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my opinion, the only possible way out of the difficulty,

10th November 1931
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Page 1, 10th November 1931 — my opinion, the only possible way out of the difficulty,
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Which of the following most accurately describes the problem?

and, whilst everyone who reads this article will say that is obvious, it is surprising that it seems the last factor most haulage contractors consider. They do not try to create a demand—they endeavour to buy their work by offering to do it for less money.

They do not realize the priceless value of goodwill, or, if they do, they do not stop to consider that there is no goodwill about cheap businest because it goes always at the lowest price ; and so they go on cheapening their rates and cheapening the quality of their service, until it is often worth no more than the price they receive. Creating the demand seems to me to be the most essential part of any business, and naturally, the most difficult. Whilst most businesses can have specialists to do this, we in the haulage trade have to be buyer, manufacturer, costing department and sales manager combined, and I think that is to a great extent the explanation of many of the failures that cccur and is another cause of rate-cutting, It appears probable that, whilst a man might be an expert in the management and maintenance of motors, he would entirely fail to sell his service. How, therefore, can profitable demand be created? There is a saying that if a man can preach a better sermon or make a better mouse-trap he will have a beaten track to his door, even though he hide himself in a forest. There is a lot in it, even for us.

The haulage contractor who refuses to work for less than fair rates, gives value in reliability and service, and who knows his business sufficiently to minimize costs, will retain his fair share of trade, and, in normal times, will prosper, because the goodwill he is making will create the demand for his services despite the never-ending recruits to the army of rate-cutters.

I hope to continue this article in a later issue by giving my further opinions on how to make hauliers' service create the goodwill which is the only weapon with which we can fight low rates.

(To be continued.)

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