a. Dirty commutator.b. Dirty brush contact surface.c. Loose brushes.d. Brushes bearing on wrong point of commutator (to set brushes properly, remove all outside connections from generator, open the shunt field circuit, and apply a battery across the main brushes. Shift the brushes until the armature does not tend to rotate in either direction. This is, of course, a test which must be made with the generator on the test bench).e. Loose connections in the shunt field circuit.The foregoing conditions are the ones which will generally be found. More serious troubles will generally prevent the generator from building up at all.2. Cutout does hot open when engine stops.This condition is shown by a discharge current of about 5 amperes when the engine has stopped. (In Delco systems which have no cutout, an even greater discharge will be noted as long as the ignition switch remains closed.) This trouble is generally due to cutout points stuck together, a broken cutout spring, or a bent or binding cutout armature.3. Cutout does not open until ammeter indicates a discharge of three or more amperes(in addition to the ignition discharge). This may be remedied by increasing the spring tension of the cutout, or removing any trouble which causes the cutout armature to bind. On many cutouts the armature does not actually touch the core of the cutout winding when the points are closed, there being a small piece of copper or other non-magnetic metal on the armature which touches the end of the cutout and maintains a small air gap between the core and armature, even when the points are closed. The opening action of the cutout may be changed by filing this piece of non-magnetic material so as to decrease the air gap, or pinching it with heavy pliers so as to make it stand farther out from the cutout armature and thus increase the air gap between the armature and core when the points are closed.Decreasing this air gap will cause the cutout to open late, and increasing it will cause the cutout to open early.4. Cutout will not close at any engine speed.If cutout does not close the first time the engine speed is increased, stop the engine. This condition may be due to a defective cutout, an open-circuit in the charging line, a ground or short-circuit between the cutout and the generator, or a defective generator. To determine whether the cutout is defective, remove the wires from it and hold together the ends of the wires coming from the generator, and the one going to the ammeter. Start the engine. If no other trouble exists, the ammeter will indicate a charging current at speeds above 8-10 miles per hour. If no current is obtained, stop the engine. If the cutout trouble consisted of an open circuit in one of its windings, or in the points not closing, due to dirt or a binding armature, or if there is an open-circuit in the charging line, the generator will, of course, have been running on open-circuit. This will cause the fuse in the shunt field circuit to blow if there is such a fuse, and if there is no such fuse, the shunt field coils may be burned open, or the insulation on the field coil wires may have become overheated to a point at which it burns and carbonizes, and causes a short-circuit between wires. Such troubles will, of course, prevent a generator from building up when the cutout wires are disconnected and their ends held together.If there is a ground in the cutout, or between the cutout and the generator, the generator will very likely be unable to generate (if a "one-wire" system is used on the car). If there is some defect in the generator-such as dirty commutator, high mica, brushes not touching, commutator dirty, or loose brushes, brushes too far from neutral, grounded brushes, brushes not well ground in, wrong type of brushes, grounded commutator or armature windings, short-circuited commutator or armature windings, open-circuited armature windings, grounded field windings, short-circuited field windings, open-circuit or poor connections in field circuit, one or more field coil connections reversed, wrong type of armature or field coils used in repairing generator, generator drive mechanism broken-then the generator will not build up.If no charging current is, therefore, obtained when the generator and ammeter wires are disconnected from the cutout and their ends held together, there may be a ground or short-circuit in the cutout windings or in the circuit between the generator and the cutout, or the generator may be defective, due to having been operated on open-circuit, or due to troubles as described in the foregoing paragraph. The presence of a ground or short in the circuit between the generator and cutout or in the cutout may be determined by disconnected the wire from the generator, disconnecting the battery (or ammeter) wire from the cutout, and running a separate extra wire from the generator to the wire removed from the cutout. Then start the engine again. If a charging current is obtained, there is a ground or short either in the cutout or in the circuit between the cutout and the generator. (It is also possible that the failure of the generator to build up was due to poor brush contact in the generator. The use of the extra wire connected the generator directly to the battery, thus magnetizing the generator fields and causing generator to build up. If poor brush contact prevented the generator from building up, closing the cutout by hand will often cause the generator to start charging. If you can therefore cause the generator to build up by holding the cutout points closed by hand, or by shorting across from the generator terminal to the battery terminal of the cutout, it is probable that the generator brushes are not making good contact). The cutout may be tested by stopping the engine, replacing the battery (or ammeter) wire on the cutout, and holding the end of the extra wire on the generator terminal of the cutout. If a charging current is then obtained, the cutout is 0. K. and the trouble is between the cutout and the generator.5. An excessive current is obtained.If a third brush generator is used, look for loose or dirty connections in the charging line, dirty cutout points, dirty commutator, dirty brushes (especially the brush, or brushes, which is Dot connected to one end of the field winding), brushes loose, brushes not well ground in, and any other conditions which will cause a high resistance in the charging line. It is characteristic of third brush generators that their current output increases if there is an increase in resistance in the charging circuit. If no troubles such as those enumerated above are found, the third brush may need adjusting.Generators using vibrating current or voltage regulators will give an excessive output if the points need adjusting or if the regulating resistance is short-circuited.Generators using reversed series regulation will give an excessive output if there is a short-circuit in the series field coils.6. Low charging current is obtained.This may be due to adjustment of the regulating device, to high resistance in the shunt field circuit in case of a third brush generator. In case of generators using other kinds of regulation, loose connections, dirty commutator and brushes, etc., will cause low charging current.7. Generator charges up to a certain speed and then stops charging.The trouble is caused by some condition which causes the brushes to break contact with the commutator, especially in the case of a "third" brush. High mica, loose brush spring, or a commutator which has been turned down off-center may cause the trouble. This trouble most frequently occurs on cars using third brush motor-generators having a 3 to 1 or more speed ratio between them and the engine. These motor-generators operate at such high speeds that high mica and a commutator which is even slightly off center have a much greater effect than the same conditions would cause in separate generators which operate at much lower speeds. The remedy for this trouble is to keep the mica under-cut, and to be very careful to center the armature in the lathe when taking a cut from the armature. In turning down the commutators of high speed motor-generators, special fittings should be made by means of which the armature may be mounted in its own ball-bearings while the commutator is turned down.ADJUSTING GENERATOR OUTPUTSThe repairman should be very slow in adjusting generator outputs. Most cases of insufficient or excessive charging current are due to the troubles enumerated in the foregoing paragraphs, and not due to incorrect adjustment of the regulating device. Before changing the adjustment of any generator, therefore, be sure that everything is in good condition. The third brush generator, for instance, will have an excessive output if the brushes are dirty, loose, or not well seated on the commutator. The use of a third brush which is too wide, for instance, will change the output considerably. A high resistance third brush will decrease the output, while a low resistance brush will increase the output. On the other hand, an increase in the resistance of the charging circuit will cause an increase in the output of a third brush generator, which is just the opposite to what is ordinarily expected. Such an increase in resistance may be due to loose or dirty connections, dirty cutout contact points, corroded battery terminals and so on. Remember also that the third brush generator sends a higher current into a fully charged battery than it sends into a discharged battery. It is, therefore, essential that a fully charged battery be on the car when the output of a third brush generator is adjusted.There are two things which determine whether any change should be made in the charging rate on the car, viz: Driving, Conditions and the Season of the Year.Driving Conditions. A car which makes short runs,with numerous stops, requires that the starting motor be used frequently. This tends to run the battery down very quickly. Moreover, such a car usually does not have its engine running long enough to give the generator an opportunity to keep the battery charged, and to accomplish this, the charging rate should be increased.A car which is used mostly at nightmay need a higher charging rate, especially if short runs are made, and if the car stands at the curb with its lights burning. Long night runs will generally call for only a normal charging rate, since the long charging periods are offset by the continuous use of the lamps.A car used on long daylight runsshould generally have the charging rate reduced, because the battery is charged throughout such runs with no discharge into lamps or starting of motor to offset the continued charge. If the lamps are kept lighted during such runs, the normal charge rate will be satisfactory, because the lamp current will automatically reduce the current sent into the battery.In the winter time,engines must be cranked for a longer time before they will start, the battery is less efficient than in warm weather, and lights are burning for a greater length of time than in summer. Such conditions require an increase in the charging rate, especially if the car is used on short runs. Oil long runs in the winter time, the normal charging rate will generally be satisfactory because the long charging period will offset the longer cranking period.In the summer time,engines start more easily than in winter, and hence require less cranking. The lamps are used for only short periods and the battery is more efficient than in winter. A lower charging rate will, therefore, keep the battery charged. Long tours in the summer time are especially likely to result in overcharged, overheated batteries, and a reduced charging rate is called for.How and When to Adjust Charging RatesA correct charging rate is one which keeps a battery fully charged, but does not overcharge it, and which does not cause either the generator or the battery to become overheated. The only way to determine whether a certain charging rate is correct on any particular car is to make an arrangement with the car owner to bring in his car every two weeks. On such occasions hydrometer readings should be taken and water added, if necessary, to bring the surface of the electrolyte up to the proper level. The hydrometer readings will show whether the generator is keeping the battery charged, and if a change in the charging rate is necessary, the necessary adjustments may be made. If a customer does not bring in his car every two weeks, call him up on the phone or write to him. The interest which you show in his battery by doing this will generally result in the customer giving you all his repair business, and he will also tell his acquaintances about your good service. This will give you considerable "word of mouth" advertising, which is by far the best form of advertising and which cannot be bought. It must be earned by good battery service.Adjusting a third brush generator.The best rule to remember for changing the output of a third brush machine is that to increase the output, move the third brush in the direction in which the commutator rotates, and to decrease the output, move the third brush in the opposite direction. Move the third brush only 1/16 inch and then sandpaper the brush seat with 00 sandpaper. Allow the generator to run for about twenty minutes to "run-in" the brush. Then vary the speed to see what the maximum charging rate is. If the change in the charging rate is not sufficient, move the third brush another 1/16 inch and proceed as before until the desired charging rate is obtained.Adjusting Vibrating Regulators. The output of generators which use a vibrating regulator is adjusted by changing the tension of the spring fastened to the regulator arm. In many cases this adjustment is made by means of a screw which is turned up or down to change the spring tension. In other cases a hook or prong is bent to change the spring tension. Where a coil spring is used, lengthening the spring will decrease the tension and lower the output, while shortening the spring will increase the tension and raise the output.Vibrating regulators are of the "constant" current or the "constant-voltage" types. The constant current regulator has a winding of heavy wire which carries the charging current. When the charging current reaches the value for which the regulator is set, the electromagnet formed by the coil and the core on which it is wound draws the regulator armature toward it and thereby separates the regulator points, which are in series with the shunt field. A resistance coil, which is connected across the regulator points and which is short-circuited when the points are closed, is put in series with the shunt field when the points separate. This reduces the shunt field current, causing a decrease in generator voltage and hence current output. As the current decreases, the pull of the electromagnet on the regulator armature weakens and the spring overcomes the pull of the electromagnet and closes the regulator points. This short-circuits the resistance coil connected across the regulator points and allows the shunt field current to increase again, thereby increasing the generator output. This cycle is repeated at a high rate of speed, causing the regulator points to vibrate rapidly.The action of a vibrating "constant-voltage" regulator is exactly the same as that of the "constant current" regulator, except that the coil is connected across the generator brushes. The action of this coil therefore depends on the generator voltage, the regulator points vibrating when the generator voltage rises to the value for which the regulator is set.Adjusting Reverse-Series Generators.The regulation of the output of this type of generator is accomplished by means of a field winding which is in series with the armature, and which therefore carries the charging current. These series field coils are magnetically opposed to the shunt field coils, and an increase in charging current results in a weakening of the field flux. A balanced condition is reached at which no increase of flux takes place as the generator speed increases, the tendency of the increased shunt field current to increase the total flux being counterbalanced by the weakening action of the flux produced by the series field current.To increase the output of a reverse series generator, it is necessary to weaken the opposing series field flux. The only way of doing this is to short-circuit the series field coils, or connect a resistance across them. To decrease the output of a reverse series generator, a resistance coil may be connected in series with the shunt field winding. Neither of these schemes is practicable, and hence the reverse series generator may be considered as a "non-adjustable" machine. Under-charging may be prevented by using the starting motor and lights as little as possible, or by giving the battery a bench charge occasionally. Over-charging may be prevented by burning the lights whenever the engine is running, or leaving the lights turned on over night.Other forms of regulation have been used on the older cars, but the majority of the cars now in use use one of the four forms of regulation described in the foregoing paragraphs. If adjustments need to be made on some car having a system of-regulation with which the battery man is not familiar, the work should be done in a service station doing generator work.If generator outputs are changed because of some special operating condition, such as summer tours, the rate should be changed to normal as soon as the usual driving conditions are resumed.TESTING AND FILLING SERVICEEvery man expects to be paid