The talking machine world (Jan-June 1928)

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Dealer Education Program Responsible for the Success of Farrand Methods David F. Goldman, Sales Manager of North American Radio Corp., Tells How Farrand Co. Protects Dealers and Has Maintained Products as One-Priced Merchandise A PROGRAM of education to dealers selling radio apparatus is the main reason of our success in distributing Farrand speakers in the Greater New York market. Three years ago, when we were appointed to distribute Farrand products, the dealers had created an "upset market." Prices were being cut galore, whether or not apparatus was new or old, good or bad, advertised or unadvertised. Invading "Cut-Price" District With the Farrand speaker, a new type of speaker at that time, theoretically and practically correct, and with a fine program of sensible advertising, we set out to show radio dealers that here was an item that was going to show a clean profit at the end of the year. Our biggest problem was convincing dealers that the only profitable manner in which they could expect to remain in business for a period of time was to quit cutting prices and make the substantial legitimate profit allowed by the manufacturer. And as was to be expected, we met our strongest opposition in Cortlandt street, noted then more than now for its cut prices. We were very anxious to break into this market, with its enormous sales for such a small, restricted area. But, nevertheless, we were not going to change our policy of price maintenance, nor would we go back on our words to other Farrand dealers in the city. In the Cortlandt street section we originally opened up with but one retailer, knowing that he would permit no price-cutting on Farrand speakers. At first the neighboring dealers were skeptical about this retailer's success in selling a radio accessory at full list price where the practice is just the opposite. The answer to the skepticism of these dealers at that time is found in the fact that at the present time there are about fifteen dealers in the Cortlandt street section selling Farrand apparatus and none of them advertising their Farrand speakers or eliminators at prices lower than those advertised by the Farrand Mfg. Co. Getting Away From Price Appeal Another phase of our educational campaign to dealers in proper merchandising was in the manner of advertising nationally known apparatus. The main appeal in the retailers' advertisements at that time was price. The various other sales appeals were hardly ever used. Neither were art work, fine engravings, real sales slogans, etc. Moreover, we realized that dealers would be anxious for a departure from the conventional price-cutting advertisements of three years ago. To meet this desire we furnished our Farrand dealers with mats of varying sizes, advertising the Farrand speakers with a quality appeal in a different and attractive manner. The result has been that retailers have never advertised Farrand speakers at prices lower than the nationally advertised list price. No Dumping Policy Another reason that Farrand products have never been cut is that the Farrand policy has never permitted "close-cuts" or dumping. When a new model is decided upon, dealers are notified approximately one month ahead. They are advised to buy only what they could immediately sell within the notified time. In fact, during this notification period we have sometimes run low on our merchandise in our own warehouse and have shipped Farrand apparatus from one dealer to another. The result has been that when Farrand announced its models no dealers found themselves with an appreciable stock of the older models. Hence no reason at all for price-cutting. Dealers Protected From Loss One of the best policies ever adopted by any radio manufacturer, in our opinion, has been that of the Farrand Mfg. Co., which protects dealers from loss through price reductions. Although Farrand never has and still has no intention of reducing its prices, the dealer is assured that should prices be reduced at any time he will be rebated on any stock he has on hand, whether it be IS, 30, 60, 90 days or more. With this guarantee and the assurance of a month's notice before the introduction of new Farrand models, retailers are safe in stocking Farrand merchandise. If other radio manufacturers were to adopt similar policies we would see cleaner and more profitable merchandising in the radio business. Kolster Radio Selected by Blindfolded Committee A novel test for selecting a radio receivingset was used by the Amesbury, Mass., Radio Club in choosing the equipment which the club is giving to the Amesbury Hospital as a means of entertaining convalescent patients. A committee of nine club members were blindfolded and several sets were tested, on the basis of quality of reception, volume and selectivity. The unanimous choice of the committee proved to be a Kolster receiver. Each room in the hospital is equipped with radio outlets and a set of earphones will be installed at every bed, so that each patient will have an opportunity to listen in. Immediately upon the announcement of the release of parts 5 and 6 of "Two Black Crows," by the Columbia Phonograph Co., William Hicks, of the Melody Shoppe, Elmira, N. Y., dispatched an aviator to Binghamton to pick up a shipment in that city and rush the records back to the store. The World s Largest Producers of Die -Castings Doehlcr Die-Cast sine alloy three wax valve for combination Radio and Victrola. IF you could see the multitudinous sizes and forms of Die Castings produced in our four great plants each day .... d. If you could see the engineering and metallurgical problems involved in their production d. If you could see how our organization meets unusual demands with a willing readiness .... C That would quickly convince you of Doehler capability for producing YOUR die castings — with certain satisfaction. CCOur booklet is interesting and informative. Your copy is free. EE sea PurPoses. S\ DOEHLER DIE-CASTING CO. Brooklyn, N.Y. Toledo, O. Batavia, N.Y. Pottslown, Pa. 18