The talking machine world (Jan-June 1928)

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The Talking Machine World Vol. 24. No. 3 New York, March, I 928 Price Twenty-five Cents The Road to Stabilization WHERE is the radio industry heading? The speed of development of radio to one of the leading industries of the country has made individual and collective analysis impossible. Weaknesses have developed and, while corrective measures have been taken in some directions, there is a vital need to-day for co-ordination of effort to bring about a greater stabilization. The future of the radio industry depends upon co-operation within the industry. The manufacturer, wholesaler and dealer all should be concerned, because each is an important part of the fabric of this industry. When a dealer does a volume business and finds himself at the end of the year with a loss in the radio department; when a wholesaler jeopardizes the healthy progress of his induslry by selling al retail; when Mr. Consumer can get the usual discount given to a retail merchant; when a gyp can sell to the consumer at a price lower than that at which the average dealer can buy; when the public adopts an attitude of "waiting for improved models," there is, to put it mildly, room for improvement all along the line. Eradication of costly merchandising "mistakes" and steps toward the general improvement of the industry must come from within. Concerted effort on the part of the three branches of the industry — manufacturer, wholesaler and retailer — in a careful study of the underlying causes of these conditions should result in ways and means of bringing about improvements that should develop healthy progress. Fundamentally radio is sound. Anything that takes hold of the public imagination and becomes such an integral part of everyday life as has radio is essential to welfare and happiness. History repeats itself. Radio has grown too rapidly for its own good and the industry has reached the point where some definite action is necessary. Many of the problems that face radio to-day have been successfully solved by other industries. The automobile business provides an excellent example. From production right down the line to consumer distribution the automobile Every Dealer Should Read These Articles Slashed His Radio Service 90 Per Cent (Page 32) Profits From Portables (Page 4) Specialization Will Add to Your Sales Volume — By C. H. Mansfield (Page 8) How Two Live Dealers View the Problem of Radio Trade-ins — By Clarence J. O'Neil (Page io) Theatre Tie-Ups Aid Sales of Records— By J. L. Simpson . . (Page is) Tulsa Store Steps Up Record Sales — By Ruel McDaniel . (Page 22) Collecting from Delinquent Customers Without Loss of Good Will — By R. J. Cassell . . . (Page 28} industry is much similar to radio. Cost, style, performance, service, trade-in, underselling, each of these came in for individual and collective attention, with the result that to-day the automobile merchandising plan is fairly standardized and the big fight of the industry is a fair competition for sales that has resulted in general progress and profit. There is much talk of stabilization, but until the manufacturer can devote his entire energies to turning out the best possible product at the lowest possible cost; until the wholesaler can turn all his thoughts to the distribution of his radio lines and until the dealer can devote his time to actual selling and not to problems that are not only costly, but are really side issues, the radio industry cannot be said to be truly stabilized. Manufacturers, wholesalers and retailers are in business for one purpose — to make money. Any weakness in the chain of production and merchandising cuts down the profit, and retards to some extent the advancement of the industry. Conditions in the industry that are most harmful are not the petty, individual worries. Nor does the so-called stabilization of the industry depend on the solution of individual problems. Improvement of radio merchandising in all of its branches does, however, depend upon the successful solution of the broad problems of the industry. Thousands of dealers are finding hard sledding because of unfair competition. Service still eats into retail profits. Radio broadcasting has not entirely emerged from the chaotic state, although it has been vastly improved. Straightening the production curve is still of paramount importance from the standpoint of the manufacturer. The distributor's troubles are closely allied with those of both manufacturers and dealers. And because of this interlocking of important interests greater co-operation in providing remedies for the ills of the industry is imperative. The time has arrived when thought must be given to the elimination of harmful practices because only by such action can the industry continue to expand in a substantial manner. See second last page for Index of Articles of Interest in this issue of The World 3