for his work, since his purpose in working is to get money. Yet there are numerous instances in every line of work requiring work to be done for which no money is received. The term "Free Service" is familiar to every repairman, and it has been the cause of considerable discussion and dispute, since it is often very difficult to know where to draw the Tine between Free Service and Paid Service.The term "Free Service" might be abolished with benefit to all concerned. In the battery business "Free Inspection" service is a familiar term. It is intended to apply to the regular addition of distilled water by the repairman and to tests made at the time the water is added. Since the term "Inspection" might be Misinterpreted and taken to apply to the opening of batteries for examination, the term "Testing and Filling Service" should be used instead of "Free Inspection Service."Battery makers furnish cards for distribution to car owners. These cards entitle the holder to bring in his battery every two weeks to have distilled water added if necessary, and to have his battery tested without paying for it. This service requires very little time, and should be given cheerfully by every service man."Testing and Filling Service" is an excellent means of becoming acquainted with car owners. Be as pleasant and courteous to the "Testing and Filling" customer as you are to the man who brings in a battery that needs repairs. For this customer will certainly give you his repair business if you have been pleasant in giving the Testing and Filling Service.A thoroughly competent battery man should be put in charge of the Testing and Filling Service, since this man must meet the car owners, upon whom the service station depends for its income. Customers are impressed, not by an imposing array of repair shop equipment, but by the manner of the men who meet them. These men will increase the number of your customers, or will drive trade to competitors, depending on the impression they leave in the minds of the car owners.Every service station owner should persuade all the car owners in the vicinity of the station to come in regularly for the free testing and filling service, and when they do come in they should be given cheerful, courteous service. Each "testing" and "filling" customer is a prospective paying customer, for it is entirely natural that a car owner will give his repair work to the battery man who has been taking care of the testing and filling work Oil his battery. When a new battery is needed, the "testing" and "filling" customer will certainly buy it from the man who has been relieving him of the work of keeping his batteries in good shape.Car owners who depend on your competitor for their "testing and filling" service will not come to you when their battery needs repairing, or when they need a new battery. You may be convinced that you handle a better make of battery than your competitor does, but your competitor's word will carry far more weight than yours with the man who has been coming to him for testing and filling. Good testing and filling service is, therefore, the best method of advertising and building up your business. The cost of this service to you is more than offset by the paying business it certainly brings, and by the saving in money spent for advertising. Remember that a boost by a satisfied customer is of considerably greater value to your business than newspaper advertising.A careful record should be kept of every battery which is brought in regularly for testing and filling service. If a test shows that one or more cells are low in gravity, say about 1.220, this fact should be recorded. If the gravity is still low when the battery comes in again for test, remove the battery and give it a bench charge. The customer should, of course, pay for the bench charge and for the rental battery which is put on the car in the meantime.Battery manufacturers generally furnish cards to be used in connection with the testing and filling service, such cards being issued to the customers. A punch mark is made every time the battery is brought in, If the owner neglects to come in, this is indicated by the absence of a punch mark, and puts the blame for any trouble caused by this neglect on the owner. if any cell shows low gravity, a notation of that fact may be made opposite the punch mark for the date on which the low gravity was observed. If the low gravity is again found the next time the battery is brought in, the battery should be removed and given a bench charge. If the bench charge puts the battery in good shape, and the subsequent gravity readings are high, no trouble is present. If, however, the low gravity readings begin to drop off again, it is probable that new separators are required, especially if the battery is about a year old.The logical course of events in the testing and filling service is to keep the battery properly filled (at no cost to the customer), give the battery an occasional bench charge (for which the customer pays), reinsulate the battery when it is about a year old (for which the customer pays), and sell the customer a new battery when the old one is worn out. If some trouble develops during the lifetime of the battery which is not due to lack of proper attention, the customer should pay to have the repairs made. From this the battery man will see how the Testing and Filling Service pays. The way to get business is to have people come to your shop. Become acquainted with them, treat them right, and you need not wonder where the money is to come from.SERVICE RECORDSIn order to run a repair shop in an orderly, business-like manner, it is necessary to have an efficient system of Service Records. Such a system will protect both the repairman and the customer, and simplify the repairman's bookkeeping. For a small service station a very simple system should be adopted. As the business grows, the service record system must necessarily become more complicated, since each battery will pass through several persons' hands. Battery manufacturers generally furnish service record sheets and cards to their service stations, and the repairman who has a contract with a manufacturer generally adopts them. The manufacturers' service record systems are often somewhat complicated, and require considerable bookkeeping.For the smaller service station a single sheet or card is most suitable, there being only one for each job, and carbon sheets and copies being unnecessary. Such a service record has three essential parts: (a) The customer's claim check. (b) The battery tag. (c) The record card. Fig. 183 shows a service record card which is suitable for the average repair shop. Part No. I is the customer's claim check, Part No. 2 the battery tag, and part No. 3 the record card, and is 5 inches by 8 inches in size. The overall size of the entire card is 5 inches by 12 inches. Parts I and 2 are torn off along the perforated lines marked (A).When a battery comes in the three parts are given the same number to identify them when they have been torn apart. The number may be written in the "No." space shown on each part, or the numbers may be stamped on the card. The record should not be made out as soon as a customer comes in, but after the battery has been examined and tested and the necessary work determined. Put the customer's name on parts 2 and 3. Record the address, telephone, etc., in the proper spaces on part 3. Having determined by test and inspection what is to be done, fill out the "WORKCOSTS" table on part 3, putting a check mark in the first column to indicate the work to be done and the material needed. Figure up the cost while the customer waits, if this is possible. Explain the costs to the customer, and have him sign Contract No. 1. If you do this there can never be any argument about the bill you hand the customer later If the customer cannot wait, or if he is well known to you and you know lie will not question your bill, have him sign Contract No. 2. In either case, the terms printed on the back of the card authorize the repairman to make whatever repairs he finds to be necessary, and bind the customer to pay for them. Find out whether the customer will call, whether you are to deliver the battery, or whether you are to ship it, and put a check mark in the proper space at the right of the "WORK-COSTS" table. Mark the battery with the chalk whose color is indicated, and you will know how to dispose of the battery when the repairs are completed.Fill out the claim check and give it to the customer, tearing it off along the perforated lines. Fill out the battery tag, indicating after "Instructions" just what is to be done.Fig. 183 Front & Back of the Battery Service CardMake a sketch of the top of the battery in the space provided, dip the tag in the paraffine dip pot (see page 182) and tack the card on the battery. File part 3 in a standard 5 by 8 card index file. To the right of the "WORK-COSTS" table are spaces for entering the date on which the work is completed, the date the customer is notified and the date the battery goes out. These dates are useful in keeping a record of the job. When the job is finished and the rental comes in, enter the costs in the "COSTS" table, and note the date the bill was paid, in the space marked "PAID."Fig. 184 Rental Battery CardFile all the 5 by 8 cards (Part 3) in alphabetical order in a "dead" ticket file, in either alphabetical or numerical order. With this file you can build up an excellent mailing list of your customers. You can note how many new customers you are securing and how many customers are not coming back. The latter information is very valuable, as it enables you to find out what customers have quit, and you can go after them to get their repair business again.When a rental is put on a card, the card shown in Fig. 184 may be tied to the car where it is easily seen. This will serve as a reminder to the customer and will help advertise your shop to those who ride in the car.Each rental battery should have a number painted on it in large white letters, or should have attached to it at all times a lead tag on which is stamped a number to identify the battery. To keep a record of the rental batteries, a card or sheet similar to that shown in Fig. 185 may be used. Each time the rental is put on a car, a record is made of this fact on the card. Each rental battery has its own card, and reference to this card will show at once where the battery is. Each card thus gives a record of the battery. The number of the rental is also written on the Stock Card shown in Fig. 183, but the purpose of putting the number on these cards is merely to make sure that the battery is returned when the customer's battery is replaced on the car and to be able to figure out the rental cost quickly and add it to the time and material costs in repairing the customer's battery.The Record Card shown in Fig. 183 does not help you locate any particular rental battery. For instance, suppose that rental battery No. 896 is out and you wish to know who is using it. You may, of course, look over the "Battery Tags" which are tied to the batteries which are being repaired in the shop, or you may examine the file containing the record cards, but this would take too much time. But if you refer to the rental file you can determine immediately where rental battery No. 896 is, since the cards in this file should be arranged numerically.The rack on which rental batteries are placed should have a tag bearing the same number as the rental battery tacked to the shelf below the place provided for the battery. Each rental battery should always be placed in the same place on the shelf. You can then tell at a glance which batteries are out.A good plan, and one which will save space, is to write the number of the rental battery on the customer's claim check, and when repairs on his own battery are completed, to set his battery in the place provided on the rental rack for the rental which he is using. When he comes in for his battery, you can tell at a glance whether his battery is ready by looking at the place where the rental he is using is normally placed on the rental rack. If a battery is there you will know that it is his battery, and that it is ready for him.Fig. 185 Rental Battery Stock CardYou could, of course, look through the batteries on the "Ready Rack," but this would take more time, since the numbers of the batteries on this rack will always be different, and you would have to look through all the batteries on the "Ready Rack" before you would be able to tell whether any particular battery were ready. By putting a customer's battery in place of the rental he is using, you will have only one place to look at in order to know whether his battery is ready.(Table of) ContentsCHAPTER 13.BUSINESS METHODS.Success in this day and age cannot be attained without a well thought-out plan of action. There is no business which does not demand some sort of system of management. The smallest business must have it, and will go to ruin without it. Hence every battery service station proprietor should see to it that his affairs are systematized — arranged according to a carefully studied method. Most men look upon "red-tape" with contempt and in the sense of a mere monotonous and meaningless routine, it merits all the contempt poured upon it. Hard, fast and iron-clad rules, which cease to be a means, and become an end, prove a hindrance rather than a help. But an intelligent method, which adapts itself to the needs of the business, is one of the most powerful instruments of business. The battery man who despises it will never do anything well. It does not matter how clever he is, how good a workman he is, how complete his knowledge of batteries, if he attempts to run his business without a plan, he will eventually come to grief.Purchasing Methods.Every battery service station proprietor is eager to build up his business, and improve the character of his trade, because this in turn means that he will be assured of larger sales to a good class of customers. And it is at once evident that there are a number of requirements that affect this question of building up a business, one of the first in importance being that of purchasing.One of the first things with which the battery man is faced is the question of what, where, and in what quantities to purchase. The philosophy of correct purchasing consists in getting the right materials, in proper quantities, at a low price, and with as little cost for the doing of it as possible. The purchasing problem should be a most interesting and important subject to the proprietor of every service station, because the policy pursued with regard to purchasing will not only largely govern the economy of all his expenditures, except rent and payroll, but it will also control his selling policies. Goods are sold, and services rendered only because some one wants to buy. The customer's purchasing problems govern the proprietor's selling problems. To sell properly, it is necessary to meet the requirements of those who buy.Correct purchasing is not merely a matter of "buying." The buying itself has but little to do, after all, with the question of real economy in this part of the business. The proprietor's purchasing policy should not cease when the purchase order isFig. 