Television digest with electronic reports (Jan-Dec 1952)

FACTORY INVENTORY & OUTPUT WAY DOWN: Inventory drop of some 50,000 TV sets was very pleasant news to TV manufacturers this week, as RTMA began compiling its own statistical data under new dept, director W.F.E. Long. Last Haskins & Sells audit of 1951 put figure at 206,741 as of Dec. 28, whereas first RTMA report of 1952 says 176,857 as of Jan. 4. Thus "normalcy" has at long last been achieved, for that figure is about same as mid-February 1951 (Vol. 7:19) — and it can be presumed that simple prudence, if not materials shortages, will now keep the manufacturers from going up again to the dangerous 768,766 peak of last summer. For first 1952 statistical week, ending Jan. 4, TV output was low again — only 69 . 198 units — though up from Dec. 28 holiday week's mere 14,244. The latter figure, incidentally, brought 1951 total to 5,251,154 (subject to revision). Week's radio output was 95,499, of which 45,049 were home sets, 8893 portables, 3980 clock (new category), 35,577 auto. Radio inventory was 283,545. Dec. 28 week's radios totaled 76,476, bringing year's grand total to 12,544,539, of which 6,679,509 were home, 1,330,733 portable, 4,534,297 auto (subject to revision). THE TAX-WARRANTY PRICING HEADACHE: You came away from the TV exhibits at Chicago's Furniture and Merchandise Marts this week with an impression of great confusion — confusion over prices, excise taxes, and warranties. That confusion grows mainly out of recent OPS ruling against higher warranty charges (Vol. 7:51 & 8:1). Worse confounded, the manufacturers seemed to be meeting their list-price problem in these different ways: (1) by including both tax & warranty in list, as do RCA and others; (2) by including warranty in list but quoting tax separately, as do Admiral, Philco and Motorola; (3) by including tax but quoting warranty separately, as do many smaller companies; (4) by quoting tax & warranty additionally, as do a few companies. Because of uncertainties still prevailing, rumors persisted during early days of the marts that announced prices of the major companies wouldn't stick — but there was no verification of this, so far as we could learn. It was obvious that checkers were out canvassing one another's price and tax-warranty methods all week. The smaller companies seemed particularly puzzled about what to do. Some said they would wait awhile, possibly until after the show, before announcing all prices. Among these were CBS-Columbia, Olympic, Tele-tone. [For announced prices to date, see Vol. 7:52 & Vol. 8:1; also the Topics & Trends columns in this issue.] * * * * Main objection to quoting tax extra is that it's 10% of manufacturer's sale price, so that asking customer for such sum is giveaway of wholesale-retail markups. But those who are doing it this way point out that automobile industry has long done so without any untoward results — though fact is tax item added to auto buyer's bills usually lumps in local taxes, accessory taxes, etc. Most new sets and repriced old ones are listed at prices comparable with last year's, some a bit lower. Motorola and DuMont had lower prices for brand new lines (Vol. 8:1) but reductions were attributed more to engineering and production economies than to an overall trend to lower prices. Low-end models of major set makers were generally around $200 for 17-in. table models, and move toward basic $200 tag for 20-in. tables was also indicated by a few smaller companies, notably Trav-Ler and CBS-Columbia. Latter, however, withdrew $200 price on 20-in. after full-page trade ads heralding it, saying new prices would be set early next week. * * * * A sort of post-holiday sluggishness, to say nothing of uneasiness, seems to have descended on the trade, judging from talks with many sales managers at the 9