The Expanded and Annotated My Life and Work

Do Not Add Unnecessary Middlemen
The next point is particularly important. Ford sold cars directly to pur-
chasers and not through dealers who would add a markup. It was, how-
ever, apparently necessary for him to add a network of dealers later. 
The dealerships then added value through their ability to service the 
Ford vehicles.
* * *
We had been through an experimenting period of five years. The cars were 
beginning to be sold in Europe. The business, as an automobile business then 
went, was considered extraordinarily prosperous. We had plenty of money. 
Since the first year we have practically always had plenty of money. We sold 
for cash, we did not borrow money, and we sold directly to the purchaser. We 
had no bad debts and we kept within ourselves on every move. I have always 
kept well within my resources. I have never found it necessary to strain them, 
because, inevitably, if you give attention to work and service, the resources 
will increase more rapidly than you can devise ways and means of disposing 
of them.
We were careful in the selection of our salesmen. At first there was great 
difficulty in getting good salesmen because the automobile trade was not 
supposed to be stable. It was supposed to be dealing in a luxury—in plea-
sure vehicles. We eventually appointed agents, selecting the very best men we 
could find, and then paying to them a salary larger than they could possibly 
earn in business for themselves. In the beginning we had not paid much in 
the way of salaries. We were feeling our way, but when we knew what our 
way was, we adopted the policy of paying the very highest reward for service 
and then insisting upon getting the highest service. Among the requirements 
for an agent we laid down the following:
 
(1) A progressive, up-to-date man keenly alive to the possibilities of business.
 
(2) A suitable place of business clean and dignified in appearance.
 
(3) A stock of parts sufficient to make prompt replacements and keep in 
active service every Ford car in his territory.
 
(4) An adequately equipped repair shop which has in it the right machin-
ery for every necessary repair and adjustment.

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Starting the Real Business  •  43
 
(5) Mechanics who are thoroughly familiar with the construction and 
operation of Ford cars.
 
(6) A comprehensive bookkeeping system and a follow-up sales system, so 
that it may be instantly apparent what is the financial status of the 
various departments of his business, the condition and size of his stock, 
the present owners of cars, and the future prospects.
 
(7) Absolute cleanliness throughout every department. There must be no 
unwashed windows, dusty furniture, dirty floors.
 
(8) A suitable display sign.
 
(9) The adoption of policies which will ensure absolutely square dealing 
and the highest character of business ethics.
And this is the general instruction that was issued:
A dealer or a salesman ought to have the name of every possible auto-
mobile buyer in his territory, including all those who have never given 
the matter a thought. He should then personally solicit by visitation if 
possible—by correspondence at the least—every man on that list and 
then making necessary memoranda, know the automobile situation 
as related to every resident so solicited. If your territory is too large to 
permit this, you have too much territory.