186 Stock Recordmade out, but should continue after the goods have been delivered, received and inspected. He should see that they are properly stored, that they are put to the use intended, and that they are used efficiently. This can be accomplished to good advantage by the use of the Stock Record illustrated in Fig. 186.When goods are received, each item should be entered on these Stock Record cards, keeping in mind always that the requirements of a "perpetual" or "going" inventory of this kind are that a separate account be kept with each kind or class of stock, and not alone with each class, but with each grade of each class.For example, if a quantity of batteries were received, it would not suffice to have one card only for the entire quantity, unless they should happen to be all of the same type and make. It should be understood that these cards are a record of all articles coming into stock, and all articles going out of stock in the way of sales or otherwise, with an individual card for each kind, grade, style or size of stock carried on hand.From the purchase invoices covering stock received, an entry is made in the column headed "Received", to the proper account, showing date, order number, quantity and price.Each sales tag is used to make the entries in the columns headed "Disbursed", in which the date, tag number, quantity, price, and the balance quantity on hand are shown.If this is done daily, for all the sales tags of the particular day, and the cards on which the "disbursed" entries were made are kept separate from the balance of the cards, it is an easy matter to arrive at the cost of all sales for each day, The advantage of having this daily information will be explained and illustrated in following paragraphs.The Use and Abuse of Credit.The question of the proper use of credit is closely allied with the purchasing of goods. A great many business failures can be traced directly to overexpanded credit. Any battery service station proprietor who does not place a voluntary limit on the amount of credit for which he asks is, to say the least, running a very great business risk. The moment he expands his credit to the limit, he leaves himself with no margin of safety, and a sudden change in business conditions may place him in a serious situation.Commercial agencies usually call this condition a lack of capital. The real cause, however, is not so much lack of capital as it is too much business on credit. This does not mean that credit should not be sought; or that all business should be done on the capital actually invested in the concern. Credit is necessary to commercial life. Very few business concerns are so strong financially as to be able to do without credit.Credit should be sought and used intelligently, and it is not a hard matter for any battery service station proprietor to keep his credit good. All that is necessary is to take a few precautions, and observe in general the principles of good business. The first requisite, of course, is to accept no more credit than the business will stand. Sometimes it is possible to secure enough credit to ruin a business. Its present condition and future prospects may appear so good as to warrant securing all the credit possible under the circumstances.It requires courage to limit the growth and the temporary prosperity of a business by keeping down the credit accepted. It is very hard to refuse business. It is difficult not to make extensions when there is enough business in sight to pay for the extensions. But the acid test of whether or not you should extend and borrow is not the amount of business that can be done, but the amount of money that can be spared. The mere fact that you have the money or can get it does not in the least mean that it should be spent.And the reason for this is that, in order to keep your credit good, you must meet all obligations promptly. Nothing has a more chilling effect on any business than failure to meet all indebtedness when due. As soon as additional time is requested in which to meet obligations, your credit rating begins to contract; and if, at the same time, your credit has been overexpanded the business is placed in a most difficult position. More than one concern has gone to the wall when faced with this combination.Proper Bookkeeping Records.The principal difficulty in this matter of the proper use of credit will lie in poor bookkeeping records, making it impossible for the proprietor to know very much about his financial position or operating condition day by day and week by week and month by month.Many service station proprietors figure what they owe once a year only, when they inventory, and many do not keep a permanent record even then; and usually those who are neglectful in this regard are the ones who owe the most, proportionately, who do not take their discounts, and who do not progress.The following table covers the average discounts allowed in various lines. If you study it, and find out how much it costs you to lose discounts, you will at once realize the necessity for the proper sort of bookkeeping records.1% cash, 30 days net . . . . . . . . . . . . . . . . . . . 12 % per year2% cash, 30 days net . . . . . . . . . . . . . . . . . . . 24 % per year3% cash, 30 days net . . . . . . . . . . . . . . . . . . . 36 % per year5% cash, 30 days net . . . . . . . . . . . . . . . . . . . 60 % per year8% cash, 30 days net . . . . . . . . . . . . . . . . . . . 96 % per year1% 10 days, 30 days net. . . . . . . . . . . . . . . . . 18 % per year2% 10 days, 30 days net. . . . . . . . . . . . . . . . . 36 % per year3% 10 days, 30 days net. . . . . . . . . . . . . . . . . 54 % per year5% 10 days, 30 days net. . . . . . . . . . . . . . . . . 90 % per year8% 10 days, 30 days net. . . . . . . . . . . . . . . . 144 % per year1% 10 days, 60 days net. . . . . . . . . . . . . . . . . 14.4 % per year2% 10 days, 60 days net. . . . . . . . . . . . . . . . . 28.8 % per year3% 10 days, 60 days net. . . . . . . . . . . . . . . . . 43.2 % per year5% 10 days, 60 days net. . . . . . . . . . . . . . . . . 72 % per year8% 10 days, 60 days net. . . . . . . . . . . . . . . . .115.2 % per yearThen there is the matter of expenses; rent, wages, insurances, taxes, depreciation, freight and express, and all the other miscellaneous items that go to make up the total of your cost of doing business.Expenses eat up a business unless controlled.They ought to be so analyzed that you are able to place your finger on items which appear too large, or uncalled for, or which need explanation.A Daily Exhibit of Your Business.In order to accomplish this, you ought to keep a record similar to that shown by Fig. 187 — a Daily Exhibit of your business.The advantage of this record is that it will give any battery man daily information as to the following facts of his business:1. The amount of stock on hand.2. The amount of gross profit.3. The percentage of gross profit.It will give monthly information as to:1. The expense and percentage of expense.2. The actual net profit.3. The percentage of net profit.Such information will help you to locate exactly when and where your losses come; during what months and from what causes. It will enable you to turn losing months this year into profitable months next year; to tell whether your losses were due to a too great expense account, or to too low gross profits.The percentage columns on the sheet are the most important, because only by percentages can you make proper comparisons, and know just how your business is headed. You cannot guess percentages; you must have a way of knowing continually what they are, in order to be certain of getting the right return on your investment.Fig. 187a "Daily Exhibit" formFig. 187b "Daily Exhibit" form, continuedIn analyzing this Daily Exhibit, you will note that it is ruled for five weeks and two extra days, in order to provide for any one and all months of the year. The various columns are provided so that the entries in them will give a clear-cut story of the actual state of your affairs, daily, weekly, and monthly. Each column will be considered in the order in which it appears on the form.First Column — "Merchandise on Hand."In starting this record the first day, the figures entered in this column must be an actual physical inventory of your stock on hand, priced and extended at cost. Do not total this column.Second Column — "New Goods Added to Stock."The figures entered in this column should be the total value of all new goods received from manufacturers or jobbers on the particular day. If you return any articles to the seller immediately upon receipt, and before putting them into your stock, deduct such goods from the invoices and enter only the net amount in this column. This column should be totaled every week and every month.Third Column — "Goods Returned by Customers; — Deduct from Sales."The total value of all goods returned by customers extended at the prices charged customers should be entered in this column daily. Every week and every month this column is totaled.Fourth Column — "Cost of Goods Returned; — Deduct from Cost of Goods Sold."The cost of all goods returned by customers should be entered in this column. The cost prices can always be secured from the Stock Record cards, as previously explained. Total this column every week and every month.Fifth Column — "Goods Returned to Manufacturers."Sometimes there is occasion to return merchandise after it has been put into stock. In such cases, the money value of the articles sent back to manufacturers or jobbers should be entered in this column. This does not mean such goods as were returned on the day received, and were deducted from the seller's invoice, and at no time have appeared in the second column, "New Goods Added to Stock," but only to such merchandise as was originally entered in the second column, and later returned to the manufacturer. This column should be totaled every week and every month.Sixth Column — "Goods Sold, Less Goods Returned."Enter here total of selling prices on sales tags for each day, after deducting amount in the third column. Total this column every week and every month.Seventh Column — "Cost of Goods Sold, Less Cost of Goods Returned."The total of the sales extended at cost prices for each day, minus the amount showing in the fourth column, should be entered in this column. It should be totaled every week and every month.Eighth Column — "Gross Profits."To arrive at the figures to be entered in this column deduct the amount in the seventh column from the amount in the sixth column. Total this column every week and every month.Ninth Column — "Per Cent to Sales."This percentage should be figured every day, and every week and every month, and is arrived at by dividing the figures in the eighth column by the figures in the sixth column. It will pay you to watch this column closely. You will be astonished at the way it varies from day to day, week to week, and month to month. If you watch it closely enough, you will soon learn a great deal more about your business than you ever knew before. You do not need to total this column.Tenth Column — "Accounts Receivable."On the day the Daily Exhibit is first started, the figures for this column must be taken from whatever records you have kept in the past. Do not total this column.Eleventh Column — "Collections."Every day you collect any money from those customers who run charge accounts with you, enter the amount collected in this column. Total it every week and every month.Twelfth Column — "Cash Sales."Every day enter the amount of cash sales in this column, and total it every week and every month.Thirteenth Column — "Charge Sales."The amount of daily sales made to those customers who do not pay cash but run a charge account should be entered in this column. Every week and every month this column should be totaled.General Calculations.To arrive at the amount of "Merchandise on Hand" after the first day, which is, as has been previously explained, an actual physical inventory, add the amounts showing in the first and second columns, and deduct from this total the sum of the fifth and seventh columns. Enter this result in the first column for the next succeeding day. Continue as above throughout the entire month.After the first day the figures in "Accounts Receivable" column are obtained by adding together the amounts showing in the tenth and thirteenth column and deducting from this total the amount in the eleventh column. This balance will be entered in the tenth column for the next day, the same procedure being followed for each day thereafter."Merchandise on Hand" after the close of business on the last day of the month should be entered in the first column on the line marked "Month Total." This same amount will br carried forward to the first column of next month's sheet and entered on the line of the particular day of the week on which the first of the month falls.Following the "Month Total" are the "Year to Date" and "Last Year to Date." These figures are important for purposes of comparison. Arrive at total for "Year to Date" by adding the total for the present month to the total for "Year to Date" found on the previous month's sheet. The figures for "Last Year to Date" are taken directly from the sheet kept for the same month last year. It is, of course, evident that this cannot be done until one year's records have been completed.Expenses and Profits.Under the heading "Summary" at the bottom of the sheet, provision has been made for finding out how much net profit YOU have made for the month.On the line marked "Gross Profits" enter the "Month Total" figures in the eighth column. Below this enter all the various items of expense as follows:(1) Advertising:By advertising is meant such copy, signs, etc., which may be prepared and used for the purpose of keeping the public informed as to your ability to serve them—in other words, any space which is used for general publicity purposes, such as for instance, your card in the classified telephone directory, or blotters, folders, dodgers which you may have printed up and distributed.Do not load this account with church programs, contributions to the ball team, tickets to the fireman's ball and the like. These are donations, and not advertising.(2) Electricity:All bills for electrical current will be charged to this account.(3) Freight:Charges for all freight and express will be made to this account.(4) Insurance:The total yearly insurance should be divined by twelve, to obtain the amount to be charged to this account monthly.(5) Proprietor's salary:Many battery service station proprietors do not charge their own living as an expense. That's a serious mistake, of course. If those same men should hire a manager to run their service station, the manager's salary would naturally be charged to expense. The amount of money withdrawn from the business by the proprietor should therefore be charged to expense.(6) Rent:The amount of money you pay monthly for rent should be charged to this account. If, on the other hand, you own your own building, charge the business with rent, the same as if you were paying it to someone else. Every business should stand rent; besides, the building itself should show itself a profitable investment. Charge yourself just as much as you would anyone else; don't favor your business by undercharging, nor handicap it by overcharging.(7) Supplies:The cost of all supplies, small tools and miscellaneous articles which are bought for use in the business and not for sale should be charged to this account.(8) Taxes:The yearly amount of taxes paid should be divided by twelve, in order to arrive at the monthly proportion to be charged to this account.(9) Wages:The amount of wages paid to employees should be charged to this account. Care should be taken to determine the actual amount for the month, if wages are paid on a daily or weekly wage rate.(10) Miscellaneous:Any expenses of the business not listed above will be charged to this account. This may include such items as donations, loss on bad accounts, and such like items of expense. You may itemize these into as many headings as you desire, but for the purposes of the Daily Exhibit combine all of them under "Miscellaneous Expense."All these expense items are then added together, and this total is entered on the line marked "Total Expenses."Deduct "Total Expenses" from "Gross Profit" to arrive at "Net Profit."To arrive at the totals for "This Year to Date," carry the figures forward from the previous month's sheet and add figures for present month.The figures for "Last Year to Date" will be found on the sheet for the corresponding month of last year, and are copied in this column.All percentages should be figured on sales. The figures shown on each line in the "Amount" columns under the headings "This Month," "This Year to Date" and "Last Year to Date" should be divided by the "Month Total" of the sixth column, shown above, i. e., "Goods Sold, Less Goods Returned."When you take inventory, the amount of stock should equal "Merchandise on Hand," as shown by the Daily Exhibit. But there will generally be a discrepancy, varying with the size of your stock, and that discrepancy will represent the amount of goods gone out of your station without being paid for; sold for cash and not accounted for; sold on credit and not charged, and the like. It's worth something to know exactly what this amounts to. The place for this information is under "Inventory Variations" on the sheet.The space headed "Accounts Payable" is provided for recording, on the last day of every month, just what you owe for accounts and for notes, and also the same information for the corresponding date of last year.Invaluable Monthly Comparative Information.You see now that by the use of the Daily Exhibit you have a running history of your business by days, weeks and months. But this is hardly sufficient for a clear view of your business, since you will want some record which will tell you what the year's business has been, and how it varied from month to month.Fig. 188 Statistical and Comparative RecordFigure 188. Statistical and Comparative Record.This is provided for in the Statistical and Comparative Record, illustrated by Fig. 188, on which the amount of sales, cost of sales, gross profit, expenses and net profit are entered for each month of the year. All the figures for entry in this record are taken directly from the Daily Exhibit at the end of the month, which makes the work of compiling it a very easy task.The advantages of a record of this kind can hardly be overstated. The figures in the upper part of this statement will show which months have been profit payers and which have not, while from the figures in the lower part of the report you are able to determine the percentage any group of expenses bears to sales, and are thus in position to subsequently control such items.Do not let the fear of doing a little bookkeeping work prevent you from keeping these records. They should go a long way toward solving the problems which the average proprietor faces today:1. Selling his goods and services without a profit.2. Failure to show sufficient net profit at the end of the year.3. Constantly increasing cost of doing business.You may think at first glance that it will require a great deal of extra work to keep these records, but in this you are mistaken. They are very simple and easy to operate. The American Bureau of Engineering, Inc., will advise you where to obtain these forms.(Table of) Contents
a. Dirty commutator.b. Dirty brush contact surface.c. Loose brushes.d. Brushes bearing on wrong point of commutator (to set brushes properly, remove all outside connections from generator, open the shunt field circuit, and apply a battery across the main brushes. Shift the brushes until the armature does not tend to rotate in either direction. This is, of course, a test which must be made with the generator on the test bench).e. Loose connections in the shunt field circuit.
