Radio and television today (Jan-Dec 1938)

York. "Any industry that so functions as to make it impossible for retailers to profit from the sale of its products, is doomed to failure. Manufacturers have shown an utter disregard for this condition and have thus been parties to the destruction of the best efforts of the trade. Public confidence and trust in radio as a business and in the men engaged therein has been destroyed by the selfish greed of certain factors. "Complaint, criticism and resolving will never cure the condition. The conflicting groups will not get together on such a platform to affect a cure-all because of a lack of mutual trust. "A common ground of a new nature must be found. Something that will engage public interest and which will be free of personal conflict between groups, something that will benefit all. Upon that as a foundation of constructive joint effort, a new spirit can be created that will bring about harmony of action to rebuild the industry along sound lines. "Five point plan" "There are five major elements interested in radio: 1 — Broadcasters and program sponsors, 2 — Public utilities, 3 — Radio manufacturers. "A little hand shall lead them" to push-button tuning — Master Krumm of Sentinel tests his father's photographic skill. 4 — Radio distributors, 5 — Radio retailers and servicemen. "I propose a revival of the plan presented to the Industry in 1934, then approved unanimously by the boards of directors of the national associations of radio manufacturers and radio wholesalers. That plan known as the 'Five-Point Plan for Revitalization of the Radio Industry,' can well be brought up to date, revamped to suit present conditions, and adjusted to satisfy all elements and factors. It can be made the vehicle for rebuilding this grand business to greater heights than ever known and to restore public respect and confidence in radio and in the people in the industry. "Without some such all enveloping movement, all segregated efforts will go for naught because the destruction has already gone too far to be reversed by anything but a tremendous effort engaged in simultaneously by all." Hot turnover "The major answer to the question of what makes a prosperous retail radio business is still the same as ever," declares Harry Boyd Brown, Philco merchandising manager. "And this one answer, to a very large degree, remedies those developments which hurt the industry. For the retail radio dealer it simply amounts to stocking that radio merchandise which has the widest public acceptance and which offers the greatest value for the money — and then stocking nothing else, thereby getting the necessary speed in turnover. This sounds like a simple, old-fashioned formula, but it's as true now as it ever was. "If the radio dealer concentrates on hot merchandise he keeps his investment down, gets fast turnover, and makes a satisfactory profit. Sell old customers If the radio dealer will vigorously sell, that will provide the solution of most of the difficulties the trade is experiencing, comments Ross L. Siragusa, president of Continental Radio & Television Corp., Chicago. Every survey made of American homes has shown that radio sets now in use are on the average three to four years old and need replacing. If the radio man will energetically follow up his old accounts of a few years before, he will find a lot of sales awaiting him. Meanwhile he should be cautious in his buying, limiting his commitments to his needs, so as not to load his store up with needless in FOR LOCAL LISTENING! RCA Victor launches a new trend with its Symphony model. Designed for nearby stations only, with emphasis on tone. No distance sensitvity; no short-waves. Push buttons; no dial. ventory. Six to four weeks commitments should be the limit — for, the distributor can well gamble on two to three weeks, and the factory on the balance. If the dealer will buy as he needs, and sell hard every hour in the day, radio's troubles will be at end. Controlling Volumes have been written on the troubles of radio distribution, and volumes more undoubtedly will be written before the complete solution to the problem is found. The situation is a complex one, requiring much patient study and effort. Yet when the salient points of the present trade dilemma are all analyzed, it appears that two principles set down on this page among the Fifteen Planks, have, after all, a controlling influence on present radio-trade picture. First comes intelligent control of production, by the manufacturers, based on knowledge of purchasing power for the radio merchandise Involved. Selling will sell Second comes the matter of even more vigorous selling by the radio trade, to move the merchandise already in store or warehouse. To this end, all the combined arts of advertising, window display, store arrangement, telephone canvassing and home demonstrations must be marshaled. Selling will sell. And the radio recession has no terrors for the radio man who is "eternally at it" selling radios — early and late, hour after hour, calling, selling, demonstrating, closing. Selling will sell! Radio Today