to the same class of buyers 
 (within the same price zone). 
 
 The most convenient way to do this in lines consisting 
 of a large variety of items has been found to be through 
 the use of a gross price list. It features the goods at prices 
 considerably higher than those for which the goods are 
 actually sold. These "list prices" are subject to "trade 
 discounts." This practice greatly simplifies the handling 
 of catalogues and quotations. For example, a hardware 
 jobbing firm, with a catalogue containing thousands of 
 items, simply notifies a dealer that he is entitled to 40% dis- 
 count. If prices go up, they notify him that thereafter 
 prices are figured at 35% discount. The prices at which 
 the jobbers buy from the manufacturer are, in such a case, 
 50% or 60% off list. 
 
 31. Just Price Discrimination. — The "price discrimina- 
 tion" most generally in use is that based upon quantities
 
 52 MODERN SALESJ^IANAGEMENT 
 
 purchased. This has beeu found most satisfactory by the 
 majority of firms, when the schedule of discounts was so 
 adjusted that it permitted selling to retailers direct when 
 they ordered direct, at a price that protected the jobber 
 automatically because of the smaller quantities ordered 
 by the average retailer. 
 
 A large manufacturer of safety razors, an aggressive 
 advertiser, has this schedule : 
 
 On orders for less than 3 dozen and 100 dozen blades, 
 25% and 2i^ cash discount. 
 
 On orders for 3 dozen or more 25% less 10% less 
 2% cash discount. 
 
 Some firms make an additional price discrimination in 
 the form of a rebate, based upon the quantity of goods 
 bought by a customer within six months or a year. Other 
 firms give preferential discounts to customers w^ho carry 
 their complete line. Still others, particularly those sell- 
 ing through exclusive local agents, maintain a flat rate on 
 the presumption that if they have only one aggressive 
 local customer he W'ill secure all the business he can, if 
 encouraged by bottom prices. 
 
 Another large and well-known firm has established a 
 minimum gross sales total of $62.50 per order. Any cus- 
 tomer who buys above that is entitled to a jobbing dis- 
 count of 10%. 
 
 To summarize: prices and discounts are the platform 
 upon which to build a good distributive organization, be- 
 cause upon these hinge the willingness of large numbers 
 of dealers and jobbers to cooperate. 
 
 32. Fixing the "Re-Sale Price."— IManufacturers who 
 wish to build up a wide distribution of their products and 
 strengthen their good-will find it essential to establish a 
 ''fixed resale price" policy. If they do not succeed in 
 having their goods sold at uniform prices to the public 
 and in restraining the small group of retailers who injure
 
 PRICE-MAKING AND PRICE PROTECTION 53 
 
 standard articles by cutting the price, their goods are 
 eventually neglected by the 92% of retailers who, as in- 
 vestigation has shown, do not wish to cut standard prices. 
 
 Manufacturers who sell patented articles until recent 
 years have had almost unlimited rights to fix prices, 
 punish price-cutters as infringers and impose restrictions 
 not only upon dealers but users. The spirit of recent laws 
 has limited these privileges somewhat, but the ownership 
 of a patent still grants the right to control the price of 
 an article, although it is at present impossible to bring 
 action against the cutters. 
 
 The Victor Talking Machine Co. changed its plan so that 
 legally it did not even sell its machines to the public. It 
 leases them both to the retailer and to the public, thus at- 
 tempting to retain the right to fix prices and restrictions. 
 A decision has been rendered in the case of R. H. Macy 
 & Co., department store, against the Victor Co., upon this 
 method of maintaining prices. 
 
 However, the position of a maker of an unpatented 
 article is very different. The right to make a contract 
 direct with a dealer not to sell below the standard price 
 is a constitutional right that is not in danger. But only 
 those manufacturers who sell goods direct to retailers can 
 protect prices by contract, and only then where there is 
 no monopoly. AVhen goods are sold through jobbers or 
 a second middleman, the question of price contract be- 
 comes very complex and no case has yet been decided in 
 the Supreme Court in a way that has settled the matter 
 finally. 
 
 In the meantime, those selling through jobbers must 
 reply on (1) encouragement, (2) moral suasion, (3) re- 
 fusal to sell. 
 
 The exact policy of a house with regard to re-sale price 
 can only be fixed in consultation with both legal and mer- 
 chandising counsel. The legislative situation has of recent
 
 54 MODERN SALESIMANAGEMENT 
 
 years changed so frequently that no definite status is yet 
 attained, although the right to make a direct to retailer 
 contract or to exercise the right of choice as to whom to 
 sell, are fundamental rights. The June, 1919, decision of 
 the Supreme Court in the Colgate case thoroughly estab- 
 lishes the right of a maker to refuse to sell any distributor 
 he pleases. 
 
 33. General Profit and Price Policy. — There is no single 
 price policy that has been found perfect in all cases. But 
 the following principles or outlines of policy will be found 
 to be important: 
 
 a. When the goods have become firmly entrenched in 
 the minds of the public or the dealers, the manufacturer 
 can be more independent in his price policies than he 
 could otherwise. Thus 3 in 1 oil for many years before 
 an automatic demand had been created, allowed a jobber's 
 margin of 50% on the theory that it was payment for 
 help in establishing demand. Quite naturally now that 
 demand is well established such a margin would be ex- 
 cessive and was therefore reduced. 
 
 b. An arbitrary price schedule, with moderate mar- 
 gins, is almost impossible without the backing of a heavy 
 advertising campaign, as has been shown by the past ex- 
 perience of prominent advertisers. 
 
 c. If the margin to jobbers and to retailers allows in- 
 adequate profits, it acts as a brake on the sales. 
 
 d. If the margin allows too large a profit, it encourages 
 price cutting with its disastrous effects upon the reputa- 
 tion of the manufacturer and his goods. 
 
 To guard against this evil, for example, some firms limit 
 by agreement the lowest "cut price" at which their goods 
 should be offered. On goods retailing at 25c, they allow 
 a cut to 18c, so that their customers when necessary', can 
 compete with "cut rate" druggists or department stores. 
 
 e. The price schedule established by the manufacturer
 
 PRICE-MAKING AND PRICE PROTECTION 55 
 
 should provide for re-sale price as between jobber and re- 
 tailer, and a retail price at fixed standards for the same 
 territories. 
 
 Any break in this schedule is apt to cause trouble in 
 distributing organization. 
 
 f. In order to equalize freight charged, price should be 
 made to include the freight to the jobbing center nearest 
 the buyer; thus all jobbers are put on an equal price 
 basis. 
 
 The margins of gross profit generally considered fair 
 for the retailer is from 25% to 33% ; and for the jobber 
 from 10% to 25%, Naturally both classes find it to their 
 advantage to show that they should have a larger profit, 
 and an educative process is now going on to demonstrate 
 that rapid turnover and salability bring more profit in a 
 year than percentage of profit, and that both cannot logi- 
 cally be expected by distributors. 
 
 34). Special Margin Plans and Sliding Scales. — For exam- 
 ple, in the drug field there has been considerable agita- 
 tion for the "2, 4, 8" price policy. That is, druggists 
 prefer to buy for $2 a dozen, goods retailing at $3 a 
 dozen; for $4 a dozen goods retailing at $6, and for $8 
 a dozen goods retailing at $12, Manufacturers or job- 
 bers who "fall in" with this policy have an easier time of 
 it than those who do not. 
 
 35. The Psychology of the Retail Price. — There is a scien- 
 tific and an unscientific way of pricing an article for retail 
 selling. There is the raw "cut" price and the price that 
 calls forth least resistance. Actual experiment has shown 
 that more articles of the same sort can be sold at lie than 
 could be sold at 9c, because there is a stronger subcon- 
 scious appeal about a price which appears to be a cut from 
 15c to lie than one which appears to be only a cut of 
 one cent from 10c. 
 
 It is true that this smacks of misrepresentation, but as
 
 56 ]\IODERN SALES]\IANAGEMENT 
 
 long as the public reacts in this manner it is a factor which 
 must be considered. 
 
 Then there is also the problem of keeping the price in 
 the channels to which the consumer is used. It is often 
 wiser to raise the price of an article which you might be 
 well able to sell for 65c to 70c, if similar articles are being 
 sold at the higher price. It will arouse less resistance in 
 the mind of the consumer who expects to pay the higher 
 price for the article. At the same time, this may work the 
 other way, and you may be forced to lower your price to 
 meet the general market price of similar commodities. 
 
 Psychologically speaking, also, price actually determines 
 quality. There is the story of two clubmen who wagered 
 that solid gold sovereigns could not be sold for a penny 
 a piece. One of the gentlemen settled himself on a bridge 
 with a pocket full of perfectly good sovereigns and after 
 spending about three hours there, offering them to all 
 passers-by for the modest sum of one penny succeeded in 
 selling just two. They were too cheap, and when any- 
 thing is too cheap, people are naturally skeptical. 
 
 Prices do indeed determine quality at least in the mind 
 of the consumer, which is, after all, the main thing. It is 
 unfortunately true that unscrupulous psychological skill 
 may succeed in fooling the people for a while. But it is 
 suicidal to build business on such a basis. Sound and 
 lasting considerations are the only wise policies to consider. 
 
 Another bit of psychology of price has to do with the 
 matter of coins. The fewer number of coins required the 
 less the resistance. Thus the reason for public preference 
 for an article at 25 cents — a single coin — rather than 
 20 cents — requiring two coins. The matter of cents intro- 
 duces another element, however, which is apparently con- 
 tradictory. An article costing 29 cents (5 coins) is prefer- 
 able to any article at 30 cents (2 coins) but only because 
 the suggestion of a cut from the five cents unit of price.
 
 PRICE-MAKING AND PRICE PROTECTION 57 
 
 Where pennies are a factor, the number of coins is a sec- 
 ondary consideration — the number of coins operates only 
 in cases of coins not including pennies. The suggestion 
 of cut in price from a standard unit in price is then not 
 so pronounced. 
 
 Standard price units are great factors in merchandising, 
 as the 5- and 10-cent stores well demonstrate. The num- 
 ber of sales made at various price levels gives the clue to 
 the matter. There are at least 1,000 times more business 
 transactions at 5 cents than at any other price ; and prob- 
 ably 1,000 times more sales made at 10 cents than at any 
 other price excepting 5 cents. Almost any sacrifice short 
 of unbearable losses have been suffered by concerns during 
 the war period, rather than get away from well established 
 price units. 
 
 36. Merchandising a Price. — It is often a necessary part 
 of the sales effort to "sell" the price of an article — some- 
 times because it is so low — more often because it is higher 
 than common expectation or custom. H. J. Heinz is re- 
 ported to have told a salesman who complained because his 
 trade wanted a 10-cent can of tomatoes rather than the 
 Heinz 12-cent can, that his reply should be that a 12-cent 
 price with all it meant in extra quality was the very utter- 
 most argument the salesman had; that a 10-cent price and 
 10-cent quality would be the salesman's doom — he would 
 no longer have anything to sell that had the dignity of 
 quality — or the distinction of higher price which proved 
 it. 
 
 Both jobber, dealer and consumer must be sold the price ; 
 and a salesmanager needs to analyze most carefully the 
 resistance, if any, which his price encounters, and then 
 aggressively "merchandise" it. That is, make out the 
 right case for it — argue it and demonstrate its logic and 
 its meaning. Quite often this higher price line of argu- 
 ment is the very strongest possible sales argument.
 
 58 MODERN SALESMANAGEMENT 
 
 Association of ideas is the most graphic method of in- 
 directly merchandising a price. A well-known salesman- 
 ager used it for instance in selling chewing gum, not be- 
 cause the price required especial attention, but because any 
 price should be merchandised graphically. People gen- 
 erally buy gum because they see it. It was therefore 
 profitable to put it where they could see it, and at the 
 same time connect it up with the 5 cents that will buy it. 
 He displayed the packages of gum beside the cash regis- 
 ter and arranged that in all change a 5-cent piece ap- 
 peared. The psychologj^ of the thing — merchandise and 
 the money necessary to purchase it appearing so close 
 together — proved itself in an increase of about 100 per cent 
 in chewing gum sales. 
 
 37. Protecting Dealers and Jobbers Against Themselves in 
 Price Policy. — Every manufacturer should fix a specific 
 price for the re-sale of his merchandise, if only to fix an 
 understood profit to tiiose who must handle the article in 
 its journey to the consumer. He cannot rely on the turn- 
 over alone to repay the dealer. After he has fixed on a 
 fair profit on his product to the jobber and the dealer, he 
 can then sell them on the turnover and show them how 
 much can be made, over and above the first profit. 
 
 Such a policy of protection is necessary because of the 
 ignorance of the dealer which has to be reckoned with. 
 Manufacturers must realize that the average retailer is not 
 a merchant, in the true sense of the word — he is often 
 only a clerk. He does not apportion his expense in a sci- 
 entific way so that he knows which articles in his store pay 
 him a profit — ^he doesn't know how. It is much easier 
 if the manufacturer figures a profit for him in advance 
 on the merchandise, and then shows him how the turnover 
 will be just so much added profit. 
 
 Every failure to maintain a price policy makes the suc- 
 ceeding attempt more difficult.
 
 PRICE-MAKING AND PRICE PROTECTION 59 
 
 The resale price must be sold to the dealer. Ninety 
 per cent of dealers are already well sold, but the 2% make 
 the trouble. 
 
 Some jobbers may say that they cannot maintain prices ; 
 that the retailer won 't stand for it. Aggressive sales man- 
 agers meet this by sending men into the territory who suc- 
 cessfully sell at their prices, for cash, direct to the retailer, 
 and the difference between the retail and jobbing prices 
 is handed over, in actiuil cash, to the jobber who has been 
 accustomed to getting that particular retailer's trade. 
 This square but determined policy usually wins. 
 
 Over and over again the distributors may need to be 
 shown that the resale price means greater profit to them, 
 which is the only thing in which they are really at bottom 
 interested. A price policy is in reality only as good as the 
 salesmanagement behind it. 
 
 38. Zone System for Jobbing and Retail Prices. — Few 
 sellers of merchandise fully realize what an enormous 
 country this is. Much waste and inefficiency is going on, 
 due to neglect of the differing conditions of temperature, 
 freight haul, etc. 
 
 Following the scientific methods of the students of rail- 
 way rates, a number of manufacturers have been operating 
 successfully a zone system of prices which takes the place 
 of a uniform price maintenance plan, regardless of geog- 
 raphy. For many lines of goods this plan is very valu- 
 able and uniformly satisfactory to dealers. 
 
 The country is split up into six zones, designated by an 
 alphabetic symbol. For each of these zones a printed 
 schedule of both jobbing and retail prices are printed for 
 all numbers of merchandise sold. These prices are based 
 on carefully worked out freight averages. (A similar 
 plan is to have prices the same, but have different zone dis- 
 counts. ) 
 
 The following zone map is one used by a well-known
 
 60 MODERN SALESMANAGEMENT 
 
 manufacturer located in a central Ohio point, which is an 
 average manufacturing situation. Some of the zones seem 
 very arbitrary, but are nevertheless based on transporta- 
 tion factors. Eetail prices are made to vary slightly from 
 this zone plan, as per notation in the following boundary 
 descriptions — due to uneven jobbing reaches. Some crude 
 systems use only three subdivisions, or follow traffic associ- 
 ation zones, which, however, were not laid out for such 
 purpose. 
 
 A. — Jobbing prices must be maintained at jobbing points 
 in the part of the United States bounded on the west by 
 the ninety- fourth meridian (which passes through St. 
 Cloud, Minn., Fort Dodge, Iowa, and Richmond, Mo.) ; on 
 the southwest by the Missouri River and the Mississippi 
 River (including river points) ; and on the south by the 
 Kentucky-Tennessee and Virginia-North Carolina lines. 
 
 B. — Jobbing prices must be maintained at all jobbing 
 points between the ninety-fourth meridian (which passes 
 through St. Cloud, Minn., Fort Dodge, Iowa, and Rich- 
 mond, Mo.) ; and the Ninety-Seventh meridian (which 
 passes through Madison, S. Dak., Seward, Nebr., and Ma- 
 rion, Kans.) as far as the southern boundary of Kansas; 
 also in southern Missouri, in Tennessee, and the Caro- 
 linas. 
 
 Retail prices shown in columns A and B must be main- 
 tained in New England States, New York, New Jersey, 
 Pennsylvania, Delaware, Maryland, Virginia, West Vir- 
 ginia, North Carolina, South Carolina, Michigan, Ohio, In- 
 diana, Kentucky, Tennessee, Wisconsin, Illinois, Minnesota, 
 Iowa, Missouri, Kansas (east of the ninety-seventh meri- 
 dian), Nebraska (east of the ninety-seventh meridian). 
 
 C. — Jobbing prices must be maintained at all jobbing 
 points in the Dakotas, Kansas and Nebraska west of the 
 ninety-seventh meridian; in Arkansas, Louisiana, Missis- 
 sippi, Alabama and Georgia.
 
 PRICE-MAKING AND PRICE PROTECTION 61 
 
 Retail prices shown in column C must be maintained in 
 Georgia, Alabama, Mississippi, Louisiana, Arkansas, 
 Kansas (west of the ninety-seventh meridian), Nebraska 
 (west of the ninety-seventh meridian), North Dakota, 
 South Dakota. 
 
 D. — Jobbing prices must be maintained at jobbing points 
 in Florida, Oklahoma, Pacific Coast States, Denver and 
 common points. 
 
 E. — Jobbing prices must be maintained at jobbing points 
 in Texas and at Spokane, and common points. 
 
 Retail prices shown in columns D and E must be main- 
 tained in Florida, Texas, Oklahoma, Washington, Oregon, 
 California, Denver and common points. 
 
 P. — Jobbing prices must be maintained at Rocky Moun- 
 tain jobbing points. 
 
 Retail prices shown in column F must be maintained in 
 New Mexico, Arizona, Colorado (except Denver and com- 
 mon points), Utah, Nevada, Idaho, Wyoming, Montana, 
 all Rocky Mountain points. 
 
 39. Advanced Geo^aphical Price Equalization. — In cer- 
 tain respects, the zone system of price equalization has 
 not been satisfactory, though it is the best thing there is, 
 short of the radical step of freight prepayment. 
 
 This step has been taken by a number of concerns, 
 among them a famous breakfast food. Then prices are 
 exactly the same to all (even quantity prices having been 
 done away with) whether in Florida, Maine or California. 
 The price is "F.O.B. jobbing point," meaning any point 
 where a jobber may have a warehouse, or even (in 5-case 
 lots when the 100 lb. freight rate may be used to full ad- 
 vantage) sending the goods direct to the retailer for the 
 jobber. 
 
 The prices have been shaped up after a close study of 
 freight rate averages for a number of years, and risks 
 are calculated after the manner of insurance actuary sta-
 
 62 MODERN SALESMANAGEMENT 
 
 tistics. This policy is likely to gain more and more follow- 
 ers, as is also entire abolition of quantity prices. 
 
 The trouble with zone systems is twofold. Unavoidable 
 overlapping of zones, and impracticability of planning 
 zones which equalize transportation differences. The re- 
 sulting controversy is sometimes troublesome to handle, in 
 the case of very widely distributed goods.
 
 CHAPTER YI 
 
 THE SHAPING OF SOUND MARKETING POLICIES 
 
 40. The "Vital Need of Definite Sales Policies. — In any 
 
 undertaking which deals with so many human elements 
 and far-reaching factors and conditions, well-defined policy 
 is the foremost requirement. In such a complicated and 
 delicately balanced a task as salesmanagement, failure is 
 very likely to follow — 
 
 1. Absence of policy. 
 
 2. Lack of complete policy. 
 
 3. Weak or vacillating policy. 
 
 4. "Wrong policy. 
 
 5. Policies which are in existence but not applied and 
 operated. 
 
 6. Policies stupidly or bunglingly applied. 
 
 There are very few concerns which at any given moment 
 are not suffering to some degree from one or more of the 
 above ailments. Formulating and applying correct poli- 
 cies are about the hardest mental jobs which a salesman- 
 ager and his advisers are called upon to perform. It is 
 natural, therefore, that they be neglected in favor of what 
 look like more immediate and concrete matters of impor- 
 tance. There are always strong temptations to live in the 
 moment and use temporary expedience rather than wise 
 policy. In fact, it takes a certain breadth of mind and 
 business wisdom to realize that policies are necessary at 
 all; and a good deal of courage to sacrifice present gain 
 for the vague assurance of greater success through ad- 
 
 63
 
 64 MODERN SALESMANAGEMENT 
 
 herence to another policy. The typical salesman cast of 
 mind is particularly amenable to the use of mere expedi- 
 ency. 
 
 A sales organization is a disorganized mob without poli- 
 cies, and has no individuality without a complete set of 
 policies. Serious complications often arise which consume 
 much energy and time. It is not nearly so serious for a 
 live firm to have wrong policies as to have vacillating or 
 inoperative policies. A live finn needs only to be shown its 
 wrong policies to change them. The deadly thing is a 
 careless and dilatory attitude toward policies, and a ne- 
 glect to adhere to them rigidly. Policies are not policies 
 when not adhered to rigidly; they become effective and 
 beneficial only when operated with more than usual punc- 
 tiliousness in the exceptional and tempting cases, as well 
 as the ordinary situations. The disciplinary effect upon 
 an entire organization of well conceived and actively 
 operated policies is very great. The disorganizing effect 
 of policies neglected and inadequate is equally great. 
 
 The goodwill effect upon distributors, customers, and 
 even the effect upon competitors is far greater than is 
 commonly understood. Next to the honesty and integrity 
 of a house, its consistent adherence to policies (even when 
 the policies are disagreed with) brings respect and confi- 
 dence. It is the policy-less or vacillating firm which is 
 distrusted. A public man is judged and wishes to be 
 judged upon his policies. The same should be true of a 
 good sales organization. 
 
 41. Difference Between Policy and Principle. — Much con- 
 fusion exists in regard to the words principle and policy — 
 both of them important words in salesmanagement. The 
 definition is that a principle is a standard which should 
 never be lowered or deviated from, because based on per- 
 manent considerations. A policy, on the other hand, is a 
 line of action or idea which is built to fit a condition, and
 
 SOUND MARKETING POLICIES 65 
 
 not only maif, but should be changed or altered as soon as 
 conditions change. 
 
 A firm should carefully separate its principles and poli- 
 cies and educate everyone to understand the difference. 
 Honesty is not a policy, it is a principle. A firm may have 
 deep objections on principle to such practices as rebatingj 
 secrete commissions, inside prices to special favorites, etc. 
 On the other hand it may be a pali-cy of the firm to guar- 
 antee goods in a certain way, or to maintain a certain 
 service plan, or dealer cooperation method. 
 
 Principle concerns itself with matters of fundamental 
 importance — policy with details of immediate importance 
 and expedience. Policies may be operated because of 
 certain principles held by the firm, but policies always re- 
 main policies nevertheless, because they deal with detail 
 application of principle. 
 
 In sales conferences it is always important to keep 
 these distinctions in view, for very strong temptations 
 constantly arise and tend to make principle and policies 
 yield. Change in policy is always debatable, but change 
 in sound principle, never. Many a salesmanager has been 
 shipwrecked on this question — yielding ground against 
 principle, only to find what everyone else finds out, that 
 principles cannot successfully be flouted in the long run. 
 Secret price concessions finally disorganize a busmess ; 
 so does toying with the dazzling rewards of pure expedi- 
 ence and the paying double and triple later. 
 
 A clear sense of distinction between policy and principle 
 soon brings order out of chaos and solves many an appar- 
 ently hopeless situation. Many bad snarls in disputes 
 between distributors or salesmen or between department 
 executives unravel themselves as soon as the policies are 
 disentangled from the principles involved, as soon as defi- 
 nite policies and principles are formulated. Many con- 
 cerns have never given any conscious thought to the mat-
 
 G6 MODERN SALESMANAGEMENT 
 
 ter of policies and principles, beyond verj^ elemental things. 
 Consequently they are operating without a clearly defined 
 attitude on many matters of importance which affect them, 
 and as result they are rather characterless and ineffective. 
 
 Lack of policies and principles may be even more harm- 
 ful than if they are mixed up or unusually selected. A 
 thing which has some definite direction, however wrong, 
 is better off than something without direction. 
 
 42. Matters for Which Policies Are Important. — As many 
 businesses grow more or less like Topsy, in a careless and 
 casual manner, adopting policies only, when they feelj 
 compelled to by pressure, it is valuable to examine a list 
 of the most important items which call for policies. 
 
 This list might very well be regarded as a check list 
 for any firm to hold up the mirror to itself to discover if 
 it has adequate policies on all the points requiring policy. 
 These points are: 
 
 1. Standard character of the service or the goods sold. 
 
 2. Guarantee to go with the article, and general con- 
 sumer policy. 
 
 3. Price, price protection and scale of discounts to be 
 maintained. 
 
 4. Experiment and analysis upon which article is de- 
 veloped or based. 
 
 5. Finishing, shaping and packaging of article. 
 
 6. Claims made for goods. 
 
 7. General type and personality of the business. 
 
 8. Policy of development, growth, expansion. 
 
 9. Policy toward competitors. 
 
 10. Policy toward trade and distributors. 
 
 11. Policy toward employees. 
 
 12. Policy toward methods of accounting. 
 
 13. Financial policy. 
 
 14. Credit policy.
 
 SOUND MARKETING POLICIES 67 
 
 15. Purchasing policy. 
 
 16. Policy of salesmanship and sales method. 
 
 There are, of course, many more matters — some equally 
 important, but mostly detail matters — coming under the 
 above subheads, which also require policies. The firm 
 which has sound and complete policies on the above mat- 
 ters may be said to be up to par on policy. 
 
 43. How to Measure the Efficiency of a Policy. — Policies 
 are often too quickly and frequently decided. It is for- 
 gotten that since policy is next in importance to principle, 
 there are many considerations which need attention before 
 a policy can be shaped finally. 
 
 What are the tests for sound policy? The following 
 are the principal ones: A sound policy should be 
 
 1. In accord with legislation and social and economic 
 conditions. 
 
 Example: Goods known to have been made in sweat- 
 shops or without meeting the requirements of food or drug 
 laws are not popular. Goods sold in contravention of laws 
 discredit a firm. 
 
 2. In accord with the tendency of the time, but not too 
 far ahead of the times, before the public is "ripe" for it. 
 
 Example: Firms gain public good-will by making it 
 known that they take a close and deep interest in their em- 
 ployees. 
 
 3. The policy must be stated clearly and concisely; the 
 simpler and shorter the better. 
 
 4. It should be more liberal than that of competitors. 
 This is one of the surest ways of triumphing over competi- 
 tion without cutting prices, or even at higher prices. 
 
 Example: If one firm guarantees "unconditional satis- 
 faction" it will draw customers away from the competitor 
 whose guarantee is hedged about with "ifs" and "condi- 
 tions."
 
 68 MODERN SALESMANAGEMENT 
 
 5. It should be far-seeing, so that tlie firm will benefit 
 by the development of future tendencies either of the pub- 
 lic or the trade. 
 
 Example : "When Mr. Carnegie made his most promising 
 assistants partners, a less farseeing chief would have 
 feared to give away too much of his profit, but Mr. Car- 
 negie's success proved his judgment correct. 
 
 6. It should be made known as widely as possible to 
 those interested. 
 
 (That is why large finns issue printed instructions and 
 manuals, why others advertise their policy liberally in pub- 
 lications, on packages, and through other mediums.) 
 
 7. It should be susceptible to changes when modified 
 conditions very clearly demand it. 
 
 8. Time and energy saving; clearing the air of mis- 
 understanding and permitting employees to act for the 
 company without making mistakes. 
 
 9. Compromise with the difficulties of a situation in 
 the way most completely to the justice and satisfaction of 
 all concerned. 
 
 10. Inspired respect and confidence in all concerned. 
 
 Any policy needs constant retesting for efficiency. Em- 
 ployees and others should be encouraged to register 
 "kicks" against policies, since they may give the cue to 
 real need for change or amendment, or else afford an- 
 other opportunity to ''sell" the houses' policy to someone 
 who is not ''sold." 
 
 Periodically, dealer or consumer investigations should be 
 made not only to check up the status of the houses' poli- 
 cies, but also to discover the relative rank of the house and 
 its competitors in the matter of reputation for its policies. 
 
 44. Featuring a Single Policy as a Keynote. — Because in- 
 dividuality is of decided value in selling, it is sometimes 
 highly logical and desirable to give a single important 
 policy limelight and advertising. In fact many businesses
 
 SOUND MARKETING POLICIES 
 
 69 
 
 owe their reason for existence to a policy; and therefore 
 such, a policy is the central pivot on which the business 
 swings. It naturally follows that the advertising of such 
 a policy becomes very important. For this reason slogans 
 are often made representing the keynote policies, and these 
 slogans are so much repeated that they become as familiar 
 as the name of the company. 
 
 Among the illustrations of such featured policies might 
 be listed the following: 
 
 Loft's Candy 
 Huyler's Candy 
 
 Eaton's Great Stores 
 
 H. J. Heinz Co. 
 
 Pullman Co. 
 Filene & Sons 
 
 Astor Estate 
 
 Worth of Paris 
 
 Simmons Hardware Co. 
 
 National City Bank 
 New York 
 
 Wood, Harmon & Co. 
 
 Hudson River Tunnels 
 
 "Penny a Pound Profit." 
 
 The name lends prestige to 
 the giver. 
 
 Cash by mail or over the 
 counter. 
 
 Purity and Great Variety 
 (57). 
 
 Courtesy. 
 
 Employees have a voice in 
 management. 
 
 Avoid making improvements 
 in real estate owned. 
 
 Creation of Innovation and 
 Advance Styles. 
 
 ''Recollection of Quality re- 
 mains, after the Price is 
 Forgotten." 
 
 ■Extreme Promptness 
 (achieved through a day 
 and a night staff). 
 
 Buy back real estate within a 
 (specified time from dis- 
 satisfied investors at orig- 
 inal price paid. 
 
 "Let the Public be Pleased."
 
 70 MODERN SALESMANAGEMENT 
 
 Although these firms' policies are often epitomized in a 
 slogan, yet in many eases (for instance the Pullman Co.) 
 very full details concerning their application are given in 
 the form of manuals. Investigation shows this to be the 
 most approved method. It is deadly for a much adver- 
 tised policy to be mishandled by an ill-trained employee. 
 If much is claimed, much must be delivered. At the same 
 time, empty slogans and mere generalities are harmful, as 
 they give an air of insincerity of policy, 
 
 45. Profiting by Competitor's Weakness of Policy. — Fre- 
 quently a weak point in a competitor's policies or lack of 
 policies will create a valuable opportunity to start a new 
 business. For example, the neglect of old-fashioned 
 cracker bakers as to the condition of their soda crackers 
 sold from large boxes or barrels, encouraged a group of 
 men, not cracker bakers at all, to build the wonderful suc- 
 cess of Uneeda Biscuit — with the policy of fresh, sanitary 
 untouched goods. 
 
 Still more frequently there is opportunity in a competi- 
 tor's weakness of policy to formulate a correspondingly 
 strong policy aimed to show up his weakness and capitalize 
 it. 
 
 A manufacturer who is autocratic and stiff in his policy 
 to distributors opens the way for success to another con- 
 cern who features liberality to distributors. A concern 
 which has no policy of communication with the public 
 shows a weak spot to a competitor who will reverse this 
 policy. A concern whose policy is high price and moder- 
 ate volume of sales opens itself to the competition of a 
 policy of low price and large volume. A firm which elects 
 to grow intensively, working one state or section at a 
 time, will likely inspire a competitor to cover the entire 
 country in order to be first to reach at least the most 
 strategically important territory. Further examples in 
 any number might be cited; but other aspects of this
 
 SOUND MARKETING POLICIES 71 
 
 subject are to be found both in the chapter on "Meeting 
 Competition" and also on "Sales Strategy." 
 
 A competitor's policies are important to know, first to 
 comprehend the exact nature of resistance to be encoun- 
 tered, and second, to be able sufficiently to individualize 
 and make distinctive and separate the policies of a house. 
 A firm's policies are in a measure what clothes are to a 
 man — they should be tailored to fit the individuality of the 
 house, and they are an expression of the house. 
 
 46. Policy and the Twenty-Year Point of View. — All busi- 
 nesses presumably are intended to continue for a long 
 time. However much profits for this year are desired, 
 continued profits are even more desired, because all busi- 
 nesses make considerable initial sacrifice in the hope of 
 future gain. 
 
 The correct outlook, in formulating policies, is there- 
 fore at least twenty years ahead. Policies which do not 
 take into account the forces which operate in a way to 
 affect business 20 years from now, are not really adequate 
 policies. Salesmanagement often suffers deeply from lack 
 of systematic looking ahead. A straight line toward a 
 sales goal, carefully developed and planned, is the short- 
 est distance and costs least money. There is no reason 
 why the specific development of a business should not be 
 blue-printed, year upon year, project by project, for 10 
 to 20 years ahead ; and then have sales executives endeavor 
 with that goal before them, to plan their work to reach it. 
 Goals of certain figures in volume to be achieved in a year 
 are planned for too brief a span — there should be a one- 
 year and a five- or three-year goal set. 
 
 There is no reason why a sales project cannot be planned 
 just as you blueprint a plan for your new house. You 
 know while the cellar is being dug just how the garret is 
 going to be. The details are all on paper, and a time sched- 
 ule of operations is not a theoretical proposition in busi-
 
 72 MODERN SALESMANAGEMENT 
 
 oesB, but a highly practical one. One concern which did 
 this had a blueprint made up with specific goals for each 
 year. In 1916 it had itself scheduled to open a San Fran- 
 cisco office, and did so. In 1917 it planned to have a dis- 
 tributing station in Kansas City — and now has one. It is 
 living up even in present unexpected conditions, to its goal. 
 This firm would no doubt have "let down" during business 
 depression periods if it had not been for the blueprint. 
 A copy of it was placed in the hands of every employee 
 and agent, thus most definitely committing the company. 
 Pride kept them following their program. Not only the 
 executives of the organization knew what they were plan- 
 ning to do, but each employee of the organization was 
 stimulated and keyed up to understand that if he fell down 
 in that companj^, it was he who kept the firm from its 
 legitimate growth. 
 
 Such policy has a galvanic effect on the entire organiza- 
 tion, since it makes clear the objectives, the long objec- 
 tives; and gives each individual that long distance per- 
 spective of the firm's destination which is so important to 
 an employee's right feeling. 
 
 No doubt some of the goals set for a 20-year period will 
 become obsolete and be changed. But this does not de- 
 tract from the merit of the plan, nor does it hurt the pres- 
 tige of the firm if the goal is somewhat changed, so long 
 as the sense of progress and forward movement is re- 
 tained. 
 
 A temporary policy may result in the need for enormous- 
 ly costly changes to be made after four or five years of 
 heavy investment in a policy which cannot be continued. 
 Now the need for such costly revision of policy might, and 
 probably certainly, could have been foreseen at the start 
 by a slight expenditure of time and money in securing the 
 right information on conditions and probabilities. A sales 
 counselor trained to analyze trade and merchandise tend-
 
 SOUND MARKETING POLICIES 73 
 
 encies, economic changes, legislation and the public tem- 
 per may be able to render enormously valuable counsel in 
 such long sighted planning. 
 
 47. Policies and the Human Equation. — Policies are really 
 merely the reflections of men. No matter how thorough a 
 set of policies are adopted, they will not ' ' stay put, " or be 
 carried through under storm and stress, unless the men are 
 as big as their policies. There are some business heads 
 who are known to be chronically unable to stand by a set 
 of policies ; they shift from one set to another with chame- 
 leon-like facility. They are afflicted with the habit of mak- 
 ing ready decisions in conference, only to neglect them 
 when they come out of the conference room. They "slip 
 back" on nearly everything really big and important 
 they decide. They are unable to "sell" themselves on 
 their own decisions ; or they procrastinate with fatal readi- 
 ness. A decision should be simultaneous with action, for 
 the conditions on which the decision was made change 
 rapidly. 
 
 It may be well to repeat here that some matters call 
 for principles and others for policies, and that while prin- 
 ciples should never be altered, policies ofttimes need amend- 
 ment and development to meet new conditions. Some men 
 are too stiff with policies and others altogether too liquid. 
 Some refuse to change policies because they confuse them 
 with unalterable principles, yet there are only about five 
 principles which a sales executive should set his face against 
 changing. They are: 
 
 1. To make a thoroughly good product and sell and ad- 
 vertise it for exactly what it is on principles of integrity and 
 honor in every contact with public or with distributors. 
 
 2. To regard reputation and good will for the house as 
 an institution as the most important ingredient in the mer- 
 chandise; and therefore look at all matters from the 20- 
 year point of view.
 
 74 MODERN SALESMANAGEMENT 
 
 3. To take a positive, aggressive, progressive and educa^ 
 tional attitude toward the market and the field. 
 
 4. To have a sale represent at least 25% service and 
 75% merchandise. 
 
 5. To keep ever perfecting and humanizing the or- 
 ganization. 
 
 That part of a salesmanager 's job which has to do with 
 securing sanction from executives higher up for policies 
 deemed necessary by him is another troublesome phase of 
 policy-making and policy-keeping. 
 
 No Salesmanager will rise very far if he has not got the 
 capacity to build up the breadth of vision of his own higher 
 executives. It is a necessary part of his technical training, 
 for the reason that sales conditions are so frequently for- 
 eign to the temperament of the men at the head of a busi- 
 ness, while the degree of courage, stamina, and forward 
 movement demanded by aggressive sales policies are such 
 that the salesmanager must needs be able to carry his 
 higher executives with him into somewhat radical moves 
 and expenditures based on conceptions of policy and in- 
 vestigative data. If he tries to "go it alone, ' ' he will find 
 that he will be tagged with a failure which he cannot well 
 explain to outsiders. He needs to be a big enough man to 
 widen the perspective of his superiors regarding the mar- 
 ket — in other words be a real, sure-enough salesman to sell 
 the sales work to the financial or manufacturing or ac- 
 counting types of mind he finds above him. In the solv- 
 ing of this problem he must respect information deeply, 
 use it strategically and know how to present it to men 
 higher up so that it will "get home." 
 
 48,. The Importance of the Man in Sales Success. — At the 
 very outset, sound marketing policy on the part of execu- 
 tives and boards of directors higher up should concern itself 
 with the personnel of its sales executive positions. It is not 
 sound marketing policy to get sales at any cost, or to get
 
 SOUND MARKETING POLICIES 75 
 
 sales too rapidly or on an unwise basis of argument or 
 campaign or by men who do not reflect the right spirit and 
 atmosphere vital to the houses' continued reputation. 
 
 Successful sales building, as in successful business build- 
 ing generally, depends on (1) men, (2) information and (3) 
 policies. The greatest of all these is men, for with men we 
 create organization, which is the most important of all 
 sales tools. From knowledge and experience with men's 
 character and insight we develop and maintain policies 
 and principles. A manufacturer's business is usually just 
 about as big as he and his executives and advisers, and no 
 bigger. But what is more important still, as soon as a 
 house grows bigger it needs to understand policy and prin- 
 ciple more in detail than ever, and also to appreciate the 
 need of men and information more than ever, so that it 
 will be capable of both formulating and carrying out pol- 
 icies of the calibre demanded. 
 
 A prominent manufacturer has said that even if his 
 factory should burn down and his records be lost or his 
 capital wiped away — still he could quickly duplicate his 
 business if he had his men, for they and their character 
 commanded the credit which would furnish new capital, 
 while their brains and salesmanship and capacity for mak- 
 ing and operating right policies would quickly duplicate 
 the work apparently lost. 
 
 In an astonishing number of cases scles success is not a 
 question of methods or plans to reach a given goal, but 
 always a question of m&n who will adequately, coura- 
 geously and intelligently carry them out. There are many 
 capable of laying out the lines of development and plans of 
 operation for any average business — but the real job is to 
 bring together and keep together the men who will work 
 out those plans with wisdom, skill and consistent aggres- 
 siveness. Salesmanagers who meet such requirements are 
 not plentiful.
 
 CHAPTER VII 
 
 ACHIEVING SUCCESSFUL DISTKIBUTION 
 
 49. Automatic Sales Through Smooth Running Distribu- 
 tion. — Quantity selling is the greatest modern profit pol- 
 icy — and quantity selling is only possible when backed by 
 a system, a machine, an organization of disiri'bution. One 
 box of cartridges sold each week in one store seems an 
 infinitesimal amount of business, but when there are 80,000 
 stores each selling for you at least that amount each, as has 
 the Remington Arms-Union Metallic Cartridge Co., large 
 aggregate sales become possible. The same is true of In- 
 gersoU watches. The little profit on a dollar watch is not 
 much ; but multiplied by the 70,000 or more stores that are 
 selling, the profit on the volume of business is large. 
 
 Automatic Selling is the ideal of all salesmanagement, 
 whether for a staple or a specialty, and it is the ideal to 
 strive for in building any distributive organization. By 
 "Automatic Selling" is meant continuous repeat orders 
 coming on because of ideas of quality or service engen- 
 dered in consumers and aggressive selling help from re- 
 tailers and jobbers. There are hundreds of firms making 
 good articles which could be sold in large quantities at a 
 fair profit if their executives had ability to build a larger 
 distributing organization and knew how to keep up an 
 even sales development which brought a steady stream of 
 repeat orders. 
 
 As a matter of fact the "key log in the jam" of most 
 manufacturing concerns' failure to reach greater size is the 
 inability to get beyond a certain localized or limited dis- 
 tribution. All other problems may be well solved by such
 
 ACHIEVING SUCCESSFUL DISTRIBUTION 77 
 
 concerns, but in the development and maintenance of a 
 broad net of distributors pushing their goods they frankly 
 confess a large or small measure of defeat. They admit the 
 problem is to some extent beyond their powers. Their dis- 
 tribution organization is exasperatingly spotty — sales are 
 good in one territory this year and poor the next ; at no 
 one time is there anything like a uniform or even flow of 
 orders. The distribution machine creaks and spurts spas- 
 modically. It needs the attention of expert counsel on 
 distribution. There is no reason why any good article 
 should not approach the ideal of an automatic demand — 
 not of course as automatic as a staple product, if it is a 
 specialty, but still a really automatic demand which has 
 something like an even flow because it is stimulated wisely 
 and correctly. 
 
 50. The Seven Elements of Successful Distribution. — The 
 specific factors in successful distribution may be said to be 
 about as follows: 
 
 1. A maximum number of live selling units (retailers 
 or canvassers). 
 
 2. A rigidly uniform and fair method of dealing. 
 
 3. A smooth-running channel of middlemen, if neces- 
 sary (jobbers, selling agents, commission houses or local 
 branches). 
 
 4. A steady "pull" or ''demand" from the consumer, 
 arising from advertising direct to consumers. 
 
 5. A steady ''push" toward the live selling units — to 
 keep them supplied with enthusiasm, new ideas, assistance 
 and conviction, accomplished through salesmen, trade paper 
 advertising, house organs, letters, etc. 
 
 6. A system or campaign plan to extend the reach of 
 the distributive organization, in the shape of specially de- 
 signed advertising, special crews, "missionaiy salesmen," 
 etc.
 
 TO MODERN SALESMANAGEMENT 
 
 7. An efficient routine organization to handle all mat- 
 ters without friction or complaint or loss. 
 
 The nature of these elements readily explain why there 
 is so frequent failure to attain them. They are very com- 
 plicated and very difficult factors to master, each and every 
 one of them. It is foolhardy for any but a mind trained 
 to handle such factors to expect success. They show on 
 their face the degree of generalship and organizing ability 
 required, to say nothing of the men, money and other re- 
 sources necessary to success. 
 
 51. Distribution as a Mechanism. — A distributive organ- 
 ization has many of the same peculiarities as a machine. It 
 needs much oil and a good deal of expert attention, and it 
 is composed of a great many parts, all of which must be 
 perfectly meshed into each other without friction. 
 
 Now, a machine of such proportions as will sell an arti- 
 cle in an adequate manner is, necessarily, a delicate poised 
 and individually adapted machine. It must practically be 
 hwilt to order. 
 
 The distribution machine which is most perfect, most 
 profitable and smoothest running, is naturally the machine 
 that sells your goods most automatically (with the least 
 cost, time, effort or parley). An ideal distribution ma- 
 chine is composed of many selling units. In the case of 
 Ivory Soap about 250,000 or 300,000 stores sell the goods 
 That is a very huge machine, but essentially simple. It puts 
 300,000 people to work, and if each one works only the 
 tiniest bit, it rolls up a big volume of sales automatically. 
 The law of averages is the speedometer to such a machine. 
 
 The reason for a distribution machine is to have goods 
 ready for the consumer in his own locality, to render local 
 service, to display goods in the recognized centers of buy- 
 ing, to unload small credit risk, to save time and cost, and 
 to more thoroughly canvass local possibilities. Whether 
 selling belting or machine tools or breakfast food, we are
 
 ACHIEVING SUCCESSFUL DISTRIBUTION 79 
 
 all aiming at a machine which will represent us to prospects 
 with the same degree of aggressiveness and skill as we our- 
 selves would if we were operating that store or agency. 
 That ideal of a distribution machine is very rarely achieved, 
 but is the goal to aim for. 
 
 52. "High Spot Selling" versus Concentration and Intensi- 
 fied Work. — "Hitting the high spots" is a phrase and often 
 a reproach — as indicating shallow planning and insecure 
 sales building. 
 
 The subject is much more complicated than it seems, how- 
 ever, and how to adjust the particular proposition to the 
 method is not a simple task. 
 
 As a method, "high spot" selling has a distinct strate- 
 gic value. 
 
 For even the most thorough salesmanager would prob- 
 ably (in the grocery trade) divide the United States into 
 15 sections, in each selecting a strong, centrally located 
 jobber. This special jobber receives each month a bonus 
 on total sales. In each territory he places one of his own 
 men who becomes a resident salesman. This man works for 
 the jobber ; his salary is paid by the manufacturer. He acts 
 as eyes and ears for the home office. He works with the 
 jobber's men and intensifies the interest of salesmen and 
 dealers in his particular line. He is in effect a high spot. 
 
 For, having picked out our distributing points and se- 
 lected our distributing organization, do we not then seek 
 the king pin retail distributing points in the section? 
 Those leaders in business who are quick to grasp the bigness 
 of our advertising and selling plan want to catch the 
 crowds who will be reached by our advertising appeal and 
 their public endorsement of merchandise. 
 
 In the city of Philadelphia there is an organization in- 
 cluding some 50 or more retail grocers with about 100 
 stores who bind themselves together under a title, "Co' 
 operators. ' '
 
 80 MODERN SALESIMANAGEMENT 
 
 These men come together weekly and give each other 
 ideas which may be of help in running their retail stores- 
 They come together to consider selling problems. They 
 come together to consider new ventures in merchandising. 
 They are non-competitive merchants and for the most part 
 the very best in their particular neighborhoods. If a dis- 
 tributor enters Philadelphia and can secure the cooperation 
 of these 50 or more grocers through their personal direct 
 selling effort and such advertising as they may do in their 
 retail business, we would surely say he is hitting the high 
 spots. 
 
 But it is by hitting the high spots of trade, like New 
 York and Chicago, that we get prestige in reaching the 
 smaller cities and towns who follow the play as staged in 
 the big town. We realize that having sold the Wana- 
 maker's, Macy's, Lord & Taylor's, Altman's, Park & Til- 
 ford's, Acker-Merrill's, Charles', The A. & P.'s, we make 
 it easier to sell the neighborhood stores and the small shops 
 that run close to the Fifth Avenues and 42nd Streets of re- 
 tail trade. The retailer who has the support of the king 
 pin retailers in Philadelphia or elsewhere, is keen enough 
 to know that this first success is the big argument which 
 he can use in securing the trade of all the stores that 
 may be in the neighborhood or vicinity of the one leader 
 who is pushing a particular line through unusual selling 
 and advertising efforts due to his own ingenuity and ac- 
 tivity in retailing. When one can take to the neighbor- 
 hood stores evidence showing that the big man is working 
 to take the trade away from his neighbors, surely the neigh- 
 borhood store will put in the same kind of merchandise, 
 and be more anxious to push that line, in order to keep his 
 trade from getting the habit of going to his competitors' 
 stores for goods. This is particularly true when the mer- 
 chandise is backed by strong advertising on the part of the
 
 ACHIEVING SUCCESSFUL DISTRIBUTION 81 
 
 manufacturer. The high-spot plan works and is an en- 
 tirely logical principle. 
 
 Still, after agreeing as to the efSciency of hitting high 
 spots, it is quite right to say that salesmanagers too often 
 merely hit the high spots and too infrequently work in- 
 tensively as well. 
 
 While the big shoemakers were opening branch retail 
 stores and selecting only big cities, it used to be said that 
 Douglas men covered every crossroad pump and small 
 town ; and there is reason to believe that it may have been 
 this policy to the simple country folk and small town 
 people who wore Douglas shoes that gave the impetus to 
 the big town Douglas stores where the country people of 
 yesterday reside to-day. 
 
 The decision as to how far, if at all, high spot selling 
 is wise must be made only after the most painstaking con- 
 sideration of all factors involved. 
 
 53. "Percentage of Distribution." — When all the possible 
 retail outlets of selling are counted up, and divided into 
 the number of actual outlets selling the goods, we get what 
 is known as the "percentage of distribution" which any 
 given product enjoys. Articles of universal use, sold 
 through jobbers have the largest number of retail outlets, 
 but it is hard to check up the distribution, as the manufac- 
 turer does not fully know where his goods are sold. 
 
 An 80 or 85% distribution for an article sold through 
 jobbers to the grocery trade is considered a pretty fair 
 distribution, although very famous articles such as Ivory 
 Soap or Baker's chocolate enjoy an even higher percentage. 
 
 The average is very low — many articles have scarcely 
 20% distribution even though sold and advertised nation- 
 ally. It is a very practical thing to do, to keep clearly 
 before both the executives and the salesmen the percentage 
 of distribution attained, so that a full realization of the 
 goal still to be attained may be understood. Lack of dis-
 
 82 MODERN SALESI^IANAGEMENT 
 
 tribution is a great waster of valuable energy and money 
 and good will, as the consumer so often under such circum- 
 stances finds it difficult or impossible to secure the article 
 after having become persuaded to buy it. Many costly 
 campaigns of national advertising have been undertaken 
 before distribution had reached a percentage which made 
 broadcast advertising advisable and effective. 
 
 Any territory with less than 20% of possible distribution 
 is merely "pegged" and not covered and it then becomes 
 a question of broad policy as to whether limited territory 
 is to be developed intensively before spreading out fur- 
 ther or whether conditions warrant a policy of wide-flung 
 effort, with intensification only at strategic points. 
 
 54. How Aggressive Advertising Builds Distribution. — 
 Educational support of the distribution is vitally necessary. 
 Like any machine which has many widely scattered parts, 
 it must be well connected with the source of its power. It 
 takes plenty of horsepower to make such a huge national 
 machine operate, and that horsepower is composed of the 
 educational aggressive advertising effort which is put to 
 work behind the distributors. Much merchandise will be 
 found on the shelves of distributors and in the warehouses, 
 which is practically in storage. They keep it — that is all. 
 To criticize distributors on the ground that they are merely 
 "cash registers" waiting for orders to be punched upon 
 them is beside the mark. As a matter of plain fact, such 
 a situation is absolutely up to the manufacturer. 
 
 We labor under a bad delusion when we believe that 
 any distributor is more than a distributor. It is impos- 
 sible, beyond a very limited point, to make a special sales- 
 man out of any distributor. As the average jobber has on 
 his lists about 80,000 items, he cannot possibly "push" 
 even a very small fraction of them. It is absurd and 
 wrong in principle to depend much upon any distributor 
 for aggressive work. The thing to do is to make a
 
 ACHIEVING SUCCESSFUL DISTRIBUTION 83 
 
 high-grade educational sales and advertising effort. It is 
 up to the manufacturer of an article to create the demand 
 for his article. It is not the function of any distributor 
 to create the demand. He is not organized to do it. He 
 is organized to supply demand. He can only help when 
 the manufacturer is pulling the heavier part of the load. 
 It is true that ideal jobbing and retailing should (and 
 does in many cases) include creative as well as distributive 
 effort. In theory and principle retailers should be educa- 
 tors and developers. To make a distributor attain this, 
 first catch your distributor, and then educate him. 
 
 Only a small proportion of the 1,000,000 retailers of the 
 country are mentally and otherwise equipped to fulfill such 
 a conception of creative assistance. 
 
 55. Educational Effort on Dealers to Increase Distribution 
 Efficiency. — ]\Iuch sales failure occurs simply because of a 
 complete lack of team work in understanding the nature 
 of a distributing machine. One leans on the other, and 
 both fall down. They do not take their share of the job 
 and do it well. This is typically illustrated by the case 
 of the owner of a certain new disinfectant. He appointed 
 a salesmanager who was well satisfied after several months 
 because he had gotten distribution among 24,000 stores. 
 In six months' time he was worrying as to what he was 
 going to do next. His goods were on the shelves of 24,000 
 distributors, but he was selling so little that he was ashamed 
 to tell how much. On the other hand, the dealers were 
 resentful because they had expected a big demand to de- 
 velop. This is a typical example of fatal leaning on each 
 other. 
 
 The dealer must first of all be educated about the mer- 
 chandise he is selling. If the distributor himself does not 
 thoroughly understand the merchandise he is selling (which 
 is not the rule), then his clerks don't. The ways for secur- 
 ing such education are :
 
 84 MODERN SALESIMANAGEMENT 
 
 1. Salesman 's demonstrations. 
 
 2. Special traveling missionaries or companions to job- 
 ber's salesmen. 
 
 3. Booklets for clerks. 
 
 4. Trade paper advertising. 
 
 5. Sales correspondence courses. 
 
 These educational methods are well tried and have the 
 highest proved efficiency in making live creative units out of 
 distributors.
 
 CHAPTER VIII 
 
 SELLING DIRECT AND SELLING THROUGH JOBBERS 
 
 56. Why Some Firms Prefer to Sell Direct to Retailers. — 
 There is no merchandising problem more intricate and 
 vital than the one dealing with the question of the manner 
 in which the contact is to be made with **the trade" (the 
 retailer). Desire to grow rapidly and to sell aggressively 
 has forced many manufacturers who naturally and nor- 
 mally would sell through jobbers to sell direct to the re- 
 tailer. There is a decided tendency in this direction among 
 a live and modern group of those who wish to carry their 
 standards and policies direct through to the retailer, thus 
 coming in closer contact with the ultimate consumer. At 
 the same time certain types of articles of wide universal- 
 ity of sale cannot well do without the jobber and have de- 
 veloped policies of successful cooperation with them. 
 
 Of course, if the article is technical or if it is of special 
 nature, it is often sold direct to consumers. But if it has 
 a wide sales possibility through the ordinary types of re- 
 tailers, and must be ordered in small quantities frequently, 
 or if it is of heavy bulk, middlemen are as a rule necessary. 
 
 "Whether it is preferable to sell goods through jobbers or 
 to retailers direct, is determined by the question as to 
 whether the maker can render functions of a jobber just 
 as well or nearly, as well as a jobber — that is, convenient 
 availability of goods, credit facilities, etc. 
 
 With many concerns the deciding consideration for sell- 
 ing direct is ability to serve the goods fresh or with the high 
 standards of service desired to maintain to consumers.
 
 S6 MODERN SALESMANAGEMENT 
 
 Among the manufacturers who have found it advisable 
 to sell direct to the retailer are the following \vell-kno^vl^ 
 and aggressive firms: National Biscuit Co., II. J. Ileinz 
 & Co., Colgate & Co., Standard Oil Co. Other firms have 
 found it undesirable to eliminate the jobber. Among these 
 are such well-known firms as the Kellogg Toasted Com 
 Flake Co., Remington Arms-Union Metallic Cartridge Co., 
 etc. 
 
 Still others find it wise to "straddle," selling both to job- 
 bers and retailers direct under certain conditions. 
 Among these are Mellins' Food Co., International Silver 
 Co., Oneida Community, R. H. Ingersoll & Bro., Victor 
 Talking Machine Co., etc. 
 
 57. Advantages and Disadvantages of Selling to Job- 
 bers. — The country being as large as it is, it is a manifest ab- 
 surdity for grocery, hardware, dry goods, drug and other 
 lines of merchandise to be sold directly unless it is possible, 
 and for special reasons justifiable to employ huge capital 
 in a distributive organization as an auxiliary to manufac- 
 turing. Broadly speaking, it is bad business to "mix 
 functions" — that is for a manufacturer to be also a job- 
 ber. Yet, broadly speaking, if he is to succeed he must 
 master his distributive difficulties, no matter what they 
 involve. 
 
 Naturally and normally a jobber is a very economical 
 and vital part in selling, for these reasons: 
 
 a. The jobber has an established sales organization that 
 closely covers his territory and maintains cordial relations 
 with the trade. 
 
 b. He buys in large quantities, which facilitates the 
 volume of business done. 
 
 c. He relieves the manufacturer of the necessity of 
 traveling a large sales force, handling a large number of 
 accounts with their credit risks and the labor of collec- 
 tions.
 
 SELLING DIRECT AND THROUGH JOBBERS 87 
 
 d. He has superior ''warehousing" facilities; that is, he 
 carries a stock of goods on which the retailer can draw 
 quickly and without having to pay disadvantageous freight 
 rates (since the jobber gets his goods in quantities that 
 will permit favorable freight rates). 
 
 On the other hand, must be considered the possibility of 
 the following unfavorable factors : 
 
 a. The loss of contact with the retail outlets of the 
 manufacturer. 
 
 b. The jobber may at any time switch over to a com- 
 peting line, which leaves the manufacturer without a mar- 
 ket. 
 
 c. The jobber's principal interest is in profits and for 
 this reason he is not so careful of the reputation of the 
 goods as the manufacturer. 
 
 d. The jobber may at any time become a competitor 
 with the manufacturer whose line he had been pushing by 
 having his (the jobber's) own "private brand" made up 
 either under contract or in a factory controlled by him. 
 
 e. The jobber has so many lines to handle, that even 
 if he is disposed to do so, he can hardly concentrate his 
 attention upon any given line. 
 
 f. The jobber feels no desire to adhere to any business 
 policy laid down by the manufacturer. 
 
 g. Convenient availability of goods is probably the 
 most important function of the jobber in the modem sales 
 organization, particularly in the West and South, where 
 distances are great, with resulting favorable freight rates 
 on carload lots for long hauls. 
 
 58. Branch. Warehouses and Other Compromises and 
 "Straddles." — Some firms which do not sell through jobbers 
 find it advisable to maintain branch warehouses in jobbing 
 centers, so that the trade can easily obtain their goods. For 
 example, the National Biscuit Co. has 320 local branches, 
 which supply also the surrounding territory. Devoe &
 
 88 MODERN SALESI^IANAGEMENT 
 
 Reynolds Co. (paints) have 11 branches in the South, which, 
 is their principal territory. 
 
 Convenient supply depots are particularly vital with per- 
 ishable goods. The packing firms like Swift and Armour 
 maintain warehouses in every important center to supply 
 goods that must be refrigerated. 
 
 However, with the advent of the parcel post and lower 
 express rates "convenient availability" has acquired a new 
 meaning for comparatively light or small goods (hardware, 
 notions, jewelry). This new condition has brought about a 
 widespread practice of the partial elimination of the job- 
 ber in many lines. It is used in combination with syste- 
 matic saleswork through the mails to supplement the work 
 of the sales force ; with mail order sales in uncovered ter- 
 ritory as a means of inducing dealers to stock the goods; 
 and with the use of local jobbers where advisable. 
 
 Such a mixed policy is justified by geographical condi- 
 tions. Distances in this country are large, and over 50% 
 of the consumer population is scattered in the rural dis- 
 tricts, doing their trading in small towns of 1,000 popula- 
 tion or under. According to the last United States census 
 there were over 60,000 such towns, each with a few deal- 
 ers in each line or a ' ' general, store ' ' carrying practically 
 everything bought in the community. 
 
 Yet, in many lines of goods, the total purchases of each 
 "country store" would be too small to warrant the call 
 of the manufacturer's salesman. Therefore, unless the 
 manufacturer "covers" them by mail these customers 
 are the logical trade of the jobber. This explains why 
 the Gillette Safety Razor is sold partly through the job- 
 ber and partly direct to the retailer ; and why many other 
 firms pursue a "straddle policy." 
 
 59. Getting "Sales Punch" to Retailer Through Jobbers. — 
 Cooperation in the way of advertising, advertising helps
 
 SELLING DIRECT AND THROUGH JOBBERS 89 
 
 for the dealer, etc., can hardly be expected from the job- 
 ber of his own accord. 
 
 Therefore, such firms as Yale & Towne Co., Remington 
 Arms Co., the Shredded Wheat Co. and others make con- 
 siderable effort in cooperating with retailers direct in the 
 way of advertising assistance, window displays, etc. Some 
 of these firms maintain a traveling force that visits the 
 retailers, but either takes no order or else refers orders 
 which he takes to a jobber to fill. 
 
 Some firms supply the retail trade through the jobber 
 who supplies, with the order, requisitions for advertising 
 matter which the manufacturer furnishes direct. This 
 method has been found less expensive, but also less pro- 
 ductive of returns. 
 
 Direct sales w^ork upon the retail trade, even when goods 
 are handled by jobbers, has been found necessary by 
 manufacturers who enter a new market. In fact, jobbers 
 are not eager to handle the goods, unless the maker 
 "creates a demand." This is a very natural attitude of 
 mind for the jobber, who has a large number of differ- 
 ent kinds of merchandise to handle. 
 
 One method of cooperation is the established fixed policy 
 of the manufacturer to deal only with jobbers, or only 
 with retailers direct. In one case, he will make the job- 
 bers "solid" with him, in the other, the retailer. 
 
 The most common method of discriminating between 
 jobbers and retailers, and of encouraging or discouraging 
 the handling of goods, is a schedule of prices that will 
 increase or limit the margin of profit obtainable on the 
 goods. 
 
 60. The Jobber and "Mixed Functions." — Business policy 
 with regard to jobbers has been greatly complicated by 
 overlapping of dividing lines between the proper func- 
 tions of the manufacturer, jobber and retailer. 
 
 A typical illustration of this condition is furnished by
 
 90 MODERN SALESMANAGEMENT 
 
 Marshall Field & Co., Chicago, known to the public as 
 one of the largest retailers. Yet it does a larger jobbing 
 business than a retail business and in recent years has 
 erected large factories and started to manufacture many 
 lines which it sells at both wholesale and retail. 
 
 Naturally it has been found by the manufacturers of 
 competing goods that this policy of Marshall Field & Co. 
 interfered materially with their own sales, since this firm 
 could hardly be expected to push rival lines in preference 
 to its own. 
 
 If a jobber also runs a retail store — as many of them 
 do, particularly in the hardware field — naturally the lat- 
 ter as a retailer has a price advantage over the other 
 retailers who in many cases show their resentment toward 
 the manufacturer who thus discriminates against them, 
 intentionally or unintentionally. 
 
 Again, the manufacturer who gives the full jobber's 
 discount to a jobber who also manufactures similar goods 
 under his own "private brand" name, is practically giv- 
 ing a price advantage to a competitor. 
 
 The subject of the private brand is a very sensitive one, 
 and goes to the heart of the matter of "mixed function." 
 It is unfortunate that jobbers were ever unwise enough 
 to usurp a manufacturing function, as it has made rival 
 antagonists out of the maker and distributor whose nor- 
 mal business it should be to cooperate closely without con- 
 flict of interest. The mistake has greatly weakened the 
 logical strength of the jobber as a distribution unit. 
 
 If, in a manufacturer's dealings with jobbers a clear 
 dividing line is established between jobbers and re- 
 tailers as a class, there is the discrimination through 
 freight rates, for some jobbers cover the entire country, 
 others only limited sections of it. 
 
 If a clear dividing line is established on the basis of 
 quantity prices, complications are apt to arise from the
 
 SELLING DIRECT AND THROUGH JOBBERS 91 
 
 fact that some large retail stores or chain stores and buy- 
 ing "syndicates" purchase larger quantities than many 
 jobbers. 
 
 Thus has arisen the natural policy that the quantity 
 bought fixes the discount whether the buyer be jobber or 
 consumer. This policy is fairly widespread.
 
 CHAPTER IX 
 
 CREATING DEMAND AND EDUCATING CONSUMERS 
 
 61. Demand as a State of lldind. — There are two kinds of 
 things to sell: (1) What people unquestionably want; (2) 
 What they are somewhat indifferent to, hut you believe 
 they need. The more eager people are to buy goods, nat- 
 urally the easier it is to sell them. Some industries pride 
 themselves on their success, whereas they have simply 
 grown up automatically with an industry. For years a 
 greater number of automobiles were desired than could 
 be manufactured — they were hought, not sold. The pub- 
 lic was in a buying state of mind, and the demand was 
 naturally therefore strong. 
 
 Demand is the thermometer which registers and meas- 
 ures the success of a business. A good article without an 
 existing demand for it, with nothing but anticipated or- 
 ders, is merely a hope of success. Regular business pat- 
 ronage of any kind constitutes demand. How to increase 
 it, make it more permanent and more profitable — these 
 are the great first aims of advanced salesmanagement. 
 
 It has been found that demand for a particular firm's 
 goods or services hinges upon either one or both of these 
 two factors: 
 
 1. State of buyers' minds. 
 
 2, Recognized price or quality advantage. 
 Investigation has developed the consensus of opinion 
 
 that when the buyers are in an unusually favorable frame 
 of mind they make a demand for the goods and are will- 
 ing to pay a higher price, even when in competition with 
 
 92
 
 CREATING DEMAND 93 
 
 superior quality. Likewise, when they are in an un- 
 usually unfavorable frame of mind they won't have it at 
 any price or any quality. It is therefore easy to see why 
 the public state of mind is of absolutely first importance. 
 
 This state of mind apparently has a great many angles 
 according to the goods or service for which demand is 
 desired. To endeavor to sell high-wheeled bicycles to- 
 day would merely provoke laughter, as did Ford's effort 
 to sell automobiles fifteen years ago. Large portions of 
 Europe will not adopt telephones or buy bath tubs or den- 
 tifrices. American business firms only 35 years ago 
 sneered stubbornly at typewriters. 
 
 62. The Subtle Work of Creating a State of Iilind That 
 Leads to Demand. — In creating a demand for a product it 
 has been found necessary to use the same subtle advanced 
 and analytical tactics which great editors and politicians 
 use in affecting the opinions of masses. They never hurry 
 or bewilder the public by trying to secure a too-rapid 
 march forward. Roosevelt, who was perhaps the greatest 
 example of ability in leading masses in radical forward 
 steps, says that it takes a long time to wake up the Ameri- 
 can public, but once they are awakened they go much fur- 
 ther than you ever dreamed of. This is just as true in 
 creating a demand for an article which necessitates a 
 phjange of habits — ^like linen collars, ready-made suits, 
 safety razors and fountain pens. 
 
 Roosevelt never lost patience with the public, but kept 
 repeating his radical ideas over and over again, always in- 
 vesting some new dramatic form of presentation, anc( 
 keeping the public eye fixed intently on himself while pre- 
 senting them. Editor Bok of the Ladies' Home Journal 
 finds the same principle true in leading two million women 
 forward. Years ago he started to lead women away from 
 patent medicines and to instil modern ideas of child hy- 
 giene, etc. The first few efforts invariably made no im-
 
 94 MODERN SALESMANAGEMENT 
 
 pression, but undiscouraged he kept up the crusades in 
 new forms, until demand was created. 
 
 This is the formula, in principle, for all effort to create 
 demand among the public for new goods. To create de- 
 mand for staple goods, like sugar or flour, the process 
 differs only in that you must create demand for a brand 
 instead of for the article itself. No one need feel dis- 
 couraged over any work of changing of habits of people 
 or developing a demand which has a real innate appeal 
 or value. It is simply necessary to understand the slow 
 processes necessary to organize, finance and manage the 
 campaign accordingly. 
 