a. Dirty commutator.
b. Dirty brush contact surface.
c. Loose brushes.
d. Brushes bearing on wrong point of commutator (to set brushes properly, remove all outside connections from generator, open the shunt field circuit, and apply a battery across the main brushes. Shift the brushes until the armature does not tend to rotate in either direction. This is, of course, a test which must be made with the generator on the test bench).
e. Loose connections in the shunt field circuit.
The foregoing conditions are the ones which will generally be found. More serious troubles will generally prevent the generator from building up at all.
2. Cutout does hot open when engine stops.This condition is shown by a discharge current of about 5 amperes when the engine has stopped. (In Delco systems which have no cutout, an even greater discharge will be noted as long as the ignition switch remains closed.) This trouble is generally due to cutout points stuck together, a broken cutout spring, or a bent or binding cutout armature.
3. Cutout does not open until ammeter indicates a discharge of three or more amperes(in addition to the ignition discharge). This may be remedied by increasing the spring tension of the cutout, or removing any trouble which causes the cutout armature to bind. On many cutouts the armature does not actually touch the core of the cutout winding when the points are closed, there being a small piece of copper or other non-magnetic metal on the armature which touches the end of the cutout and maintains a small air gap between the core and armature, even when the points are closed. The opening action of the cutout may be changed by filing this piece of non-magnetic material so as to decrease the air gap, or pinching it with heavy pliers so as to make it stand farther out from the cutout armature and thus increase the air gap between the armature and core when the points are closed.
Decreasing this air gap will cause the cutout to open late, and increasing it will cause the cutout to open early.
4. Cutout will not close at any engine speed.If cutout does not close the first time the engine speed is increased, stop the engine. This condition may be due to a defective cutout, an open-circuit in the charging line, a ground or short-circuit between the cutout and the generator, or a defective generator. To determine whether the cutout is defective, remove the wires from it and hold together the ends of the wires coming from the generator, and the one going to the ammeter. Start the engine. If no other trouble exists, the ammeter will indicate a charging current at speeds above 8-10 miles per hour. If no current is obtained, stop the engine. If the cutout trouble consisted of an open circuit in one of its windings, or in the points not closing, due to dirt or a binding armature, or if there is an open-circuit in the charging line, the generator will, of course, have been running on open-circuit. This will cause the fuse in the shunt field circuit to blow if there is such a fuse, and if there is no such fuse, the shunt field coils may be burned open, or the insulation on the field coil wires may have become overheated to a point at which it burns and carbonizes, and causes a short-circuit between wires. Such troubles will, of course, prevent a generator from building up when the cutout wires are disconnected and their ends held together.
If there is a ground in the cutout, or between the cutout and the generator, the generator will very likely be unable to generate (if a "one-wire" system is used on the car). If there is some defect in the generator-such as dirty commutator, high mica, brushes not touching, commutator dirty, or loose brushes, brushes too far from neutral, grounded brushes, brushes not well ground in, wrong type of brushes, grounded commutator or armature windings, short-circuited commutator or armature windings, open-circuited armature windings, grounded field windings, short-circuited field windings, open-circuit or poor connections in field circuit, one or more field coil connections reversed, wrong type of armature or field coils used in repairing generator, generator drive mechanism broken-then the generator will not build up.
If no charging current is, therefore, obtained when the generator and ammeter wires are disconnected from the cutout and their ends held together, there may be a ground or short-circuit in the cutout windings or in the circuit between the generator and the cutout, or the generator may be defective, due to having been operated on open-circuit, or due to troubles as described in the foregoing paragraph. The presence of a ground or short in the circuit between the generator and cutout or in the cutout may be determined by disconnected the wire from the generator, disconnecting the battery (or ammeter) wire from the cutout, and running a separate extra wire from the generator to the wire removed from the cutout. Then start the engine again. If a charging current is obtained, there is a ground or short either in the cutout or in the circuit between the cutout and the generator. (It is also possible that the failure of the generator to build up was due to poor brush contact in the generator. The use of the extra wire connected the generator directly to the battery, thus magnetizing the generator fields and causing generator to build up. If poor brush contact prevented the generator from building up, closing the cutout by hand will often cause the generator to start charging. If you can therefore cause the generator to build up by holding the cutout points closed by hand, or by shorting across from the generator terminal to the battery terminal of the cutout, it is probable that the generator brushes are not making good contact). The cutout may be tested by stopping the engine, replacing the battery (or ammeter) wire on the cutout, and holding the end of the extra wire on the generator terminal of the cutout. If a charging current is then obtained, the cutout is 0. K. and the trouble is between the cutout and the generator.
5. An excessive current is obtained.If a third brush generator is used, look for loose or dirty connections in the charging line, dirty cutout points, dirty commutator, dirty brushes (especially the brush, or brushes, which is Dot connected to one end of the field winding), brushes loose, brushes not well ground in, and any other conditions which will cause a high resistance in the charging line. It is characteristic of third brush generators that their current output increases if there is an increase in resistance in the charging circuit. If no troubles such as those enumerated above are found, the third brush may need adjusting.
Generators using vibrating current or voltage regulators will give an excessive output if the points need adjusting or if the regulating resistance is short-circuited.
Generators using reversed series regulation will give an excessive output if there is a short-circuit in the series field coils.
6. Low charging current is obtained.This may be due to adjustment of the regulating device, to high resistance in the shunt field circuit in case of a third brush generator. In case of generators using other kinds of regulation, loose connections, dirty commutator and brushes, etc., will cause low charging current.
7. Generator charges up to a certain speed and then stops charging.The trouble is caused by some condition which causes the brushes to break contact with the commutator, especially in the case of a "third" brush. High mica, loose brush spring, or a commutator which has been turned down off-center may cause the trouble. This trouble most frequently occurs on cars using third brush motor-generators having a 3 to 1 or more speed ratio between them and the engine. These motor-generators operate at such high speeds that high mica and a commutator which is even slightly off center have a much greater effect than the same conditions would cause in separate generators which operate at much lower speeds. The remedy for this trouble is to keep the mica under-cut, and to be very careful to center the armature in the lathe when taking a cut from the armature. In turning down the commutators of high speed motor-generators, special fittings should be made by means of which the armature may be mounted in its own ball-bearings while the commutator is turned down.
The repairman should be very slow in adjusting generator outputs. Most cases of insufficient or excessive charging current are due to the troubles enumerated in the foregoing paragraphs, and not due to incorrect adjustment of the regulating device. Before changing the adjustment of any generator, therefore, be sure that everything is in good condition. The third brush generator, for instance, will have an excessive output if the brushes are dirty, loose, or not well seated on the commutator. The use of a third brush which is too wide, for instance, will change the output considerably. A high resistance third brush will decrease the output, while a low resistance brush will increase the output. On the other hand, an increase in the resistance of the charging circuit will cause an increase in the output of a third brush generator, which is just the opposite to what is ordinarily expected. Such an increase in resistance may be due to loose or dirty connections, dirty cutout contact points, corroded battery terminals and so on. Remember also that the third brush generator sends a higher current into a fully charged battery than it sends into a discharged battery. It is, therefore, essential that a fully charged battery be on the car when the output of a third brush generator is adjusted.
There are two things which determine whether any change should be made in the charging rate on the car, viz: Driving, Conditions and the Season of the Year.
Driving Conditions. A car which makes short runs,with numerous stops, requires that the starting motor be used frequently. This tends to run the battery down very quickly. Moreover, such a car usually does not have its engine running long enough to give the generator an opportunity to keep the battery charged, and to accomplish this, the charging rate should be increased.
A car which is used mostly at nightmay need a higher charging rate, especially if short runs are made, and if the car stands at the curb with its lights burning. Long night runs will generally call for only a normal charging rate, since the long charging periods are offset by the continuous use of the lamps.
A car used on long daylight runsshould generally have the charging rate reduced, because the battery is charged throughout such runs with no discharge into lamps or starting of motor to offset the continued charge. If the lamps are kept lighted during such runs, the normal charge rate will be satisfactory, because the lamp current will automatically reduce the current sent into the battery.
In the winter time,engines must be cranked for a longer time before they will start, the battery is less efficient than in warm weather, and lights are burning for a greater length of time than in summer. Such conditions require an increase in the charging rate, especially if the car is used on short runs. Oil long runs in the winter time, the normal charging rate will generally be satisfactory because the long charging period will offset the longer cranking period.
In the summer time,engines start more easily than in winter, and hence require less cranking. The lamps are used for only short periods and the battery is more efficient than in winter. A lower charging rate will, therefore, keep the battery charged. Long tours in the summer time are especially likely to result in overcharged, overheated batteries, and a reduced charging rate is called for.
