The talking machine world (Jan-June 1928)

The Talking Machine World Vol. 24. No. 2 New York, February, 1928 Price Twenty-five Cents E Introduction of the AC receivers and devices for converting battery operated sets into AC receivers will make the next year a profitable one for the trade. Battery set market should not be neglected xpanded Sales Field Should Boost Trade Volume THE introduction of the AC radio receiving set has brought about a condition in retail trade circles that should insure a satisfactory sales volume during the year. The strong demand for the all-electric radio, according to reports from dealers throughout the country, is an indication of the popularity of •these products. However, competition is just as keen as it was three or four or six months ago, and the dealer who expects to get volume business must hustle for it. The all-electric radio certainly will bring people into the store without any great effort on the part of the dealer. The only fly in the ointment is the fact that there are so many dealers. Naturally, a too great division of sales among these dealers will shorten, the profit for each individual engaged in the business. There is only one solution as far as the talking machine-radio dealer is concerned, and that is he must work hard to get not only the business that would naturally come to him, but also cash in on the extra sales that can only be developed by merchandising along modern and intelligent lines. A Broad Market The market is there. Every home that is equipped with electricity, and where there is now no radio set, is of course a live prospect. How quickly and effectively the dealer sells this type of individual depends entirely upon the circumstances and the effort put forth. Then, too, a fair trade in replacement sales can be made without too much trouble. Many people who bought radio sets two or three years ago may be considered as prospects. There is no question about it; the performance of the modern radio set is far superior to those constructed a few years ago, and it is performance and ease of operation that the dealer must sell. What every dealer wants when he is trying to put over a product is a good convincing "talking point," and this he has in the all-electric set. There can be no stronger argument to the man or woman interested in radio and not especially interested in fooling around with the mechanics of a set than to make clear the fact that all that is necessary to get reception is to simply plug in on the house current — a simple action that will appeal to most people. The market is there, and there is profit in this business.. Profits From Battery Operated Sets In spite of the widespread popularity of the new all-electric set, battery operated sets will still be sold. Throughout the country there are thousands of homes without electricity, and these are the logical battery operated set prospects. Perhaps the demand for battery sets may be smaller but nevertheless it is a foolish dealer who will overlook this source of business. The manager of one of the leading retail concerns in the East made the statement a short time ago that sales of battery operated sets were consistently good, although sales of allelectric receivers were more numerous. Analysis of the Field It is not a question of throwing out battery operated sets and concentrating on the line of least resistance, but it is more a question of careful analysis of the market for each of these The talking machine dealer who handles radio now has a three-fold market in that department of his business. New products now being distributed give the merchant a well-developed line of radio that is designed to meet every conceivable demand on the part of the public. Competition for sales makes necessary consistent promotion efforts if the retail merchant expects to cash in on his radio department. . . products. If investigation shows that the dealer may expect a fair amount of business in battery sets he should get behind them strong, and the dealer who does this will find that it will pay him handsomely, for the very simple reason that many of his competitors will undoubtedly be neglecting this market for radio. Nor should this statement be misconstrued to mean that the all-electric set should be neglected. On the contrary the retail sales promotion campaign should include all the products the dealer handles. If the line of merchandise is not important enough to warrant sales effort, certainly it is not important enough to take space in the store. . Modern methods must be used to get profitable sales volume to-day. The department stores realize this. So do the chain stores, and they get behind every department of their business and make each department pay, otherwise out it goes, and it is certain that where there is a market for a certain line of goods the department is not thrown out, but it is forced to pay. If the man in charge is unable to cope with the situation they get a new man who can. The one point in all this is that in so far as battery sets are concerned, the dealer must determine his market, base his buying accordingly, and then go out and sell. On the other hand what about the thousands of radio sets in the homes to-day? All of these people certainly are not prospects for all-electric sets. While some may buy new sets, the vast majority will not do so, however much they would like to for the convenience of all-electric operation. New Opportunity for Sales New devices designed to convert the battery-operated set into an AC receiver, are being introduced to the trade by various manufacturers. These devices are already arousing the interest of the trade because retailers realize that many people who now own batteryoperated sets are live prospects for them. All of these developments combined make the retail outlook for the next year eminently satisfactory. In radio alone the retailer now has three markets. First, there is the market for i lie new all-electric sets. Second, the market for battery sets. Third, the sales field for the devices for converting battery sets into AC receivers. In addition, the coming months should witness an excellent demand for loud speakers, AC tubes and eliminators. Another factor that should react to the profit of the dealer is the growing tendency of people who own table sets to house them in the attractive console and highboy cabinets now being placed on the market by leading cabinet makers. Because of these facts more than ever is it necessary for merchants to analyze their immediate markets. Buying the merchandise that can be sold quickly enough to give the retailer a profitable turnover will play an important part in the success of talking machine-radio merchants in the year to come — in fact, more so than at any other time in the history of the industry. Certainly, the dealer has diversity of merchandise with a wide appeal. He has the goods and it only is necessary that he present them in a manner calculated to create the desire on the part of the public. More intensive sales promotion campaigns, wider in scope, to include all the products featured, is the answer to more frequent turnover in the various departments of the business. Consistent effort must be made by the merchant, not only because modern merchandising and competition demand it, but because only in this way can he profit to the fullest extent. The Battle for Business In every community there can be only so much business. There may actually be only enough radio business to give adequate profits to two or three stores. On the other hand six or seven stores may be fighting for sales, and the result is that the dealer who fights the hardest and most effectively is bound to profit most, and the more the individual gets above his quota by just so much more does some competitor fall down. The time is coming when the strongest, most intelligent dealers will be the survivors in the struggle for sales — an elimination that can only be of benefit to the trade. See second last page for Index of Articles of Interest in this issue of The World 3