 The creating of a radically new demand is now defi- 
 nitely possible, as has been proved through the experience 
 of many firms, 
 
 6S. Changing the Public's Habits and Standards. — A buy. 
 ing state of mind is a great sales achievement if you an- 
 ticipate it early, or if you can develop it without too great 
 cost and effort. Many firms resort to ' ' publicity ' ' through 
 press agents and lectures, etc., to develop this valuable but 
 slow-moving condition. But it does not easily respond. 
 It is a psychological condition and must be studied indi- 
 vidually in relation to each particular case. The univer- 
 sal desire for bath tubs, for linen collars, for sanitation in 
 the home, for tooth brushes and a thousand other things 
 have been brought about mainly by the determined, long- 
 visioned work of business firms through sales and adver- 
 tising methods. 
 
 Some very striking examples are constantly occurring. 
 For example, Switzerland was long known as Europe's 
 summer playground. For six months of the year hotels, 
 railroads and other tourists' accommodations were over- 
 taxed, but during winter they were idle. 
 
 Steam radiators and other comforts were installed and 
 a systematic campaign was started, popularizing and ad-
 
 CREATING DEMAND 95 
 
 vertising winter sports such as skating, toboganning, 
 skiing, etc. As a result the tourist business in Switzer- 
 land became prosperous the year round. It became the 
 fashion in England and France and Germany to winter 
 in Switzerland. 
 
 Another remarkable illustration is found in the safety 
 razor situation. 
 
 When you look at the portraits of men taken two dec- 
 ades ago, you will notice that most of them wore beards. 
 To-day most Americans are clean shaven and the beard 
 is now decried as a carrier of germs. There is no doubt 
 whatever that safety razor advertising has been largely 
 responsible for this change. Razor makers were unpros- 
 perous until work on the public mind was systematically 
 begun and brilliantly developed. 
 
 Creative work of this kind is changing not only the 
 buying habits, but also the living habits of people. There 
 are now many advertisers at work, following the lead of 
 Postum, to convert coffee drinkers to non-caffeine bever- 
 ages. 
 
 Women's clothes and fashion habits have been marve- 
 lously changed through shop window display and adver- 
 tising. As a matter of fact the advertising of business 
 houses has made over the habits of the whole country, so 
 that the young man in a small town in Kansas wears the 
 same up-to-date clothes as the New York youth, and at 
 the same time. This is accomplished by deftly working on 
 the subconscious mind of the public by persistent and con- 
 sistent effort. 
 
 64. Demand Creation in Relation to a Mass Movement. — 
 Sometimes it is possible to "hitch on" this sort of popu- 
 larization to a public tendency or movement, such as the 
 "Fire Prevention" movement, the "Safety First" move- 
 ment, the "Pure Food" movement, etc. This is because 
 there are always various tendencies of change and reform
 
 96 MODERN SALESMANAGE]\IENT 
 
 already going on and it makes the work easier if they can 
 be harnessed to sales work, and, of course, they are logic- 
 ally a part of public movements, and public policy is 
 served thereby. 
 
 When no such public tendency exists, it can ofttimes 
 actually be created. For example, a firm interested in 
 public service corporations, increases the consumption of 
 electric current or gas in the cities where it has its plants, 
 by creating a wave of civic pride and patriotism, as a 
 result of which the stores light up more brilliantly at night, 
 and electric signs are used more extensively by local mer- 
 chants, also by the city authorities by illuminating the 
 civic buildings, by the Board of Trade, etc. 
 
 In view of these facts, it is a very inaccurate and un- 
 safe procedure to fake the present Jwhiis of mind of the 
 puhlic as final. If there is profit in changing the public's 
 habits and state of mind, it is a quesst^.on for sales and ad- 
 vertising experts to accomplish such a change. Any one, 
 retailer or manufacturer, finding himself up against stag- 
 nant, fixed public habits needs only to do the necessary- 
 development work to have results come gradually. It is 
 an actual fact that it took ten years of hard, uphill work 
 to persuade business men to use telephones, typewriters, 
 etc. Now it's absurd to think of doing without them. In 
 a similar way salesmanagement enterprise has been re- 
 sponsible for popularizing many other public benefits. 
 
 If possible, it is highly desirable to create such a state 
 of "public enthusiasm" because each individual of the 
 mass becomes a radiating center of influence more or less 
 in favor of the goods in question. This influence is all 
 the more readily transmitted because it is well known that 
 the crowd, taking it as a whole, does not think, but feel. 
 Therefore, a master hand in the matter may work great 
 changes, always assuming that what is offered contributes 
 lasting profit, pleasure, and benefit.
 
 CREATING DEMAND 97 
 
 65. The Technical Tools of Demand Creation. — Some of 
 the best methods of creating such a public state of mind 
 are the following: 
 
 a. Educational advertising, on billboards, newspapers, 
 magazines, street cars, etc. 
 
 b. Auxiliary advertising in the shape of buttons, ban- 
 ners, novelties, of all kinds. 
 
 c. A slogan — one of the simplest and most effective 
 methods, particularly if the slogan has merit, either 
 through rhyme, rhythm or some other "catchy element" 
 that gives it general currency in the public mind; for 
 example, "See America fir.st. " 
 
 d. Articles in newspapers, magazines etc. 
 
 e. Lectures, demonstrations, show window and store 
 exhibits and "expositions." 
 
 f. A backing of authority — ^well-known public men, or 
 men of known standing in a particular field (Neighbor- 
 hood store, neighborhood sentiment). 
 
 g. Discussion before, or enlistment of organizations in 
 a cause that has a bearing on the goods (for example 
 "Housewives' Leagues" on food problems, "Boy Scouts" 
 on walking shoes, etc.). 
 
 In conclusion, it is the opinion of the best advertising 
 experts that no habit or condition of the consumer is hope- 
 less against the use of intelligent educational effort. It is 
 agreed that a series of educational efforts, all from differ- 
 ent angles, will gradually affect the sub-conscious mind 
 of people and bring about the change, if such change is 
 based on logic, natural evolution or sound human nature. 
 
 66. Names, Trade Mark or Slogan That Help Create De- 
 sire. — Just as men going to battle stirred up interest by 
 cries and slogans, so to-day slogans, catchwords, trade- 
 mark names, etc., play a part in making it simple for the 
 average mind to imbibe a new idea. These slogans and
 
 98 MODERN SALESMANAGEMENT 
 
 catchwords are of less value than a good name or good 
 selling phrase. 
 
 Names or slogans should cover the following points: 
 
 a. Should preferably convey an argument for buying 
 the article, for example, "Sweetheart (sweet heart) of 
 the Corn," "Minute Tapioca." In many well-chosen 
 names the argument is "felt" rather than directly uttered. 
 For example, "Nabisco "Wafers" suggest a dainty food. 
 
 b. The name should be euphonious — easy to pronounce. 
 This point is frequently overlooked by importers, who do 
 not change the foreign name of an article. Investigation 
 has shown that the average consumer does not want to 
 show her or his ignorance of a foreign language, and fear- 
 ing to appear ridiculous, will prefer to ask for some other 
 product the name of which is readily pronounced. 
 
 e. The name should suggest nothing unattractive. For 
 example, a "deodorizing" powder proved a failure be- 
 cause it was named "No Smellee," a name which no self- 
 respecting person felt inclined to utter in a drug store. 
 
 67. Development of Tendencies in the Buying Public. — 
 Some marked successes have been won by firms who did 
 not put any stress upon their article, but who by indirect 
 suggestion created a public state of mind that produced 
 a need for their article. 
 
 The "brighten up" campaign of a large paint manu- 
 facturer is a case in point. He generated in a number 
 of cities and towns a greater "civic spirit" that induced 
 citizens to put a new coat of paint on the building, so as 
 to improve the appearance of the place. Hygienic move- 
 ments have frequently created a demand for tooth pow- 
 der and other toilet preparations through successfully 
 utilizing the press and the aid of the health authorities. 
 Tire chain sellers and automobile horn-makers have been 
 persistent in their educational work and have combined
 
 CREATING DEMAND 99 
 
 their efforts with automobile manufacturers for the pur- 
 pose of familiarizing the public with their product. 
 
 It is of the utmost importance that a salesmanager know 
 the resistance which his article meets, so that he may 
 study the situation and formulate a plan. An article may 
 have a limited market solely due to a set notion on the 
 part of the public — a habit of mind, a custom or a prej- 
 udice. By removing this obstacle sales grow very much 
 more rapidly and cheaply. Indirect effort to develop a 
 new spirit or line of thought in the public mind is entirely 
 feasible and often successful; but it is a delicate piece of 
 work, each cause having its own peculiarities and limita- 
 tions. 
 
 68. Systematic Educational Campaigns. — Education is the 
 most powerful lever in America, and most American peo- 
 ple respond to it readily. They have no prejudice about 
 trying a new idea or method or article, but their atten- 
 tion is hard to hold long enough to make a sufficiently 
 deep impression. Therefore, the need of constant reitera- 
 tion and advertising and sales work that "teaches." The 
 tools with which to accomplish this result are : articles 
 written; house organs, booklets, personal demonstrations; 
 constant advertising illustrations; example; recommenda- 
 tion ; use by others ; reasoning ; appealing to the younger 
 generation; associating pleasant and suggestive ideas with 
 the goods, etc. If the educational work to be done is ex- 
 tensive it is wise to attempt only part of it at one time. 
 
 It is easier to lead the consuming public step by step 
 than to attempt to force a radical program. Also, it is 
 more encouraging to investors and employees to watch 
 the acceptance of preliminary or partial ideas than to wit- 
 ness repeated rebuffs of the entire idea. Thus wise type- 
 writer companies years ago made progress by urging the 
 use of typewriters for routine work, and did not attempt 
 immediately to fight vigorously the prejudices against
 
 100 IMODERN SALESMANAGEMENT 
 
 typewritten correspondence, which could not be success- 
 ful until the business public gradually became accustomed 
 to the appearance of typewritten work. 
 
 A man who sells a new idea has to educate people and 
 overcome their timidity at paying for something new. 
 This is often a slow and intricate process. For illustra- 
 tion, in selling, one official of a firm may be won over, 
 but others in the firm may consider it a new kind of ex- 
 travagance. Then the education must be carried up higher. 
 Those who sell some new type of building construction 
 for factories and skyscrapers, and must educate the 
 moneyed men who are difficult to reach, have the hardest 
 task of all, and experience proves that educational ad- 
 vertising in technical and general magazines and news- 
 papers can alone accomplish the educating. Often it is 
 advisable to use general advertising, simply to reach a 
 veiy small and limited group of hard-to-reach men. 
 
 69. Service as a Means to Help Educate. — Serious mis- 
 takes have often been made by failing to realize that after 
 educating a customer to buy, the effort is lost if expe- 
 rience with the purchase is annoying or unfortunate. 
 Many new mechanical devices have failed to succeed be- 
 cause purchasers could not successfully operate them for 
 every-day business requirements, and the maker offered 
 no service to help the purchaser get adjusted and edu- 
 cated to the new idea. Many articles (such as a dictating 
 machine) mean the break-up of lifelong habits, and it is 
 a very serious sales consideration to render the educa- 
 tional service which will make sure that the article is 
 understood and appreciated after it is sold. Such service 
 sometimes needs to be followed up a year or more after 
 purchase. 
 
 Live makers of adding machines, cash registers, etc., find 
 it absolutely necessary to maintain a very extensive service 
 organization and to give a service guarantee. They even
 
 CREATING DEMAND 101 
 
 establish schools to train operators as part of the edu- 
 cational work of developing- the market. Convenience 
 in ordering supplies and parts and reduction to a mini- 
 mum of mechanical attention required is vitally neces- 
 sary. The automobile did not become popular until this 
 had been accomplished. 
 
 Dealers, jobbers, clerks and salesmen need education 
 quite as much as consumers, if not more so. It is a first 
 essential that the house's salesmen, first, be "sold," then 
 the jobbers and retailers and their salesmen. To do this, 
 educational advertising in trade papers, in house organs, 
 by letters, correspondence courses in selling, demonstra- 
 tion lectures, trips to factory, booklets, etc., are essential. 
 
 The creation of demand is a very large and difficult 
 task and often slow and discouraging in results ; but energy 
 and brains and study are invariably successful when ap- 
 plied to propositions of real merit, and the educational 
 method is aggressively used.
 
 CHAPTER X 
 
 MEETING COMPETITION 
 
 70. House Policy as a Competition Safe^ard. — Prac- 
 tically every business has competition to meet. The pub- 
 lic does not like a monopoly, neither does the trade. 
 Within the past ten or fifteen years, the sentiment about 
 competition has undergone a decided change. Formerly 
 competitors regarded one another as bitter enemies. There 
 was considerable personal feeling between them. Now 
 most wide-awake business firms belong to associations prac- 
 tically composed of competitors, and cooperate with each 
 other, recognizing that competitors are necessary to help 
 keep demand in a healthy state. 
 
 Nevertheless, in order to make a sale and hold a cus- 
 tomer, it is necessary to convince him that your goods and 
 your proposition are more advantageous to him than any 
 offers of competitors. 
 
 It is now generally conceded that the fundamental 
 methods of competition should not be left to the indi- 
 vidual judgment of salesmen for them to apply in indi- 
 vidual cases, but the policy should be determined by the 
 management, worked out along definite lines and adopted 
 as a standard. 
 
 This is particularly vital when there is little or no ap- 
 parent superior merit in the goods offered. Under such 
 circumstances an advantage may be created through a 
 sales policy which is different from that of competitors; 
 for example, by offering more favorable credit terms, by 
 
 102
 
 MEETING COMPETITION 103 
 
 emphasizing better shipping facilities, closer cooperation 
 to help customers resell the goods, etc. 
 
 For example, a manufacturer whose goods are in pop- 
 ular demand, holds his old customers by strict adherence 
 to the policy of giving their rush orders preference. 
 
 For instance. The Sunshine Biscuit Company, in com- 
 peting with the National Biscuit Company, displayed com- 
 petitive sagacity in not attempting to parallel the won- 
 derful success of Uneeda Biscuit. 
 
 Instead of making a frontal attack upon this popular 
 line, the Sunshine Company adopted the sales policy of 
 centering its efforts upon very high-grade fancy biscuit, 
 marketed in quarter-pound boxes. Through an aggressive 
 campaign these goods were quickly introduced in grocery 
 stores and thus were an entering wedge for the entire 
 "Sunshine" line, including the 5c crackers. Imitation 
 is never a winning method of meeting competition — unless 
 it can be done overwhelmingly better than the competitor, 
 as Hood's Sarsaparilla did some years ago. The competi- 
 tor's sales method was taken and handled so much better 
 that Hood's got credit for it. 
 
 As a rule, the service and accommodation which a firm 
 renders customers are the most reliable safeguards against 
 competition. When there is an opportunity of going to 
 extra trouble to "help a customer out" — especially in 
 cases where a competitor has failed — it has been found 
 that a customer thus won is permanent as long as the 
 house continues this policy. For this reason some firms 
 have no hesitation in satisfying them even at an oeca- 
 sional loss to themselves rather than have customers turn 
 toward competitors. The free and easy return of goods 
 by customers is often decried as an evil ; but it is a fact 
 that a policy of making return hard does not pay. 
 
 71. Territorial Readiness to Meet Competition. — Terri- 
 torial consideration and location form another effective
 
 104 MODERN SALESMANAGEMENT 
 
 weapon against competition. Customers prefer to deal with 
 firms conveniently located. There is a natural prejudice 
 against firms "a long way off." 
 
 As a result, many manufacturers who cater to a na- 
 tion-wide demand, find it advisable to establish branch 
 offices or warehouses in various sections of the country. 
 This makes it easier to supervise and cover the territory 
 more thoroughly than is possible for the competitor. Some- 
 times it also affords an opportunity to work territory in 
 which the competitor is weak. 
 
 This is one of the most effective ways of overcoming 
 competition — to quickly entrench wherever competition is 
 Qveak, and then after thus establishing a firm foothold with 
 the trade, go after the competitor where he is stromg. 
 
 This principle offers a great encouragement to the en- 
 terprising young business man, because there is no firm, no 
 matter how large, that is uniformly strong in every part 
 of the country. 
 
 In retailing, where success depends basically on loca- 
 tion, the strategic advantage of it sometimes breaks or 
 makes a store. 
 
 72. Price as a Competitive Factor. — By those who have 
 not studied the question thoroughly, the weapon for fight- 
 ing competition most effectively is generally considered to 
 be a lower price. But this is agreed by successful busi- 
 ness men to be an extremely fallacious and unreliable 
 expedient, for three reasons: (1) it fatally diminishes 
 the profit; (2) it tempts the competitor to go still lower 
 with his price; (3) it creates no permanent trade; be- 
 cause the man whose order is won simply on the basis of 
 the lower price, can be won away readily by the competi- 
 tor 's offer of a still greater reduction. Sometimes the 
 price advantage is based upon freight advantages; in 
 which ease it is necessary to scientifically analyze freights
 
 MEETING COMPETITION 105 
 
 —possibly even to readjust the manufacturing or ware- 
 housing locations. 
 
 Ruinous price competition which is so often encountered 
 spells chiefly ignorance. Many firms do not know the ex- 
 act cost of their goods. 
 
 A notable instance of this kind and of an enlightened 
 way of overcoming this sort of competition, is found in 
 the printing trade, which is filled with firms doing part 
 of their business at an actual loss. It has long been a 
 well-known fact that printers do not know their costs. 
 The Franklin Societies, a federation of printing clubs, 
 therefore, establishes cost congresses for the benefit of 
 their members, and introduced a system of maintaining 
 traveling cost accountants who install cost systems in the 
 office of any printer who wants them, on the assumption 
 that when he knows his costs he will not underbid his 
 competitors disastrously. 
 
 Salesmen are very prone to want to make price con- 
 cessions, as they are more interested in making a sale 
 than making a profit. They should be carefully drilled 
 on the subject. 
 
 73. Wilful, Reckless Price Competition. — This is an old 
 evil still much met with. It is generally called a "trade 
 war," when profits are sacrificed in an endeavor to take 
 business awa}^ from competitors. This makes for demoral- 
 izing the market, and has always tended to upset public 
 faith in standard qualities and good-will. This does not 
 affect the value of lower price when that lower price is 
 based on greater efficiency and management. It affects 
 only such price competition which is inadequately based 
 on costs and margins. The scheme of "dumping" the sell- 
 ing of goods at or below cost in competitive markets is an 
 extreme policy of strategy which can only be justified by 
 the results in any given case. In principle it is unsound 
 and inequable.
 
 106 MODERN SALESMANAGEMENT 
 
 It has been found that it is not necessary to make reck- 
 less price reductions, for they can be overcome by the 
 merit of the goods, or by the house policy, or by re-exam- 
 ining management efficiency. 
 
 Usually the very best method of meeting the lower price 
 of inferior articles is to use the higher price of your goods 
 as a sales argument. The head of a large specialty firm 
 was told by a dealer : " If we could sell specialty goods for 
 20c less, I feel sure we could sell more of them." The 
 manufacturer, knowing the pulse of the market, replied: 
 "If it were not for the 20c more, you could not sell our 
 goods at all." 
 
 74. Secret Price Concessions. — This is the hardest com- 
 petition to overcome, because the competitor is working 
 more or less in the dark, and the customers benefited by 
 it are seldom willing to divulge the information. It can 
 be brought to light either through tactful salesmen, or 
 through outside investigators. The public attitude on this 
 point is indicated by the federal laws against secret re- 
 bates; and the decisive action now taken by the Federal 
 Trade Board against all forms of commercial bribery. 
 
 75. Meeting the Competitor's Selling Arguments. — The 
 old school of salesmanship believed in showing the defects 
 of competitive goods. But this policy has been found un- 
 desirable, because people do not like "knockers." 
 
 This does not mean that the selling points of competi- 
 tive goods should be ignored. But the selling talk should 
 be so engineered that the strong point of your own prop- 
 osition is brought out in the mind of the prospect above 
 the good points of your competitor's proposition. 
 
 Skilled salesmen do this without mentioning the name 
 of the competitive firms or materials, unless the prospect 
 specifically asks about them. In such cases the salesman 
 can make great headway if he speaks well of his competi- 
 tor. This is an evidence that he is fair-minded. The most
 
 MEETING COMPETITION 107 
 
 successful method has been to allow that the competitor's 
 proposition is good, but prove that your own proposition 
 is better. 
 
 Sometimes it is possible to use the talking point of the 
 competitor as a starting point on which to build up a su- 
 perior argument. For example, a certain automobile com- 
 pany emphasized the resiliency of their springs. The 
 salesmen of a competitor showed that springs which are 
 too resilient are really a mistake and that stiffer springs 
 with deeper upholstery assure a more comfortable ride. 
 
 The salesmen or house with a strong individuality or 
 personality will be able to overcome competition even if 
 handicapped by less favorable selling points. The element 
 of business friendship and good-will can swing an order 
 in the face of otherwise adverse conditions. 
 
 The element of competition is not as harmful as gen- 
 erally appears at first glance. In new lines or new fields 
 where one manufacturer alone is hardly powerful enough 
 to create public sentiment or trade sentiment in favor of 
 a certain line of goods, competition is distinctly helpful ; 
 it assists in the educational work. The first player piano 
 company found the introduction of its machine very up- 
 hill work until other companies entered the field. 
 
 To imitate or parallel competitors is to acknowledge their 
 leadership. The better plan is to strike out in a different 
 direction. A still better plan is to assume the leadership 
 right from the start, and to anticipate competitors in 
 every direction as much as possible. 
 
 Above all, the pZafn fear of competition is deadly. Com- 
 petitors are much more feared than facts warrant. Com- 
 petition is undesirable only where sales are absolutely and 
 hopelessly limited to a certain quantity. This, however, 
 is seldom the case. 
 
 76, Competition for Prestige.— One of the most difficult 
 of all business tasks, demanding advanced analysis, was
 
 108 MODERN SALESMANAGEMENT 
 
 found in one investigation to be that of guiding a fairl;^ 
 successful business over the rocks of fierce competition, 
 adverse conditions and sudden stress of various kinds. 
 The one "equilibrator" for all such ups and downs is 
 widely acknowledged to be prestige. Failure to develop 
 or maintain this has wrecked many worthy firms. 
 
 There were found numerous firms whose goods were 
 equally as good as those of competitors, but who could 
 not command the same price for them. The cause was 
 largely lack of prestige. Prestige is the sum total of pop- 
 ular impression about the desirable character of a firm, 
 its goods, and business methods. It represents the faith 
 of the buying public in the quality of the goods and the 
 service and policy of the house — faith in the establishment 
 and maintenance of its standards. 
 
 It will be seen from this definition that any firm of 
 inherent merit, no matter whether large or small, can 
 create and maintain prestige, with proper resourcefulness, 
 even in the face of powerful competition or adverse con- 
 ditions. 
 
 In the past it has generally been considered that pres- 
 tige is a matter of slow growth and therefore only avail- 
 able to firms long established. 
 
 But modern merchandising methods now prove this to 
 be a fallacy, as prestige is now developed by aggressive 
 methods. Time may actually be annihilated. For ex- 
 ample, among retailers, the United Cigar Stores; among 
 manufacturers, the makers of Indestructo Trunks. Cer- 
 tain makers of automobiles have demonstrated the success 
 of quickly developed prestige. 
 
 It has been found that the cultivation of prestige can 
 be so engineered as to impress the public at every point 
 of contact with the business. 
 
 77. Advertising as a Competitive Tool for Prestige. — No 
 matter how small may be the appropriation available, th©
 
 MEETING COMPETITION 109 
 
 proper c(mcentraUon of advertising and the patient per- 
 sistence at it will develop that state of mind among con- 
 sumers which is favorable to prestige. If the advertising 
 squares up with purchasing experience it becomes prestige 
 itself, and later the name alone becomes filled with strong 
 prestige meaning. Advertising then may become less ex- 
 pensive than under any other condition, and when com- 
 petition and stress come, prestige can be many times more 
 easily maintained. It has frequently been said that $3,- 
 000,000 worth of advertising for a soap could not make a 
 dent in the prestige of Ivory Soap. From this it will be 
 seen how advertising in time builds an almost impregnable 
 fortress of prestige. 
 
 It has been the history of most successful firms that 
 have rapidly progressed that they started in with very 
 modest but persistent advertising appropriations, which 
 grew with the business. It is said of John Wanamaker 
 and Cyrus Curtis (of the Curtis Publishing Company), 
 that they got their start by spending almost their last 
 dollar for advertising. 
 
 78. Organization as Competitive Protection. — It will 
 usually be found that small competitors, discovering 
 wherein the organization of large competitors are weak, 
 have deliberately strengthened their own organizations, 
 particularly along these weak points, and have little diffi- 
 culty in maintaining their position. 
 
 The term "organization" as used here applies to the 
 entire distributing organization, including dealers and job- 
 bers. There is a tendency on the part of large firms to 
 be more or less autocratic with the trade. This offers the 
 very opportunity for smaller competitors to enlist more 
 successfully the good-will of the trade, and its coopera- 
 tion. 
 
 It was largely due to this principle that the Hot Point 
 Electric Company, an obscure little manufacturing busi-
 
 110 MODERN SALESMANAGEMENT 
 
 ness on the Pacific Coast, was successful in establishing a 
 large demand for its electric household goods in competi- 
 tion with the giant electric corporations of the country. 
 
 There are many other examples where a small but highly 
 efficient organization has routed a larger one. Sometimes 
 a firm's prestige is really built upon simply the public 
 general feeling that its organization is superior. After 
 all, since what most purchasers buy is the prestige or serv- 
 ice which goes with an article itself, it is natural that the 
 organization behind the article should be given the chief 
 credit. 
 
 Prestige cannot be maintained against the entire current 
 of public opinion and unstemmable drift of tendencies. 
 The only way left to maintain prestige under such cir- 
 cumstances is to change with the times; to key up an or- 
 ganization to meet and conquer a situation; to train it to 
 render the consumer a degree of service not enjoj^ed be- 
 fore and set standards which are ahead rather than be- 
 hind the times. 
 
 Inasmuch as prestige hinges upon such things as leader- 
 ship, favorable public impression, service, organization 
 should direct itself to everything that can have a bearing 
 upon making a friend and giving people an excuse to talk 
 about you. Alert business men are keen to seize an op- 
 portunity to place a possible customer under an obliga- 
 tion; to appear a little different from other houses in a 
 favorable way (even in small matters) ; and to make it a 
 point not to let one customer remain unsatisfied. 
 
 Prestige is a form of business momentum, fostered by a 
 live and highly-trained organization, and has carried along 
 many a house which fortunately possessed it over a period 
 during which firms without prestige would have failed. It 
 is the intangible goal toward the achievement of which all 
 modern live business men give their most careful advanced 
 thought.
 
 CHAPTER XI 
 
 SPLITTING UP SALES TERRITORY AND SETTING QUOTAS 
 
 79. The Logic of Carefully Split Territory. — Good shoot- 
 ing requires clearly marked targets. And alert sales cam- 
 paigning likewise requires the object of attack, the terri- 
 tory to be not only clearly marked off, but analyzed, 
 compared and ticketed with a ratio of logical expectation, 
 in keeping with the particular kind, size and condition 
 of such territory. 
 
 Small wonder, then, that the matter of territory is con- 
 stantly bothering salesmanagers. Some salesmanagers have 
 an old-fashioned inclination to dismiss the matter rather 
 lightly with the old saw, "It's always the man and not 
 the territory." 
 
 But we have gone a long waj^ in salesmanagement from 
 the easy-going notion that selling is little else but a mat- 
 ter of a wizard salesman, and that the thing to do is to 
 key up all salesmen to be wizards at selling. We are 
 ready to put the territory under the microscope and learn 
 not only how to make that territory produce more, but 
 how to do more level justice to salesmen, whose record 
 usually varies in different territories quite as much because 
 of territory reasons as because of difference in sales ability. 
 
 The purposes of scientifically districting sales territory 
 are: 
 
 a. To cover it in an organized way. 
 
 b. To make exact comparisons with other territories. 
 
 c. To equalize, as far as possible, the opportunities and 
 compensations of the salesmen, 
 
 d. To meet competition most effectively. 
 
 Ill
 
 112 
 
 MODERN SALESMANAGEMENT 
 
 Common fatal errors are (1) assigning a salesman too 
 much territory; (2) having salesmen criss-crossing each 
 other's territory because of "personal" customers; (3) 
 working territory spasmodically and spottily. 
 
 80. Best Lines on Which to Split Territory.— The old- 
 fashioned way of dividing sales territory was roughly by 
 states. Progressive firms have found this to be unsatis- 
 factory because, as a rule, a state is a section of a country, 
 formed years ago on an arbitrary basis which has no bear- 
 ing whatever on the sales situation. 
 
 BTANDAB.D SALES DISTRICTS COVERING THE UNITED STATES IN NINB 
 LOGICAL SALES DISTEICTS 
 
 It is conceded by the firms which have tried it, that a 
 county forms a much more satisfactory territorial unit, 
 because, by means of its boundaries, territories can be laid 
 out to fit conditions. At the same time it is the smallest 
 section of the country for which census figures are readily 
 available. The same principle holds true of any smaller 
 sales field, even if the units used be townships. A small 
 unit is best. 
 
 Even though there are decidedly different types of sales
 
 SPLITTING UP SALES TERRITORY 113 
 
 organization and plans of selling, the unit of territory, 
 whether it needs to be small or large, may still quite logi- 
 cally divide on county lines. 
 
 81. How Much Territory Can a Salesman Cover? — Terri- 
 tory is of no value unless it is worked actively. A sales- 
 man can average in cities from 6 to 14 calls per day (al- 
 though in the grocery trade, well organized work of a 
 routine nature may make possible an average of 40 or 50 
 calls in the large cities). In towns of less than 25,000 
 population, the general average (east of the Mississippi) 
 is 3 to 5 calls per day throughout the year. The traveling 
 conditions West of the Mississippi are of such a character 
 that it is impossible to gather authentic figures, applying 
 equally to all sections. These facts are essential to know 
 in avoiding giving a salesman too much to do, which ends 
 in his neglecting part of the trade. 
 
 The only proper basis for dividing territory into sales 
 districts is transportaiion facilities; that is, railway lines 
 must be followed. Everything must hinge on this consid- 
 eration ; but, of course, population or number of prospects 
 is the immediate next deciding factor. These two consid- 
 erations may result in the marking off of what looks like 
 a large and irregular shaped territory, but it may have 
 just the right number of prospects and the be^t traveling 
 connections for efficiency. 
 
 Herewith is shown a standard sales district map, as de- 
 veloped by careful study. It fits almost any national 
 concern which does not have a large number of prospects 
 to call upon in a territory, or which operates on a branch 
 basis. 
 
 To intelligently prepare a sales district split, there will 
 be needed, in addition to railway maps and data, consumer 
 or dealer information, and the number and location of 
 customers or prospects. The more customers there are in 
 a given territory, the smaller should be the area of terri-
 
 lU MODERN SALESMANAGEMENT 
 
 tory per salesman, so that the trade can be covered effect- 
 ively. 
 
 82. Territory Analyzed on a Consumer Basis. — For an 
 article sold to the general public the only basis for esti- 
 mating the proper dividing lines of a sales district is the 
 total number of ultimate consumers. But whether an ar- 
 ticle is sold to the general public or not, the number of 
 consumers, whoever or whatever kind they are, constitute 
 the primary statistical basis of comparison. 
 
 The net population, or net prospects, must be secured 
 by eliminating all the unavailable inaccessible population 
 according to the best estimates that can be secured. Only 
 those who can be reached and who might possibly be per- 
 suaded to buy constitute the net. 
 
 The "inaccessible" population means the population 
 which cannot be reached by rail or is too expensive to 
 reach for practical purposes. 
 
 83. Jobbing Centers and Their Relation to Sales Terri- 
 tory. — Although jobbing centers are themselves determined 
 by the railway situation, it is a matter of freight rates 
 rather than passenger convenience ; therefore some differ- 
 ences of importance in logical centers of territory will dis- 
 close themselves. 
 
 The cities which are located in strategic points consid- 
 ering transportation facilities and the influx of trade from 
 the surrounding counties or states, making them national 
 jobbing centers are : 
 
 Boston Philadelphia Cincinnati 
 
 Pittsburgh New Orleans St. Paul 
 
 Savannah Milwaukee Los Angeles 
 
 Louisville Portland Buffalo 
 
 Seattle San Francisco Atlanta 
 
 Kansas City Chicago St. Louis 
 
 New York City Baltimore Duluth
 
 SPLITTING UP SALES TERRITORY 115 
 
 Such, jobbing cities may logically be chosen in prefer- 
 ence to others as territorial centers, if other considerations 
 are equal. 
 
 84. Territory as Related to Routes of Freight Transport.— 
 Although not vital, it is sometimes valuable to give con- 
 sideration to proposed sales district territory, as related 
 to the center of production or point from which distribu- 
 tion is made. Is it a point from which, or to which, prompt 
 shipment may be made ? If, because of natural conditions, 
 mountains, rivers, etc., it is a quicker road to the counties 
 of Richmond, Lancaster and Northumberland, Va., from 
 "Washington by auto, it is useless to put those counties in 
 a Washington, D. C, or Fredericksburg, Va., territory, 
 when the quickest and most economical way to deliver is 
 by boat from Baltimore. 
 
 The attention of a concern was once called to another 
 instance of this. Shipments were being made by railroad 
 in New York, lightered to some Jersey point, thence rail- 
 roaded to destination, whereas, if the shipper had studied 
 his maps, he would have found that the factory and ship- 
 ping point were in a straight line of travel and that an 
 auto truck would deliver at less expense and with greater 
 dispatch at a distance of 15 miles. Considerations like 
 these affect territorial lines and are profitable to take into 
 account. 
 
 85. Special Conditions of Big City Territory. — Large cen- 
 ters such as New York and Chicago constitute a territory 
 by themselves, which need to be subdivided on the same 
 principles as a state, using wards or streets for boundaries. 
 
 Metropolitan territory is always by far the most diffi- 
 cult to handle unless it is well organized and subdivided. 
 A shoe manufacturer who had a careful analysis made of 
 the New York district, had prepared a large elaborate map 
 on which location of prospects with their consumption 
 possibilities were indicated by different colored pins.
 
 116 MODERN SALESMANAGEMENT 
 
 Rigid! territorial lines were then designed, to displace the 
 chaotic condition which had prevailed, in which salesmen, 
 because of personal acquaintances in the trade, were call- 
 ing on customers in all sections of the city — each sales- 
 maJi "criss-crossing" the entire territory. Great econ- 
 omy resulted from the change, aaid of course greater sales. 
 This is a danger peculiar to large city markets. 
 
 Frequently the enormity and complexity of big city 
 markets like New York or Chicago scare away many who 
 should be doing a thriving business. There are many na- 
 tionally known and nationally advertised articles which 
 are not kept in stock by a single New York or Chicago 
 or Boston dealer. The reason is fear and lack of facilities 
 or courage to make the detailed analysis necessary. 
 
 A big city market should always first be divided into 
 natural zones graded according to classes of prospects, 
 volume or type of trade, average house rentals, etc., and 
 then concentrated upon with a selling plan. If autos or 
 trucks are to be part of the sales plan it is important to 
 cut the territory on a basis of auto routes as well. 
 
 In fact, zones in big cities will largely depend on rapid- 
 ity of call and delivery of goods. This is determined by 
 what competitors do and what the trade expects. 
 
 In a few large cities, a daily paper has canvassed the 
 city, making commercial surveys (as did the Neiv York 
 Globe and the Chicago Trihune). The work gives the 
 names and addresses of practically every retailer and esti- 
 mates the buying power of each section. From this in- 
 formation, salesmen can be routed and from previous 
 experience as to possible calls in a day and a glance at 
 these splendid maps, a very fair territory can be assigned. 
 In some of the medium-sized cities, wholesale concerns and 
 Chambers of Commerce have compiled similar information, 
 so that route lists of retailers can be purchased. For in- 
 stance, Columbus, Ohio, is divided into four sections, trol-
 
 SPLITTING UP SALES TERRITORY 11? 
 
 ley traffic determining the division, and the dealers so 
 listed that even a green man can peg his way around effi- 
 ciently. 
 
 86. Territorial Sales Organizations. — District sales or- 
 ganizations requiring many salesmen are best built up by 
 giving district managers Vi^ho are on commission a free 
 hand to build up sales, the men called "juniors" directly 
 under them being required to observe the standard rules 
 of the house. Where not over 100 salesmen are required 
 to work the field, "direct routing" from the home office 
 is best, in order to keep all salesmen up to strict and uni- 
 form standard, and to line up the work to the headquar- 
 ters standard. 
 
 "When there are many men under district salesmanagers 
 it is necessary to organize the territory and route it for 
 traveling lecturers, sales conventions, etc., to keep the or- 
 ganization at high pitch. Territorial sales organizations 
 are in constant need of expert attention from headquarters. 
 
 The cutting up of sub-territory in a branch by the 
 branch manager should have the careful review of the 
 headquarters staff, as many serious errors are made and 
 bickerings started. The cutting down of a salesman's ter- 
 ritory is always a delicate operation, more delicate than 
 adding to it. 
 
 The same principles of splitting up general territory 
 apply in miniature to splitting up branch territory. A 
 salesman should be granted the right of appeal to head- 
 quarters on any mention of trouble over territory assign- 
 ments. 
 
 87. An Efficient Layout of National Sales Districts. — It is 
 an excellent idea, in efficient sales district planning, to 
 take the plan in use by some general national selling 
 concern and contrast it against an individual case. The 
 author, therefore, presents here one of the most systematic 
 sales district layouts he has found, that of a big electrical
 
 118 MODERN SALESI^IANAGEMENT 
 
 house that sells to both retailers and large individual con- 
 sumers, and also advertises extensively to the public. 
 
 The map on page 112 shows how it has districted its 
 sales organization. While No. 3 seems a bit large in pro- 
 portion, it is only so in traveling distances, and is well 
 laid out from a railroad point of view, as well as from 
 other points of view. 
 
 The following is a table showing sales district head 
 offices, and district areas, population and density. An- 
 other table shows the subdivisions by boundary lines and 
 counties. 
 
 Population in Land area Population 
 District 1910 Census Sq. miles per sq. mile 
 
 1 Atlanta 10,422,786 285,613 3.645 
 
 2 Boston 5,603,998 58,739 95.41 
 
 3 Chieaffo 25,028,562 836,215 29.93 
 
 4 Cincinnati 10,979,461 146,576 14.89 
 
 5 Denver 1,950,857 501,122 3.89 
 
 6 New York 12,158,393 54,686 222.33 
 
 7 Philadelphia 15,585,263 174,463 89.33 
 
 8 Pacific Coast 4,490,096 499,275 8.99 
 
 9 Texas 5,752,850 413,335 13.92 
 
 88. The Districts and Their Boundaries and ITatural Cen- 
 ters. 
 
 Atlanta — S. Carolina, Georgia (Except the Counties of "Whit- 
 field, Catoosa, Walker and Dade) ; Florida, Alabama, Mis- 
 sissippi, Louisiana. 
 
 Boston — Maine, New Hampshire, Vermont, Massachusetts, Rhode 
 Island, Connecticut (Counties of Tolland, Windham and New 
 London). 
 
 Chicago — Indiana (Except the Counties of Adams, Wells, Grant, 
 Howard, Clinton, Montgomeiy, Parke, Vig-o and the territory 
 south thereof) ; Illinois, Michigan, Wisconsin, Minnesota, 
 Iowa, Missouri, Arkansas, Kansas, Nebraska (East of the 
 102d Meridian); South Dakota (East of Missouri River); 
 North Dakota, Montana. 
 
 Cincinnati — Ohio (Except the Comities of Mahoning, Colum- 
 biana, Jefferson, Belmont and Monroe) ; Kentucky, Tennes- 
 see, North Carolina (Counties of Cherokee, Clay, Graham, 
 Macon, Swain, Jackson, Transylvania and Haywood } ; In-
 
 SPLITTING UP SALES TERRITORY 119 
 
 diana (Counties of Adams, Wells, Grant, Howard, Clinton, 
 Montgomery, Parke, Vigo and the tenitory south thereof) ; 
 Virginia (Counties of Lee, Seott and Wise) ; Georgia (Coun- 
 ties of Whitfield, Catoosa, Walker and Dade). 
 
 Denver — Colorado, New Mexico ( Excej^t the Counties of Socorro, 
 Lincoln, Chaves, Roosevelt and Curiy and all temtoiy south 
 thereof) ; Utah, Wyoming, South Dakota (West of Missouri 
 River) ; Idaho (Counties of Adams, Boise, Custer, Lemhi, 
 Fremont and all territory south thereof) ; Nebraska (West of 
 the 102d Meridian) ; Nevada (Counties of Elko, Eureka, 
 White Pine, Lincoln and Clark). 
 
 New York — New York, New Jersey (Counties of Mercer and 
 Monmouth and the territory north thereof) ; Connecticut 
 (Counties of Hartford, Litchfield, Fairfield, New Haven and 
 Middlesex); Pennsylvania (Erie County only). 
 
 Philadelphia — New Jersey (Except the Counties of Mercer and 
 Monmouth, and the territory north thereof) ; Pennsylvania 
 (Except Erie County) ; Ohio (Coimties of Mahoning, Colum- 
 biana, Jefferson, Belmont and Monroe) ; West Virginia, 
 Maryland, Delaware, District of Columbia, Virginia (Except 
 the Counties of Lee, Seott and Wise) ; North Carolina (Ex- 
 cept the Counties of Cherokee, Clay, Graham, Macon, Swain, 
 Jackson, Transylvania and Haywood). 
 
 Pacific Coast — California, Arizona (Except Counties of Santa 
 Cruz, Cochise, Graham and Gila) ; Nevada ( Except Counties 
 of Elko, Eureka, White Pine, Lincoln and Clark) ; Idaho 
 (Except the Counties of Adams, Boise, Custer, Lemhi, Fre- 
 mont and all tenitoiy south thereof) ; Oregon, Washington, 
 Alaska, Hawaiian Islands. 
 
 Texas — Oklahoma, Arizona (Counties of Santa Cruz, Cochise, 
 Graham and Gila) ; New Mexico (Counties of Socorro, Lin- 
 coln, Chaves, Roosevelt and Cuny and all territory south 
 thereof) . 
 
 89. Data Needed Concerning Sales Districts. — The data 
 concerning each sales district which may profitably be kept 
 for standard comparison is as follows: 
 
 a. Total and per capita consumption — by individual 
 products, by grades of towns, etc. 
 
 b. Total and net population — divided by classes, 
 wealth, income, occupation, rating, etc. 
 
 c. Consumers — divided by classes, by volume, char- 
 acter, products bought, activity, credit, etc.
 
 120 MODERN SALESMANAGEMBNT 
 
 d. Prospects divided by classes — former customers, in- 
 terested, possibles, "hard shells," almost hopeless, black 
 list. 
 
 e. Sales records for each of above separate divisions, 
 uniformit}^ for all districts. 
 
 f. Sales records of each individual salesman — traveling 
 expense percentage, sales, average efficiency of call, length 
 of jumps, etc. 
 
 g. Number of dealers and prospects per 1,000 of pop- 
 ulation and per square mile and per mile of railway re- 
 quired to travel. 
 
 h. Maximum sales per annum of individual dealers or 
 customers; minimum and average sales. Also average size 
 of order, frequency of order and variety of stock carried, 
 complaints, cessations, failures, credits, ratings, cancella- 
 tions, returns, etc. 
 
 i. Percentage of distribution — of dealers in each line 
 of trade handling the goods. 
 
 j. Competition figures for as many of above items as 
 possible. 
 
 k. Quota figures and percentages based on above fac- 
 tors. 
 
 1. Data concerning jobber, or distributing situations for 
 comparison. 
 
 90. Eeduction of Sales Territory. — As a general thing, 
 most sales territories are too large. It has been a long- 
 standing fault of most sales organizations that they have 
 attempted to cover too much ground. This has naturally 
 increased sales expense. A salesman selling $100,000 worth 
 of goods in a territory may be operating in a $200,000 a 
 year territory, if only it was split in two and all possible 
 customers canvassed. No territory that is not thoroughly 
 worked is really "covered." Instances are plentiful of 
 territory cut in half 3 or 4 times, with the result that each
 
 SPLITTING UP SALES TERRITORY 121 
 
 time the territory gets smaller the sales increase — and of 
 course the expenses also relatively decrease. 
 
 The volume of possible business in a territory is the 
 guiding factor as to natural limits of territory. As a gen- 
 eral rule a salesman should have only as much territory 
 as vs'ill provide about twice his present sales if logical 
 prospects of immediate sales are considered. Care needs 
 to be taken in splittmg territory to follow logical travel 
 routes and make a generally equitable subdivision. 
 
 It frequently happens that territorial rights are sold, 
 and after the article is developed this territory is neg- 
 lected and not worked intensively. It is not very good 
 business to continue such contracts — they are millstones; 
 the territory should be cut up and aggressively worked. 
 
 91. Applying the Per Capita Measure. — Volume of busi- 
 ness is for nearly all merchandise of fairly general con- 
 sumption, in very close ratio to population. Therefore, it 
 is of the highest stimulative as well as statistical value to 
 establish special per capita measures for cities and towns 
 of certain sizes and grades. 
 
 A standard line-up of classes of towns by sizes may be 
 drawn up ; cities of 300,000 and over ; cities of 100,000 and 
 over; cities of 50,000 to 100,000; cities of 25,000 to 50,000; 
 towns of 10 to 25,000 — all the way down to towns of 1,000 
 to 2,500 population. A clear picture is made by using a 
 system form giving the total number of towns, the total 
 population, the number of towns sold, total population of 
 towns sold, and net amount sold per capita, population 
 sold and possible sales total at some rate per capita. At 
 the bottom of the table there may be shown a study of 
 assortments carried — a study of what is the average quota 
 which the dealer of a certain size in a certain town should 
 carry. Such an analysis makes comparisons and thereby 
 exposes the weak spots. We then have a measure of what 
 volume ought to be sold in any town of a certain size.
 
 122 MODERN SALESIVIANAGEMENT 
 
 Having this we can use it upon salesman and dealer alike. 
 It works this way: — the salesman goes into Podunk to a 
 dealer there: "Mr. Jones, your sales in this town are just 
 about 25 per cent of what the towns of your size are doing. 
 The towns of your size all around you and in other States 
 are doing four times the amount of business you are 
 doing," You show him the figures to prove it, and say, 
 "I would like information as to whether you think this 
 towTi is worse than the average," 
 
 Very few dealers will maintain that their town is worse 
 than others. It is a strong selling point to show him what 
 other towns of the same size in other parts of the country 
 do. The information (based on actual fact) that there is 
 no difference beyond 10 per cent variation in any town of 
 any similar size in any sales proposition sold to the gen- 
 eral public, is both interesting and stimulating to him. 
 
 It is also valuable to make a recapitulation by States 
 of per capita sales in a certain grade of towns. Another 
 table may deal with all the grades of towns in one State. 
 At the top this form may show the general percentage of 
 the towns in this group sold and of the population sold. 
 (See sj'stem form illustrated herewith.) 
 
 92. Fitting the Territory tO' the Salesman. — A jobbing 
 salesman's territory can cover a space with enormous pop- 
 ulation, while a salesman selling retail stores would have 
 a territory in a city largely determined by population, for 
 population governs the number of retail stores in a given 
 community, 
 
 A salesman who makes a success of one territory may 
 fail in another. It is not so often the fault of the sales- 
 man that he does not succeed as it is the fault of the man 
 who allotted him the wrong place. A smart, intelligent, 
 well-bred man made a failure of a Hebrew section of 
 Chelsea, Mass., but he is now a howling success in Boston 
 5ack Bay, where the environment suits his nature. The
 
 SPLITTING UP SALES TERRITORY 123 
 
 enthusiastic type of mind may be at a disadvantage in a 
 field where the cold, calculating buyer is found. Territory 
 may best be allotted to the man where the line of thought 
 is similar to his own, A Western man may lose his con- 
 fidence in himself endeavoring to sell in a conservative 
 Eastern State. 
 
 A man accustomed to the mentality of men in big con- 
 cerns cannot easily get the attitude of the small trades- 
 man, and vice versa. In the food products line, it has been 
 shown that a type of mind such as one finds in an aggres- 
 sive grocery clerk, arrives at a quick understanding with 
 the man who runs the small grocery store; whereas other 
 types, accustomed to deal with more intelligence, does not 
 make a hit with the commoner types of retailers. 
 
 Acquaintanceship is a factor which often comes up for 
 attention — should it be counted in allotting territory? 
 One concern in marketing a certain competitive article 
 followed this procedure: men acquainted with the trade 
 were secured and allowed to go where they pleased. After 
 a definite period territories were laid out to include the 
 greatest number of accounts possible, secured by these 
 men. 
 
 It is better, however, to fit the salesman to the class of 
 prospects he knows without compelling him to scatter his 
 efforts over a wide area. To do this requires full infor- 
 mation, not only of facts concerning the territory, but the 
 kind of people in the territory and the degree of resistance 
 to be encountered. A salesman transferred from territory 
 where sales have been established to a territory where the 
 entire proposition is new, and where it is indifferently re- 
 ceived, ofttimes is irreparably harmed — his confidence in 
 himself or his goods is given too great a jar.
 
 CHAPTER XII 
 
 THE SELECTION OF SALESMEN 
 
 93. Wliy Salesmen Are Difficult to Select. — Few subjects 
 have interested and puzzled salesmanagers as much as the 
 picking of good salesmen. INIany salesmanagers have de- 
 veloped superstitions and rules of thumb on the subject; 
 others have given considerable credence to alleged sciences, 
 such as phrenology, etc. 
 
 The difficulty is, of course, that a good salesman must 
 nearly always sell intangible considerations; must appeal 
 to imagination and must day after day pit himself vigor- 
 ously against powerful opposing forces. Such work calls 
 for intangible (and therefore invisible) qualities in sales- 
 men, which can only be detected by a considerable degree 
 of probing. There are simple-minded types of people who 
 imagine that externals indicate a salesmen, but no greater 
 mistake can be made. The selection of a good salesman is 
 so uncertain a matter that many experienced salesmanagers 
 frankly admit it is a gamble, and others rely chiefly on the 
 intensity of desire of the applicant to be a salesmen (even 
 if, as in one actual case, he is a street car conductor). 
 
 Nevertheless, there persists a feeling, based on experi- 
 ence, that a good judge of human nature, as a salesmanager 
 is always presumed to be, can size up a man and by semi- 
 mysterious ability or clairvoyance, pick the man who has 
 real salesmanship material in him. Many salesmanagers 
 regard such an ability as perhaps their chief stock-in- 
 trade. 
 
 But it is a very serious question whether the most ex- 
 
 124
 
 THE SELECTION OF SALESMEN 125 
 
 perienced judges of human nature can get very far in 
 selecting men by personal size-up alone. Salesmen are 
 trained to "put up a front" and the bitter truth is that 
 large numbers of mere rioaters and dishonest men get on 
 the payrolls of salesmanagers for drawing accounts from 
 a number of firms all at one time. They look and talk 
 like good salesmen, but are crooks. Many of the very best 
 salesmen make a poor first impression and are strangely 
 self-conscious in an interview over a job. Ability to sell 
 merchandise is ofttimes in inverse ratio to ability to sell 
 himself. 
 
 It must be admitted, therefore, that selecting salesmen 
 is one of the most unsatisfactory phases of salesmanage- 
 ment at the present time ; there is little reliable knowledge 
 to go by. 
 
 94. Can Salesmen Be Picked from Appearance? — First 
 impressions about sales applicants are everywhere agreed 
 to be dangerous. Hugh Chalmers made it a rule never to 
 hire a man during a first interview. But what judgments, 
 if any, are proper to make of a man who sits before you? 
 
 Phrenology, contrary to the belief of some, can offer very 
 little help. At best, physical characteristics offer sugges- 
 tions but not facts about a man. Most of the qualities 
 that make real salesmen are far from anything physical. 
 It is true that all men instinctively admire a good physique, 
 a graceful physique; and it is even true that there is 
 something confidence-inspiring in mere size, when not 
 marred by other typical characteristics of men of large 
 size, such as slovenliness and lackadaisical attitude. 
 
 But as for "tell-tale" charactertistics in facial forma- 
 tion or other externalities, they are extremely likely to be 
 misleading, beyond very simple limits. Moreover, a sales- 
 manager is usually prejudiced in his idea of appearances 
 by his own appearance. In Detroit a test of a group of 
 salesmanagers showed that there was practically no uni-
 
 126 MODERN SALESMANAGEMENT 
 
 formity among salesmanagers in their ratings of the same 
 men. Their intuitions were all personal and individual 
 to them. One salesmanager would rate a man 3, another 
 13 and another 57. 
 
 One firm overcomes this by having a standard rating 
 form, and five instead of one executive interview a man, 
 and the average of their ratings are accepted as the real 
 one. But is even this conclusive? Few salesmen could 
 face a "jury of five" and register their true selves. 
 
 As to the claims made for detection of certain qualities 
 by certain facial or other characteristics, certain facts, it 
 is true, may be ascertained, but their value after being 
 ascertained is conditioned by so many other facts that 
 they can only be called contributory facts after all. For 
 instance, a thick neck and large nostrils are known medi- 
 cally to denote more than usual vitality. But such mat- 
 ters of popular supposition such as squareness of jaw, 
 highness of forehead, shape or contour of head, or shape 
 of nose offer no reliable information whatever which has 
 stood authoritative test. The only judgments valid to 
 make about a man's physique are on matters of physique. 
 It is the attempt to read mental meanings into physical 
 characteristics that is unwarranted. 
 
 The real values to be secured from judgment by ap- 
 pearance are not so much from the applicant's body as 
 from his mind and spirit as they evidence themselves in 
 conversation and general personality. It is here that 
 knowledge of human nature shows in judging a man's ag- 
 gressiveness, his prevailing moods and temperament, his 
 characteristic attitude, his quality of reasoning, his edu- 
 cation, environment, dominating ideas or principles, his 
 moral values, etc. All these things have very important 
 bearing on selling, and can only be accurately judged from 
 the man himself ; but certainly not from his mere physical 
 appearance.
 
 THE SELECTION OP SALESMEN 127 
 
 95. The Use of Application Forms. — A number of very 
 elaborate application forms for salesmen have been de- 
 vised. All have good points to them, for certainly almost 
 any information about a man may help in judging him. 
 But there is a decided danger in the use of application 
 forms. They are self-rating forms — filled in by the ap- 
 plicant, and must be discounted in many respects because 
 no man can accurately or honestly rate himself. 
 
 Application forms should never ask for anything but 
 specific fact answers; never judgments of self. 
 
 96. Need for Applying* Scientific Test to Applicants. — ■ 
 Because of the fact that there are many fairly adequate 
 standards for testing men in many other vocations, it has 
 naturally been expected that the application of science 
 to the selection of salesmen would also yield results. A 
 group of large concerns have endowed a special depart- 
 ment in the Carnegie Institute of Technology at Pitts- 
 burgh, with Professor Walter Dill Scott at the head, to 
 work out possible scientific methods for such selection. 
 This Professor Scott himself realizes is a long and labor- 
 ious process. Nevertheless, Professor Scott has done some 
 interesting work already along this line, utilizing the sales 
 forces of a number of prominent concerns. Other experi- 
 menters and psychologists are also at work on this project, 
 and in the course of time no doubt something valuable will 
 come forth. Professor Scott did unmistakably demon- 
 strate in his test with a great tobacco house and their sales- 
 men that there is a correlation between the judgment of 
 the salesmanager and the results of a scientific test. It 
 was a high ratio, and certainly speaks well for the con- 
 servative application of some form of scientific test. Pro- 
 fessor Scott was wise enough not to use any arbitrary 
 standard for judgment, but endeavored to secure some 
 measure of native ability by the use of intelligent tests 
 of a general sort which gave a clue to such native ability.
 
 128 MODERN SALESIVIANAGEMENT 
 
 The success in the high correlation of these tests with 
 practical judgment would indicate that the native ability 
 of a man, his quickness, his general intelligence, his 
 judgment, his knowledge is of considerable more im- 
 portance than any so-called salesmanship science or spe- 
 cial rule of thumb formula for making a success at 
 selling. 
 
 It would appear that it will soon be possible to list a 
 group of native qualities which a salesman needs to have, 
 and even to give some measure of that quality which he 
 needs to have as a minimum in order to stand a chance 
 of succeeding as a salesman. Once such a test is developed 
 and it stands the rough-and-tumble usage of ordinary 
 practice, it will be a great boon, alike to salesmen. Much 
 waste of energy and feeling comes as a result of men who 
 can never hope to sell with their present equipment of 
 native quality, trying to make salesmen out of themselves, 
 or of salesmanagers who for pride and stubbornness' sake 
 waste their energy trying to make salesmen of men who 
 should not be asked to waste their time on it. 
 
 One salesmanager has devised a homely but practical 
 way of rating men, according to plus-minus qualities. He 
 analyzes each man according to the specific qualities here 
 outlined, and marks alongside of each one a figure. The 
 qualities used are as follows: 
 
 Plus Qimlities Minus Qualities 
 
 agreeable bad-tempered 
 
 dignified grouchy 
 
 loyal intemperate 
 
 willing variable 
 
 trustworthy easily discouraged 
 
 well poised jealous 
 
 fine in appearance sensitive 
 
 broad-visioned treacherous
 
 THE SELECTION OF SALESMEN 129 
 
 Plus Qualities Minus Qualities 
 energetic lacking in spirit 
 strong of personality egotistic 
 persistent lazy- 
 regardful of discipline unambitious 
 
 He marks the man up to 10 for each one of the plus 
 or minus qualities; and then subtracts from the plus 
 total the total minus qualities. This process accurately 
 establishes a coordinate figure representing general de- 
 sirability from both a plus and minus point of view. 
 
 The plan is, like all judgment plans, open to error, 
 but in the absence of a better plan is systematic. 
 
 97. Principal Native Qualities Generally Agreed to be 
 Essential for Salesmen. — At the present time in the absence 
 of any more accurate means of picking salesmen, the 
 consensus of experience and opinion favors a cautious in- 
 tuitive judgment of a candidate. This judgment must 
 be a thoroughly sympathetic yet hard-headed judgment, 
 without having been swayed by any tricks of personality 
 or personal bias. It must be a judgment cool enough to 
 see that the best salesman of the year may lurk behind 
 an untidy and even an antagonizing exterior personality. 
 It must be a judgment clear enough to detect the signs 
 of false values, fatal weaknesses and latent possibilities; 
 yet deliberate enough not to be too easily affected by first 
 impressions. 
 
 The nearest approach to system possible by this intuitive 
 method is to set down the principal native qualities agreed 
 to be essential in selling — the qualities which some men 
 seem bom with and others deliberately acquire by cultiva- 
 tion. 
 
 1. Stamina, staying power, stubborn persistence; un- 
 willingness or inability to acknowledge or even recognize 
 defeat.
 
 130 MODERN SALESMANAGEMENT 
 
 ^. Persuasive force; physical magnetism or patient fa- 
 cility in affecting the ideas and opinions of others. 
 
 3. Unusual energy and ambition to succeed in selling; 
 restless dynamic power and punch in following up sales 
 work; desire to make a good income at selling. 
 
 4. Quickness and adaptability; sociability; diplomacy; 
 readiness to adjust to surroundings and to different tem- 
 peraments. 
 
 5. Alertness and perception ; ready absorption of in- 
 formation ; intelligent grasp of a situation ; versatility ; 
 soldier-like discipline and esprit de corps in following a 
 leader. 
 
 Any man with a fair share of the qualities enumerated 
 above can sell goods — not any or all kinds of goods, nor 
 in any or all territories perhaps, but the qualities listed 
 are the solid ground underneath any selling ability. Some 
 salesmen, when analyzed, will be found to have only a few 
 of these qualities, but these few exceptionally well de- 
 veloped; while others will have a more even distribution. 
 An excellent plan is to rate applicants for these five sets 
 of qualities on a percentage scale ; a maximum of 20 points 
 to each set, or a total of 100 possible points for all five. 
 If special conditions for selling of a certain article make 
 one or more of these qualities more important than others, 
 they can be "weighted" by allowing 25 or 30 points in- 
 stead of 20, deducting correspondingly from the others. 
 
 It must not be forgotten that even when done by a 
 master analysist, an intuitive judgment of men on these 
 points is certain to be imperfect. Therefore the utmost 
 clear-eyed judgment and care should be exercised in rating 
 men, since it means so much both for the man and the 
 employer not to make a mistake. The typical fault of any 
 intuitional judgment is the easy swiftness with which 
 it is usually made and the stubborn cocksureness with 
 which it is usually clung to. The best safeguard against
 
 THE SELECTION OF SALESMEN 131 
 
 this is to have two or three executives, preferably of op- 
 posite temperaments, rate the applicants, and then merge 
 ithe results. The rating should never under any circum- 
 stances be done at a first interview, and should preferably 
 be in informal surroundings. 
 
 98. "Star" Salesmen versus Average Salesmen. — The con- 
 viction has slowly dawned on salesmanagers after years 
 of experience that the hopeful searching for "star" sales- 
 men is a superstitious error; that not only are "star" 
 salesmen (in the sense of super-brilliant performers) a 
 doubtful asset, but that they take attention away from 
 the rank and file, and discourage the all-important aver- 
 age man. A great mistake very common among sales- 
 managers in the past has been the affectionate coddling 
 of a small group of star men, and the shaping of all rules, 
 plans and efforts on the assumption that all salesmen 
 were or should be like the so-called star men. Nothing 
 could be a more costly sales fallacy. It has well been said 
 that the most important job of the salesmanager is to de- 
 velop "the tailenders." 
 
 The salesmanager habitually looking over applicants for 
 a star salesman invariably commits two errors (1) of over- 
 looking the valuable average man; (2) of being either too 
 credulous or too critical of the material which comes be- 
 fore him. He is under the handicap of trying to fit a suit 
 of clothes built for Apollo upon the average run of men, 
 with the result either that he puts the clothes on a man 
 whom they don't fit and makes himself believe they fit, 
 or else he never finds any one whom they will fit. 
 
 It is upon average salesmen whom ninety-nine one- 
 hundredths of the selling of the business world must de- 
 pend. The "star" salesman who is making big sales may 
 usually be explained either by some special advantage or 
 by methods and helps which if operated by average sales- 
 men would make "star" men of them, too. The true-to-
 
 132 MODERN SALESIMANAGEMENT 
 
 type, bona-fide "star" salesman is as a rule a highly in- 
 dividual, emotionally keyed-up man with a temperament 
 which brooks little or no discipline, is no team-worker, 
 is vain and jealous. He rarely stays long with one prop- 
 osition, and works only in spurts. He is not a good man, 
 as a rule, to introduce into a sales force ; not infrequently 
 he operates by questionable methods the full details of 
 which he regards as his secret capital stock in trade, and 
 which are boomerangs. 
 
 The nearer to the ''norm," or average, a man is the 
 more promise he offers and the less chance of failure or 
 friction. I\Iediocrit3^ is only undesirable in salesmen over 
 35 years of age when it has become a habit. 
 
 99. Preference for Young "Green" Material. — A surpris- 
 ingly large percentage of salesmanagers have a distinct 
 preference for "green" material, usually in the shape of 
 young college men. The reason for this common prefer- 
 ence is simple: — it is a salesmanager's "easiest way." In- 
 stead of the diplomacy and partial self-effacement called 
 for in the handling of salesmen of mature years and 
 some experience, a salesmanager has little trouble in 
 stamping his own ideas upon the pliable minds of verj' 
 young men. The more vanity or egotism or laziness of 
 mind he has the more surely does he prefer this method. 
 It surrounds him with a crowd of young hero worshipers 
 before W'hom he can strut and whose every word will be 
 listened to religiously. There is no difficulty in such a 
 method of handling a group of difTering personalities — 
 young men can be herded and trained and managed as a 
 crowd. They have just come from a place (school) where 
 the crowd method of handling them was in operation. They 
 are used to it. 
 
 But while this method has a fair measure of success 
 to its credit, it has many grave defects. The most serious 
 is the effect on the salesmanager himself. He is tempted
 
 THE SELECTION OF SALESMEN 133 
 
 to "schoolmaster" his salesmen and deaden their initiative 
 so that they always wait upon him for their inspiration, 
 ideas and energy. 
 
 Moreover, a salesmanager who has a chronic prefer- 
 ence for young, green material frequently limits his own 
 sales volume. He tries to fit his own conception of sales- 
 manship ready-made upon every one of the men, with a 
 result that it does not fit the characters of the men, and 
 He never secures the variety of appeal and approach which 
 would logically come from a sales-force more varied and 
 individual, which he could shift about to fit the equally 
 varied conditions of the field. 
 
 From the standpoint of the firm such a policy is espe- 
 cially bad, as it encourages a purely personal basis be- 
 tween salesmen and salesmanager which destroys a large 
 part of the efficiency of the force if the salesmanager is 
 changed. There are cases where such young salesmen 
 cannot sell unless their particular salesmanager is guid- 
 ing them. 
 
 There is no basic objection to young green material, 
 if it is not made a mere obstinate rule. There is no 
 doubt of the greater adaptability of young men ; of their 
 greater ease of management, and quicker response to stim- 
 ulation. But it must always be remembered that they 
 correspondingly become more easily and rapidly discour^ 
 aged, and have less weight and influence in counsel with 
 retailers or customers than men of more substantial and 
 mature individuality. Young men may have more ''zip," 
 and "go over the top" with more careless courage than 
 older men, but they always need their stimulators very- 
 close by while they do so. In selling the salesman is nearly 
 always out grappling alone with obstacles, and in the long 
 run under such conditions it is the mature individuality 
 wh^ch grapples best. Any selection of young green mate-
 
 134 MODERN SALESIklANAGEMENT 
 
 rial should be for the purpose of as swiftly as possible 
 making it self-sustaining and thoroughly individual. 
 
 As for the preference of some salesmanagers for 
 "green" salesmen (not young, but who have never sold 
 the line before), this is a moot question. The claim is 
 made that salesmen gather prejudices and set notions as 
 they work at a line, and it is hard if not impossible for 
 them to unlearn these notions. The obvious logical an- 
 swer is that the matter hinges not upon the question of 
 a rule to prefer green material, but upon the question 
 of the individual candidate's attitude toward his expe- 
 rience and to himself. i 
 
 100. Selecting Salesmen Who Can Sell Policies as Well CS' 
 Merchandise. — There is a new and vital factor arising in 
 the selection of salesmen. Salesmen formerly were se- 
 lected for ability to sell merchandise — concrete, physical 
 merchandise. But salesmanship to fit modern needs and 
 conditions has greatly changed in its requirements from 
 salesmen. The modem selling proposition is often 40% 
 merchandise and 60% service, prestige and psychology. In 
 other words, the typical sale is not wood, steel or paper, 
 but service, satisfaction, re-orders, turnover, demand, ad- 
 vertising, and the reputation of the house. Indeed some 
 firms (to name an example, Hart, Schaffner & Marx, delib- 
 erately instruct their salesmen to take largely for granted 
 the tangible merits of the merchandise and to sell instead 
 the above-mentioned intangible values. It is necessary to 
 do so in many cases because dealers themselves are getting 
 wise to the fact that merchandise in itself is not the im- 
 portant thing to buy; that they must buy salability, ad- 
 vertising support, steady customer development and turn- 
 over opportunity. 
 
 Most live houses to-day are requiring that their sales- 
 men devote at least one-half or two-thirds of their canvass 
 to the selling of these intangible values — the advertising
 
 THE SELECTION OF SALESMEN 135 
 
 of the house, its policies, its idea of service, the service 
 which the article gives to the consumer, etc. 
 
 Now, there is a very decided difference between the 
 selling of intangible things and tangible things. A manual 
 type of character — that is, a man with the instinct for 
 mechanics and concrete things — and who lacks imagination, 
 versatility and mental outlook and the ability to think ab- 
 stractly, is at a very decided disadvantage in the selling 
 of intangible merchandise. A man who can sell drill- 
 presses, for instance, is usually a mighty poor hand at sell- 
 ing a set of books. A set of books represents only a heap 
 of paper — valueless, unless the imagination of the prospect 
 is built up to a point where he will appreciate the abstract 
 ideas which are contained in that set of books. Conse- 
 quently, the successful book salesmen must have in a high 
 degree the ability to sell intangible values. There are such 
 book salesmen who never even show the books to the pros- 
 pect and sell the stuff merely by their talk. This is selling 
 intangible values with a vengeance! 
 
