When it is ascertained what the sum of all the foregoing items
amounts to, prove it by the books, which will give the total
expense for the year; divide this figure by the total of sales, and
it will show the percent which it has cost to do business.

13. Take this percent and deduct it from the price of any article
sold, then subtract from the remainder what it cost (invoice price
and freight), and the result will show the net profit or loss on
the article.

14. Go over the selling prices of the various articles and see what
are profits; then get busy in putting your selling figures on a
profitable basis and talk it over with your competitor as well.

_A Credit Policy for Retailers_

While the minor factors governing a credit policy for retailers vary
with local conditions, the fundamental principles are alike everywhere,
and should have the thoughtful consideration of all retail distributers
of coffee. After a retail grocery store experience of twenty-five years,
a past president of the National Association of Retail Grocers of the
United States[344] found that a grocer should insist upon references and
a thorough investigation of every new applicant for credit, refusing the
privilege when the prospective customer hesitates to give the needed
information; that he should arrange a date for periodical payments,
explaining that this is necessary so that the storekeeper can arrange to
meet his own bills, which will enable him to discount his invoices and
to sell his goods cheaper; that statements of accounts should be sent
out promptly and never a few days late; that he should insist on payment
in full when due, requesting the customer to call if an extension of
time is asked; that he should not let the customers decide when they
will pay bills, bearing in mind that the possible loss of a few
customers who do not pay promptly is offset by the advantages of cash
when promised; that he should never abandon the hope of collecting an
old account, but should try the method of sending statements only to the
surest customers, sending a clerk for the collection of all other
accounts; that he should personally examine all uncollected accounts
every month, insisting on a reason for failure to pay; that he should
study his customers and not trust those who give a bad impression; that
he should have the courage to say "No" when necessary; not to be
satisfied with merely a financ