Heinl radio business letter (July-Dec 1932)

Record Details:

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The electrical trade is the most important outlet for radios, parts and accessories. Of a total reported sales of these companies, 88.6 per cent went through wholesale establishments of all types in the electrical trade. Wholesale merchants, who account Ied for 64 per cent of the radio business in all trades, handled 62.3 per cent of such business in the electrical trade. The automotive trade was next in importance as an outlet, and wholesale merchants in the hardware and metals trade were third in rank. These three outlets accounted for 96.1 per cent of total sales of radios and equipment, which amounted to about 1600,000,000 in 1929. A basis for comparison of relative saturation of the radio market is set up by the Census Bureau in supplying information by States on the location of wholesale radio specialty houses along with the percentage of families in the States having radios and the total per capita sales at retail in 1929. These facts make possible the establishment of market quotas on a more satisfactory basis than has hitherto been available It is a significant market fact that there is a fairly high degree of correlation apparent between the percentages of families having radio sets and per capita sales at retail. The wholesaling of radio sets and equipment is highly concentrated. New York, Illinois, Pennsylvania, California, Ohio and New Jersey account for nearly 70 per cent of the total volume. New York City is the leading wholesale market with nearly a third of the total volume of the entire country, and is particularly import¬ ant, since many New York City establishments have built up national distribution. Chicago is second in importance, followed by Newark and San Francisco. These four cities handle half the total whole¬ sale radio business in the United States. For wholesale merchants operating costs tend to decline as the size of the business increases, the large-scale establishments showing the lowest costs. Manufacturers* sales branches, however, showed lowest costs in the medium-sized businesses and not for the large-scale concerns. In all instances, the small firms showed the highest cost of doing business. Several interesting correlations have been developed that should prove to be of material benefit to those who wish to improve their methods of distribution radios. Decided advantages, for example, are shown for wholesale merchants covering a sales territory under a 75-mile radius, for with but one exception operating expenses were higher for firms operating over a wider area. The exception may be explained by the fact that the 70 establishments covering a radius of 251 to 500 miles showed the largest average sales per establishment of the entire group. 3