The experience of a commission house is an asset, which saves many mistakes. Their experts have a wide range of information covering American and European competition, and details such as suitable patterns, correct packing, etc. The commission house may have its capital tied up for six months in transactions, or did prior to the more general use of the trade acceptance, while the manufacturer might receive cash for his goods. For small people this method of sales has many advantages, especially when first launching into export trade. Conference and honorable coöperation are necessary and the protection of the commission house from direct under-selling or from other unfair dealings. The service of export agents is preferred by some, these acting as salesmen, forwarders, or shippers, either for one or more concerns, perhaps on salary and commission, or as independent agents.
After securing orders, by whatever means employed, the responsibilities of the shipping department begin. The principles governing the execution of orders would seem to be rudimentary. One wonders how a business in this country could achieve even a small measure of success when violating the most elementary rules of conduct. Yet this has been and still is done in South American trade as recent information from various sources shows, despite the fact that these things should go without saying, and furthermore that they have been iterated and reiterated for years.
First, the goods to fill an order should be precisely like the sample, if there was one, not something inferior, as has often happened, nor something just as good, or even better. If ordered without a sample strictest attention should be paid to prescribed details. If it is specified that cloth be 28¹⁄₂ inches wide or 25 centimetres, that is what is wanted. If two-wheeled vehicles are ordered, what sort of business is it that permits of sending, by mistake, four-wheeled vehicles a distance of 5000 miles, even though the bill was made the same and the goods were more expensive? as was done by a well known manufacturer to his loss. The loss to the purchaser was greater, for the vehicles sent could not be used at all in that country.
The assumption that the seller knows better than the buyer what the latter wants is offensive if true. Generally it is not true. Mistakes are unpardonable. Requests for particular colors, patterns, size of bolt, and character of weave must be complied with if trade is wanted. The willingness of the Germans to oblige in such matters largely accounted for the rapid growth of their South American trade. The Latin American business men are as acute and intelligent as any. They know what they want and are discriminating buyers as to quality and price.
Criticism of the shortcomings of the home office is the second of the two forms previously referred to. Lack of accuracy and of attention to details is a grievous fault, apparently arising from want of discipline and thoroughness in our homes and schools, a fault recognized by many heads of offices here. The dishonesty of sending goods inferior to sample or order, a practice injurious to the entire national trade as well as to the guilty individual, shows an utter lack of patriotism, as well as folly if permanent trade is desired.
Another elementary matter is that of packing. Woful tales of breakage and loss from bad packing have been rife for years, and volumes have been written and spoken concerning it. In 1916 an experienced traveling man told me that before his last trip, in view of war conditions, he had taken on the agency of some new people and received many orders for them. He had sent explicit instructions as to packing and other export details. But now he found his new customers swearing mad and was booking no more orders for his new patrons: for they had paid not the slightest heed to his directions either as to packing or forwarding, with disastrous results. In February, 1919, a letter from Brazil said: “We cannot imagine why your shippers ever accepted the travesty of an export bale dumped on you by the spinners, and we must clearly state that our factory will not accept any yarns which arrive in bad condition due to bad packing.”
Unwillingness to profit by the knowledge and experience of others, the belief that one knows everything without learning anything, is called a peculiarly American trait, though happily it is not universal. The British not only pack and handle goods in the best manner, but they are careful to send and land them in all parts of the world by the best route and with the least expense to the receiver, as the world knows. Of course we can do the same if we take the trouble. The packing department for the soldiers overseas showed the highest excellence. The baling of clothes instead of boxing saved labor, box material, and two thirds of the space, and goods arrived in better condition. Fifty-five million dollars were saved at one plant in a year. Forty-nine million dollars of this was cargo space, other things were rent, freight, etc. Fifty-eight million feet of lumber of 30 years growth were spared. The burlap required would be useful in South America. Square packages instead of round are advantageous. Those who wish a share in foreign trade must take the pains to do everything right. The most careful man, familiar with the metric system, should be in charge. The scales should show pounds and kilograms, and figures be given for net weight, container, etc. Aside from careful packing to avoid breakage or other injury as from water, dampness, or pilfering, instructions are often given as to size and weight of package. Mules, donkeys, and llamas usually carry two packages, one on each side; the ordinary load of each is 200, 150, and 100 lbs. respectively, though some mules will take 300 lbs. for a moderate distance. For the interior, especially on the North and West Coasts and in some sections on the East, these animals are the only means of transport, and goods must be packed accordingly; machinery in sections, etc. Many boxes of 1000 pounds weight have been left on the dock or at a railway station, the goods a total loss.
To arrange the packing with an eye to the custom house is important, both in order that the contents may be easily examined, and so that fines or exorbitant imposts may be avoided. Directions and governmental regulations as to giving separate weight of container and goods, and the separation of different classes of the latter must be scrupulously followed. Heavy fines are often imposed for trivial errors in packing or invoice, and corrections of any mistakes by cable are expensive if frequent.
Obligations of every kind should be fulfilled with fidelity though a bad bargain has been made resulting in financial loss. On the other hand consideration for the embarrassments of the buyer should be shown, whether these are purely personal or the result of national conditions such as followed the outbreak of the War or the conclusion of the Armistice. After the unexpected cessation of War many orders which had been placed here were suddenly cancelled under the supposition that coöperation such as had always been extended by European merchants would not be refused here. British representatives promptly offered to cancel orders for goods that the buyers might not care to receive under the changed circumstances, while the majority of Americans made many difficulties: a contrast in conduct liable to influence unfavorably future trade, especially when added to the fact that vast numbers here cancelled orders and that the average American manufacturer had taken advantage of the situation created by the War to charge exorbitant prices in excess of those applying to domestic trade. Thus some manufacturers who have cried out about the bad faith of the South Americans, with no consideration for their difficulties, have forfeited their confidence and friendship, with a probable loss of future trade unless able to offer remarkably attractive bargains.
The utmost care should be taken in the shipping of goods as well as in the packing. Promptness is an important feature. Where regular sailings occur space should be engaged in advance, and the necessary papers accurately made out in good season, in view of the many copies of the consular invoices, the bills of lading, the clearance papers, and the short hours of some of the consulates. To avoid the trouble of attending to these and other elaborate details, many manufacturers find it convenient to employ a Freight Forwarder who looks after such matters including insurance of various kinds covering theft, damage, and total loss. He will know the most favorable trade routes, look after transfer and storage, and fill all requirements, if qualified for his job.