Selling Latin America: A Problem in International Salesmanship. What to Sell and How to Sell It
Part 15
It would be well if shipping clerks engaged in the export trade would make a careful study of the geography of the Latin American countries, and the various ways of routing goods, as well as the topography of each state. This would do much toward eliminating complications. As an illustration of the ignorance so frequently displayed in this connection, let me recite what happened to a joint shipment of beer and mineral water, intended for Leon, Nicaragua. In ordering goods from this country the Latin American merchant will often have a shipment made up of goods from different cities. He will instruct or request the exporter living at the port from which the shipment is to be made, to assemble the several cases which make up his various orders, and send them under one consular invoice, his idea being to save money, in the many incidental charges made by consuls and those handling his freight. The beer came from Milwaukee and the mineral water from the warehouse in New York City. The shipping instructions read as follows:
“Ship via Isthmus of Tehuantepec, to Salina Cruz then via first opportunity to Leon, Nicaragua.”
The intellectual shipping clerk could see no valid reason for sending goods intended for Nicaragua through Mexico, so he took upon himself their routing, and as a result the goods were sent direct from New York to Bluefields, Nicaragua, on the east coast of that country, with instructions to a forwarding agent there to dispatch them to their destination on the west coast. That was three years ago and the last I heard of them was that they had been sold by the customs authorities to pay storage and other accumulated charges. Of course the forwarding agent in Bluefields realized that it would be easier to send goods to the North Pole than across the country, as he had been instructed, owing to the fact that there was hardly a mountain trail over which they might be transported. In addition to this it would take several weeks to make the journey, and the expense would be enormous. These facts were communicated to the shippers who promptly decided to abandon the goods, replying that they did not care to do business in such an inaccessible country. As a result of this colossal error goods to the value of more than $2500 were lost to the exporter and the importer, and bad feeling engendered on both sides. The speculator who bought them at the custom house sale, told me that the contents of the bottles had deteriorated so that the goods were unsaleable after their long stay in the tropical warehouse, and as a result he was the possessor of a large quantity of bottles for which he had no sale.
Shipments from the United States to a foreign country require what is known as a consular invoice to accompany them. This document states briefly the contents of the invoice, its weight, and value, from whom and for whom intended. This paper must be made out before the consul or vice-consul of the country to which the goods are to be exported, the idea being to keep track of the business between the nations. This document should always be in the language of the country for which the shipment is intended, although all the consuls do not require this condition to be rigidly complied with. They must be taken to the office of the consul or vice-consul empowered to issue and sign them and as a rule he requires one or more copies for his files and for forwarding to his government, or to the customs authorities at the port to which the goods are going. For this service he charges a fee, generally specified by law. Great care should be exercised in the preparation of these papers, as before intimated. The importer generally states just how he wishes his goods declared in these documents and it is best to follow his commands instead of those which may be issued or suggested by some of the employes of the consular office, or even the consul himself. Besides if you follow your shipping instructions there can be no cause of complaint, on the part of the buyer, should unfavorable conditions arise.
It might be well in order to impress upon the reader’s mind some of the great difficulties to be overcome and the many handlings that are received by goods in transit to follow in detail a shipment actually made from New York City to La Paz, Bolivia, the route being the usual one taken by merchandise intended for that place. The order was placed in February, 1913, early in the month and the goods arrived December 22nd, 1913, being more than ten months on the way. When the American salesman received the order at La Paz, it was immediately forwarded by the next mail to New York City, where it arrived in about five weeks. The shipment of 854 cases was made from the factory in the middle West about the 15th of April, 1913, and the vessel containing them sailed from New York harbor, May 1st, 1913. Exceptionally bad weather in the Atlantic, delays in the Straits, storms in the southern Pacific, and time lost in discharging cargo intended for intermediate ports made it September 1st, before the goods reached Mollendo, in Peru, the port of discharge for the interior. Here, owing to bad weather, Mollendo being one of the worst ports on the Pacific, and the further fact that the roads and custom house were both congested with freight, a common occurrence in this part of the world, another month was consumed before the cases were finally got ashore and passed by the Peruvian authorities. A few more days were lost in loading them on the narrow gauge railroad that runs from Mollendo to Arequipa, an inland city of Peru, and the end of the first railway. Here the goods were trans-shipped to the road running to Puno, Peru, on the shores of Lake Titicaca, where they were again discharged and allowed to wait for many days before their turn came to be stowed on the small steamer plying across this perpetually storm-tossed lake in the clouds, to Guaqui, where after being put ashore they were again examined by the Bolivian customs officials. They were next placed on the train which took them across the wind swept plateaus of Bolivia, to the edge of the tea-cup rim, at the bottom of which La Paz is situated. Here again they were transferred, this time to an electric train which took them down the face of the canyon wall, 1500 feet, to the station at the outskirts of La Paz. At this point Indian cargadores took the cases, one at a time, on their backs and carried them to the merchant’s warehouse, where they were again opened, and checked up, after which they were repacked and sent on into the interior towns, mining camps and his branch stores, via llama, burro and mule.
