The Film Daily (1936)

THE -22H DAILV Saturday, Mar. 28, 1936 The Old Story Of Economizing By Paying A Little More (Continued from Page 5) coupled with local dealer representation is of value in times of distress and emergency. After all, it is the dealer you know and through whom you buy who has the responsibility and is therefore entitled to make a legitimate margin of profit for the preservation of his business to render you the service you are rightfully entitled to receive today, and tomorrow. The proof of economizing by paying a little more and the devastating effect of chiseling upon quality and service may be readily determined. As an example: assuming that an item of equipment which is infrequently sold is priced at $90, and the discount received by the distributor from the manufacturer is thirty per cent. His cost would be $63, and the gross margin of profit without deductions for overhead and service would be $27, or a gross margin of thirty per cent on the selling price. With an average overhead of twenty per cent, this gross margin allows only a narrow differential of profit and does not take into consideration many items of expense and losses. It therefore should be averaged at a lower level. Assuming that this quality product is sold at a cut of fifteen per cent, the selling price then becomes $76.50. The dealer's cost, however, remains at $63 and the resultant profit has been reduced by fifty per cent or to $13.50 and the profit on the selling price to the distributor becomes approximately seventeen per cent gross or below his cost of doing business. To make the same dollar profit, at a reduced price, it would be necessary for the seller in this case to dispose of 100 per cent more merchandise to make $27. At the same time his investment in merchandise would increase 100 per cent. The cost of doing double the volume would increase his overhead to the point where the gross profit would make the maintenance of such a policy impossible — even for a loss leader item. Therefore, do not expect more than a dollar's value received for every dollar you invest, but see to it that you get your dollar's worth and that you do business with reputable distributors known for the quality of the merchandise they handle, their service and who have one price policy to all. They will be there when you need them for an adjustment or service. It is sound economics for the exhibitor and manufacturer to maintain the dealer's position in this trade. Detroit Notes A gift of complete projection equipment is being given to the St. Joseph's Sanitarium at Mount Clemens, Mich., by a group of 38 theater men, headed by J. E. Flynn, MG-M district manager. A gas bomb drove away thieves who attempted to loot the safe of Al Ruttenberg's Iris Theater recently. Gus Greening, veteran Theater manager, is operating the Chandler Theater for the new owners, Thomas D. Moule and David Newman. Harlan Starr, head of the Gaumont-British Exchange, has added Peggy Fisher to the office staff. "The Great Ziegfeld" opens April 12 at the Cass Theater, the first motion picture ever to play this legitimate house since the days of silents. Plans to open the Broadway-Capitol Theater by merchants along Broadway have been temporarily "postponed". Several of the probable sponsors have been in Florida and California and no agreement was possible until their return. A veteran theater man would operate the house for them under the plan. New plans for a theater to seat 1,400, as a de luxe colored house, have been announced by Max Heine and Gus Coplan, who opened the Lafayette for a few days last winter. The new project would take over the Detroit Stadium. All educational pictures, features and shorts, are to be reviewed by the censors here, with the object of grading them according to educational value. Censor Joseph Kollar is preparing a complete index of such pictures for the past two years, and will use it for promotional work among schools and other civic organizations. Kollar is also planning work on visual education for the Police Department. Cancel Relief Show Boston — Lack of public support was given as the reason for postponing midnight show slated tonight for flood relief. Cancellation followed unsuccessful effort to secure talent and permission from municipal authorities to permit the shows to run early Sunday morning. Isis, Ft. Worth, Opens Fort Worth, Tex.— The New Isis theater, which has been under construction for past three months, has opened. L. C. Tidball is manager. House, which is modernistic, in black and white, seats about 1000. « « EQUIPMENT FIELD NOTES » » (Continued f> terest to exhibitors, producers and others in need of lighting equipment. One is a condensed catalogue of lighting equipment for the theater, motion picture, universities, schools and hotels; one is devoted to Lekolites by Century, while the third is a pendant to the first. New York — Mogull Bros., New York, is out with the sixth edition of its catalogue of 16mm. silent motion picture films, and catalogue 10A devoted to motion picture and photographic cameras, projectors and accessories. Detroit — Plasher Neon Sign Co. has moved to a new building at Russell and Milwaukee Ave., taking over larger quarters. Cleveland — Max Shenker, for many years local representative for the Vendola Vending machine, is now representing the Berlo Vending machine of Philadelphia. Cleveland — Ray Cudmore, manager of the Superior Theater Supply Co. has taken on the sales agency of the Airate Fan, cooling and ventilating system manufactured by Air Conditioning, Inc. of Cleveland. Installation has been made at the local Marvel Theater. Oklahoma City— The H. & L. Theater Operating Co., of Webb City, om Page 5) Mo., announces its new plan whereby theaters can be remodeled on the pay-so-much-a-month plan, and with a two-year maximum in which to make the last payment. Detroit — George McArthur of McArthur Theater Equipment Co. has sold a complete outfit of Motiograph Equipment to the Ford Motor Co. for the new rotunda building, a theater which will show the operations of the Ford industry to visitors. This also includes the Dalite seamless screen, Brenkert lamps, and complete accessories, one of the largest orders recently sold in this territory. The building is a replica of the gear-shaped structure familiar to visitors at the Century of Progress, housing the Ford exhibit. Detroit — Zephyr marquees are to be distributed in this territory by National Theater Supply Co. Cincinnati — Tom Stallings, National Theater Supply, is confined to his home with a severe case of grippe. Salt Lake City— The Service Theater Supply Co. equipped the newly enlarged Liberty Theater at Tremonton, Utah, which has opened recently. American Seating Co. seats were installed therein. RENTAL SERVICE VALANCES FLAGS & BANNERS MORRIS LIBERMAN (New Address) 320 West 46th Street Tel. LOngcxcre 5-4610