 A large agricultural concern in the West so much appre- 
 ciates this factor of ability to sell intangible values in 
 salesmen that they have actually selected for salesmen in 
 preference to agricultural men, men who have sold adver- 
 tising space, on the practical theory that as their sales- 
 men are obliged to sell a great deal of the house's adver- 
 tising and to talk both the house's national advertising 
 and the dealer's own retail advertising, that they simply 
 had to ha(ve men who understood the subject and who could 
 sell it. This firm had floundered around for years with the 
 old type of agricultural implement salesman who knew 
 mechanics from A to Z and who did not seem to "get over" 
 in competition with other live concerns. They woke up 
 finally to the fact that they were not really selling steel 
 and wood, but were actually selling service, advertising 
 cooperation to the retailer, etc. — a type of merchandise
 
 136 MODERN SALESMANAGEMENT 
 
 with which their salesmen were not at all familiar or 
 adapted by nature and capability of selling. Endeavors 
 to train them to sell this kind of merchandise were unsuc- 
 cessful, and these old-timers were finally eliminated, and 
 modern men who understood how to sell intangible values 
 were put in their places with decided success. 
 
 The average salesman who sells a dealer, sells a line of 
 goods which averages only from % of 1 to 5% the total 
 volume of that dealer's business. It can readily be imag- 
 ined then that an up-to-date dealer cannot give very much 
 of his time to a salesman selling a mere fraction of his 
 total volume. He has bigger things to think about, and 
 unless that salesman can think about those things with him, 
 and talk in terms of one hundred per cent of his selling 
 problems instead of one-half of one per cent, the salesman 
 is bound in the average to get scant attention. The sales- 
 man, on the other hand, who talks the whole one hundred 
 per cent is the really welcome man there, and consequently 
 general broad business ability and helpfulness are super- 
 seding in importance the mere technical knowledge of the 
 salesman of his goods. It matters much less than it ever 
 did before whether a salesman knows tht intricate details 
 of his product in a technical way; but it matters a tre- 
 mendous lot that he is able to sit down with a merchant 
 and discuss the real things that dealer is interested in, 
 whether with regard to his particular line of merchandise 
 or his whole business problem. 
 
 101. Selecting Salesmen to Fit Type of Men They Will 
 Sell to. — A salesman's requirements are best judged by the 
 type of mind which he is going to be asked to encounter. 
 Salesmen who will be required to sell to grocers or res- 
 taurants need not be of the same grade of intelligenee as 
 if they were to sell to druggists or hardware dealers ; while 
 selling to jewelers or to department stores is a wholly dif- 
 ferent proposition.
 
 THE SELECTION OF SALESMEN 137 
 
 The measure of the type of mind he is going to en- 
 counter is most easily judged by the average amount per 
 sale. A proposition which has an average amount per 
 sale of $10 or even up to $100 in staples need to be but 
 a common level of mind and mentality; but a proposition 
 going higher than that demands a special amount of busi- 
 ness judgment in proportion. 
 
 It was once possible to differentiate in requirements be- 
 tween salesmen who sold staples and those who sold spe- 
 cialties, specialty salesmen naturally requiring the most 
 aggressiveness and staying power. But to-day nearly all 
 staples have been made over into specialties through the 
 package and the trademark, and the principles of sales- 
 manship and sales development formerly confined to spe- 
 cialties are now vigorously (and resultfully) applied by 
 staple sellers. Mere "order takers" are taboo in all fields, 
 and a general grading upward of salesmen for all classes 
 of merchandise has been occurring. 
 
 Generally speaking, no salesman must be of a kind or 
 character likely to appear too superior to the prospect; 
 especially not in social level. Nor must he have any man- 
 nerisms calculated to apppear out of keeping with the 
 surroundings he will meet. A monocled Englishman of 
 polished manners and a broad A pronunciation selling to 
 East Side New York delicatessen stores would be the height 
 of absurdity, to mention an extreme. Yet such extremes 
 are commonly met with.
 
 CHAPTER XIII 
 
 METHODS OF PAYING SALESMEN 
 
 102. Difficulties and Problems in Salesmen's Compensa* 
 tion. — Salesmen, like soldiers, are kept going at their diffi- 
 cult tasks by incentive. Money and honor are the principal 
 incentives for salesmen ; and of the two money is, of course, 
 the principal stimulus. But owing to the peculiar condi- 
 tions under which salesmen work, the method of payment 
 of money is quite as important as the money itself. Pay- 
 ment of more money than calls out the best incentive is 
 quite as hurtful to sales effort as paying too little; there 
 is actually such a thing as paying salesmen too much. Cer- 
 tainly there is a widespread practice of paying salesmen 
 unintelligently. The items of salesmen's salaries, commis- 
 sions, bonuses and expenses bulks very large — many think 
 too large — in the costs of operating an average business. 
 Nevertheless, there are many firms who, when their sales 
 problems are analyzed correctly, need nothing so much as 
 a more liberal expenditure of money upon salesmen. Far 
 from needing to hire cheaper salesmen, they need to hire 
 better and higher-salaried salesmen; their sales cost per 
 unit of merchandise would then be lessened instead of in- 
 creased. 
 
 Other firms, on the other hand, are paying too good 
 salaries for too mediocre work; are purchasing 500 sales 
 voltage when the job requires only 150 voltage. Standards 
 of payment have perhaps been set years before when sell- 
 ing was extremely difficult, and have never been altered to 
 fit new conditions. 
 
 138
 
 METHODS OP PAYING SALESMEN 139 
 
 Again, the question of the form of payment raises many 
 problems. Salesmen on salary alone tend to be too easily 
 satisfied : salesmen on commission alone tend to render lit- 
 tle constructive sales service. Constant argument with 
 salesmen over compensation greatly lowers sales efficiency. 
 How can these difficulties and problems best be met? 
 
 103. Relation of Compensation to Type of Man Required 
 and His Living Standards. — There is no purely mechanical 
 or statistical method of determining how much to pay sales- 
 men. The only practical method of arriving at a result 
 concerning amount of compensation is to settle upon the 
 type of salesman needed for the job — ^the mentality, expe- 
 rience, sales effectiveness, personality and general character 
 which fits the work best — and then pay whatever is neces- 
 sary to secure and hold such men. It is a short-sighted 
 and absurd economy to endeavor to get first-rate men at 
 second-rate compensation. It is frequently done, of course, 
 but it is not a permanent economy; the saving is usually 
 lost with interest by the increased "turnover" of men. 
 Since it has been figured that it costs inevitably from $350 
 to $1,200 to hire and fire or hire and lose a salesman, 
 it will readily be seen that paying a sum to salesmen below 
 the standard which salesmen of that level of ability gen- 
 erally require to live up to their average normal standards 
 and a little more, merely prepares the way soon to lose 
 the above named cost of replacing a salesman. Many a 
 stubborn, narrow-gauge salesmanager lets a good man go 
 and then hires a salesman of less ability at a higher com- 
 pensation than would have made the old one content and 
 zestful. In addition he loses the replacement cost. 
 
 Salesmen live to a large extent on the exterior, so to 
 speak. In other words, food, clothing, comfort and ap- 
 pearances in life are especially close to their hearts and 
 spirits. Therefore, unless their compensation enables them 
 to be in the atmosphere they like, living somewhere near
 
 140 MODERN SALESMANAGEMENT 
 
 the minimum standards they set for themselves, they are 
 not at their best in their work. It is a very poor policy 
 to hire a salesman at the lowest compensation he can be 
 induced to take (attempting to make up for the deficiency 
 by promises of future gain). As a rule, he makes another 
 connection as soon as he becomes fully aware of the market 
 value of his grade of ability. 
 
 There are no national standards or grades; differences 
 in habit, custom and costs of living in various parts of 
 the country and in various sizes of cities and towns, make 
 the matter an individual one. It would be no reliable or 
 safe guide, however, to take some especially thrifty sales- 
 man as a basis of comparison ; for salesmen as a class are 
 not markedly thrifty, and live up to their incomes. It is 
 an excellent idea for a firm to make a survey of the type 
 of men it needs for salesmen and ascertain the cost of 
 living comfortably of that type of man in the community 
 he moves, remembering the peculiar standards of life of 
 salesmen in general. Such an investigation, if heeded, 
 would go far toward reducing the large "turnover" of 
 salesmen. The principles which have been applied in re- 
 ducing the turnover among factory workmen, apply equally fe 
 well to salesmen; it is distinctly up to the employer to * 
 study the living standards of his men and provide stand- 
 ards of compensation and treatment which will keep them 
 at their best effectiveness. There is a subtle psychology in 
 consciousness of receiving ample, fair pay for good work 
 which applies with double force to salesmen, because of 
 the dependence of their effectiveness upon the spirit they 
 display day by day. Salesmen meet each other and com- 
 pare notes in hotels and trains, and latterly in clubs and 
 associations, and whether they are over-aggressive or silent 
 with regard to asking for more compensation, they feel 
 deeply on the subject. St. Elmo Lewis has well said that 
 DO man will Dut forth his best effort for an ordinary wage.
 
 METHODS OF PAYING SALESMEN 141 
 
 It is said of a certain well-known national concern that 
 it is easy to hire its salesmen away. The reason is simply 
 compensation too small for the character of men hired. It 
 must also be said, however, that well-known firms which 
 have a reputation for training their salesmen well are un- 
 fortunately subject to the efforts of other firms to hire their 
 men after they have been trained. 
 
 104. Salary or Commission, or Eoth? — This question goes 
 to the heax't of the practical technique of paying salesmen. 
 Properly considered, a salesman is not a man who is out 
 chiefly to prolit through commissions only — he is an am- 
 bassador of the house. As such, he needs to do many 
 things which are not to his individual, immediate interest 
 from the standpoint of commissions. He glorifies volume 
 of sales above net profits, whereas he should do the reverse. 
 He must take the same point of view as the house does — 
 that it will be in business five, ten and twenty years from 
 now and should do development work which will ripen 
 years later. New accounts need to be "nursed," out of 
 the way prospects called on and small customers well 
 treated. 
 
 But the purely commission salesmen, being practically 
 in business for himself, knows that he will probably not 
 be with the house for a very long period of years (at least 
 not in that territory), and he very naturally skimps the 
 job and skims the cream. His work is reduced from the 
 standard of broad merchandising called for by modern sell- 
 ing, to a mere booking of commodity orders. For this rea- 
 son mainly (as well as for the undesirable lack of complete 
 control and temperamental habits developed by straight 
 commission men) the commission only plan is, for most 
 sales propositions, out-of-date and discredited. 
 
 The straight salary plan, while not so decidedly unwise, 
 is also wrong in principle. Although it docs to some de- 
 gree make ambassadors and business developers out of sales-
 
 142 MODERN SALESMANAGEMENT 
 
 men, the tendency is too extreme in this direction, just as 
 the straight commission plan is too extreme in the other 
 direction. Straight salary men are too sure of their in- 
 come; too much tempted to report progress and develop- 
 ment rather than fight through to a larger record of actual 
 sales. 
 
 "We have, therefore, in the salary and the commission 
 plans of payment, two impractical extremes, each with its 
 fatal defect, and each, nevertheless, with its desirable ele- 
 ment, both of which are important to preserve. An obviou& 
 improvement is a merging of the two methods — a salary- 
 and-commission plan. Tests have shown that neither by 
 increasing commissions alone or increasing salary alone can 
 salesmen be stimulated to greater achievement as definitely 
 as when a combination of a minimum salary plus a com- 
 mission is used. The difference lies in the stimulus of the 
 plan of payment. A commission-only man often produces 
 less sales than before, when his commission rate is raised. 
 The same is true of salaried salesmen. The principle at 
 work here is identically that which has induced very well 
 paid miners and ship laborers during war time to lay off 
 part of the week because the higher wages paid met their 
 money desires after working 4 or 5 days instead of 6. 
 
 105. Some Defects of the Salary-and-Commission Plan. — 
 How complicated the whole subject of salesmen's compen- 
 sation is becomes apparent when we learn that even the 
 common form of salary-and-commission plan has vital de- 
 fects which must be remedied in most instances before 
 something like top-notch efficiency is reached. This com- 
 mon form — payment of a fixed small salary, and a rate of 
 commission on all business secured (or on all business 
 above a fixed minimum) — has the vital defect that the em- 
 phasis is still too definitely upon volume. While the salary 
 does insure a certain amount of development work, in 
 actual practice the commission is still the most glittering
 
 METHODS OF PAYING SALESMEN 143 
 
 goal, and any contest or stimulation simply serves to more 
 or less completely sidetrack tlie development work for a 
 spectacular record of volume. 
 
 Into this situation live concerns have injected more scien- 
 tific plans of compensation, plans which are fitted like a 
 glove to the individual business, and which are not hit- 
 and-miss common method. They have rejected the entire 
 idea of payment for volume or even for general develop- 
 ment; they have adopted the principle of endeavoring to 
 make their salesmen co-partners and co-merchandisers with 
 themselves, profiting as they profit. This again is in line 
 with the profit-sharing development of the labor problem 
 in the factory ; difi^erent only because a salesman 's part in 
 profit-making can be much more exactly calculated. 
 
 The salary-and-commission plan must be added to, so 
 that commission is paid, not for volume, but for develop- 
 ment work and greatest net profits. Most businesses, even 
 if they have but one article at one price to sell — have 
 certain preferred, more economical methods of selling which 
 they would like all their salesmen to use more liberally 
 which increase the net. Upon these a plan of compensa- 
 tion may be based, rather than on sheer dollar volume 
 (which by its veiy narrow nature tends to keep the sales- 
 man's vision narrow). 
 
 106. Kow to Shape a Thorough-Going Plan of Compensa* 
 tion. — The foundation on which to lay a just compensation 
 for salesmen is the territory. How many dollars' worth 
 of sales is it logically ' ' good for, ' ' after a careful survey ? 
 And how much can or should an average standard quality 
 salesman sell in it per year ? How well developed and how 
 expensive to travel is the territory' ? Such questions ex- 
 plain why one salesman is rated good who sells $40,000 
 worth of goods annually, whereas another salesman selling 
 another line of goods sells $200,000, and is not regarded as 
 phenomenal. Both earn approximately the same salary —
 
 144 MODERN SALESMANAGEMENT 
 
 the difference lies in the absorptive, capacity of the terri- 
 tory for that line of goods. It is a mistake to think the 
 difference is in the man or in the line of goods. A sales- 
 manager should first think in terms of the consumption 
 capacity of the territory, or else he will not do justice 
 either to a salesman or his goods. 
 
 Once the capacity and rate of growth of the territory 
 is known, you have a gauge on which to register sales- 
 men's efforts. Also you have the data for a just and ac- 
 curate quota, on which to base not only the salary but a 
 bonus. It is generally agreed that a salesman who secures 
 80% of the quota of sales allotted to his territory has 
 earned his basic salary; and that whatever he achieves 
 above that should be rewarded by a bonus. 
 
 The practical procedure for fixing compensation might 
 thus be: 
 
 Step 1. "Survey" your entire territory to establish the 
 logical volume of business now existing or that you can 
 expect to develop each year for the next 5 or 10 years. 
 
 Step 2. Analyze the cost of properly covering the ter- 
 ritory, keeping in mind the general aims and policies of 
 the firm and the missionary and educational work it needs. 
 
 Step 3. Size up the mentality and difficulty of the pros- 
 pects and the territory, the cost of traveling, and figure 
 out the type and kind of salesmen you should have to 
 represent you successfully in a constructive way. "What 
 this type of salesman needs as his minimum to live upon, 
 that should be the fixed salary. Whether he earns it is 
 to be judged by whether he reaches 80% of the quota set. 
 
 Step 4. A commission rate to be added to the fixed 
 salary, payable quarterly or semi-annually, based on the 
 gross profits of the business done in his territory. As a 
 suggestion, let us say 15% of the profit on his volume of 
 sales; "profit" meaning margin above operating cost. 
 ^.The more common method, of course, is to give a com-
 
 METHODS OP PAYING SALESMEN 145 
 
 mission of say 5% on volume of business above the amount 
 required to earn salary. It is a sounder method to base 
 commission on profits. 
 
 Step 5. Establish, as a third element of compensation, 
 a bonus to be paid when sales goals and quotas are at- 
 tained. (See entire following- chapter on this subject 
 for details.) 
 
 A procedure of this sort has the satisfactory merit of 
 being thorough and just and grounded on sound principle 
 and on fact. It supplies all the ideal elements of a com- 
 pensation plan — (1) it is fairly automatic, (2) it insures 
 both stimulation for volume and profit and for constructive 
 effort, (3) it makes for the right spirit of co-partnership 
 in representation of the house, (4) it is thoroughly just 
 and wise. 
 
 107. Importance of Equality and XTniformity. — Nothing 
 can so quickly destroy morale in a sales organization as a 
 belief that some members of a sales organization are fav- 
 ored either in salary or in special privileges, rates of com- 
 mission or ''cinch" of any kind. Salesmen know quite well 
 that the aggressive man or the "good bluffer" frequently 
 gets special favors and forces higher pay. A single, clear- 
 eut policy, both for salaries and commissions, and for ap- 
 peals for ' ' raises ' ' should be followed rigidly. No salesman- 
 ager can afford to allow himself to be "held up" by ag- 
 gressive men who want more salary or commission than 
 they deserve. Nor can any salesmanager afford to fail 
 to reach a man before the man comes to him, when that 
 man deserves a raise. 
 
 It should also be a punctilious duty to see that sales- 
 men are paid with great exactitude and promptness, and 
 all they deserve. Often fatal errors of this sort are made 
 — in permitting salesmen to work under certain misun- 
 derstandings of increase or terms, and then dispute or 
 argue the point later on a technicality. It is of great im-
 
 146 ]\IODERN SALESMANAGEMENT 
 
 portance that all compensation arrangements be made un- 
 mistakably clear in a memorandum if not a contract. A 
 dispute over compensation takes the life out of a salesman ; 
 and being volatile and more or less temperamental, he is 
 more likely than not to fail to understand a memorandum 
 or contract too full of ifs and buts or long phrases. 
 
 One of the commonest forms of inequality and injustice 
 is to "welch" or a promise of pay when the success is be- 
 yond expectation. Some salesmanagers and owners hate 
 to see salesmen make a lot of money, quite failing to ap- 
 preciate that the salesmen can't make money unless the 
 house gets its allotted share, and that "a piece of luck" 
 or a streak of success may be the stimulation to tide sales- 
 men over a correspondingly dull period. 
 
 Giving a salesman a "piece of pie" in the shape of credit 
 for sales he did not personally make also irritates some 
 narrow minded executives. It must be appreciated that 
 willingness to hew rigidly to the line of an agreement or 
 promise, no matter on whose side the chips fall, is an abso- 
 lutely essential idea to fix in salesmen's minds if their 
 spirits are to be kept up. 
 
 108. Plan for Automatic Salary Raises. — Knowing how 
 detrimental to esprit de corps are arguments over increase 
 in salary, several very interesting plans for such raises to 
 operate automatically have been planned and are working 
 with success. With such an arrangement a salesmen's 
 basic salary (and quota for earning it under the plan 
 described above) readjusts itself without a word of con- 
 sultation each January 1st. 
 
 The plan provides that in return for a certain salary 
 first agreed upon with a new salesman, his sales shall 
 amount to ten times the amount of salary received, and 
 that a fixed commission will be paid on all net sales over 
 and above this minimum amount ; that the salary and the 
 commission earnings of the salesman for the first year will
 
 METHODS OF PAYING SALESMEN 147 
 
 be considered his salary for the second year. Thus his 
 maximum sales for tlie first j^ear become the minimum 
 amount of sales for second year, over and above which 
 minimum amount he receives the same fixed commission. 
 I This automatically insures the salesman being compen- 
 sated for any extra effort he may put forth which has 
 increased his sales, the commission being fixed at from 25^ 
 to 50% of the percentage of cost of the salesman's salarj' 
 to sales, having in mind that the per cent of commission 
 adopted is sufficient to insure a reasonable increase in his 
 salary, and the more commission a salesman earns, the 
 more it cuts down his selling expense. 
 
 109. Crediting Itlail Sales and TlncoUectable Accounts, — 
 Controversies are continually arising over mail orders and 
 their proper crediting. There are many firms which feel 
 that their good will and their general activities should en- 
 title the house to be regarded as being a salesman, and 
 have at least some part of mail orders and personal sales 
 by executives credited thereto. This idea has its logic, but 
 from a purely human standpoint it is dangerous — such 
 sales are sometimes in competition with salesmen's efforts 
 and the mere knowledge that the house takes credit to 
 itself is an irritant to salesmen, certain in one case or an- 
 other sometime to be discouraging. Customers are natur- 
 ally not often thoughtful enough to request that the sale 
 be credited to a specific salesman. The only solution is 
 to make an individual judgment based on an individual 
 case; the rule to follow being to show full and adequate 
 cause why mail orders should not be credited to salesman, 
 rather than starting with the reverse assumption. Some 
 concerns find it an excellent plan to require salesmen to 
 divide commissions on business closed with the assistance of 
 the manager. 
 
 As for uneollectable accounts, salesmen in the average 
 business house should be penalized for bad accounts, either
 
 us MODERN SALESMANAGEMENT 
 
 by forfeiting that portion of the profit on an imcollectable 
 account, which would have been theirs had the account been 
 a good one — or by a percentage penalty based on the size 
 of the loss. In theory, credit considerations are strictly 
 up to a firm, which should instruct salesmen carefully as 
 to credit requirements, and accept or reject on its own re- 
 sponsibility such business as the salesman turns in. This 
 quite correct theory removes blame from the salesman, 
 whereas from a practical standpoint the salesman having 
 personal contact with the customer, must be regarded as 
 a credit judge also. The positive plan of offering bonuses 
 for salesmen having the least credit losses is better than 
 mere negative penalities, however. 
 
 110. "Drawing Accounts." — This is one of the anomalies 
 of selling. A drawing account is, in fact, a salary with or 
 without a quota provision, and is preferably called so, 
 as there are psychological factors in the phrase "drawing 
 account" which are seductive and wrong. It is a fact well 
 kno\vn that large numbers of dishonest men engage them- 
 selves simultaneously to a number of firms to sell goods 
 on drawing account, and employ themselves not in sell- 
 ing goods, but in keeping up the bluff as long as possible — 
 drawing pay from a number of sources at once. 
 
 Money paid to salesmen should not be in any form but 
 salary, commission or bonus — otherwise it has a wrong 
 mental effect. It is exacttly like borrowing* money to 
 get an advance on commissions in the form of a drawing 
 account. Large sums of such money are charged off con- 
 stantly when men fail to reach their drawing debts with 
 their commissions and are discharged, to all appearances in 
 debt. This, to a good man who may have rendered full 
 value for the money in development work, is galling and 
 humiliating. The supposed stimulus toward measuring up 
 to the drawing account does not work. 
 
 It is a far better plan to make the arrangement both
 
 METHODS OF PAYING SALESMEN 149 
 
 more definite and more self-respecting by naming a salary- 
 based on a specific quota, no commission to be paid until 
 the quota is earned, and a definite time fixed in which to 
 make good. 
 
 Of course, with certain lines of business using very high 
 class of salesmen, the drawing account method has a few 
 advantages, such as keeping the arrangement centered on 
 a commission basis. But even in such cases there can 
 be a principle laid down of basic selling cost percentage 
 which operates virtually like a commission, but utilizes 
 the basic salary idea nevertheless. 
 
 111. Handling Compensation of Juniors. — The same prin- 
 ciples apply to juniors as to seniors — they should receive 
 salary, commission and bonus. The method used by one 
 firm is to allow juniors to such salesmen only who have 
 brought down their selling expense to a 15% basis by 
 reason of its volume. This automatically weeds out re- 
 quests for juniors where they are not supportable. 
 
 A fifty-fifty division of commissions is the best method 
 of dividing earnings between junior and senior. 
 
 112. The "Piece Work," or "Task and Bonus" Idea in 
 Selling. — The application of the principle of scientific man- 
 agement to a sales organization is undergoing a test in 
 several large organizations, but the method is so new and 
 radical that its efficiency is not yet thoroughly authenti- 
 cated. The idea is to subdivide the work of selling into 
 minute separate items (corresponding with motions in 
 shop work), such as a call on a customer without 
 finding him in, a demonstration of the article, etc. Each 
 of these separate items of work have standard prices or 
 salary rates attached, so that a salesman's daily work 
 becomes an itemized account of separate pieces of work 
 done for which he is credited specific sums. His salary 
 is thus simply an accumulation of the piece work items. 
 
 For instance, in one organization, 10 cents each is paid
 
 150 ]\IODERN SALESMANAGEMENT 
 
 for canvass calls, 5 cents each for repeat calls and 25 cents 
 each for demonstrations. On this plan a man can earn his 
 minimum salary or drawing account without making a 
 single sale. In cases where this plan has been applied it 
 has resulted in almost doubling the number of calls and 
 demonstrations. A higher rate is paid, under this sys- 
 tem, for new calls, and for prospects on whom no calls 
 have been made for 90 days. The system also involves 
 the checking up of the salesmen's reports at irregular 
 intervals, not only to test his honesty, but to locate weak- 
 nesses in his work. Salesmen make a complete report 
 every day. 
 
 The bonus part of this plan is based on the amount of 
 profit the company makes on the sale. When a salesman's 
 earnings from "tasks" bear a higher relation to his bonus 
 earnings than the average, then an inspector is placed on 
 the job to study the man's work. 
 
 Salesmen make more money under this plan than under 
 old systems and when properly operated are well satis- 
 fied with it. 
 
 This plan is sound in principle for organizations re- 
 quiring an average or below-average type of sales work 
 of a more or less routine nature, but its value for the 
 higher grades of sales work is as yet not proved.
 
 CHAPTER Xiy 
 
 PEIZE, BONUS AND STIMULATION PLANS FOR SALESMEN 
 
 113. The Basic Need for Stimulation — The very qualities 
 which make good salesmen are qualities demanding special 
 stimulation and constant encouragement. 
 
 A salesman is more in need of full-powered incentives 
 to work than perhaps any other type of worker, because 
 unlike most other workers, he does his work away from 
 both his superiors and his companions. Most other rou- 
 tine labor is done in groups, where the group stimulation 
 is constantly present to hold a man to his work, in order 
 to keep the respect of his fellow laborers. In addition, 
 the mere presence and proximity of his superiors is a 
 stimulation. 
 
 The salesman, unfortunately, is a lone worker, and to 
 m-ake matters more difficult still he faces these conditions: 
 
 1. He is away from familiar surroundings. 
 
 2. He is not doing mechanical labor which responds 
 automatically to his efforts according to fixed laws. 
 
 3. He is in a semi-hostile atmosphere, dependent on 
 the personal feelings and idiosyncrasies of a motley lot 
 of customers and prospects. 
 
 4. He is obliged to throw a great deal of high tension 
 nervous and mental energy into his work, bringing a 
 natural reaction, relaxation and tire which affects his 
 spirits adversely for a time. 
 
 5. He is at such long range from his employer that it 
 is easy for him to imagine indifference, hostility, neglect 
 and stupidity in the home office attitude. 
 
 151
 
 152 MODERN SALES^IANAGEMENT 
 
 6. He is subjected to the depressing physical strains 
 and buffets of travel. 
 
 For these and other reasons the salesman has a very- 
 decided need for stimulations. Dr, Elliott, ex-president of 
 Harvard University, once said that all men required the 
 basic stimulations of Love, Loyalty, Ambition and Hope, 
 to do their best. The salesman apparently needs about 
 twice as much stimulation of these sorts to "keep him 
 on his toes." It is only an utterly ignorant salesmanager 
 who gives little or no care to the incentives which control 
 his salesmen. 
 
 114. Differences Between Staple and Specialty Salesmen. — 
 At one time it was widely believed that salesmen of staples, 
 such as coffee, sugar, flour, etc., needed no special stimu- 
 lation plans; that only specialty salesmen (for adding ma- 
 chines, dictaphones, etc.) needed contest, bonus, and other 
 forms of stimulations. 
 
 But with clearer understanding of selling and wider 
 application of salesmauagement brains, it has become clear 
 that the distinction between staple and specialty is not so 
 great after all. Furthermore, the tendency in the plan- 
 ning of merchandise has been to make more of a specialty 
 out of staples, while of course good specialties tend con- 
 stantly to become staples. Coffee and sugar are to-day 
 trade-marked and sold like specialties; while adding ma- 
 chines, typewriters, etc., have become more like staple 
 necessities. 
 
 There is no reason why identically the same principles 
 ■of stimulations should not apply to salesmen for specialty 
 or staple. The need is only for expert skill in adjusting 
 the plan to the individual situation. It is more impor- 
 tant in adopting stimulation plans to study the type of 
 salesmen and customers, the territory and the manner of 
 selling than it is to study the type of product. 
 
 115. The Various Forms of Stimidation to Choose From. —
 
 PRIZE, BONUS AND STIMULATION PLANS 153 
 
 Stimulations are, of course, many and varied in form and 
 method of application. It is frequently advisable to ro- 
 tate in their use, or to use a number of kinds at once. 
 No rule of thumb can be laid down, any more than can 
 medicine be prescribed for all types of patients. 
 
 Broadly speaking, the following list of stimulation meth- 
 ods available cover the field weU. 
 
 1. 
 
 Quota systems. 
 
 8. 
 
 Game plays. 
 
 2. 
 
 Point systems. 
 
 9. 
 
 Promotions. 
 
 3. 
 
 Honor clubs. 
 
 10. 
 
 Bonuses. 
 
 4. 
 
 House bulletins. 
 
 11. 
 
 Special honors or trips* 
 
 5. 
 
 Letters from high ex- 
 
 12. 
 
 Profit sharing or stock 
 
 
 ecutives. 
 
 
 participations. 
 
 6. 
 
 Special prizes. 
 
 
 
 Conventions and sales conferences are, of course, stimu- 
 lations of the highest order, but are a separate subject, 
 treated in the chapter following. 
 
 Just how to choose from among the stimulations avail- 
 able, constitutes the technique of the profession of sales- 
 management. Diagnosis of the individual case, and pre- 
 scription for its individual needs can be the only logical 
 method to use. Any other method is a self-doctoring 
 quackery, done at great risk. Knowledge of the value and 
 limitation of each method and of its fitness or unfitness for 
 this or that condition is necessary before it is wise to make 
 a decision. 
 
 The facts required to reach such a decision about a busi- 
 ness are: 
 
 1. Type of salesman used. 
 
 2. Character of prospects canvassed. 
 
 3. Type of product. 
 
 4. Variety, scope and relationship to profit of items 
 sold.
 
 154 ]\10DERN SALESMANAGEMENT 
 
 5. Size and character of territory. 
 
 6. Method of paying salesmen. 
 
 116. Some Typical Bonus and Contest Plans.. — There are 
 almost as many forms of bonus as brands of tobacco. 
 IMost of these are adopted as experiments and there is much 
 change constantly in method and plan. The plans de- 
 scribed herewith are simply plans which are ingenious or 
 novel. They all suffer from lack of exactitude in their 
 application and effect, but are good workable plans as far 
 as they go. 
 
 1. Giving 1% of the annual increase over a fixed 
 amount to branch managers, limiting it to 10% of total 
 salary received in any one year. 
 
 2. Operating a club such as "100%," " Top-Notchers, " 
 etc.; open to salesmen doing 110% of their quota during 
 any 4 months of the year. If he repeats, a bar is added 
 to his badge. 
 
 3. Staging a special sales drive with an attractive name 
 such as "The Get a Million Drive." 
 
 4. Holding a convention open only to those who have 
 made 100% of their quota; and another separate conven- 
 tion of those who have made 80%. 
 
 5. Holding a sheer volume competition, separating 
 salesmen into groups according to volume sold, and offer- 
 ing merchandise prizes for 4 or 5 winners in each group. 
 
 6. Offering a bonus of say 21^ upon total amount of 
 sales made in excess of previous record. 
 
 7. Taking year's profts as basis, marking it 100%, and 
 giving a bonus to those having the highest percentage of 
 increase over 100%. 
 
 8. Pitting different divisions or groups, or even indi- 
 vidual cities against each other, based on a quota set for 
 each. 
 
 9. Basing bonus entirely on profit; giving no bonus to
 
 PRIZE, BONUS AND STIMULATION PLANS 155 
 
 salesmen not increasing profits, but setting quotas of profit 
 for each salesman to reach. 
 
 10. Special short-term contest — to make August a red 
 letter month, for example ; giving a suit of clothes to every 
 salesman averaging a fixed number of units or dollars 
 sold in that month. 
 
 11. Allowing an extra 1 or 2% on all sales during cer- 
 tain months. 
 
 12. Offering a merchandise or money prize, to be pre- 
 sented, not to the salesman, but to his wife. 
 
 117. Honor Alone as Stimulation and Incentive. — It is 
 human nature to desire distinction. Salesmen are particu- 
 larly inclined in this direction because of their social tem- 
 perament. 
 
 Honor marks vary all the way from the simple mention 
 of the salesman's name on a blackboard or in bulletins or 
 house organs, to the award of badge or membership in 
 a special "Club" like the N3dic Club of the New York 
 Life Insurance Company. (This organization is composed 
 of salesmen who make a high score, and are shown special 
 favors and honors by the officers of the Company). 
 
 Ranking lists in house organs, bulletins, blackboards; 
 use of photographs, special selection for trips, even public 
 honoring with a seat next to the head of the house — all 
 come under this head and are of great importance. Honor 
 prizes are sometimes the only prizes advisable to use, with 
 very low or very high types of salesmen. 
 
 In some cases, where the type of salesman is not of the 
 highest grade, very primitive methods are successful. A 
 typewriter firm adopted the plan of sending each salesman 
 a green ticket for every $100 unit of sale. If a day 
 passes without a sale coming from the salesman he is 
 sent a blue ticket. If three blue tickets are sent in suc- 
 cession then a yellow ticket is sent, but if the salesman 
 exceeds his quota for the month, he can send a sale and
 
 156 MODERN SALESMANAGEMENT 
 
 three yellow tickets in exchange for two green ones. This 
 is identical Avith an old-time plan used in Sunday schools to 
 stimulate attendance. 
 
 Needless to say, honor as reward is a delicate thing to 
 handle with salesmen of a higher grade, as they are more 
 sophisticated and balanced, and therefore less moved by 
 ceremony and praise. Being better business men, their 
 incentive is more toward promotion and money reward. 
 
 118. Merchandise as Reward. — Merchandise is found to 
 be highly prized, if prizes are to be given, because mer- 
 chandise is usually valued at more than its real money 
 cost. A handsome traveling bag filled with compart- 
 ments and special fittings and traveling comforts, looks 
 better than the three $5 bills or two $10 bills it costs. It 
 looks better to the salesman, because he can carry it proudly 
 and when someone asks him where he got it, he can throw 
 out his chest and tell about it. 
 
 The very highest type of salesman naturally appreciates 
 best, cash prizes, and is much less amenable to mere honor 
 reward unless the financial side of reward is thoroughly 
 satisfactory to him. This makes the subject closely re- 
 lated to that of method of paying a salesman. 
 
 Generally speaking, all salesmen prefer a cash prize. 
 But from the point of view of the house a prize in mer- 
 chandise is often preferable. The value looks bigger, the 
 impression lasts longer, for the article, if properly selected, 
 will act as a constant reminder. 
 
 The following facts should be given consideration in the 
 selection and presentation of any merchandise prize: 
 
 1. Give something that the salesman can use constantly 
 — thus reminding him of your appreciation. 
 
 2. Give something that he can show to other people, 
 acquainting them with the fact that it is an honor mark 
 for length of service or leadership in sales and something
 
 PRIZE, BONUS AND STIMULATION PLANS 157 
 
 whicli he can be proud of, all of which will have a tendency 
 to increase his enthusiasm, 
 
 3. Give something useful. Base the selection of your 
 gift on a knowledge of his tastes and needs. If he is 
 married and enjoys his home life, a gift that his family 
 can enjoy will serve to increase his own appreciation. 
 
 4. The gift should be presented with words of com- 
 mendation indicating that it is a pleasure to bestow the 
 prize. 
 
 5. The award should be made known as widely as pos- 
 sible within the organization, so as to encourage others. 
 
 Prizes of a simple kind, such as a specific article of 
 merchandise or sum of money or honor, are the crude 
 forms of scientific stimulation. A house may simply offer 
 a traveling bag to any salesman who sells a certain set 
 amount of goods over his last year's effort. Or it may 
 give an automobile to the salesman who sells the highest 
 percentage of increase over last year's effort. 
 
 But at once we get into the delicate and intricate nature 
 of the subject, because on the one hand such a crude prize 
 contest may discourage rather than encourage the rank 
 and file of salesmen of average ability or on the other hand 
 may be detrimental to the aims of the house because it 
 tempts salesmen to oversell or push for volume unwisely, 
 
 119. The Guota Plan. — A quota is the standard of sales 
 set for individuals, goods or territory, established after a 
 study of all the factors bearing on the case. The method 
 is simply a fixing of a goal for each salesman, with a re- 
 ward for reaching it. 
 
 Such a "standard of performance" gives the salesman 
 a definite goal to reach — an effective stimulant for greater 
 effort. 
 
 With seasonal or fashion goods, the time unit should 
 be the season. With articles of steady consumption, such 
 as food, stationery, etc., the period may extend over a
 
 158 MODERN SALESMANAGEMENT 
 
 year, or be subdivided monthly. "WTien the articles sold 
 are all of the same price, the quota may be simply in units. 
 Where tliere is a difference in price, which is the general 
 case, the quota is based on the money amount of the sales 
 possible in that territory. This permits a comparison of 
 sales performances in territories of unequal opportunities. 
 
 The "quota" unit of the National Cash Register Co. is 
 $25 which is called "one point." Their famous or- 
 ganization of salesmen, known as the "Hundred Point 
 Ciub, " is composed of salesmen who have achieved one 
 hundred points, or $2,500 worth of sales in a month. 
 
 To equalize the standards of performance for unequal 
 territories, or for goods which it is especially desired to 
 push, it is generally the practice to lower either the amount 
 of the sale, that constitutes a "point" for the less produc- 
 tive territory, or penalize by the point system the less de- 
 sirable goods. (See later chapter for detail about Point 
 System.) For example, let us assume a sales organiza- 
 tion with two territories: Territory A, the country East, 
 and Territory B, the country West of the Mississippi. 
 The latter contains only 20% of the total population; so 
 ttiat it can hardly be expected to furnish more than 20% 
 of the total sales. 
 
 Or, if in one territory there are, say 1,000 prospects 
 with an estimated average sale of $200 to each, and in 
 the second territory there are only 100 prospects with an 
 estimated average sale of $300 to each, the ratio of the 
 quotas may be established either on the basis of $200 to 
 $300 or on the basis of 1,000 to 100 prospects. 
 
 After a fair quota has been set for each salesman's ter- 
 ritory, based let us say on 80% of the immediate logical 
 prospects and their logical purchases, then you have auto- 
 matically a contest basis for any prize you may decide 
 upon. 
 
 To guard against the tendency of the salesman to over-
 
 PRIZE, BONUS AND STIMULATION PLANS 159 
 
 load customers in order to make a big showing, some 
 firms make it a practice to establish also a quota for each 
 class of customer, based upon the size of the stock or the 
 amount of credit which the firm is willing to allow that 
 class of retailer. The salesman is not expected to take an 
 order from the customer for more than the limit of that 
 class. 
 
 120. Sound Principles for Operating Contests. — Any and 
 all sales contests of whatever nature on whatever plan, for 
 whatever prize, should be guided bj the practical consid- 
 erations which rule any group of salesmen in contest. 
 Contests are often failures in one respect or another, or in 
 some degree or other, solely because simple principles such 
 as the following are violated : 
 
 1. A sales contest is of little value unless it stimulates 
 all salesmen, including "the tail-enders. " Set a goal that 
 every salesman feels he can reach. Since there is a wide 
 difference between the showing of some salesmen, matters 
 should be equalized by putting them in different classes, 
 as determined by the quota plan. For example, Class A 
 must compete for a minmum quota of 3,000 points ; Class 
 B for a minimum quota of 2,000 points; Class C for a 
 minimum quota of 1,200 points. 
 
 2. Hold or start the contest at a period of the year when 
 the conditions are not discouraging; otherwise lack of re^ 
 suits will militate against the plan. 
 
 3. Do not dull the edge of interest in contests by hold- 
 ing them too frequently. It has been found best to have 
 an interval of at least two months between contests. 
 
 4. A similar loss of interest is apt to occur when the 
 contests are strung out too long, or made too short for 
 thorough work. From one month to three months is gen- 
 erally conceded to be a practical period for intensified 
 selling. 
 
 5. Have everything thought out thoroughly beforehand,
 
 160 MODERN SALESMANAGEMENT 
 
 so tliat it will not be necessary to change conditions or 
 schedules, which has the same effect as putting a brake on 
 a running wheel. This information should be in the hands 
 of everybody concerned in ample time so that the sales- 
 men can study out their plans of procedure. 
 
 6. Launch the plan with all the enthusiasm possible; 
 for example, at the annual convention of the sales staff. 
 Put the same enthusiasm in the printed or typewritten 
 bulletins, which should be issued every week so as to main- 
 tain the interest. They should feature the progress made 
 by the leaders in the race, give inspiring reasons why they 
 lead and encouragement to the laggards. 
 
 7. Assist the laggards so they may become more effi- 
 cient or appeal to their personal pride to become more in- 
 dustrious. 
 
 8. Enlist the interest and cooperation of the executives. 
 If possible, offer a special "President's trophy" or a 
 "General Manager's trophy." This is an additional spur. 
 
 9. It has been found advantageous ofttimes to utilize 
 the team spirit by offering additional prizes for the total 
 showing made by each territory, or a given group of sales- 
 men who come in personal contact with each other. The 
 result will be that they will mutually stimulate each other 
 in order to win the "team prize" in addition to individual 
 prizes. 
 
 121. Peculiar Types of Contests. — Odd and special con- 
 tests have merit sometimes in single and special cases. 
 
 A good instance is that of a $20 ring, which was 
 offered by a certain salesmanager. He made known only 
 two conditions of the contest, which were volume and rate 
 of increase. The other three conditions were not to be re- 
 vealed until the prize was awarded. It was simply stated 
 that they had something to do with the more desirable 
 kinds of business, and the salesmen were left to infer as 
 ;best they might on what basis the ring would be awarded.
 
 PRIZE, BONUS AND STIMULATION PLANS 161 
 
 Observe, however, that in this particular company the 
 esprit de corps had been developed to such an extraor- 
 dinarily high pitch that as an incentive the value of the 
 ring was far inferior to the honor connected with it. 
 
 This idea is further illustrated by a third plan used by 
 this company. The seven sections of a certain district were 
 pitted against each other in securing a quota. 
 
 Still another plan was started among the salesmen them- 
 selves. This was to celebrate the salesmanager 's anniver< 
 sary by a special drive for orders. A keen spirit of rivalry 
 naturally developed in the course of this kind of a cele- 
 bration. 
 
 Still another plan is one to offer a special dinner to the 
 "Big Ten" salesmen who reached the highest number 
 of sales above their quota. 
 
 122. Bulletins, Letters, House Organs as Stimulators. — It 
 is of first importance to realize that salesmen must be 
 kept in live communication with the house while on the 
 road. It sometimes puzzles salesmanagers to understand 
 why the ordinary routine letter often actually depresses 
 a salesman. It seems cool and aloof. A careless phrase 
 may make a salesman "see red"; the same phrase which 
 when spoken would be entirely acceptable. 
 
 Letters are an important link in the chain of stimula- 
 tion. Personal letters from the salesmanager, not too obvi- 
 ously "doped" with "ginger" and "pep," but intelli- 
 gently optimistic, with a tone of confidence in the sales- 
 man, are vital. "When letters cannot be personal they may 
 take the form of printed or mimeographed bulletins. 
 Many clever forms of these are extant, from large 8-sheet 
 printed bulletins in colors, giving every sort of news, in- 
 cluding the standing of salesmen, and the photographs of 
 the "top-notchers. " These bulletins or house organs are 
 often sent to the homes of salesmen, with the distinct idea 
 of having the wife note her husband's standing.
 
 162 MODERN SALESMANAGEMENT 
 
 It is dangerous to attempt bulletins or house organs 
 with salesmen unless provision is made for its careful edit- 
 ing up to a high standard. Salesmen are blase and hyper- 
 critical, and unless the thing "hits them where they live" 
 and deftly touches the spot where they are amenable to 
 stimulation they will be adversely rather than favorably 
 affected. There is a growing distaste among salesmen for 
 the language of stimulation which used to be popular. 
 Bombast and so-called snappy, do-it-or-die language is out 
 of date. 
 
 One method which should never be overlooked is regu- 
 lar communication with the head of the house to his sales- 
 men. There is great stimulation, especially in a large 
 business, or one where the head of the house is an admired 
 personage, in a communication from "the man at the top" 
 — "the big boss." A good salesmanager will make effec- 
 tive use of this lever of stimulation, and "stage" the head 
 of the business in such a way as to insure top-notch stimu- 
 lation. A personally signed letter is a splendid idea,- 
 next to that, a printed communication signed in fac-simile. 
 
 123. Stock Participation and Profit-Sharing. — Although 
 more or less novel, the idea of profit sharing is naturally 
 extended to salesmen in such concerns which operate gen- 
 eral profit sharing systems for all employees. A profit 
 sharing plan which is universal with all employees, does 
 little to especially stimulate salesmen. 
 
 The same is true of stock participation (which as a 
 method applicable for all employees in a business is dis- 
 credited). Unless under unusual circumstances, stock par- 
 ticipation is an unwise method of stimulating salesmen. 
 They are not financiers, and often become dissatisfied — 
 sometimes at a time when the business needs their best 
 efforts. 
 
 Salesmen need more direct methods of stimulation than 
 a'^y general plan of profit sharing or stock participation.
 
 PRIZE, BONUS AND STIMULATION PLANS 163 
 
 124. Utilizing the Game Instinct. — There is no stronger 
 instinct in American men than the instinct to play a 
 game. Relating work to a game is a very interesting 
 method of stimulation — not possible to use always and 
 regularly, but to be kept in mind generally. 
 
 A great adding machine house utilized it successfully 
 and typically as follows : 
 
 A contest was arranged for April, May and June, end- 
 ing up with a "Post Season Championship Game" in De- 
 troit during the "all-star concentration" in July. 
 
 The following rules were given as to "How to Finish 
 on Top." 
 
 1. Telegrams will be accepted at the close of each game 
 but any credit not confirmed in ten days will be deducted 
 from the game following. 
 
 2. There are ten Company Leagues, each composed of 
 agencies with similar quotas. Each agency represents one 
 team, six leagues have ten each. Four leagues have twelve 
 each. 
 
 3. Nine games are scheduled for each team, each game 
 to be of ten days' duration. 
 
 4. The score will be based on per cent of quota secured 
 by each team in each game. 
 
 5. The team winning the greatest number of games 
 becomes champion of its league. 
 
 6. Managers of the ten league champion teams will 
 attend the All-Star Convention, at the Company's ex- 
 pense and has adapted baseball to their latest sales contest 
 and has thereby given each man a chance to demonstrate 
 his progress in the National game. 
 
 In order to play the game the selling organization was 
 divided up into leagues, the divisions being decided ac- 
 cording to the quotas of the various agencies. 
 
 Each agency of this adding machine company was as- 
 signed a quota at the beginning of the year. This quota
 
 164 MODERN SALESMANAGEMENT 
 
 means that the company expects that agency to sell a 
 certain number of points a month, each point representing 
 a definite amount of money. 
 
 In arranging the ten leagues into which the sales force 
 was divided, agencies having the same or nearly the same 
 quotas were pitted against each other. Nine teams plaj-^ed 
 against a picked team of All-Star Men for baseball cham- 
 pionship of Selling Force. 
 
 7. The manager whose team leads the other nine league- 
 champion teams in total per cent of quota secured for 
 three months, becomes captain and manager of the Man- 
 agers' team during its stay in Detroit. 
 
 8. The decision in any tie game will go to the team 
 having the larger per cent of quota for the previous 
 month. 
 
 9. In case of a tied score at the end of the contest, 
 per cent of quota for three months will determine the 
 winner. 
 
 10. Appeals or contention must be entered by the end 
 of the game following that with which the appeal is con- 
 cerned. 
 
 11. In case of a tie where rules 8 or 9 are applied and 
 the result still remains a tie, per cent of quota from Janu- 
 ary 1 will decide the winner. 
 
 It was arranged to publish a "dope sheet" under the 
 title "Burroughs Score Board" during the series. This 
 sheet was for the purpose of giving complete information 
 as to the relative standings of the teams and leagues and 
 to keep the ball rolling. This sheet on account of its 
 realistic talk and appearance, was the means of continually 
 keeping the enthusiasm at its highest pitch. The editors 
 instilled every bit of baseball terminology and "pep" pos- 
 sible. Cartoons and pictures of the various men were used 
 freely. "Old Man Quota" was played up prominently in 
 every cartoon.
 
 PRIZE, BONUS AND STIMULATION PLANS 365 
 
 Short squibs concerning the players were also used. 
 These instilled a personal feeling and interest into the con- 
 test. Baseball atmosphere was created at every turn of 
 the contest. 
 
 Snappy ginger talks were introduced and served as in- 
 spiration to every man. The following is part of such a 
 talk: 
 
 "Game seven is on! The magic, lucky number is here! 
 You who have had the luck stay with it! You who have 
 struck a snag at every turn, remember, that now is the 
 time for things to take a turn. Down through seasons 
 of countless ages this number has had all the luck that ever 
 counted. 
 
 "That lucky Seventh," is the cry! Are you ready 
 to grab your luck! Taken as a whole there has been 
 no game so far in which all the contests were so hard 
 fought and closely won as in game 6. Few and far be- 
 tween were the shut-out victories and just as rare were 
 lop-sided scores. At the middle of the game even the 
 shrewdest dopesters were at a loss to say who would win 
 any game — and none of the contests were "over" till the 
 ninth was finished. This is the kind of ball we like to see. 
 A manager's team picked from a bunch of fighters such 
 as those now leading in the tournament would make any 
 all-star organization go some. We can hardly wait to 
 know who is going to make up the managers' team. Come 
 through now and show us." 
 
 The results of this campaign are best indicated by the 
 statement of one of the officials of the Burroughs Com- 
 pany : 
 
 "The effect of this sales campaign upon the organiza- 
 tion was as though ' Skinny 's' team was to play the East 
 Siders on the Fair grounds on Saturday morning." 
 
 "It struck a responsive chord in every man and he re- 
 acted. They were boys again playing on the corner lot
 
 166 MODERN SALESIVIANAGEMENT 
 
 and all felt the lure of the diamond. Though purely 
 imaginary, every game was played with all the enthusiasm 
 of the days when they were slab artists. 
 
 "The 'score board' was eagerly watched for and tacked 
 np prominently in every office. Every man was inter- 
 ested and with such interest the results were inevitable, 
 the boy-heart had been appealed to — and not in vain."
 
 CHAPTER XV 
 
 THE SCIENTIFIC POINT SYSTEM FOR QUOTAS A2TD 
 
 CONTESTS 
 
 125. Reasons for Development of Point System. — The 
 Point System has been developed as a means of meeting 
 the many objections which formerly prevailed against the 
 use of the more ordinary forms of prize contests for sales- 
 men, or rating of territories for quotas. 
 
 Most businesses are too complex to admit of any simple 
 and blanket method of comparison; and most other meth- 
 ods of fixing the basis of contests have proved defective 
 because of incomplete adjustment to the conditions of a 
 business. 
 
 Some of the factors which upset calculations (before the 
 Point System was developed) were: 
 
 1. The difference in the merchandise and the profit con- 
 siderations concerning them. Nearly all firms which make 
 more than one article find that for one reason or another, 
 or at one season above another, the relative desirability of 
 sales is different. In other words, the National Lead Com- 
 pany, for instance, does not desire to induce "its salesmen 
 to spend a great deal of time selling lead to tinsmiths when 
 that time can be more profitably employed in pushing a 
 line which is not as staple as lead, but which is a specialty 
 which the market is not educated to buy automatically. 
 It desires to have salesmen sell its specialties before all 
 other things. 
 
 2. The differences in territories are so great that few 
 firms are in a position to pit any one territory against any 
 
 167
 
 168 ]\IODERN SALESMANAGEMENT 
 
 other except on the accurate basis afforded by a Point Sys- 
 tem. Some territories are in a raw state of undevelopment ; 
 while others are in a high state of development. 
 
 The amount and character of salesmanship required to 
 secure a thousand dollars' worth of business in unde- 
 veloped territory is greater than in a developed territory. 
 Other factors which make territories differ are the density 
 of population, the accessibility, etc. (full list described 
 ■further). 
 
 3. The amount of the order is also a factor which in 
 highly developed Point Systems is considered important. 
 
 A salesman who sells to concerns which buy in large 
 orders, takes a greater volume of business with less effort 
 than the salesman who sells a smaller type of concern 
 which takes smaller average orders. 
 
 4. The feeling is often justified on the part of salesmen 
 that the quotas are inexact, the comparisons unfair and the 
 calculations haphazard. 
 
 The above conditions and variations are the cause of the 
 development of the Point System, which permits mathe- 
 matically accurate measurements and comparisons for 
 many complicated factors. 
 
 126. Instructions for Operating Point System. — At first 
 glance the system seems complicated, but this is only be- 
 cause it takes care of so many individual factors. In 
 reality it is a very simple system and the complicated part 
 need never come to the foreground where it might confuse 
 the ordinary mind. 
 
 The first step is to hold a conference which might in- 
 clude (1) salesmanager, (2) one or two of the best sales- 
 men (preferably two selected by salesmen to represent 
 them), (3) one or two members of the firm — high execu- 
 tives or directors, (4) a capable statistician, (5) sales 
 counsellor or specialist. 
 
 The steps of procedure are:
 
 THE SCIENTIFIC POINT SYSTEM 169 
 
 1. Select from the factors outlined in the paragraphs 
 to follow, such as are agreed to have important bearing 
 on the nature of the territory for the article ; factors in 
 all three main divisions of the point system — territory fac- 
 tors, merchandise factors, special factors. 
 
 2. Proceed to rate these factors in terms of figures in 
 ratio to the other factors in that division, counting 100 
 as the total for the factors selected from each division. 
 To illustrate: if only 3 territory factors are selected, one 
 will be rated at 49, perhaps another at 25, and another 
 at 35 ; total 100. 
 
 3. Secure and analyze the territory data, after it has 
 been decided what data is desirable in order to correctly 
 rank each territory. Some of the territory factors can 
 only be properly gauged by combined judgment rather 
 than by hard and fast statistics. But this need not prevent 
 expression of such judgment in a judgment-ratio fig- 
 ure. In arriving at such a '* judgment ratio" the best 
 plan is to secure the judgment of each eligible member of 
 the conference in the form of a ratio figure, and then reach 
 the final figure by averaging. To illustrate : If the sales- 
 manager 's estimate of the ratio figure for a certain special 
 factor is 33, the statistician's 28 and some one else's 40, the 
 average of 30 will be an excellent ratio to use. 
 
 4. The result attained then will be figures of two 
 numerals each representing (1) the relative difficulty of 
 selling in each sales district, (2) the relative desirability 
 of sale of each separate product, separated in groups, and 
 (3) the relative reward value and desirability of certain 
 superiorities in individual salesmanship, such as largest 
 number of towns visited, etc. 
 
 5. If size of order represents any element desirable to 
 stimulate or presents a difficulty, because certain salesmen 
 travel the large order trade and other equally good sales- 
 men travel small order trade, then a scale of point varia-
 
 170 MODERN SALESMANAGEMENT 
 
 tions may be made up for various sizes of orders. In 
 many cases the Point System is not used for anything; 
 but to reckon sales; as, for instance, the National Cash 
 Register plan of counting each sale of $25 a point. For 
 firms selling one thing only this may be quite sufficient. 
 
 127. Applications of the Point System. — The Point Sys- 
 tem used on a wider scale requires much care at the start, 
 to make sure its basis is correct, but once it is figured it 
 becomes automatic and simple. The points become fixed 
 in the mind of the salesmen and the system works like a 
 machine. 
 
 Salesmen are able to compute their standing readily, and 
 have more confidence in a system which, it may readily 
 be seen, is capable of the fine adjustments to differences 
 and variating factors. 
 
 The Point System does for a sales organization what 
 the decimal system does to arithmetic — it makes elaborate 
 reckonings simple. It applies mathematical exactitude to 
 matters which would otherwise be arbitrarily and crudely 
 handled. 
 
 The Point System is by no means only for large and 
 complicated businesses. It is usable in very simple forms 
 — ^merely to represent a unit of sales (as National Cash 
 Register plan described above) or for a group of special 
 bonus offers for various tasks and goals, each with a vary- 
 ing importance and point- value. The smallest business as 
 well as the largest may use it with equal economy and 
 facility, because it is a principle of efficiency of reckoning, 
 and not a mere device. 
 
 128. Territory Factors Measurable by Means of Point Sys- 
 tem. — By no means do all firms require the securing of all 
 the information here listed ; but the more it is secured the 
 more accurate and just the basis for analyzing sales work. 
 
 A careful survey should be made and merged with all 
 data on the elements which affect the local situation.
 
 THE SCIENTIFIC TOINT SYHTEJVi 171 
 
 Among the factors (in addition to other data later de- 
 scribed) which are likely to be useful in establishing a 
 ratio figure for territorial differences, are the following: 
 
 1. Volume of goods sold by all manufacturers in th3 
 line. 
 
 2. Density of population. 
 
 3. Density of dealers (per square mile and per 1,000 
 of population). 
 
 4. Kailroad mileage, population per mile of railway, 
 miles of railway and trolley per square mile. 
 
 5. Inaccessible population. 
 
 6. Volume of prior sales. 
 
 7. Character of population. 
 
 9. Distribution of per capita valuation of realty, bank 
 deposits, business offices, etc. 
 
 10. Distribution of building activity or other vital fac- 
 tors affecting the business. 
 
 11. Special considerations. 
 
 It is no simple task to coordinate all these factors, but 
 the variety of factors used should make the final resulting 
 quota nearly free from arbitraiy elements. The aim is 
 to secure something like a reasanahle comparative figure, 
 the composite figure rating all the individual factors used, 
 for each unit of territory. 
 
 129. Merchandise Factors Measurable by Point Systems,. — 
 There are any number of considerations which may affect 
 the relative desirability of the sales of various products. 
 They should be rated according to relative desirability of 
 sale at very careful conference of all of the heads of the 
 business, including the directors, in order that the wisest 
 strategy of the business may determine this important 
 thing. Among the considerations which are valuable in 
 this connection, are: 
 
 1. A new product which is going exceptionally well 
 because of its novelty should not be ranked first, even
 
 172 MODERN SALESMANAGEMENT 
 
 tliougli it is very profitable. Experience shows that sales- 
 men give such new products an unconscious preference 
 anyhow. 
 
 2. Articles which are staple and routine must not al- 
 ways be placed at the lowest ratio because they are natur- 
 ally given a lesser amount of attention, and careful policy 
 may develop reasons why they should be pushed. 
 
 3. Trade conditions must also, as well as strategy'-, enter 
 into consideration, since there is ofttiraes extra resistance 
 on some products on the part of distribution. 
 
 4. It is desirable to establish groups of products so 
 that some weaker ones of the group may secure attention- 
 because of such grouping. 
 
 To give an example of this grouping, the following 
 table shows the grouping method used by one firm which 
 makes a considerable number of products in the roofing 
 field: 
 
 Class 1. Paroid. 
 Proslate. 
 
 Class 2. Black Building 
 Red Rope 
 Florian. 
 Paint and Cement. 
 
 Class 3. Granitized. 
 Coated. 
 Insulating. 
 Asphalt Felt. 
 Wall Board. 
 Wall Battens. 
 Waterdyke Felt. 
 
 Class 4. Dry Felt. 
 Compound. 
 Rosin Sized.
 
 THE SCIENTIFIC POINT SYSTEM 173 
 
 Class 5. Shingles. 
 
 Floor Covering. 
 
 Class 6. Miscellaneous. (This class is to cover 
 small items which are not as a rule 
 given a great deal of attention.) 
 
 It is well to plan Sales Report forms, order forms, bills, 
 etc., on the standardized basis of the classification accord- 
 ing to the classes of products grouped. In other words, 
 it facilitates handling and the labor of making compari- 
 sons, if all order blanks and sales reports group the prod- 
 ucts according to the classification decided upon in the 
 Point System. In this way the total for each classification 
 of products on any individual order may readily be added 
 up and credited. 
 
 130. Special Reward Factors Measurable by Point System. 
 — The Point System is used not alone for judging the regu- 
 lar sales work, but also as stimulus for special achieve- 
 ments — on the plan of a bonus system. The points are 
 given in place of merchandise presents or money prizes, 
 and help to raise the place of the salesmen in the general 
 competition. 
 
 The following are some of the factors for which points 
 may be given: 
 
 1. Largest number of orders. 
 
 2. Largest per cent of increase over estimate. 
 
 3. Largest increase in dollars and cents. 
 
 4. Largest number of towns visited. 
 
 5. Lowest per cent of expense to sales. 
 
 6. Ratio of town reports to number of workable towns 
 in territory. 
 
 7. Highest percentage ratio between gross and net 
 sales. 
 
 8. Highest percentage of estimate new agents or deale]?s 
 stocked.
 
 174 MODERN SALESMANAGEMENT 
 
 9. Lowest number of past due accounts in territory 
 (based on quarterly showing after deducting suspense ac- 
 counts collected). 
 
 10. Largest number of orders taken. 
 
 11. Highest percentage of gain over previous year in 
 Group I. 
 
 12. Largest number of individual prospects (or towns) 
 visited; also lowest number of towns or prospects visited.
 
 CHAPTER XVI 
 
 SALES CONVENTIONS, LECTURES AND CONFERENCES 
 
 131. How the Sales Convention Developed. — The sales 
 convention has come as a necessary factor in the handling 
 of a large national selling organization; and because of 
 its success in a large way, has demonstrated its value even 
 for small sales organizations. 
 
 As national organizations work at long distance from 
 the home ofSce, and as it is never satisfactory to deal en- 
 tirely by mail or the printed word with regard to the vital 
 elements of selling success, small as well as large concerns 
 have found it absolutely necessary to gather the district 
 managers, at least, if not all the salesmen, together at least 
 once a year in order to develop the best esprit de corps and 
 draw by personal contact with the master minds of the 
 business. 
 
 The first to use this method were the organizations of 
 specialty machinery like adding machines, typewriters, 
 and cash registers, because they, above all other kinds of 
 sellers of merchandise, were obliged to sell through branch 
 agencies, and were completely dependent upon the branch 
 managers and their salesmen for success. 
 
 The earliest conventions on record among these and other 
 concerns have usually been more or less of a junketing na- 
 ture, without any real value for the business. This was 
 necessarily so until more experience was secured as to the 
 proper method of getting value out of the convention. 
 And while many conventions now held are still of this 
 nature rather than the more scientific type, the tendency 
 
 17?
 
 176 MODERN SALESIMANAGEMENT 
 
 is rapidly growing to make such conventions more busi- 
 ness-like and effective. 
 
 Various elements have been put into the convention idea 
 which have made it much more valuable than was originally 
 intended. One of these elements is advertising. The 
 other is schooling and instruction for salesmen in a way 
 not heretofore thought possible in conventions. 
 
 With respect to the advertising to be secured, this has 
 been accomplished by running special trains with streamers 
 along the side from various places to the convention point, 
 and also by using display advertising in connection with the 
 convention, and thus to impress on the general public as 
 well as the trade, the bigness of the organization and the 
 importance attached to the convention. In some cases, 
 such as the National Cash Register Company, newspapers 
 or periodicals have been issued and publicity matter passed 
 off the special trains along the line. 
 
 132. Illustration of Exceptionally Elaborate Convention. 
 — As an indicator of length to which some large firms go 
 in stressing a sales convention, the following description 
 of arrangements of one held by a famous company will 
 suffice : 
 
 A tented city was put up with very comfortable tents of 
 the latest construction for the men. The city itself was 
 laid out in streets with proper numbers and with walks 
 running between the tents. At one end of the field was 
 a splendid series of shower baths, piped for hot and cold 
 water, lavatories, a very comfortable barber shop, with a 
 complete outfit such as you would find in a very well regu- 
 lated hotel. A dining tent, splendidly equipped, a lounge 
 tent, filled with easy chairs and couches, post office in 
 charge of an official, with boxes just the same as a regular 
 post office — a box for each man ; a properly equipped tele- 
 graph office ; a tent equipped with a dresser for each man, 
 with toilet articles on the dressers. Long before the men
 
 SALES CONVENTIONS, LECTURES 177 
 
 came to the station their baggage was delivered. A laun- 
 dry system, a lecture tent, with stereopticon and motion 
 pictures, electrically lighted, were operated. The camp 
 was situated out in the country miles from the factory. It 
 was the most amazing thing that the men who attended it 
 had ever known and of course it left an impression upon 
 the men which brought increased efficiency in selling. It 
 is true, however, that such extreme elaboration is only in 
 rare instances a wise expenditure. 
 
 133. Making Conventions Profitable and Practical. — Con- 
 vention planning is a special technique in itself which has 
 grown rapidly in recent years, and there are now men who 
 specialize in this work. It is realized that the expenditure 
 of so much time and effort (conventions cost from $2,500 
 to $100,000 or more) warrants great care with details. A 
 poorly planned convention may do more harm than good. 
 
 The time is passed, so far as well managed companies are 
 concerned, when sales conventions are held annually or 
 semi-annually just because so much time has elapsed. 
 
 The success of a sales convention depends primarily 
 upon the definiteness of purpose for which it is called, 
 and secondly upon the efficiency with which the program 
 is carried out to secure that purpose. Definiteness of pur- 
 pose makes for efficiency of method, particularly if the 
 salesmanager in charge of making up the program will 
 check every detail by asking, regarding each, these two 
 questions : first, is this the thing to do to get the desired 
 result; second, is this the best method of doing it? 
 
 The paragraphs to follow will give specific advice on 
 the various methods of making a convention produce value. 
 
 As a clincher for the practical value of sales conventions, 
 it is often advisable to put salesmen and district man- 
 agers on record as to the volume of sales which they will 
 voluntarily guarantee during the coming year. The 
 proper method applied and the stimulus of rivalry aroused
 
 178 MODERN SALESMANAGEMENT 
 
 by personal contact with the other district managers, re- 
 sults frequently in a very effective lining-up of sales possi- 
 bilities for the coming year. 
 
 134. CoiTcct Physical Arrangements. — It is highly essen- 
 tial to sales convention success to provide wisely for the 
 physical comfort of the salesmen while in attendance. 
 
 The right sort of meeting place must be provided. The 
 chairs should be comfortable and there should be sufficient 
 room. Two of the details essential to a successful meeting 
 are: first (commonly overlooked), the need for adequate 
 ventilation, and second, good acoustics. Fresh air is ab- 
 solutely essential to clear thinking. Every man needs on 
 an average fifty cubic feet of fresh air per minute. From 
 this as a standard it is easy to compute how many cubic 
 feet of air will be needed and how much air space and air 
 current will be required to supply them with fresh air 
 and to remove the vitiated air. 
 
 Hotel quarters, guides when necessary, careful instruc- 
 tions as to what to do, copies of the program where these 
 are prepared in advance for distribution are necessary 
 details. 
 
 The room needs to be properly heated; there should be 
 pure drinking water provided. Experience shows that 
 drinking fountains are the best arrangements so far de- 
 vised for use where large groups must be served, but if 
 fountains cannot be had then drinking cups should be sup- 
 plied in sufficient quantity. Proper ventilation, heating, 
 and plenty of good, cool, but not iced, drinking water are 
 aJl more important to the success of the sales conventions 
 than most people think. 
 
