Radio today (Apr-Dec 1939)

tkwttokdimf is m /hi Run your business — or your business will run you — ragged There appears to be no more frequently— or loosely — used word in business today than "merchandising." Just what is this thing we call "merchandising" and what does it mean ? The best answer to that question is : 1. Merchandising is the art of buying and selling wanted merchandise, at a profit, in ever increasing volume, and in a manner calculated always to increase customer good-will. If you study that definition you will find it actually covers almost, every phase of the operation of a retail business, and so — 2. Merchandising means the co-ordination of buying, selling, and operation on a long-range planned basis. MERCHANDISING IS IMPORTANT Before we start to explore the possibilities of merchandising as applied to your radio business, let's see if it is really important. First, Dun and Bradstreet tell us the average life of all businesses in this country is about 5 years, and this includes all those very old, and very large companies, too. Second, we are told that over 80 per cent of all business failures are due to (a) lack of experience, (b) lack of capital, (c) lack of management skill. Third, competent business analysts say that at least 30 per cent of all retail business is not operating at a profit, and is either insolvent or on the verge of insolvency, due to poor merchandising and poor management. Radio Today feels that there is no more important subject for independent retailers today, harassed as they are by a complex business fast becoming more complicated — than merchandising. KNOWING HOW, WHAT. WHEN Let's see just what merchandising involves. 1. Buying — Knowing how to buy the right models at the proper price, in the correct quantity, and at the right time. 2. Selling — Knowing how to locate prospects, convert them into customers, and have customers produce more prospects. 3. Wanted merchandise — Knowing what the customers want, so that you can buy it rather than having to make the customer want what you have bought. 4. At a profit — Knowing the effect on profits, of everything you do, which covers (a) size and effectiveness of your organization, salaries and method of paying salesmen, size and turnover of your stock, trade-ins, discounts, control of expense, efficiency and cost of service division, productivity of advertising and sales promotion methods, effective use of your floor space, accounting, record keeping systems, and the general policies and practices of your business. 5. In ever increasing volume — which is basically, everything which relates to holding your own customers, including new merchandise, store appearance, and personality, reputation for friendliness and fairness, and the entire ramification of advertising and sales promotion methods. 6. In a manner calculated to always increase customer good will. As the word "calculated" indicates, this involves a planned policy of customer satisfaction, together with the follow through to be certain that the practice is always in agreement with the policy. In a broad sense, this covers the entire field of customer relations, but more particularly after the sale has actually been made, it is the fulfillment of all of your promises, both expressed and implied, which you conveyed to the customer in making the sale. (Continued on page 25) ASK YOURSELF THESE SIX QUESTIONS BUYING— Have I right lines, right quantity? SELLING— Do I go to prospects, or make them come to me? WANTED MERCHANDISE— Does my stock turn uniformly? PROFIT— Do I make it, keep it, or throw it away? VOLUME— Is it up or down — and why? GOOD WILL— Do I forget customers after I've sold 'em? 78 RADIO TODAY