I recently had the pleasure of
being asked to speak before my fellow members of NACM Texas in San
Antonio at our annual membership meeting. The topic of my speech was
loosely titled “the role of the credit manager and their impact on
the organization in the future”.
the meeting one of the members showed me an article I would like to
are being constantly received from manufacturers, wholesalers and
factory reps as to the future of cash discounts. Many who have
heretofore given cash discounts contend that with the existing low
interest rates, discounts are no longer justifiable. Discounts of this
character, however, were never wholly controlled by interest rates.
Their original purpose was to increase the turnover of merchandise and
money. In some instances they also were employed as a competitive
industry can, as such, take concerted action with respect to the
establishment of a uniform cash discount rate or adopt a policy of its
abandonment. To act unitedly in either direction would be a violation
of law. Individually any company can adopt any policy it deserves
within the law. The common pattern on discounts has resulted from a
practice adopted to meet competition. Undoubtedly in the years ahead
the same forces will determine discount policies. It is also
reasonable to assume that cash discount in the future may be less
attractive though they will remain substantially higher than any
ahead in business, and the readjustments that must be made, indicates
some reduction in the high-rate of business activity. It is not likely
that this will be for a prolonged period of time; the demand for goods
is too extensive and worldwide in character. Customers will check
their buying when the quality, style or price of the products they
need is, in their opinion, unattractive. Such sporadic buying will
not, however, satisfy their continuing needs. Until these needs are
supplied, the business atmosphere should remain healthy.”
this sound vaguely familiar? If so, who is the author? Alan Greenspan,
Henry Heimann, Paul Simon?
you guessed Henry Heimann, and for the majority of us it would have
been a guess, then you are correct. And just who is Henry Heimann?
Henry was the executive manager of the National Association of Credit
Men and this excerpt appeared in the February issue of Monthly
Business Review in 1947, over 53 years ago.
wish you well.