Imagine that you are manager of a wholesale dry goods house. You have received an order from P. H. Powley, 23 Water street, Franklin, Mich. As you do not know Mr. Powley, write him, stating in as courteous a way as possible that, since this is his first order, he must either furnish references or send a remittance. Make your letter direct and personal. Include some good selling talk.
The exercise above illustrates the method that might be adopted in case of a small order. If Mr. Powley had sent a large order, the wholesale house would no doubt consult a financial agency to discover his financial condition; his rating, it is called. If his name were not found in the book of the agency, the wholesale house would require Mr. Powley to send a correct account of his financial standing; that is, a list of his assets and liabilities. If he refused, they would not do business with him. Why? The principal financial agencies are Bradstreet and Dun. Besides these, there are many mercantile agencies. They give any information that is required concerning a business man. All such information is confidential.
In connection with this exercise study the letters that follow:
Request to Open an Account
Madison, Wis., Sept. 16, 1915.
Until recently I was in the employ of Samuel Stratton & Co. of Milwaukee, but I have now started a business of my own, for which I should like to open an account with your house. As to my business ability and financial standing, I refer you to my late employers, Samuel Stratton & Co. of Milwaukee, and to the Madison State Bank of this city.
If on investigation you decide to accept me as a customer, will you please send the goods on the enclosed order, deducting your usual discount for cash? Upon receipt of the goods and of the invoice, I shall at once forward a sight draft on the Broadway National Bank of your city.
Respectfully yours,
George R. Scott
Reply No. 1
Dear Sir: