The talking machine world (Jan-June 1928)

Profits From Portables A Money-Making Line for the Aggressive Retail Merchant WHAT is the market for portables. Reports of retailers and wholesalers indicate that there is a profitable field for sales of portable phonographs in every city, town and hamlet throughout the country. From a small adjunct to the talking machine business these instruments have now taken their place in the first rank of products that bring profits to the retailer. The swelling production reported by the manufacturers and expanded sales volumes of wholesalers indicate that there is growing realization of this among dealers. Cash Is the Vital Retail Need The average talking machine merchant, in most cases, suffers from lack of cash, brought about by long-term selling, waiting very often a year or more before he receives the final few payments on a sale. Consider, too, that these last payments represent the profit on the transaction. The retailer must pay for his merchandise in the usual thirty days, this period being extended, of course, by giving notes. However, in view of the fact that the bulk of the dealer's sales is on the instalment plan, the time comes when every penny of capital is thoroughly tied up in outstanding accounts. This is a serious condition. What is the dealer to do? Should he refuse to sell except on a cash basis until he collects enough money to pay his obligations, so that his credit will again be good? This is exactly what some dealers are doing, but competition is keen and people expect the accommodation of buying on instalments. If one dealer refuses this favor a competitor will be glad to make the sale on the deferred payment plan. Happily, there is another alternative and that is to strongly get behind lines that will bring in as much cash as possible. The portable phonograph not only is easy to sell, but, most important, it brings in the much-needed cash. Sales of records to purchasers of these instruments also keep the cash rolling in, thus making it possible for the dealer to do a greater volume of instalment business on the larger items and providing for a healthy expansion. Portable Sales on "Main Street" Within easy commuting distance of New York City, in New Rochelle, a retail store, which is the average type, because of the character of its clientele, is finding the portable market worthy of exploitation. This company, one of the most progressive retail concerns in Westchester County, sold in the past twelve months a total of approximately 500 portables, all cash sales, with an average record sale at the time of the purchase of the instrument of four recordings. This achievement is all the more remarkable because this concern is faced by more-than-average competition. Many New Ro chelle residents make their purchases in New York, the local dealers losing much potential business as a consequence. Profits Versus Portables All the argument or theory in the world pales beside the actual experiences of dealers who are finding the portable field a rich one. For example, there is a dealer on Fifth avenue, probably the most exclusive house in the world dedicated to merchandising phonographs, records and radio, located on the world's richest shopping street. The proprietor of this concern is authority for the statement that upwards of three hundred and fifty portables were sold by his establishment during the past year. The old argument that only the poor buy portables does not hold good here, because the clients of this store represent the wealthiest people throughout the country. Who buys portables from this exclusive shop? Well, there are the people who go abroad. A good proportion of these three hundred and fifty portables last year were sent to travelers aboard various steamships. Then there are hotels. Many visitors to New York last year purchased portable phonographs from this retail house. The balance of sales was largely made up of shipments to private schools and the Summer camps and homes of wealthy people. {Continued on page 11) New Line of OUTING Portable Phonographs Latest Offering by the Makers of Nyacco Products New Baby Outing $12.00 List New Junior Outing $15.00 List Jobbers — Write for Special Quantity Discount New Senior Outing $25.00 List NEW YORK ALBUM & CARD CO., Inc. Established 1907 64*68 Wooster Street, New York 4