Radio broadcast .. (1922-30)

.RADIO HKOADCAST. a /» i OOH The answers to the next question—"Do you charge a uni- form down payment?"—show that a majority of the dealers want to know what it means in cash to make an installment sale: 71 per cent, answered "Yes" and 29 per cent, said "No." Isn't there a supersensitiveness to what the customer thinks he wants in those "No" answers? Shouldn't the customer recognize the dealer's need of exact methods in this particu- lar? I believe that he can easily be made to, and the 71 per cent, seem to have put that belief into practice. Down Payment Required Here we come to another wide variation. I confess it sur- prises me to learn that as many as 48 per cent, of these dealers get one fourth of the price or better as a down payment. Obvi- ously, it can be done. Isn't it also obvious that it should be done? Here is the tabulation: 12 per cent, of dealers say 10 per cent. down. 12 per cent, say 15 per cent. down. 27 per cent, say 20 per cent, down, 23 per cent, say 25 per cent, down, and 16 per cent, say 33 per cent. down. So we see that 68 per cent, get one fifth down or better. What we get and what we want are often different. The next question is: "Do you want higher down payments?" To this 68 per cent, answer "Yes" and 32 per cent, answer "No." Does not the preceding tabulation indicate that those who want larger down payments can get them? Obviously others have. Queer how the percentages in the next question—"Do customers want lower down payments?"—almost reverse those in the last. In replying to this 61 per cent, answer "Yes" and 39 per cent, answer "No." Obviously, again, customers do not want lower down payments badly enough to prevent their buying sets. Percentage of Cash Sales The need for insuring against defaults in installment pay- ment and for collecting sufficient interest is shown in the answers to the question, " What proportion of your sales are cash?" About half report that 10 per cent, or less of their sales are for cash. Obviously it takes a fairly good financier to be in the radio business if half do business with only 10 per cent, or less of cash sales. Here is the story: 21 per cent, report cash sales of 2 to 5 (Concluded on page 122) (1) FINANCING (A) How Dealers Finance Time-Payment Sales. (1) Store finances sale—32 per cent. (2) Through finance company or bank—43 per cent. (3) Partly through hank or finance company and their own store—25 per cent. (2) DOWN PAYMENTS (A) Is Uniform Down Payment Required? (1) Dealers requiring uniform down payment—71 per cent. (2) Dealers not requiring uniform down payment—29 per cent. (B) How Large a Down Payment Is Required? (1) Per Cent, of Sale Required as Dealers Down Payment Reporting 10 12.0% 15 12.0% 20 27.0% 25 23.0% 33 16.0% (C) Do Dealers Want Higher Down Payments? (1) Dealers answering yes—68 per cent. (2) Dealers answering no—32 per cent. (D) Do Customers Want Lower Down Payments? (1) Dealers answering yes—61 per cent. (2) Dealers answering no—39 per cent. (3) INTEREST CHARGES (A) What Interest Charges Are Asked? (4) BAD DEBTS (A) What Proportion of Sales Are Bad Debts? (1) Per Cent, of Dealers Bad Debts Reporting None 29.0% lor less 38.0% 2 13.0% 3 6.5% 5 11.0% 10 2.5% (B) Are Dealers Insured Against Defaults? (1) Dealers carrying insurance—8.5 per cent. (2) Dealers not carrying insurance—91.5 per cent. (C) How Are Dealers Insured Against Defaults? (1) Commercial credit company—1.4 per cent. (2) Lease—1.4 per cent. (3) Chattel mortgage—2.8 per cent. (4) Insurance policy—1.4 per cent. (5) Mortgage—1.4 per cent. (5) CASH SALES (A) What Proportion of Set Sales Are Cash? (B) Are Cash Sales Larger Than Last Year? (1) Dealers answering yes—30 per cent. (2) Dealers answering no—70 per cent. • DECEMBER 1929 • 83