A correct charging rate is one which keeps a battery fully charged, but does not overcharge it, and which does not cause either the generator or the battery to become overheated. The only way to determine whether a certain charging rate is correct on any particular car is to make an arrangement with the car owner to bring in his car every two weeks. On such occasions hydrometer readings should be taken and water added, if necessary, to bring the surface of the electrolyte up to the proper level. The hydrometer readings will show whether the generator is keeping the battery charged, and if a change in the charging rate is necessary, the necessary adjustments may be made. If a customer does not bring in his car every two weeks, call him up on the phone or write to him. The interest which you show in his battery by doing this will generally result in the customer giving you all his repair business, and he will also tell his acquaintances about your good service. This will give you considerable "word of mouth" advertising, which is by far the best form of advertising and which cannot be bought. It must be earned by good battery service.
Adjusting a third brush generator.The best rule to remember for changing the output of a third brush machine is that to increase the output, move the third brush in the direction in which the commutator rotates, and to decrease the output, move the third brush in the opposite direction. Move the third brush only 1/16 inch and then sandpaper the brush seat with 00 sandpaper. Allow the generator to run for about twenty minutes to "run-in" the brush. Then vary the speed to see what the maximum charging rate is. If the change in the charging rate is not sufficient, move the third brush another 1/16 inch and proceed as before until the desired charging rate is obtained.
Adjusting Vibrating Regulators. The output of generators which use a vibrating regulator is adjusted by changing the tension of the spring fastened to the regulator arm. In many cases this adjustment is made by means of a screw which is turned up or down to change the spring tension. In other cases a hook or prong is bent to change the spring tension. Where a coil spring is used, lengthening the spring will decrease the tension and lower the output, while shortening the spring will increase the tension and raise the output.
Vibrating regulators are of the "constant" current or the "constant-voltage" types. The constant current regulator has a winding of heavy wire which carries the charging current. When the charging current reaches the value for which the regulator is set, the electromagnet formed by the coil and the core on which it is wound draws the regulator armature toward it and thereby separates the regulator points, which are in series with the shunt field. A resistance coil, which is connected across the regulator points and which is short-circuited when the points are closed, is put in series with the shunt field when the points separate. This reduces the shunt field current, causing a decrease in generator voltage and hence current output. As the current decreases, the pull of the electromagnet on the regulator armature weakens and the spring overcomes the pull of the electromagnet and closes the regulator points. This short-circuits the resistance coil connected across the regulator points and allows the shunt field current to increase again, thereby increasing the generator output. This cycle is repeated at a high rate of speed, causing the regulator points to vibrate rapidly.
The action of a vibrating "constant-voltage" regulator is exactly the same as that of the "constant current" regulator, except that the coil is connected across the generator brushes. The action of this coil therefore depends on the generator voltage, the regulator points vibrating when the generator voltage rises to the value for which the regulator is set.
Adjusting Reverse-Series Generators.The regulation of the output of this type of generator is accomplished by means of a field winding which is in series with the armature, and which therefore carries the charging current. These series field coils are magnetically opposed to the shunt field coils, and an increase in charging current results in a weakening of the field flux. A balanced condition is reached at which no increase of flux takes place as the generator speed increases, the tendency of the increased shunt field current to increase the total flux being counterbalanced by the weakening action of the flux produced by the series field current.
To increase the output of a reverse series generator, it is necessary to weaken the opposing series field flux. The only way of doing this is to short-circuit the series field coils, or connect a resistance across them. To decrease the output of a reverse series generator, a resistance coil may be connected in series with the shunt field winding. Neither of these schemes is practicable, and hence the reverse series generator may be considered as a "non-adjustable" machine. Under-charging may be prevented by using the starting motor and lights as little as possible, or by giving the battery a bench charge occasionally. Over-charging may be prevented by burning the lights whenever the engine is running, or leaving the lights turned on over night.
Other forms of regulation have been used on the older cars, but the majority of the cars now in use use one of the four forms of regulation described in the foregoing paragraphs. If adjustments need to be made on some car having a system of-regulation with which the battery man is not familiar, the work should be done in a service station doing generator work.
If generator outputs are changed because of some special operating condition, such as summer tours, the rate should be changed to normal as soon as the usual driving conditions are resumed.
Every man expects to be paid for his work, since his purpose in working is to get money. Yet there are numerous instances in every line of work requiring work to be done for which no money is received. The term "Free Service" is familiar to every repairman, and it has been the cause of considerable discussion and dispute, since it is often very difficult to know where to draw the Tine between Free Service and Paid Service.
The term "Free Service" might be abolished with benefit to all concerned. In the battery business "Free Inspection" service is a familiar term. It is intended to apply to the regular addition of distilled water by the repairman and to tests made at the time the water is added. Since the term "Inspection" might be Misinterpreted and taken to apply to the opening of batteries for examination, the term "Testing and Filling Service" should be used instead of "Free Inspection Service."
Battery makers furnish cards for distribution to car owners. These cards entitle the holder to bring in his battery every two weeks to have distilled water added if necessary, and to have his battery tested without paying for it. This service requires very little time, and should be given cheerfully by every service man.
"Testing and Filling Service" is an excellent means of becoming acquainted with car owners. Be as pleasant and courteous to the "Testing and Filling" customer as you are to the man who brings in a battery that needs repairs. For this customer will certainly give you his repair business if you have been pleasant in giving the Testing and Filling Service.
A thoroughly competent battery man should be put in charge of the Testing and Filling Service, since this man must meet the car owners, upon whom the service station depends for its income. Customers are impressed, not by an imposing array of repair shop equipment, but by the manner of the men who meet them. These men will increase the number of your customers, or will drive trade to competitors, depending on the impression they leave in the minds of the car owners.
Every service station owner should persuade all the car owners in the vicinity of the station to come in regularly for the free testing and filling service, and when they do come in they should be given cheerful, courteous service. Each "testing" and "filling" customer is a prospective paying customer, for it is entirely natural that a car owner will give his repair work to the battery man who has been taking care of the testing and filling work Oil his battery. When a new battery is needed, the "testing" and "filling" customer will certainly buy it from the man who has been relieving him of the work of keeping his batteries in good shape.
Car owners who depend on your competitor for their "testing and filling" service will not come to you when their battery needs repairing, or when they need a new battery. You may be convinced that you handle a better make of battery than your competitor does, but your competitor's word will carry far more weight than yours with the man who has been coming to him for testing and filling. Good testing and filling service is, therefore, the best method of advertising and building up your business. The cost of this service to you is more than offset by the paying business it certainly brings, and by the saving in money spent for advertising. Remember that a boost by a satisfied customer is of considerably greater value to your business than newspaper advertising.
A careful record should be kept of every battery which is brought in regularly for testing and filling service. If a test shows that one or more cells are low in gravity, say about 1.220, this fact should be recorded. If the gravity is still low when the battery comes in again for test, remove the battery and give it a bench charge. The customer should, of course, pay for the bench charge and for the rental battery which is put on the car in the meantime.
Battery manufacturers generally furnish cards to be used in connection with the testing and filling service, such cards being issued to the customers. A punch mark is made every time the battery is brought in, If the owner neglects to come in, this is indicated by the absence of a punch mark, and puts the blame for any trouble caused by this neglect on the owner. if any cell shows low gravity, a notation of that fact may be made opposite the punch mark for the date on which the low gravity was observed. If the low gravity is again found the next time the battery is brought in, the battery should be removed and given a bench charge. If the bench charge puts the battery in good shape, and the subsequent gravity readings are high, no trouble is present. If, however, the low gravity readings begin to drop off again, it is probable that new separators are required, especially if the battery is about a year old.
The logical course of events in the testing and filling service is to keep the battery properly filled (at no cost to the customer), give the battery an occasional bench charge (for which the customer pays), reinsulate the battery when it is about a year old (for which the customer pays), and sell the customer a new battery when the old one is worn out. If some trouble develops during the lifetime of the battery which is not due to lack of proper attention, the customer should pay to have the repairs made. From this the battery man will see how the Testing and Filling Service pays. The way to get business is to have people come to your shop. Become acquainted with them, treat them right, and you need not wonder where the money is to come from.
In order to run a repair shop in an orderly, business-like manner, it is necessary to have an efficient system of Service Records. Such a system will protect both the repairman and the customer, and simplify the repairman's bookkeeping. For a small service station a very simple system should be adopted. As the business grows, the service record system must necessarily become more complicated, since each battery will pass through several persons' hands. Battery manufacturers generally furnish service record sheets and cards to their service stations, and the repairman who has a contract with a manufacturer generally adopts them. The manufacturers' service record systems are often somewhat complicated, and require considerable bookkeeping.
For the smaller service station a single sheet or card is most suitable, there being only one for each job, and carbon sheets and copies being unnecessary. Such a service record has three essential parts: (a) The customer's claim check. (b) The battery tag. (c) The record card. Fig. 183 shows a service record card which is suitable for the average repair shop. Part No. I is the customer's claim check, Part No. 2 the battery tag, and part No. 3 the record card, and is 5 inches by 8 inches in size. The overall size of the entire card is 5 inches by 12 inches. Parts I and 2 are torn off along the perforated lines marked (A).
When a battery comes in the three parts are given the same number to identify them when they have been torn apart. The number may be written in the "No." space shown on each part, or the numbers may be stamped on the card. The record should not be made out as soon as a customer comes in, but after the battery has been examined and tested and the necessary work determined. Put the customer's name on parts 2 and 3. Record the address, telephone, etc., in the proper spaces on part 3. Having determined by test and inspection what is to be done, fill out the "WORKCOSTS" table on part 3, putting a check mark in the first column to indicate the work to be done and the material needed. Figure up the cost while the customer waits, if this is possible. Explain the costs to the customer, and have him sign Contract No. 1. If you do this there can never be any argument about the bill you hand the customer later If the customer cannot wait, or if he is well known to you and you know lie will not question your bill, have him sign Contract No. 2. In either case, the terms printed on the back of the card authorize the repairman to make whatever repairs he finds to be necessary, and bind the customer to pay for them. Find out whether the customer will call, whether you are to deliver the battery, or whether you are to ship it, and put a check mark in the proper space at the right of the "WORK-COSTS" table. Mark the battery with the chalk whose color is indicated, and you will know how to dispose of the battery when the repairs are completed.
Fill out the claim check and give it to the customer, tearing it off along the perforated lines. Fill out the battery tag, indicating after "Instructions" just what is to be done.
Fig. 183 Front & Back of the Battery Service Card
Make a sketch of the top of the battery in the space provided, dip the tag in the paraffine dip pot (see page 182) and tack the card on the battery. File part 3 in a standard 5 by 8 card index file. To the right of the "WORK-COSTS" table are spaces for entering the date on which the work is completed, the date the customer is notified and the date the battery goes out. These dates are useful in keeping a record of the job. When the job is finished and the rental comes in, enter the costs in the "COSTS" table, and note the date the bill was paid, in the space marked "PAID."
Fig. 184 Rental Battery Card
File all the 5 by 8 cards (Part 3) in alphabetical order in a "dead" ticket file, in either alphabetical or numerical order. With this file you can build up an excellent mailing list of your customers. You can note how many new customers you are securing and how many customers are not coming back. The latter information is very valuable, as it enables you to find out what customers have quit, and you can go after them to get their repair business again.
When a rental is put on a card, the card shown in Fig. 184 may be tied to the car where it is easily seen. This will serve as a reminder to the customer and will help advertise your shop to those who ride in the car.
Each rental battery should have a number painted on it in large white letters, or should have attached to it at all times a lead tag on which is stamped a number to identify the battery. To keep a record of the rental batteries, a card or sheet similar to that shown in Fig. 185 may be used. Each time the rental is put on a car, a record is made of this fact on the card. Each rental battery has its own card, and reference to this card will show at once where the battery is. Each card thus gives a record of the battery. The number of the rental is also written on the Stock Card shown in Fig. 183, but the purpose of putting the number on these cards is merely to make sure that the battery is returned when the customer's battery is replaced on the car and to be able to figure out the rental cost quickly and add it to the time and material costs in repairing the customer's battery.