In this shipment there was nothing unusual. It went over the route commonly selected and took about the average length of time. If you have followed its many handlings by rough men, in all kinds of weather, you will admit at once the necessity for strong packing cases and you will, I am sure, cease to wonder why it takes goods intended for interior cities so long to reach their goal.
A wise precaution, and one to be recommended for all shipments to Latin America, is to insure them against theft en route. This may add a little to the cost of the article, but it is the only protection against petty pilfering. The fact is that the minor employes of the custom houses, as well as the porters, trainmen and pack train attendants are so poorly paid, and so completely lacking in honesty that there is every tendency in the world to appropriate whatever appeals to their fancy. I have known what should have been cases of toilet soap to arrive at their destination, filled with scrap-iron, so as not to attract suspicion by their weight, and this after duty had been collected at the custom house and freight paid by the shipper. Unless there is an insurance against these depredations one has absolutely no protection, for it is practically impossible to prove where and by whom the theft was committed. Furthermore if a conviction were obtained it would mean that in future all goods bearing your particular shipping mark would be forever doomed to trouble.
I am always forced to laugh when I think of the experience of a traveller for a well-known baking company in the United States who was making his initial trip to South America. The port at which he landed was, as it generally is, the scene of a yellow fever epidemic. Fearful of contracting this disease he decided to take the first train for the capital, located in the mountains and as a rule free from the scourge which infests the port. Inasmuch as the train left early, he deposited his twelve sample cases at the custom house with the keys and the request that after they had been inspected one of the men whom he had tipped should send them by the evening train to his hotel. After waiting for three days without receiving the trunks, during which time he frequently sent telephonic messages to the customs authorities and telegraphed and wrote the United States consul on the subject, he decided to go in person, despite his fear of contracting fever, and secure his samples. You may imagine his surprise on reaching his cases to find every one empty—the cakes and biscuits and dainties had been eaten by the customs employes. Of course it was impossible to place the blame on any one, and his loud demands for redress resulted in the police escorting him to the railway station and threatening to arrest him if he persisted in continuing his demonstrations. His cable to the house,
“Samples eaten by the customs authorities. Send duplicates,”
confirmed the belief of his employers that he had gone suddenly insane and brought this brief reply:—
“Return immediately.”
As far as I know, this big company have made no further efforts to enter these really profitable fields, which are still dominated by English cracker and biscuit concerns. I trust that the moral will be patent to my readers that it pays to keep close to your sample cases and never trust them with unreliable or unknown natives.
XXVII ADVERTISING
Advertising is in its infancy in all parts of Latin America. It has been given neither thought, study or attention, by the native, and where some particular article has made a “hit” or developed into a profitable seller through publicity, the chances are that the campaign was conducted by some foreigner more or less familiar with modern methods. Thousands of dollars are yearly wasted by inexperienced persons in trying to market goods along erroneous lines.
The great thing which militates against successful work in this field is the enormous percentage of illiteracy—some authorities placing it as high as 85 per cent. Chile admits that 49 per cent. of her citizens cannot read or write; Argentine 54 per cent.; Cuba 56 per cent.; Mexico 75 per cent.; Brazil 85 per cent. and Guatemala 92 per cent. This condition is easily conceivable when we stop to consider the scarcity of either public or private schools, and the large percentage of aborigines, Indians, negroes and mixed breed population, especially in the northern countries of South America, as well as in Central America, Mexico and the Spanish-speaking West Indies.