 Some one should be placed in charge of all preliminary 
 arrangements for the meeting. This is not a task for a 
 "committee on arrangements," but for some one person 
 who can specifically be asked to see that everything is 
 done and that all things are in their proper places before
 
 SALES CONVENTIONS, LECTURES 179 
 
 the meeting begins. For example, all signs, decorations, 
 bulletins, etc., should be posted. Chairs and desks should 
 be in their places. There should be some means of calling 
 the meeting to order promptly by some easily recognized 
 signal. All exhibits, demonstration apparatus and other 
 material that is to be used in the convention should be 
 in their places when the meeting begins. There is no 
 excuse for delays occasioned by lack of note paper, of 
 samples inadvertently left in somebody's office that should 
 be in place. 
 
 135. Promptness and Dispatch. — The first rule is to begin 
 on time. Every minute of the convention is extremely 
 valuable. How valuable it is may be determined by com- 
 puting the salaries and daily expenses of all of the men 
 in attendance and reduce this to a cost or value-per-minute 
 basis. From this it will be easy to see how much is lost 
 even if the convention begins only fifteen minutes late. 
 Beginning on time sets the right example for the sales- 
 men, besides making it possible to carry out the program 
 on schedule time. 
 
 As a rule, it is advisable to strike the intended keynote 
 of the convention in the first few minutes of the meeting, 
 to tell the members what the meeting is for and from that 
 time on to deliver the goods, so to speak, as directly as 
 possible in accordance with the aims outlined in these first 
 few minutes. 
 
 Frequent recesses of two or three minutes are valuable. 
 At such times it is a good idea to have the salesmen get 
 up on their feet, stretch or take some form of calisthenic 
 exercise that can be directed from the platform. 
 
 The meeting must be kept moving from the time it 
 starts in session. The salesmanager should keep his hands 
 on the situation all of the time. There will be abundant 
 temptations for him to be led away from the meeting to 
 discuss this or that matter, all of which are likely to lose
 
 180 ]\10DERN SALESMANAGEMENT 
 
 for him the contract that he should keep. The salesman- 
 ager, as chairman of the meeting, should be absolutely fair 
 at all times and never be guilty of partiality in any form. 
 The man with an objection should be met in the most tact- 
 ful manner possible; it is frequently best, instead of at- 
 tempting to answer the objections raised by men, if there 
 are such, to get the objectors themselves to formulate their 
 own answers and then to follow them up by getting the 
 other salesmen to work on the objections. An attempt to 
 sell or convince the objector of his error before all of the 
 salesmen frequently ends in the salesmen fighting back, 
 remaining unconvinced, or in a wrong impression gained 
 by a number of the men in attendance. 
 
 136. Importance of Food and Drink Problem. — Careful 
 attention should be given even to planning the meals for 
 the salesmen while in attendance. The common evil at 
 times of sales conventions is overeating. The companion- 
 ship of other vigorous men, the good fare offered in the 
 hotels, the hospitality of the company, all contribute to 
 this result. 
 
 Salesmen as a rule are active men, and in a convention 
 they are required to sit still for hours at a time and with- 
 out exercise. The result is that the overeating leads to 
 poor physical and particularly sluggish mental condition. 
 Thus, just when you want your men to be in the livest, 
 most receptive mood to the ideas you have to give them, 
 through a detail of bad planning, namely, wrong food sup- 
 ply, you find the men sleepy, complacent, conservative, 
 non-aggressive, and without fire and pep. 
 
 As for alcohol, the day of the "wet" convention has 
 passed by. The salesman who drinks cannot be an effi- 
 cient salesman, nor can he be depended upon. These facts 
 being well known, there is little excuse for any departure 
 from this rule of temperance at sales conventions. 
 
 At convention time the salesmen get their impressions
 
 SALES CONVENTIONS, LECTURES 181 
 
 of their employers. With that in view can any sober, 
 hard-working salesmanager afford to "fall off the water 
 wagon," so to speak, in the presence of his employees, 
 when he should indicate to them by his every action the 
 earnestness and intensity of interest he feels in his work 
 and the need for sobriety? 
 
 Incidentally, it may be desirable to have some lessons 
 presented to the salesmen on the subject of personal physi- 
 cal efficiency. An address from an able physician upon 
 this subject will ordinarily receive much closer attention 
 than the same remarks would from a member of the com- 
 pany, 
 
 137. Making a Successful Program. — Every subject to be 
 presented at the convention needs to be fully outlined and 
 prepared in detail considerably in advance of the meet- 
 ing. In most cases the salesmanager will find it best to 
 define very fully just what he wants each person desig- 
 nated to take part to do on the program. 
 
 Every person participating in the meeting in any way 
 should be fully sold in advance on what the salesmanager 
 wishes to accomplish, and in this connection it may be 
 frankly stated that it is often harder to sell the officers 
 of the company or heads of other departments than any 
 other group of people. There is rarely that unity of in- 
 terest and purpose of sales meetings that there should be. 
 It is not to be understood that this lack of cooperation 
 Avhere it occurs is intentional. On the contrary, it is due 
 almost wholly to a desire to help, but not knowing just 
 what help to give, the effort is misspent in every direction. 
 
 The meeting when once called should move forward in 
 an interesting and sprightly manner. Many suggestions 
 will ordinarily need to be given to the persons who are 
 participating in tlie program, regarding the necessity for 
 eliminating all long-winded preliminaries, all self-lauda- 
 tion, personal bouquets as well as individual criticisms.
 
 182 MODERN SALESMANAGEMENT 
 
 One of the most common evils in most conventions is 
 the fact that many persons who enter into sales discussions, 
 as well as the speakers upon the program, do not make 
 themselves heard to all members in the convention hall. 
 Every effort should be made in advance to impress upon 
 the speakers the need for talking loud enough. Instruct 
 the speakers to make themselves heard by the men in the 
 last row. 
 
 The question of introduction of speakers from the out- 
 side is important, and is usually a good thing. 
 
 New movements in marketing methods, illustrations of 
 what is being done in other companies, and many other 
 subjects of value to the salesmen may well be presented 
 by persons from outside of the organization, by men who 
 are qualified by experience or study to speak as authorities 
 on these subjects. 
 
 It is, of course, essential that the outsider should have 
 a message that will help to carry out the purpose for 
 which the meeting was called. Before placing such out- 
 sider's help on the program, it is imperative that the sales- 
 manager should clearly know what will be presented and 
 how, so that he can, by his own follow-up, fully cash in on 
 what is presented by the specialist.
 
 CHAPTER XVII 
 
 MANAGING SALESMEN'S TEMPERAMENTS AND HABITS 
 
 138. The Salesman Type of Mind and Its Needs. — Prac- 
 tically all salesmen, certainly all average and lower grade 
 salesmen, need to lean on some other individual for 
 strength and management, not alone for the operation of 
 their sales work, but also for their problems of personal 
 life. Their emotions are almost invariably involved in 
 their jobs and in their superiors; if they are not, their 
 work is not likely to be up to par. Their ambitions, their 
 home life, general habits and state of mind are of very 
 definite importance to the firm and bear an unmistakable 
 relationship to their sales performance. 
 
 The most certain way to failure in managing salesmen 
 is to ignore this personal and temperamental side of the 
 men. The greatest success in management of salesmen is 
 usually achieved by big-hearted, manly "men's men," who 
 also combine with these qualities exact justice, penetrating 
 analysis of human nature and an optimistic temperament. 
 However, as this type of salesmanager is frequently de- 
 ficient in the analytical merchandising knowledge neces- 
 sary otherwise in salesmanagement, it is often advisable 
 to employ a manager of salesmen who will be under the 
 salesmanager and have nothing else on his mind but the 
 study of the personality and development of the salesmen 
 individually. 
 
 The very fact that a man 30 years of age or over is a 
 salesman indicates certain tendencies of mind which 
 call for supervision. It is a saying among salesmanagers 
 
 183
 
 184 MODERN SALESMANAGEMENT 
 
 that the moment a salesman ceases to need management 
 he is ready to be called in for a bigger job; therefore, in 
 a sense salesmen are incomplete characters, or highly spe- 
 cialized characters, calling for unusually sympathetic treat- 
 ment and constant individual attention and study. 
 
 Leading something of a nomadic life, concentrating day 
 after day upon people who resist his arguments, and being 
 away from normal social life, a salesman is somewhat of an 
 actor and an unnatural individual in presenting his prop- 
 osition. He endeavors to adjust himself to the particular 
 whims or moods of the prospect he calls on. He is forced 
 to subdue his real personality, his real thoughts and feel- 
 ings. The new conception of salesmanship is getting away 
 from this unnaturalness, yet at best, it is a sort of Dr. 
 Jekyl and Mr. Hyde existence, sure to have an effect of 
 lack of balance on himself and to require a more normal 
 individual to closely supervise him ; not as a critic and 
 work driver, but as a friend and healthy counterbalance. 
 Recognition of this purely personal balancing function by 
 a salesmanager is highly essential. 
 
 139. Development and Maintenance of Self-Faith. — The 
 outstanding fact about salesmen is that they must believe 
 in themselves to an unusual, even almost to an egotistic 
 extent. The story is told of a salesman on the witness 
 stand who, on being asked if he thought he was a good 
 salesman, replied that he was one of the best in the world. 
 "Are you kidding yourself or the court?" jested the op- 
 posing lawyer. "I am on the witness stand under oath, 
 and I will not perjure myself with any other estimate of 
 myself," was the salesman's facetious but semi-serious 
 reply. 
 
 It is the task of every salesmanager to carefully awaken 
 and preserve in all salesmen their own self -faith. 
 
 If a salesman thinJcs that he can do a certain thing, it is 
 more than half done, but so long as he has even a remote
 
 MANAGING SALESMEN'S TEMPERAMENTS 185 
 
 idea that he cannot do it, it is a moral certainty that he 
 never will. 
 
 It is naturally of first importance to watch in each sales- 
 man the status of his self-measurement. Some men are 
 too modest. An excess of modesty is usually a fatal bar- 
 rier to selling success — far more so than an excess of self- 
 esteem. The reason is that people look to the salesman 
 to provide not only his own estimate of the merchandise 
 but also his own estimate of himself and the worthwhile- 
 ness of talking to him. His personal vanity in his clothes, 
 manner, speech and person has intimate relation to his self- 
 esteem. It is an important indicator, also it is a means for 
 the development of pride and self-faith. There are man}^ 
 salesmen who before tackling a ' ' tough nut ' ' customer will 
 "blow" themselves to a new coat, suit, hat or other piece 
 of apparel as an aid to their "nerve." 
 
 The secret of well-maintained self-faith is that some evi- 
 dence of success must he coming along continuously. Sales- 
 men of the average kind are not long-distance champions ; 
 few can hold out without a taste of some decided success 
 at least once each thirty days. The salesmanager who is 
 wise will see that once at least in such an interval of time 
 something occurs which will encourage self-faith in each 
 salesman. No salesman can withstand for long a bombard- 
 ment of demands and cold scrutinizing analysis from his 
 superiors unless he is making good unmistakably; and as 
 he usually gets such treatment only when his record is 
 doubtful, the first thing that happens is the fatal thing — 
 loss of self-faith. Greatest faith in a good salesman should 
 be displayed at his weakest hour of performance, and 
 should be shown, not as mere blind trust, but in form 
 which provides material for the salesman's own renewal 
 of self-faith. Judicious praise for a minor detail, good- 
 natured raillery or judicial expectation and confidence are 
 effective.
 
 186 MODERN SALESMANAGEMENT 
 
 140. Adjusting Salesmen to Organization Work. — Sales- 
 men are not fundamentally organization men. It is a rare 
 exception when a salesman is a good organization man, 
 and it is perfectly natural that he should not be. There 
 is little in the traveling salesman's life conducive to either 
 system or organization. Many men have chosen it be- 
 cause it gives them a sense of freedom, and it is difficult 
 for them to reconcile this desire for freedom with the 
 restraint of organization. This condition should lead to 
 using more temperate and indirect methods toward sales- 
 men than is necessary toward either the inside office or 
 factory organization. 
 
 Salesmen chafe under discipline. As the business grows 
 in size and the work on the inside is subdivided into a 
 variety of departments, each considering its particular 
 duties of prime importance, the salesman, who in a sense 
 represents each department in his territory, is often del- 
 uged with mail, some of which is bound to be interpreted 
 as conflicting. He is slow to see organization purpose back 
 of it and is inclined to resent this multiplicity of instruc- 
 tions. This is particularly true when instructions are re- 
 ceived from individuals that the salesman is not personally 
 acquainted with. 
 
 This suggests the need in business of selling completely 
 the service of each department so that the salesman will 
 see to an extent at least how each fits into the general 
 scheme of things. He should be taught the necessity for 
 subdivision and departmentizing of work on the inside — 
 that it always leads to greatest total efficiency from a com- 
 pany as well as an individual standpoint. An explanation 
 occasionally of these fundamentals of business removes 
 suspicion from the salesman's mind and places him in a 
 more receptive mood to cooperate. 
 
 This point also suggests the importance of subduing or 
 at any rate minimizing the correspondence with salesmen.
 
 MANAGING SALESMEN'S TEMPERAMENTS 187 
 
 There is a plan used in some organizations of clearing in- 
 structions to the salesmen from all departments through 
 a separate individual or at least through the Sales De- 
 partment only. This eliminates conflicting correspondence 
 and tends to cut down unnecessary letters to salesmen. 
 
 Sales conventions and sales schools — subjects elsewhere 
 treated — are also important instruments for building up 
 the knowledge of organization in salesmen. Not the tech- 
 nique of organization, but the spirit of organization is im- 
 portant. 
 
 This spirit of organization consists of an attitude of 
 mind, which in a salesman is at its best when it is partly 
 personal loyalty to the head of the house or to the sales- 
 manager, and partly genuine enthusiasm and belief in the 
 desirability of the merchandise and the correctness of the 
 sales campaign plan. System, routine and mechanism of 
 all sorts are valuable only to a certain degree which should 
 be shrewdly sized up at the outset in relation to the plan 
 and the personality of the salesmen. 
 
 Salesmen must never be regarded quite like the rest of 
 the organization in respect to organization, because while 
 all the other workers are dealing with physical things that 
 can be touched and seen, the salesmen are dealing with 
 the intangible, and are, in a sense, creators of something 
 which did not before exist. They need to be regarded in 
 the light of creators rather than as routine workers, and 
 as creators they must be burdened with an absolute mini- 
 mum of detail. The aim must be to increase their time at 
 the real work of argument, persuasion and presentation, 
 and decrease their time at all else. 
 
 141. Overcoming Too Great Obsession by Competition. — ■ 
 Salesmen are likely to be over-disturbed by competition. 
 It bulks up large in their minds for the simple reason that 
 it is the most frequent reason given them for not obtaining 
 an order ; also the most simple explanation they can make
 
 188 MODERN SALESMANAGEMENT 
 
 to themselves for lack of success. The grass always looks 
 greener on the next hill; the competitor seems always to 
 a salesman to be a bit more dangerous than he really is. 
 An amusing proof of this is given by a well-known sales- 
 manager, who relates: 
 
 "When I was in the paint business I used to call on 
 our agents, and I got the impression that as a whole they 
 were dissatisfied and were quite enthusiastic about our 
 competitor's line. Later I changed to another line and, 
 strange to relate, when I called on those same dealers they 
 were so well satisfied wnth the brand I used to sell that 
 they could not be moved." 
 
 Salesmen do not analyze all this, and they readily get 
 the impression that competition possesses non-plussing 
 specific advantages and is making great inroads. This 
 impression can be corrected by frequent cool analysis with 
 the men of the points of competition, and the relative 
 general status of the concerns. If such relative status is 
 unfavorable to the house, the work of building a right 
 attitude among salesmen is especially important. Sales- 
 men who must face the competition of a larger and 
 older house, a house able to spend more money in sales 
 development, and perhaps even rendering a superior ar- 
 ticle or ser\'ice, deserve the very ablest salesmanagement 
 possible if they are expected to succeed. That they do often 
 succeed is due to the spirit and attitude of mind which 
 can be developed through wise handling of competition, a 
 spirit of dare and contest which is actually heightened by 
 the presence of heavy odds. 
 
 The prime element of success in such an effort to drive 
 fear of competition out of a salesman's mind is the ap- 
 peal to the latent fighting spirit in every man. Not an 
 open destructive warfare on competition, but a spirit of 
 contest and of merit matched against merit. This spirit 
 is easily carried too far, but it is a deep-rooted male in-
 
 MANAGING SALESMEN'S TEMPERAMENTS 189 
 
 stinct not to be overlooked. Of greatest importance is 
 detailed understanding and comparison of the goods com- 
 ing into competition, and concentrated emphasis upon the 
 superiorities or exclusive features of the article. 
 
 142. Correcting Erroneous Notions That Salesmen De- 
 velop. — It should never "be held against salesmen that they 
 develop "notions" and become hypercritical of the house's 
 policy, etc., because it is only human that some of the 
 opposing arguments they hear daily, far away from the 
 original source of reassurance and information, should 
 stick in their minds and have an effect. 
 
 A most common instance is that the salesman feels that 
 his prices are too high. He gets this idea because every 
 buyer tells him so ; tells him how much less expensive com- 
 petitive products are. He does that because he is a good 
 buyer. A salesman hearing this from day to day is bound 
 to get the idea that there is something in it, and then he 
 gets the feeling that his is a high-priced line; that he is 
 handicapped. Live salesmanagers watch this point some- 
 times from a question on the call report reading, "Why 
 didn't he buy?" 
 
 By taking all these reasons from all of the men and 
 distributing them under territory captions, an analysis 
 will show what, in the mind of the salesman, is standing 
 in the way of his getting business. It tends to show the 
 mental hazards that obstruct the progress of salesmen and 
 gives a cue to the salesmanager as to the kind of attention 
 the particular salesman needs. So far as the totals are 
 concerned, a report of this kind shows the tendencies as a 
 whole. Such a report is a pretty good barometer to show 
 the necessity for changes in policy and methods. 
 
 The Beaver Board Company once had an unusually good 
 illustration of the extent to which salesmen allow them- 
 selves to be disturbed unnecessarily by competitive prices. 
 
 As a result of an insistent demand by its salesmen for
 
 190 MODERN SALESMANAGEMENT 
 
 a cheaper product, it put out a board very similar to a 
 competitor's at a price five per cent less, or about twenty- 
 five per cent less than the price of Beaver Board. When 
 this was offered to the trade it was slow to buy it, and 
 rather showed preference for the trade-marked, well-adver- 
 tised Beaver Board at the higher price. Sales on the low- 
 priced product were very small comparatively ; it has been 
 withdrawn from the market because salesmen found that 
 it was not the big factor they had anticipated. 
 
 But there are many other notions developed by sales- 
 men besides the high price bugaboo. The next in impor- 
 tance and frequence is dissatisfaction with the product. 
 They want further models or styles or grades — quite nat- 
 urally, since there are always customers desiring individual 
 special merchandise off the standard. It is exceedingly 
 hard to get the selling type of mind to appreciate the 
 manufacturing folly of too many styles and models. The 
 salesman's chief thought is to please each customer and 
 to sell just what he wants. The war-time experience among 
 manufacturers of all types in reducing models and styles 
 will eventually go a long way toward eradicating this no- 
 tion, but for a period of years it will nevertheless be a 
 more prominent factor than ever just because of this dras- 
 tic reduction. Only a limited amount of argument on the 
 subject should be indulged in; it is a good rule to do as 
 little arguing as possible over absolutely fixed policies. 
 
 Salesmen who have worked for other firms, especially 
 firms in the same line, develop prejudices and notions 
 which are especially hard to eradicate. For this reason 
 some firms have a policy of refusing to hire salesmen who 
 have sold the same line of goods before. 
 
 Salesmen also get into the habit of evading certain 
 trade that they don't like. They may have some personal 
 grievance or they may just be prejudiced against the per- 
 sonnel. Of course, a system of checking calls against lists
 
 MANAGING SALESMEN'S TEMPERAMENTS 191 
 
 of trade shows this up. In cases of this kind it is necessary 
 to be firm and in some cases send the man back to the 
 town, or, if possible, go back with him in order to get 
 this prejudice out of his mind. 
 
 Salesmen sometimes feel that they ought to favor their 
 trade as against the interests of the house. They want 
 to give unnecessary datings, advertising concessions, or if 
 prices are advanced they want to let some of their cus- 
 tomers in at the old price. A case in illustration: it was 
 decided at a sales convention to advance prices without 
 notice, and a really good salesman went out and wired a 
 number of his best customers and received large orders 
 from them. He was a good salesman, but had never been 
 completely sold on the idea that the house should have 
 first consideration. To overcome this prejudice is largely 
 a matter of education. The salesman must be drilled into 
 the delicate state of balance whereby he sees that although 
 the interests of his customer are paramount in general, his 
 first direct allegiance is to his house. 
 
 143. Wrong Traditions and Superstitions Among Sales- 
 men. — A great number of traditions and even superstitions 
 are current among salesmen. This is natural in a business 
 dealing with the intangible, and in a profession just evolv- 
 ing some degree of organized knowledge. Many of these 
 traditions and superstitions are heresay, "hunches" and 
 hidebound beliefs and omens, but others are the relics of 
 teachers and writers on salesmanship in the period now 
 happily passing when many peculiar notions were held 
 about salesmanship. 
 
 Still others are merely the natural outcroppings of the 
 salesman's type of mind, reactions to his job which proceed 
 from selfish or ignorant or misguided motives. Some are 
 conscious and openly spoken about among salesmen, others 
 are unconscious. For instance, the tradition about work- 
 ing on Saturday. It has been impressed upon them by
 
 192 MODERN SALESIVIANAGEMENT 
 
 hearsay and by willing belief that you can't do business 
 on Saturday. In some lines it is true, but in most lines 
 Saturday is about as good as any other day. A salesman- 
 ager who makes that plain to the man when engaging him 
 can often cure it. A personal demonstration by the sales- 
 manager should certainly do so. 
 
 A tradition that has been handed down among sales- 
 men and which has the support of some salesmanagers is 
 that a salesman when he had made a sale should make a 
 ' ' quick get-away. ' ' This is incorrect, particularly in a line 
 that must be resold or where its proper use is an impor- 
 tant factor. 
 
 The theory is that if the salesman remains after the 
 sale actually has been consummated there is a danger of 
 the customer reconsidering and cancelling the order. As 
 a matter of fact, if the prospect has been properly sold 
 there is no danger, and if he hasn't been properly sold 
 it is better for the house that the order be cancelled than 
 that a disgruntled customer be added to the list. If the 
 house takes a firm stand in matters of this kind it will 
 lead to the salesman spending enough time with his cus- 
 tomer after the sale has been made to thoroughly educate 
 him and his subordinates in the talking points of the prod- 
 uct, and the proper way to use the service features. 
 
 One of the worst of the unconscious tendencies from a 
 result standpoint is that men slow up sometimes because 
 they feel they have enough business. Many men go along 
 at a fine pace for about three weeks during the month and 
 then fall down. It is largely a mental condition — a con- 
 dition of self-satisfaction. Commission men are especially 
 amenable to this trait, proving that even the financial in- 
 centive is not sufiicient. If salesmen are made to feel 
 that they are working by week rather than month they get 
 into the habit of thinking that they must make a showing 
 within the week rather than within the month.
 
 MANAGING SALESMEN'S TEMPERAMENTS 193 
 
 In a period when more and more women are in business 
 it is well to speak of another sharply marked tradition or 
 superstition, that of not desiring to sell to women. Sales- 
 men are fairly unanimous in this — they do not like to sell 
 to women. No doubt women, being by natural training 
 closer buyers than men, are hard prospects, but there is 
 no reason for believing that as a class they are to be 
 avoided. 
 
 Some salesmen have a superstition that they know in- 
 stantly on beholding a prospect whether or not they can 
 sell him, and some salesmen — especially book salesmen — ■ 
 actually leave a man without further ado after having 
 made this snap judgment. Others less extreme have a no- 
 tion they can tell after the first three minutes whether a 
 man will ever buy. 
 
 "Hunches" and superstitions based on the physical ap- 
 pearance of a prospect are also common, and are barriers 
 to business rather than helps. 
 
 There is another tradition which may very easily shorten 
 a salesman's day. A man is supposed to be in a more 
 genial and receptive mood after his noon meal, and big 
 deals are sometimes delayed with that advantage in view. 
 But valuable mornings are thus given less value as noon 
 approaches, some men allowing themselves to put off im- 
 portant calls until afternoon, whereas the longer mornings 
 are of much greater importance. 
 
 Still another "time" superstition is that of holidays. 
 A well-known salesmanager relates : ' ' One of my best sales- 
 men from a Coastal territory surprised me by arriving in 
 New York about a week before Christmas with the excuse 
 that he had placed all possible business and could not se- 
 cure attention so near to the holidays. I had an open terri- 
 tory which included Washington, and under plea that I 
 wanted him to show an Eastern traveler that he could sell 
 goods equally well in any territory I sent him to Wash-
 
 194 MODERN SALESMANAGEMENT 
 
 iiigton. That city had been a difficult prospect, but I 
 wanted him to get out of the notion that goods could not 
 be sold during the very busy season. In three days he 
 'cleaned up the town' and placed more goods than had 
 been sold during the entire year. At my convention of 
 salesmen in the following January, I used the incident as 
 a yevy strong proof that detennination to sell is a habit 
 of the mind and that sales are possible whenever and 
 wherever a man has the will to put them over." 
 
 144. Dealing with the Question of Drink and Over-Fond- 
 ness for Women. — These being the typical male vices, they 
 are ever-present in sales organizations. The life is pecul- 
 iarly open to just these temptations. The need for a policy 
 with regard to them is soon made evident in any organiza- 
 tion employing a number of salesmen. 
 
 As for drink, the testimony is fairly universal that a 
 man who for a period of years has let liquor interfere 
 with his sales work, either regularly or spasmodically, is 
 hopeless so far as real reform is concerned. According to 
 the nature and temperament of the man he will keep to 
 the straight line for a period, long or short, but he will 
 get back to it again sooner or later. Many splendid sales- 
 men have, of course, been saved from this ruin by the 
 vigilant efforts and interest of a good salesmanager, but 
 the work is often disheartening. 
 
 Now that prohibition is in effect, the probable tend- 
 ency will be to remove temptation to a large extent, prin- 
 cipally by making drink available only by the tedious 
 backdoor route. The treating habit and the enticement of 
 luxurious bars in hotels have had much to do with infect- 
 ing the sociable salesman type of mind with the drink 
 germ. Salesmen who habitually drink — and this means if 
 they drink more than a very little indeed — are more and 
 more refused any jobs whatever, on principle. 
 
 The question of women is considerably more delicate and
 
 MANAGING SALESMEN'S TEMPERAMENTS 195 
 
 different policies are pursued, according to the personality 
 of the salesmanager. Some ignore all private life matters, 
 others vigorously interest themselves, in the spirit of a 
 father and his family of sons — in the relationsliips of their 
 men. They bring together unhappy man and wife in a 
 fatherly way ; reason with men who are known as habitual 
 "chasers after women," Men who get into trouble over 
 women sometimes greatly need and respond to help from a 
 salesmanager ; and those who are habitual in their unde- 
 sirable habits with women are best handled by placing 
 them to the largest possible extent in association with men 
 who do not have such standards, 
 
 145. Salesmanagers and Their Attitude to Habits and 
 Superstitions. — Nothing has so far been said about the 
 habits and traditions of salesmanagers, which must neces- 
 sarily radiate from the House to men on the road. These 
 are sometimes even more harmful to a business, because 
 they must be accepted in the guise of policies and instruc- 
 tions, and often there is no one in sufficiently high author- 
 ity to exercise control over them. It behooves the sales- 
 manager to examine his own traditions and habits of mind. 
 It is w^ell that he should put the acid test on customers and 
 policies which he has brought with him from former busi- 
 ness connections, and carefully weigh them against the 
 needs and opportunities of a newly adopted business and a 
 different grade of salesmen. A salesman with supersti- 
 tions hurts only the work of one man ; but a salesmanager 
 with prejudices, set habits of thinking and superstitions 
 greatly harms his men and his firm as well. 
 
 There are many road habits which are based on self- 
 indulgence, love of comfort, and exalted sense of privilege, 
 all of which are hard to combat. The conditions whicb. 
 give rise to such habits are often found to lie so closely 
 to sound justification that the arguments advanced in de-
 
 196 aiODERN SALESMANAGEMENT 
 
 fense are stronger than the salesman's willingness to cor- 
 rect them. 
 
 Custom, unchecked, becomes habit, and habit soon set- 
 tles into tradition. Most salesmanagers follow custom in 
 dealing with road traditions common to salesmen at large, 
 and are disposed to remember the days when they them- 
 selves were jealous of personal privilege. But when tra- 
 ditions come closer home, and the welfare of a business is 
 affected by laxity of method and dullness of instinct, then 
 heroic treatment must follow proper diagnosis, and cor- 
 rective measures cannot be too firmly enforced.
 
 CHAPTER XVIII 
 
 SALES SCHOOL AND TRAINING METHODS 
 
 146. The Eeasons Behind Intensive Sales Training. — Sales 
 executives who have no special methods of training their 
 salesmen are often greatly astonished and chagrined v^hen 
 they have an opportunity to hear their men talk to a 
 prospect. The lack of knowledge of the goods of the house 
 and even of sound principles of selling are often appall- 
 ing. This can be demonstrated very easily by a simple 
 test. Have one after the other of the salesmen come into 
 the office and demonstrate the firm's goods. Have a ste- 
 nographer take down what each says. It is the exception 
 to find that the salesmen of any house will agree either 
 upon (1) the names and terms used, or even the uses and 
 functions in describing the goods; (2) the points which 
 should be stressed most, or (3) the best general arguments 
 for purchase. Furthermore, their fundamental knowledge 
 of argument, demonstration or the other elements of good 
 salesmanship will be found either (1) to be greatly de- 
 ficient; (2) to be garbled and carelessly applied; (3) to 
 be robbed of value because of emphasis in wrong places 
 and lack of emphasis upon others. 
 
 In view of this condition it has for years been recog- 
 nized to be important to train salesmen, almost if not quite 
 in the sense of schooling them. When this idea was first 
 applied, it naturally ran to an extreme. Every word and 
 gesture was standardized until salesmen were mere par- 
 rots or talking machines. Modification of this idea has 
 
 197
 
 198 MODERN SALESMANAGEMENT 
 
 come about, so that individual treatment is regarded as 
 important; but general sales training is nevertheless re- 
 garded as essential. 
 
 The need for schools for salesmen, which is now felt 
 among a great many lines of business, may be said to 
 spring from the following conditions: 
 
 1. The passing of the day of pure personality as equip- 
 ment to get business; the realization that salesmen are 
 made, not merely born. 
 
 2. The more scientific purchasing attitude among busi- 
 ness men of all kinds. 
 
 3. Closer competition, requiring more definite detailed 
 knowledge of a sales proposition. 
 
 4. Larger organization of salesmen becoming unwieldy 
 and without unity, unless centrally trained. 
 
 5. Greater appreciation of the reality of the good-will 
 value of well-defined house policies, which cannot be up- 
 held except through systematic drilling of salesmen. 
 
 6. Appreciation of the many kinds of knowledge which 
 are valuable and applicable in sales work. 
 
 7. Consideration of the fact that young salesmen need 
 a reservoir of personal inspiration and development to 
 draw upon, and that a sales school makes such a reservoir. 
 
 8. Realization that with a standardization of the sales 
 arguments and methods, salesmen can greatly increase effi- 
 ciency. 
 
 9. The fact that sales schools are an interesting means 
 of getting various valuable things done at the same time — 
 such as judgment of personal character ; diplomatic train- 
 ing in minor details, checking up of branch sales work, etc. 
 
 147. Why More Sales Schools Have Not Been Established. 
 — As there are not a very great many sales schools in oper- 
 ation it is pertinent to inquire why there are not more 
 in existence: 
 
 1. Because they have been thought too costly.
 
 SALES SCHOOL AND TRAINING METHODS 199 
 
 2. Because they have been thought too difficult to 
 operate satisfactorily. 
 
 3. Because of the practice of many salesmen of getting 
 the training and then going somewhere else at higher salary 
 on the strength of it. 
 
 4. Because of the idea that the schools were apt to be 
 impractically adjusted to real sales work and not a paying 
 proposition. 
 
 5. Because of the difficulty of getting good men to run 
 the school. 
 
 There are now, however, bound to be many more sales 
 schools, since the greater need for salesmen makes neces- 
 sary, on the one hand, the active development of many 
 additional salesmen, while, on the other hand, the in- 
 creased high standards desired among salesmen will weed 
 out others who will need to be replaced. Y. M. C. A.'s, 
 colleges and high schools are giving much attention to 
 classes in selling, and provide good, reliable, raw material 
 for further intensive training in a firm 's own methods and 
 standards. 
 
 Sales "schools" may be of many kinds and degrees — 
 from a full-fledged school, complete in grades and details, 
 to merely a Saturday afternoon-get-together, a correspond- 
 ence course from the home office, or a week's trip to head- 
 quarters. 
 
 148. Preventing Sales Schools from "Pauperizing Sales- 
 men." — An objection to the school for salesmen idea is the 
 danger of pauperizing the salesmen. This means that sales- 
 men are likely to acquire the habit of getting things for 
 nothing from the company and they will be more or less 
 demoralized in the long run. This objection has to be 
 met by careful preparation. The salesman should be made 
 to pay, in some way, for the things the company does for 
 him. The methods of making him participate in the cost 
 of making him a good salesman are interesting.
 
 200 MODERN SALESMANAGEMENT 
 
 One method is to require him to buy for himself certain 
 books which are used in the course of instruction. Still 
 another method is a direct assessment upon each salesman 
 for the maintenance of the general school, so that the school 
 itself, to all intents and purposes, is run by the salesmen 
 themselves. This can be done more nominally than really, 
 for in actuality the firm is the real support, simply al- 
 lowing the salesmen to contribute to a very large degree. 
 
 In fact, the plan of making the sales school a goal to 
 be achieved rather than a routine forced upon candidates 
 is valuable from two points of view; (1) it whets the ap- 
 petite for the thing, and (2) it holds back those who would 
 gain a good firm's sales training only to leave when it is 
 finished and connect elsewhere. 
 
 The National Cash Register plan has much to recom- 
 mend it in this respect: No salesman is permitted to get 
 the advantages of the school unless he has shown some 
 preliminary ability on the road under a trained salesman. 
 
 The principle that people never appreciate what they 
 do not at least partly pay for holds good of sales schools. 
 
 149. The Type of Instructors Necessary. — This is, of 
 course, one of the most important elements, on which de- 
 pends success or failure in sales schools. The word school 
 is really unsafe to use in connection with sales training, 
 because it works harm on the minds of both the instructor 
 and the students. The methods of public school teaching are 
 in the main inapplicable to sales schools, and for this rea- 
 son it is a very dangerous experiment to use a school- 
 master type to teach salesmen. In the usual school teach- 
 ing methods not enough attention is paid to individual de- 
 velopments, whereas in any school for salesmen this must 
 be the principle most strongly stressed. Not only must 
 the methods and principle of teaching be correct in such 
 a sales school in order to get results, but the personality 
 of the teacher must be of the right kind, as students of
 
 SALES SCHOOL AND TRAINING METHODS 201 
 
 salesmanship are naturally in a receptive state of mind 
 and are easily influenced by the type of personality which 
 directs them. There is usually a predominant streak of 
 the feminine in a great many of the men who are avail- 
 able to act as teachers, and quite as often, in addition, 
 they are somewhat colorless in personality and do not in- 
 cite their students to initiative, individuality and enthu- 
 siasm. It is a necessity in a teacher of a sales school that 
 he must be able to inspire a moderate degree of enthu- 
 siasm, and to have enough of personal magnetism to in- 
 duce a similar magnetism in those under him by careful 
 treatment. 
 
 Naturally it is too much to expect to get the most highly 
 successful salesmen to be teachers, consequently it would 
 be foolish merely to make teachers out of good salesmen. 
 The ability to impart information and to conduct a course 
 of study in a manner that gets over, is a technical ability 
 of some proportion in itself. In fact, it is dangerous to 
 permit any one man to handle the entire work of a school, 
 simply because no one man can possibly be the rounded 
 personality which a school aiming at ideal sales ability 
 would require. 
 
 The best method is to have as good a teacher as it is 
 possible to get, and then, in addition, bring in for special 
 lectures or talks officers of the company, the salesmanager, 
 the president, etc, also selected salesmen from the staff, 
 and also sales counselors or specialists or good talkers on 
 selling from any outside source. Until a good man to 
 operate a sales school is secured it might just as well not 
 be started, 
 
 150. Methods and Curricuhuns. — What the students of a 
 sales school are to study is necessarily of extreme impor- 
 tance. In past years before sales schools were better un- 
 derstood, much nonsense passed as instruction in selling, 
 Ofttimes all that the course amounted to was a hip, hip.
 
 202 ]\IODERN SALESMANAGEMENT 
 
 hoorah stj'le of enthusiasm, development of the old-time 
 hypnotic notion and standards of salesmanship, with some 
 special "hunches" and superstitions with regard to how to 
 size up your prospect, etc. 
 
 The increased knowledge of selling has necessarily 
 broadened the curriculum of a sales school. It has brought 
 out the fact that various branches of special study are 
 necessary if salesmen are really to be properly trained. 
 Among the subjects which now constitute a logical line of 
 study for salesmen are: 
 
 1. General business principles. 
 
 2. Advertising. 
 
 3. Retail selling. 
 
 4. Record keeping. 
 
 5. Organization. 
 
 6. Credit. 
 
 7. The product. 
 
 8. Psychology. 
 
 9. Voice and expression, 
 
 10. Hygiene and health on the Foad. 
 
 An analysis of the above ten subjects for general study 
 at a school for selling will make clear the breadth of 
 knowledge which a modern salesman requires and which 
 really almost compels the existence of a sales school if 
 the average run of salesmen are to be brought up to a 
 high grade of ability. Few average salesmen are thor- 
 oughly up to date on all of these subjects, even though 
 they have fairly good knowledge about them. Progress 
 has been so rapid in all of these branches of knowledge, 
 that the average situation, even among the better grade of 
 salesmen, is that they are not up to par. There is an 
 impression among salesmen that only the younger or be- 
 ginning kind of salesmen need a sales school. The best 
 practice is that every salesmen is assumed to need the
 
 SALES SCHOOL AND TRAINING METHODS 203 
 
 school training, and one of the best methods of treatment 
 of a school is to have the officers of the company them- 
 selves set an example by taking the course at such a school, 
 in order to demonstrate that it is a mere matter of routine 
 for bringing everybody up to date, and that it is far from 
 an admission of weakness to take such a course. 
 
 The general paraphernalia to be used in a school has 
 also some importance. The National Cash Register Com- 
 pany has made famous its system of charts for the walls 
 of the school, so that every important point that is to be 
 made is put in graphic form on the wall so that it can be 
 imbibed through more than one of the five senses. A 
 graphic chart, especially if it shows forms, diagrams and 
 pictures, is immensely valuable. The stereopticon is also 
 valuable for just this purpose. The National Cash Reg- 
 ister Company has also advanced this theory to the high- 
 est degree by placing before salesmen an actual replica 
 of a grocery store, and going through an actual sale in 
 this store upon a stage with actors. 
 
 As for the time in which a proper curriculum can be 
 covered, this varies of course with the nature of the busi- 
 ness and its complicated features. From four to six weeks, 
 however, is universally regarded as a sensible length of 
 time. 
 
 151. Examinations and Certificates of Passage. — In 
 schools where a number of subjects such as are listed above 
 are covered, it is usually the best policy to have examina- 
 tions immediately following the conclusion of the study 
 of this branch. The examination is conducted in usual 
 school fashion, in the form of a combination of questions 
 testing memory, and also a thesis which will record the 
 mental grasp of the pupil on the subject in general. 
 
 The pupil who fails to achieve a certain percentage — 
 say 75% — is obliged in the best schools to go over that 
 branch again as a special duty without stopping the study
 
 204 MODERN SALESIVIANAGEMENT 
 
 on the course which is to follow, until he has caught up and 
 increased his standing. It is well to point out, however, 
 that the percentages attained by students are not wisely 
 used in determining the status of the candidate in his 
 ability as a salesman. Experience has uncovered the fact 
 that many who make fair or average percentages in ex- 
 aminations are ofttimes better salesmen than those who 
 make high marks. An examination percentage must be 
 regarded merely as one indicator of ability. 
 
 As for certificates of passage, a diploma seems to be not 
 altogether in favor, but a card for passage is usually fur- 
 nished.
 
 CHAPTER XIX 
 
 SALES STRATEGY 
 
 152. The Right Definition of Selling Strategy.— There is 
 a vagueness about the term "strategy" which makes for 
 lack of appreciation of it on the one hand, and an over- 
 rating of it on the other hand. It isn't craftiness or 
 cunning in any illegitimate sense; it is a logical and 
 necessary tool for working with selling factors as they 
 exist. Properly and correctly defined from the dictionary, 
 it is the use of finesse to accomplish an object; and the 
 use of finesse is, after all, but an artful use of the factors 
 of human nature, circumstance and place. 
 
 Sales matters very frequently indeed "turn upon hairs." 
 Moods, manners, events, states of mind, weather, vanities, 
 passions and instincts all make up the mass of resistance, 
 which must be influenced and moulded, in dealers, job- 
 bers and consumers, for to such an extent is selling a 
 matter of intangibles. Not only conscious resistance but 
 unconscious resistance is met with; much of it so strong 
 and stubborn that it would be fatal folly to endeavor to 
 make a direct frontal attack. It would no more be suc- 
 cessful than endeavoring to sail a boat "in the teeth of 
 the wind." Tacking is merely practical, necessary nauti- 
 cal strategy; similarly many sales campaigns must be zig- 
 zagged to success with strategy. 
 
 Thus the term strategy as here used denotes all those 
 very real factors in selling which are diploraatical, politi- 
 Qal, psychological, and which call for experience in life, 
 
 205
 
 206 MODERN SALESMANAGEMENT 
 
 affairs, human nature, basic economic laws, averages, prob- 
 abilities, patience, offensives and defensives, circumlocu- 
 tions and analytical foresight. 
 
 153. The Various Kinds of Strategy. — First of all, there 
 is a broad and a narrow conception of strategy. There are 
 many people in business who use a very narrow conception 
 of strategy, more on the order of expediency than broad 
 strategy. 
 
 An example of the use of broad strategy is the case of 
 the Standard Sanitary Mfg. Company. When that com- 
 pany made up its mind to sell America a large volume 
 of bath tubs in the face of a slow market a decade or two 
 ago, there were a great number of plumbers in the busi- 
 ness who couldn't even install a bath tub. They knew 
 nothing of modern plumbing sanitation science. Plumb- 
 ing as understood nowadays is a rather complicated engi- 
 neering proposition, but this evolution did not take place 
 until the Standard Sanitary Mfg. Company had spent 
 hundreds of thousands of dollars to educate plumbers 
 in a course of instruction delivered by mail. An edu- 
 cational campaign for higher technical standards among 
 plumbers was a great success. The result was that they 
 were able to sell bath tubs and bath fixtures in the right 
 manner and develop a large market for their product. 
 That was broad strategy; an example of looking ahead 
 many years ; something which has brought permanent divi- 
 dends to the company. 
 
 Narrow strategy, on the other hand, deals with some- 
 thing that will be of advantage to-morrow rather than 
 fifteen years from now. One might call the two kinds 
 long time and short time strategy. The short time strategy 
 is careless of basic conditions, operates on the surface 
 and with little information or principle or policy. If one 
 is out for profit now at the expense of the future, or if 
 one has no care for the cultivation work needing to be
 
 SALES STRATEGY 207 
 
 done to-day in order that larger business is to be reaped 
 to-morrow, long time strategy is of no interest. 
 
 The more technical classifications of the different varie- 
 ties of strategic policies or tools available are : 
 
 1. Strong direct action. 
 
 2. Indirect action. 
 
 3. Secret action. 
 
 4. Complicated series of moves. 
 
 5. Confusing or feint moves. 
 
 6. Wedge action. 
 
 7. Defensive action. 
 
 8. Educational strategy, 
 
 9. Time annihilation strategy. 
 
 10. Good-will strategy, 
 
 11. Distribution strategy. 
 
 12. Domination strategy. 
 
 13. Caveat strategy, 
 
 154. Direct Action or "Offensive" Strategfy. — The most sim- 
 pie form of effort against an opposing force is mass num- 
 bers, and brute force. It is of very great strategic value 
 at times. Here is an example: Years ago Hood's Sarsa- 
 parilla was caught in a peculiar situation. A small com- 
 petitor had discovered a sales plan which was "burning 
 up the country" with success, and the Hood concern won- 
 dered how they should meet the situation. The line of 
 strategy finally decided upon was to take the plan right 
 from that small competitor's hands. The plan the com- 
 petitor used wasn't a patented plan of any sort, but merely 
 a good piece of strategy. The Hood people didn't allow 
 it to get very old. The moment they decided it was good 
 they took that piece of strategy right out of the hands of 
 the small comp..titor and developed it. They improved it, 
 enforced it, featured it, and used all their force behind it, 
 and did in a big way what the small competitor could do
 
 208 MODERN SALESMANAGEMENT 
 
 ouly in his small way. They got all the credit and most of 
 the advantages. Another name for this type of strategy 
 might be an offensive strategy, as opposed to defensive 
 strategy'. 
 
 More simple examples are merely those of operating a 
 campaign with especial vim and emphasis, so as to give 
 it added zest and momentum. A thing done with vigor 
 develops an atmosphere of success and confidence ; inspires 
 wholesome respect in opponents and often lends a magic 
 which to some extent paralyzes opposition. Motion has a 
 certain degree of hypnotism in it ; the springing tiger, the 
 racing horse, the athlete in action all have fascination in 
 their very intensity of purpose and will. The presence of 
 strong dynamic will tends to make everything surrounding 
 it static and passsive. An exceedingly positive man tends 
 to turn the minds about him into a negative mood. Offen- 
 sive strategy during the recent war has demonstrated how 
 vital "morale" is in an offensive. 
 
 So in a sales campaign, strategy is vital even in com- 
 mon direct action. Defects in this strategy betray fatal 
 initial weakness, 
 
 155. Indirect Strategy. — This kind of strategy is fitted 
 to selling like a glove to a hand, because sales objectives 
 can rarely be accomplished by mere direct action. (If they 
 could, there would be many more millionaires, and sales 
 brains would not be worth good-sized salaries.) Goods do 
 not sell by direct action, or they would practically sell 
 themselves. Markets must always be wooed and won. 
 
 Indirect strategy means moves that are altogether round- 
 about. Searches must be made for the ''key log" in the 
 jam of resistance to wider sales, and pressure must be 
 exerted at strategic points. There are many interesting 
 examples. The Standard Oil Company sells oil lamps and 
 until recent years oil stoves. It is not a paying business 
 in itself, but by such indirect strategy they are creating
 
 SALES STRATEGY 209 
 
 a greater consumption of oil. They couldn't permit lamps 
 of perhaps doubtful utility to be the only ones available, 
 because that would hurt the sale of oil; but by indirect 
 action of providing suitable lamps they push up the sale 
 of oil — even in the wilds of China, 
 
 The Globe - Wernicke Company is another example 
 The sale of book-cases depends upon the desire on the part 
 of the people to read and the practice of having books in 
 the home. It was obvious that if Globe-Wernicke could 
 develop a greater desire for books in the home, they would 
 sell more book-cases; so they started an interesting cam- 
 paign and got out very handsome literature on choosing 
 books, in which they told of the good books which ought to 
 be in your home, and didn't even mention book-cases. 
 Many thousand book-cases were sold in this way. 
 
 The fact of the matter is that the psychology of the 
 public is such that the effect of direct action frequently 
 would be antagonistic. Indirect action is the more natural 
 action, because life itself is more or less indirect in shaping 
 things. For example, the man who fishes directly for a 
 dinner invitation usually doesn't get it. The most ener- 
 getic effort frequently counts for naught, while a gentle 
 or merely suggestive action secures great response. 
 
 It is one of the first principles of study of life and 
 human nature that it is a waste of effort and worse to 
 be too direct. People are willing to be led and to be 
 taught if it is not made too obvious; they are willing to 
 grant superior wisdom if the fact isn't held in front of 
 their eyes. Direct opposition merely arouses stubborn- 
 ness and vindictiveness. It is both foolish and unneces- 
 sary to run counter to the prejudices and habits of peo- 
 ple — to say nothing of being ruinously expensive — to try 
 to influence them in that manner, even granting it might 
 eventually be accomplished. The good strategist, diplo- 
 matist^ always searches for the more graceful time, temper
 
 210 MODERN SALESMANAGEMENT 
 
 and pride-saving method — the indirect methods. In but few 
 instances do such indirect methods not exist. If the dealer 
 or the public won't buy your goods, there's a reason; find 
 it and remedy it directly, or get around it indirectly. 
 
 156. Secret Action Strategy. — This is a plain practical 
 necessity under certain conditions. It simply means the 
 preparation under cover for a move whose object would 
 be frustrated by publicity. Usually this means desire to 
 surprise competition by arriving first at a new goal. It 
 is not an extensively useful kind of strategy in these days 
 of welcome of publicity, and of public reports and the 
 open door to customers. Too much secrecy has character- 
 ized business as sinister in the past, and for no real pur- 
 pose or gain. Premature disclosure is, of course, unde- 
 sirable, and secret action has its definite, practical part to 
 play. To "steal a march" on an opponent will always 
 remain good strategy, 
 
 157. Complicated Series Strategy. — Events, circumstances 
 and people have a strategy of their own, simply in their 
 reaction upon one another over a period of time of ebb 
 and flow and evolution. Shrewd business forecasters, stu- 
 dents of fundamental conditions, and speculators in mar- 
 kets are strategists in this sense, that they endeavor to 
 work out a connected chain or series of inter-related fac- 
 tors of cause and effect and anticipate a final result. 
 
 The sales strategist differs from these in this important 
 aspect — that he studies a complicated series of factors, but 
 initiates moves with the view of having the resulting events 
 come out as he desires them. The salesmanagers for the 
 linen collar, safety razor or ready-made clothes advertisers 
 who laid long-time plans to change the daily habits and 
 psychology of American men, were business analysts with 
 a faculty for complicated series strategy, or else had mere 
 blind faith. 
 
 There are business men who are Fochs and Von Moltkes
 
 SALES STRATEGY 211 
 
 in business strategy. Their minds are like a champion 
 chess player's. They can see many removes beyond the 
 immediate. There were those who could see the future of 
 the steel business, who saw, as IMorgan did, the develop- 
 ment of the mechanical industries, the development of the 
 by-products industries, the development of general manu- 
 facturing and its call for automatic machinery, and all 
 the other things which foreshadowed the great develop- 
 ment of the steel industry. The Morgan-Schwab con- 
 structive type of mind, gifted with ability to see the com- 
 plicated moves ahead, could easily see a 50,000,000-ton an- 
 nual volume of steel (a prediction which Schwab made in 
 1903 or lOOi and was laughed at), but Morgan and Schwab 
 saw the moves ahead and proved they were the real strate- 
 gists in the steel business by preparing for the market 
 they foresaw. 
 
 In selling there are so many fine-cut factors, such ap- 
 parently unexpected developments, delicate considerations, 
 variable conditions and seemingly invisible elements that a 
 salesmanager who has a really difficult proposition needs 
 to have in himself or in counsel a mind capable of work- 
 ing out future development through the complicated series 
 type of strategy. 
 
 158. Confusing or "Feint" Strategy. — This is a branch of 
 secret action strategy, with the added factor of endeavor- 
 ing to make the opponent guess wrongly. It is of use 
 mainly in tight competitive situations, for of course neither 
 confusion nor misleading plans are part of any honest 
 modern firm's policies with distributors or consumer. It 
 is good business to keep a competitor "guessing" in one 
 way or another, and it is not hard to accomplish, since 
 it is human nature for average competitors in business to 
 ascribe inflated and sinister motives to each other, and to 
 be credulous as to each other's plans to circumvent each 
 other.
 
 212 MODERN S^VLESMANAGEMENT 
 
 It is also legitimate to permit to grow unmolested an 
 erroneous impression which a competitor has developed as 
 to a firm's real purpose or goal or plan or basis of opera- 
 tion. Similarly it is good business to endeavor to keep a 
 competitor's attention away from the weaknesses, if any, 
 of a firm's goods, organization, territory or plan. If the 
 false impression as to these matters can be strengthened 
 by a "feint" it is also good business. 
 
 There is one kind of ''confusing strategy" to which I 
 should not hesitate to give the stamp of legitimacy — 
 whether used on the consuming public or on a narrower 
 audience. It might be called a strategy of name. A name 
 or phrase often damns a thing prematurely and unfairly, 
 or at least creates a fatal opening prejudice. A so-called 
 lard or butter "substitute" suffers from the implication 
 of inferiority to that which it displaces; it is far better 
 strategy to give the article a special individual name and 
 avoid the substitute thought. Similarly it was good name 
 strategy for Calox tooth powder to call its sample a "child's 
 size" instead of the repellant name sample. The example 
 of Van Camp's Evaporated Milk, in making capital out 
 of the prejudice against a certain burnt taste common to 
 all such products, by calling it "that burnt almond taste" 
 was good strategy, though conscientious regard for truth 
 must be kept foremost in all such strategy. "When a weak 
 point exists it is good strategy to distract attention from 
 it by emphasis upon the strong points. 
 
 159. Wedge Action Strategy. — To effect entry way, a thin 
 edge is always most efScient. One man or one article can 
 go through opposition more easily than a number. This 
 applies to the strategy of selling a "family" of articles, 
 and illustrates a very valuable principle of merchandising. 
 
 Take, for instance, a concern like Hammacher-Schlem- 
 mer Hardware Company, which features home tools, or any 
 other concern which singles out some popular product to
 
 SALES STRATEGY 213 
 
 feature and push, and lets everything else in the line fall 
 behind it. The National Biscuit Company put forward the 
 Uneeda Biscuit as a wedge and then forced an entire line 
 of goods behind the Uneeda wedge. The Loose-AYiles Com- 
 pany, its competitor, saw the futility of any action which 
 would aim to parallel what had been done with the Uneeda 
 Biscuit. If they had taken their Sunshine biscuit and tried 
 to drive through an entire line in the same way they would 
 have failed. It would not have achieved the result desired 
 because the surprise-value was gone. They pushed, in- 
 stead, a whole line of higher-priced, higher-quality spe- 
 cialties not featured by the National, and let the Sunshine 
 biscuit follow along. Their strategy was directly contrary 
 to that taken by the National Biscuit Company, but 
 equally sound. 
 
 The human mind is so constituted that it cannot imagine 
 clearly a numerous line of products. It cannot conceive 
 more than one or two things at one time. Therefore, a 
 wedge strategy in selling is sound, with reasonable varia- 
 tions and exceptions. 
 
 160. Defensive Strate^. — It is often just as good strat- 
 egy to "sit tight" and do nothing as to act. It is also 
 excellent strategy many times to make no reply to critics, 
 no reply to attacks, and to permit an opponent to spend 
 his strength. Of course, as Foch has said in military mat- 
 ters, the offensive is preferable to the defensive, but a de- 
 fensive strategy may nevertheless be best at times. The 
 success of defensive strategy turns upon watchfulness, 
 coolness and receiving an offensive in the most prepared 
 way possible — that preparedness including preparation for 
 defeat. 
 
 A salesmanager may find himself in a more or less per- 
 manent position of compulsion to maintain a defensive be- 
 cause of certain legal, competitive, inherent or special con- 
 ditions. All his plans and further strategy must in such
 
 214 MODERN SALESMANAGEMENT 
 
 cases be grouped about the central strategy of a defensive. 
 All sales effort must in such cases have an underlying 
 motif of defense; and future goals and plans built on that 
 foundation. 
 
 In the ordinary course of normal business, however, a 
 defensive may be merely a temporary strategic attitude, 
 made advisable by the turn of events or of competition. 
 
 161. Educational Strategy. — Wise analysis of a market- 
 ing situation more frequently than not discloses that the 
 article must go through a process of growing up with a 
 new generation, who will make it a part of its every-day 
 life. If not this extreme of slow development, then at least 
 a period of five or ten years of gradual education of the 
 public to the real value of the article. The first reaction 
 of a public to a new thing is invariably that of antag- 
 onism or distrust or disinterest, even of fear. The only 
 hope of making the article welcome and desired is to 
 achieve familiarity not only with its name but with its 
 advantage. Some articles have a better start than others 
 in the fact that their advantages are much more obvious 
 or else appeal successfully to stronger desires. The edu- 
 cational period necessarily differs, therefore, between ar- 
 ticles; it is actuall}^ possible to measure this difference 
 fairly accurately. 
 
 The educational line of strategy is a simple one then, of 
 coolly preparing for "sending the public to school" on the 
 question, and watch it pass from the primary grade up- 
 ward until it reaches a more or less fully educated stage, 
 when large volume is possible. A significant thing about 
 the educational strategy, however, is that it is never fin- 
 ished because of the millions of human beings dying and 
 growing up every year. An article that requires educa- 
 tional work requires it all the time, as a permanent polic5\ 
 All the principles and methods in the old science of peda-
 
 SALES STKATEGY 215 
 
 gogy, the profession of teaching, apply and can be adapted 
 and used in this educational work. 
 
 Educational strategy is in a sense an underlying strategy 
 for almost every selling proposition, and must to some de- 
 gree, therefore, be used and applied even when it is not 
 the leading or dominant strategic note. All selling is in 
 essence an educative process. 
 
 162. Time Annihilation Strategy. — Quite the opposite of 
 the slow educational strategy is the strategy of applying 
 every energy and skill to accomplishing the greatest amount 
 in the smallest possible time. This strategy may be de- 
 sirable for any one of a number of reasons, such as: 
 
 1. A desire to ** unload" a specific model or quantity 
 of goods before a certain date for patent expiration; or 
 for other legal or competitive reasons. 
 
 2. A desire to attain leadership by the quick rather 
 than by the slow method. 
 
 3. A desire to secure a psychological advantage of swift 
 strokes, whether for competitive or other reasons. 
 
 Time may actually be ''annihilated" in the selling sense 
 by means of well-conceived and well-executed strategy of 
 this kind. Five years' normal accomplishment may be at- 
 tained in one year, and at perhaps half the cost. For this 
 reason the modern rate of speed of growth is highly ac- 
 celerated. Slow face growth is now supplanted by the 
 contrary policy. The aim of this strategy is to put the 
 public and the distributors through the processes of mind 
 that would ordinarily take five years in one — which means 
 the same as rushing a pupil through the grades in school, 
 and has the same dangers. It is an extremely delicate 
 operation and usually fails in any but very careful hands. 
 Speed is, in selling as in railroading and everything else. 
 a magic thing when successful, but the faster the speed the 
 more easily the whole train is wrecked. 
 
 Many situations call for and invite pretty spee<iy work.
 
 216 MODERN SALESIMANAGEMENT 
 
 and to a certain extent time annihilation is a generally 
 good business policy. The stage coach manner of business 
 development is as passe as the stage coach in transporta- 
 tion. There is no reason why a business to-day should 
 covet the centuries or generations of past history boasted 
 of by some concerns ; splendid business reputations can be 
 developed in a few years, and great sales organizations 
 achieved in a short time. The magic of rapid factory 
 erection and rapidity of manufacturing production on a 
 large scale have produced an actual demand on selling 
 genius that large volume of trade and large sales organiza- 
 tion be achieved with equal rapidity. Otherwise selling 
 could not keep pace with mechanical inventive genius. 
 After-war conditions calling for very rapid displacement 
 of commercial orders for war orders, and new markets for 
 new factory capacity also call for such ability to annihi- 
 late time. 
 
 The sales strategy which annihilates time necessarily uses 
 the printed page very extensively, the printing press being 
 in itself a great annihilator of time. It also uses planning 
 and system to a large degree, almost with a military pre- 
 cision and discipline. The greatest time annihilating cam- 
 paign in history is, of course, the stupendous American 
 preparation for war. After that successful demonstration 
 time annihilation work should be familiar to American 
 brains, and a thoroughly certified policy. 
 
 163. Goodwill Strategy. — There are a number of situa- 
 tions which call mainly for the largest possible amount of 
 public good -will. Actual sales are secondary; public atti- 
 tude is all-important. Public service corporations are in- 
 variably in this condition, but manufacturing firms often 
 also need this line of strategy more than any other. During 
 the time of Sherman anti-trust law prosecutions this was 
 a necessary line of defense against a general frenzy of 
 antagonism to large corporations. At all times, large cor-
 
 SALES STRATEGY 217 
 
 porations who have a dominant position in an industry or 
 have other precarious political considerations to meet, find 
 good-will development in their service, their advertising 
 and even in labor relationships a sound policy. Good" 
 will strategy is one of wide and deep ramifications. 
 
 There is another purpose for which good-will strategy 
 is sometimes used for a very practical purpose — to heighten 
 the sales valuation of a concern, preliminary to selling out. 
 A concern which has never advertised to dealers or public 
 may actually add 33 1-3% to its valuation by a year oi 
 two of capable good-will development of a highly eon^ 
 centrated kind, as an article known to its ultimate con-" 
 sumers is worth more than an article unknown. The same 
 is true as a preparation for expansion or readjustment. 
 
 164. Distribution Strategy. — As distribution conditions 
 are often the main element of resistance toward greater 
 expansion and development, it frequently becomes advis- 
 able to reexamine and readjust the distribution policy. 
 The broad strategic position of an article or a firm or an 
 industry determines the strategic policy to be pursued. 
 It is very important that the exact strategic position be 
 known and understood, as failure to visualize the position 
 from a strategic viewpoint and on a broad enough scale 
 is the chief difficulty in the way of wider growth of many 
 concerns. Or, if the strategic situation is recognized, there 
 is lack of courage and decision in formulating a strategic 
 policy and carrying it out consistently. 
 
 Such a strategy might be that of giving the distributors 
 an exceptionally large margin of profit, or of ignoring the 
 jobber and concentrating on direct selling; or of rigidly 
 adhering to the jobber, or of "straddling" diplomatically 
 on a definite plan ; or of reducing the margins to jobbers, 
 or of developing an exclusive wholesale agency policy, or 
 of utilizing exclusive dealers in small towns and "broad- 
 ^,asting" in the cities, or of eliminating quantity discounts,
 
 218 MODERN SALESIMANAGEMENT 
 
 or establishing arbitrary definitions for jobbing classifica- 
 tions, or of making price zones, or equalizing prices na- 
 tionally. Tliere is even a special strategy in "getting 
 over" a piece of distribution strategy. 
 
 These, and many others are distribution strategics, all 
 demanding careful, disinterested investigation first and 
 clear-headed planning and cool and firm application. 
 
 Conditions constantly change, form and crystallize 
 around a firm, and only thorough analysis and sure-footed 
 action can save a firm from suffering from lack of a 
 strategic policy. No mere dependence on "hammering 
 along the old lines" or "patiently plugging away" will 
 fit the modern swift-moving pace. 
 
 165. Lomination Strategy.- — In business, as everywhere 
 else, there constantly operates the competition of good- 
 will, service, standing and public psychology. It is, of 
 course, a highly valuable thing to "dominate" a field — ■ 
 using the term not in an autocratic sense, but in a psycho- 
 logic sense. 
 
 Domination is a peculiar thing. It is a bit of psychology 
 which has perhaps more to do with big sales success than 
 anything else. Human nature being what it is, people like 
 to deal with the successful. They figure that if they are 
 going to buy, they would prefer to buy of the firm most 
 prominent and successful. That is a very difficult thing 
 for a "second fiddle" sales force to meet. Nothing so 
 depresses a sales force as the fact that its competitor 
 dominates the field and it is representing only a "second 
 fiddle." But it is the trend of the times that a "second 
 fiddle" may become the "first fiddle," brought about by 
 careful lines of strategj^ laid and carried out in a thorough 
 manner. So, whether you are first or second, you need 
 strategy more than you need anything else. If you are 
 fortunate enough to dominate the field, there is usually 
 another concern very close to you, and your job is to main-
 
 SALES STRATEGY 219 
 
 tain dominance. One big new development may put you 
 second in the field. There are striking examples of con- 
 cerns which have for years dominated, hut who are now 
 being crowded very hard by young firms. Hart, Schaffner 
 & IMarx Company overthrew the domination of the old 
 leader in men's clothing. Several young oil companies 
 are crowding the Standard Oil. 
 
 A well-laid strategy of domination does not mean op- 
 pression for competitors, or cut-throat competition, as it 
 meant in the old days of "predatory business" — to-day it 
 means dominating by service, brains, good-will and ability 
 to keep the customer believing — by giving him good rea- 
 sons to believe — that you are dominant in the manner he 
 likes. 
 
 166. "Caveat" Strategy.— " Being there first" is always 
 an important selling strategy. This is so important a busi- 
 ness truth that nowadays patents, trademarks and general 
 business advantages and rights are hinged largely on the 
 public conception of who is first rather than upon who has 
 the formal legal protection. Even a trademark's rights 
 in the legal sense are based, not upon registration at Wash- 
 ington, but upon "priority of use" — that is, who iised it 
 first, regardless of who registered it first. This is inher- 
 ently a public sense of fair play, and as such is an impor- 
 tant item in sales strategy. Patents may be dubious or 
 even unobtainable for an interesting idea, but if you can 
 fix your prior connection with it in the mind of the pub- 
 lic, you have practically "filed a caveat" with the public 
 which holds good as long as you defend your claim to it. 
 
 A good instance is the Thermos bottle. Before it was 
 put on the market it was recognized that it was not pos- 
 sible to protect it basically by patents. The vacuum is a 
 principle open to all inventors. It was quite certain that 
 dozens of other companies would jump into the field the 
 minute Thermos was a success. The strategic thing before
 
 220 MODERN SALESMANAGEMENT 
 
 the president of that company was to figure out the best 
 means of protecting good -will at the start. He "filed a 
 caveat with the public" instead of the patent office. He 
 meant by this, getting to the public first through adver- 
 tising. 
 
 When you start selling, the very first piece of strategy 
 to be accomplished is to get your special arguments thor- 
 oughly associated with your name. Then, when competi- 
 tors tag along after you, they will look like * ' also rans. ' '
 
 CHAPTER XX 
 
 THE SERVICE PRINCIPLE IN SELLING 
 
 167. Service as the Central Keynote in Sales Building. — 
 Under modern plans and knowledge of selling, it is no 
 great accomplislunent to make sales ance. The important 
 part of salesmanagement is to keep sales going and grow- 
 ing. This is only possible through regular, satisfied cus- 
 tomers — "consumer acceptance" as it is now called. This 
 is possible only when service is made more important than 
 the sale itself; when the state of mind of the customer 
 and the value he gets out of his purchase are made para- 
 mount in the sales plan. 
 
 Much is said about service, but too much is often boast 
 and mere language. The public in general, having grad- 
 ually been educated in service, is becoming more and more 
 discriminating, and visits its prejudice and hostility upon 
 the mere braggarts of service. 
 
 Service rendering means more than an intention or an 
 abstract principle subscribed to. To carry out sound serv- 
 ice policies is a technique of considerable detail and diffi- 
 culty. It is very easy to fall into laxities and inconsist- 
 encies and an extremely hard piece of organization work 
 to carry service principles through to ultimate users down 
 the line of a large organization. This technique of service 
 depends on a number of policies which are herewith out- 
 lined in detail. Elsewhere in this book mention is made 
 of the fact that to-day the public desires almost as much 
 service in connection with its merchandise as it wants 
 
 221
 
 222 MODERN SALESMANAGEMENT 
 
 merchandise. As one firm has put it, "we sell 50% mer- 
 chandise and 50% service." There is a sane limit, of 
 course, in merging service with merchandise, and the war 
 has deflated much over-pretension in this respect ; but serv- 
 ice cannot possibly be weaned from merchandise — the pub- 
 lic wants it in at least a 33 1-3% ratio. 
 
 168. Goods Must Render the Service the Customer Expects 
 of Them. — The modern principle of business ethics is that 
 the other party to the transaction must receive benefit and 
 must have plenty of reasonable cause to be satisfied. In 
 other words, the advantages of the transaction must be 
 mutual. This is a feeling which is revising the whole busi- 
 ness life of the country — that the spirit of a transaction 
 must be a mutual spirit, rather than what is known as 
 "caveat emptor" ("let the buyer beware"). The cus- 
 tomer's expectation is a very highly important part of 
 modem sales and advertising, for it is easy to sell once 
 by raising extravagant expectations, but not so easy to sell 
 twice. For most propositions profit is never made on the 
 first sale — only on the second and succeeding sales. It is 
 a wonderful good-will maker if the buyer's realization ac- 
 tually exceeds expectation. 
 