The Record Card shown in Fig. 183 does not help you locate any particular rental battery. For instance, suppose that rental battery No. 896 is out and you wish to know who is using it. You may, of course, look over the "Battery Tags" which are tied to the batteries which are being repaired in the shop, or you may examine the file containing the record cards, but this would take too much time. But if you refer to the rental file you can determine immediately where rental battery No. 896 is, since the cards in this file should be arranged numerically.
The rack on which rental batteries are placed should have a tag bearing the same number as the rental battery tacked to the shelf below the place provided for the battery. Each rental battery should always be placed in the same place on the shelf. You can then tell at a glance which batteries are out.
A good plan, and one which will save space, is to write the number of the rental battery on the customer's claim check, and when repairs on his own battery are completed, to set his battery in the place provided on the rental rack for the rental which he is using. When he comes in for his battery, you can tell at a glance whether his battery is ready by looking at the place where the rental he is using is normally placed on the rental rack. If a battery is there you will know that it is his battery, and that it is ready for him.
Fig. 185 Rental Battery Stock Card
You could, of course, look through the batteries on the "Ready Rack," but this would take more time, since the numbers of the batteries on this rack will always be different, and you would have to look through all the batteries on the "Ready Rack" before you would be able to tell whether any particular battery were ready. By putting a customer's battery in place of the rental he is using, you will have only one place to look at in order to know whether his battery is ready.
(Table of) Contents
CHAPTER 13.BUSINESS METHODS.Success in this day and age cannot be attained without a well thought-out plan of action. There is no business which does not demand some sort of system of management. The smallest business must have it, and will go to ruin without it. Hence every battery service station proprietor should see to it that his affairs are systematized — arranged according to a carefully studied method. Most men look upon "red-tape" with contempt and in the sense of a mere monotonous and meaningless routine, it merits all the contempt poured upon it. Hard, fast and iron-clad rules, which cease to be a means, and become an end, prove a hindrance rather than a help. But an intelligent method, which adapts itself to the needs of the business, is one of the most powerful instruments of business. The battery man who despises it will never do anything well. It does not matter how clever he is, how good a workman he is, how complete his knowledge of batteries, if he attempts to run his business without a plan, he will eventually come to grief.Purchasing Methods.Every battery service station proprietor is eager to build up his business, and improve the character of his trade, because this in turn means that he will be assured of larger sales to a good class of customers. And it is at once evident that there are a number of requirements that affect this question of building up a business, one of the first in importance being that of purchasing.One of the first things with which the battery man is faced is the question of what, where, and in what quantities to purchase. The philosophy of correct purchasing consists in getting the right materials, in proper quantities, at a low price, and with as little cost for the doing of it as possible. The purchasing problem should be a most interesting and important subject to the proprietor of every service station, because the policy pursued with regard to purchasing will not only largely govern the economy of all his expenditures, except rent and payroll, but it will also control his selling policies. Goods are sold, and services rendered only because some one wants to buy. The customer's purchasing problems govern the proprietor's selling problems. To sell properly, it is necessary to meet the requirements of those who buy.Correct purchasing is not merely a matter of "buying." The buying itself has but little to do, after all, with the question of real economy in this part of the business. The proprietor's purchasing policy should not cease when the purchase order isFig. 186 Stock Recordmade out, but should continue after the goods have been delivered, received and inspected. He should see that they are properly stored, that they are put to the use intended, and that they are used efficiently. This can be accomplished to good advantage by the use of the Stock Record illustrated in Fig. 186.When goods are received, each item should be entered on these Stock Record cards, keeping in mind always that the requirements of a "perpetual" or "going" inventory of this kind are that a separate account be kept with each kind or class of stock, and not alone with each class, but with each grade of each class.For example, if a quantity of batteries were received, it would not suffice to have one card only for the entire quantity, unless they should happen to be all of the same type and make. It should be understood that these cards are a record of all articles coming into stock, and all articles going out of stock in the way of sales or otherwise, with an individual card for each kind, grade, style or size of stock carried on hand.From the purchase invoices covering stock received, an entry is made in the column headed "Received", to the proper account, showing date, order number, quantity and price.Each sales tag is used to make the entries in the columns headed "Disbursed", in which the date, tag number, quantity, price, and the balance quantity on hand are shown.If this is done daily, for all the sales tags of the particular day, and the cards on which the "disbursed" entries were made are kept separate from the balance of the cards, it is an easy matter to arrive at the cost of all sales for each day, The advantage of having this daily information will be explained and illustrated in following paragraphs.The Use and Abuse of Credit.The question of the proper use of credit is closely allied with the purchasing of goods. A great many business failures can be traced directly to overexpanded credit. Any battery service station proprietor who does not place a voluntary limit on the amount of credit for which he asks is, to say the least, running a very great business risk. The moment he expands his credit to the limit, he leaves himself with no margin of safety, and a sudden change in business conditions may place him in a serious situation.Commercial agencies usually call this condition a lack of capital. The real cause, however, is not so much lack of capital as it is too much business on credit. This does not mean that credit should not be sought; or that all business should be done on the capital actually invested in the concern. Credit is necessary to commercial life. Very few business concerns are so strong financially as to be able to do without credit.Credit should be sought and used intelligently, and it is not a hard matter for any battery service station proprietor to keep his credit good. All that is necessary is to take a few precautions, and observe in general the principles of good business. The first requisite, of course, is to accept no more credit than the business will stand. Sometimes it is possible to secure enough credit to ruin a business. Its present condition and future prospects may appear so good as to warrant securing all the credit possible under the circumstances.It requires courage to limit the growth and the temporary prosperity of a business by keeping down the credit accepted. It is very hard to refuse business. It is difficult not to make extensions when there is enough business in sight to pay for the extensions. But the acid test of whether or not you should extend and borrow is not the amount of business that can be done, but the amount of money that can be spared. The mere fact that you have the money or can get it does not in the least mean that it should be spent.And the reason for this is that, in order to keep your credit good, you must meet all obligations promptly. Nothing has a more chilling effect on any business than failure to meet all indebtedness when due. As soon as additional time is requested in which to meet obligations, your credit rating begins to contract; and if, at the same time, your credit has been overexpanded the business is placed in a most difficult position. More than one concern has gone to the wall when faced with this combination.Proper Bookkeeping Records.The principal difficulty in this matter of the proper use of credit will lie in poor bookkeeping records, making it impossible for the proprietor to know very much about his financial position or operating condition day by day and week by week and month by month.Many service station proprietors figure what they owe once a year only, when they inventory, and many do not keep a permanent record even then; and usually those who are neglectful in this regard are the ones who owe the most, proportionately, who do not take their discounts, and who do not progress.The following table covers the average discounts allowed in various lines. If you study it, and find out how much it costs you to lose discounts, you will at once realize the necessity for the proper sort of bookkeeping records.1% cash, 30 days net . . . . . . . . . . . . . . . . . . . 12 % per year2% cash, 30 days net . . . . . . . . . . . . . . . . . . . 24 % per year3% cash, 30 days net . . . . . . . . . . . . . . . . . . . 36 % per year5% cash, 30 days net . . . . . . . . . . . . . . . . . . . 60 % per year8% cash, 30 days net . . . . . . . . . . . . . . . . . . . 96 % per year1% 10 days, 30 days net. . . . . . . . . . . . . . . . . 18 % per year2% 10 days, 30 days net. . . . . . . . . . . . . . . . . 36 % per year3% 10 days, 30 days net. . . . . . . . . . . . . . . . . 54 % per year5% 10 days, 30 days net. . . . . . . . . . . . . . . . . 90 % per year8% 10 days, 30 days net. . . . . . . . . . . . . . . . 144 % per year1% 10 days, 60 days net. . . . . . . . . . . . . . . . . 14.4 % per year2% 10 days, 60 days net. . . . . . . . . . . . . . . . . 28.8 % per year3% 10 days, 60 days net. . . . . . . . . . . . . . . . . 43.2 % per year5% 10 days, 60 days net. . . . . . . . . . . . . . . . . 72 % per year8% 10 days, 60 days net. . . . . . . . . . . . . . . . .115.2 % per yearThen there is the matter of expenses; rent, wages, insurances, taxes, depreciation, freight and express, and all the other miscellaneous items that go to make up the total of your cost of doing business.Expenses eat up a business unless controlled.They ought to be so analyzed that you are able to place your finger on items which appear too large, or uncalled for, or which need explanation.A Daily Exhibit of Your Business.In order to accomplish this, you ought to keep a record similar to that shown by Fig. 187 — a Daily Exhibit of your business.The advantage of this record is that it will give any battery man daily information as to the following facts of his business:1. The amount of stock on hand.2. The amount of gross profit.3. The percentage of gross profit.It will give monthly information as to:1. The expense and percentage of expense.2. The actual net profit.3. The percentage of net profit.Such information will help you to locate exactly when and where your losses come; during what months and from what causes. It will enable you to turn losing months this year into profitable months next year; to tell whether your losses were due to a too great expense account, or to too low gross profits.The percentage columns on the sheet are the most important, because only by percentages can you make proper comparisons, and know just how your business is headed. You cannot guess percentages; you must have a way of knowing continually what they are, in order to be certain of getting the right return on your investment.Fig. 187a "Daily Exhibit" formFig. 187b "Daily Exhibit" form, continuedIn analyzing this Daily Exhibit, you will note that it is ruled for five weeks and two extra days, in order to provide for any one and all months of the year. The various columns are provided so that the entries in them will give a clear-cut story of the actual state of your affairs, daily, weekly, and monthly. Each column will be considered in the order in which it appears on the form.First Column — "Merchandise on Hand."In starting this record the first day, the figures entered in this column must be an actual physical inventory of your stock on hand, priced and extended at cost. Do not total this column.Second Column — "New Goods Added to Stock."The figures entered in this column should be the total value of all new goods received from manufacturers or jobbers on the particular day. If you return any articles to the seller immediately upon receipt, and before putting them into your stock, deduct such goods from the invoices and enter only the net amount in this column. This column should be totaled every week and every month.Third Column — "Goods Returned by Customers; — Deduct from Sales."The total value of all goods returned by customers extended at the prices charged customers should be entered in this column daily. Every week and every month this column is totaled.Fourth Column — "Cost of Goods Returned; — Deduct from Cost of Goods Sold."The cost of all goods returned by customers should be entered in this column. The cost prices can always be secured from the Stock Record cards, as previously explained. Total this column every week and every month.Fifth Column — "Goods Returned to Manufacturers."Sometimes there is occasion to return merchandise after it has been put into stock. In such cases, the money value of the articles sent back to manufacturers or jobbers should be entered in this column. This does not mean such goods as were returned on the day received, and were deducted from the seller's invoice, and at no time have appeared in the second column, "New Goods Added to Stock," but only to such merchandise as was originally entered in the second column, and later returned to the manufacturer. This column should be totaled every week and every month.Sixth Column — "Goods Sold, Less Goods Returned."Enter here total of selling prices on sales tags for each day, after deducting amount in the third column. Total this column every week and every month.Seventh Column — "Cost of Goods Sold, Less Cost of Goods Returned."The total of the sales extended at cost prices for each day, minus the amount showing in the fourth column, should be entered in this column. It should be totaled every week and every month.Eighth Column — "Gross Profits."To arrive at the figures to be entered in this column deduct the amount in the seventh column from the amount in the sixth column. Total this column every week and every month.Ninth Column — "Per Cent to Sales."This percentage should be figured every day, and every week and every month, and is arrived at by dividing the figures in the eighth column by the figures in the sixth column. It will pay you to watch this column closely. You will be astonished at the way it varies from day to day, week to week, and month to month. If you watch it closely enough, you will soon learn a great deal more about your business than you ever knew before. You do not need to total this column.Tenth Column — "Accounts Receivable."On the day the Daily Exhibit is first started, the figures for this column must be taken from whatever records you have kept in the past. Do not total this column.Eleventh