sugar mill, or an electrified tea factory. One American firm only
is in a position to quote for electrical installations, but it does not
attempt to bid for the complete job, whereas the representatives of
German and other Continental firms frequently undertake the actual
construction of buildings or electrified sucar mills, and as a matter
of course also secure the contract for the oleotrical installation. The
important purchasers of electrical equipment prefer to have one large
firm contract for an undertaking rather than deal with one firm for
the concrete work, one for the steel work, another for the electrical
installation, ete.
This handicap is one that will be extremely difficult for American
firms to overcome unless thay are fortunate enough to secure as
their representatives one of the large general engineering firms, which
are mentioned in the subsequent section of this report entitled
“Marketing agencies.”
SERVICE AND TECHNICAL ADVICE
Many orders are placed with firms having experienced technical
staffs in Java, which supervise or actually carry out the electrical
installation. In addition, consumers of heavy electrical equipment
expect the manufacturers to maintain a trained staff and ample
stocks of spare parts to servite the equipment which they have
purchased.
American manufacturers as a rule are not prepared to keep high-
salaried electrical engineers in the Netherland East Indies on the
chance that some business will come their way. Several American
firms have tried it, but at present there are only two electrical manu-
facturers with representatives in the territory. The men who have
been sent out in the past have found that the obstacles they had to
overcome were too great.
STOCK
It is of course desirable for manufacturers interested in marketing
their products in the Netherland East Indies to consider the question
of stocks. The success of Continental manufacturers in certain
lines is directly attributable to the fact that either their branch
houses or their agents carry representative stocks. It is only logical
that a prospective buyer prefers to buy locally instead of placing an
order with the agent or representative of a company which takes
from three to four months to fill his indent, It is of course not
necessary to maintain stocks of power house or substation equipment,
but the manufacturer who expects to sell motors up to 50 horsepower,
electric-lighting fixtures, fuzes, switches, house-wiring equipment
and accessories, domestic appliances, etc., must look for an agent
that will carry stocks or else open a factory branch.
A CONSERVATIVE MARKET
New lines of electrical equipment are extremely difficult to intro-
duce. In view of the fact that most American equipment is little
known in the Netherland East Indies, the advantages and merits
of these products must be thoroughly proved and tested before it is
possible to interest prospective buyers. Manufacturers desirous of
having their equipment tested and approved by the Bureau of Water
Power and Electricity may do so by complying with the requirements