 169. Service Should Be Rendered Spontaneously. — This 
 means that we should render our service, not in the spirit 
 of "we will go as far as we must," but with that larger 
 point of view which is always the finest point of view — 
 "we will go the whole way in service." The conservative 
 safeguards which are really necessary can be applied with- 
 out destroying this policy, or without making it seem re- 
 luctant or half-hearted. It is very important that a service 
 policy be made inviting and liberal, so that a customer 
 may feel like using it without seeming to ask for more 
 than he is entitled to. The fact of the matter is that 
 modern people hate doing business on the tight principle 
 —they hate to heckle and demand — they far prefer to do
 
 THE SERVICE PRINCIPLE IN SELLING 223 
 
 business in a very liberal atmosphere of trust and guar- 
 antee. 
 
 The very best proof of this is that Sears, Roebuck & 
 Co. — not many years old, but now doing over a hundred 
 million dollar a year business — was founded on nothing 
 else whatever but this idea of people's preference for the 
 liberal atmosphere. Mr. Sears had no capital except this 
 idea, which was almost absolutely new in merchandise at 
 that time, especially to rural folk. Complete and liberal 
 guarantee of service with the merchandise is still the chief 
 feature of this house, and has been its best advertisement 
 from the time of Mr. Sears' famous encounter, early in his 
 career, with the street car conductor, who had by accident 
 smashed a watch he had bought, but to his astonishment 
 got a new one without complaint. Of course, that con- 
 ductor became a living advertisement for Mr. Sears — who 
 had never before bought such cheap advertising! It pays 
 to go the whole way in service if one takes care to do it 
 spontaneously. 
 
 170. Promises Should Be TJnconditionally Made Good. — 
 Many concerns fall down here. They "hedge" on tech' 
 niealities. Their promises are conditioned by reservations 
 which the buyer only finds out when he tests the promise. 
 It is absolutely deadly to hedge in this manner, or to make 
 the fulfillment of the promise a hardship or annoyance in 
 any way to the consumer. A big business man in New 
 York bought some collars at a good store which adver- 
 tises a liberal policy. He found the size not exactly right. 
 He took them back unused, explained and asked for his 
 money back. The clerk replied, after listening, "Well, 
 you'll have to see Mr. Number Two," and he had to ex- 
 plain all over again. Mr. Number Two then said, ' ' We will 
 have to see Mr. Number Three." He waited a consider- 
 able time to see that Mr. Number Three. His time being 
 very valuable, he gave it up — and he also gave up that
 
 224 MODERN SALESMANAGEMENT 
 
 store, which could have afforded to stop its whole ma- 
 chinery for a day rather than lose this man's trade. 
 
 People do not like protestations of liberality, which, 
 when put to the test, mean annoyance and red-tape and 
 unexpected delay and lack of the same enthusiasm and 
 interest as when the sale was made. We are buying not 
 merchandise but merchandise plus service. Indeed, it 
 would often seem that we care more for the service than 
 the merchandise ! At least, it makes a more vital impres- 
 sion on us, for it has to do with our sensitive hwmin nature, 
 and that is a factor which service, policy and good-will 
 have generally to deal with. "We may have worked out to 
 a fine degree a policy and plan for our selling, but we 
 may have left out that vital principle of the sensitive 
 human spirit with which we have to reckon. 
 
 Good-will, actually, is nothing else but your status with 
 the sens'tive human spirits from whom your trade must 
 come. Good-will is an evanescent, intangible thing, sim- 
 ply because it depends solely on this sensitive human spirit, 
 which is so easily effected and swayed and prejudiced. The 
 study of good-will is necessarily, therefore, a study of mass 
 psj^chology, and a study of bringing an organization to 
 efficiency in carrying out the full spirit of the serA'ice and 
 guarantee, down to every last factor in the organization. 
 
 One of the chief troubles nowadays with those who sell 
 through dealers and sub-agents or many lower-grade sales- 
 people, is that they are not able to carry intact the spirit 
 of their policy and service to the ultimate buyer. This 
 very reason is behind the complete taking over of all the 
 channels of distribution by many concerns, like the meat 
 packers, the typewriter concerns, etc. They could not sell 
 with any success whatever through a string of interme- 
 diaries as other products can — service is the whole thing. 
 It becomes deeply essential that both from a mechanical 
 point of view, in repairs and consultation, etc., that serv-
 
 THE SERVICE PRINCIPLE IN SELLING 225 
 
 ice be carried out in its full spirit to the end, without the 
 house being discredited by variations from the standard. 
 
 171. Service Should Be Without Risk or Convenience to 
 the Customer. — The principle of risk is very interesting in 
 this question of good- will policy; yet it is a principle few 
 have adequately studied. Here is an incident which will 
 illustrate it: A certain manufacturer of automobile head- 
 lights, who was selling them by mail, published an adver- 
 tisement in which he stated that if you sent $25, he 
 would ship his wonderful new invention. It was a very 
 good ad, but it did not pull well. After analysis, this 
 became apparent: Why should any one write out a check 
 for $25 for an unheard of invention and send it to an 
 unknown man, 1,000 miles away? That is against the 
 sound principles of risk. People do not care to take such 
 risk; what reason have they for taking it? 
 
 Study carefully this principle: the risk of purchasing 
 properly helongs upon the seller and not on the purchaser. 
 The buyer of merchandise, according to our modem prin- 
 ciples of risk, should assume no risk whatever in securing 
 and proving what is claimed for the goods. That is the 
 seller's proper sphere, for he alone knows the goods best, 
 and he is the aggressive party in the sale. It is up to him 
 to give the purchaser the freest and most open opportunity 
 to substantiate the advertised value and service before he 
 assumes any risk. 
 
 When the selling plan on that headlight was changed, 
 and the man advertised "Send me no money, but write 
 me on the letter-head of your firm and I will send you this 
 headlight for thirty daj's' trial on your machine, and if 
 you are satisfied send me your check; if not, I will pay 
 transportation both ways, ' ' he was successful. The risk was 
 thrown on him, where it belonged. There are many peo- 
 ple who stand aghast at such liberality, but selling to car 
 owners is gilt edge compared to other propositions. There
 
 226 MODERN SALESIVIANAGEMENT 
 
 are concerns who sell washing maclimes on credit to the 
 poorest type of Irish washerwoman, through advertising, 
 shipping the machine without a cent of deposit, yet the per- 
 centage of dishonesty is not more than one-half of one per 
 cent. Of course, there is a safeguard to the plan. They 
 do look up the woman through her grocer, but very few 
 are turned down. Experience shows that people of one 
 class are as honest as another class; also are as honest in 
 one part of the country as another, and that in any event 
 those who wish to beat you manage it in some way any- 
 how. In a sales proposition intelligently planned there 
 is rarely more than one-half of one per cent misuse of 
 liberality. 
 
 172. Service, to be Efficient, Should be Rendered Entirely 
 from the Point of View of the Customer. — A guarantee may 
 be perfectly meaningless and pointless. For instance, an 
 underwear manufacturer may guarantee his garment to last 
 "a year," whereas the cheapest and most inferior gar- 
 ment (unless the man is a dock laborer) usually lasts a 
 season. The ''year" does not mean anything. Such a 
 guarantee might much better be left off. When sized up 
 by critical customers it will show on its face that it is in- 
 tended merely to sound well to unthinking customers, and 
 not really for the protection of the seller. 
 
 The service policy should be engineered to forestall com- 
 plaints. Much service goes wrong, simply because it is 
 arbitrarily planned, without realizing that certain condi- 
 tions do or will arise, or that certain states of mind should 
 be anticipated, in either the language or application of the 
 policy. 
 
 Service rendered should be in the spirit of individual ac- 
 commodation. Service is always a joke when it is petti- 
 coated in red tape. It must serve, and to serve it must 
 judge each individual case and render individual service. 
 Nothing makes good-will as fast as this.
 
 THE SERVICE PRINCIPLE IN SELLING 227 
 
 Service should relieve the customer of physical effort. — 
 I have already told how peeved was a customer who had 
 to "stand around" to get the service due him. A warn- 
 ing against this is sufficient, perhaps. Selling, properly 
 viewed, is filling a customer's definite need — not selling 
 him because you want to — not overloading him v^dth some- 
 thing of doubtful use or value to him. It is not a legiti- 
 mate sale if he does not need what you sell him. This is a 
 principle more and more recognized, and many concerns 
 give standard instructions to a salesman that they are not 
 to overload anybody to whom they sell. A weak retailer 
 or customer with less experienced mentality, on whom the 
 salesman may call, is sometimes overpowered by a superior 
 mind and sales skill. It is Twt an ethical proposition to 
 make such a man huy. Any salesman or salesmanager who 
 boasts of "putting it over" on a man and making him buy 
 something which will mean a loss or an inconvenience or 
 being saddled with an inappropriate value, is a highbinder 
 salesman bound to get his due soon or late. 
 
 173. Service Should Provide Full Technical Informatiooi 
 and Advice. — We are now ready to consider the subject of 
 service through information and advice. Nearly all cus- 
 tomers represent a state of mind rather than a mind made 
 up. They are not even conscious of needs, frequently. In- 
 formation must waken them to their need and advice must 
 guide them in purchase. Now, in order that the customer 
 shall be able to make up his mind logically as to what he 
 needs, modern sales management provides an equipment to 
 salesmen that will enable them to advise and technically 
 inform the customer. It is an exceedingly important thing 
 for the salesman not only to know the merchandise from 
 the manufacturing point of view, but also from the usage 
 point of view. The buyer's interest in merchandise nat- 
 urally is not in how many and what processes it goes 
 through, except in relation to results he may enjoy from
 
 228 MODERN SALESIVIANAGEMENT 
 
 that merchandise — the service, in other words. The serv- 
 ice he may derive from its use — is the immediately im- 
 portant thing to the huyer, and he looks to the salesman 
 to know his subject in detail and scientifically. Nothing 
 is so irritating as to find a salesman just a salesman, and 
 not a guide and helper. 
 
 Ser^'ice should, if possible, anticipate the wants of the 
 patrons. There should be studious analysis of the kind of 
 service likely to prove helpful and welcome to customers. 
 
 174. Service Should Express Personal Relationship. — 
 Every human being, no matter how intelligent he may be, 
 wants personal attention. And personal attention may be, 
 and is oftentimes, the heart and soul of the service ren- 
 dered. That is so in the English and French retail shops 
 abroad, where the small places hold their own, for the sim- 
 ple reason that in the large stores, personal attention is 
 lacking. In the personal service idea, the small shops excel 
 beautifully. This principle can be carried into the selling 
 of anything, no matter how large the organization. Only 
 poor salesmauagement will prevent success in this, for in- 
 herently it is the cheapest sales ammunition there is. It 
 is true that purchasing has become a science — j^et, all sci- 
 entific things being equal, personal attention and personal 
 touch may tip the scales. And when I say "personal 
 touch," I do not mean "good fellowship." I would be the 
 last to return to the days when large sales forces had "offi- 
 cial souses" who managed the customers who liked "good 
 times." I mean personal touch which gives scrupulous 
 care to the customer's slightest special needs, to the pe- 
 culiar position he personally faces in his organization (oft- 
 times a difficult one, due to factions and unprogressive- 
 ness) to the peculiar nature of business, and to everything 
 else that individually makes that customer different from 
 other customers. 
 
 175. Service Should be Closely Defined and Definitely
 
 THE SERVICE PRINCIPLE IN SELLING 229 
 
 Stated. — Any service which deals in generalities is sure to 
 fail. Any good-will built upon generalities is sure to fade 
 like a puff of smoke, for generalities are as dangerous in 
 selling as dynamite. They explode and wreck things unex- 
 pectedly, aU because the generalities meant one thing to 
 seller and another to buyer. All selling is based on ap- 
 pealing to the imagination of the buyer. You first develop 
 in him an attractive picture of what he is going to get. 
 You ask for his money and render him back the picture of 
 value. In other words, you are operating on his expecta- 
 tions, and your picture that you give him must be so clear 
 that it doesn't fog up his mind so that when the fog lifts 
 he'll think he's been deceived. It is a most serious thing 
 for the customer to imply from words or picture or any- 
 thing not sufficiently specific that he's to get what he is 
 not going to get. Therefore, be very specifically definite, 
 be wholly inclusive. Clearly define the policy and service, 
 even under possible unpleasant contingencies, then there 
 can be little misunderstanding, and it is certainly not from 
 misunderstandings that good-will grows or sales mount in 
 volume.
 
 CHAPTER XXI 
 
 THE DEVELOPMENT OF GOOD-WILL 
 
 176. Definition of Good-Will. — English jurisprudence has 
 established a clear basis for the recognition of the factor 
 of good-will. It is unquestionably property, even if not 
 tangible property. To define it is naturally hard. Lord 
 Eldon, a great jurist, called it "a probability." Other 
 legal authorities have variously defined it as "advantage," 
 "favor," "advantage and benefit." Amplifying his defi- 
 nition, Lord Eldon said good-will is "nothing more than 
 the probability that the old customers will resort to 
 the old place." A significant statement about good-will, 
 even if it is not a definition, is that "many things enter 
 into the making of good-will, but just one thing may 
 blast it." 
 
 Good-will, of course, can attach itself to name or per- 
 son, to place, to goods, and its definition in any given case 
 must be tempered by the thing it has attached itself to. 
 Every advantage acquired by a firm in carrying on its 
 bxisiness is included properly in a definition of good-will. 
 
 177. The Nature of Good-Will. — Many large concerns 
 have capitalized good-will into common stock running into 
 many millions. But, good-will is not a tangible asset. 
 Good-will is an asset which is real, but volatile, like steam 
 or g£is. You must keep producing it all the time, and at 
 any minute it may all explode. Good-will is a thing sub- 
 ject to being here to-day and gone to-morrow. If any- 
 body tried to insure good-will at Lloyd's he'd be quoted a 
 pretty high rate. You can protect good-will, but you can 
 
 230
 
 THE DEVELOPMENT OF GOOD-WILL 231 
 
 never insure it. You can insure or borrow money on your 
 factory, but you can never take good-will to a banker and 
 borrow money on it — credit principles forbid it. 
 
 Why is this? Because control of the seller's good-will 
 is the only protection which the buying public holds for 
 itself. Withholding of good-will is the weapon which the 
 customer maintains against you. He gives it to you or 
 takes it back, according as you conduct yourself. Conse- 
 quently, any effort either to underestimate or overestimate 
 good-will is inadvisable. It must be judged like other as- 
 sets, because it is state of mind, not matter. Its develop- 
 ment is therefore as much an art as a science, and for this 
 reason the ordinary standards do not apply — it is a mat- 
 ter for special genius. The advertising idea is the one 
 most adapted to it and has been the most remarkably 
 successful with it, proving that good-will making can be 
 speeded up enormously by right methods. 
 
 178. Good-Will and Advertising Departments. — It may 
 well be repeated here that the salesman deals with the dif- 
 ferences ietween people, but the advantage man studies the 
 likenesses of people. The sales department knows how best 
 to create good-will in Tom Jones or some other individual ; 
 the advertising manager knows how to reach all the Joneses, 
 Smiths and Browns. The development of good-will in one 
 man is usually not the way to develop good-will in the mass, 
 and that is why the work of the advertising department can 
 be so helpful and of such economy to the sales force. It 
 lowers the -iiigh cost of mere leg work and heel cooling. 
 
 It is the peculiar function of the advertising department 
 to guide and develop all things in which the public and the 
 customer's good-will is involved. Whatever that may be 
 in any firm, it is the function of the advertising depart- 
 ment. The salesmanager should preside over the general 
 sales campaigning and relegate the personal work on cus- 
 tomers to technical special men under him, and give to the
 
 232 ]\IODERN SALESIMANAGEMENT 
 
 special care of the advertising manager the study of the 
 development of good-will, or the mass-minds of your cus- 
 tomers. Thus you can see how highly essential it is that 
 the advertising department be in the closest possible coun- 
 sel with the sales end, and that the sales end likewise take 
 counsel from the advertising department. A sales organi- 
 zation is to-day like a factory in its variety of technical 
 requirements, and must have specialists whose advice and 
 counsel is used. By the use of all the specialized technical 
 points of view sought and coordinated, the problems get 
 solved, without lamentable onesidedness or arrested de- 
 velopment due to one-track minds or one-horse policies 
 which could not appreciate the wide ramifications of good- 
 will. 
 
 One of the greatest business needs is for the good-will 
 of the average concern to be conserved, developed and 
 made broader. There are numberless perfunctory adver- 
 tising departments where this study of good-will develop- 
 ment is entirely neglected. Every wrapper on a package, 
 every delivery team, every messenger boy, every yard of 
 string with which the article is tied, every letterhead on 
 which the bills and letters are written, all carry their quota 
 of good-will possibilities and must be technically studied to 
 reach the maximum efficiency. 
 
 179. Indirect Developers of Good-Will. — Good-will can be 
 made to come from the most indirect and unrelated sources. 
 Henry Ford did not primarily have the idea of so greatly 
 advertising his plant by adopting his profit-sharing plans, 
 but he certainly has had an incalculable amount of ad- 
 vertising through it. When John Patterson, of the Na- 
 tional Cash Register Company, was under fire in the West 
 on account of his early business practices, and during the 
 time of his indictment used his gi'eat organizing ability to 
 do a big service to the people in their flood crisis, he de- 
 veloped a kind of good-will most valuable to him.
 
 THE DEVELOPMENT OF GOOD-WILL 233 
 
 In fact, it has come to such a point that interest in 
 public affairs by business men is a distinct developer of 
 good-will. In other words, the man in the community who 
 has the greatest amount of public interest in the general 
 ultimate prosperity of his community is actually develop- 
 ing the most good-will. Good-will is a natural result of a 
 broad-minded, thoroughly liberal and far-seeing disposition 
 in business men, business firms, and business policies. 
 
 180. Cooperation in the Development of Good-Will. — 
 Good-will is something which the advertising department 
 can develop only as fast as the sales organization is ready 
 to cooperate with it and intelligently carry it out. In many 
 concerns the advertising departments have plenty of prac- 
 tical ideas about good-will development, but it is impos- 
 sible to get the sales organization to help pull the load. It 
 is a very typical condition. The sales organization, set in 
 its way and still deluded that selling is as simple as it 
 used to be and consists chiefly of personal calls, and thereby 
 distinctly limiting the success of the business, is not able 
 to take advantage of modem tools of good-will building 
 and opportunities. Consequently, the greatest and best 
 means possible to bring together the advertising and sales 
 departments is advisable, so that their ideal of service and 
 good-will is similar, and so that both may carry out the 
 same principles. 
 
 181. Legal Protection of Good-Will. — It has been legally 
 termed stealing to take fraudulent advantage of another's 
 good-will, and the law of unfair competition, while not 
 covered by special statutes, is inherent in the body of 
 common law. In the past fifteen years it has received a 
 definite increasing recognition by the courts, and is in 
 process in America of reaching a very advanced stage. 
 The Federal Trade Commission is its special champion, 
 and the courts have interpreted cases before it with an 
 increasing regard for the principle, The great debate on
 
 234 MODERN SALESMANAGEMENT 
 
 price maintenance, which has been going on for a number 
 of years, is hinging now upon the principle of protection 
 of good-will, it being recognized that the average prac- 
 tice of price cutting is essentially an act of piracy upon 
 good-will. 
 
 It may fairly be relied upon that courts will maintain 
 the principle that acts injurious to the business reputation 
 of a firm will be regarded as a wrongful appropriation of 
 good-will. 
 
 It is a very wise policy to make a specific plan for good- 
 will development and to keep records of the evidences of 
 such good-will for use in legal protection. Such records 
 may be of great value in any legal controversy over the 
 value of the business. 
 
 182. Measurement of Good-Will. — This until recent years 
 was looked upon as an impossible task. But modern lab- 
 oratory psychology has made available test methods 
 whereby the good-will standing of a firm or a trade-mark 
 may be ascertained with considerable accuracy. The 
 method is to test the reactions df a sufficient number of 
 people, under controlled conditions, to secure so far as 
 possible an unconscious judgment of the relative impres- 
 sion made by the name or firm or goods. Careful statis- 
 tical tabulation of these results produces data which is sci- 
 entific and dependable. 
 
 The measurement of good-will is not alone valuable for 
 legal pui'poses, but has a very practical place in the anal- 
 ysis of status and policies for business purposes. Many 
 firms have an exaggerated idea of their prestige. In- 
 stead of opinion such measurement provides facts. By 
 making these tests locally, the strength of the firm in rela- 
 tion to advertising expenditure, or to competitive action 
 may be obtained. Correlation of such tests and compari- 
 sons with sales provide a check up on the accuracy of the 
 tests and on other factors.
 
 THE DEVELOPMENT OF GOOD-WILL 235 
 
 183. Appraising Good-Will. — In late years it has become 
 a frequent practice in law suits to call expert witnesses 
 to assist in establishing a valuation of good-will. The 
 author of this book has served as such an expert witness 
 in a number of cases. His counsel has also been sought in 
 appraisal of properties from a good-will point of view, 
 when disputes arose. 
 
 Good-will may be appraised like any other property, by 
 means either of measurement tests above described, or by 
 means of judgment and computation of the facts about 
 the business. In the United States Circuit Court the 
 ''going value" of a firm has been arbitrarily estimated on 
 principle by the court to be 10% of the "tangibles," 
 
 Any appraisal procedure is complicated, but to be sound 
 must be fully appreciative of facts concerning advertising 
 expenditure, standing, popularity and degree of informa- 
 tion possessed by the public. It is a development yet to 
 come in accounting when the factor of good-will is treated 
 in a standard way in statements. At present a variety of 
 methods are used ranging from entire elimination to in- 
 flation.
 
 CHAPTER XXII 
 
 SALES ADimNISTRATION AND BUDGETING 
 
 184. The Sales Department as an Administrative Proolemc 
 — In point of fact, a sales department has administrative 
 problems of as broad a scope, almost, as a separate business, 
 because of the wide range of activities and the opportunity 
 and demand for initiative. The administration of a sales 
 department is virtually the administration of the busi- 
 ness, because sales are the life of the business. The degree 
 of administrative vision and ability shown in the sales de- 
 partment is usually the degree of the alertness and aggres- 
 siveness of the entire business. 
 
 By administration, I do not mean the detail of organiza- 
 tion, but the general executive conception, plan, and opera- 
 tion of the sales department, in its broad lines of develop- 
 ment, in the balancing of men, policies, principles, and 
 methods and in the fixing of goals and the marshaling of 
 technical resources toward their accomplishment. In short, 
 salesmanagement leadership that does not become tangled 
 in detail, but masters it, and is as efficient in the adjust- 
 ment of plans to fit conditions as in the handling of men. 
 
 185. Administration Problems Defined. — The general ad- 
 ministrative problems of a salesmanager may be grouped 
 somewhat as follows : 
 
 1. To keep the article fitted to the market ; even also to 
 keep the market fitted to the production plans. 
 
 2. To secure and maintain the information, control- 
 records and lines of contact necessary to clear understand- 
 ing and shaping of policies. 
 
 236
 
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 m MODERN SALESMANAGEMENT 
 
 3. To construct policies and initiate campaigns which 
 wisely and strategically fit the situation, from the point 
 of view of public, distributors and the general conditions 
 of trade. 
 
 4. To construct and maintain an organization of men 
 capable of carrying out the policies and campaigns decided 
 upon; and stimulated constantly to do their best. 
 
 5. To work out and operate a sales financial budget 
 which will safely and soundly relate expenditure to re- 
 turns, and schedule and detail these expenditures and re- 
 turns on a business-like quota basis, with a view to in- 
 creasing the profit of the business. 
 
 6. To coordinate all efforts into a firmly knit whole, 
 with the highest striking power for sales, at lowest unit 
 cost. 
 
 7. To constantly reexamine, test, and review the admin- 
 istration by means of outside counsel, special surveys, and 
 technical investigation. 
 
 8. To keep the entire organization, as well as the owners 
 and higher executives "sold" on the correctness and effec- 
 tiveness of the administrative policies and plans; also to 
 avoid any tendency to take anything for granted or to 
 acquire set points of view or opinions or prejudices. 
 
 9. To make every possible effort to see into the future, 
 and be prepared in advance. 
 
 The above may be considered the real problems of sales- 
 administration, beside which all others are detail. Only 
 these problems should occupy the administrative head of a 
 sales department (whether he is salesmanager, vice-presi- 
 dent or president). These functions must be performed 
 if sales administration is not to lag and go awry. 
 
 186. The Sales Budget. — On this rock more salesmanagers 
 founder, in the final analysis, than on any other single ad- 
 ministrative problem. The term sales budget is not used 
 merely as indicating an accounting record, but as an analy-
 
 
 
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 240 MODERN SALESMANAGEMENT 
 
 sis of the financial aspect of sales effort and policy. Large 
 numbers of concerns are selling some or all of their goods 
 at a loss ; or are making their sales plans and sales budgets 
 without due regard for real facts and conditions and ulti- 
 mate results and contingencies. The natural optimism and 
 impatience with detailed reckoning which is characteristic 
 of the selling temperament leads many into these mistakes. 
 
 Even though the responsibility is in reality upon the 
 higher executives, modern salesmanagement is trained to 
 perform the task which the administrative departments 
 should more properly perform: — to work out in specific 
 figures the expectations of sale in given volume in a definite 
 period of time and calculate every operation of the busi- 
 ness upon logical lines of procedure, modulated to the sales 
 expectation. 
 
 A sales budget simply aims to set plans preferably for a 
 period of a year, or for a season, and tunes up the organi- 
 zation to that plan. It is best operated in connection with 
 a general business budget, covering the entire activities 
 and departments of the business ; but in the absence of such 
 a general budget it is feasible to operate one for the sales 
 department alone, pro"\dding to the production department 
 a factory production schedule, or otherwise fitting in with 
 a special production budget plan. 
 
 To argue that sales are so variable a factor that sales 
 activities cannot be budgeted is to ignore the technical 
 facts that budgets, when scientifically made, pro\'ide for 
 fluctuations and handle them with greater ease than when 
 there is no budget. A sales budget is the blue print of 
 the structure of orders it is proposed to rear, and is as 
 labor-saving a device in operating a sales campaign as it is 
 in building a house. It is well known that most houses 
 built are changed in some details from the blue prints while 
 the building is going on, but no one would deny on that 
 account the superior economy of having blue prints.
 
 SALES ADMINISTRATION 241 
 
 187. Tlie General Sales Quota. — Every effort should have 
 a specific goal for its object, otherwise it is partly aimless 
 and lacks the stimulus of a definite target. It is the high- 
 est wisdom of sales administration to set a definite quota 
 of orders to get during a year period. It simplifies and 
 objectifies everything, because it sets a specific task for 
 every one. 
 
 A common mistake about quotas is to deliberately set a 
 figure at variance with logical expectation, simply to incite 
 greater efi'ort, and with a full realization of its futility. 
 An unthinking organization may take this bait to im- 
 possible effort for one year, but the efficiency of the quota 
 for stimulation will be very low the next year. 
 
 No quota should be set which it is not definitely expected 
 to achieve. No quota should be set higher than is possible 
 for the organization or the effort made to accomplish. A 
 quota should be a hona fide goal, an honest target on which 
 a bull's eye hit is possible. It is deadly to the morale of a 
 sales organization to feel that it is chasing a rainbow pot 
 of gold. It must believe the quota can be secured, and it 
 must see in detail how, if each reaches his attainable indi- 
 vidual fraction of the general goal, that general goal will 
 become a reality. To this end the quota should be set with 
 care and precision, based upon a survey of all the factors 
 involved. 
 
 A common mistake is to endeavor to increase or even 
 maintain the previous percentage of gain, when that gain 
 has already been a large one, the year before. The law of 
 diminishing returns, even if all other factors are favorable 
 (which usually they are not) operates against the mainte- 
 nance of a large rate of increase. 
 
 A quota which is not reached also undermines confidence 
 in a firm's ability. The legend of success which grows up 
 around a firm or an individual salesmanager is seriously 
 shattered when a quota set with enthusiasm is not reached
 
 242 MODERN SALESMANAGEMENT 
 
 within 10%. Explanations of a 5 or 10% shortage may 
 plausibly be made, but not of a gi-eater shortage. A quota 
 oversold by more than 5 or 10% also has some ill effect; 
 the job appears too easy, and pext year's quota will be less 
 energetically worked for. A quota should, for maximum 
 effect, be oversold just about 5%. 
 
 188. Budgeting a ftuota. — The general quota is the basis 
 and foundation of the sales budget. The quota is value- 
 less unless it is subdivided and its stimulus applied in detail 
 to all departments. 
 
 It is obvious that if the billings to be achieved amount to 
 $1,000,000, that amount of goods must be produced, mar- 
 keted and administered ; and the quota, expense and capital 
 budgets will naturally be in proportion to such business 
 done. A quota for each individual article sold; for each 
 territory and for each salesman must be worked out, as 
 well as a division of this quota for each month or week or 
 even each day. 
 
 The master-budget forms illustrated are arranged to con- 
 tain all necessary fundamental or illustrative figures, and 
 to show two things: (1) the proposed or budgeted figures 
 in full for the entire term of the budget (usually 12 
 months) ; and (2) the actual results achieved to date by 
 each division and, preferably, also their per cent of the 
 corresponding budgeted figures. Corresponding figures for 
 the past year or an average of several years may also be 
 shown, but are not in any way essential to the complete 
 comparison and analysis of current results. 
 
 Whether a budget is a sub-budget or master budget 
 (gathering together and showing the results of the sub- 
 budgets), the same general plans and divisions are followed 
 and the same three main divisions — production, marketing 
 and administrative — remain the same, and only the sub- 
 headings or the sub-divisions of the business are altered
 
 SALES ADMINISTRATION^ 243 
 
 according to the needs of the particular business being 
 budgeted. 
 
 The first estimates prepared by the three divisions are 
 adjusted and combined in the production quotas summary, 
 as illustrated. 
 
 The second, and possibly the most vital of the three 
 budgets, is the expense budget, "the meat in the cocoanut" 
 of any business, as representing the co.st to operate and the 
 resulting promises of profits or loss on each dollar of busi- 
 ness done. 
 
 The cents or fraction of a cent of each sales dollar which 
 each important operation or department will cost should 
 be very carefully figured for the unit or first operation to 
 be budgeted, up through the various expense sub-budgets 
 until they appear in the expense budget summary. It 
 sometimes takes several days of intensive figuring and con- 
 ference by all divisions before an equitable and final ad- 
 justment of expense or per cent of sales dollars is agreed 
 upon and allotted to each division. 
 
 Thereafter the heads of all divisions and sub-divisions 
 must carefully watch and adjust the results to get the 
 closest possible accord between actual and budgeted figures 
 each month, as gathered in the expense budget summary 
 in the hands of the chief executive.
 
 CHAPTER XXIII 
 
 SELLING COST AND EXPENSE 
 
 189. The General Situation in Sales Cost. — Broaaiy speak- 
 ing, sales cost has been far too high in this country for 
 years past. While every other department was closely 
 supervised, selling was usually operated on a totally un- 
 stinted basis. This was of value in beating down at all 
 costs the great obstacles to national distribution, and in 
 conducting the expensive educational campaigns necessary 
 to metropolitanize the country's population. But it also 
 tended to fix upon the selling organization certain extrava- 
 gant habits of mind which have been hard to align with 
 the modern tendency to pare costs down to fractions and 
 use the more economical tools and methods of selling which 
 modern facilities make possible. 
 
 Selling cost for specialties has frequently been as high 
 as five times manufacturing cost — ^usually because the 
 methods of yesterday were carried over into to-day, with- 
 out achieving the compensating economy which should come 
 from volume. A cumbersome sales organization, an un- 
 sound distribution situation, a dependence on the methods 
 of the past, a lack of appreciation of modern labor saving, 
 time annihilating methods — these things have combined to 
 make sales cost vary remarkably, even within an individual 
 industry. The * ' low cost group ' ' of manufacturers within 
 an industry are always competing with the "high cost" 
 manufacturers — that is, with manufacturers whose skill and 
 experience and knowledge are inferior and whose costs are 
 therefore higher than that of the more prosperous "low 
 
 244
 
 SELLING COST AND EXPENSE 245 
 
 cost" manufacturers. This peculiar fact came out with 
 especial prominence when during the tariff controversy the 
 matter came up of studying differences in costs here and 
 abroad. It was found hopeless to settle upon a cost as 
 representative of the average industry, because if set high 
 enough to protect the high cost manufacturers, the low cost 
 manufacturers would profit disproportionately, whereas if 
 the low cost manufacturer's figures were used, the high 
 cost group would be bankrupted. 
 
 The study of sales cost is one challenging the best brains 
 of a salesmanager, for in most industries it is no great 
 trick to get results at a high cost; the test of ability is to 
 get them at as low a rate as possible. The unit cost of 
 selling must be reduced, not the mere general volume of 
 expense. This can only be done by increasing the sales 
 efficiency of men in the field, increasing the fertility of plan 
 and organization at headquarters, decreasing the overhead 
 in ratio to the volume, increasing volume, standardizing, 
 eliminating and concentrating ; also employing great labor 
 saving devices such as advertising. 
 
 190. What Properly Is "Sales Cost?"— This is a most 
 pertinent question, since even accountants have somewhat 
 varying methods of classification of costs under sales cost. 
 This condition springs from the fundamental shift of ideas 
 which has been taking place concerning manufacturing and 
 merchandising. Under the old conception whereby the 
 sales department was a mere wing of the business and 
 production was the center, naturally sales cost was inter- 
 preted somewhat narrowly. In many concerns to-day the 
 term sales cost is used only to describe salesmen's salaries, 
 commissions and expenses. This ranges from 3I/2 to 8 per 
 cent and normally averages about 6% of the volume of 
 business; less, if the business is well advertised to con- 
 sumers and the demand is automatic ; more if little or no 
 advertising' is done and the market is full of resistance.
 
 246 IMODERN SALESI\LiNAtJEMENT 
 
 But sales cost, properly considered, is not alone sales- 
 men 's cost, but all cost which directly or indirectly may be 
 chargeable to sales development or market broadening. 
 
 The broad divisions of proper sales cost are : 
 
 1. A just proportion of office administrative overhead. 
 
 2. Salaries of all employed in sales activities. 
 
 3. Commissions, bonuses and expenses of salesmen. 
 
 4. Advertising of every kind directly aiming at sales 
 (but not contribution advertising nor even institutional ad- 
 vertising for general good-will). 
 
 5. Special charges reasonably designated as cost of sales 
 development work, sales expense, etc. (this di^dsion might 
 include even such items as experimental work on new 
 products; credit losses incurred on a basis of sales risk, 
 etc.). 
 
 191. Cominon Errors in Sales Cost Figuring. — Typical of 
 many who arbitrarily and wrongly charge up items to sales 
 cost is that of a machinery concern which charged taxes, 
 insurance, interest and freight and stationery to selling. 
 This is absurdly wrong. General administrative costs must 
 never be mixed with sales cost. Some cost accountants 
 figure cash discounts as sales expense, whereas in my opin- 
 ion and that of other specialists in sales matters, this is 
 purely an administrative cost of doing business. Freight 
 is more properly a cost of production than a sales cost, ex- 
 cept in special cases when used as a business getting argu- 
 ment. 
 
 The three logical departments of business are admin- 
 istrative, manufacturing, selling, and the selling cost must 
 in reality be a necessary cost of producing, not of filling 
 ordere, in order to be proper sales cost. An order is the 
 completed product of the sales department ; thereafter the 
 cost (with only such apparent exceptions as in reality con- 
 form to the principle) are properly upon production and 
 administration.
 
 SELLING COST AND EXPENSE 247 
 
 Consequently bad debts, damage and breakage, etc., are 
 not charges upon the sales department. 
 
 Under the convenient title of "miscellaneous" many- 
 items are charged to sales or advertising which have no real 
 place there. It is a common tendency on the part of ad- 
 ministrative officers to endeavor to load sundry items upon 
 these two general heads which cannot by any real logic be 
 justified. This is an injustice to the sales department. 
 
 It should be understood that selling cost differs from any 
 other kind of cost, in view of the fact that it deals with 
 many somewhat intangible elements. Unlike manufactur- 
 ing costs, they cannot be estimated always on a purely 
 physical and material basis ; they cannot be computed so 
 accurately and within so small an area. Sales costs factors 
 and the conditions that affect them reach all over the world,- 
 and are based on human nature and economic and psycho- 
 logical conditions. 
 
 Sales costs, when examined and contrasted in one line 
 with another, or one firm with another, show every item of 
 difference in the character and policy of the house, the 
 range of the territory in which goods are sold, the method 
 by which goods are sold ; while even the quality of the goods 
 themselves affect the selling cost immediately. 
 
 192. Sales Cost and Fixity of Demand. — Prominent in the 
 selling cost is the element of fixity of demand. A staple 
 article naturally has the lowest selling cost, whereas a new 
 and unknown type of article has a very high selling cost, 
 due to the great amount of inertia and indifference which 
 must be overcome in order to make a sale. The ratio of 
 this indifference and inertia is the true ratio of selling cost, 
 because all other differences are, after all, minor differences, 
 in comparison with this. 
 
 When typewriters were first put on the market the sell- 
 ing cost was something like 60% of the sales price and 
 something like 450% of the manufacturing cost. In fact,
 
 248 MODERN SALESIVIANAGEMENT 
 
 this ratio has not decreased very greatly iu the last 20 
 years, for the simple reason that the large service organi- 
 zation required of the typewriter companies is still very 
 expensive. This very high selling expense, as illustrated in 
 this field of typewriters, was due to the fact that people 
 were very unwilling to give up writing their letters at first 
 and use typewriters. 
 
 As extremely contrasted at the other end of the scale 
 we have sugar, which everybody uses, and which requires 
 no selling effort, and is in fact chemically identical with 
 any other brand by any other manufacturer: the selling 
 cost on this article naturally is scarcely 1%. 
 
 We have here then illustrated the two extremes, one of 
 the specialty and the other a staple, showing between what 
 points and extremes selling cost ranges. However, when 
 you examine all other articles very minutely, you will find 
 great differences, even among staples. As a matter of fact, 
 the sharp division between staples and specialties is rapidly 
 vanishing, because staple manufacturers are fast adopting 
 the more aggressive methods of the specialty manufacturers 
 in their sales efforts ; and the specialty manufacturers are 
 constantly tending to work toward becoming a staple. For 
 instance, safety razors used to be very much a specialty; 
 they are now regarded as more or less of a staple. Their 
 selling cost is naturally therefore gradually reducing. This 
 same thing applies to any article which the public grad- 
 ually becomes used to, and which becomes part, of its daily 
 life. Bath-tubs used to be a pure luxury; they are now 
 regarded as a necessity. Linen collars were regarded as 
 a pure luxury for only special classes of people; to-day 
 even the mechanics wear linen collars. 
 
 193. The Cost of Aggressive Selling. — The difference is 
 marked between the cost of aggressive selling of any article, 
 whether staple or specialty, and the cost of more dormant 
 type of selling, which greatly affects selling cost. In other
 
 SELLING COST AND EXPENSE 249 
 
 words, two firms selling a staple article may have a widely 
 different selling cost, for the simple reason that one of these 
 concerns is treating its staple like a specialty, whereas the 
 other concern treats its article as a pure staple, — relying 
 upon its past history, its general good-will, — and is satis- 
 fied with a very nominal rate of growth. The selling cost 
 of the more aggressive firm may be, let us say, 12%, whereas 
 the selling cost of the less aggressive house may be 9%. 
 On the face of things it might seem, therefore, that the old 
 house had the better of the argument, but as a matter of 
 fact the speed of business development and the ready re- 
 sponse which can be secured nowadays through aggressive 
 selling effort make this untrue. 
 
 It does not so much matter what the percentage rate of 
 selling expense is, so much as it matters what is th e volume, 
 and the rapidity of growth of volume. In other words, 
 it may pay big profits to have a 12% selling cost until a 
 large volume of business is secured. It figures out some- 
 thing like this : 
 
 Competitor A has a volume of $1,000,000 per year, at a 
 sales cost of $90,000 or 9%. Competitor B has a volume 
 of $500,000, and a sales expense of 12%. Naturally it is 
 B 's aim to secure more sales, as it will automatically reduce 
 his selling cost more to the level of Competitor A. In fact, 
 Competitor B could, without any hardship, also have a 
 selling cost of 9% if he chose to grow at no greater speed 
 than Competitor A (who has been in business 20 years with 
 an average annual growth of 5%). 
 
 But Competitor B is not content to limit his growth. He 
 wishes to anmhilate time, not only because he is only 7 
 years old, but because he wishes to make a greater amount 
 of profit within a shorter period of years than competitor 
 A. Competitor A wishes to earn only $2,000,000 net in the 
 next ten years, while competitor B wishes to earn 3 or 4 
 million. But, more important still, he is out to dominate
 
 250 MODERN SALESIMANAGEMENT 
 
 his field, reach into every corner of the market and estab- 
 lish himself there securely. He realizes the strategic value 
 of seizing the reins of leadership from the slack hands of 
 Competitor A, so that in the shortest space of time he may 
 have a masterful grip on the field. 
 
 This is illustrated by the men's clothing field where a 
 prominent new firm wrested the long-held leadership away 
 from a certain house and now enjoys a volume of about 20 
 million to the old leader's 414 million, and at a selling cost 
 of 21^% as contrasted to 414 or 5%. 
 
 194. Volume in Relation to Sales Cost. — The principle is 
 exactly like the principle of moving a railway train. It 
 may take a greater amount of steam to start a larger train 
 of cars than a smaller train, but once started it actually 
 takes less steam to keep it going on a level stretch because 
 of momentum. A large volume may cost higher in sales 
 cost to secure, but when secured costs much less to maintain 
 than a smaller volume. 
 
 Modem American manufacturers have therefore fully 
 realized the value of volume. In fact, volume has been too 
 universally and exclusively striven for, without also seeing 
 that the greater complications of large volume sometimes 
 result in annulling the proper expectations of decreased 
 cost. As volume increases organization becomes more diffi- 
 cult, and it requires relatively more brains than a business 
 of small volume, if the economies of volume are to be 
 reaped. Large organization and large volume bring more 
 and more opportunities for leaks, and waste and ineffi- 
 ciency. The caliber of executives must be up to the volume 
 demands. 
 
 Selling cost must be studied first in relation to desired 
 volume, the conditions of the field and the desired speed of 
 growth, before it can be properly analyzed and intelli- 
 gently judged. Unless selling cost is judged in relation 
 to these factors it is meaningless to say selling cost is too
 
 SELLING COST AND EXPENSE 251 
 
 high or too low. There is a definite point which, all factors 
 
 considered, is the logical selling cost for any house which 
 has determined its policies and plans and knows its field 
 thoroughly. 
 
 195. The Vital Matter of General Costs.— Although the 
 responsibility is primarily on the general administration 
 of a business, cooperation in cost study by the sales admin- 
 istration is vital to a business. The setting of costs also 
 effects sales, and a salesmanager may be severely penalized 
 in competition by an incorrect or careless manner of cost- 
 ing the goods sold, and the prices set as a result. Often 
 elaborate cost systems incorrect in principle, are adopted, 
 resulting in placing prices on goods so high as apparently 
 to make sales impossible. Much difficulty arises also from 
 the problem of the relative sales desirability of selling some 
 goods at a loss, and others at an abnormally high profit. 
 Under some few circumstances this is advisable for sales 
 policy reasons (but never for accounting reasons, of 
 course). The law of averages must be employed in such 
 cases to work out the ultimate policy. Dependence must 
 be laid upon average profits, when there are fluctuating 
 rates of profit, or when policy reasons are used in setting 
 prices on some goods without regard to costs. 
 
 Sometimes all competitors are equally ignorant of real 
 costs, and when accurate cost accounting discloses losses, it 
 becomes a matter partly of sales administrative policy to 
 determine whether it will pay to be courageous and lead the 
 industry in raising prices to profitable levels based on true 
 costs. 
 
 Excellent sales strategy may be worked out from a cost 
 situation of this kind, by concentrating sales effort upon the 
 lines in which true cost figures show the largest margins, 
 while competitors, unaware of their unprofitable lines, 
 spend a large part of their sales energy upon the profitless 
 business.
 
 252 MODERN SALESI^IANAGEMENT 
 
 Costs should be controlled by the general accounts, and 
 should not be "shaded" by any false or careless logic. A 
 salesmanager should be slow to deem cost figures absurd 
 in the light of competitive prices, knowing how widespread 
 is the ignorance and neglect of cost finding. Monthly 
 statements showing actual profits studied by salesmanagers, 
 will cure this, for true costs are, in most instances, always 
 greater than expected. It is a foolish custom to examine 
 profits only at the end of a year. This is too late to save 
 much that may have been made instead of lost during the 
 year. 
 
 196. Data on Profits. — Far too little attention is paid by 
 many salesmanagers to the study of profits. This is not 
 altogether their fault. It is remarkable how little valuable 
 information is furnished the average salesmanager, even 
 in those concerns where there is a more or less elaborate 
 cost system and where numerous cost clerks are employed. 
 In the case of a company whose product was sold on an 
 f. 0. b. Pittsburgh basis and where the freight item was a 
 factor of great importance, it was not possible in spite of 
 the highly detailed cost accounting system in force to de- 
 termine whether the business done in territories where the 
 company was not reimbursed for freight outlays was being 
 handled at a profit or otherwise. 
 
 A salesmanager should have data on profits, under the 
 following sub-heads : 
 
 1. On various types and kinds of products separately 
 
 2. On all territories and divisions of territories 
 
 3. By individual salesmen, districts and branches 
 
 4. By sales to various classes of customers. 
 
 In addition, the system should provide for furnishing 
 any combination of this information, as for instance : 
 
 1. Profits realized in the various territories by lines of 
 product.
 
 SELLING COST AND EXPENSE 253 
 
 2. Profits realized on sales to the various classes of cus- 
 tonaei-s by lines of product, etc. 
 
 It is also desirable that the salesmanager be furnished 
 with approximate information under the above heads as 
 regards estimated profits on unfilled orders, as it by no 
 means follows that the profits realized on this montli's 
 shipments are indicative of what the profits will be on the 
 orders accepted this month. 
 
 197. Costs and Profits Traced to Individual Salesmen. — 
 There is no reason why merely general data on costs and 
 profits should be available. It is of very definite value to 
 figure out accurately the profit or loss represented by any 
 individual salesman's efforts. 
 
 By means of an electrical tabulating device, using coded 
 punch cards, it is impossible to accomplish this in detail 
 even in the most complicated businesses. In a machinery 
 house for instance as described by C. Charter Harrison, 
 cards are punched to give the following information as to 
 an individual salesman 's sales : 
 
 1. the number of each kind of machine sold 
 
 2. the total amount billed for each kind of machine 
 
 3. the freight billed for each kind of machine 
 
 This information is posted to the Analysis of Machine 
 Sales by Salesman and by reference to the Standard Cost 
 Cards, the standard cost of machines sold is obtained, and 
 totaled by classes in the case illustrated, it being assumed 
 that the standard cost of all machines of the implement 
 class sold by J. G. Jones was $2,000. In order to ob- 
 tain the relation between the standard and actual cost of 
 this class of machine an inventoiy account is carried, show- 
 ing in parallel columns the standard and actual cost of 
 the machine manufactured. In the case taken as an exam- 
 ple it appears that the actual cost of the machines of the 
 implement class carried in the Springfield Branch repre- 
 sented 150 per cent of standard, so that the gross profit
 
 254 MODERN SALESMANAGEMENT 
 
 realized from J. G. Jones' sales of implements for the 
 month works out as follows : 
 
 Standard cost of implements sold $ 2,000.00 
 
 Ratio of actual cost to standard 140 per cent 
 
 Actual cost of implements sold $ 2,800.00 
 
 Amount of implement billings 3,010.00 
 
 Gross profit on J, G. Jones' implement sales. . 210.00
 
 CHAPTER XXiy 
 
 PRACTICAL SALESMANSHIP PRINCIPLES 
 
 198. What Is Salesmanship? — Salesmanship may roughly 
 be classified into routine salesmanship and creative sales- 
 manship. The former type of salesman is often referred 
 to as a " mere order taker. ' ' This type is the most numer- 
 ous, especially in staple lines. The typical example is the 
 representative who makes the rounds among the trade with 
 the question : ' ' Do you need anything in our line to-day ? ' ' 
 If customers say "yes," then follows a discussion of sam- 
 ples, terms and prices : if " no, ' ' he goes his way. 
 
 On the other hand, the creative type of salesman, par- 
 ticularly the specialty salesman, is often told that the 
 customer is not interested and does not see the need for 
 the goods. The creative salesman then helps to educate 
 the prospect to appreciate how he can profit by accepting 
 the offering made. 
 
 Salesmanship has been defined in a thousand ways more 
 or less fanciful, but a practical working definition might 
 be "getting goods from where it is made to where it is 
 needed." To accomplish this task a great many arts and 
 sciences must be called into play. 
 
 199. The Feeling Accompanying Every Idea or Impres- 
 sion. — The real basis for the value of personality in sales- 
 manship is the psychological fact that every idea that 
 enters a person 's mind is accompanied by some feeling, and 
 this feeling is either good or bad, pleasant or unpleasant, 
 satisfactory or unsatisfactory. There is no idea so small 
 
 255
 
 256 MODERN SALESMANAGEMENT 
 
 that it does not produce some feeling causing the mind to 
 like it or dislike it. 
 
 Everything that the prospect hears, sees, smells, tastes, 
 or feels may result in an idea, and every idea, whether 
 fully formed or not, is classified by the mind as satisfactory 
 or unsatisfactory, and, therefore, helps or hurts in making 
 the sale. 
 
 The appearance and dress of the salesman, the voice, 
 speech, and even his breath if it is bad, all produce their 
 effect on the customer's mind. The modern salesman plans 
 definitely to have all these items produce satisfactory rather 
 than unsatisfactory results. In a similar manner, the 
 solicitor should plan to secure the right impression from 
 the prospect by careful attention, not only to the statement 
 of his proposition, but also to the manner of statement, his 
 own personality, and to all of the surroundings. 
 
 200. Watching the Buyers' Facial Expressions. — Another 
 fact of psychology is that every idea or feeling that enters 
 a person's mind tends to be expressed. There are dozens 
 of ways in which the tendency of expression may show. 
 Speech, exclamations, shaking the head, movements of the 
 hands or body, the brightening of the eye, the movements 
 of the muscles of the face, laughing, frowning, blushing, 
 are all forms of expression. 
 
 Many people learn to control this tendency to show what 
 they are thinking. Most people learn to control their 
 speech to a certain extent. Some learn to control the ex- 
 pression of the eyes, but very few learn to control the 
 movements of their finer muscles of the face and body. 
 
 These expressions are very valuable to the salesman. 
 Every good salesman watches his customer's expressions 
 with great care, for it is by these expressions that he must 
 judge whether he is pointing out that which is interesting 
 to the customer, whether he is on the right track or not. 
 
 201. The "Approach." Arousing Interest. — To get a hear-
 
 PRACTICAL SALESMANSHIP PRINCIPLES 257 
 
 ing from people who are not aware they need or want your 
 goods is, as a rule, not an easy matter. There are go many 
 sellers constantly after the buyer that the latter is weary 
 of listening to them, and in many cases has not the time to 
 give every one an audience. When possible, the way for 
 the salesman should be paved through a previous appoint- 
 ment, either by telephone or correspondence, or through a 
 previous educational campaign of advertising matter, which 
 materially reduces the cost of sales closing. Admission to 
 the buyer — in sales technique called ' ' the approach ' ' — must 
 be sought through strategems, if other means fail. The 
 persevering and successful salesman will generally succeed 
 in "getting to his man" even though at first he is refused 
 a hearing. This requires versatility, perception, personal^ 
 ity, courage and courtesy. 
 
 In order to find the best possible angle of approaching 
 the subject, the salesman — like the yachtsman — "maneuvers 
 for position" mentally. He endeavors to engage the pros- 
 pect in a more or less general conversation, or on some 
 topic of specific interest to him, leading from there to his 
 own proposition. 
 
 He will secure the buyer's interest for it if he can con- 
 cisely state that he can effect either a saving or make more 
 money for the prospect. 
 
 202. Reaching the Prospect's Mind Through the Five 
 Senses. — The simple psychology of human beings forms 
 the very base of any understanding of selling. A human 
 being cannot be influenced excepting through his mind, 
 which is approached by exactly five senses — five principal 
 nerves that lead into the brain-box: (1) the sense of sight, 
 (2) of hearing, (3) of taste, (4) of smell, (5) of touch. 
 It is well known that most individuals differ in their habit 
 of receiving impressions into their minds. Some get most 
 of their impressions through the eye (and are called "eye- 
 minded") ; they must see a thing in order to understand it
 
 258 MODERN SALESMANAGEMENT 
 
 readily. These are the people (and they are large in num- 
 ber, but by no means a majority), who prefer to read your 
 proposition, who respond readily to advertising, and who 
 are very observant, noticing all the features of an article 
 shown them without much assistance. 
 
 The ear-minded people, also in the minority, are those 
 who even in their reading, half whisper the words, and pre- 
 fer to hear talk rather than to read and visualize. 
 
 By far the most important of all the senses is that of 
 toiich. Most of mental impressions and ideas are received 
 in this manner — ^by personal contact with objects. Such 
 people must touch the goods, work it themselves, and feel 
 it before they are 100% sold. It is vital to good salesman- 
 ship that every opportunity possible be provided for cus- 
 tomers to touch the merchandise. Even the insurance 
 business, difiicult because of the absence of a concrete arti- 
 cle of merchandise, can be made less difficult by giving 
 prospects something, a sample policy or a booklet, into 
 their hands. A prospect who takes the merchandise into 
 his own hands is in a very fair way to sell himself. It is 
 sheer folly for a salesman himself to demonstrate a mechan- 
 ical device while the prospect stands idly by. Usually the 
 customer himself unconsciously itches to make the article 
 work. 
 
 These basic facts need ever to be in a good salesman's 
 mind while selling so that he may make no fundamental 
 error. The sheer mechanics of a prospect's mind make 
 necessary such steps of procedure ; and they are not theo- 
 retical psychology, but proven bodily fact. The safe course 
 is therefore to make each sales presentation a combination 
 of appeals to all five senses, to whatever extent possible, 
 and to emphasize and stress whatever one of the five ap- 
 pears to be most receptive in any individual prospect. But 
 this interest will quickly cool off unless the salesman is
 
 PRACTICAL SALESMANSHIP PRINCIPLES 259 
 
 prepared to produce proof and turn interest into "con- 
 viction. ' ' 
 
 203. Developing Conviction. — Producing conviction re- 
 quires above all that the salesman himself be convinced of 
 the merits of his case, otherwise he cannot be sincere and 
 enthusiastic, and can therefore not hope to produce enthu- 
 siasm (the forerunner of conviction) in the mind of the 
 prospect. 
 
 After the latter is sufficiently interested to listen, he is, 
 as a rule, either neutral or biased in favor of some com- 
 peting article. The salesman must marshal his points so 
 that one will lead logically into the other with cumulative 
 effect, until the total impression he has created has crowded 
 out of the mind of the prospect any negative thought ; that 
 is, any thought that other goods will answer just as well, 
 or that other considerations do not make the purchase ad- 
 visable. 
 
 It is agreed that the most common fault of sales can- 
 vasses is the scattered nature of the arguments offered. It 
 is vital — especially in canvassing the higher type of busi- 
 ness men — to assemble logically the proper material and 
 consideration for the prospect to enable him to make a clear 
 judgment. If this is not done, the mind of the prospect is 
 led, not to conclusion, but to indecision. 
 
 However, the human mind cannot concentrate on more 
 than one thought at a time. Therefore it has been found 
 preferable by successful salesman to put the emphasis on 
 one or two of the principal points at issue, and dwell on 
 them strongly and repeatedly. 
 
 204. Leading Points of Sales Appeal. — Every selling prop- 
 osition has leading considerations. Sometimes they may 
 not have anything to do with the merit of the goods. For 
 example, when the customer mentions that he has been dis- 
 appointed by poor delivery of a competing concern, the 
 salesman has often secured orders by emphasizing the ship-
 
 260 MODERN SALESJVIANAGEMENT 
 
 ping facilities and reputation for prompt delivery of his 
 liouse. 
 
 The points of merit of the product by which the sales- 
 man attempts to produce conviction are summed up by suc- 
 cessful salesmanagers as follows; in the order of average 
 importance : 
 
 1. 
 
 Appearance 
 
 8. 
 
 Serviceability 
 
 2. 
 
 Material 
 
 9. 
 
 Availability 
 
 3. 
 
 Construction 
 
 10. 
 
 Superiority over competing 
 articles 
 
 4. 
 
 Durability 
 
 11. 
 
 Price 
 
 5. 
 
 Utility 
 
 12. 
 
 Reputation of house 
 
 6. 
 
 Simplicity 
 
 13. 
 
 Delivery facilities 
 
 7. 
 
 Popularity 
 
 14. 
 
 Credit terms 
 
 205. Adjusting the Appeal to the Prospect. — When the 
 buyer is an expert judge of the goods, the sales talk which 
 is most successful has been found to be an elaboration of 
 the points which seem to impress the buyer most favorably. 
 
 As a rule, buyers are influenced to a degree by the judg- 
 ment of other buyers who have ordered the goods. One 
 of the most powerful levers, it has been found, is the signed 
 orders (or duplicates) which a salesman has been able to 
 show his prospect, proving that other dealers or users have 
 placed orders. Such exliibits are still more convincing if 
 the signatures shown are by firms known to the buyer either 
 personally or by reputation. 
 
 Testimonials, original or reproduced in facsimile or in 
 print, have been found less convincing; but they are better 
 than no evidence of popularity or recommendation. 
 
 For selling technical products, technical knowledge of 
 them is of course important. It is now recognized that gen- 
 eral technical education or factor)^ training for articles to 
 be sold to those who have a technical discrimination is 
 very desirable — though it cannot be relied upon.
 
 PRACTICAL SALESMANSHIP PRINCIPLES 261 
 
 "When the buyer is not well versed in the line, successful 
 salesmen attribute their orders to the fact that they have 
 emphasized the reliability of their statements and of the 
 policy of the house. 
 
 If the sales interview is so managed that the buyer can 
 check up the statements of the salesman right then and 
 there, a great step toward the sale has been made. 
 
 206. Studying the Prospect. — The central problem in sell- 
 ing is conceded to be bringing the prospect to feel about 
 your proposition the way you feel. This makes it necessary 
 to find the "point of contact" between you and him. 
 
 Now, point of contact between people is rarely imper- 
 sonal — it is personal and temperamental. The salesman 
 usually finds it necessary first to sell Ids personality before 
 he can sell his goods. 
 
 To correctly size uj) the prospect is just as important 
 to the salesman as a knowledge of the goods he hopes to sell 
 him. As a matter of fact, the salesman's chief value lies 
 in his ability to distinguish between people — to judge them, 
 meet them, adapt to their capacity suitable sales arguments. 
 
 It is possible to write entire books describing the psy- 
 chology of people, but, after all, saleswork deals with com- 
 mon, workaday averages, and few salesmen can be wizards 
 of psychology. 
 
 The psychology of selling must therefore be brought down 
 to working formulas, however rough in our present state 
 of knowledge, such as the average salesman can easily com- 
 prehend. Practice by large firms has proved that the clever 
 and hypnotically psychological salesman is often more in- 
 terested in his psychology and cleverness than in the cus- 
 tomer. 
 
 The keynote which is most generally agreed upon as 
 bringing the best results in selling is the keynote of com- 
 mon sense, plain honest talk and the impression of a sincere 
 desire to solve the problems of the prospect.
 
 262 MODERN SALESIVL^NAGEMENT 
 
 The salesman's part is not to use his own personality or 
 the personality of the prospect to merely close an order — 
 it is his first duty to render service. Unless he is satisfied 
 that service can he rendered to a prospect for value asked 
 no good salesman has any business even to attempt to sell. 
 The principles of service rendering apply to the salesman 
 as well as to the house. 
 
 Nevertheless, as there are two very pronounced types of 
 people, there must be two separate methods of approach, 
 once a salesman is face to face with a prospect to whom 
 serv'ice can be rendered. 
 
 The first, the "head type," is most readily influenced by 
 appeals to facts, data and reason; the "heart type" by 
 appeals to suggestion, imagination and emotion. No pros- 
 pect is 100% "heart" or 100% "head"— the qualities are 
 always more or less mixed, but one always predominates. 
 Feeling is a factor to reckon with even in the "head" 
 type. 
 
 The prospect reveals himself by his (a) Appearance; 
 (b) Speech and acts. 
 
 207. Analyzing Physical Appearance: Forehead and Eyes. 
 — The following "appearance" indicators have been found 
 fairly reliable by salesmen and executives who have an- 
 alyzed the subject (bearing in mind that in not a few cases 
 "all signs fail"). 
 
 Forehead: Broad, high, square shaped forehead indi- 
 cates analytical power, intelligence, perseverance, severity. 
 The more it tends toward rounded and cornerless outlines, 
 the more flexibility of character does it indicate. The re- 
 treating forehead indicates imagination, feeling, wit and 
 keen perception. The projecting forehead is a sign of 
 weakness of will. 
 
 Eyes: The eyes indicate the feelings rather than the 
 intellect. This is due not so much to their physical char-
 
 PRACTICAL SALESMANSHIP PRINCIPLES 263 
 
 acteristies as to their expression — ^to their action, which is 
 to a large extent involuntary. 
 
 A clear, direct gaze, unassumed and natural, is a sign of 
 sincerity, but not an infallible one, as many men have 
 nervous mannerisms which make them appear "shifty." 
 Other factors must be studied for corroboration before any 
 judgment can be verified. Items of eye-study are as fol- 
 lows: 
 
 Blue and gray eyes often denote a cold temperament; 
 brown and black eyes usually denote an individual more 
 responsive to emotions, but there are many exceptions to 
 this rule, especially among those whose eyes are large and 
 round. 
 
 Small eyes denote an analytical, calculating disposition. 
 
 Large round or oval eyes with sharply delineated eyelids 
 indicate a temperament quick to react, full of imagination 
 and feeling. 
 
 Eyes set too closely together or too far apart indicate 
 a tendency to abnormality. 
 
 Eyebrows that are straight indicate firmness, vigor and 
 self-reliance. 
 
 Eyebrows curved and arched indicate temperament and 
 emotion. 
 
 The action of the eyebrows is a very important symptom 
 to watch in a sales interview. Raised eyebrows show sur- 
 prise and attention. Lowered eyebrows show an antagon- 
 istic attitude. 
 
 When the prospect keeps looking at you or your goods, 
 he shows he is interested. When his eyes move about rest- 
 lessly, it means lack of concentration and interest. 
 
 208. Analyzing Physical Appearance: lips, Chin, Etc. — 
 The lower half of the face is also worth watching, not only 
 for its construction, but also for its expression. 
 
 Thin lips, set in a straight line (especially when accom- 
 panied by a thin nose) usually indicate coldness, precision,
 
 264 LIODERN SALESIMANAGEMENT 
 
 industry, order, etc. If tliey are drawn down at the cor- 
 ners, they show a weak or pessimistic disposition. 
 
 Large, well-defined lips show presence of energy and 
 vitality. Lips, however large, if well formed, well closed, 
 indicate power, ability, energy, and good sense. A small 
 mouth is often an indication of pettiness ; a large mouth 
 is often an indication of a good sense of humor and good 
 nature. 
 
 A small chin usually indicates a weak nature and a fussy 
 disposition, a large chin indicates stubbornness and will- 
 power, and a practical disposition. 
 
 The surroundings of a man speak perhaps more than 
 his person. Good logic is essential in making deductions. 
 A man whose office is clean as a pin and snappy and up- 
 to-date can be talked to as a live wire "head type" on the 
 standard, snappy business basis, without any studied-out 
 approach or indirect language. The man whose office is 
 not up-to-date and in which are evidences of lack of success 
 and ability — ^this is the man whose approach is the hardest. 
 He is invariably a heart type man, or a head type "gone 
 to seed" with hobbies and theories. 
 
 Between these two extreme types lie all the intermediary 
 types. 
 
 209. Speech and Acts. — It is a fact generally agreed to 
 that what a man says is by far the surest and most scien- 
 tific way to analyze him; considerably more trustworthy 
 than size-ups of physical appearance. Any man who talks 
 500 words to a good salesman will get himself accurately 
 tagged. Business men higher up have long recognized this 
 principle. Most of the biggest captains of industiy — the 
 late J. P. Morgan and E. H. Harriman, as well as George 
 F. Baer, Cyrus Curtis, Thos. F. Ryan, have been examples 
 of men noted for their silence. They have not given the 
 other fellow the opportunity to know their mind, until 
 they have made a final decision.
 
 PRACTICAL SALESMANSHIP PRINCIPLES 265 
 
 For tliis reason, what the prospect says is an important 
 study for salesmen. The rate of speed at which the pros- 
 pect talks is important to watch, because it is the infallible 
 speedometer that shows how rapidly or how slowly he 
 thinks. It has been found that the most successful sales- 
 men are those who adjust the speed of their utterance to 
 the speed of the mental processes of the prospect, so that 
 the latter can grasp the thought without any strain. 
 
 The next important symptom on the part of the prospect 
 to watch, is his Jiabii of thaiight. If he asks many ques- 
 tions it shows an analytical mind that can be interested 
 most readily by presenting your subject in an analytical 
 manner. On the other hand, if the prospect waits for you 
 to build up your proposition for him, without later on ask- 
 ing questions, the experienced salesman will not spend 
 much time in going into all the details of a proposition but 
 will devote his energy to talking its advantages and results 
 as a whole. 
 
 These and scores of other individual points are indicated 
 in what a prospect says and how — in what tone of voice, 
 with what accompanying gestures and looks. 
 
 The special considerations utilized in studying the pros- 
 pect are these: 
 
 The man who receives a salesman without scarcely in- 
 terrupting his own work, can be interested only if some 
 very important argument is made at once. The prospect 
 who receives the salesman in the attitude of a caller re- 
 quires some preliminary courtesies before broaching the 
 subject proper. 
 
 It is particularly important to watch all the possible 
 symptoms until it has been ascertained that they indicate 
 interest on the part of the prospect. 
 
 Then it is up to the salesman to use this interest aroused 
 as an entering wedge and make sure that it does not lag. 
 If it does, the veteran salesman changes his conversation
 
 266 MODERN SALESMANAGEMBNT 
 
 so it will create new interest. Without interest there can 
 be no attention ; without attention there can be no convic- 
 tion ; without conviction there can be no sale. 
 
 210. Working Toward a "Close." — After conviction has 
 been produced to the point of "culmination" (which point 
 can be sensed only after some practice), the order must be 
 closed. Otherwise the salesman "talks himself in and out 
 of the order. ' ' 
 
 It has been found wise not to formally ask the prospect 
 to sign the order. The best results have been obtained 
 when the willingness to order has been taken as a matter 
 of course. To put the issue to the test, the veteran sales- 
 man as a rule brings it in incidentally. For example, he 
 will ask such questions as these : ' ' How many did you say 
 you wanted?" or "When shall we ship these goods?" etc. 
 
 When the prospect ' ' balks ' ' the skilled salesman tries to 
 find out the specific reason and then reiterates his best 
 arguments to overcome the objection. It is at this point 
 that the training of the salesman and the "sales manual" 
 are proving useful. With their help he can utilize the 
 arguments that have been found most successful in handling 
 similar cases before. 
 
 In many cases it is found desirable to go over the same 
 point repeatedly, but from different angles and in differ- 
 ent forms, so as to avoid monotony, which would make the 
 presentation repulsive. Some sales veterans are very 
 skilled in these "rebuttal" talks. 
 