How to reach this class, each member of which is a potential possibility from a purchasing point of view, is a problem requiring much consideration. Bright colors attract them and posters and cards illustrating your article, and showing its application and practicability have their value. Such souvenirs are never thrown away but are preserved for years. If any member of the village can read he is asked to transcribe the printing on the medium, and this will in all probability form the subject for much discussion so that ultimately everybody becomes acquainted with whatever may be thereon related or depicted, thereby fulfilling the mission for which it was intended.
To advertise a luxury to the uneducated classes is a waste of money, for they have neither the means nor the desire to indulge in such extravagances. Very naturally the great demand among these people, as it is among persons of this class elsewhere, is for the necessities of life—cotton goods, textiles, patent medicines, shoes, farming implements, hardware, machinery, tools and the like. These are the things required by the farmer and the laborer who make up the greater proportion of the world’s population, and perhaps the very best way to reach them is through the influence of the middle man, the jobber and the local storekeeper. Of these three, the village merchant is by far the most important with the masses. He is always a man of standing in his community. He is invariably respected and looked up to. His word among many amounts to law—his judgment final. He is the moneyed man of the neighborhood. He carries the peons on his books—helps them along in hard times, and when crops are short—extends credit when he thinks it wise to do so and curtails it when proper. He is therefore in a position to force on this great class of the people whatever he wishes. I recall one of these typical country merchants telling me that practically every man in the neighborhood owed him money and that therefore he had them all in his power, so that he could tell them just what he wished them to do or buy or be closed out. The control held by such a man in these remote communities is far-reaching and conclusive. It is quite obvious that the proletariat may be reached through direct appeal to him. He usually takes the local papers, and those published in his immediate vicinity, and is certain to subscribe to one or more of the leading metropolitan dailies, so as to keep in touch with the markets and shipping conditions. He knows almost to a ton what this year’s crop will amount to; what the output of the neighboring mines will be; how much rubber will come from up country; if wool will bring a high price, or if cattle will be lower than last year, and is generally an all around encyclopaedia of useful information on every local subject. The course to pursue is obvious—advertise in the papers he takes, and at the same time cultivate his friendship. Get to know him personally and intimately, and seek to do him favors when the opportunity offers.
The educated and better class of people demand all the luxuries and the nicer things that the markets of the world afford. In addition to their native language, they have been taught to speak French and most of them use this idiom as frequently as they do their mother tongue and have perhaps at various times in their careers lived in the capitals of Europe. Their tastes are most modern. They demand the best and have the money to pay for it. Obviously it is a comparatively simple problem to reach this class. In each Latin American country are to be found numerous weeklies and monthlies, most of which are well got up typographically and profusely illustrated, which are an excellent medium for placing one in direct touch with this desirable portion of the purchasing public. They also take the leading metropolitan dailies and these papers are very effective in bringing to their attention articles which they may desire.
Sign boards are beginning to be well thought of and are making their appearance throughout the larger cities. Posters, well executed, but in glaring colors, and if possible displaying a portion of a nude female always attract universal attention and for many lines are excellent mediums. Some of the countries charge an internal revenue tax on all sign boards, posters, placards and street announcements proportionate to their size. Before undertaking a campaign requiring the use of this class of material, it is therefore well to ascertain what this fee will amount to and arrange for its payment. In some cities the hoardings are sold for a period of years, to the highest bidder, who in turn rents them to the user for a specified time. These spaces are often the property of the municipality which contracts directly with the user for them. In Buenos Aires these stands are so highly thought of that they are often leased years in advance.
Moving picture theatres abound in the larger cities as they do with us. Between films it is the custom to run advertisements which are thrown on the screen for a few minutes. This is a rather cheap and practical means of announcing one’s wares, inasmuch as it reaches a good class of people.
Street cars are used as extensively as in the United States, and are worthy of serious consideration in conducting an elaborate advertising campaign. Not only are the inside spaces in the car for sale, but in many cities the spaces outside both above and below the windows and the front and rear dashboards are effectively used.