Column — "Collections."Every day you collect any money from those customers who run charge accounts with you, enter the amount collected in this column. Total it every week and every month.Twelfth Column — "Cash Sales."Every day enter the amount of cash sales in this column, and total it every week and every month.Thirteenth Column — "Charge Sales."The amount of daily sales made to those customers who do not pay cash but run a charge account should be entered in this column. Every week and every month this column should be totaled.General Calculations.To arrive at the amount of "Merchandise on Hand" after the first day, which is, as has been previously explained, an actual physical inventory, add the amounts showing in the first and second columns, and deduct from this total the sum of the fifth and seventh columns. Enter this result in the first column for the next succeeding day. Continue as above throughout the entire month.After the first day the figures in "Accounts Receivable" column are obtained by adding together the amounts showing in the tenth and thirteenth column and deducting from this total the amount in the eleventh column. This balance will be entered in the tenth column for the next day, the same procedure being followed for each day thereafter."Merchandise on Hand" after the close of business on the last day of the month should be entered in the first column on the line marked "Month Total." This same amount will br carried forward to the first column of next month's sheet and entered on the line of the particular day of the week on which the first of the month falls.Following the "Month Total" are the "Year to Date" and "Last Year to Date." These figures are important for purposes of comparison. Arrive at total for "Year to Date" by adding the total for the present month to the total for "Year to Date" found on the previous month's sheet. The figures for "Last Year to Date" are taken directly from the sheet kept for the same month last year. It is, of course, evident that this cannot be done until one year's records have been completed.Expenses and Profits.Under the heading "Summary" at the bottom of the sheet, provision has been made for finding out how much net profit YOU have made for the month.On the line marked "Gross Profits" enter the "Month Total" figures in the eighth column. Below this enter all the various items of expense as follows:(1) Advertising:By advertising is meant such copy, signs, etc., which may be prepared and used for the purpose of keeping the public informed as to your ability to serve them—in other words, any space which is used for general publicity purposes, such as for instance, your card in the classified telephone directory, or blotters, folders, dodgers which you may have printed up and distributed.Do not load this account with church programs, contributions to the ball team, tickets to the fireman's ball and the like. These are donations, and not advertising.(2) Electricity:All bills for electrical current will be charged to this account.(3) Freight:Charges for all freight and express will be made to this account.(4) Insurance:The total yearly insurance should be divined by twelve, to obtain the amount to be charged to this account monthly.(5) Proprietor's salary:Many battery service station proprietors do not charge their own living as an expense. That's a serious mistake, of course. If those same men should hire a manager to run their service station, the manager's salary would naturally be charged to expense. The amount of money withdrawn from the business by the proprietor should therefore be charged to expense.(6) Rent:The amount of money you pay monthly for rent should be charged to this account. If, on the other hand, you own your own building, charge the business with rent, the same as if you were paying it to someone else. Every business should stand rent; besides, the building itself should show itself a profitable investment. Charge yourself just as much as you would anyone else; don't favor your business by undercharging, nor handicap it by overcharging.(7) Supplies:The cost of all supplies, small tools and miscellaneous articles which are bought for use in the business and not for sale should be charged to this account.(8) Taxes:The yearly amount of taxes paid should be divided by twelve, in order to arrive at the monthly proportion to be charged to this account.(9) Wages:The amount of wages paid to employees should be charged to this account. Care should be taken to determine the actual amount for the month, if wages are paid on a daily or weekly wage rate.(10) Miscellaneous:Any expenses of the business not listed above will be charged to this account. This may include such items as donations, loss on bad accounts, and such like items of expense. You may itemize these into as many headings as you desire, but for the purposes of the Daily Exhibit combine all of them under "Miscellaneous Expense."All these expense items are then added together, and this total is entered on the line marked "Total Expenses."Deduct "Total Expenses" from "Gross Profit" to arrive at "Net Profit."To arrive at the totals for "This Year to Date," carry the figures forward from the previous month's sheet and add figures for present month.The figures for "Last Year to Date" will be found on the sheet for the corresponding month of last year, and are copied in this column.All percentages should be figured on sales. The figures shown on each line in the "Amount" columns under the headings "This Month," "This Year to Date" and "Last Year to Date" should be divided by the "Month Total" of the sixth column, shown above, i. e., "Goods Sold, Less Goods Returned."When you take inventory, the amount of stock should equal "Merchandise on Hand," as shown by the Daily Exhibit. But there will generally be a discrepancy, varying with the size of your stock, and that discrepancy will represent the amount of goods gone out of your station without being paid for; sold for cash and not accounted for; sold on credit and not charged, and the like. It's worth something to know exactly what this amounts to. The place for this information is under "Inventory Variations" on the sheet.The space headed "Accounts Payable" is provided for recording, on the last day of every month, just what you owe for accounts and for notes, and also the same information for the corresponding date of last year.Invaluable Monthly Comparative Information.You see now that by the use of the Daily Exhibit you have a running history of your business by days, weeks and months. But this is hardly sufficient for a clear view of your business, since you will want some record which will tell you what the year's business has been, and how it varied from month to month.Fig. 188 Statistical and Comparative RecordFigure 188. Statistical and Comparative Record.This is provided for in the Statistical and Comparative Record, illustrated by Fig. 188, on which the amount of sales, cost of sales, gross profit, expenses and net profit are entered for each month of the year. All the figures for entry in this record are taken directly from the Daily Exhibit at the end of the month, which makes the work of compiling it a very easy task.The advantages of a record of this kind can hardly be overstated. The figures in the upper part of this statement will show which months have been profit payers and which have not, while from the figures in the lower part of the report you are able to determine the percentage any group of expenses bears to sales, and are thus in position to subsequently control such items.Do not let the fear of doing a little bookkeeping work prevent you from keeping these records. They should go a long way toward solving the problems which the average proprietor faces today:1. Selling his goods and services without a profit.2. Failure to show sufficient net profit at the end of the year.3. Constantly increasing cost of doing business.You may think at first glance that it will require a great deal of extra work to keep these records, but in this you are mistaken. They are very simple and easy to operate. The American Bureau of Engineering, Inc., will advise you where to obtain these forms.
CHAPTER 13.BUSINESS METHODS.
Success in this day and age cannot be attained without a well thought-out plan of action. There is no business which does not demand some sort of system of management. The smallest business must have it, and will go to ruin without it. Hence every battery service station proprietor should see to it that his affairs are systematized — arranged according to a carefully studied method. Most men look upon "red-tape" with contempt and in the sense of a mere monotonous and meaningless routine, it merits all the contempt poured upon it. Hard, fast and iron-clad rules, which cease to be a means, and become an end, prove a hindrance rather than a help. But an intelligent method, which adapts itself to the needs of the business, is one of the most powerful instruments of business. The battery man who despises it will never do anything well. It does not matter how clever he is, how good a workman he is, how complete his knowledge of batteries, if he attempts to run his business without a plan, he will eventually come to grief.
Every battery service station proprietor is eager to build up his business, and improve the character of his trade, because this in turn means that he will be assured of larger sales to a good class of customers. And it is at once evident that there are a number of requirements that affect this question of building up a business, one of the first in importance being that of purchasing.
One of the first things with which the battery man is faced is the question of what, where, and in what quantities to purchase. The philosophy of correct purchasing consists in getting the right materials, in proper quantities, at a low price, and with as little cost for the doing of it as possible. The purchasing problem should be a most interesting and important subject to the proprietor of every service station, because the policy pursued with regard to purchasing will not only largely govern the economy of all his expenditures, except rent and payroll, but it will also control his selling policies. Goods are sold, and services rendered only because some one wants to buy. The customer's purchasing problems govern the proprietor's selling problems. To sell properly, it is necessary to meet the requirements of those who buy.
Correct purchasing is not merely a matter of "buying." The buying itself has but little to do, after all, with the question of real economy in this part of the business. The proprietor's purchasing policy should not cease when the purchase order is
Fig. 186 Stock Record
made out, but should continue after the goods have been delivered, received and inspected. He should see that they are properly stored, that they are put to the use intended, and that they are used efficiently. This can be accomplished to good advantage by the use of the Stock Record illustrated in Fig. 186.
When goods are received, each item should be entered on these Stock Record cards, keeping in mind always that the requirements of a "perpetual" or "going" inventory of this kind are that a separate account be kept with each kind or class of stock, and not alone with each class, but with each grade of each class.
For example, if a quantity of batteries were received, it would not suffice to have one card only for the entire quantity, unless they should happen to be all of the same type and make. It should be understood that these cards are a record of all articles coming into stock, and all articles going out of stock in the way of sales or otherwise, with an individual card for each kind, grade, style or size of stock carried on hand.
From the purchase invoices covering stock received, an entry is made in the column headed "Received", to the proper account, showing date, order number, quantity and price.
Each sales tag is used to make the entries in the columns headed "Disbursed", in which the date, tag number, quantity, price, and the balance quantity on hand are shown.
If this is done daily, for all the sales tags of the particular day, and the cards on which the "disbursed" entries were made are kept separate from the balance of the cards, it is an easy matter to arrive at the cost of all sales for each day, The advantage of having this daily information will be explained and illustrated in following paragraphs.
The question of the proper use of credit is closely allied with the purchasing of goods. A great many business failures can be traced directly to overexpanded credit. Any battery service station proprietor who does not place a voluntary limit on the amount of credit for which he asks is, to say the least, running a very great business risk. The moment he expands his credit to the limit, he leaves himself with no margin of safety, and a sudden change in business conditions may place him in a serious situation.
Commercial agencies usually call this condition a lack of capital. The real cause, however, is not so much lack of capital as it is too much business on credit. This does not mean that credit should not be sought; or that all business should be done on the capital actually invested in the concern. Credit is necessary to commercial life. Very few business concerns are so strong financially as to be able to do without credit.
Credit should be sought and used intelligently, and it is not a hard matter for any battery service station proprietor to keep his credit good. All that is necessary is to take a few precautions, and observe in general the principles of good business. The first requisite, of course, is to accept no more credit than the business will stand. Sometimes it is possible to secure enough credit to ruin a business. Its present condition and future prospects may appear so good as to warrant securing all the credit possible under the circumstances.
It requires courage to limit the growth and the temporary prosperity of a business by keeping down the credit accepted. It is very hard to refuse business. It is difficult not to make extensions when there is enough business in sight to pay for the extensions. But the acid test of whether or not you should extend and borrow is not the amount of business that can be done, but the amount of money that can be spared. The mere fact that you have the money or can get it does not in the least mean that it should be spent.
And the reason for this is that, in order to keep your credit good, you must meet all obligations promptly. Nothing has a more chilling effect on any business than failure to meet all indebtedness when due. As soon as additional time is requested in which to meet obligations, your credit rating begins to contract; and if, at the same time, your credit has been overexpanded the business is placed in a most difficult position. More than one concern has gone to the wall when faced with this combination.
The principal difficulty in this matter of the proper use of credit will lie in poor bookkeeping records, making it impossible for the proprietor to know very much about his financial position or operating condition day by day and week by week and month by month.
Many service station proprietors figure what they owe once a year only, when they inventory, and many do not keep a permanent record even then; and usually those who are neglectful in this regard are the ones who owe the most, proportionately, who do not take their discounts, and who do not progress.
The following table covers the average discounts allowed in various lines. If you study it, and find out how much it costs you to lose discounts, you will at once realize the necessity for the proper sort of bookkeeping records.