 It is agreed that adeptness at "turning" an argument 
 after this fashion or in meeting discourtesy, stubbornness, 
 hasty or illogical argument constitutes a good salesman's 
 best capital, for, after all, business men buy because their 
 imaginations have been appealed to. Selling arguments 
 must be adapted not only to the goods, but also to the 
 particular type of individuality personified in the buyer. 
 The final pressure of personality against personality, which
 
 PRACTICAL SALESMANSHIP PRINCIPLES 267 
 
 so often becomes a factor in closing a sale, is the ultimate 
 test. 
 
 211. The Fine Art of "Closing". — The principal qualifi- 
 caiion of salesmanship is ability to close. "Closing" is the 
 pivot of salesmanship — and a close study of it is tre- 
 mendously important. The following points must be kept 
 in mind by the man who wants to be a successful ' ' closer. ' ' 
 
 Watch for the point when the resistance of your prospect 
 ceases. 
 
 This is commonly called the ** psychological moment." 
 When it arrives stop arguing and write down the order 
 or have the prospect write it out or sign it. 
 
 If you do not seem able to reach this point during your 
 first interview, you must make additional calls. It is im- 
 portant, therefore, that you do not leave the prospect in 
 an unfavorable frame of mind that will close the door to 
 future calls. 
 
 As a rule, the more important the proposition the more 
 calls are necessary before reaching a close. But the master- 
 salesman prides himself on his ability to close on the first 
 call. 
 
 If possible, prove to the prospect that now is a par- 
 ticularly opportune time to sign the order. Good reasons 
 for such prompt action, if they can be truthfully given, 
 are — the probability of an increase in price ; ability to ship 
 promptly; special discounts or inducements for prompt 
 orders; limited stock, that may prevent late orders being 
 filled or at least from being filled as promptly ; a chance to 
 get ahead of his competitors (one of the most powerful 
 arguments) . 
 
 Subtly make the prospect feel that, as a man of sound 
 judgment, he can — in his own interest — hardly arrive at 
 any other decision than signing the order; that not to do 
 so would really be a reflection against his common sense. 
 This is a strong weapon but should not be clumsily used.
 
 268 MODERN SALESMANAGEMENT 
 
 If necessary to go over the prospect's head to a superior 
 officer, the polite but determined announcement to that 
 effect will often result in an order, for few people like to 
 be placed "in the background" as is done by such a pro- 
 posed action. A delicate question as to whom the prospect 
 confers with usually in such matters will develop the neces- 
 sary man "higher up." 
 
 Become politely impatient, showing the prospect that 
 you can give him no further time on this proposition and 
 that his refusal to accept it will mean more loss to him 
 than to you or your firm. 
 
 If this siege does not bring an order, come back again, 
 and again presenting your story from different angles, es- 
 pecially such angles as fit your prospect. They will occur 
 to you as you study over the situation. 
 
 When the prospect raises objections, he shows that he is 
 interested because he suggests the points that are not clear 
 in his mind. Primed with the proper answers for these 
 objections, they can be overcome. 
 
 The prospect who is silent or who agrees with the sales- 
 man on everything in a perfunctory manner, devoid of all 
 enthusiasm, is the most difficult to convince. He is usually 
 a purely "head" type and must be "closed" impersonally 
 for cold reasons.
 
 CHAPTER XXV 
 
 STANDARDIZING THE WORK OF SELLING 
 
 212. Why Selling Requires Standardizing. — The hallu- 
 cination that selling is a mysterious individual gift is ex- 
 ploded. The knowledge is current that there is, after all, 
 one best way to sell a given proposition (with, of course, 
 some margin of scope for individual application). There- 
 fore, it is a serious part of salesmanagement to standardize 
 the work of selling so far as is wise or possible. No trained 
 salesmanager for a moment believes in making automatons 
 out of his salesmen — but he also knows the weaknesses of 
 salesmen as a class, and he knows that a certain degree 
 of standardization is an actual necessity for a high degree 
 of efficiency. He knows that dependence upon ''star" 
 salesmen is a will-o'-the-wisp; that his chief dependence 
 and concern is with the average level of salesmen, and 
 with the "tail-enders." He does not, as a matter of fact, 
 believe in "star" salesmen — he knows them to be erratic, 
 dangerous, variable, egotistical and unsound in method. 
 
 He wants teachable, intelligent, steady salesmen who will 
 mould themselves to a plan and who respond to leader- 
 ship in concerted action — which means standardization to 
 a certain degree. 
 
 Conclusive proof of the need of standardizing may be 
 had by any salesmanager by arranging for each salesman 
 in turn to give him a private demonstration of the tech- 
 nical features of the article. It will be a rare instance 
 that will not show up the use by salesmen of almost as 
 many different names for a part, or as many varying ex- 
 
 269
 
 270 MODERN SALES]\L\NAGEMENT 
 
 planations of the use and value of a feature as there are 
 salesmen. Salesmen themselves will be astonished to learn 
 that they have by habit departed from the facts and made 
 mistaken demonstrations, calling things by wrong names, 
 stressing the wrong features, ignoring others that are 
 most important and in general garbled the real situa- 
 tion. Proper standardization would have avoided this, as 
 salesmen are often poor observers, or poor mechanics and 
 in general unskilled in the analysis which should proceed 
 before building up a standard argument. 
 
 The need for standardization is much wider and broader 
 than this, however. Some firms have found it advantage- 
 ous even to go so far as to standardize the appearance of 
 their sales people. A number of firms now require specific 
 standards in the matter of the linen and shaving habits of 
 their salesmen ; to insure this, some even assume a part 
 of the laundry expense of their sales people. 
 
 213. Standardizing House Policy. — It is now conceded to 
 be essential that the policy of the firm must be standard- 
 ized; otherwise it is difficult to treat all customers of the 
 same kind on the same basis. Salesmen are thus enabled 
 to tell each customer just what he may expect in the way 
 of credit accommodations, terms of pajTuent, adjustment 
 of complaints, time of shipment, methods of packing, ad- 
 vertising, assistance, etc. 
 
 In the chapter on i)olicy (Chapter VI) an outline is 
 given of the policy factors which are important, and the 
 main principle to be observed if any sales policy is to be 
 a success is that it be standardized. "AVobbling" on policy 
 makes every other sales factor wobble, including the sales- 
 men 's esprit de corps. 
 
 House policy should be sufficiently standardized so that 
 salesmen can find it in their sales manuals and data books, 
 unmistakable, clear and unvariable, 
 
 214. The Sales Manual. — This is the natural and con-
 
 STANDARDIZING THE WORK OF SELLING 271 
 
 venient vehicle for standardizing the work of selling. The 
 sales manual is a well-known and widely used device — 
 overdone by some, but far more usually underdone. 
 
 A salesman without an adequate sales manual is a pilot 
 without a compass, trusting to blind instinct. He is de- 
 frauded of what he has a full right to expect from the 
 salesmanagement. A salesman of the modern kind knows 
 of his own accord that it is folly and injustice to stick a 
 grip of samples into his hand, give him a ticket to his terri- 
 tory and shake his hand good-by. The manual is no more 
 formidable a thing than a convenient note-book of house 
 instructions and suggestions, arranged in an orderly way. 
 
 Standardizing the methods by which a salesman can 
 make a sale, does not mean making a parrot of him. It 
 does mean, however, giving him the benefit of the result 
 of the experience of the entire organization and of other 
 sales talents, in sharpening his own sales ability. 
 
 The Sales Manual is a book of standard practice, com- 
 piled for the exclusive use of the sales organization. Some 
 are limited to a thorough description of the goods and 
 their uses. Others include also points of comparison with 
 competing goods. Still others include rules on salesman- 
 ship and a complete list of the selling arguments and an- 
 swers to objections — all are compiled as the result of care- 
 ful study. Some even go so far as to include rules foi^ 
 the health, appearance and morals of the salesmen. 
 
 215. Table of Contents for the Sales Manual. — The fol- 
 lowing is a broad outline of an actual Sales Manual: 
 
 1. Introductions : Rewards of Salesmanship 
 
 Factors of Success 
 Necessity of Study 
 Trial period 
 
 2. Merchandise: Its manufacture 
 
 Characteristics
 
 272 MODERN SALESMANAGEMENT 
 
 Properties 
 Its many uses 
 3. Preparation for: How to study the manual 
 Sales training: How to study the samples 
 How to study the customer 
 Salesmen's outfit 
 
 4. The Territory : How to analyze the territory 
 
 Location of field 
 
 Dividing towns 
 
 Block system 
 
 Procedure in new territory 
 
 Procedure in old territory 
 
 5. The Prospect: Gaining an audience 
 
 Preliminary questions to ask 
 Showing samples 
 Demonstrations 
 Closing the sale 
 Overcoming objections 
 Policy of the house 
 
 6. Specialties of the House 
 
 7. General Helps and Hints 
 
 8. The Salesman and the Company 
 
 9. Suggestions on Health and Personal Standards 
 10. Talks on Salesmanship 
 
 Further details of standardization of saleswork will be 
 found in the chapter on Sales System and Graphic Records. 
 
 216. Ideal Plan for Contents of Sales Manual. — If a sales 
 manual is to be built containing all that an ideal sales 
 manual might logically carry, the following outline (sug- 
 gested by the Dartnell Corporation) is very good : 
 Division 1. — History of the Business and its Policies. 
 
 a. Importance of Selling the House as "Well as Products. 
 
 b. Human Interest Story of Inception of Business.
 
 STANDARDIZING THE WORK OF SELLING 273 
 
 c. Something About the Founders and Their Person- 
 alities. 
 
 d. The Distinguishing Policies — How They Grew Up. 
 
 e. Organization "Who's Who" Among Executives. 
 
 f. Chart Showing Growth of Business in Late Years. 
 
 g. * ' The Future ' ' — Signed Statement by President. 
 Division 2. — Personal Selling Suggestions. 
 
 a. How to Get "Live" Leads. 
 
 b. Qualifications of a Good Salesman — Self-Analysis 
 Chart. 
 
 c. What a Salesman Should Study — Outline Course. 
 
 d. Mental Equipment Each Salesman Should Develop. 
 
 e. Physical Equipment Each Salesman Must Carry. 
 
 f. Suggestions for Using Said Equipment to Best Ad- 
 vantage. 
 
 Division 3.— The Product— What It Is. 
 
 a. Points to Remember About Raw Materials. 
 
 b. Distinguishing Manufacturing Processes and Meth- 
 ods. 
 
 e. Illustrations that Demonstrate Superiority in Manu- 
 facture. 
 
 d. Main Talking Points in Tabloid Form. 
 Division 4. — The Product — ^What It Does. 
 
 a. Analysis Chart of Uses, both developed and unde- 
 veloped, 
 
 b. Photographic and Documentary Evidence of Su- 
 periority. 
 
 c. Letters from Users — Fac-similes of Big Orders. 
 
 d. List of "Halo" Customers by Territory. 
 Division 5. — Standard Sales Presentation. 
 
 a. Importance of Standardized Sales Presentation. 
 
 b. Suggestions for Approaching and Interesting 
 Buyers. 
 
 e. Model Canvass with Sales Arguments in Tabloid 
 Form.
 
 274 MODERN SALIiSMANAGEMENT 
 
 d. The Demonstration. 
 
 e. Introducing Prices, Terms and Delivery. 
 
 f. Suggestions for Closing Sales — When and How. 
 Division 6. — The Order and its Execution. 
 
 a. Importance of Signed Orders — ]\Iake Them Out Care- 
 fully. 
 
 b. Reproduction of "Well-Executed Orders. 
 
 c. What a Salesman Should Know About Credits. 
 
 d. Following the Order Through the Factory. 
 
 e. "Don'ts" to Remember in Writing Orders. 
 Division 7. — General Instnictions and Rules for Sales- 
 men. 
 
 a. Regarding Relations with Various Departments. 
 
 b. Regarding Correspondence with House and with 
 Customers. 
 
 c. Regarding Cooperation with Advertising Depart- 
 ment. 
 
 d. Regarding Reports, Expense Accounts, and Route 
 List. 
 
 e. Regarding Attitude Toward Customers. 
 Division 8. — Answers to Common Objections. 
 
 These may be secured by a general letter to salesmen 
 first asking them to list objections they most frequently 
 encounter, and then furnishing digest of these objec- 
 tions to all salesmen, asking each one to submit his best 
 answer to each. Thus a composite answer will be se- 
 cured that represents the combined ability of the en- 
 tire staff. 
 
 Division 9. — "Don't" for Salesmen. 
 
 a. Concerning Personal Appearance, Voice and Poise. 
 
 b. Concerning Habits, Deportment and Industry. 
 
 c. Concerning Competition and House Policies. 
 
 d. Concerning Temptations Commonly Encountered. 
 
 e. General Reminders and Suggestions.
 
 STANDARDIZING THE WORK OF SELLING 275 
 
 217. Standardizing Salesmen's Equipment. — There is a 
 marked tendency to reduce the number of samples carried, 
 and to standardize salesmen's equipment. Salesmen in 
 some lines formerly traveled with 5 or 7 trunks. Now 
 they carry one trunk, and instead of showing everything 
 by samples, they show standardized samples, gelatine color 
 prints, cross section exhibits, portfolios of photographs, etc. 
 Even jewelry is now handled in this way. Salesmen's out- 
 fits are so thoroughly standardized that loss of time or 
 money is reduced to the minimum. Each outfit is num- 
 bered and imprinted, and charged to each salesman until 
 he returns it. Many firms now make it a practice to tag 
 each exhibit with uniform labels, on each of which is 
 printed a summary of the main talking points for each 
 article. 
 
 218. Standardization Through Symbols. — The standard- 
 ization of the titles of the goods through the use of symbols, 
 Dewey decimal system, etc., is now being adopted. The 
 aim is to conserve time in taking orders. The use of sym- 
 bolic and Dewey decimal systems makes it possible for 
 salesmen to avoid errors, eliminate loss of time and money 
 in writing and wiring, and also to simplify the book- 
 keeping. 
 
 Symbols are great time savers. One firm, for example, 
 utilizes the following symbols throughout its organization : 
 
 Rt — retail Spg — sporting goods trade 
 
 Wh — wholesale Drg — drug trade 
 
 So — scheme Sta — Stationery trade 
 
 Ex — Export Dgs — dry goods trade 
 
 Jly — jewelry trade Gnl — general store 
 
 Hdw — hardware trade, etc. Dpt — department store 
 
 A firm which has many products and many pieces of 
 advertising finds it most efficient to give each salesman a 
 loose-leaf portfolio in which all the available advertising
 
 276 MODERN SALESMANAGEMENT 
 
 matter is represented by a specimen of each, designated by 
 a symbolic mark for convenient reference. Generally a let- 
 ter desig^nates the kind of goods featured by the adver- 
 tising matter. 
 
 For example, B indicates booklet ; F indicates folder ; C 
 indicates catalog; L indicates letter. HP indicates house 
 paints; FV floor varnish; PB paint bnishes; FL follow- 
 up letter. Numbers indicate specific pieces of literature: 
 for illustration B27 HP would be the standard symbol 
 for a specific booklet upon house paints; F15 FV a specific 
 folder upon the subject of floor varnish. 
 
 Standardized Order Blanks for Use ii'ith Symhols. — One 
 paint house has standardized its entire line of products 
 and its printed matter with symbols of this character and 
 salesmen are furnished with standardized order blanks with 
 these symbols under various sub-heads, enabling them to 
 write the name and shipping instructions of each customer 
 and to indicate the quantity of goods and printed matter 
 without writing any descriptions. This makes the order 
 easy to handle and fill when received at the office. 
 
 At first glance it might seem as though salesmen would 
 resent being told or shown just how to route themselves, 
 just what streets to work in a town, just what trains are 
 best to enable them to work the most towns in the shortest 
 time. But when it is explained to them that the routing 
 has been figured out as a result of past performances, they 
 appreciate that their time and energy can be conserved. 
 
 219. Standardizing Salesmen's "Jumps." — One of the 
 reasons why a salesman's second trip over the territory is, 
 as a rule, more productive than his first, is because he is 
 more familiar with local and territorial conditions. The 
 result of standardizing his territory is to give him all the 
 possible information in advance. Thus his time is econo- 
 mized for actual sales work ; that is, time spent in contact 
 with prospects or customers.
 
 STANDARDIZING THE WORK OF SELLING 277 
 
 The Du Pont de Nemours Powder Co., for example, has 
 paid much attention to studying the short and long jumps 
 of their salesmen, with very satisfactory results. This 
 question is no longer left to the individual judgment of the 
 salesman. When it is considered that the time spent by 
 the salesman in actually consummating a sale is very much 
 less than the time he spends in getting to his customers, 
 the importance of economizing his traffic schedule is evi- 
 dent. 
 
 The National Biscuit Company has routing standardiza- 
 tion down to so fine a point that it instructs salesmen which 
 streets to walk down, how much time to give to each street, 
 when and where to take lunch, when and whether to take 
 a street car, etc. 
 
 220. Standardized Definitions. — It is quite important to 
 develop standard terms with standard meanings in order 
 to avoid confusion. Otherwise everyone 's definition of the 
 term "customer," or "prospect," etc., will differ. 
 
 Each business has its own special angles, but the terms 
 "customer," "prospect," etc., should have a generally ap- 
 plicable standard meaning. The best standard definitions 
 yet worked out are these: 
 
 "Customer" — A purchaser within the past six months. 
 
 "Prospect" — A concern which has indicated a desire 
 to do business and has been called upon within a year by 
 salesmen, or reached by circular matter, and which haa 
 responded within a year. 
 
 "Desirable Customers," (DC). — A concern which should 
 logically do business with the house, but which has not yet 
 responded. 
 
 Other more individual definitions applicable to the par- 
 ticular line of business or the concern's own conditions 
 should be developed and standardized.
 
 CHAPTER XXVI 
 
 INTJfcflLOCKING SALES AND ADVERTISING EFFORT 
 
 221. Should Functions of Sales and Advertising Manager 
 be Combined? — The combination of Sales and Advertising 
 Manager into one individual is undoubtedly wrong or- 
 ganization policy, though widely practiced, 
 
 A good organization demands that each individual pos- 
 sess the temperamental and technical qualifications for the 
 function he is assigned to. Yet, much as the two divisions 
 of work have in common, sales and advertising manage- 
 ment are nevertheless fundamentally different and separate 
 functions. In a number of important aspects (though not 
 all), they require absolutely different temperaments; while 
 the technique of each of the two jobs is absolutely differ- 
 ent in detail. And in each case this technique is worthy 
 of one man's entire brains and time, in any but a quite 
 small business. 
 
 Circulation, rates, typography, copy, artwork, trade- 
 marks, consumer psychology — all these and other subjects 
 are intricate and technical subjects which must constantly 
 be studied. There is an entirely separate and distinct 
 technique and a very real and intricate one for salesman- 
 agement. 
 
 A salesmanager, no matter how broad or how tempera- 
 mentally he may be said to be fitted for both sales and 
 advertising manager, cannot possibly give enough time to 
 each of the subjects to keep up with the technique of his 
 job in the way that he ought to, and at the same time be 
 all that a salesmanager ought to be. 
 
 278
 
 INTERLOCKING SALES AND ADVERTISING 279 
 
 The sonorous title of "sales and advertising manager" 
 is often retained by one man, even when the function of 
 advertising management is performed by an assistant. But 
 sometimes such men are more advertising manager than 
 salesmanager, or vice versa, and have the same fatal limi- 
 tations that a salesmanager has who can never quite feel at 
 home in advertising matters, or vice versa. The principle 
 is unsound. 
 
 222. Sales and Advertising Differences Defined. — The 
 great vital difference between sales and advertising man- 
 agement is that the advertising man concentrates his ef- 
 forts upon the mass-mind. In other words, he reaches the 
 typical prospect rather than the individual prospect ; he 
 aims at a composite picture rather than the individual pic- 
 ture. The study and influencing of this mass-mind is the 
 ad man's distinctive, special province. It is true that 
 the salesmanager includes in his broad scope the mass- 
 mind; but only in a secondary way. The practical opera- 
 tion of salesmanagement compels him to have a great deal 
 more to do with the individual mind than the mass-mind, 
 because the salesmen are the salesmanager 's chief responsi- 
 bility, since they close the orders in individual cases. If 
 he can 't teach these salesmen to close orders he is no sales- 
 manager, no matter how much he knows about the mass- 
 mind. Conversely, if an advertising manager doesn't 
 know how to get results from the mass-mind, he is no ad- 
 vertising manager, no matter how much he knows about 
 salesmanagement. In other words, the salesmanager 's 
 really biggest job is to understand the individual mind, of 
 both his salesmen and his prospects. This means that per- 
 sonality is a very important part of his equipment, and that 
 the study of personality is the chief technical part of his 
 job; which explains why the average salesmanager con- 
 stantly wants to discuss man-study, personality-analysis
 
 280 MODERN SALESMANAGEMENT 
 
 and management ; while the advertising man wants to dis- 
 cuss "copy" and psychology and influencing the public. 
 
 There are two separate kinds of genius needed in sales 
 development — one, the organized plan to get results from 
 other men by personal contact, and, two, the kind of 
 genius that concentrates on the state of the consumer's 
 mind ; that works on the entire group of consumers to in- 
 crease demand and good-will by means of the new tools of 
 printed page, psychology, and educational effort. 
 
 Eightly considered, both are technical departments of 
 the single function of sales development, and under the 
 most successful sales organization plans, both of these de- 
 partments — ^management of salesmen, and management of 
 advertising — are under a man higher up, a vice-president 
 in charge of sales, a director of sales, a marketing man- 
 ager, or head of distribution and sales, who has a wide 
 perspective over all selling efforts, and is not necessarily a 
 technician in any one branch of the work. 
 
 223. Organization Position of Sales and Advertising De- 
 partment. — It is important to clear up the relative author- 
 ity and responsibility and organization line of connection 
 between advertising and sales departments, as much of 
 the friction between these two departments arises from 
 lack of clarity on this point. There has been considerable 
 discussion as to the proper relative position of these two 
 departments. Sound principle would indicate that the ad- 
 vertising department be under the salesmanager, provided 
 that the salesmanager is a broad enough man of the cor- 
 rect vision and experience to properly function in two 
 very important divisions of sale. If the salesmanager is 
 really of sufficient breadth of knowledge and competence 
 to pass upon matters of advertising policy, combination 
 of authority (though not of technical operation) is the 
 soundest policy. If, however, there is a man higher up 
 in the position of vice-president or other official title who
 
 INTERLOCKING SALES AND ADVERTISING 281 
 
 is the man of broader sales vision in the company who 
 gives his attention and his broad authority in the field of 
 selling, then an advertising department should be on a par 
 and equal basis with the sales department. Matters of any 
 dispute arising between the two departments is settled 
 by this higher executive. It is wrong in principle and in 
 practice to have a salesmanager and an advertising man- 
 ager, both of whom lack vision for each other 's department, 
 and with no man higher up competent to see both the de- 
 partments from the broader angle and be in authority 
 over them and coordinate their work. 
 
 An advertising department under the authority and re- 
 sponsibility of the salesmanager is sound in principle ; but 
 the salesmanager should abide by the judgment of the ad- 
 vertising manager whose word should be regarded as final 
 on all matters of technique. Only on matters of policy of 
 a broad kind should authority be undertaken by the sales- 
 manager. It is fatal to have a salesmanager with author- 
 ity over advertising who has any conscious or unconscious 
 prejudice against advertising, or a predilection in favor of 
 other methods of selling as against advertising. 
 
 224. Viseing of Advertising Copy by the Sales Department. 
 — This is one of the most frequent causes of friction be- 
 tween sales and advertising departments. It springs from 
 the fact, already mentioned, that the salesmanager as a 
 rule is in the habit of dealing with individual minds and 
 the advertising manager with the mass mind. "When it 
 comes to judging advertising copy, the typical salesman- 
 ager is unable to appreciate the considerations which must 
 guide the good advertising writer; he cannot understand 
 the compromises and qualifications necessary in the writing 
 and planning of advertisements, in order that the largest 
 possible number of people in a given field for which the 
 advertising is written shall be convinced. He is unable to 
 see that statements and arguments which a salesman can
 
 282 MODERN SALESMANAGEMENT 
 
 "get away with" cannot possibly be used in copy appeal- 
 ing to a great number; and, conversely, that statements 
 prepared for a great number of people must necessarily 
 differ from statements which are made to an individual. 
 
 It is also a dangerous matter to present advertising copy 
 to a group of salesmen for opinions. Some wise sales or 
 advertising managers put such copy up to salesmen for 
 their opinion, merely as a diplomatic plan, and then with 
 an attitude of respect and thanks lay aside these com- 
 ments with but little consideration, unless the unusual hap- 
 pens and a really valuable and applicable idea develops. 
 The main value of getting salesmen's comments on adver- 
 tising copy is not in the detail handling of such copy, but 
 in its general broad mass effect upon dealers and distribu- 
 tors, and not upon consumers. The diplomatic handling 
 and merging of all these viewpoints is an important part 
 of sales department 's task, and an error on the part of an 
 advertising manager is frequently to ignore the dealer 
 psychology, and other aspects from the sales' organization 
 point of view. As a rule it is a wise policy to secure the 
 best judgments and opinions and suggestions from both 
 salesmen and salesmanager prior to the preparation of 
 copy, so that whatever suggestions they may have will be 
 incorporated in the finished product. 
 
 The viseing of advertising copy by a higher executive is 
 also a frequent cause of friction and inefficiency. This is 
 for the same reason outlined above; the average executive, 
 untrained in advertising technique, views the copy from 
 an individual standpoint and not from the angle of tech- 
 nical preparation to meet the audience it must convince. 
 It is an excellent policy for executives to make sug- 
 gestions only and then to leave those suggestions to be 
 handled as thought best by the final arbiters of the ad- 
 vertising copy, the advertising manager and the advertising 
 agency.
 
 INTERLOCKING SALES AND ADVERTISING 283 
 
 It is a fairly common fault among advertising men to 
 Qse language of a trifle too much literary imagination, 
 •or to be unaware of some of the trade strategic points of 
 view that might arise in connection with it. This tendency 
 with some advertising managers must be guarded against; 
 but as a rule the advertising agency and advertising man- 
 ager, working together, eliminate impracticability and 
 secure a dependable result. 
 
 225. Increasing the Salesmen's Knowledge of Advertising. 
 — Instead of operating at cross purposes it is now modern 
 practice for the salesman as well as the salesmanager to 
 become semi-advertising men, while the advertising man 
 becomes practically a salesman as well. 
 
 The reason for this readjustment can be outlined about 
 as follows: 
 
 1. Because in order to push goods with both retailer 
 and jobber, it is necessary to both give indication of exist- 
 ing demand, and to assist in stimulating demand and 
 meeting it. 
 
 2. The modern conception that what the salesman is 
 selling is not goods to put into a store ; but demand for 
 goods ; which introduces the question of what is to be done 
 to help move the goods off the shelves. 
 
 3. The greatly increased distances to markets available 
 and the greater possibilities of nationalizing demand, which 
 makes it necessary to use the printed word as a salesman, 
 in addition to personal call. 
 
 4. The possibilities of efficiency and economy through 
 the intelligent and snappy use of words in doing cultiva- 
 tion work among dealers, follow-up and general dealer 
 stimulation and cooperation. 
 
 These main divisions of facts have brought about the 
 situation whereby it is almost imperative that salesmen be 
 better informed about advertising and handle it in a prac- 
 tical manner.
 
 284 MODERN SALESMANAGEMENT 
 
 226. Advertising Cooperation Through, the Sales Manual. 
 — Many firms as yet do not have a standard sales manual 
 for their salesmen, and they by all means should have it. 
 
 The sales manual is simply a standardized form of out- 
 lining the arguments for the proposition, the handling of 
 objections and the special ideas, policies, instructions and 
 manner of approach advocated by the concern. 
 
 The exact manner of presenting the advertising of the 
 house to the client, and the exact manner in which the 
 salesman is to make use of the advertising of the house is 
 thus formulated. The best form of sales manual is a loose- 
 leaf book. This gives the sales or advertising manager a 
 chance to keep absolutely up to date the instructions re- 
 garding any advertising the house is doing, and the manner 
 of its presentation to the trade, or any emergency matter 
 which by stress of competition or other factor needs to be 
 gotten out to the salesmen and presented in a particular 
 manner to the trade. 
 
 The first practical thing to be done in the sales manual 
 is to outline the house policy with respect to advertising 
 and its relation to the trade which the salesman sells, and 
 thus give the salesman what is very greatly needed, a real 
 fundamental understanding of what and vv'hy the house is 
 advertising. Believing ofttimes that they themselves are 
 the makers and creators of the business, they are likely to 
 transmit this impression to the retail trade ; when from the 
 point of view of the house for which they work, they should 
 boost the advertising idea, not only to get the retailers to 
 do more advertising, but also to appreciate what advertis- 
 ing the manufacturer may be doing. The house's effort 
 to make sales, not the salesman's personality, need to be 
 conspicuous and telling. 
 
 There are plenty of evidences that in order to get the 
 maximum results from salesmen, nothing better can be 
 done than to make enthusiasts on the subject of advertis-
 
 INTERLOCKING SALES AND ADVERTISING 285 
 
 ing out of each single one of them. By doing this through 
 the means of a sales manual, instilling with great emphasis 
 the importance of being boosters for the advertising done 
 by the house, a great force can be let loose which will un- 
 questionably return profit through the increased interest 
 which dealers will take in the subject. 
 
 In the sales manual the salesmen should be told how 
 from the point of view of the retailer, the house is spending 
 a very large sum of money and doing its very utmost to 
 move the goods off the shelves rather than merely to sell 
 him a bill of goods. 
 
 After this has been properly emphasized as a strong 
 house policy, details should be given as to the houses' ad- 
 vertising effort and plan. Not a single thing should be 
 slighted. Even if calendars or souvenir buttons or what- 
 not may be distributed through general advertising to 
 consumer, or if handsome catalogs, circulars, etc., are being 
 so distributed, the full details, the numbers and the ex- 
 pensiveness per individual should be told the dealer, so 
 that this detail will reinforce in his own mind the impres- 
 sion of assistance on a large and generous scale. 
 
 In addition to the sales manual carried by the salesmen, 
 there should be a special salesmen's kit or scrap book, 
 containing examples not only of all the periodical advertis- 
 ing, including trade paper advertising done by the house, 
 but also all the booklets, catalogs, and special pieces of 
 literature, novelties, etc., which the house produces. Thei 
 dealer desires to be definitely shown exactly what effort is 
 being made to help unload the stock it is desired that he 
 should buy. 
 
 227. Making Salesmen Sell Advertising Assistance Rather 
 Than Merchandise. — Althouf^h in the past the dealers and 
 traveling salesmen used up considerable time in analyzing 
 the mechanical details of an article, the present practice is 
 somewhat different. Wise retailers spend comparatively
 
 286 MODERN SALESMANAGEMENT 
 
 little time on the work of buying, and mucli more upon the 
 task of moving goods off the shelves. In other words, they 
 spend their best energies not upon getting goods into the 
 store, but in getting them out. 
 
 A great deal of emphasis is naturally placed upon the 
 kind of advertising cooperation which the manufacturer 
 furnishes the retailer when the goods are sold. As a mat- 
 ter of fact, there are many manufacturers, notably in the 
 ready made clothing and men's wear field, who instruct 
 salesmen actually to talk little or nothing about the goods 
 unless requested but mostly about the advertising assist- 
 ance they will give. Even an agricultural implement house 
 has hired salesmen, not for their knowledge of implements, 
 but for their knowledge of advertising; realizing that the 
 hardest part of their task is to sell the selling assistance 
 in the form of advertising which the firm is rendering to 
 its dealers. This is based on the principle that no dealer 
 really buys merchandise, per se, but possibility of making 
 sales at a profit. This makes the manufacturer's advertis- 
 ing assistance the decisive factor. 
 
 The salesmen should, in many cases where the situation 
 seems to call for it, really be specialists and experts in 
 analyzing the retailer's advertising needs, and in advising 
 him on general sales development for his store. 
 
 228. Salesmen and Dealer Help Advertising. — One of the 
 greatest evils inherent in the large amount of dealer help 
 matter which advertisers prepare for retailers, has been 
 that it was carelessly and lavislily distributed, without 
 proper safeguard by salesmen, and that in many cases 
 it has gone into the waste basket or forgotten and ruined 
 in damp basements. 
 
 All of this waste might have been prevented by intelli- 
 gent cooperation and handling of the advertising by the 
 salesman. 
 
 This sound shift of viewpoint by the retail buyers bas
 
 INTERLOCKING SALES AND ADVERTISING 287 
 
 made necessary some changes in selling front (in fact 
 manufacturers have to a considerable degree helped to de- 
 velop this change). It compels salesmen, if they wish to 
 be granted some of a dealer's time, to talk turnover and 
 methods of getting goods sold rather than specific merits of 
 the goods. That, in the case of a house of established posi- 
 tion, is assumed to be secondary and taken for granted. 
 
 The salesman of to-day is therefore drilled quite as care- 
 fully, if not more carefully, in the advertising and retail 
 merchandising side of business as in the arguments about 
 the goods. 
 
 229. Salesmen's Cooperation with Advertising Inquiries. — 
 Many times the consumer advertising is done not nearly 
 so much to stimulate the consumer as to stimulate the deal- 
 ers. It is therefore vital to check up whether or not it has 
 succeeded in stimulating the dealers and whether they have 
 noticed it. 
 
 In addition to this is the consideration of referring in- 
 quiries from consumer advertising to salesmen as a bit of 
 ammunition for them in landing a dealer or stimulating 
 a dealer already on the books. By proper cooperation and 
 assistance from the advertising department, all consumer 
 inquiries coming through the home office can immediately 
 be referred to the salesman in that district and utilized 
 by him when calling on the dealer as an additional lever 
 for business. 
 
 It is even posssible, when individually desirable, to have 
 a more or less elaborate system by which the dealers are 
 notified by carbon copy of a consumer inquiry and ap- 
 prised of the date of the arrival of a salesman ; the sales- 
 man each time being also notified of the consumer inquiry 
 and directed to include on his route the town from which 
 the consumer inquiry originated. In this way the sales- 
 man can be routed as emergency seems to make desir- 
 able, as the result of the consumer inquiries, if it is a
 
 288 MODERN SALESIVIANAGEMENT 
 
 business in which such a thing is possible or practical. 
 
 The salesman can also be used to stimulate the dealers 
 personally to yield up their mailing list for the mailing 
 of the special booklet issued by the house, so that it will 
 reach the exact people most desired. Frequently when 
 dealers will not send a list of their best prospects and cus- 
 tomers, they will personally give to a salesman a number 
 of such names. In a limited field like the piano business 
 this probably would be particularly adaptable. 
 
 230. Advertising's Part in Sales Conferences and Con- 
 ventions. — In many cases a long-rooted prejudice against 
 advertising or an indifference to it exists among the sales- 
 men, and it is not an easy job to turn them into enthusi- 
 asts. Only at sales conferences and sales conventions, 
 where personal contact is possible, is there any real hope 
 of instilling the maximum amount of enthusiasm for ad- 
 vertismg in salesmen. 
 
 The practical methods by which this goal is reached, or 
 at least started, included among others something like the 
 following : 
 
 1. Addresses by the advertising agent or advertising 
 manager of the house. 
 
 2. Addresses by specially hired professional speakers 
 who understand the subject and are guaranteed to stir 
 enthusiasm for advertising. 
 
 3. Free and open discussion on the subject, prepared 
 for in advance by planting one or two men who will be 
 sure to make a hit on the subject, by careful preparation. 
 
 4. A pictorial presentation of the advertising of the 
 iiouse and a scheme to enthuse through appeal to the eye. 
 
 It is sometimes impossible to get all the salesmen to- 
 gether at a central point, in which case it is sometimes 
 most practical to organize district conferences in the same 
 way. Some concerns travel a special representative who 
 is carefully prepared to educate and enthuse salesmen on
 
 INTERLOCKING SALES AND ADVERTISLNG 289 
 
 the subject of the house's advertising, and whose talk be- 
 fore the district group, or even simply individual sales- 
 men in twos, threes, or more. 
 
 231. Advertising to Cut Down Introductory Sales Ex- 
 penses. — One of the strongest arguments to use upon sales- 
 men as to the general value of boosting advertising, es- 
 pecially in direct-to-consumer technical lines, is the fact 
 that advertising cuts down the introductory work for sales- 
 men and gives them the easier and more profitable work 
 of ''closing" sales rather than doing missionary work 
 upon them. The dealer or consumer who has been properly 
 canvassed in advance by the house, is in a much more re- 
 ceptive mood and is ready to take up the final rather than 
 the preliminary facts in a campaign when the salesman 
 calls. 
 
 Another fact which is of strong value, is that it takes 
 selling out of the field of chance and personal pull and 
 puts it on a plane of demand from the consumer, and thus 
 gives the salesman a stronger opportunity for holding his 
 trade than without the good will created by the advertising. 
 These two points properly hammered in will not fail to con- 
 vince any body of reasonable salesmen. 
 
 A number of very large concerns actually use the sales- 
 men themselves to put out various local forms of advertis- 
 ing. For instance, the decision as to what newspapers to 
 use or when to insert local advertising on some cooperative 
 part payment plan, is frequently left to the salesmen if 
 they are properly informed and advised of the house's 
 policy.
 
 CHAPTER XXVII 
 
 THE STUDY OF AGGRESSIVE RETAIL MERCHANDISING 
 
 232. Why Retail Merchandising Insight Is Essential in 
 Salesmanagement. — The average manufacturer is depend- 
 ent upon retail distributors and he can succeed only in 
 proportion to the aggressiveness of retailers in his field. 
 Salesmanagers, therefore, must, to some degree, master the 
 principles of aggressive retailing so that policies of dealer 
 assistance may be geared up to the actual retailing situa- 
 tion in an effective manner. 
 
 The salesmanager may need to undertake to tune up the 
 retailers in his line of trade and endeavor to lift their col- 
 lective standard of creative sales efficiency to higher levels. 
 Certainly he needs, under any circumstances, to broaden 
 his knowledge of retailing, if only to be a better judge of 
 the effectiveness of his own organization's efforts to create 
 dealer helps and advise retailers. It must not be forgot- 
 ten that the coming of the chain-store has brought a 
 greater degree of aggressive, intensive retail salesmanship 
 into operation than has ever been known, and that sales- 
 managers owe it to retailers competing with chain-stores to 
 help work out solutions to their sales problems. 
 
 A knowledge of the principles of aggressive retailing — 
 the art and science of retail sales promotion as worked out 
 by the intensive students of the subject, both from the point 
 of view of the manufacturer and the retailer — is of the 
 highest value to any salesmanager. In some fields the de- 
 gree of his grasp of aggressive retail merchandising will 
 determine his success or failure. Many sales policies are 
 
 290
 
 AGGRESSIVE RETAIL MERCHANDISING 291 
 
 doomed to failure from the start because conceived without 
 due insight into retail merchandising. Mediocre success in 
 selling a line dependent upon retail effort is attributable 
 to mediocre knowledge of principles of retail merchandis- 
 ing. 
 
 Herewith are assembled some outstanding principles, 
 ideas and suggestions which do not cover the whole sub- 
 ject, of course, but which give some idea of the scope and 
 spirit of it. 
 
 233. Selling Sales, KTot Goods, to Dealers. — At the very- 
 first approach to a retailer, the modern aggressive point of 
 view is important to assume. The point of view is all im- 
 portant. No dealer is in the business of buying — he is 
 a seller; therefore it is unsound to talk to him purely in 
 buying terms. 
 
 The thought of monej^ coming into a man's pocket is 
 very pleasant, but the effect of buying goods and paying 
 for them is not quite as pleasant. The spirit of construc- 
 tive selling to retailers is to say to him, "You work out 
 these plans I am suggesting, and you will find that you 
 will make three or four times as much as you ever made be- 
 fore." In the end, of course, he cannot do that unless 
 he buys the goods, but if you have your plan worked out 
 and impress on him how much additional profit he is going 
 to make you have done a great deal — not only to sell your 
 goods but to lay the foundation for repeat business. 
 
 The average retailer in a small town would think 500 a 
 tremendous quantity; he usually thinks fifty or one hun- 
 dred all he wants to buy. His vision of sales should be 
 raised by saying, ' ' Take for instance the number of people 
 you have selling. Assume there are three, and each per- 
 son sells three articles a day. That would mean nine a 
 day, which would mean 270 in thirty days. Why, five 
 hundred is going to last you less than two months. That 
 gives you the advantage of big window displays, big coun-
 
 292 MODERN SALESMANAGEMENT 
 
 ter displays." Of course it is not wise to overload a 
 dealer, but it is very wise to build up his selling capacity. 
 He should be developed toward the point where, when he 
 makes up his mind to buy, he at the same time makes up 
 his mind just what ad he will run; just what course he 
 will follow ; he must really sell the goods in his mind 's eye 
 before he has bought them. 
 
 The science of turnover doesn't mean that a dealer can- 
 not buy big quantities. The all-important thing is to have 
 a campaign worked out when buying, and jump into it just 
 as soon as he gets the goods — even before, in order to turn 
 the goods over. 
 
 234. Surveys of Retail Possible Business. — A retailer is 
 merely the manufacturer in miniature, so far as the main 
 essential of business goes — ^that of selling the goods. There- 
 fore it is profitable to use the same principles of intensive 
 cultivation and study; of applying engineering principle 
 and more exact method of analysis. The chain-stores have 
 demonstrated this, in their highly scientific study of pass- 
 ers-by, location values and the relative turnover and profit 
 on individual items. 
 
 A retail store has a specific, chartable radius of appeal ; 
 a specific, tabulatable number of possible customers of 
 various grades, and a specific range of articles possible 
 to sell; and a specific average quantity which it can prob- 
 ably sell in any given period. Its status in competition 
 is a knowable thing; so is its good-will and standing with 
 customers. In short, the facts about the operation of a 
 retail business may almost as accurately be forecasted in 
 advance of the actual operation as after the step is irrev- 
 ocably taken. It is not necessary to leave much to 
 chance ; and a good survey of a store 's scope and possibili- 
 ties is one of the best investments possible to make. An 
 interesting plan is to cooperate with live manufacturers in 
 taking a survey of the business. This applies with es-
 
 AGGRESSIVE RETAIL MERCHANDISING 293 
 
 pecial force to an exclusive agency plan of selling. A 
 manufacturer needs just as much as a retailer to know sales 
 possibilities. 
 
 235. Getting Power and Punch Out of Advertising. — 
 There is a great deal af advertising of many kinds done 
 to-day by both manufacturer and dealer, and much of it is 
 of very high grade. Theoretically it should perform very 
 efficiently. Yet the bulk of it operates clumsily and 
 wastefully for one chief reason — lack of coordination and 
 organized cooperation. The sales promotion manager, Mr. 
 Demoville, of the United Drug Stores, has put this situa- 
 tion in retail efficiency very graphically, showing how ad- 
 vertising alone and unsupported is small in value but prop- 
 perly supported can be of great value, as follows: 
 
 Advertising alone 10% 
 
 Advertising and window display 20% 
 
 Advertising, window display and counter 
 
 display 25% 
 
 Advertising, window display, counter service 
 
 and salesmanship 50% 
 
 All of the above, plus salesman's bonus. . . .100% 
 
 The aggressive attitude toward the selling of goods must 
 be developed so that the above facts will be visualized, and 
 the modern attitude taken by the retailer toward the goods 
 in his store. The attitude of mind must be changed from 
 that of an order-filler to that of an order creator. There 
 must be a realization that to depend on the drifting in of 
 customers, or the creation of demand by manufacturers 
 only is wrong in principle; that the same aggressiveness 
 displayed by the manufacturer in advertising must be 
 added to and supplemented by the retailers' similarly ag- 
 gressive advertising. 
 
 236. Equipping Sales People to Push Goods. — Mr. Demo- 
 ville of the United Drug Co. further says: "It is really
 
 294 MODERN SALESMANAGEMENT 
 
 surprising how little the average clerk knows about the 
 product he is selling; how few clerks really can talk in- 
 telligently on much of the goods they sell. To meet this 
 situation, in our intensive backing up, the United Drug 
 Co, got out a series of books descriptive of the products 
 sold in different departments of our business. We offered 
 a series of prizes for the best list of questions and answers 
 pertaining to the articles sold in the toilet goods depart- 
 ment. We got out another book on rubber goods. 
 
 "We interested experts all over the country to get these 
 facts from different people. A very important thing to 
 tie up with any work of this kind is to say, as we suggest 
 to our managers, 'take these books, give them out to your 
 sales people, and tell them that you are going to have a 
 little get-together meeting. At this meeting there are go- 
 ing to be ten questions asked. Every one of these questions 
 are answered in this book. The person who passes the best 
 examination is going to get ten dollars.' The first book 
 we got out on rubber goods proved conclusively the value of 
 this method." 
 
 237. Profit-Sharing for Salespeople. — Intensive merchan- 
 dising demands that you have to hold out some incentive to 
 salespeople. Some form of profit sharing is necessary to 
 get them to do aggressive work. Department stores fre- 
 quently use a percentage bonus plan; even a conservative 
 London store like Harrod's adopts this plan. 
 
 The United Drug Co., in operating a very intensive cam- 
 paign for one preparation, allows five cents on a dollar 
 price to be given to the clerk in the store. It believes 
 that in order to get advertising backed up, it is necessary 
 to give that five cents on each package. In some way the 
 man behind the counter has got to be interested in back- 
 ing up goods. It cites an instance in Texas where a cer- 
 tain retailer sold five thousand cans of a certain article, 
 stimulated by this plan.
 
 AGGRESSIVE RETAIL MERCHANDISING 295 
 
 The great trouble as far as sales help is concerned is 
 that the average proprietor is not willing to do this educa- 
 tional work and profit-sharing and until recently it was 
 almost impossible to get him to pay help in proportion to 
 sales. Self-interest is an element of human nature that 
 must be recognized. A sales-person is willing to do addi- 
 tional work, study and put in additional time in proportion 
 to what he thinks it is going to benefit him, or her. 
 
 A case is mentioned of a $15.00 a week saleswoman with 
 an average sales record of two and a half times the amount 
 usually sold. She had a knowledge of human nature and 
 a knowledge of the goods. This woman would be a very 
 much cheaper person behind the counter at $40 or $45 
 a week than the average person at fifteen dollars a week. 
 A retailer should say to a clerk, "This position has got 
 to be worth so much money to you. If you cannot make 
 that, it will simply show you are not suited for the posi- 
 tion and I will not want you at all." 
 
 237. Getting Salespeople to Think. — The salespeople all 
 over the country in many instances do not properly repre- 
 sent the store. There is only a limited number of mer- 
 chants who appreciate what this means. 
 
 It is very important to do everything possible to get the 
 clerks to think. The United Drug Co. offers a series of 
 prizes every three months ; sometimes shares of stock in the 
 company, or trips to different points in the United States. 
 These contests have done a great deal of good. Prizes for 
 any selling ideas, anything that increases the efficiency of 
 the Rexall Drug Stores, are given. 
 
 Oftentimes the proprietor or the best posted man in the 
 store is in the back part of the store during busy hours at- 
 tending to matters somebody else could easily attend to, 
 while a fifteen-dollar-a-week clerk is up at the front attend- 
 ing to the customers. 
 
 This is a serious inefficiency. Constant original thinking
 
 296 MODERN SALESMANAGEMENT 
 
 needs to be done. If a customer asks for one thing', the 
 psychological time is right at that moment to place before 
 him something else along that particular line associated 
 with the article asked for. If a person asks for a tooth 
 brush, there should be shown, in the tray containing it, 
 everj-thing that is sold for the teeth. The instructions to 
 the clerk would be that if one of these articles is called 
 for he must take out that tray, and must study the cus- 
 tomer 's needs in a thoughtful manner. 
 
 238. Fig^htingf Invisible Competition. — The unthinking 
 retailer will ususally be found pessimistic about ordering 
 goods, and full of rule-o '-thumb explanations why. Few 
 of these explanations are correct, except possibly the mail 
 order explanation, which as a rule is even more serious 
 than he knows. 
 
 The competition of the nearby larger center is often a 
 serious factor, which cannot be overcome except by the 
 lever of the smaller costs which a small town dealer should 
 have as his natural ally, because of lower rents, etc. The 
 greater degree of local service possible is another ally 
 which the small dealer has. Yet both these natural allies 
 are far too often left unused, with the natural result that 
 the scales tip toward the invisible competitor. 
 
 The most ruinous ''invisible" competitor of many a re- 
 tailer is really not invisible at all — except to himself — 
 because it is himself. He ruins his own opportunities by 
 charging excessive profits, by laxity, by carelessness, by an- 
 tagonistic practices and by general absence of ag^essive, 
 analytical merchandising. 
 
 To this type of dealer, the live salesmanager, with a re- 
 tail merchandising vision, can be an awakener and a de- 
 veloper. It is a slow process, but even at a slow pace the 
 work of developing retail efficiency is highly worth while, 
 because of the great number of retailers. A salesmanager 
 without a policy to meet his retail limitations is damming
 
 AGGRESSIVE RETAIL MERCHANDISING 297 
 
 up his own forward advance. The retailer's invisible com- 
 petition is like a prison around him, from which only the 
 manufacturer's constructive effort may unlock him, be- 
 cause the manufacturer has the national vision, the large 
 profit incentive to investigation and study which the re- 
 tailer has not. 
 
 239. Decrease Cost of Doing Retail Business. — It is 
 the opinion of retail experts that most retailers could do 
 from 20 to 30% more business with the same amount of 
 help and general overhead, if their merchandising was on 
 a more enlightened and aggressive plane. It will be seen, 
 therefore, how important the study of aggressive merchan- 
 dising is, since it means the difference to many retailers 
 between profit and loss, between working at a mere living 
 wage or making a desirable income; or even between suc- 
 cess and bankruptcy. 
 
 The cost of doing business in various retail lines varies 
 of course considerably; but the average cost in all lines 
 is considerably beyond the efficient point, or the cost fig- 
 ure which the livest and best stores achieve. In fact, they 
 are as a rule 25% higher than they should be. A well 
 organized drug store, for instance, can be operated at an 
 average cost of selling of 11%, whereas the actual average 
 sales expense runs up to 16 and 20% — chiefly for lack of 
 aggressive selling policies. 
 
 The general cost of doing business in various retail lines 
 is interesting to note: 
 
 Department Store 26.4% 
 
 Small Dry Goods Store 16.3% 
 
 Shoe Store 23.3% 
 
 Credit Grocery 19.2% 
 
 Cash Grocery 14.5% 
 
 Hardware Store 19.4% 
 
 Clothing Store 20.3%
 
 298 MODERN SALESMANAGEMENT 
 
 Drug Store 24.6% 
 
 Furniture Store 23.4% 
 
 Jewelry Store 25.3% 
 
 Lack of understanding of turnover — simply another 
 name for aggressive, swift-moving merchandising — is re- 
 sponsible for the most prominent fault in retail costs — 
 depreciation. It ranges from 1.5% to 5%. This item 
 of depreciation has tempted many retailers into bad mer- 
 chandising tactics of one sort or another, and has upset 
 their first calculations of profit. The item of rental is an- 
 other large source of loss. Retail rental, properly under- 
 stood, is a science based mathematically upon number of 
 passers by per average business day. Rents not based on 
 this measure are usually an unproductive drain on cost of 
 doing business. 
 
 Costs of doing business cannot be expected to decrease 
 except by application of aggressive merchandising, as all 
 cost tendencies are upward ; as illustrated by the fact that 
 from 1883 until 1912 retail selling costs doubled. 
 
 240. The Turnover. — No retailing subject is so little un- 
 derstood by the average retailer or so stubbornly ignored 
 as a principle. The average retailer fixes his eyes upon 
 his cost of doing business and endeavors to operate his buy- 
 ing solely on that basis. He wants to judge the discounts 
 offered him only by the measure of his cost of doing busi- 
 ness, forgetting that he could make a great deal of money 
 out of an article which offered him only 1% discount if he 
 could turnover such goods with sufficient volume and 
 rapidity. At the same time he might purchase goods of- 
 fering 100% discount and if they stayed on his shelf for a 
 year or two (as such goods frequently do) he would still 
 fail to make a profit. 
 
 The manufacturer, therefore, who has, by advertising 
 and development work, built up a turnover value for his
 
 AGGRESSIVE RETAIL MERCHANDISING 299 
 
 goods which permits a dealer to make the profit attached to 
 it, not once a year, but three, four or five times a year or 
 more, is in reality offering a discount just that many 
 times more than the discount of the other article, which 
 turns but once. The grocers have for years argued against 
 the discount offered, for instance, on Uneeda biscuit, 
 whereas the very unusual turnover of 52 times is possible 
 on this article. Retail turnover value costs the manufac- 
 turer much money to develop, and he quite logically asks 
 the dealer to adjust the rate of discount to the speed of 
 turnover, which he has paid to build. The dealer is never- 
 theless still the financial gainer unless he can't even be 
 ordinarily efficient in handling his stock. 
 
 The prejudice still existing among many retailers against 
 advertised goods because of moderate or low margins has 
 retarded many retailers from succeeding to a greater de- 
 gree, and has actually driven many good articles into the 
 chain stores and into the 5 and 10 cent stores, which ap- 
 preciate to ti e full the significance of small margins many 
 times multiplied on goods which have been made known 
 by the manufacturer and require no effort to sell. 
 
 Turnover is now made the religion and disciplinarian of 
 successful retailers large and small. It is analyzed in de- 
 tail so that no unprofitable merchandise of any kind or 
 description is permitted to remain beyond the dead-line of 
 turn-over time. There is a mathematical ratio of falling 
 value of merchandise on a dealer's shelves in relation to 
 the march of time, and the live retailer never sits idly by 
 while that ratio creeps upward into his profits. A manu- 
 facturer's policy in selling to retailers requires to be ac- 
 quainted with retail turnover so as to avoid trade friction. 
 
 241. Departmented and Itemized Costs. — Perfect control 
 over a retail business is impossible without departmented 
 costs, and these departmented costs can be made the means 
 to steer the business in a very deft way toward greater
 
 300 MODERN SALESIMANAGEMENT 
 
 profit. Some of the biggest mereliants in the country have 
 no idea of the cost of domg business in different depart- 
 ments. In arriving at these figures it is necessary to 
 divide the total expense of rent, light and heat by the 
 amount of feet and get the amount covered per foot ; then 
 apportion the amount to be charged to the front part of 
 the store, the central part of the store and the back of the 
 store. Then take the amount of capital invested in fix- 
 tures, etc., and deduct ten per cent for depreciation, ten 
 per cent for interest, taxes and insurance. Department 
 costs require also consideration of capital invested — they 
 should be about three per cent higher than when they do 
 not consider capital invested. 
 
 The prescription business, considered by some to be the 
 most profitable part of the drug business, is not profitable ; 
 a fact not uncovered except by departmented costs. Goods 
 heavily advertised can be sold for very much less cost than 
 anything else in a store. Proprietary articles can be sold 
 for a cost of fifteen per cent. 
 
 A dealer without departmented costs will take up things 
 that don't pay him, spend time on them to the neglect 
 of his more profitable lines. He will also delude himself 
 into believing certain departments are profit makers to 
 a much greater degree than they are. A druggist who es- 
 timated his soda fountain costs to be 27% was shown by 
 a cost expert that it was 35% ; that his cigar department 
 which he thought was costing 22% (and was therefore 
 neglecting) was costing only 11%. 
 
 Retail cost keeping may be developed to many surprising 
 fine points, such as the fact that retail costs vary even on 
 individual items in the same class. A dozen knives or 
 spoons cannot have the same costs, even though they were 
 paid for at the same price each and occupy identically the 
 same amount of store space each. The finely split cost 
 analysis will show that whereas the first knife cost possibly
 
 AGGRESSIVE RETAIL MERCHANDISING 301 
 
 11%, the last one sold cost 40% or more. The possibili- 
 ties of itemized costs are readily seen when endeavoring 
 to keep vividly clear the factor of cost, and operate a store 
 on cold facts of profit making. 
 
 The salesmanager 's interest in departmented and item- 
 ized costs is obviously keen, as it gives him the opportun- 
 ity to make comparisons and contrasts in his analysis to 
 retailers of the place in the dealer's profit-making of his 
 article or brand. 
 
 242. Increasing the Average of Sale. — Aggressive retail 
 merchandising demands the expansion of the average 
 amount of sale made. The mere automaton dealer, the 
 "cash register" type of retailer, merely sells the customer 
 what the customer practically insists on buying. The 
 amount in money that the average customer spends on his 
 visit to the store is merely the minimum of sales possi- 
 bility; merely the starting point for good aggressive re- 
 tailing. It is now well recognized that the principle de- 
 veloped by department stores years ago, of making no 
 effort to sell and of letting customers wander about and 
 "sell themselves," and of employing only the cheapest 
 help, very slightly trained, is a merchandising mistake. 
 
 It is now being superseded by a higher grade of retail 
 salesmanship, more on a par with European standards, 
 where the efforts of salespeople to sell more than the first 
 automatic sale is not resented by customers because it is 
 done in a trained and intelligent manner. It is only the 
 crude effort to sell which offends; and the supposed prefer- 
 ence of American shoppers for never being asked to buy 
 when in a store is only based on the fact that in practice 
 such selling effort was usually crude and valueless to the 
 customer. Good suggestions, well-informed, courteous 
 salesmanship is never out of place in a store under any 
 circumstances. Furthermore, the once common American 
 custom of leisurely shopping, which gave time for custom-
 
 302 MODERN SALESIVIANAGEMENT 
 
 ers to review tlieir needs in their own time and manner, 
 has disappeared. Women as well as men are as a rule too 
 busy to spend a great deal of time ''shopping around"; 
 stores report a distinct decline in this old habit. 
 
 The modern idea is therefore the careful training of 
 salesmen to increase the average of sale. If the average 
 of sale is 33 cents, it needs but an increase to iO cents to 
 double the profit. An intelligent effort along this line is 
 known to produce an increase of 10 to 15% in average daily- 
 sales. In this way the net profits of a store may be 
 doubled with the same amount of help, for the increase 
 represents a greater ratio of profit by far than the lower 
 amount. The effects of this are seen in the annual sales 
 volume of exceptional retailers in small towns who, judged 
 by the average achievement of other retailers in their class, 
 would be doing fairly well to sell $40,000 annually, but 
 who do more than double this amount.
 
 CHAPTER XXVIII 
 
 ^ WORKING WITH THE JOBBER 
 
 243. Necessity of Carefully Laid Jobber Policy. — At the 
 very outset of establishing jobber relationship, looking to- 
 ward stimulation of demand, it is very necessary to lay 
 down rigidly fair and thorough-going policies. The main 
 principles of such policies must be uniform and unbending 
 equality of treatment and a square deal. The spirit of 
 such cooperation must also be that of affording the jobber 
 every advantage, even to the point of temporary loss and 
 inconvenience. It sometimes pays the manufacturer to 
 deviate from rule (though not from principle) and be in- 
 consistent, but never to try to "cut corners" in jobber 
 policy. 
 
 xThe chief factor around which such careful policy must 
 
 be built is of course price, Price is the foundation upon 
 
 which the jobber does business, as he exists solely because 
 of a price margin given him in the transaction for a mid- 
 dleman's service. Therefore a jobber is treated unfairly 
 and dishonestly by a manufacturer when the dealer in the 
 jobber's territory is granted jobbing prices, or even when 
 orders are taken direct at dealer prices, or when special 
 inducements are held out, or lures or incentives, however 
 subtle or hidden, given for dealing direct. It is sometimes 
 sound policy for manufacturers in a situation where they 
 are not wholely and logically dependent upon jobbers — 
 to straddle both methods of selling, direct to retailers and 
 through jobbers. But it is necessary to most carefully 
 analyze the basic situation at the start before any sueli 
 
 303
 
 304 
 
 MODERN SALESINIANAGEMENT 
 
 policy is adopted, in order that the very life of the busi- 
 ness may not be threatened. It would be ruinous to make 
 a fundamental error in this regard. The wide-spread 
 enmity of jobbers toward an article which can only be 
 distributed logically through jobbers is, of course, prac- 
 tically fatal. For articles which have a sufficient sale in 
 the territories which can be reached direct, and which by 
 reason of weight and other considerations can be supplied 
 
 •Largest Jobbing Points 
 
 olfext " 
 
 .Snail 
 
 NATIONAL JOBBING CENTERS AND SUBSIDIARY DISTRIBUTING POINTS 
 
 direct, the jobber may be dispensed with. On the other 
 hand, when jobbers are not getting the best out of a terri- 
 tory, well-considered policies must be laid to stand behind 
 the jobbers and push, if the article is a logical jobbing 
 article; or perhaps if it is not, an entirely new policy of 
 distribution may need to be developed. 
 
 Once having decided to get behind the jobbers with as- 
 sistance and stimulation, a manufacturer can aiford to 
 "lean backward" in the earnest effort to cultivate by un- 
 questionable proof of fair dealing, a solid feeling of mu- 
 tuality of interest between jobber and manufacturer. The
 
 WORKING WITH THE JOBBER 305 
 
 technique for doing this is varied and can be developed 
 successfully in any line of business. 
 
 244. The Missionary Plan of Assisting Jobbers. — In all 
 the great widely distributed lines of merchandise, such as 
 hardware, groceries, dry-goods and drugs, it is a hopeless 
 task to endeavor to cover the country with salesmen; the 
 various national, partly national and local jobbers cover 
 the territory regularly. 
 
 But these jobbers cannot, from the very nature and 
 breadth of their task, give much attention to any single 
 brand. In some lines they must handle 80,000 or more 
 items. They must be assisted, if sales are to be pushed. 
 
 The most commonly practised method of assisting job- 
 bers is that of traveling missionary salesmen who, al- 
 though they do not take orders themselves but turn them 
 over to the jobber's salesmen or the jobber, nevertheless ef- 
 fect a direct contact with the retail trade traveled by the 
 jobber. Some manufacturers can afford salesmen enough to 
 travel their men with almost every jobber's salesman who 
 travels the field throughout the country. Others travel 
 missionaries only at intervals to the entire trade ; and still 
 others do not attempt to cover the entire country, but call 
 on only the important dealers, and permit the jobbers to 
 reach the more inaccessible districts alone. 
 
 This missionary plan is successful only when a rigid 
 policy is maintained of transferring all orders carefully 
 to jobbers, and specifically boosting the jobbing salesman's 
 sales and aims. The missionary must develop no good- 
 will with the dealer which is not equally goodwill for the 
 jobber. Such missionaries are not salesmen, in the right 
 sense, but advisors to the merchants as to how to increase 
 demand. The assumption is that the dealer is already a 
 customer, and that what he needs is expert assistance 
 direct from the manufacturer, to increase his volume of
 
 306 MODERN SALESMANAGEMENT 
 
 demand. Actually, however, he is a salesman, out to get 
 orders wherever orders are slow or stubborn in coming. 
 
 Of course, such missionaries also aim after new dealer 
 accounts, and naturally special effort along this line is 
 especially welcome to the jobber. The conflicting interests 
 of local and national jobber are also a problem in some 
 lines of trade, and careful instructions on policy must be 
 given the missionary men so that the situations that arise 
 may be dealt with diplomatically and justly. It is also 
 necessary to see to it that the jobber salesman does not 
 lean too heavily upon the missionaiy men, and does the 
 share that may logically be expected of him in sales de- 
 velopment. The missionary field reports should be studied 
 and tabulated with care in order to secure a good picture 
 not only of local reasons for backward business, but also 
 national and fundamental ones, whether regarding the 
 article itself, business conditions, house policy or distribu- 
 tor's lack of ability and energy. 
 
 A missionary is an ambassador, so to speak, and should 
 be selected for tact, versatility and clear-sightedness in 
 addition to selling ability. 
 
 245. The Size of the Jobber's "Spread" as an Induceinent. 
 — The normal jobber's spread on all specialties or semi- 
 specialties is 20%. This means that the total percentage 
 to the jobber, inclusive of his own and the dealer's margin, 
 is about 50%. In many cases it is but 40%. As the aver- 
 age cost of doing business among wholesalers is about 
 12%, it will be seen that an article must have an extremely 
 rapid and automatic turnover before it can profit a jobber 
 to handle it at less than 20%. As a matter of fact, the 
 jobber, like the retailer, handles a great deal of merchandise 
 of the more staple and rapidly turning kind for almost 
 no profit, and even in some cases at a loss. He is there- 
 fore forced to secure some degree of recuperation of his 
 loss from the specialties and semi-specialties. A manufac-
 
 WORKING WITH THE JOBBER 307 
 
 turer of a new or fairly new article, the demand for which 
 is thin and uncertain, must expect to give the jobber a 
 good margin, as near 50% as the circumstances will possi- 
 bly allow. For an article whose demand is yet to be 
 created, and for the development of which the jobber is to 
 be relied upon almost exclusively, a still higher margin is 
 entirely equitable. In cases of articles upon which large 
 margins are possible, jobbers have been known to be given 
 a 100% gross margin during the formative years. 
 
 Later, when demand is established by the help of 
 the manufacturer as well as of the jobber, but chiefly by 
 consumer demand created by good advertising, this close 
 margin may logically be reduced. Friction ofttimes is de- 
 veloped when the manufacturer who has given such an 
 extra margin of profit to a jobber for development work, 
 reaches the point when he believes he should reduce it. 
 Jobbers often then make the plea that they have given 
 years to the development of the article and should be en- 
 titled to a maintenance! of the original large margin. 
 This, however, is an unsound argument, as the logical 
 answer is that the jobber has been paid for his work as 
 he went along by the larger margin, and now when he is 
 called upon to do less development work, when the sale is 
 more automatic, and selling it much less expensive, his pay 
 should logically be less. 
 
 Nowadays, however, there are comparatively few cases 
 where the development work is entirely laid upon the 
 shoulders of the jobber. After all, the jobber is not a 
 sales developer, but a distributor, and the task and re- 
 sponsibility for creating demand is logically upon the 
 manufacturer. It is unsound to ask or look for a greater 
 degree of development from a jobber than he would give 
 any other article which has an equal demand. 
 
 246. Interesting a Jobber in a New Article. — This is 
 found by many manufacturers to be a discouraging task.
 
 308 ]\IODERN SALESMANAGEMENT 
 
 They scarcely realize that the jobber is entirely correct 
 in his idea of keeping to his function as a distributor, and 
 not as a sales agent. His answer, often irritating to the 
 manufacturer, is "create a demand and I will supply it." 
 ^The manufacturer finds it difficult to see how he can 
 logically stir up a demand before he has the machinery in 
 operation to supply it. The technique of doing both of 
 these things simultaneously is one about which competent 
 sales and advertising counsel must inform him, and de- 
 velop a method fitted to his own specific needs. His prob- 
 lem is more or less like the job of starting a train of cars 
 from absolute standstill. In some instances it is wise to 
 plan a start on a territorial basis, and in others it is wise 
 to operate on a national scale, selling the high spots 
 direct, and following later through the jobbers. Each in- 
 dividual case has distinct and vital differences, and several 
 methods may fit one concern if accompanied by strategy 
 fitting th6\case. The same principle holds in all cases, 
 however, that'' jobbers must not be expected to stock the 
 goods unless there is a demand, if not an existing one, 
 then at least one in sight, if not for that brand, then at 
 least for that type of article. 
 
 The correct mode of procedure is to make an extremely 
 business-like prepared call upon jobbers with all the facts 
 that are essential to his consideration and decision ; giving 
 clearly thought out and correct analysis, in merchandising 
 terms, of the logical place which a new article may have, 
 by reason of quality, price, quantity, novelty, timeliness 
 or need. If it can be shown that a basis of a demand ex- 
 ists, the jobber is justified in taking it, and that justifica- 
 tion is the salesmanager's platform of operation on other 
 jobbers the country over. 
 
 247. Special Methods of Influencing' Jobber Salesmen. — 
 Because of the increasing conditions and cost, jobbers in 
 most lines are awakening to more modern methods, and
 
 WORKING WITH THE JOBBER 309 
 
 have a broader view of manufacturer's cooperation than 
 was prevalent in the past. A live manufacturer should 
 have no difficulty with any jobber in securing permission 
 to make sales talks to their assembled salesmen, and also 
 to give demonstration and educational drills in selling the 
 goods. Jobber salesmen are human beings, subject to a 
 certain degree of enthusiasm and development, to which 
 the jobber does not object, in fact desires. The live manu- 
 facturer takes advantage of this and endeavors if possible 
 to get the jobber salesman to develop some interest and 
 enthusiasm in his goods if he can, taking care while doing 
 so to impart enough general educational value so that the 
 jobber will see that the process builds up his salesman's 
 general efficiency. 
 
