elieve that we can supply you with anything you will need.

In inviting you to give us part of your trade, we give you
this assurance: If any article you buy from us is not entirely
right, we will return your money.

We hope to see you soon.

Yours very truly,
Memphis Auto Supply Co.

_Changing from a credit to a cash plan (Should be in the nature of a
personal letter)_

PELLETIER & CO.
142 CASCO STREET
PORTLAND, ME.

February 1, 1922.

Mrs. John Troy,
14 Ocean Ave.,
Portland, Me.

Dear Madam:

When this store was opened ten years ago, we believed that our
service would be the most effective if we operated on a credit
basis. Therefore we solicited charge accounts, of course
taking extreme care that only people of known integrity and
substance should be on our books. We have had the privilege of
serving you through such an account.

There are two fundamental methods of conducting a retail
business. The one is on the cash and the other is on the
credit plan. In the cash plan all goods are either paid for at
the time of purchase or at the time of delivery. In the credit
plan, those who have not credit or do not care to use credit
pay cash; those who have credit rating charge their purchases
and bills are rendered monthly. Credit was not extended by the
store as a favor; it formed part of a way of doing business.
The favor is on the part of the customer. The charge system
has many advantages, principally in the way of permitting the
store to know its customers better than it could otherwise.
The disadvantage of the credit basis is the expense of
bookkeeping which, of course, has to be added into the price
of the goods sold. Our losses through unpaid bills have been
negligible. Our customers are honest. But it has seemed unfair
that the customer who pays cash should have to bear the cost
of the credit accounts.

As our business has worked out more than fifty per cent. of
our whole trade is on the cash basis. After careful
consideration we have finally decided to go entirely upon a
cash footing in order that we may further reduce our costs of
doing business and h