The Edison phonograph monthly (Jan-Dec 1916)

EDISON PHONOGRAPH MONTHLY, MARCH, 1916 A CONTINUOUS INCOME WHEN an insurance agent sells a policy he not only receives in remuneration a percentage of the first premium, but he also receives an annual payment on each policy that is renewed. The income of the average successful insurance agent from renewals is substantial and it often reaches a figure, in long-established concerns, in excess of the profits on the active business of the year. This is one of the features that makes the insurance business so highly attractive to so many capable salesmen. The opportunity to build up a business that will net them a substantial income even after they have ceased active work is one that must appeal to every person. But the insurance agent has nothing on the phonograph dealer, providing the latter keeps in close touch with every person to whom he has sold a machine. As the insurance agent has to be constantly alert to prevent policy holders from canceling their contracts, so the phonograph dealer must make every effort to prevent phonograph owners from losing interest in their machines. If this is done the first profit on the sale of a phonograph is only a small part of the profit-making possibilities of the transaction. The returns that may be secured from the follow-up business in records may easily total more than the immediate profit attached to the sale of the machine. In this way the phonograph agency presents all of the alluring possibilities of the insurance business. Every policy that the insurance agent sells insures an income for him as long as the policy is being renewed. And every Amberola that the dealer sells insures him a future income as long as he keeps in touch with the owner of the machine and keeps him interested in renewing his records. So every Amberola that you sell is a sort of an income insurance policy that guarantees you substantial returns as long as it is in use. "THE DRUG STORE, THE MOST LOGICAL PLACE TO SELL PHONOGRAPHS" By Burton L. Bennett, Bristol, Conn. (Prize winning article on "What Chance Does a Druggist Have Against Other Dealers in the Handling of Phonographs." The prize was offered by the Bulletin of Pharmacy, Detroit, Mich.) It was along in the late nineties that I first became interested in phonographs. I was the first dealer in my city to offer them for sale. But at that time the talking machine industry was in its infancy; the instruments were not the perfected devices that they are to-day. The motors were small in comparison to those now in use; the records were made of wax and easily broken or destroyed by handling. After a time I became discouraged and ceased to handle the line, as I did not think it would ever become a commercial success. That's where I made a big mistake. Instead of sticking and allowing my business to grow with the development of the phonograph, I quit, and thereby lost the prestige that rightfully should have been mine. About 1910, when the hornless disc graphophone appeared on the market, came my second opportunity to handle talking machines. I grasped it. So much so that I now figure 20 per cent, of my gross receipts comes from phonographs and supplies. The beauty of the business is that every time I sell a machine I make a customer for innumerable records and supplies. I am creating future sales and laying a foundation for a constantly increasing trade. The line is one that is always in demand and allows a good margin of profit. To my mind the talking machine business is fully as desirable and as easily conducted as is the selling of cameras. And hundreds of druggists know from experience what a large volume of business it is possible to derive from the latter. The camera and supply trade is at its height in summer, the phonograph trade swells to its largest proportion in winter. The two serve to balance each other and keep the volume of business on an even keel. WHY HANDLING THE LINE PAYS Phonographs do not require much space in which to display them. Just room enough for a few small machines on the counters, and a cabinet or two on the floor suffices. Considering the amount of space required, no other department of the store pays larger returns. From my experience I am led to believe that there are at least six good reasons why the druggist has an equal, if not a better, chance against other stores in the sale of phonographs. Here they are: 1. Drug store locations are usually such that they lend themselves most favorably to the display of any line of merchandise that has merit. 2. Drug store hours of doing business are longer than those of most other stores, hence the owners have greater opportunities to make sales. 3. No special technical knowledge is required to sell phonographs or records. 4. Drug stores cater to a wide class of trade; the high and low, the rich and the poor. Phonographs range in price from $10 to $500. There is a style to suit every taste and a price to fit every pocketbook. 5. The public looks to the modern drug store for many different articles, and can be educated quite easily to purchase there phonographs and supplies. 6. And most important of all — phonographs, like cameras, are sold to the dealer at a restricted resale price and on an exclusive agency plan. There is no price cutting and no competitor next door has the same line.