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On the receipt of such a request, the quotation clerk consults the necessary tariffs applying on the shipment, and quite often a half dozen or more schedules may be involved in figuring the charge between various points in this country. On a movement from Chicago to Texas, for example, it is necessary to consult four publications: (1) a territorial directory, to develop the group location of the point of origin or the destination; (2) the classification, to determine the classification rating; (3) the exceptions to the classification published by the southwestern lines, to ascertain whether an exception has been established removing the application of the item from the classification; and (4) the tariff containing the rate, which must also be analyzed for exceptions, commodity rates, or other information of a similar import which might set aside, in some degree, the application of the issues previously mentioned.
Forms for Quoting Rate After determining the rates of freight applicable, the sales representative or prospective customer is then informed of the figure.
For this purpose, a form similar to that appearing in Fig. 18 is recommended.
This form could be prepared in duplicate by the quotation clerk. The original is, of course, sent to the person making the request. The duplicate should be affixed to the request, and filed with the traffic department records. In the event of question, this affords a check on how the quotation was made, and definitely fixes the responsibility.
The form also indicates to the sales department any oontemplated advance in rates. This is a happy thought,
Your request of.
Tarriff I. C. C. supplements on file indicate that this rate will be advanced
because the sales representative can then inform the prospective customer of the probability of the increase, and this is an added incentive for an early purchase.
Where the order is not secured, it should be followed up with the sales department to determine whether the rate of freight was too high, and if the material was purchased in some other primary market. If so, the rates from the primary markets involved should be compared to ascertain their relative adjustments, and if they are reasonable, a readjustment in selling prices will be necessary to secure a share of the business in that portion of the country.
If, however, there should be some inconsistency in the rates, steps should be taken to secure a readjustment. The industry should not continue to lose sales thru the maintenance of higher rates from their shipping stations than are warranted.
CARLOAD VERSUS LESS-THAN-CARLOAD FIGURES
It sometimes happens that the less-than-carload rate is so much higher than the carload rate that a purchaser profits by ordering a full carload.
If the respective carload and less-than-carload rates were ten and twenty cents per 100 pounds, the carload rate carrying a minimum weight provision of 30,000 pounds, the rate of freight on 15,000 pounds of a commodity would be $30 at the less-than-carload figure, while 30,000 pounds of the same commodity at the carload rate of ten cents would be the same amount.
These instances should be brought to the attention of the purchaser. The continued practice of this policy is reflected in many cases in the increased volume of sales.
It is the practice of some of the leading concerns of the country to incorporate in the catalogs or price lists which are distributed to their prospective purchasers, tabulations giving a somewhat elementary classification of their offerings, and corresponding rates of freight attaching to those classes from shipping point to selected destination thruout the country. Such a tabulation appears in Fig. 19.
The preparation of this transportation price list is not unduly expensive or burdensome to the department, and the increased business and favor that it would find in the firm's patronage definitely warrants its adoption. It enables buyers to figure at least an approximate charge on goods purchased from this house and laid down in their vicinity.
The advantage of this is perhaps more fully emphasized by the remarks of Consul M. S. Myers, Swatow, China, in an article appearing some time ago in The Daily Commerce Report in which he has this to say concerning the efforts of American manufaoturers to develop foreign trade in China:
Another practice concerning which I have also heard complaint should be mentioned: the sending of all manner of descriptive literature without any reference to price. Whether or not this method of seeking business is suitable for domestic trade, American manufacturers must know that it is certainly not practicable for trade with China. If the product is used in China, the all-important factor is how much it will cost the local importer, and if the manufacturer's letter gives that
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FIG. 19.-A Rate Tabulation