Electric signs are as yet comparatively unknown. Some of the larger cities such as Rio de Janeiro and Buenos Aires have a few but they are the exception to the general rule. The streets are usually so narrow that good locations for display purposes are difficult to find. This condition will be overcome in time, in many of the metropolitan towns, with the advent of municipal improvements, the broadening of streets and the laying out of modern avenues. Another element which militates against the universal use of the “flash” sign is the fact that they are apt to get out of order and mechanics experienced enough to repair and keep them in operative condition are not numerous in these localities. It therefore follows that for some years to come, the fixed electric sign would be the more ideal for this section of the world.
I doubt if any business house in any part of Latin America is really familiar with the value of the follow-up letter system such as we use so satisfactorily in the United States. I am certain that its introduction and regular use will be found profitable in developing any line of trade, especially when intended for those who in the course of a year receive comparatively little correspondence.
With regard to advertising rates the Latin American publisher is becoming more consistent of late. Time was when he asked $600.00 a year and took $60.00. To-day he keeps closer to an established price, although diplomacy and politeness can accomplish much toward a generous reduction on his first quotation. Local dealers always are given a far better rate than foreigners and before doing business with a paper it is highly advisable to find out by some means the price paid by the larger business houses of the place. This will serve you as a guide in determining what to pay for your space. It is always customary to run little “readers” in the columns especially if you have contracted for much advertising, and as these cost nothing, it is well to provide appropriate manuscript for them and insist upon its being used.
Local copy in many sections of Latin America is far from our idea of what it should be and may appear a bit startling to our notions of propriety. In Peru, there is a mineral water known as “Jesus Water,” the labels on the bottle, the colored posters and other advertising showing Christ at the spring.
A cognac company uses cuts, posters and large signs depicting the Saviour in the act of pouring out a glass of brandy and saying to Lazarus, lying in a coffin at his feet, “Lazarus, arise and take a glass of Cognac Bisquit.” I have seen this announcement in colors on the back page of the leading illustrated weekly.
“You Furnish the Corpse and Do the Mourning—We Do the Rest,” is the ingenious slogan announcing the advertisement of an undertaking firm. Let me add that such advertisements are not considered sacrilegious or brutal, but simply show how primitive conditions are in these fields.
Doctors advertise patients and patients advertise doctors in these favored lands of the sun. This is considered perfectly ethical and adds to rather than detracts from the reputation of both parties. I recall a picture in halftones in the leading weekly of South America showing the photographs of a physician and his patient, a well known lady of the city. Grouped between the two were reproductions of forty-eight stones alleged to have been removed from the sufferer. Pictures of amputations are shown in detail, with lifelike illustrations of the surgeon. Executions are also minutely depicted. I mention these facts in order that a more complete insight may be gained as to the advertising disposition and temperament of the public.
Position in the greater number of papers is an unknown quantity and its value little understood or appreciated. Those connected with the journal positively do not realize its importance. Even if a definite location is contracted for in your agreement you need not be surprised if the advertisement appears anywhere on any page. This is not done to antagonize you, but is due to the fact above mentioned. Attempts to deduct for wrong position in making payments generally start all kinds of trouble and result in caustic editorial comments. Here as in all things in Latin America, friendship counts, and if you have taken the precaution to get on the right side of the editor and the make-up man, you can have your choice of positions. I know of a representative who was advertising a well known American mineral water in South America three years ago. One of the dailies in which he was doing much display work had just added a new two-color press to its equipment and as he was very intimate with the editor the advertisement appeared in red ink for a long time in the center of the front page along with the foreign telegraphic news, columns being broken for the purpose. No extra charge was made for the service and the owner of the sheet felt that he had done nothing more than exhibit his high regard for the gentleman from the North.
Before preparing your copy for Latin America it is well to study all these conditions and see wherein you can take advantage of them for there is no denying that peculiar opportunities exist which if profited by may mean for you and your firm success in this territory.
Once you have decided upon your copy and the size of the space you intend using, it is advisable to have electro cuts made. This saves time and insures for your advertisement a uniformity of text and type which cannot be guaranteed if the same is to be set up in the office of the paper for each issue. When these electros are to be used in rotation they should be numbered and printed instructions for the foreman should accompany them.
Plagiarism is rampant. They recognize Americans as the best advertisers in the world and not being familiar with English appropriate and use our illustrations irrespective of the fact that they may have absolutely no bearing on what they are advocating.