1% cash, 30 days net . . . . . . . . . . . . . . . . . . . 12 % per year2% cash, 30 days net . . . . . . . . . . . . . . . . . . . 24 % per year3% cash, 30 days net . . . . . . . . . . . . . . . . . . . 36 % per year5% cash, 30 days net . . . . . . . . . . . . . . . . . . . 60 % per year8% cash, 30 days net . . . . . . . . . . . . . . . . . . . 96 % per year1% 10 days, 30 days net. . . . . . . . . . . . . . . . . 18 % per year2% 10 days, 30 days net. . . . . . . . . . . . . . . . . 36 % per year3% 10 days, 30 days net. . . . . . . . . . . . . . . . . 54 % per year5% 10 days, 30 days net. . . . . . . . . . . . . . . . . 90 % per year8% 10 days, 30 days net. . . . . . . . . . . . . . . . 144 % per year1% 10 days, 60 days net. . . . . . . . . . . . . . . . . 14.4 % per year2% 10 days, 60 days net. . . . . . . . . . . . . . . . . 28.8 % per year3% 10 days, 60 days net. . . . . . . . . . . . . . . . . 43.2 % per year5% 10 days, 60 days net. . . . . . . . . . . . . . . . . 72 % per year8% 10 days, 60 days net. . . . . . . . . . . . . . . . .115.2 % per year
1% cash, 30 days net . . . . . . . . . . . . . . . . . . . 12 % per year2% cash, 30 days net . . . . . . . . . . . . . . . . . . . 24 % per year3% cash, 30 days net . . . . . . . . . . . . . . . . . . . 36 % per year5% cash, 30 days net . . . . . . . . . . . . . . . . . . . 60 % per year8% cash, 30 days net . . . . . . . . . . . . . . . . . . . 96 % per year1% 10 days, 30 days net. . . . . . . . . . . . . . . . . 18 % per year2% 10 days, 30 days net. . . . . . . . . . . . . . . . . 36 % per year3% 10 days, 30 days net. . . . . . . . . . . . . . . . . 54 % per year5% 10 days, 30 days net. . . . . . . . . . . . . . . . . 90 % per year8% 10 days, 30 days net. . . . . . . . . . . . . . . . 144 % per year1% 10 days, 60 days net. . . . . . . . . . . . . . . . . 14.4 % per year2% 10 days, 60 days net. . . . . . . . . . . . . . . . . 28.8 % per year3% 10 days, 60 days net. . . . . . . . . . . . . . . . . 43.2 % per year5% 10 days, 60 days net. . . . . . . . . . . . . . . . . 72 % per year8% 10 days, 60 days net. . . . . . . . . . . . . . . . .115.2 % per year
Then there is the matter of expenses; rent, wages, insurances, taxes, depreciation, freight and express, and all the other miscellaneous items that go to make up the total of your cost of doing business.Expenses eat up a business unless controlled.They ought to be so analyzed that you are able to place your finger on items which appear too large, or uncalled for, or which need explanation.
In order to accomplish this, you ought to keep a record similar to that shown by Fig. 187 — a Daily Exhibit of your business.
The advantage of this record is that it will give any battery man daily information as to the following facts of his business:
1. The amount of stock on hand.2. The amount of gross profit.3. The percentage of gross profit.
1. The amount of stock on hand.
2. The amount of gross profit.
3. The percentage of gross profit.
It will give monthly information as to:
1. The expense and percentage of expense.2. The actual net profit.3. The percentage of net profit.
1. The expense and percentage of expense.
2. The actual net profit.
3. The percentage of net profit.
Such information will help you to locate exactly when and where your losses come; during what months and from what causes. It will enable you to turn losing months this year into profitable months next year; to tell whether your losses were due to a too great expense account, or to too low gross profits.
The percentage columns on the sheet are the most important, because only by percentages can you make proper comparisons, and know just how your business is headed. You cannot guess percentages; you must have a way of knowing continually what they are, in order to be certain of getting the right return on your investment.
Fig. 187a "Daily Exhibit" form
Fig. 187b "Daily Exhibit" form, continued
In analyzing this Daily Exhibit, you will note that it is ruled for five weeks and two extra days, in order to provide for any one and all months of the year. The various columns are provided so that the entries in them will give a clear-cut story of the actual state of your affairs, daily, weekly, and monthly. Each column will be considered in the order in which it appears on the form.
First Column — "Merchandise on Hand."In starting this record the first day, the figures entered in this column must be an actual physical inventory of your stock on hand, priced and extended at cost. Do not total this column.
Second Column — "New Goods Added to Stock."The figures entered in this column should be the total value of all new goods received from manufacturers or jobbers on the particular day. If you return any articles to the seller immediately upon receipt, and before putting them into your stock, deduct such goods from the invoices and enter only the net amount in this column. This column should be totaled every week and every month.
Third Column — "Goods Returned by Customers; — Deduct from Sales."The total value of all goods returned by customers extended at the prices charged customers should be entered in this column daily. Every week and every month this column is totaled.
Fourth Column — "Cost of Goods Returned; — Deduct from Cost of Goods Sold."The cost of all goods returned by customers should be entered in this column. The cost prices can always be secured from the Stock Record cards, as previously explained. Total this column every week and every month.
Fifth Column — "Goods Returned to Manufacturers."Sometimes there is occasion to return merchandise after it has been put into stock. In such cases, the money value of the articles sent back to manufacturers or jobbers should be entered in this column. This does not mean such goods as were returned on the day received, and were deducted from the seller's invoice, and at no time have appeared in the second column, "New Goods Added to Stock," but only to such merchandise as was originally entered in the second column, and later returned to the manufacturer. This column should be totaled every week and every month.
Sixth Column — "Goods Sold, Less Goods Returned."Enter here total of selling prices on sales tags for each day, after deducting amount in the third column. Total this column every week and every month.
Seventh Column — "Cost of Goods Sold, Less Cost of Goods Returned."The total of the sales extended at cost prices for each day, minus the amount showing in the fourth column, should be entered in this column. It should be totaled every week and every month.
Eighth Column — "Gross Profits."To arrive at the figures to be entered in this column deduct the amount in the seventh column from the amount in the sixth column. Total this column every week and every month.
Ninth Column — "Per Cent to Sales."This percentage should be figured every day, and every week and every month, and is arrived at by dividing the figures in the eighth column by the figures in the sixth column. It will pay you to watch this column closely. You will be astonished at the way it varies from day to day, week to week, and month to month. If you watch it closely enough, you will soon learn a great deal more about your business than you ever knew before. You do not need to total this column.
Tenth Column — "Accounts Receivable."On the day the Daily Exhibit is first started, the figures for this column must be taken from whatever records you have kept in the past. Do not total this column.
Eleventh Column — "Collections."Every day you collect any money from those customers who run charge accounts with you, enter the amount collected in this column. Total it every week and every month.
Twelfth Column — "Cash Sales."Every day enter the amount of cash sales in this column, and total it every week and every month.
Thirteenth Column — "Charge Sales."The amount of daily sales made to those customers who do not pay cash but run a charge account should be entered in this column. Every week and every month this column should be totaled.
General Calculations.To arrive at the amount of "Merchandise on Hand" after the first day, which is, as has been previously explained, an actual physical inventory, add the amounts showing in the first and second columns, and deduct from this total the sum of the fifth and seventh columns. Enter this result in the first column for the next succeeding day. Continue as above throughout the entire month.
After the first day the figures in "Accounts Receivable" column are obtained by adding together the amounts showing in the tenth and thirteenth column and deducting from this total the amount in the eleventh column. This balance will be entered in the tenth column for the next day, the same procedure being followed for each day thereafter.
"Merchandise on Hand" after the close of business on the last day of the month should be entered in the first column on the line marked "Month Total." This same amount will br carried forward to the first column of next month's sheet and entered on the line of the particular day of the week on which the first of the month falls.
Following the "Month Total" are the "Year to Date" and "Last Year to Date." These figures are important for purposes of comparison. Arrive at total for "Year to Date" by adding the total for the present month to the total for "Year to Date" found on the previous month's sheet. The figures for "Last Year to Date" are taken directly from the sheet kept for the same month last year. It is, of course, evident that this cannot be done until one year's records have been completed.
Under the heading "Summary" at the bottom of the sheet, provision has been made for finding out how much net profit YOU have made for the month.
On the line marked "Gross Profits" enter the "Month Total" figures in the eighth column. Below this enter all the various items of expense as follows:
(1) Advertising:By advertising is meant such copy, signs, etc., which may be prepared and used for the purpose of keeping the public informed as to your ability to serve them—in other words, any space which is used for general publicity purposes, such as for instance, your card in the classified telephone directory, or blotters, folders, dodgers which you may have printed up and distributed.
Do not load this account with church programs, contributions to the ball team, tickets to the fireman's ball and the like. These are donations, and not advertising.
(2) Electricity:All bills for electrical current will be charged to this account.
(3) Freight:Charges for all freight and express will be made to this account.
(4) Insurance:The total yearly insurance should be divined by twelve, to obtain the amount to be charged to this account monthly.
(5) Proprietor's salary:Many battery service station proprietors do not charge their own living as an expense. That's a serious mistake, of course. If those same men should hire a manager to run their service station, the manager's salary would naturally be charged to expense. The amount of money withdrawn from the business by the proprietor should therefore be charged to expense.
(6) Rent:The amount of money you pay monthly for rent should be charged to this account. If, on the other hand, you own your own building, charge the business with rent, the same as if you were paying it to someone else. Every business should stand rent; besides, the building itself should show itself a profitable investment. Charge yourself just as much as you would anyone else; don't favor your business by undercharging, nor handicap it by overcharging.
(7) Supplies:The cost of all supplies, small tools and miscellaneous articles which are bought for use in the business and not for sale should be charged to this account.
(8) Taxes:The yearly amount of taxes paid should be divided by twelve, in order to arrive at the monthly proportion to be charged to this account.
(9) Wages:The amount of wages paid to employees should be charged to this account. Care should be taken to determine the actual amount for the month, if wages are paid on a daily or weekly wage rate.
(10) Miscellaneous:Any expenses of the business not listed above will be charged to this account. This may include such items as donations, loss on bad accounts, and such like items of expense. You may itemize these into as many headings as you desire, but for the purposes of the Daily Exhibit combine all of them under "Miscellaneous Expense."
All these expense items are then added together, and this total is entered on the line marked "Total Expenses."
Deduct "Total Expenses" from "Gross Profit" to arrive at "Net Profit."
To arrive at the totals for "This Year to Date," carry the figures forward from the previous month's sheet and add figures for present month.
The figures for "Last Year to Date" will be found on the sheet for the corresponding month of last year, and are copied in this column.
All percentages should be figured on sales. The figures shown on each line in the "Amount" columns under the headings "This Month," "This Year to Date" and "Last Year to Date" should be divided by the "Month Total" of the sixth column, shown above, i. e., "Goods Sold, Less Goods Returned."
When you take inventory, the amount of stock should equal "Merchandise on Hand," as shown by the Daily Exhibit. But there will generally be a discrepancy, varying with the size of your stock, and that discrepancy will represent the amount of goods gone out of your station without being paid for; sold for cash and not accounted for; sold on credit and not charged, and the like. It's worth something to know exactly what this amounts to. The place for this information is under "Inventory Variations" on the sheet.
The space headed "Accounts Payable" is provided for recording, on the last day of every month, just what you owe for accounts and for notes, and also the same information for the corresponding date of last year.
You see now that by the use of the Daily Exhibit you have a running history of your business by days, weeks and months. But this is hardly sufficient for a clear view of your business, since you will want some record which will tell you what the year's business has been, and how it varied from month to month.
Fig. 188 Statistical and Comparative Record
Figure 188. Statistical and Comparative Record.
This is provided for in the Statistical and Comparative Record, illustrated by Fig. 188, on which the amount of sales, cost of sales, gross profit, expenses and net profit are entered for each month of the year. All the figures for entry in this record are taken directly from the Daily Exhibit at the end of the month, which makes the work of compiling it a very easy task.
The advantages of a record of this kind can hardly be overstated. The figures in the upper part of this statement will show which months have been profit payers and which have not, while from the figures in the lower part of the report you are able to determine the percentage any group of expenses bears to sales, and are thus in position to subsequently control such items.
Do not let the fear of doing a little bookkeeping work prevent you from keeping these records. They should go a long way toward solving the problems which the average proprietor faces today:
1. Selling his goods and services without a profit.
2. Failure to show sufficient net profit at the end of the year.
3. Constantly increasing cost of doing business.
You may think at first glance that it will require a great deal of extra work to keep these records, but in this you are mistaken. They are very simple and easy to operate. The American Bureau of Engineering, Inc., will advise you where to obtain these forms.
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