A
of this bureau. A laboratory is maintained at Bandoeng, and various
types of equipment are tested upon the payment of certain stipulated
fees. Approval by the Government does not necessarily mean that
it will purchase or recommend the purchase of the material tested,
but it does mean that the results of the tests will be accepted by local
buyers as definitive evidence of the equipment’s technical qualifications
forlocal use. Satisfactory tests arerequired of Government purchases.
TERMS
Definite consumer preferences are shown certain manufacturers
because of the more favorable terms quoted by them as compared
with American firms, particularly in the field of heavy equipment.
It is said that some of the German firms are prepared to grant almost
any terms in order to introduce certain types of equipment where
there is a possibility of doing a large volume of business at a later
date. In addition, some of the large engineering houses representing
German firms will undertake the financing of extensive projects in
order to obtain the contract for the entire job.
As a rule, important orders for electrical equipment are accepted
[rom buyers on terms of one-third down, one-third on delivery of
goods, and the balance after the installation is complete. If, however,
the purchaser is fairly reliable yet unable to meet these terms, the
European branch houses or the local agents of European firms usually
grant longer terms. It is said that some of the large engineering
houses will grant terms extending over & period of several years, if
necessary to secure the business. Usually the large engineering or
import house that an American manufacturer would have as his
agent would accept almost any terms if there was a possibility of
doing business. However, few firms in Java would be willing to in-
vest any large sum of money in stocks that were not being rapidly
moved. American firms usually demand a letter of credit for heavy
electrical equipment, but the lighter lines are sold on terms ranging
from 30 to 90 days after acceptance. The usual terms granted by
American exporters should not present any great handicap to the
development of business in the Netherland East Indies.
To summarize the consumer preferences shown in the purchasing of
electrical equipment, it would appear that there are no outstanding
reasons why American manufacturers can not secure a larger share of
the electrical trade of the territory if they are prepared to concentrate
on this market to the same degree that their continental competitors
have done.
MARKETING AGENCIES
Electrical equipment is sold in the Netherland East Indies through
the following outlets: (1) Branch houses; (2) general engineering
firms, (3) general importers, (4) manufacturers’ agents, and (5)
Chinese importers. .
Branch houses usually carry a fairly heavy stock of the goods manu-
factured by their respective firms, which in some cases represents a
complete line of electrical equipment. There are also branch houses
of firms specializing in the manufacture of only a few large volume
lines of equipment.
The general engineering firms sometimes hold agencies of large
electrical manufacturers and usually have one or more factory rep-