Method of direct appeal; buyer must be shown, not forced. - The Institute has received many letters from firms engaged in nearly all lines of business, manufacturing, wholesaling and retailing, outlining the methods adopted by them for the purpose of introducing the trade acceptance in their business. One firm which has resorted very largely to the trade acceptance method of financing its business, writes:

"The most successful way we have found of introducing the acceptance method among our customers was for us to make a direct appeal at the necessary time to them, as for instance, upon the sending of an invoice for goods sold, and, at that time drawing a distinction between the open account method and the acceptance, and outlining the advantages of the latter to them."

The following letters and explanatory matter are used by a number of large houses which have successfully introduced the acceptance method.

Extending The Use Of Acceptances Through Salesmen

The principles of the acceptance and its general adaptability to any business requiring credit extension have been extended by a number of firms through salesmen travelling for them. Salesmen are generally instructed as to the necessary procedure and are given full advice as to the advantages of the acceptance method in comparison with the open account.

Undoubtedly, personal contact with the customer could be made a most desirable form of introducing the acceptance. The salesman, in negotiating with the buyer, first posts out the advantages of the acceptance to the latter, and then ma make the sale and granting of credit conditional upon the buyer giving his written acknowledgment of his indebtedness in the form of a trade acceptance. If the buyer, for some reason or other, should decline to give his acceptance, it is unwise that he be in any way forced, a: experience has shown that time and a more carefully prepared program of publicity will eventually make him see the merits of the plan.

Other methods used by some commercial firms have been in the form of publicity through house organs and so-called trade and merchandise circulars. Therein are outlined the various ways of settling for merchandise, and the general utility of the acceptance. Explanatory letters and notes attached to bills and statements at the time they are sent to customers have also been productive of good results. One house uses the plan of showing the saving to the buyer by giving his acceptance. (See Forms Part IV.) It is assumed naturally that preferences are extended to those buyers consenting to give their acceptance.

Still another way in which some houses have succeeded in introducing the acceptance has been to bring home to the buyer the advantages of the method to him through plain facts and figures attractively stated. The one contained in this chapter "Fair Play in Business" and similar ones, with the same purpose in view, are also used by a number of concerns with success.

It would be well for those desiring to use the acceptance method with greater success to consider the buyer on open account and on the acceptance method. Those houses which have adopted the plan of financing their business through the use of the trade acceptance have generally had to extend some consideration to the buyer willing to give his acceptance in preference to the one desiring the open account. As the seller of merchandise is benefited greatly in using the acceptance method through having his accounts in liquid form, he could very well afford to give a better consideration to his buyer. This consideration may be in the form of a larger discount than allowed buyers on open account. Some houses prefer to give more consideration to the buyer by means of granting him a longer term of credit, that is, a longer time within which to meet the acceptance. Other houses give a credit larger in amount than the buyer on open account is allowed, mainly for the reason that accounts are thereby kept in liquid shape and may be realized upon with comparative ease. As to whether the buyer giving acceptances should receive merchandise at a lower figure than those purchasing on open account is a question to be decided by the firm from the nature of its business and the circumstances which are involved in their sale.

But to all of the above, it might be said that the giving of any consideration, however small, is still unnecessary on the part of the seller. The buyer benefits as well as the seller and it is to the advantage of both to favor and extend the plan.

Publicity Methods in the Use of Acceptances Form of Slip Attached to Trade Acceptance Forwarded to Buyer This plan of attaching an explanatory slip to the acceptance at the time it is sent to the customer has proved to be productive of good results.