 Jobber salesmen are naturally desirous of securing as 
 large a volume of sales as possible, and live sellmg coopera- 
 tion i^laus interest them if they appeal to them as up-to- 
 date and effective. Special leaflets, booklets or manuals 
 treating of the article and the best way to sell it are useful, 
 and it is frequently possible to secure the names and home 
 addresses or even route lists of the jobber salesmen from 
 the jobber to continue their interest by sending facts, ideas 
 and suggestions at frequent intervals. House organs are 
 also used. 
 
 In some fields it is possible to introduce a system of 
 special rewards for salesmen; and merchandise prizes and 
 bonuses have been found to be effective where permitted. 
 Such offers and plans must of course be carefully presented 
 to the management before attempts are made to influence 
 the men, and in operating such a plan care must be taken 
 to keep the plan alive and up-to-date if it is to be 
 effective. 
 
 Special or spasmodic methods of securing jobber coopera- 
 tion may sometimes be practiced by firms which do not
 
 310 MODERN SALESMANAGEMENT 
 
 operate any steadily maintained efforts at jobber stimula- 
 tion, by means of periodic advertising drives, special prize 
 offers or seasonal campaigns. Jobber salesmen respond to 
 novelty, attractiveness, interest, enthusiasm and personal 
 contact.
 
 CHAPTER XXIX 
 
 STIMULATING AND ASSISTING THE DEALER 
 
 248. The Manufacturer's Partnership with the Dealer. — = 
 No modern salesmanager considers his work finished wheu 
 his goods are on the dealers' shelves. Many failures have 
 come from wrong policy on this point. The dealer is theo- 
 retically a demand developer as well as a demand supplier, 
 but practically speaking, comparatively few dealers grade 
 high enough in experience and organization to achieve this 
 ideal. The manufacturer must count on bearing a third, 
 at least, of the burden of getting the goods oif the dealers ' 
 shelves. With even the livest and ablest of retailers this 
 cooperation is essential, because the manufacturer is logic- 
 ally in the best position to work out the most effective way 
 to sell his goods, and devise plans and ideas and operate 
 campaigns to develop demand. With the great body of 
 mediocre and backward retailers it is actually necessary, 
 if wider markets are desired, to do the work of develop- 
 ment which properly should be done by the retailer him- 
 self. The manufacturer often needs actually to teach the 
 art of retail salesmanship and policy of management to 
 the retailer, or at least add to the retailer's knowledge 
 and ability as far as possible. Approximately one-half or 
 two-thirds of the retailers in any field are considerably be- 
 low par as creative sellers of merchandise, as is evidenced 
 by the great inroads made by chain stores and mail-order 
 selling, to say nothing of the high percentage of retail 
 failures. 
 
 A salesmanager 's supremely important duty is to in- 
 
 311
 
 312 MODERN SALESMANAGEMENT 
 
 crease the selling efBcieney of the retailers handling his 
 goods, for such dealers are virtually partners in the en- 
 terprise of marketing his goods. "Whether selling a staple 
 or a specialty, selling help is due to the retailer, and every 
 auxiliary means for stimulating demand. It should also 
 he a foregone conclusion that the manufacturer supply the 
 retail clerks with the right information and arguments for 
 the product, even if in no other form than that of instruc- 
 tion leaflets addressed to retail clerks packed in each 
 quantity container. The clerk must also be viewed as a 
 partner. 
 
 The accompanying chart shows the relation of the manu- 
 facturer to the various plans and methods of stimulation of 
 sales thi'ough dealers. 
 
 249. Stimulation with National Advertising. — Effective 
 national or local advertising is quite naturally the most 
 welcome stimulation and assistance which a dealer might 
 ask. It is the broadest invitation at the cost of the manu- 
 facturer to the public to come into the dealer's store and 
 buy. Long experience has shown to retailers that the ad- 
 vertised article is the most desirable, taking the least time 
 and effort to demonstrate and sell. Therefore national ad- 
 vertising is a powerful stimulant to dealers. Like all 
 powerful stimulants it is of course overdone for the reason 
 that dealers have been deceived by glib and unscrupulous 
 salesmen in the past, who made claims and promises of 
 tremendous, wide-reaching national advertising which 
 never materialized. Impressive "flash sheets" showing 
 proofs of extensive advertising campaigns have been 
 shown, whereas very small ads or even none at all are 
 used. This has made many dealers cynical of sweeping 
 claims of publicity. They demand all possible proof and 
 details, for the reason that the dealer finds it hard to check 
 up the statements of the salesmen about national adver- 
 tising. It is much more effective to make a very concrete
 
 STIMULATING AND ASSISTING DEALER 313 
 
 demonstration. Magazines and periodicals now often fur- 
 nish statistics of circulation by states, cities and towns, 
 and it is thus possible to furnish salesmen with statistics 
 enabling them to demonstrate to dealers in any locality the 
 approximate number of subscribers or readers (counting 
 no more than 3 readers to each subscription or copies sold) 
 who will probably see the advertising done for his trade 
 benefit. As the strong temptation to over-state the amount 
 of national advertising done has made many dealers 
 skeptical even of the value of national advertising claims, 
 therefore it is the wisest possible policy to provide as much 
 of facts and frankness and authenticity as possible in any 
 national advertising representation. 
 
 To make forthcoming national advertising vivid to the 
 dealer, it is naturally important to show him proofs of the 
 advertisements. This is often done by large size folders 
 or books in which colored reproductions of the covers of 
 the various magazines or newspapers are shown, together 
 with good proofs of the advertising itself. It is a clever 
 scheme much used in recent years to put such advance 
 proofs of advertising on an accordion style folder so that 
 the many "ads" in a proposed campaign be shown in a 
 continuous series, side by side, stretching out many feet 
 long in such a folder when opened out by the salesmen in 
 an impressive manner. 
 
 The "link-up" argument after such a campaign is 
 demonstrated is a very powerful one, and when made in 
 the right manner with the right introduction and by a 
 house commanding some degree of confidence is usually 
 productive of results. 
 
 Where salesmen cannot travel, a good mail presentation 
 of such advertising is of much value, whether by a house 
 which sells through jobbers and is endeavoring to stimu- 
 late demands from the jobber, or by a house which sells 
 direct to the trade, but does not have a sales force sufficient
 
 31-i I\IODERN SALESaiANAGEMENT 
 
 to call on the entire field. A new concern starting in busi- 
 ness with a national campaign, is under the right conditions 
 and circumstances, sometimes able to annihilate time in 
 this manner by inviting the cooperation of dealers on the 
 basis of national advertising about to appear and thus 
 attain distribution to a fair degree simultaneous with the 
 appearance of national advertising. 
 
 250. Synchronizing Dealer Cooperation with the Appear- 
 ance of Advertising. — Striking effects of unusual efficiency 
 in getting business are obtainable in many cases if dealer 
 activity is stimulated at the right moment when advertising 
 freshly appears. This fact is based upon the simple truth 
 that advertising is at its maximum of efficiency, simul- 
 taneous with and immediately after its appearance before 
 the public. Its efficiency descends downward with each 
 succeeding 24 hours from its first appearance ; therefore 
 it is scientific to synchronize the maximum of effort by 
 dealers everj^where at the moment of such appearance. 
 The effects of such a plan are now greatly heightened by 
 the fact that periodicals of national circulation are re- 
 leased almost at the same hour throughout the United 
 States, from the Atlantic to the Pacific. Even street cars 
 and billboards are now operated from centralized sources 
 in such a manner as to permit also of splendid synchron- 
 ized efforts. Competent counselors can engineer plans of 
 this sort in a manner which secures nearest to 100% ef- 
 ficiency out of national advertising, especially in cases 
 where such national advertising must of necessity be closely 
 economized and made to yield the last ounce of value. 
 
 Mailing of proofs of advertisements appearing, to be 
 pasted in the dealer's window or set up in the dealer's 
 store are excellent if the mailings are scheduled geographi- 
 cally to arrive at the right time. SjTichronization of 
 periodical advertising with street car and billboard pub- 
 licity on a still larger scale is also fully possible. Street
 
 STIMULATING AND ASSISTING DEALER 315 
 
 ear or poster campaigns can be synchronized with national 
 or with localized efforts, affording an intensified tool for 
 such firms as operate on a zone or territorial basis. 
 
 Using miniature reproductions of posters or cards on 
 postcards to be mailed to the dealers' mailing list and dis- 
 tributed at the store, is an excellent further synchroniz- 
 ing plan. The idea of utilizing a keynote design or stand- 
 ized typographical plan as part of the strategy of a link- 
 up campaign, synchronizing with many forms of effort all 
 bearing the same hallmark of identity, is one which is 
 very distinctive and powerful. 
 
 Of course, such a synchronizing campaign naturally also 
 includes the work of the sales force, which awaits the signal 
 of the appearance of the advertising to start their part of 
 the timed campaign, but often doing much preparatory 
 work in advance. The best use for such a high degree of 
 synchronization is by a manufacturer doing regular adver- 
 tising; one who will be careful to continue to develop the 
 ground that is won in such a ' ' drive ' ' ; because it amounts 
 to nothing but a "flash in the pan," when done by a con- 
 cern which is not prepared to maintain the foothold in 
 public attention which such a plan produces. 
 
 251. Local Advertising at the Expense of the Manufac- 
 turer or Half and Half. — Dealers are united in saying that 
 the maximum stimulation to them is directly local adver- 
 tising. By this they mean first, advertising within their 
 own stores, or signs outside of it, and next street car adver- 
 tising, newspaper, billboards, etc., in their own town. 
 This much desired form of cooperation and stimulation is 
 always a source of dangerous controversy between dealer 
 and manufacturer. Most dealers wish more of this than 
 the manufacturer can afford to give. Salesmen are ex- 
 tremely likely to side with the dealer in his demand for an 
 unreasonable amount of local advertising assistance. Or- 
 ders are frequently given to salesmen on condition of pay-
 
 316 JMODERN SALESMANAGEIMENT 
 
 meut for signs, special displays or local advertising. A 
 definite policy about such matters is absolutely essential i^ 
 harmony is to be maintained. At the same time policy 
 must be guided also by principle, and a dealer who is en- 
 joying a well-established trade for the article naturally 
 should not require as much assistance as the dealer en- 
 deavoring to sell in a territory new and full of resistence. 
 A firm will need to establish some degree of maximum and 
 minimum advertising expenditure which it can afford to 
 give a dealer whose average purchasing volume reaches 
 certain figures. 
 
 In search of some kind of standard of policy, many firmfj 
 hit upon the 50-50 basis. For every dollar a dealer will 
 spend for advertising they will spend a dollar. This is an 
 excellent rule-o '-thumb plan, but in some lines of trade 
 and for some firms it is an absolute impossibility. In prin- 
 ciple it is correct, although in practice not always feasible. 
 "Wherever a dealer has been granted an exclusive agency, 
 this principle, however, does not hold, for it is incumbent 
 upon the dealer, in view of his exclusive arrangements, 
 to develop prestige at his own expense. 
 
 Wherever possible the local advertising done by a dealer 
 should be handled in a manner that will connect itself with 
 the national advertising; and wherever possible dealers 
 should be stimulated with assistance from the manufacturer 
 from his own general advertising problems. Dealers who 
 have well established advertising individuality of their own 
 do not care for this broad advertising assistance, but as 
 most dealers are deficient in this and welcome such assist- 
 ance, a manufacturer who will give real assistance to their 
 own general problems of advertising and retail selling, 
 quite apart from the advertising of the manufacturer's 
 article, is stimulating the dealer in the highest possible 
 manner. Such broad-minded and apparently altruistic 
 service is sound and businesslike and always bears fruit.
 
 STIMULATING AND ASSISTING DEALER ?A7 
 
 In any local advertising assistance it is the better policy to 
 advertise the dealer's general business and only incident- 
 ally the manufacturer's article, for it induces the dealer 
 to use this advertising much more frequently than the kind 
 most often supplied by manufacturers in which the manu- 
 facturer's name is paramount. Nine-tenths of the dealer's 
 so-called electros furnished by manufacturers have this 
 grave defect, which merely results in stopping their use by 
 the livest dealers. The second and third rate dealers who 
 are not alert are the only ones who use such electros. The 
 better grade dealers look for more individualistic service. 
 
 252. lUiscellaneous Dealer Helps. — There are almost an 
 endless variety of so-called dealer helps. Most dealers 
 have distinct preferences along these lines, and a manufac- 
 turer can easily be drawn into the development of such 
 an endless variety of dealer helps. This, however, is un- 
 sound policy, in spite of the fact that dealers are often 
 extremely insistent upon their pet forms of dealer helps 
 and become disgruntled if they are not furnished. 
 
 A firm policy is advisable with regard to dealer helps, if 
 the cost of them is to be kept within reasonable bounds. 
 Investigation has shown that in many cases there is no 
 greater source of waste in advertising than in dealer helps. 
 Dealers have a greater appetite for dealer helps at the time 
 of order giving than they have capacity to digest in proper 
 distribution and handling. Dealers' cellars and waste-bas- 
 kets are full of booklets and circular matter ordered with- 
 out thought, neglected or undistributed. One of the most 
 important duties of a good advertising department aiming 
 at proper dealer stimulation is to work out from the broad 
 facts of the situation what are the best dealer helps for 
 that particular product and for the average run of dealers. 
 Some leeway must be provided for unusual special casefs, 
 but the policy in the main should be followed rigidly. A 
 general impression must be maintained among dealers that
 
 318 MODERN S.VLESMANAGEMENT 
 
 the firm is liberal in the matter of dealer assistance; but 
 the impression must also be definitely established that the 
 firm has its own conviction, based upon past experience and 
 test, as to the forms of dealer helps which are most effec- 
 tive for its article. 
 
 It is fairly nearly standard among all manufacturers to 
 furnish moving picture lantern slides, street car cards, 
 store-hangers, window displays, decalcomania signs, demon- 
 stration outfits, etc. Imprinted booklets are also as a rule 
 furnished dealers with envelopes, and addressed and mailed 
 if he will supply the names and postage. Special and more 
 elaborate forms of cooperation are frequently used, such 
 as furnishing electric signs, imprinted stationery, contain- 
 ers, novelties, show-cases, etc. These are onlj^ possible in 
 specialties operating with a considerable margin of profit, 
 or in return for considerations in dealer cooperation which 
 are important enough to warrant such expenditure. A 
 very much greater amount of monej^ is frequently spent 
 for such dealer cooperation than is wise, in view of the 
 greater results much might be obtained by similar expendi- 
 ture in other ways. 
 
 There is a point of dealer help at which a dealer no longer 
 becomes stimulated, when too much so-called dealer help 
 and dealer cooperation is given him. It has the effect of 
 pauperizing the dealer, and smothering his own initiative 
 and efforts. It is extremely dangerous to permit a dealer 
 to reach that state of mind where he consciously or un- 
 consciously pins his faith to the multiplicity of selling 
 helps which a manufacturer furnishes rather than upon 
 his own efforts. No amount of selling helps supplied by 
 a manufacturer can take the place of real, live and human 
 salesmanship in the part of the dealer and clerk; and one 
 of the chief stimulants to give him is to punch home the 
 fact that it is distinctly up to himself personally. Cyni- 
 cal manufacturers believe that it is good business to load
 
 STIMULATING AND ASSISTING DEALER 319' 
 
 a dealer pretty heavily with goods, hecause he may then 
 be counted upon to move them out. This is an error of 
 policy, as the dealer is not so ready to re-order under such 
 circumstances. 
 
 253. House-Organ for Stimulating Dealers. — If it were 
 not more or less ' ' done to death, ' ' the house-organ idea, of 
 a little, regularly issued magazine or bulletin to dealers 
 would be a splendid idea. Even under the circumstances, 
 though there are a great number of house organs published 
 for the retailer, he invariably shows his real interest to- 
 ward the ones which stand out with an individuality and 
 which are thoroughly worth while. 
 
 The value of a house organ lies in establishing a line of 
 communication to dealers which is a regularly repeated 
 messenger, with individuality. It is an open road to the 
 dealers' mentality. These house organs are in fact sales- 
 men, with the same degree of personality that a personal 
 salesman might have; in fact they have a greater degree 
 of effectiveness along certain lines because they are more 
 frequent, more complete and more economical. 
 
 254. Special Day and Week Plans. — Although in the past 
 somewhat overdone, the idea of setting aside a certain day 
 or week when the public is invited to concentrate its at- 
 tention upon an article or a line of goods, is inherently a 
 good one. The mere focusing of mind is productive of 
 some result. "White Lead Day," "Raisin Day," "Music 
 Week," "Educator Week," etc., have been operated with 
 success. The latter for a shoe concern is an example of 
 an elaborate plan. Starting one year as a drive for school 
 children's trade, with special parades of school childreu. 
 with costumes, the idea branched out so that 92 newspapers^ 
 were used for the campaign with auxiliary posters, book- 
 lets, window displays, etc. Seven thousand dollars' worth 
 of 750 scholarship prizes were used, given to the 10- to 19- 
 year-old schoolboys or girls inducing the greatest number
 
 320 MODERN SALESIMANAGEMENT 
 
 of adults to go to Educator stores. New dealers and in- 
 creased stocking among old dealers were the results. 
 
 Some of the methods used to make a "special week" 
 proposition interesting and profitable to dealers have been : 
 
 1. Circularizing the dealers' customers direct by mail 
 during the "special week." 
 
 2. Doing local newspaper, street car or billboard adver- 
 tising. 
 
 3. Arranging especially attractive window displays or 
 interior store demonstrations. 
 
 4. Offering price inducements or bonus goods. 
 
 5. Arranging a prize contest among clerks. 
 
 6. Advertising a prize contest open to the public. 
 
 7. Offering especial attractive advertising novelties to 
 buyers. 
 
 255. Window Display Plans and Service. — One of the 
 problems of the manufacturer who is continually giving 
 out good advertising matter, is to get the dealer to use it 
 in such a way that it benefits him. Once the dealer has 
 been started and has had an opportunity to observe the 
 good results, his continued efforts may be depended upon. 
 
 There are several different methods of getting dealers to 
 make window displays: 
 
 1. A prize contest among dealers for the photograph 
 of the best window display. 
 
 2. Traveling one or more window display specialties for 
 the sole purpose of getting up attractive displays for the 
 dealer. 
 
 3. Employing an organization of window experts to 
 take charge of the campaign. 
 
 Prize contests for the best window display have been 
 conducted by the manufacturers of office appliances, foods, 
 drug specialties, books, etc. 
 
 If a house organ is issued, the offer is advertised through 
 its pages, otherwise a circular letter is sent to dealers, an-
 
 STIMULATING AND ASSISTING DEALER 321 
 
 nouncing that a cash prize will be given for the photograph 
 of the best window display of the manufacturer's goods. 
 
 In addition to oiiering the cash prize, some manufactur- 
 ers offer to reproduce the photo of the window display in 
 their advertising. This, of course, offers the double incen- 
 tive of free publicity for the dealer as well as the reward. 
 
 Where national advertising is not used the photo of the 
 best display is sometimes introduced in the trade papers, 
 or even in local newspaper advertising paid for by the 
 manufacturer. 
 
 The plan of having one, or a full corps, of traveling 
 window display experts, has been found to be of great 
 advantage by manufacturers of specialties and also by 
 manufacturers whose goods can be demonstrated. Con- 
 cerns like the Durham Duplex Razor Company used this 
 plan extensively in launching their product upon the mar- 
 ket. 
 
 There are manufacturers in the food line, as well as in 
 other specialty lines, who have a permanent staff of demon- 
 strators and window display experts who travel around the 
 country and put up displays for dealers. 
 
 This is a plan with which the dealers cooperate in a very 
 full way. They are generally willing to give the use of 
 their windows entirely to the display of the manufactur- 
 ers' goods, in consideration of the expert window service 
 they are receiving. 
 
 In the case of demonstration articles it is sometimes 
 necessary for the manufacturer to make some payment for 
 the use of the window ; however, this is not the general rule 
 in the case of staple articles, when especially attractive 
 window material is given. 
 
 256. Bonus and Certificate Plans. — Bonus and certificate 
 plans are the methods used for permanently retaining 
 dealer interest over competitive products. Strictly speak- 
 ing, owing to the fact of their being permanent policies,
 
 322 IMODERN SALESMANAGE:\IENT 
 
 they cannot be classed among the usual sales stimulation 
 methods. Nevertheless, when supplemented by good dealer 
 correspondence work, calling attention to the possibilities 
 of bonus goods, etc., they are a splendid means of de- 
 veloping increased sales and dealer's good will. 
 There are many variations of the bonus plan : 
 
 1. Offering bonus goods or cash credit in consideration 
 of price maintenance cooperation. 
 
 2. Packing coupons with each article. 
 
 Several specialty manufacturers who have found it 
 necessary to employ definite price maintenance plans have 
 arranged them in such a way that they are used actually 
 as a means for stimulating dealers to obtain larger orders. 
 
 For example: the Prophylactic Tooth Brush (manufac- 
 tured by the Florence Manufacturing CompanjO is sold 
 to dealers under an arrangement whereby they obtain 
 bonus goods if they sell a certain quantity and maintain 
 price. 
 
 A certificate bearing a serial number and an expiration 
 date is enclosed in each package containing one dozen pro- 
 phylactic tooth brushes. On the back of the certificate is a 
 contract which certifies that the retailer has sold the one 
 dozen tooth brushes contained in the package at not less 
 than 35c (the retail price for the adult size). This the 
 retailer signs and returns to the manufacturer. 
 
 "Whenever three certificates for the adult size brushes are 
 received by the Florence Manufacturing Company within 
 the calendar year, the retailer sending them receives one- 
 sixth of a dozen prophjdactic tooth brushes as a bonus. 
 
 This plan operates two ways; in the first place, it is an 
 incentive for the dealer to buy prophylactic tooth brushes 
 in dozen lots and to dispose of them rapidly in order to 
 obtain his bonus goods within the time limit ; and in the 
 second place it is a very effective moral suasion method 
 for preventing price cutting.
 
 STIMULATING AND ASSISTING DEALER 323 
 
 The practice of packing coupons witli the products is 
 another method of dealer stimulation which in essentials 
 amounts to a bonus plan. There are now concerns en- 
 gaged in the business of distributing coupons to a group 
 of manufacturers in much the same way that the trading 
 stamp people operate. 
 
 A group of non-competing manufacturers will pack a 
 certain kind of coupon with their product and these cou- 
 pons are redeemed by the coupon companies. 
 
 The premiums which they distribute vary — they are in 
 the shape of regular premium articles distributed through 
 a catalog and covering about the same line of goods that 
 the premium houses offer; or they are book or magazine 
 subscriptions; and in a few cases actual cash is offered. 
 
 The advantages of this plan are that it offers the dealer 
 a new grip on his coupon or stamp collecting customers; 
 also the fact that all the manufacturers forming the group 
 are mentioned on the coupon, and thus there is consider- 
 able interchange of advertising value, which benefits both 
 manufacturer and dealer. 
 
 As a whole, however, the coupon idea is not gaining, as 
 it is recognized as a parasite upon trading which is un- 
 sound. 
 
 257. Clerk Education. — Manufacturers in all lines of 
 trade are coming to realize more than ever before that the 
 volume of dealer sales depends to a greater extent on the 
 amount of effort expended by the clerk than on simply the 
 good-will of the proprietor. 
 
 Specialty houses particularly, as well as those whose 
 product requires some sort of demonstration talk, have put 
 forward plans for stimulating the clerks. 
 
 A certain breakfast food concern offers a special cor- 
 respondence course in salesmanship to the clerks of any 
 dealer who handles their line of breakfast foods. They
 
 324 MODERN SALESMANAGEMENT 
 
 offer no reward, nor do they exact a promise from either 
 the dealer or his clerk to push their product. 
 
 The results, however, are invariably gratifying. The- 
 dealer in the first place appreciates the assistance which 
 is rendered in mating his clerks better salesmen and the 
 salesmen evidence their appreciation of the help given by 
 pushing the line on all occasions. 
 
 The manufacturer of a certain office appliance sent out 
 letters to all the dealers offering a course in retail sales- 
 manship free if the dealer would simply send in a list of his 
 sales clerks. 
 
 As an inducement to clerks to take up the course, prizes 
 were offered to all who completed their studies with a cer- 
 tain percentage of credit marks. 
 
 Another list of prizes was also offered for the largest 
 number of their products sold each month. 
 
 The immediate result of this plan was that more repeat 
 orders were received from dealers than ever before. In ad- 
 dition, the good-will of both the dealer and the retail sales 
 clerk was peiTnanently secured. 
 
 Booklets issued by manufacturers for the education of 
 clerks regarding the selling of their particular goods have 
 proven valuable. 
 
 The Victor Talking Machine Company has been using a 
 booklet of this character with success. Dealers welcome 
 help in making their salesmen more efficient. The booklet 
 intended to instruct clerks has been found economical and 
 valuable, particularly so when written in conversational 
 style. 
 
 Traveling special representatives for the purpose of 
 teaching clerks how to demonstrate and sell, have been 
 used, for instance, by the Thermos bottle makers and other 
 concerns. "While this method has brought very excellent 
 results, it is, of course, expensive. 
 
 258. Salesmen-at-Large. — It frequently happens that
 
 STIMULATING AND ASSISTING DEALER 325 
 
 sales in certain territories will gradually decline, because 
 the dealers do not feel able to move the goods and abso- 
 lutely refuse to talk to the salesmen as long as they have 
 stock on hand. For this reason a number of houses have 
 added to their staff what they call "Salesmen at large" 
 whose business is solely to go around among the trade and 
 straighten out tangles, arouse the leader's enthusiasm anew, 
 and altogether to get him in line again. 
 
 These ''Salesmeu-at-large" are usually the highest type 
 of salesmen, who were formerly traveling salesmen, and 
 who have a large measure of personal tact and stimulative 
 influence. They call on the dealer, explain that they do 
 not want an order and could not take one, but simply want 
 to show the dealer how to sell more goods. 
 
 Sometimes the dealer 's complaint is that he has been left 
 with a lot of stale stuff. This is particularly true in the 
 food product line, and concerns like H, J. Heinz & Com- 
 pany have a regular corps of men who go about relieving 
 overstocked dealers of goods they cannot dispose of. 
 
 In addition these men usually give strong selling talks 
 to the dealer on the successful methods used by other deal- 
 ers in selling exceptionally large quantities of the prod- 
 uct, how to get benefit out of the national advertising of 
 the manufacturer, how to do local advertising, how to do 
 window display work, etc. 
 
 In other words, the " Salesman-at-large " is virtually a 
 representative of the manufacturer who has no axe to 
 grind, but who is simply out looking for the dealer's inter- 
 est. 
 
 The fact that these men always announce that they are 
 not there to take orders and cannot accept an order, gives 
 them a hearing even from the uninterested dealer. 
 
 Very frequently these men act as adjusters in reality, 
 straightening out old difficulties and misunderstandings
 
 326 MODERN SALESMANAGEMENT 
 
 and getting dealers to work on a right cooperative basis 
 with the house again. 
 
 There is still another type of salesman, who, like the 
 "Salesmen-at-large," does not sell goods but renders 
 service. He is called the traveling ad-man, whose service 
 as a large sales promotor has been thoroughly tried out 
 by one firm who managed quite successfully to get dealers 
 to do more local advertising, and to swell orders consider- 
 ably. 
 
 Like other alert manufacturers, they have always sup- 
 plied dealers with cuts, copy for local newspapers and 
 other good helps created by a good advertising depart- 
 ment. But they found by experience that even the best 
 advertising helps in the way of electros and copy were not 
 used when it involved the spending of money by the dealer. 
 
 So the "Traveling Ad-man" was called into requisition 
 to visit dealers, talk advertising, and leave him with the 
 idea that if the company finds it worth while to invest 
 money sending a man to talk advertising without having 
 to solicit business, it must pay to advertise clothes. 
 
 The visiting ad-man helps with suggestions for window 
 displays, talks to clerks and often seeps himself with the 
 local atmosphere so that he can give the dealer wise sug- 
 gestions for handling his selling problems. 
 
 This company cites several illuminating instances as 
 proof that the traveling ad-man has succeeded in boosting 
 up individual dealers' orders considerably. 
 
 After the visit of the traveling ad-man, the orders were 
 boosted from $87.50 the year before, to $600 the year fol- 
 lowing his visit, and $2,500 the year after, as a direct result 
 of using his plans. Another dealer doubled his orders im- 
 mediately. 
 
 Because of the fact that salesmanagers nowadays have so 
 many duties and complicated problems, not so much travel- 
 ing is done by either the salesmanager or any other sales
 
 STIMULATING AND ASSISTING DEALER 327 
 
 executive. This results in a highly undesirable situation 
 of aloofness from actual contact with the trade. The 
 salesman-at-large is a sound function in a sales organiza- 
 tion, whatever his title or method. An executive brain is 
 needed to see the trade at close range. 
 
 Ofttimes there is a semi-political purpose which a sales- 
 man-at-large can serve; as an emissary to trade conven- 
 tions of dealers and distributors ; adjuster of disputes, con- 
 troversies, special competition and other hard field prob- 
 lems.
 
 CHAPTER XXX 
 
 SALES SYSTEM AND GRAPHIC RECORDS 
 
 259. Visualizing the Sales Field. — As all fields of selling 
 are of fairly wide extent geographically, a map is the 
 very first necessity in order to get a real conception of the 
 field. Every salesmanager should have hanging up in his 
 office a thoroughly spacious map of his entire territory, 
 and, if possible, a system of marking on this map, so that 
 the conditions or possibilities of the sales field should be 
 visual to him at all times. There is nothing more definitely 
 stimulating to a salesmanager, nor for accuracy of service 
 to his mind, than such a map. A salesmanager who reaches 
 the entire United States should have a wall map of the 
 United States, as large as the side of his wall will con- 
 veniently permit, and preferably in front of him so that on 
 raising his eyes from his desk he can see it. This map 
 should first of all contain the boundaries of the sales dis- 
 trict, each district being numbered and colored preferably 
 with the district headquarters marked with a specially 
 colored pin. In addition to this, the map should show 
 for each district one or two of the decisive factors indi- 
 cating the development in sales of that district. This may 
 be in such cases where the number of dealers is not too 
 great, a pin for every dealer ; or for every town opened up 
 or for every dealer reaching a certain volume of sales. 
 There should also be specially colored pins or symbolic 
 markings indicating the bad spots or backward conditions 
 in the territory. 
 
 This map is not only useful to the salesmanager, but is 
 also valuable for the general executives of the business to 
 
 328
 
 SALES SYSTEM AND GRAPHIC RECORDS 329 
 
 use as well as for the salesmen when they visit the sales- 
 manager's office. 
 
 260. Map and Tacks and Other Graphic Systems.— 
 Through the use of map and tack system a great many 
 graphic records of sales conditions may be carefully kept 
 up and studied. The first of these kinds of records are 
 the sales possibilities of the territory. An ammunition 
 house would greatly need a county map of the United 
 States showing just what game is obtainable in the various 
 counties^ with possibly also the location of shooting clubs, 
 etc. The same principle is applicable to any business; 
 a map system showing the presence of determining factors 
 of trade possibilities, by counties, if possible, should be 
 available. 
 
 Map and tack systems are further important for the rout- 
 ing of salesmen, showing jumps from town to town with the 
 aid of a string, placed from tack to tack. By such means 
 a salesman's route may not only be planned efficiently, but 
 can also be studied strategically in order that he may not 
 have the opportunity to abuse his travel routing for his own 
 personal comfort. In many businesses it is also possible 
 to list the exact location of customers of different types 
 and grades; even to list salesmen's calls and indicate with 
 red pins customers on whom salesmen have not called 
 within a certain limit of time. Further individual appli- 
 cations of the map and tack system are possible according 
 to individual needs. Specialized maps covering definite 
 factors, such as weather, crops, soil, trade, jobbing, or other 
 factors, are often extremely valuable. Individual maps of 
 city zones, for the more detailed and careful routing of 
 salesmen in the metropolitan district, are of great value 
 and will produce excellent results. There is far too much 
 cris-crossing as a rule in metropolitan districts, which a 
 properly studied map and re-zoning will eliminate. 
 
 261. Unit Order Forms. — Much misunderstanding and
 
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 532 MODERN SALESMANAGEMENT 
 
 loss can be traced to an inadequate order system. If a 
 count were made of the number of times an order is re- 
 corded or details of the order copied in some form, it would 
 be found to average 12 or 15, and in some cases reach 25 
 or 30 — with all the attendant delay and chance of error. 
 
 "With the modern unit system there is no reason for any 
 such duplication or waste, and the unit system fits in most 
 perfectly with modem sales requirements. 
 
 The unit system is simply a set of forms, fitted for type- 
 writer spacing, and made in carbon at one operation, which 
 covers every record needed for the entire transaction down 
 to the bill of lading. The units of direct interest to the 
 sales department are : 
 
 Alphabetical Sales Record. 
 
 Salesmen's Territorial or Geographical Record. 
 
 Chronological Record of Shipments. 
 
 Numerical Record of Transaction (the efficient handling 
 of office records depends upon a standard of filing). 
 
 262. Salesmen's Report Blank. — It is a sound principle 
 always to demand a salesman's report blank covering the 
 day's work, name of town, record of every call made, orders 
 taken, reasons for failure to secure orders, remarks made 
 by prospects with bearing on the business. Some firms 
 require a list of calls made, and a separate report blank 
 for each call, so as to obtain complete particulars. For 
 example, one large and successful firm instructs its sales- 
 men to fill out the following items on the card of each pros- 
 pect: 
 
 State exactly line of hus^iness: 
 
 Occupies Location 
 
 Store (large or small) Corner 
 Shop " " " Main Street 
 
 Office only " " " Side Street 
 
 Warehouse " " "
 
 SALES SYSTEM AND GRAPHIC RECORDS 333 
 
 Appearance Does he use Advertising? 
 Good What kind ? 
 
 Average In which of our advertising 
 
 Indifferent is he interested ? 
 
 What goods in our line does he specially push? 
 
 List of the various grades and the average annual eon- 
 sumption of each grade. 
 
 What percentage of this consumption is furnished by 
 us, and by our competitors ? 
 
 Reasons for preference of other firms. 
 
 Name of firm ; name of buyer and full particulars about 
 him. 
 
 Date of interview and name of salesman. 
 
 The information thus obtained is put on "Dealer Record 
 Cards," on which are entered in addition to the sales made 
 to the dealer the dates when the salesman called, the kind 
 and amount of advertising matter supplied to him and 
 place provided for a three-year summary of purchases. 
 
 263. Salesmen's Eoute List and Route Maps. — This shows 
 the itinerary, as mapped out by the home or branch 
 office. A copy of this list is furnished to every department 
 head or employee who may have occasion to correspond with 
 the salesman (this generally means the shipping clerk, 
 factory superintendent, treasurer, etc.). But in every case 
 a duplicate of such correspondence goes to the salesman- 
 age r. 
 
 Sales maps by states or sections, showing salesmen's 
 routes, through the medium of pins or tacks and strings 
 of various colors, are needed. The color scheme is very im- 
 portant. For example, colored string is used to differem 
 tiate between salesmen's routes, when salesmen are cover 
 ing or overlapping on the same territories. Blue pins or 
 tacks may be utilized to indicate customers, red tacks pros- 
 pects, yellow tacks competitor 's customers. Black tacks in*
 
 334 MODERN SALES:MANAGEMENT 
 
 dicate dealers who must receive special attention. Com- 
 bination black and white tacks indicate customers who must 
 be called on every month ; green and white, customers who 
 must be called on every three months. 
 
 264. Detailed Summaries. — Salesmanagers frequently are 
 so busy looking at detail that the perspective on the detail 
 is lost. This is avoided by having a good system of sum- 
 marizing. A pocket-size book of graphic charts, or a loose- 
 leaf binder holding regular letter-size sheets and charts is 
 very valuable, and should be kept close at hand. 
 
 The factors to be reviewed in such a broad general sum- 
 mary have been treated elsewhere in part ; this chapter has 
 to do merely with the minor factors of sales organization. 
 The general plan of the book of summaries might well be 
 grouped under these broad divisions: 
 
 One for each salesman, one for each department, one for 
 each territory, one for the whole business. These sheets 
 (or graphic charts) should summarize the sales work done, 
 weekly, monthly and annually, featuring all the deductions 
 to be made from gross in order to secure the net, such 
 as salaries, commissions, traveling expenses, goods returned, 
 allowances made, bad debts, etc. 
 
 Another important summarj^ of information shown on a 
 specially prepared chart or form should cover the fol- 
 lowing : 
 
 1. Number of States being worked as a territory. 
 
 2. Number of counties in territory. 
 
 3. Number of towns, of a population to be determined 
 upon. 
 
 4. Number of counties worked. 
 
 5. Number of counties missed. 
 
 6. Number of towns worked. 
 
 7. Number of towns missed. 
 
 8. Number of customers in territory. 
 
 9. Number of prospects in territory.
 
 SALES SYSTEM AND GRAPHIC RECORDS 335 
 
 10. Number of desired customers in territory. 
 
 There should also be prepared two specially designed 
 ruled forms, which would permit the clerk in charge of 
 these records to record the number of calls made by sales- 
 men, upon one of the forms called "the daily report"; 
 while the second form would constitute a monthly recapitu- 
 lation and furnish the following information, in tabulated 
 form: 
 
 1. Names of each salesman working in the territory. 
 
 2. Number of probable customers in territory. 
 
 3. Total number of calls made by each salesman. 
 
 4. Total number of calls upon customers. 
 
 5. Total number of calls upon prospects. 
 
 6. Total number re-calls. 
 
 7. Total volume of sales made by each salesman, in cur- 
 rent month. 
 
 8. Average number of calls per day. 
 
 9. Increase in number of customers. 
 
 10. Average unit value of invoices. 
 
 General summaries are the telescopes of business study 
 for details in perspective as contrasted with the microscope 
 for detail, finely cut. Perspective is a thing very much 
 neglected. The most vital things that you can know about 
 your general sales organization and field problems are : 
 
 1. How many customers have you? 
 
 2. "Whether you are adding to your list of customers. 
 
 3. AVhether you are losing accounts. 
 
 4. How many prospects have you? 
 
 5. Are your prospects being turned into customers? 
 
 6. Are you reducing the number of probable customers 
 and increasing the number of prospective customers ? 
 
 These questions are the very life-blood of saleswork in 
 the field and are far more important than the number of 
 accounts you have on your books and the amount of out- 
 standings, as these latter facts are nothing but a matter of
 
 336 MODERN SALESIilANAGEMENT 
 
 record of closed transactions, representing goods that have 
 been sold and delivered. 
 
 These records are really control records which should not 
 be made up only to be admired but to be used, studied, 
 brooded over and lessons taken therefrom. 
 
 265. Expense Reports and Expense Accoiints. — Each 
 salesman should be furnished with standardized blanks. 
 As there is, in well-managed firms, a clear and definite 
 understanding with salesmen and incorporated in the sales 
 manual regarding the expenses which are allowed by the 
 firm, and the heading under which each type of item should 
 be listed, so that totalization and analysis of each report 
 may be uniform. 
 
 266. Memorandum Forms. — These are less expensive than 
 the letter heads used for correspondence with outsiders. 
 The manual provides instructions showing just how they 
 are to be used, including directions as to where and how 
 they are to be filed. The original copy, as a rule, is in- 
 serted in a loose-leaf binder under the proper index, thus 
 becoming part of, or supplement to, the sales manual, so 
 that this book may represent a reference volume of instruc- 
 tions issued, information received, etc. One highly neces- 
 sary caution that is generally printed in large type and 
 in red ink is this: "This memorandum when used for 
 salesmen's instructions must be filed at once in the proper 
 binder. Do not carry it in your pocket.'' 
 
 267. General Records That a Sales Office Should Have. — A 
 general review of the records and systems of use in a sales 
 office might be as follows: 
 
 1. Records of Current Business. 
 
 a. List of dealers handling the goods, divided into 
 classes "A," "B," etc. Summary of their rating, credit, 
 three-year record of orders, shipping and routing direc- 
 tions, record of salesmen's calls, complaints, special re- 
 marks, class of customers served, location-value of store,
 
 SALES SYSTEM AND GRAPHIC RECORDS 337 
 
 typie of stock carried, competing brands handled and 
 pushed. 
 
 b. List of prospective dealers, with dates of calls and re- 
 marks. 
 
 c. Distribution sales map by states or sections (blue pins 
 for dealers carrying stock, red for prospects, green for 
 other dealers, with numbers on the pin heads to indicate 
 dating or product handled). 
 
 d. Salesmen's route maps, with routes "strung" to 
 show journeys and jumps. 
 
 e. Order records, filed geographically ; also by-products, 
 or sizes, etc. 
 
 f. Salesmen's records, orders, trips, etc. 
 
 g. Expense records. 
 
 h. Factory and shipping records. 
 
 i. Form letter and follow-up record. 
 
 j. Cessation and dealer complaint records. 
 
 2. Consumer Data hy Districts or Counties. 
 
 a. Consumption (gross quantities per capita, character 
 of people, etc.). 
 
 b. Dealers (per square mile, per 1,000 of population, 
 etc.). 
 
 c. "Wealth, crop peculiarities and general status data. 
 
 3. Reference and Information File. 
 
 a. Addresses and circulars of sign, novelty and auxil- 
 iary service concerns. 
 
 b. Periodical rate and circulation data. 
 
 c. Office records and files — cuts, drawings, orders, 
 memos, letters, requisitions. 
 
 d. House organ or material or suggestion file. 
 
 e. Scrap book files and advertising literature. 
 
 f. Salesmen's, missionaries' and field reports. 
 
 g. Complaint file. 
 
 h. Tickler and schedule file.
 
 CHAPTER XXXI 
 
 SALES ENGINEERING; INVESTIGATIONS AND SURVEYS 
 
 268. Applying Engineering Standards to Sales Work. — As 
 a final move in squeezing the mysterious element out of 
 selling, there is a tendency now to test selling by the same 
 standards as any other department of business — namely, 
 engineering standards. This tendency has limitations, but 
 as a tendency it is unquestionably a wholesome one, there 
 being entirely too little of the engineering point of view in 
 average salesmanagement. 
 
 The Winchester Repeating Arms Co., for instance, gov- 
 erns its entire plant by an engineering formula which it 
 has also applied to the selling departments. This engineer- 
 ing formula is one of five divisions or processes : 
 
 1. Planning. 
 
 2. Preparation. 
 
 3. Scheduling. 
 
 4. Production. 
 
 5. Inspection. 
 
 All sales work is routed through these five processes, like 
 any and every other work of the business. The scope of 
 sales work is also divided into two divisions : 
 Sales Engineering : 
 
 Sales research and investigation. 
 
 Selection of new products and styles. 
 
 Standardization of products and styles. 
 
 Planning of containers and methods of packing. 
 
 Formulation of sales policies. 
 
 Determination of methods and program of distribution. 
 
 338
 
 SALES ENGINEERING 339 
 
 Preparation of master plan of advertising. 
 
 Detailed planning and execution of advertising. 
 
 Preparation of catalogs and other product literature. 
 
 Planning and installation of exhibits. 
 
 Determination of sales budget. 
 
 Determination of master sales quotas and shipping 
 schedules. 
 
 Formulation of bonus and other incentive plans. 
 
 Determination of selling prices, terms, and discounts. 
 
 Preparation of selling equipment. 
 
 Preparation of procedures to standardize programs, 
 methods, and equipment. 
 
 Planning and inspection of graphic controls of sales 
 operations. 
 Sales Productimi: 
 
 Maintenance and supervision of sales production forces, 
 field, branches, home office. 
 
 Maintenance of selling equipment. 
 
 Execution of distributing program. 
 
 Maintenance of selling schedules and quotas. 
 
 ]\Iaintenance of exhibits, supervision of shooting cam^ 
 paigns, etc. 
 
 Maintenance of gun repair service. 
 
 Issuance of detailed orders and schedules for mainte- 
 nance of stock of finished goods. 
 
 Planning and scheduling of shipments. 
 
 Pricing of invoice tickets. 
 
 Maintenance of correspondence and service work. 
 
 Maintenance of credit research and records; follow-up 
 collections. 
 
 This method of viewing, selling and handling sales work 
 is essentially sound, because it is a mistaken idea to think 
 that engineers deal with exact facts and that salesmanagers 
 deal with entirely intangible and variable factors. Even 
 the engineering profession has to deal with intangible fac-
 
 340 MODERN SALESIMANAGEMENT 
 
 tors, including the human factor, and the progress made in 
 testing, measuring and judging qualitative as well as quan- 
 titative matters by laboratory methods makes it fairly cer- 
 tain that much is still widely regarded as intangible in 
 selling which is not intangible at all, but can be much more 
 definitely ascertained than is realized, by means of modem 
 methods. 
 
 269. Market Investigations. — Information is absolutely 
 vital in sales planning. It is just as surely the raw ma- 
 terial out of which a finished sales product is produced as 
 iron is a raw material in a factory making hardware. 
 
 The reasons why market investigations and method 
 analyses are becoming an essential part of the successful 
 conduct of business are : 
 
 1. Increasing complexity of distribution channels. 
 
 2. Wider national markets. 
 
 3. Increasing competition and smaller margins of profit. 
 
 4. Increasing intelligence of consumers and of dealers. 
 
 5. Desire for more accurate data, and the elimination 
 of guess-work and waste. 
 
 6. Greater costliness of sales work, and the elimination 
 of many thousands of dollars of waste through mistakes 
 and miscalculations. 
 
 7. Inability to control market nowadays by purely ar- 
 bitrary judgment, policies and methods. 
 
 Years ago, when the kind of goods handled by a business 
 was limited strictly to merchandise within its own scope, 
 it was comparatively easy to determine the trade outlets 
 for a given business. 
 
 This condition no longer exists. Haberdashers sell 
 jewelry. Hardware dealers sell electrical goods and auto 
 supplies. Jewelers sell phonographic goods, porcelain 
 ware, etc. Jobbers enter the manufacturing field and also 
 maintain retail stores. Manufacturers start "chain
 
 SALES ENGINEERING 341 
 
 stores." Chain stores start their own manufacturing 
 l^lants. 
 
 Therefore trained investigators secure data in person 
 from every possible factor in a given field, from consumers 
 in house-to-house canvasses, from dealers of all kinds, from 
 jobbers, business offices, banks, manufacturing plants, etc. 
 Nothing is left to guesswork, and the results are carefully 
 analyzed and tabulated. 
 
 270. Analytical Procedure for a New Article. — The first 
 thing that any one going into an unfamiliar business to him 
 should do, is to secure an analysis along the lines suggested 
 below ; and before marketing or manufacturing a product, 
 whether a specialty or a staple, an analysis should be made. 
 
 The best kind of assurance of success in selling is to have 
 on paper the facts concerning a business, its plans, its diffi- 
 culties and its possibilities. The "blue-printing and chart- 
 ing" of the definite program of action is also fine discipline 
 and stimulation. The following are the lines of investiga- 
 tion in a chronological order which may be followed: 
 
 1. Technical test and analysis of product. 
 
 2. Practice test on 200 to 2,500 typical consumers. 
 
 a. Actual tryout by consumers. 
 
 b. Tabulation of consumer opinions and attitude, by 
 actual canvass. 
 
 3. Analysis of consumption: 
 
 a. Present consumption. 
 
 b. Present manufacturing and selling conditions and 
 success. 
 
 c. Present competitive status, territorially. 
 
 d. Possible consumption. 
 
 e. Study of distributive channels and trade sentiment 
 (actual canvass of dealers throughout the country). 
 
 4. Trademark analysis: 
 
 a. Construction of trademarks to secure maximum ad- 
 vertising value and maximum protection.
 
 342 MODERN SALESMANAGEMENT 
 
 b. Search of mark among unregistered as well as regis- 
 tered marks. 
 
 c. Layout of protective records and plans for trade- 
 mark conservation. 
 
 d. Coordination of trademark plan with general plans 
 of label, package and all possible forms of publicity. 
 
 5. Analysis of price and profits: 
 
 a. Analysis of costs on basis of specific first volume of 
 manufacture. 
 
 b. Analysis of selling costs. 
 
 c. Analysis of distributors' profits. 
 
 d. Analysis of competitive costs and profits. 
 
 e. Layout of price policy and protection. 
 
 f. Study of "what traffic will bear" and fixing reason- 
 able retailing price. 
 
 6. Analysis of sales and advertising situation : 
 
 a. Laj^out of staff organization necessary. 
 
 b. Study of alternative methods of campaigning. 
 
 c. Stud}^ of alternative methods of advertising. 
 
 d. Investigation of parallel and competitive sales and 
 advertising methods and experience. 
 
 e. Study of probable factors of resistance. 
 
 f. Layout of maximum sales points and arguments. 
 
 g. Standardization of sales policy and position. 
 
 h. Study of trade paper advertising efficiency for the 
 proposition. 
 
 i. Study of consumer advertising mediums' efficiency 
 for proposition. 
 
 j. Study of auxiliary and special advertising efficiency. 
 
 7. Financial budget of estimated expenses and returns : 
 
 a. Tabulation of complete expense balanced against re- 
 turns from 90% of proposed first yearly output: (1) per 
 unit of material, and (2) per complete yearly volume. 
 
 b. Detail of manufacturing expense. 
 
 c. Detail of sales organization expense.
 
 SALES ENGINEERING 343 
 
 d. Detail of special advertising expense. 
 
 6. Detail of expected volume of sales and basis of es- 
 timation. 
 
 f. Detail of possible lesser and greater volumes of 
 sales, with accompanying scales of graduated costs and ex- 
 pense. 
 
 g. Detail of administrative financing of proposition. 
 8. Blue printing and scheduling of plan of action: 
 
 a. Chronological layout for factory production and de- 
 livery. 
 
 b. Chronological layout of sales organization work. 
 
 e. Chronological layout of mail campaign to dealers. 
 
 d. Chronological layout of trade paper advertising. 
 
 e. Chronological layout of tryout or local territorial 
 advertising work. 
 
 f. Chronological layout of special stunts. 
 
 g. Chronological layout of general development. 
 
 271. Why Investigations Should Be Made by Outsiders. — 
 It is a mistaken habit with some firms to utilize their own 
 salesmen or executive staff to conduct investigations. This 
 is inherently wrong in principle, like an accused man try- 
 ing himself. An investigation cannot be made without 
 bias by any but professional outsiders, first, because in- 
 vestigation is in itself a technical and special profession, 
 and, second, because employees are incapable of taking 
 the all-important detached, outside point of view. 
 
 More particularly is it the mistaken practice of many 
 firms to utilize salesmen to gather field information. This 
 is unpractical and dangerous for the following reasons: 
 
 1. They are primarily salesmen, with sales work to do 
 which should not be impeded by extra work. 
 
 2. They are not by temperament fitted to do such work 
 and do not like it. Investigation work does not mix well 
 with sales work; and, moreover, salesmen are more valu- 
 able for sales work than any other.
 
 344 IMODERN SALESMANAGEMENT 
 
 3. They are sure to have acquired prejudices in favor 
 of their own firm and blindnesses about their territory, 
 and therefore render biased reports. 
 
 4. The salesmen reporting upon their own ■work or 
 checking themselves up, will render reports based upon 
 the angle from which thc}' see the field. 
 
 272. Canvassing and Tabulating Trade Sentiment. — The- 
 ory and guesswork in the past have been the principal 
 means used to make changes in policies, plans and methods. 
 The modern practice is to carefully ascertain in advance 
 the attitude of a fair proportion of the trade on these 
 subjects. 
 
 In these days of keen competition and intensive sales 
 cultivation, of swift national action through advertising, 
 of the quick Day Letter, long distance telephone, and the 
 parcel post, trade sentiment may change very quickly. It 
 is highly essential for the firm that wants to be on the 
 alert all the time to keep in touch with the exact status 
 of trade sentiment and to take quick notice of changing 
 tendencies. 
 
 Llany firms have felt confident that they held the good- 
 will of dealers and other factors when, as a matter of fact, 
 investigation brought to light a very considerable amount 
 of dissatisfaction, opposition and disturbing conditions. 
 One of the facilities of modern trade investigation is the 
 ability to measure the good-will of firms with the trade and 
 to tabulate dealer opinion and local facts for a represen- 
 tative portion of the entire country, all at low cost. 
 
 273. Statistics of Distribution. — In the present day when 
 the class of goods carried by retailers is changing, it is 
 most important to study the statistics and facts of dis- 
 tribution. 
 
 Investigation can show which type of dealers is the best 
 equipped to handle the goods, or how distribution can be 
 widened along new lines (such as inducing haberdashery
 
 SALES ENGINEERING 345 
 
 to sell fountain pens) and to cooperate with the firm on 
 any particular Hue of goods or policy. Dealer investiga- 
 tions also disclose the volume of purchases of the various 
 dealers, the kind of clientele they serve, the type of man- 
 agement, the personnel, etc., and can establish the present 
 and possible future consumption of an article. 
 
 274. Future Consumptioii Surveys. — Much interest is 
 being manifested in recent years in thoroughgoing surveys 
 of territory to establish facts and figures as to possible 
 sales in each small unit of territory, usually by counties. 
 No statistics from government or standard sources are 
 available and the only way to get such data is to hire 
 professional investigative organizations to secure it. The 
 work of getting the needed facts locally and of making the 
 tabulations, comparisons and estimates is only possible to 
 do in a reliable manner by careful professional concerns 
 organized to command the experience and skill needed in 
 such matters. 
 
 Unless such figures of possible consumption are obtained 
 a firm is working more or less in the dark. It does not 
 know whether the territory is in a state of freshness or 
 whether it is well developed or whether it is close to satu- 
 ration. Nor is it able to set intelligent, fair quotas bC' 
 tween one territory and another, or make adequate, just 
 comparisons between one territory and another. 
 I It is unwise to be skeptical as to ability to secure such 
 detailed possible consumption data, for it is a matter for 
 expert business statisticians and investigators. Also it is 
 foolish to underestimate the money value of such a survey. 
 The advisability of building another factory or of choosing 
 an additional line of goods, or of making expansions may 
 hinge wholly and solely on the findings of such a survey, 
 and though the cost may in some cases run into many 
 thousands it may be the greatest possible economy. To 
 travel into the future without the guide of future con-
 
 346 MODERN SALESMANAGEMENT 
 
 sumption data is identically like traveling into a strange 
 new country without map or compass. 
 
 275. General Sales Surveys. — A new type of survey has 
 become recognized as of importance and usefulness within 
 recent j-ears — the general survey by a trained specialist 
 and counselor. Such a survey amounts to an "audit" of 
 the sales organization, plan and policy by an outsider 
 who simply spends time examining it in the same cool, 
 detached, technically trained manner with which an expert 
 accountant examines a firm's books. The principle is 
 identically the same. It is a process of certification, also 
 of study for possible improvement and valuation by those 
 who make such work a business. No one doubts the ability 
 of a firm's accountants, yet it is sound policy to have ex- 
 pert accounts render a report and suggestions in the light 
 of general accounting practice and principle. 
 
 In the same way the practices, policies, plans and or- 
 ganization and records of a sales organization may be 
 reviewed, certified to where good, and noted where out of 
 alignment with the best experience and practice in other 
 lines and general business fact and principle. A number 
 of concerns now make this an annual practice, and rarely 
 fail to get ten times the value of the fee involved. 
 
 276. Checking Sales Work. — This means investigations 
 conducted among dealers to show whether the goods, the 
 ser^'ice and the policy of the house have been properly 
 presented to them by the firm's salesmen or by the sales- 
 men of the jobbers ; whether the salesmen have unduly over- 
 loaded the dealers, whether they have been getting their 
 full percentage of the dealers' business, and if not, why not. 
 
 In addition to the above factors, there are a number of 
 serious underlying business conditions of which many firms 
 complain, or know to exist, and yet they are not suffi- 
 ciently alert to closely investigate in order to determine 
 the underlying causes, although by doing so they could
 
 SALES ENGINEERING 347 
 
 get a long start ahead of competitors. The man in an 
 organization whose mind grasps underlying factors which, 
 if analyzed and acted upon, would benefit the business, is 
 the man in line for the most successful future. 
 
 277. Analysis of Greneral Basic Factors. — Factors of broad 
 general importance which may be studied by securing data 
 through investigation are the following: 
 
 1. Number of manufacturers versus number of disi 
 tributors. 
 
 2. Number of retail outlets versus each of three grades 
 of jobbers and wholesalers. 
 
 3. Number of manufacturing workers versus general 
 total of distributors. 
 
 4. Rate of increase in volume of trade versus increase 
 in distribution. 
 
 5. Fluctuations of retail and wholesale profits. 
 
 6. Graphic tabulation of length of time present jobbing 
 firms have been in existence. 
 
 7. Volume of trade contrasted with general bank clear- 
 ings, building activity and per capita wealth. 
 
 8. Number of retail outlets, also number of jobbers, to 
 each thousand of population. 
 
 9. Volume of trade to each individual; habits of con- 
 sumers. 
 
 10. Urban tendency ratio versus volume of trade ratio 
 by localities. 
 
 11. Sales expense and net profits versus rate of increase 
 in retail outlets and jobbers. 
 
 12. Efficiency of call percentage of salesmen. 
 
 13. Rates of increase in distribution in the line of trade 
 contrasted with the increases in other lines of trade. 
 
 14. Per capita consumption of the line of goods com. 
 pared with other lines of goods. 
 
 15. Capitalization in the manufacturing field versus vol- 
 ume of trade and ratio distributors' increase, etc.
 
 CHAPTER XXXII 
 
 THE STATISTICS OF SALESilANAGEMENT 
 
 278. The Correct Attitude Toward Statistics, — There is 
 frequently found among salesmanagers, especially those 
 who have graduated from the position of salesmen, a dis- 
 position to make light of statistics. This is due, of course, 
 to the fact that as salesmen they required qualities almost 
 the exact opposite of the statistical mind. They never 
 dealt with symbols or figures, they dealt in visual examples 
 of human nature. Therefore as salesmanagers they have 
 an imperfect capacity to work with paper symbols and 
 abstract representations of fact; they have a prejudice 
 against statistics and are often fond of quoting the satirical 
 phrase, "lies, damn lies and statistics" as justification for 
 their incapacity. 
 
 There is no more fatal error than this for any sales- 
 manager who aims to master his profession. As a matter 
 of fact the profession of salesmanagement is dependent 
 each year more and more upon statistics ; salesmanagement 
 without statistics is sheer blind stumbling in the dark. 
 
 None except fanatics are in love with figures or statis- 
 tics, per se. Figures are merely useful tools and symbols 
 of actual conditions reduced to white paper for convenient 
 study. The idea of the use of statistics should not be 
 blamed for mistakes and false assumptions from erroneous 
 statistics. Statistics are only as good as the makers of 
 them, and few figures are 100% accurate. It is an ab- 
 surdity to expect too much from statistics, but a still greater 
 and more dangerous absurdity is to presume that one can 
 
 348
 
 STATISTICS OF SALESMANAGEMENT 349 
 
 do without them. As one millionaire business man said, 
 "I hate figures and statistics, but I never will take a step 
 without them." Many of the greatest minds in business, 
 such as Morgan and Harriman, were accountants early in 
 their careers and thus acquired a trained facility in secur- 
 ing, understanding and acting upon statistics. The man 
 who "has no use for statistics," in order to be consistent, 
 would have to refrain from counting the change he gets 
 when presenting a sum of money for a purchase. He is 
 just as likely to get short-changed in his own business and 
 his larger transactions as he is to get short-changed in a 
 small way by a small retailer. It is a necessary part of 
 his equipment for his job to acquire some facility at statis- 
 tics, for even though he hires a statistical man, he usually 
 can afford only a statistical "hack" — a man who will get 
 the specific thing he is told to get, whereas the need usually 
 is for creative statistical probing, assisted with the mer- 
 chandising instinct. No hack statistician can do this work ; 
 chiefly for the reason that the routine sources of statistics 
 are entirely inadequate for the purpose for which statistics 
 must be developed with which to feel one's way forward 
 in conditions which cannot be seen with the naked eye. 
 It is with these conditions which cannot be seen with the 
 naked eye or studied by means of the usually available 
 statistics with which the salesmanager must deal. Expen- 
 ditures of millions of dollars ofttimes depend for their suc- 
 cess upon the situation as disclosed by statistics, and it is 
 deadly to trust merely to judgment, however good and 
 experienced. 
 
 Statistics are actually pictures of facts and photographs 
 in miniature of conditions. The correct attitude toward 
 statistics is first to think very clearly what information is 
 vitally necessary ; then exhaust every possible effort, and 
 go to every necessary expense commensurate with the in- 
 terests involved to secure that information in a manner
 
 350 MODERN SALESIHANAGEMENT 
 
 that will be statistically clear, and whicli will make a de- 
 pendable picture of the factors to be studied. These facts 
 must then be adequately studied and a judgment rendered 
 as to action upon them. 
 
 Last, but not least, it is important to act promptly and 
 immediately upon the forming of decisions from statistics. 
 It w-as a prime principle of Napoleon's that after making 
 exhaustive investigations of his enemy's position and de- 
 ciding upon a piece of strategy, he acted swiftly and with 
 lightning-like rapidity, in order that the conditions which 
 he had investigated should not change before his action, 
 and thus require another investigation. The same is true 
 of statistics. One of the reasons why the use of statistics 
 has in some minds fallen into disrepute and contempt, is 
 that there are too many instances where statistics mountain 
 high in quantity were compiled, left unassimilated ajid 
 undigested; the proper judgment and lines of action not 
 being made and carried out, based upon these statistics. 
 Not statistics, but the executive use or misuse of statistics 
 should be criticized. 
 
 279. The Two Main Classes of Statistics. — It will be a big 
 step forward in the understanding of statistics to realize 
 that there are two main broad divisions of statistics: 
 
 1. Statistics of past performance. 
 
 2. Statistics of possible developments. 
 
 Most statistics used have been in the first division, the 
 value and use of which is simple and obvious. Far too 
 few statistics are compiled and used under the second divi- 
 sion. The use of statistics of past records and perform- 
 ances are backward looks, not forward looks, and have no 
 value unless they can be used to base future operations 
 upon. As one business man remarked, statistics of past 
 records and performance are post mortem examinations, 
 and have the defect that the thing examined is dead and 
 gone. As highly modern accountants readily point out,
 
 STATISTICS OF SALESMANAGEMENT 351 
 
 even records of past performance should be cast in such 
 form that they are guides for the future. 
 
 The sheer difficulty of securing and compiling statistics 
 of the more important division, that of analysis of future 
 development and possibilities, has undoubtedly prevented 
 their more widespread use. It is easier to study the 
 anatomy of the game you ha/ve shot than to work out the 
 kind of game you are going to shoot. Unfortunately, the 
 Government provides much too little data which* makes 
 possible general marketing statistics for study of future 
 development, and it must be accepted as an unavoidable 
 fact that such statistics cost a good deal of money to de- 
 velop and compile. Yet they are now recognized as the 
 very foundation rocks upon which business development 
 rests. The writer was recently figuring with a large manu- 
 facturer for the expenditure of $170,000 solely for the 
 devebpment of statistics of possible sales of that product 
 in each one of the 3,000 counties of the United States. 
 This sum the company readily admits is not excessive for 
 the information (which could only be 80% accurate) if it 
 gave them a fair conception of the possibilities of each local 
 market, so that a fine-tooth combing process might be 
 begun in an intensive sales campaign such as had never 
 before been attempted in that industry. This work of 
 statistical analysis of possible markets is now a professional 
 business in itself, with experts and national investigative 
 organizations. 
 
 280. Per Capita Consumption Statistics. — At the very base 
 of every business and its future development is the matter 
 of per capita and average consumption. How much of 
 your goods can the average consumer use ; and in contrast 
 with this, how much actually does the consumer now use? 
 Per capita consumption of course means total annual con- 
 sumption divided into the whole population of the country, 
 men, women and children. It must not be confused with
 
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 STATISTICS OF SALESMANAGEMENT 353 
 
 average consumption, which means only consumption by 
 the logical consumers, not by the population at large. It 
 may seem foolish to work out the per capita consumption 
 of let us say office desks, but all consumption of whatever 
 article is based primarily on population, because the most 
 goods tend to be sold where there are the most people, and 
 the first obvious measure of sales is according to units of 
 population. The more accurate measure of consumption, 
 based on possible users, is very much more difficult to 
 obtain, but hardly any price is too large to pay to get 
 accurate statistics on this point, because it permits more 
 just and clear setting of sales quotas. 
 
 Every article, however, which is at all widely distributed 
 even though not an article of universal consumption, can 
 best be measured in sales possibilities by the per capita 
 measure; enabling one to rapidly arrive at a measure of 
 sales for any community of given population. 
 
 The closer study of per capita figures is profitable from 
 various points of view. It permits comparison, for in- 
 stance, with foreign countries. Denmark, although a daiiy 
 country, consumes 44 lbs. per capita of nut margarine (but- 
 ter substitute), whereas the United States consumes but 
 3^/2 lbs. Most other European countries consume 2 or 3 
 more times per capita than the United States, yet the total 
 amount consumed by the United States because of its huge 
 population is larger than the consumption of any Euro- 
 pean country. Thus it will be seen that statistics of total 
 volume of consumption might tend to mislead in making 
 comparisons, if the population measure were not applied 
 through the per capita method. 
 
 It is also important to study the per capita consumption 
 of related lines, to show sales possibilities as compared 
 with articles of a similar nature. Per capita piano sales' 
 figures are interesting not only to player piano makers, but 
 also to all sellers of luxuries, for of course all piano buyers
 
 354 MODERN SALESMANAGEMENT 
 
 are to a certain degree luxury buyers. The same is true 
 of automobile per capita consumption. In fact, general 
 study of per capita expenditures covering a variety of 
 items is very suggestive in analyzing fundamental condi- 
 tions. If the per capita expenditure for alcoholic liquors 
 was $10.00 the per capita sale of many other articles will 
 tend to rise under a prohibition regime. If the per 
 capita consumption of soda fountain drinks is about $8.00, 
 it appears that other articles of taste appeal have logical 
 margin for development. 
 
 By means of a logarithmic chart the annual increase or 
 decrease in per capita may be projected forward from a 
 period of past years to a period of future years, assuming 
 the continuation of the broad tendencies shown during a 
 period of years. Thus a fairly accurate picture may be 
 secured of the future rate of gi'owth and volume of busi- 
 ness of an industry. Competent statisticians who are more 
 than hack workers with, figures may even work into the 
 chart known factors which are expected to alter the future 
 per capita consumption, and thus merge known future de- 
 velopments with the past tendencies, and get even closer 
 to an accurate prognostication of the future. The pre- 
 diction of future sales by expert statistical facilities is now 
 an important part of many businesses. 
 
 281. The "Saturation Point". — This phrase means the 
 reaching of the full amount of sales that the population 
 can absorb. It is a peculiar fact that many industries 
 after a period of difficulty develop a demand for their 
 article, and then, this demand becoming visible to others, 
 new concerns flock rather blindly into the field, expecting 
 also to enjoy a big market. But, unfortunately, this de- 
 mand may have very definite limitations which competent 
 statistical investigation might have uncovered. There may 
 be no sufficient market left for the new companies, and 
 the usual result of failure or absorption occurs.
 
 STATISTICS OF SALESMANAGEMENT 355 
 
 Then, too, a firm wliicli is not aware that its article is 
 rapidly approaching a saturation point, may suddenly be 
 caught in a serious situation of lack of preparation; 
 whereas statistical research might have demonstrated the 
 fact in plenty of time to lay lines of new development, 
 either for manufacture of new or related lines, or for ex- 
 panding the uses, scope and application of the product, 
 and thus put off the coming of the saturation point. This 
 saturation point has been skillfully avoided in the auto- 
 mobile field by the reduction of average price of automo- 
 biles; each new decline of $50 opening up new hundreds 
 of thousands of prospects. Price is the most frequent 
 arbiter of the saturation point on articles of high cost ; 
 but in others it depends upon the number of people who 
 can logically use the article to advantage. 
 
 Most figures on markets are too optimistic (remember 
 Col. Starbottle's eye wash!) and there is too naive and 
 inexperienced use of statistics by the rosy-eyed inventors 
 or promoters. The possible market is never easy to de- 
 termine, and sometimes it can be demonstrated that a 
 proposed industry could manufacture enough of the article 
 in 3 months in a sizable plant to supply the demand for 
 10 or more years to come. It is of importance to plan 
 for a term of years ahead, and not on a basis which will 
 ignore the possible early exhaustion of the business by 
 saturation. The country's population is not growing so 
 rapidly as before and markets are not so "bottomless" as 
 once they were. 
 
 Shrewd bankers, investors and others study industries 
 not by what has been done, but by what is possible to do 
 in the future, realizing that it is an old and favorite argu- 
 ment of promoters to "lamb" investors that the Jones 
 Co. has made millions in the past ten years, therefore the 
 new company can do likewise ! The parallel in such easeS 
 is truly deadly, because usually statistically unsound.
 
 356 MODERN SALESIMANAGEMENT 
 
 "What a company has done in the past cannot, so far as 
 sales are concerned, be even a moderately sure prediction 
 of the future. There are companies which the writer 
 knows paying now and for a long time past a great deal 
 of money in dividends, but which "insiders" on matters 
 of sales development know are doomed to bankruptcy or 
 complete reorganization within a couple of years — because 
 of market changes and selling factors. 
 
 The "saturation point," it is quite true, has not in 
 America up to this time cut much of a figure in calcula- 
 tions, because most markets for good articles have grown 
 almost automatically to the extent of at least 10% per 
 year. Creative salesmanagement cannot logically take 
 credit, in many industries, for growth up to 10%. The 
 saturation point has on this account been sneered at as- 
 a "bogey," but from now on it will increase as a factor 
 of consequence. It is already a very definite factor in 
 foreign countries, and the huge enlargements of factories 
 for war production have brought many firms in the United 
 States to the realization that the ordinary market will not 
 be big enough to take care of new capacity for consump- 
 tion. The saturation point is too near; new plans must 
 be made. 
 
 Saturation point statistics are constantly in need of re- 
 vision. Conditions, wealth, population, and other factors 
 change the situation at least yearly, and figures should 
 be revised at least that often. 
 
 Also, it is possible to postpone the saturation point by 
 widening the usefulness and appeal of an article. It is 
 this factor (and price) which saved the automobile from 
 reaching the saturation point years ago. The economic 
 usefulness of the automobile was developed, thus making 
 it out of the purely "pleasure" class of commodities. 
 
 282. The Law of Averages. — The next best thing to an 
 absolute fact is an average. Therefore since business many
 
 STATISTICS OF SALESMANAGEMENT 357 
 
 times demands action where absolute facts are unobtain- 
 able, the average is the one safe guide. Many great busi- 
 nesses are built up entirely on averages. In the insur- 
 ance business the law of averages is supreme. Millions of 
 dollars are calmly "wagered" on the inexorable sameness 
 of operation of this law of averages. Eight people will 
 die by accident out of every 100 just as surely as the sun 
 rises. A certain set number of people out of 1,000 will 
 commit suicide, no matter whether it is in San Francisco 
 or in Boston. 
 
 "What is a safe number on which to base averages, is the 
 question often disputed over. Averages are possible to 
 apply to almost any matter of salesmanagement, however 
 difficult it may at first seem. Even the matter of testing 
 out the strength of appeal of a given sales argument may 
 be done by means of averages. A group of people repre- 
 senting average prospects may be tested under carefully 
 controlled conditions, and a "correlation" to actual results 
 of at least 65% secured. This close an approximation to 
 actual results is thoroughly worth while and may save a 
 considerable amount of money. 
 
 The principles to be applied in obtaining an average in 
 a test are ( 1 ) taking pains that the conditions surrounding 
 the units to be tested for an average are thoroughly repre- 
 sentative of the whole; (2) taking pains that the judgment 
 or test results secured are not in any way swerved from 
 true by any circumstances of the test. 
 
 If the conditions can be controlled so that the test units 
 are from 90% to 100% representative in all particulars, 
 it is possible to make a test upon only 25 units that will 
 correlate with actual results to the degree of 70% or more. 
 To the extent that the units for test are not representative, 
 the number of units selected for test must be increased. 
 Therefore tests upon 100 units under ordinary circum- 
 stances may be depended upon to achieve from 50% to
 
 358 :modern salesmanagement 
 
 60% correlation; while 1000 units will correlate nearly 
 90% — even more if the utmost scientific care is exercised. 
 
 283. Scope of Use of Averages. — As a rule, far too little 
 use is made in salesmanagement problems of the matter 
 of averages. It is very rarely that tests are made, for 
 instance, on pieces of advertising matter, which require 
 the expenditure of many thousands of dollars. Yet no 
 single item of sales expenditure is so dependent upon sheer 
 judgment of a probable response, or so much of a gamble. 
 The chance element can be greatly reduced by the use of 
 intelligently conducted tests by means of averages. 
 
 Averages may be used for any other individual item of 
 sales statistics — number of calls made per day, week and 
 month; average of towns called upon, towns missed; aver- 
 age amount of order, average of orders which have this or 
 that peculiarity. All these average facts, if ascertained 
 promptly and correctly, are of the most vital use in sales- 
 management. The development of the electric tabulating 
 machine has made possible much further and detailed use 
 of averages, since the punched-card plan enables statisties 
 to be obtained from any angle, and averages computed. 
 By means of this device Marshall Field & Co. can tell to- 
 morrow morning what percentage of to-day's sales were 
 sent C.O.D., or by express, or what percentage were orders 
 below $10 or over $100, etc. 
 
 It is bound to be a development in future salesmanage- 
 ment that many more of the minutest details of both past 
 and possible business matters will be ascertained and 
 studied in the light of averages. 
 
 284. The Psychology of Statistics. — Some of the distrust 
 and indifference to statistics found among some business 
 men arises from the instinctive realization that the human 
 nature factors behind statistics are more expressive, sig- 
 nificant and interesting than the statistics themselves. Of 
 course this is true, and only a hack statistician ignores
 
 STATISTICS OF SALESMANAGEMENT 359 
 
 the psychology behind the statistics. He merely uses the 
 figures as convenient pen strokes to enumerate the much 
 more significant conditions which the numerals represent. 
 Figures are mere ' ' counts of noses ' ' ; they are merely one 
 of the tools in the more important task of securing a com- 
 plete, true picture. The real task is to study the picture 
 as a whole, but this can only be done systematically by 
 enumerating such factors as can be counted. Only by 
 enumerating do we convey the measure of any factor, every 
 other method of conveying a picture being too blurred. 
 A newspaper reporter who cannot enumerate in his obser- 
 vations and descriptions is an unfit reporter. But he 
 must also be able to give the emotions, the atmosphere, 
 the more volatile and difficult parts of the picture if he is 
 a good reporter. 
 
 So in studying statistics; they must be regarded as ayie 
 way, the numerical way, of understanding a situation. To 
 say that the average income of the farmer is $4:00 a year 
 is not a true picture of farm conditions, though technically 
 the statistic may be connect. The farmer feeds himself and 
 his help and is free from much of the expense of the city or 
 town individual. His real income is much greater. The 
 trained student of facts will get behind the statistics to 
 test the auxiliary situation, as illustrated in this case. 
 
 The statistics of the income tax indicate that there are 
 less than 500,000 people with incomes over $3,000. This is 
 of course a very incorrect picture of the income situation 
 in the United States. There are a great many tax dodgers 
 in the lower end of the income tax scale ; also many exemp- 
 tions and special eliminations. The number of people of 
 incomes of $3000 and over is more nearly 850,000, possibly 
 over a million. 
 
 It is clear from the above instances that the routine 
 standard statistics very often do not mean what they ap- 
 pear to say. Only a tyro in the use of statistics thinks so;
 
 360 MODERN SALESIVIANAGEMENT 
 
 and in business the man who looks behind statistics is the 
 man who gains the advantage of clearer insight into true 
 conditions. The skilled students of market conditions are 
 especially deft in interpreting the psychological meaning 
 of statistics. They know the key facts which are alarm 
 bells for other conditions of importance. For instance, 
 there are sections of the United States where 48 hours con- 
 tinuous rain means a greatly reduced volume of crops, with 
 consequent results, months later, of increase in retail fail- 
 ures, decreased volume of retail trade and other conse- 
 quences not apparently related to rain. The increase or 
 decrease to a certain extent of world supply in certain 
 commodities means, a year later, certain definite condi- 
 tion of trade. 
 
 Statistics are valuable only for what you read out of 
 them, and it requires a great deal of special knowledge to 
 interpret statistics accurately. Each type of statistics on 
 each subject has an alphabet of meaning of its own, which 
 speaks the valuable messages they can carrj^ only when 
 that alphabet has been mastered. It is often supposed 
 that people using statistics have no imagination; whereas 
 the opposite is true; only those with excellent, trained 
 imagination can get the most out of the use of statistics. 
 
 285. The Law of Diminishing Returns. — This principle is 
 often cited or used erroneously, and is not always appli- 
 cable to the matters it is supposed to control. In other 
 words, while a well-defined rule of mathematics, it is not 
 always correct to apply it. 
 
 Briefly, the law of diminishing returns is the eco- 
 nomic principle that there is a point at which increased 
 effort produces diminished returns. Beyond a fixed point 
 increased expenditure for selling or advertising does not 
 produce the same proportional increase of return. The 
 ratio of return to expense falls after a certain point is 
 reached. This point needs careful thought by a sal^-
 
 STATISTICS OF SALESMANAGEMENT 361 
 
 manager, as it directly affects results of all kinds. An 
 increase of number of salesmen in a territory brings mathe- 
 matical increase in results up to a certain point, which 
 point bears no relation to possible trade statistics. Some- 
 thing is always lost in increasing mass effort; a principle 
 which is well illustrated by the experience of large and 
 small business houses. There is a point at which the mere 
 size of a business house diminishes its efficiency. This 
 point is of course constantly being put further away by 
 brains and organizing genius, in individual instances, but 
 the principle is operative in all cases. The great English 
 economist, Hobson, actually set a figure of capitalization 
 and volume at which the diminishing tendency began. 
 
 The principle of diminishing returns must be used as a 
 brake upon statistical calculation of too optimistic and too 
 easily calculated ratios of profits and sales, to both of 
 which factors the principle especially applies. 
 
 286, Analogy and Statistics. — It is a very narrow con- 
 ception of statistics to confine the study of them to 
 the thing in hand. One of the great uses of statistics is 
 to study correlative factors and conditions as a means of 
 suggesting or illuminating the subject in hand. In study- 
 ing the statistical possibilities of automobile sales in the 
 United States, for instance, it is valuable to study general 
 statistics of wealth, of purchase of pianos, rugs and other 
 luxuries, of living standards and habits, and many other 
 factors. 
 
 Many of the most brilliant conclusions in business or 
 elsewhere are arrived at by the use of reasoning by analogy 
 — by reasoning from one premise to another; if x equals 
 y, then y equals q; or even by further algebraic or geo- 
 metric processes. It is also true that the Euclidean process 
 of reasoning by elimination is valuable, in working from 
 statistics. 
 
 Facts which at first glance do not have significance or
 
 362 MODERN SALESMANAGEMENT 
 
 any conceivable relation to a problem, often have a very 
 direct relation when connected by analogous logic. Every- 
 thing is relative, and all things merge into each other in a 
 manner which makes possible an approach to a problem 
 through many different avenues of search. The statistics 
 of birth may possibly bear a relation to the sale of furni- 
 ture — only by the use of statistical imagination and reason- 
 ing by analogy can it be determined. Many great business 
 successes have been built on reasoning by analogy; statis- 
 tics concerning one matter have suggested possibilities of a 
 totally different kind. The high rate of consumption of 
 sugar per capita in the United States may have interest to 
 the seller of a remedy for diabetes; the statistics of im- 
 proved roads by states may provide the index to the char- 
 acter of the people there and be of interest to sellers of 
 luxuries to farmers, as might also the statistics of school 
 expenditure per capita. The number of people having 
 insurance policies may interest a variety of people not in 
 the insurance business ; also the number of people who are 
 shareholders in corporations. 
 
 The man who makes statistics work for him regards all 
 types of statistics as interesting sign posts. It is naive and 
 narrow to be interested only in immediate facts about your 
 own business. Schwab could not have made his famous 
 and fulfilled prediction of the great expansion of the steel 
 business without reasoning by analogy from statistics which 
 apparently had no relation to the steel business. Nor 
 could James J. Hill have anticipated the great develop- 
 ment of the Northwest without the same method, 
 
 287. The Law of Statistical Regularity. — The superb use- 
 fulness of statistics in sales work is exemplified in the law 
 of statistical regularity, which enables one even to throw 
 dice and foretell the average result. Four dice have a 
 total number of spots on both sides of 28. On the average, 
 14 should turn up each time. In 50 throws the total num-
 
 STATISTICS OF SALESMANAGEMENT 363 
 
 ber of spots turned up should be 700. This will vary very 
 little in any experiment — and proves that statistical analy- 
 sis may be applied successfully even to matters thought to 
 be pure chance. 
 
 Business need be in no sense a gamble to the man willing 
 to use the science of statistical regularity. He can even 
 regulate the degree of accuracy in analysis to the degree of 
 importance of his problem, simply by spending enough 
 money, time and brains on the work of diminishing the 
 probability of error. The number of statistical units ex- 
 amined and studied may be increased from 25 (the lowest 
 safe number to study) to hundreds and thousands and thus 
 achieve close to 100% accuracy. 
 
 Through the law of statistical regularity an analytical 
 salesmanager may feel his way to very important results 
 without more than a small degree of risk. He may not 
 need, or may not be able to afford, 100% accuracy, but the 
 most modest application of the law of statistical regularity 
 will be very much more accurate than merely judgment 
 alone. A salesmanager rises to the highest plane in his 
 profession when he develops humility before facts, and be- 
 comes diligent in search of facts. Once having discovered 
 the superiority of permitting actual conditions to register 
 themselves for his benefit through the law of statistical 
 regularity, he will never return to "armchair guesswork'^ 
 or "mahogany table vanity of opinion."
 
 CHAPTER XXXIII 
 
 IMAGINATION AND VISION 
 
 288. Feeling Out the Future. — In no other phase of busi- 
 ness is there greater need for every instinct^ imagination 
 and vision as in the salesmanagement of a firm which 
 is aiming to move forward. The qualities of mind and 
 feeling called into play are equal in every sense to the best 
 creative brains called for by any great art; for as in any 
 art, new things must be anticipated and created, the 
 progress of humanity must be judged, foreseen, influenced 
 and moved. New conceptions of devices of distribution 
 and wonders of organization must be made into a reality. 
 It is a far greater tax upon ingenuity to distribute goods 
 successfully than to invent new goods. 
 
 The chief sales executive — whether a president, vice 
 president, marketing manager or whatever his title — will 
 do well to give himself plenty of leisure and freedom from 
 detail, and plenty of counsel of a high creative order, so 
 that the best creative brains may be focused upon the 
 great major problems and opportunities in that business. 
 Salesmanagement to-day, unlike former times, dominates 
 the entire business and to a large extent dictates what the 
 factor}^ shall make. Therefore, since all the departments 
 of business rely upon the salesmanagement for their in- 
 struction and planning, the salesmanagement must be 
 years ahead of time in development planning. It must use 
 every tool, research, invention and investigation — but in 
 addition must apply imagination and vision in generous 
 measure if it would keep ahead of the march of time. 
 
 364
 
 IMAGINATION AND VISION 365 
 
 289. Unforeseen Developments. — ^Vou Moltke, the great 
 German chief of staff, said that no one strategical plan 
 siirvives in detail the first encounter with the enemy. The 
 most carefully and minutely planned campaign is apt to 
 fail through the effects of unforeseen conditions. The 
 great war has tragically verified this. The same principles 
 apply in business planning and campaigning. 
 
 For this reason strategic planning of an advance sort ia 
 necessary, along lines such as the shaping of reserve plans 
 to meet as many possible serious contingencies as can be 
 imagined. 
 
 The Prest-o-Lite manufacturers could hardly be expected 
 to have foreseen the popularity of electric lighting systema 
 for automobiles which made su.ch serious inroads on their 
 gas lighting sales. The bicycle and roller-skate manufac^ 
 turers could hardly have been expected to anticipate tha 
 rapid decline of these popular crazes. Therefore some- 
 thing to meet their sudden situation was especially impor^ 
 tant, for it shows that few are immune from change. 
 
 290. Reserve Resources. — Business is in effect practicall}' 
 an economic warfare full of surprises and cruel blows. 
 This compels the making of plans for many contingencies ; 
 also the modification of all plans and expenditures in the 
 light of future uncertainty. The manufacturer who en- 
 thusiastically builds new factories when orders come piling 
 in may be sacrificing all his profit, for by the time his 
 factory is built the demand may simmer down and all 
 efforts fail to again bring it back to where it was. This 
 has been amply ilhistrated by war order manufacturers. 
 The situation calls for: 
 
 1. Advance knowledge of basic tendencies, and plans 
 to meet or take advantage of them. 
 
 2. Organization drilling to insure capacity to meet com- 
 ing requirements or emergencies.
 
 366 MODERN SALESMANAGEMENT 
 
 3. Understudying of all important officers and em- 
 ployees. 
 
 4. Cheek up methods to insure against defraud by em- 
 ployees or undermining by business enemies. 
 
 5. Constant inspection of sources of information and 
 advice to insure that they are not misleading. 
 
 6. Frequent strategical trials of strength both of the 
 firm and of employees along extra difficult lines in order to 
 demonstrate capacity, fitness and initiative. 
 
 7. Constant trying out of new ideas, methods and plan§ 
 to make sure that no unusually lucrative one is missed. 
 
 8. Constant pre-emption of ideas, methods, patents, etc., 
 which might be of any service to competitors. 
 
 9. Guard against weaknesses; make the most exclusive 
 and strong points and study the proper time and methods 
 for offensive and defensive campaigning. 
 
 10. Constant hard work by the best minds that can be 
 employed upon the difficult problems of the business — so 
 that the benefits of solution of them will be secured before 
 others secure them. 
 
 11. Unsparing efforts to get the ablest men in your 
 line of business to work for you, in full appreciation that 
 the human factor is one of the greatest assets in your busi- 
 ness to-day. 
 
 12. Regular personal analysis and drill to prevent ruts 
 from being formed in one's mind and thus being made 
 antagonistic to change and development. 
 
 291. Watching" Formative Periods. — Consensus of busi- 
 ness experience shows that all lively new businesses usually 
 have much the same history. They struggle with varying 
 degrees of success for two to seven years in a formative or 
 experimental period, from which time they begin to shoot 
 upward with speed, reaching a high peak in a year or two 
 later, but going down almost as rapidly until a level half 
 way or less between the low and high points is reached.
 
 IMAGINATION AND VISION 367 
 
 Wise strategical planning in business, in view of this 
 universal experience, consists of laying plans to derive as 
 much "cream" out of the high peak period as possible 
 and endeavoring to prolong it as far as possible. It is 
 fatal to misuse the profit of the peak period, or to look 
 for a continuation of the peak. A few businesses of a 
 staid and staple character never reach any peak, but have 
 a definite cumulative effect which is the thing to be most 
 carefully guarded and developed with strategic planning. 
 
 It means everything to the future of the business that 
 those running it know their bearings and are able to see 
 the general direction in which they are going, and steer 
 for strategic advantage. This requires close attention to 
 the advanced strategical points herein outlined. 
 
 292. The Great Power of Ideas. — There is no quality so 
 valuable in business as ingenuity and origination, simply 
 because there is no difficulty so hard t]i(\t it cannot be over- 
 come hy an idea. An idea is the most tremendous explosive 
 known in modem business "warfare." All splendid busi- 
 ness achievements and victories were ideas before they 
 were made realities. Most great difficulties are solved by 
 the application of ideas, developed under pressure or the 
 incentive of big gain or big fees or big honors. 
 
 It has heeii repeatedly proven that the more able the 
 husiness executive, the more exclusively he devotes himself 
 to ynatters requiring imagination and visiom,. All other 
 work is administrative detail, as it deals with the things 
 that are routine or are the detailed outcome of policies 
 based on such vision. The executive whose mind cannot 
 think in terms of higher strategy may therefore know that 
 he still requires "postgraduate" business training before 
 being able to class himself as a first-grade executive with 
 a future before him. 
 
 293. laying Protective lines. — A nation needs to protect 
 itself against attack. So must a bu.siness. It must also
 
 368 MODERN SALESMANAGEMENT 
 
 protect itself against changed conditions and internal 
 dangers. Therefore, the factors against which a well- 
 planned business must guard may be thus classified: 
 
 1. "Weakness from within ; mistakes in organization 
 and management; nepotism, favoritism, contentment, po- 
 litical intrigue. 
 
 2. Changing tendencies of the consuming public or the 
 trade. 
 
 3. Competition and economic and inventive develop- 
 ments. 
 
 The greatest basic danger to an existing business is 
 probably blindness to changing tendencies on the part of 
 the buying public, either through a change of taste (styles, 
 fads) or through changing methods of living. 
 
 An example of havoc played by fads is the bicycle in- 
 dustry. The decline of cycling as a public recreation 
 ruined many industries and retail establishments. Only 
 the far-seeing ones among them changed over in time to 
 automobile and other lines of manufacture. 
 
 As to styles, the failure of a million dollar petticoat 
 manufacturer, because petticoats went out of fashion, 
 shows the fate of the firm that does not keep "an ear to 
 the ground" all the time, or that does not plan auxiliary 
 business to which they can turn in case of sudden change. 
 For instance, every business dependent on frequently 
 changing style should also have some department that 
 makes or deals in staples, if possible. 
 
 A firm making jet trimmings for women's wear, for 
 instance, has its machines so adjusted that they can be 
 quickly switched to other styles, the popularity of which 
 is sensed in time. 
 
 It is essential, in this rapidly moving civilization, to 
 watch changes in habit and method of living. For exam- 
 ple, the growth of electric and gas companies in many 
 wiall communities has made serious in-roads upon the
 
 IMAGINATION AND VISION 369 
 
 stove industry, bringing some firms close to the verge of 
 failure. Some of tliem have averted disaster by making 
 combination stoves for burning coal or gas ; some by mak- 
 ing electric utensils. 
 
 Changing laws must be taken into consideration here. 
 The preferential parcel post rate with its zone system, the 
 advent of low-priced automobiles, electric cars, jitneys, etc., 
 are gradually driving the trade of the residents of small 
 communities to the retailers of the larger center of the 
 section. This means important changes in stocking up the 
 stores in the small towns and in the newly stimulated trad- 
 ing centers. 
 
 Investigation shows that practically every business is 
 sooner or later affected by changing conditions, and in a 
 large number of cases it has been found that lack of under- 
 standing of these conditions, or neglect to lay protective 
 lines to meet them, has been a great factor in preventing 
 or limiting a successful business. Economic study and 
 thought are an absolute essential to the business man of 
 imagination and vision to-day.
 
 CHAPTER XXXIV 
 
 THE STORY OF AN ACTUAL SELLING CAMPAIGN 
 
 294. Reason for Describing an Actual Campaign, and for 
 Selecting This One. — It is a fault of books that they provide 
 the generality of a subject but neglect the particular. It 
 is far simpler to learn by picture than by abstract concept ; 
 therefore, to visualize an instance of a modern sales cam- 
 paign based on sound, up-to-date principle and procedure, 
 is in itself a liberal education in salesmanagement. 
 
 A sales campaign is in a sense a battle, and as in mili- 
 tary matters, it is far more interesting and instructive to 
 read an account of a battle than to study the principles of 
 war. 
 
 As for the selection of this particular campaign, there 
 is no reason except that it was an unusually well analyzed 
 campaign, methodically carried out and successful in con- 
 clusion. It is frankly and freely described, and is full of 
 details of ingenuity and progressive principle and policy. 
 There are, of course, many other campaigns quite as in- 
 teresting or more so, but this one happens to be more 
 available than others. The story is printed in the words 
 of Marquis Eegan, Sales Promotion Manager for the Ever 
 Read}^ Works of the National Carbon Co., whose campaign 
 it was. The personal narrative form is permitted in order 
 to add to its vividness. Mr. Eegan told the story orig- 
 inally before the Salesmanagers' Club of New York. 
 
 295. The Strategic Situation Before the Campaign Started. 
 — The Ever Ready organization had for nearly twenty 
 
 370
 
 STORY OF ACTUAL SELLING CAMPAIGN 371 
 
 years been making an electric flashlight. It had other elec- 
 trical products, but its advertising and sales policies were 
 built around this flashlight product. The name Ever Ready- 
 is one that is used by a multitude of other concerns for 
 different products. So its significance was confused in the 
 minds of dealer and consumer. The dealer was likely to say 
 to the consumer presenting our card: ''No, I don't want 
 any safety razors to-day. ' ' 
 
 In 1916 we had some five hundred distributors on our 
 books. There were wholesale jobbers, selected according to 
 their ability and willingness to make a success of an elec- 
 trical product such as ours. We do not appoint distrib- 
 utors broadcast, or recognize all jobbers as distributors. 
 Orders taken by our own men are credited to the dis- 
 tributor preferred by the dealers. We had an organi- 
 zation of some fifty men calling on retail dealers anc^ 
 twenty-five calling on the wholesale distributors. 
 
 It was important, therefore, that we should get out of 
 the confusion caused by a name too common to be de- 
 structive for our vital leading product. We knew that 
 we must quickly find the right name and quickly shift the 
 good-will of the old name into the new name with as little 
 loss of energy as possible. In fact, we were bold enough 
 to hope for a line of action which would enhance our good- 
 will in the very act of changing. Once the new name was 
 accomplished we must go after the greater volume of 
 business which we sensed that we were entitled to. 
 
 296. The Preliminary Plan to Get and Popularize Quickly 
 a New Name. — After deliberation and consultation we de- 
 cided on a plan of action to achieve a new name with a 
 bold stroke for simultaneous publicity to make the public 
 acquainted with it. This was in the fall of 1915. We 
 prepared our organization for the big things coming by 
 abolishing our so-called advertising department, as such, 
 and organizing instead a sales promotion department, in
 
 372 MODERN SALESMANAGEMENT 
 
 order that a more effective line-up might be made with the 
 two vital branches of the work — advertising and sales. 
 
 Then the plan itself was devised. It was labeled to the 
 public as the "Eveready Name Contest." The keynote was 
 that we offered $3,000.00 for a better name than "flash- 
 light." That campaign, which was the first campaign or- 
 ganized with a definite sales objective, cost somewhere in 
 the neighborhood of $150,000. "We did not spend to exceed 
 $25,000 in actual publicity. The rest of it was spent in 
 dealer and distributor cooperation. It cost us $15,000 to 
 sell the idea to the dealers, showing that we lacked a close 
 tie-up with our retail trade. The prize money, which, 
 when we got through, amounted not to $3,000 but to $12,- 
 000, because we selected a name that had been selected by 
 four people. All four were women and lived in different 
 cities, and we paid the full amount of the prize to each. 
 We got value out of the duplication by making a great sales 
 promotion feature of the four presentations. 
 
 Incidentally, an advertising manager as such could have 
 carried this plan only up to a certain point, the dividing 
 line between sales and advertising. The sales promotion 
 department was enabled to go far beyond this. It got the 
 complete plan in all its selling angles definitely outlined, 
 the duties to be assigned to the sales organization in con- 
 nection with that plan defined and operated with the gen- 
 eral sales manager and the sales department to see that 
 those duties were properly carried out. 
 
 297. The Preliminary Trade Work. — The plan provided 
 for complete cooperation of the trade and the stocking of 
 goods before a line of the prize announcement appeared. 
 To the salesmen of our distributors we offered a jack-pot 
 prize of some $2,000 for the largest volume of orders for 
 thirty days previous to the contest, and we got each dis- 
 tributor to appoint a contest manager an inside man who 
 would direct the salesmen during this contest, turning in
 
 STORY OF ACTUAL SELLING CAMPAIGN 373 
 
 to us weekly reports, names of dealers and amount of sales 
 during this given month. "We got 60 per cent of our dis- 
 tributors to enter their men in this contest. We paid cash 
 prizes to thirty winning crews, averaging from $10 up to 
 $35 per man. 
 
 The net result was to sell our goods to the trade before 
 we spent our publicity. We got them well distributed 
 into the hands of the jobbers and of the dealers who were 
 to make prize window displays from October 7th to Oc- 
 tober 14th, for which we offered $4,000 in cash prizes. In 
 the meantime, we made the dealers understand that we 
 were offering this $3,000 prize money to bring the public 
 into their stores. The objective was SALES for the dealer. 
 We showed them the contest blank. During that contest 
 month from October 7th to November 7th, nearly fifty 
 thousand dealers distributed five million contest blanks. 
 When people came in and asked for the contest blanks it 
 was a great opportunity to sell them flashlights, and thou- 
 sands of live dealers took advantage of this. 
 
 298. Results of the Contest.— We received 531,000 sug- 
 gestions for a better name than "flashlight." The}^ came 
 from men, women and children of every kind, class and 
 description, from the East Side of New York, from gov- 
 ernors of states, from highly paid executives. The con- 
 test was discussed everywhere, no matter where you went. 
 The executive of our company went down to Florida on a 
 vacation in January. In a little wayside hotel a little girl 
 said: "I am going to have a bicycle, the Eveready people 
 are going to give me one ! ' ' And her father, the hotel 
 proprietor, said: "Haven't you heard about the contest?" 
 Why, she and her mother sat up all night making up 
 names! And so it went. The dealer who had expected 
 to put in a window display for one week only, actually 
 maintained his display during the entire mouth of Oc- 
 tober and gave out contest blanks.
 
 374 IMODERN SALESISLVNAGEMENT 
 
 The dealers during that month sold the enormous stocks 
 we had sold to the distributors. I have many reports show- 
 ing dealers who turned their stocks over three times in one 
 month. A month after the contest I went down to Virginia 
 for a day or two. There a dealer still had his window dis- 
 play up and was giving out contest blanks. He "didn't 
 know the war was over ! ' ' He was still selling flashlights 
 on the contest plan. 
 
 During the contest the dealers spent of their own money 
 nearly $30,000 for local newspaper advertising. 
 
 299. After the Name "Was Selected. — Finally, the new 
 name was selected and we made the announcement on April 
 5th, 1917. You remember what was happening about that 
 time. We were entering the war. The public mind waa 
 not on contest things. Nevertheless, we had thirty thou- 
 sand dealers making window displays, putting the an- 
 nouncement poster in their windows and buying local news- 
 paper space to tell their local publics the result. "^Ve 
 bought space in three or four hundred local newspapers 
 ourselves, and got splendid cooperation from the news- 
 paper advertising departments in lining up the trade lo- 
 cally. 
 
 You can see that the merchandising was the keynote of 
 the entire plan. From a publicity viewpoint we wanted 
 people to distinguish between the "Eveready" flashlight 
 and other kinds of products sold under the name Ever 
 Ready. This campaign resulted in actual sales to distrib- 
 utors, to dealers, to the public, not only during the con- 
 test, but continuously ever since. 
 
 300. Strategic Deductions from the Campaign. — "When 
 this campaign was first projected in June, 1916, until it 
 was completed in November, our dealer lists grew by leaps 
 and bounds from 23,000 to 55,000. This is more dealers 
 than any one company could cooperate closely with in a 
 promotional way. We had the usual instances where one
 
 STORY OF ACTUAL SELLING CAMPAIGN 375 
 
 dealer complained that the dealer across the street never 
 had any Eveready goods and should not have had a window 
 display prize. We knew a great many competitive dealers 
 had "borned in" and were cashing in on the legitimate 
 activities of the Ever-ready dealer. Nineteen hundred and 
 seventeen was a year fraught with worries and uncertain- 
 ties. Nobody knew what business was going to be, or 
 whether materials could be had. 
 
 It seemed, then, there was just one thing to do, and that 
 was to find by investigation what our market consisted of. 
 So in 1917 we made an analysis. We prepared a special 
 questionnaire for these 55,000 dealers. The blank told as 
 what kind of a dealer John Smith was, what kind of a 
 store he had and the various lines he sold, what the size 
 of his windows were, and his attitude towards our lines. 
 It put him in one of five classes, Eveready Exclusively, 
 "Combination," Competitive exclusively, Undesirable or 
 Not Selling Flashlights at all. 
 
 When we got through with this huge investigation we 
 had FACTS about our retail distribution. We did not 
 need to guess or grope, we knew. There were ten thousand 
 dealers in "tank" towns not reached by our men. We 
 used a questionnaire on them, getting three thousand ques- 
 tionnaires filled in. They told us things about our busi- 
 ness, things about our methods and service, things about the 
 product, that were decidedly good for the house to know. 
 That gave us a whale of an opportunity to establish per- 
 sonal contact with those dealers, through genuine type- 
 written letters. Normally that would have been handled 
 by the sales department as a matter of sales department 
 routine, but we had created a department which partook 
 of the sales and advertising functions and understood the 
 problems of each, so that we could handle such a matter 
 with a thorough appreciation of all the elements involved. 
 
 301. Ready Now for the Big Campaign.— 1916 and 1917
 
 376 MODERN SALESIilANAGEMENT 
 
 were in reality only preliminary to real sales promotion. 
 We had not known the necessary facts about our field and 
 our trade, and we had never gone to the public with propa- 
 ganda which thoroughly established our trade-mark, our 
 product and its uses. So we came, during 1918, to the 
 real problem of every manufacturer who is making a prod- 
 uct to be sold through retail dealers. How shall I tie up 
 the dealer so that he will, first, carry an adequate stock; 
 second, concentrate his efforts on my line, and, third, put 
 some real selling effort behind it? 
 
 Many manufacturers have accepted the general proposi- 
 tion that the best you can do is to get a part of the dealer's 
 time and attention that he will carry your goods along 
 with others of the same character and if you are getting 
 a reasonable amount of business out of him you ought to 
 be satisfied. It seemed to us that perhaps we could go a 
 bit farther. Of course, the dealer does not usually care 
 how good your line is, if he does not have the demand 
 over the counter. You can give him all the sales helps you 
 like ; the demand for the goods has to be there. 
 
 302. The Three-Year Plan of Growth.— ^Ye decided to 
 establish what we called a Blue List of dealers. We gave 
 our plan a label for the wholesale and retail trade, calling 
 it the Eveready Three Year Plan. Briefly, we proposed to 
 create demand through local advertising in every city in 
 the United States in a period of three years, tying up the 
 product to selected local dealers in the public mind. We 
 decided that during the first year we would take forty of 
 the largest cities in the United States; during 1919 we 
 would take a second section; and during 1920 we would 
 cover the third section, comprising every city of 25,000 
 or less. 
 
 Naturally, we selected dealers in these forty cities on 
 the basis of the 1917 analysis above referred to. With 
 the acts before them, plus down-to-the-minute information
 
 STORY OF ACTUAL SELLING CAMPAIGN 377 
 
 that a traveling representative naturally has, the sales de- 
 partment nominated the proposed Blue List dealers for 
 each city. 
 
 303. Signed Cooperation by Dealers. — And we did not 
 simply tell the dealer we had put him on our Blue List 
 and show him what his *' Christmas package" of sales co- 
 operation would consist of. "We made him sign an appli- 
 cation blank to become a member of the Eveready Blue 
 List, and before he signed it, he had to understand not only 
 the nine definite features of cooperation offered him by 
 Eveready, but the nine articles of cooperation which he 
 must carry out if the plan was to succeed. As final evi- 
 dence of his sincerity he was asked to give our representa- 
 tive a substantial stock order. During the canvass of these 
 forty Blue List cities selected for the first year, our men 
 wrote up more business than ever before for a similar 
 period. 
 
 In instructing the salesmen how to sign up Blue List 
 dealers, nothing was left to the imagination. The sales 
 promotion department prepared a portfolio, illustrating the 
 sales helps, and gave each Eveready representative printed 
 instructions covering his interview with the dealer step by 
 step. He was told what to say, though not necessarily how 
 to say it. He was drilled on the entire proposition. 
 
 The Eveready part of the cooperation covered seasonable 
 campaigns from month to month, based on popular flash- 
 light uses and the various types of Eveready Daylo cases 
 for these uses. Of course, the dealer was supplied with 
 the necessary window and store material for these cam- 
 paigns. As a Blue List dealer his name appeared in every 
 newspaper advertisement. Other dealers selling our goods 
 could not have their names in the advertising until they 
 qualified as Blue List dealers. 
 
 304. Conditions for Becoming a "Blue List Dealer." — The 
 important elements of the Blue List plan are found in four
 
 378 MODERN SALESMANAGEJilENT 
 
 features covered by the nine conditions on the back of the 
 Blue List bhmk. These are merchandising fundamentals: 
 
 1. lie must carry adequate stock, kept in good condition, 
 and must display same in a suitable show-case of his own, 
 permanently placed in the store. 
 
 2. As most flashlights look alike, he must maintain dis- 
 play material, furnished by Eveready, in the show-case 
 with the goods to identify the Eveready Daylo line. 
 
 3. He must use the window and store material con- 
 sistently, thus making his own store a suitable advertise- 
 ment, tying up with the advertised cgnnpaigns. 
 
 4. He must maintain on his door or window the 
 Eveready Service Station Decalcomanie Transfer which we 
 supply. There is no better example of the merchandising 
 effect upon the dealer than the story of what happened with 
 the window transfers. You know how the average high- 
 class dealer feels about having such a transfer on his store. 
 We did not say to these dealers — ' ' Please, dear, good, kind 
 Mr. Dealer, let us put up this transfer." We led him 
 right up to the point where he saw that unless his store 
 was so labeled the public could not identify it as a place 
 for obtaining flashlight batteries and bulbs, as advertised 
 in the local papers. The transfer design was widely fea- 
 tured in the newspaper and billboard advertising, and this 
 fact was kept constantly before dealers. 
 
 Take a concrete example of the widespread acceptance 
 of the transfer and the distribution obtained by the Blue 
 List plan. In the city of Detroit my inspection trip showed 
 138 Blue List dealers where distribution previously did not 
 exceed half this number. There were not half a dozen 
 instances where the window transfer was not in use. 
 
 305. Checking a "Fall Down" by Salesmen. — Of course, in 
 a plan of this kind the salesmen slipped up on some de- 
 tails. For example, we got out a flashlight Signaling Code 
 for the dealer to distribute, and found that the salesmen
 
 STORY OF ACTUAL SELLING CAMPAIGN 379 
 
 had not gotten the idea across that the purpose of these 
 was to create an opportunity for sales, and not simply 
 to educate the public. We got the salesmen in and sold 
 the idea over again and they were putting it across in 
 fine style until the Government asked us to discontinue 
 teaching the public how to signal with a flashlight for 
 war-time reasons. 
 
 In starting the Blue List plan, we fully informed our 
 distributors, and those located in Blue List cities were 
 tied up specially to the campaign to insure service to the 
 retail dealers. 
 
 Perhaps you'll ask how matters were handled when the 
 Sales Promotion Department raised some criticisms on a 
 salesman's work. The answer was exceedingly simple. 
 The salesman's work was based on the plan, so that when 
 a criticism was made it was not based on a matter of Sales 
 Promotion Department of opinion, but on the details of 
 the plan, which had been fully agreed upon by the Sales 
 and Sales Promotion Departments. 
 
 306, The Campaign Outlined in Detail. — Our entire pro- 
 cedure had been reduced to writing and approved by all 
 concerned so that there was no possible chance for crossed 
 wires. Let me quote the four paragraphs that cover this : 
 
 1. The sales plan for each line is prepared in advance 
 for an entire year, together with budget estimates. 
 
 2. The Sales Promotion Manager submits his plans in 
 writing to the Vice-President and General Manager, Gen- 
 eral Salesmanager and the Branch ]\Ianagers. Plans are 
 discussed in conference and the program agreed upon, the 
 Sales Promotion Department thereby having authority to 
 put the plans into effect and to obtain full cooperation 
 from the field organization. 
 
 3. Production and distribution are carried out in ac- 
 cordance with the approved budget for the year. 
 
 4. A "train-dispatching" system of schedules and due
 
 380 MODERN SALESMANAGEMENT 
 
 dates coordinates production and distribution of sales helps 
 and advertising with the program for each line and cam- 
 paign. 
 
 307. How the Sales Promotion Department Operates. — To 
 indicate the plan and scope of the Sales Promotion Or- 
 ganization, note the following: 
 
 An interlocking system of salesmen's reports is main- 
 tained with the cooperation of the Sales Department. The 
 Sales Promotion Department is automatically advised of: 
 
 1. Appointment or elimination of distributors. 
 
 2. Distribution of sales helps by the salesmen. 
 
 3. Reports on trade conditioned. 
 
 4. Specific reports on individual distributors and deal- 
 ers in connection with any given campaigns. 
 
 In like manner, information issued and service rendered 
 to the trade is automatically reported in detail to the 
 Sales Department. 
 
 The records of the department are designed to be a 
 complete file of: 
 
 1. Trade statistics for each line. 
 
 2. Amount and cost of sales helps furnished each dealer 
 or jobber. 
 
 3. Perpetual inventories of all sales helps materials, 
 for maintenance of stock and to prevent materials dying 
 on our hands. 
 
 4. A running historj^ of service desired by and given to 
 individual distributors and dealers. 
 
 5. Competitive data by territories and localities for 
 each Eveready line. 
 
 A monthly report is furnished each branch, showing total 
 sales promotion expenditures of all classes for each line of 
 territory. 
 
 Detailed records of service rendered distributors and 
 dealers are sent to each territory weekly for the informa-
 
 STORY OF ACTUAL SELLING CAMPAIGN 381 
 
 tion of the salesmen, as a means of obtaining additional 
 business. 
 
 To make Sales Promotion expenditures a definite mat- 
 ter of record, the Accounting Department ledger classi- 
 fication now coresponds to our budget classifications. 
 
 308. Principles Behind Successful Sales Promotion De- 
 partment. — The ksynote of all our efforts may be stated as 
 follows : 
 
 The creation of a Sales Promotion Department as a 
 separate and distinct unit is a logical step forward in busi- 
 ness specialization. 
 
 Such a department concentrates upon one master prob- 
 lem — marketing. Within the Sales Promotion organ- 
 ization must be combined a broad and thoroughly practical 
 knowledge of consumer demand and trade distribution, 
 plus an equally broad and accurate knowledge of the com- 
 pany's products and the nature of the service they render 
 to their users. 
 
 The ideal Sales Promotion Department considers the es* 
 tablished policies of the company, measures accurately th^ 
 present relationship of product, market and distribution, 
 and devises ways and means based upon sound salesman^ 
 ship for fertilizing the consumer field, intensifying demand 
 and perfecting distribution and service to the public 
 through the trade. 
 
 Analysis and sales judgment thus crystallize into 
 plans, plainly labeled for the use of the sales and dis^ 
 tributing organization. Only by establishing definite sales 
 objectives (plans) can the tangible evidences of so-called 
 advertising in its many forms be produced and distributed 
 with profitable results. For, the use of advertising is 
 valuable only to the extent in which it coordinates with 
 definitely planned sales effort. 
 
 Sales Promotion results must be obtained through co- 
 operation rather than by authority. The department's
 
 382 MODERN SALESEIANAGEMENT 
 
 selling ability is daily tested by its ability to market to 
 tbe sales distributing organizations the ideas that they, in 
 turn, must market to the public. The Sales Promotion 
 Manager must accomplish this without in any way en- 
 croaching upon the authority of other executives.
 
 INDEX 
 
 Adjusting the appeal of the 
 prospect, 260 
 
 Adjusting salesman to organi- 
 zation work, 186 
 
 Administration problems de- 
 fined, 236 
 
 Advantages and disadvantages 
 of selling to jobbers, 86 
 
 Advertising as a competitive 
 tool for prestige, 108 
 
 Advertising assistance, making 
 salesmen sell, 285 
 
 Advertising, salesmen and, 288 
 
 Advertising's part in sales con- 
 ferences and conventions, 288 
 
 Advertising to cut down intro- 
 duetoiy sales expenses, 289 
 
 After the name was selected, 
 374 
 
 Allegiance to house, 191 
 
 Analogy and statistics, 361 
 
 Analysis, 7 
 
 Analysis of general basic fac- 
 tors, 347 
 
 Analytical point of view, the, 5 
 
 Analytical procedure for a 
 new article, 341 
 
 Analyzing physical appear- 
 ance, forehead and eyes, 262 
 
 Analyzing physical appear- 
 ance, lips, chin, etc., 263 
 
 Appearances, can salesmen be 
 picked from? 125 
 
 Application of the point sys- 
 tem, 170 
 
 Application forms, 127 
 
 Applying engineering stand- 
 ards to sales work, 338 
 
 Applying the per capita meas- 
 ure, 121 
 
 Appraising good will, 235 
 
 Authority and responsibility, 
 29 
 
 Automatic sales through smooth 
 running distribution, 76 
 
 Averages, law of, 356; increas- 
 ing average of sales, 301 
 
 Beaver Board Co.'s, experi- 
 ence, 190 
 
 Best lines on which to split ter- 
 ritory, 112 
 
 Bonus and certificate plans, 321 
 
 Bonus and contest plans, 154 
 
 Branch warehouses, 87 
 
 Budget, sales, 238 
 
 Budgeting a quota, 242 
 
 Bulletins, letters, house organs 
 as stimulators, 161 
 
 Burrough's leagues, 163 
 
 Campaign, outlined in detail, 
 
 379 
 Can salesmen be picked from 
 
 appearance? 125 
 
 383
 
 384 
 
 INDEX 
 
 Canvassing and tabulating 
 
 trade sentiment, 344 
 "Caveat" strategy', 219 
 Centers, jobbing, 114 
 Changing the public's habits 
 
 and standards, 94 
 Charting the sales organization, 
 
 38 
 Checking a "fall down" by 
 
 salesmen, 378 
 Checking sales work, 346 
 Chronological order of lines of 
 
 investigation, 341 
 City territoiy, special prob- 
 lems, 115 
 Classification of factors against 
 
 which business must guard, 
 
 368 
 Classification of strategic poli- 
 cies, 207 
 Clerk education, 323 
 "Closing," the fine art of, 267 
 Color scheme for maps, 333 
 Commissions, salesmen's, 142 
 Common errors in sales cost 
 
 figuring, 246 
 Compensation for salesmen, 138 
 Competition, 102 
 Competition for prestige, 107 
 Complicated series strategy, 
 
 209 
 Concentration of saleswork, 79 
 Conditions for becoming a 
 
 "Blue List dealer," 377 
 Conditions which make sales 
 
 schools necessary, 198 
 Conferences, 44 
 Confusing or "feint" strategy, 
 
 211 
 Consumer data by districts or 
 
 counties. 337 
 
 Consumption, surveys of fu- 
 ture, 345 
 
 Contests, 154, 159 
 
 Contingencies, 365 
 
 Conventions, sales, 175 
 
 Cooperation in the develop- 
 ment of good will, 233 
 
 Copy, viseing of, 281 
 
 CoiTect conception of sales or- 
 ganizations, 33 
 
 CoiTect physical arrangement 
 for conventions, 178 
 
 Correct relation of the article 
 to the sales plan, 16 
 
 Correcting erroneous notions 
 that salesmen develop, 189 
 
 Cost of aggressive selling, 248 
 
 Cost of doing business in vari- 
 ous retail lines, 297, 299 
 
 Costs and profits traced to in- 
 dividual salesman, 253 
 
 Creating demand, 92 
 
 Crediting mail sales and uncol- 
 lectable accounts, 147 
 
 Data needed concerning sales 
 districts, 119 
 
 Data on profits, 252 
 
 Dealer heli^s, 317 
 
 Dealing with the question of 
 drink and over-fondness for 
 women, 194 
 
 Decreasing the retail cost of do- 
 ing business, 297 
 
 Defense strategy, 213 
 
 Definition of good will, 230 
 
 Degree of authority of sales de- 
 partment over product, 25 
 
 Demand as a state of mind, 92 
 
 Demand creation, the technical 
 tools of, 97
 
 INDEX 
 
 385 
 
 Demand creation in relation to 
 
 a mass movement, 95 
 Departmented and itemized 
 
 cost, 299 
 Desirable customers, 277 
 Detailed summaries, 334 
 Development and maintenance 
 
 of self-faith, 184 
 Development of tendencies in 
 
 the buying public, 98 
 Difference between policy and 
 
 principle, 64 
 Differences between staple and 
 
 specialty salesmen, 152 
 Different forms of sales organ- 
 ization, 34 
 Difficulties and problems in 
 salesman's compensation, 138 
 Direct action or offensive strat- 
 egy, 207 
 Direct selling, to retailers, 85 
 Distribution as a mechanism, 
 
 82 
 Distribution, percentage of, 
 
 81 
 Distribution strategy, 217 
 Distribution, the seven elements 
 
 of successful, 77 
 Districts and their boundaries 
 
 and natural centers, 118 
 Districts, sales, 119 
 Divisions of sales cost, 246 
 Domination strategy, 218 
 Drawing accounts, 148 
 Drink, and salesmen, 194 
 Dynamic point of view, the, 7 
 
 Educational campaigns, 99 
 Educational effort of dealers to 
 
 increase distribution, 83 
 Educational strategy, 214 
 
 Efficiency, 83 
 
 Eliminating the fear of compe- 
 tition, 188 
 
 Employees' idea regarding their 
 position, 43 
 
 Engineering standards, apply- 
 ing to sales, 338 
 
 Equality and uniformity, 149 
 
 Equipment, salesmen's, 275 
 
 Equipping sales people to push 
 goods, 293 
 
 "Esprit de Corps," 43, 270 
 
 Essential details of convention 
 arrangement, 178 
 
 Ever-ready campaign, 370 
 
 Examinations and certificates 
 of passage, 203 
 
 Example of cost of aggressive 
 selling, 249 
 
 Example of merchandise group- 
 ing for point system, 172 
 
 Example of symbols, 275 
 
 Expense reports and expense 
 accounts, 336 
 
 Experimentation and market 
 test, 17 
 
 Eyes, 262 
 
 Facial expressions, 256 
 
 Factors for point system re- 
 wards, 173 
 
 Factors for which people pay 
 higher prices, 48 
 
 Factory, capacity and seasonal 
 variations, 29 
 
 Facts, humility before, 363 
 
 Featuring a single policy as a 
 keynote, 68 
 
 Feeling accompanying every 
 idea or expression, 255 
 
 Feeling out the future, 364
 
 386 
 
 INDEX 
 
 Fitrhting invisible competition, 
 296 
 
 Fitting the territory to the 
 salesman, 122 
 
 Fixing of authority and respon- 
 sibility, the, 29 
 
 Florence Manufacturing Co., 
 322 
 
 Freight considerations, 115 
 
 Function, 11 
 
 Future consumption surveys, 
 345 
 
 General profit and price policy, 
 54 
 
 General records that a sales of- 
 fice should have, 336 
 
 General sales surveys, 346 
 
 Getting power and pimch out of 
 advertising, 293 
 
 Getting salespeople to think, 
 295 
 
 Getting sales punch to retail- 
 er through jobbers, 88 
 
 Globe-Wernicke strategy, 209 
 
 Good-will, 224, 230 
 
 Good-will and advertising de- 
 partments, 231 
 
 Good-will strategy, 216 
 
 Goods, 22-23 
 
 Goods must render the service 
 the customer expects, 222 
 
 Graphic systems, 329 
 
 Habit of thought, 265 
 
 Habits and standards, chang- 
 ing public's, 94 
 
 Handling compensation of 
 jimiors, 149 
 
 "High spot selling" versus con- 
 
 centration and intensified 
 
 work, 79 
 Honor as stimulation and in- 
 centive, 155 
 Hood's Sareaparilla offensive 
 
 strategy, 207 
 House oi'gan, for stimulating, 
 
 161, 319 
 House policy as a competition 
 
 safeguard, 102 
 House policy, standardizing, 
 
 270 
 How aggi'essive advertising 
 
 builds distribution, 82 
 How much tenitory can a 
 
 salesman cover? 113 
 How the sales convention de- 
 veloped, 175 
 How the sales promotion Dept. 
 
 operates, 380 
 How to develop individuality, 
 
 19 
 How to measure the efficiency 
 
 of a policy, 67 
 How to plan for contingencies, 
 
 365 
 How to shape a thorough-going 
 
 plan of compensation, 143 
 Humility before facts, 363 
 
 Idea, feeling accompanjdng 
 
 each, 255 
 Ideal plan for contents of 
 
 sales manual, 272 
 Ideas, great power of, 367 
 Illustration of exceptionally 
 
 elaborate convention, 176 
 Importance of individuality in 
 
 merchandise, 19 
 Importance of the nian in sales 
 
 success, thci 74
 
 INDEX 
 
 387 
 
 Importance of equality and 
 
 uniformity, 145 
 Importance of allegiance to 
 
 house, 191 
 Importance of food and drink 
 
 problem, 180 
 Increasing the average of sale, 
 
 301 
 Increasing the salesman's 
 
 knowledge of advertising, 
 
 283 
 Indirect developers of good- 
 will, 232 
 Indirect strategy, 208 
 Individuality, how to develop, 
 
 19 
 Individuality, points for com- 
 petitive merchandise, 19 
 Inquiries, and salesmen, 287 
 Instructions for operating 
 
 point system, 168 
 Intensified selling, 79 
 Interest, arousing in prospect, 
 
 256 
 Interesting a jobber in a new 
 
 article, 307 
 Investigation, 6, 24 
 Items for charted summary of 
 
 information, 334 
 
 Jobber price, 303 
 
 Jobbers, advantages and disad- 
 vantages of dealing with, 86 
 
 Jobber's "spread," 306 
 
 Jobbing centers and their rela- 
 tion to sales territory, 114 
 
 Jumps, salesmen's, 276 
 
 Juniors, compensation of, 140 
 
 Law of averages, 356 
 Law of diminishing returns, 
 360 
 
 Law of statistical regularity, 
 362 
 
 Laying protective lines, 367 
 
 Layout of national sales dis- 
 tricts, 117 
 
 Leading points of sales appeal, 
 259 
 
 Legal protection of good-will, 
 233 
 
 Letters as stimulators, 161 
 
 "Link up" argument, 313 
 
 Living standards of salesmen, 
 139 
 
 Local advertising at the ex- 
 pense of the manufacturer or 
 half and half, 315 
 
 Logic of carefully split terri- 
 tory, the, 111 
 
 Loyalty and "esprit de corps" 
 for both the firm and Dept., 
 43 
 
 Making an article "fool proof" 
 and convenient, 21 
 
 Making a successful program, 
 181 
 
 Making conventions profitable 
 and practical, 177 
 
 Making salesmen sell advertis- 
 ing assistance rather than 
 merchandise, 285 
 
 Maps and tacks and other 
 graphic systems, 329 
 
 Market investigations, 340 
 
 Mass movement and demand 
 creation, 95 
 
 Matters for which policies are 
 important, 66 
 
 Measurement of good-will, 234 
 
 Meeting the competitor's sell- 
 ing arguments, 106
 
 388 
 
 INDEX 
 
 Meeting the consumers' need, 
 
 22 
 Memorandum forms, 336 
 Merchandise, 19, 20 
 Merchandise as reward, 156 
 Merchandise factors measurable 
 
 by point system, 171 
 Merchandising instinct, 12 
 Methods of arousing salesman's 
 
 enthusiasm for advertising, 
 
 288 
 Methods of curriculums, 201 
 Methods used to make a "spe- 
 cial week" interesting, 320 
 Miscellaneous dealer helps, 317 
 Missionary plan of assisting 
 
 jobbers, 305 
 Mistake in setting a quota, 241 
 Multiplicity of models versus 
 
 standardization, 31 
 
 Names, trade-mark or slogan 
 that help create desire, 97 
 
 National advertising, 312 
 
 National Cash Register point 
 system plan, 170 
 
 National Cash Register school 
 system plan, 200-203 
 
 National sales districts, 117 
 
 Native qualities in salesmen, 
 129 
 
 Necessity of carefully laid job- 
 ber policy, 303 
 
 Need of synchronizing making 
 and selling, 25 
 
 Need for applying scientific 
 tests to applicants, 127 
 
 Order blanks, 276 
 Order of importance of points 
 of merit, 260 
 
 Organization, adjusting sales- 
 men to, 186 
 Organization as competitive 
 
 protection, 109 
 Organization, charting sales, 38 
 Organization manual, 40 
 Organization position of sales 
 and advertising department. 
 280 
 Outline for sales manual, 216 
 Overcoming too great obsession 
 
 by competition, 187 
 Overlapping of duties and au- 
 thority, 41 
 
 Partnership, manufacturer's, 
 with dealer, 311 
 
 Peculiar types of contests, 160 
 
 Per capita consumption statis- 
 tics, 351 
 
 Per capita measure, 121 
 
 Personal, 11 
 
 Personal qualities, 2 
 
 Perspective, 335 
 
 Physical appearance, analyzing, 
 262-263 
 
 Piece work or task and bonus 
 plan of selling, 149 
 
 Plan for automatic salary rais- 
 es, 146 
 
 Point of view, 1 
 
 Point system, 170 
 
 Policies and the human equa- 
 tion, 73 
 
 Policies and principles, 64 
 
 Policy, the twenty-j^ear point 
 of view, 71 
 
 Preference for young green 
 material, 132 
 
 Preliminary trade work, 372 
 
 Prestige, competition for, 109
 
 INDEX 
 
 389 
 
 Preventing sales scnools from 
 pauperizing salesmen, 199 
 
 Principal native qualities gen- 
 erally agreed to be essential 
 for salesmen, 129 
 
 Principle, 5 
 
 Principle and policy compared, 
 64 
 
 Pi-ineiples applied in obtaining 
 an average, 357 
 
 Principles behind successful 
 sales promotion department, 
 381 
 
 Price — 
 
 Advance geographical price 
 
 equalization, 61 
 Concessions, 106 
 Equality, 50 
 Fixing the re-sale, 52 
 Just discrimination, 51 
 Merchandising a price, 57 
 Protecting dealers and job- 
 bers against themselves in 
 price policy, 58 
 Psychology of retail price, 55 
 Quality and individuality, 
 
 47 
 Zone system for jobbing and 
 retail price, 50 
 
 Price as a competitive factor, 
 104 
 
 Production and selling, 27 
 
 Profit sharing, 162 
 
 Profit sharing for salespeople, 
 294 
 
 Profiting by competitor's weak- 
 ness of policy, 70 
 
 Profits, data on, 252 
 
 Profits, traced to individual 
 salesmen, 253 
 
 Program, sales convention, 181 
 
 Promises should be uncondi- 
 tionally made good, 223 
 
 Promptness and dispatch, 179 
 
 Prospect, 277 
 
 Prospect, adjusting appeal to, 
 260 
 
 Psychology of statistics, 358 
 
 Quota, general sales, 241 
 Quota plan, 157 
 
 Reaching the prospect's mind 
 through the five senses, 257 
 
 Ready now for the big cam- 
 paign, 375 
 
 Reasons behind intensive sales 
 training, 197 
 
 Reasons for describing an ac- 
 tual campaign and for select- 
 ing this one, 370 
 
 Reasons for increasing sales- 
 man's knowledge of adver- 
 tising, 283 
 
 Reasons for development of 
 point system, 167 
 
 Reasons why market investiga- 
 tions are essential, 340 
 
 Rebuttal talks, 266 
 
 Records of current business, 336 
 
 Records that sales office should 
 have, 336 
 
 Reduction of sales territoiy, 120 
 
 References and information file, 
 337 
 
 Relation of compensation to 
 type of man required and his 
 living standards, 139 
 
 Relation of production time to 
 sales policy, 27 
 
 Repair parts, 22 
 
 Reserve resources, 365
 
 390 
 
 INDEX 
 
 Results of contest, 373 
 Retail cost keeping, 297, 300 
 Right organization point of 
 
 view, 10 
 Route lists and maps, 333 
 
 Salary, automatic raises, 146 
 
 Salary or commission, or both, 
 141 
 
 Sales and advertising differ- 
 ences deferred, 279 
 
 Sales cost, 244 
 
 Sales cost and fixity of demand, 
 247 
 
 Sales conference methods and 
 principles, 44 
 
 Sales manual, 270 
 
 Sales organization manual, 40 
 
 Sales promotion departments, 
 381 
 
 Sales quota, 241 
 
 Sales schools, 198 
 
 Sales strategy, 205 
 
 Salesman at large, 324 
 
 Salesman's report blank, 332 
 
 Salesman's type of mind, 183 
 
 Salesmanagers and their atti- 
 tude to habits and supersti- 
 tions, 195 
 
 Salesmanship, 255 
 
 Salesmen and dealer help ad- 
 vertising, 286 
 
 Salesmen's cooperation with 
 advertising inquiries, 287 
 
 Salesmen's route list and route 
 maps, 333 
 
 Saturation point, 354 
 
 Scientific tests for applicants, 
 127 
 
 Scope of use of averages, 358 
 
 Sears-Roebuck service, 223 
 
 Seasonal variations, 29 
 
 Secret action strategy, 210 
 
 Secret price concessions, 106 
 
 Secrets of self -faith, the, 185 
 
 Selecting salesmen to fit type 
 of men they will sell to, 136 
 
 Selecting salesmen who can sell 
 policies as well as merchan- 
 dise, 134 
 
 Self faith, in salesmen, 184 
 
 Selling sales, not goods to deal- 
 ers, 291 
 
 Service as a means to help ed- 
 ucate, 100 
 
 Ser\dce as the central keynote 
 in sales building, 221 
 
 Service should be closely de- 
 fined and definitely stated, 
 228 
 
 Service should be rendered 
 spontaneously, 222 
 
 Service should be without a 
 risk or convenience to the 
 customer, 225 
 
 Ser\ice should express person- 
 al relationship, 228 
 
 Service should provide full 
 technical information and 
 ad\dce, 227 
 
 Service to be efficient should be 
 rendered entii'ely from the 
 point of view of the custom- 
 er, 226 
 
 Should functions of sales and 
 advertising manager be com- 
 bined, 278 
 
 Signed cooperation by dealers, 
 377 
 
 Sliding scales, 55 
 
 Some defects of the salary and 
 commission plan, 142
 
 INDEX 
 
 391 
 
 Some typical bonus and con- 
 test plans, 154 
 
 Sound principles for operating 
 contests, 159 
 
 Special conditions of big city 
 territory, 115 
 
 Special margin plans and slid- 
 ing scales, 55 
 
 Special methods of influencing 
 jobber salesman, 308 
 
 Special reward factors measur- 
 able by point system, 173 
 
 Special week selling plans, 320 
 
 Specialty salesmen, 152 
 
 Speech and acts, 264 
 
 Splitting territory, 112 
 
 Standard burden plan of 
 "equalizing" factory time, 
 28 
 
 Standard Oil strategy, 208 
 
 Standard Sanitary Mfg. Co., 
 strategy of, 206 
 
 Standardization through sym- 
 bols, 275 
 
 Standardized definitions, 277 
 
 Standardized order blanks for 
 use with symbols, 276 
 
 Standardized routine, 277 
 
 Standardizing house policy, 270 
 
 Standardizing salesman's equip- 
 ment, 275 
 
 Standardizing salesman's 
 "jumps," 276 
 
 Standardizing work of selling, 
 269 
 
 Staple salesmen, 152 
 
 Star salesman versus average 
 salesman, 131 
 
 State of mind, 1, 92, 93 
 
 Statistical regularity, law of, 
 362 
 
 Statistics, correct attitude to- 
 ward, 348 
 Statistics, main classes, 350 
 Statistics of distribution, 344 
 Stimulation, basic need of, 151 
 Stimulation, with national ad- 
 vertising, 312 
 Stimulations, various forms, 
 
 152 
 Strategic deductions from the 
 
 campaign, 374 
 Strategy, sales, 205 
 Studying the prospect, 261 
 Subjects for salesmanship 
 
 study, 202 
 Superstitions, salesmen's, 195 
 Surveys, general sales, 346 
 Surveys of retail possible busi- 
 ness, 292 
 Symbols, 275 
 
 Synchronizing dealer coopera- 
 tion with the appearance of 
 advertising, 314 
 Systematic educational cam- 
 paigns, 99 
 
 Table of contents for sales 
 
 manual, 271 
 Tabulating trade sentiment, 344 
 Task and bonus plan of selling, 
 
 149 
 Temperance at sales conven- 
 tions, 180 
 Territorial factors measurable 
 
 by means of point system, 
 
 170 
 Territorial readiness to meet 
 
 competition, 103 
 Territorial sales organizations, 
 
 117
 
 393 
 
 INDEX 
 
 Territory analyzed on a con- 
 sumer basis, 114 
 
 Territory as related to routes 
 of fi'eight transport, 115 
 
 Territoiy, fitting to salesmen, 
 122 
 
 The "approach" arousing in- 
 terest, 256 
 
 The basic need for stimulation, 
 151 
 
 The campaign outlined in de- 
 tail, 379 
 
 The correct attitude toward 
 statistics, 348 
 
 The feeling accompanying 
 every idea or impression, 255 
 
 The general sales quota, 241 
 
 The general situation in sales 
 cost, 244 
 
 The great power of ideas, 367 
 
 The law of averages, 356 
 
 The law of diminishing returns, 
 360 
 
 The law of statistical regular- 
 ity, 362 
 
 The manufacturer's partnership 
 with the dealer, 311 
 
 The missionary plan of assist- 
 ing jobbers, 305 
 
 The nature of good-will, 230 
 
 The piece work or task and bo- 
 nus idea in selling, 149 
 
 The preliminary plan to get 
 and popularize quickly a new 
 name, 371 
 
 The preliminary trade work, 
 372 
 
 The principles to be applied in 
 obtaining an average, 357 
 
 The psychology of statistics, 
 358 
 
 The quota plan, 157 
 
 The nght definition of sales 
 strategy, 205 
 
 The sales budget, 238 
 
 The sales department as an ad- 
 ministrative problem, 236 
 
 The sales manual, 270 
 
 The salesman type of mind and 
 its needs, 183 
 
 The saturation point, 354 
 
 The size of the jobber's 
 "spread" as an inducement, 
 306 
 
 The strategic situation before 
 the campaign started, 370 
 
 The subtle work of creating a 
 state of mind that leads to 
 demand, 93 
 
 The two main classes of sta- 
 tistics, 350 
 
 The various forms of stimula- 
 tion to choose from, 152 
 
 Time annihilation strategy, 206 
 
 Trained merchandising instinct, 
 12 
 
 Unforeseen developments, 365 
 Unit order forms, 329 
 United Drug Co., 293, 294, 295 
 Units of direct interest to sales 
 
 department, 332 
 Use of application forms, 127 
 Utilizing the game instinct, 163 
 
 Value of advertising supported 
 and unsupported, 293 
 
 Variations of the bonus plan, 
 322 
 
 Viseing of advertising copy by 
 the sales department, 281 
 
 VLsualizing the sales field, 328
 
 INDEX 
 
 393 
 
 Tital matter of general costs, 
 the, 251 
 
 Vital need of definite sales poli- 
 cies, the, 63 
 
 Vital things to know about sales 
 organizations and field prob- 
 lems, 335 
 
 Volume in relation to sales 
 cost, 250 
 
 Warehouses, branch, 87 
 Watching buyers' facial expres- 
 sions, 256 
 Watching formative ideas, 366 
 Wedge action strategy, 212 
 What is salesmanship ? 255 
 What properly is sales cost? 
 
 245 
 "Why" investigations should 
 
 be made by outsiders, 343 
 
 Why more sales schools have 
 
 not been established, 108 
 
 Why retail merchandising in- 
 sight is essential in salesman- 
 agement, 290 
 
 Why salesmen are diflSeult to 
 select, 124 
 
 Why selling requires standard- 
 izing, 269 
 
 Why some firms prefer to sell 
 direct to retailers, 85 
 
 Willful, reckless price competi- 
 tion, 105 
 
 Winchester Kep^ssting Arms 
 Co. engineering formula, 
 338 
 
 Window display plans and 
 service, 320 
 
 Working toward a ''close," 266 
 
 Wrong traditions and supersti- 
 tions among salesmen, 191 
 
 Y. M. C. A. sales schools, 199 
 
 (11)
 
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