Radio today (Sept 1935-Dec 1936)

housing, investment, interest, insurance, and handling may be within reason, and new developments, or a sudden shift in consumer preference may not require liquidation at a loss. 1. Annual National Eadio Sales This chart tells a mighty interesting and important story. In 1929 radio sales reached a peak of $600,000,000.00 and fell to about $130,000,000.00 in 1932. That is a loss of 78%. It is staggering. But look at the sales curve turn sharply upward in 1933 and 1934 — while most business is making but small gains. That indicates the degree with which the replacement demand — and the "second'' set need — has set in. In 1934 we actually sold more units than 1928— and only 10% less than 1929. With metal tubes— all-wave— and higher fidelity we should sell more units in 1935 than in 1929. All of the trends indicated on this chart breed encouragement — even enthusiastic optimism. With a total of some 25,000,000 radio sets in use — and a normal replacement cycle of 5 years — it is indicated that normal replacement business should be 4,400,000 radio — plus 500,000 new families yearly — and we actually look forward to a normal sale of more units than our previous peak. What a business to be in. If our normal business settles down to some 4,900,000 radio per year — it becomes quite apparont that our dollar volume — and that is what we "pay off" on — will be vitally affected by the "average unit price." Every dealer can lend his efforts in his own interests as well as the industry's — by advertising — displaying and selling — ■ the highest quality, highest priced radio models. 2. Best Selling Price Ranges This chart, when compared with the Sales Chart, plainly shows how pro ou I J v Averaqe Unib Prices / U \s in dollars • • fcj s l~60 o J OU t5 / v\ * * ^0 / \ % Number «ji aeia j>oiu in ,* >. _ hundred thousands,-' f * 05 / % k*1 ' / • yj V 63 Dollar value of sets ^ x 20 in tens of millions •' X 1 5 IU 192fi 1929 1930 1931 1932 1933 1934 1935 Chart No. 1 — How total U.S. radio sales have run, year by year, compiled from Government reports found an effect table models and compacts have had on our industry. They tore down the average unit price and put everyone on his mettle to make a profit — and they weeded out the weak. But they revitalized the industry — perhaps revolutionized it. They broadened the market base greatly, and filled the need of the "personal radio." Table models even overlap the console price demand, too — because it is a fact — that the table model, dollar for dollar, represents a much better radio. Doesn't that chart indicate to you that the public is buying quality — and wants the best it can afford? It does to me — and that is very important in your buying and selling to keep in mind. There is one sour note struck by this chart, too. Notice that the 1935 trend in compact price range has turned down. Many manufacturers — in a mad searcli for sales — have given chain, department and some big radio stores compact radio sets built with low price as the only consideration. When these are consistently advertised — and superlatives are used to describe them — it is natural for the public to believe that a ten-dollar bill will buy a good little radio. That's the power of suggestion. $10 jalopies lOO 90 %K Consoles ^\y^>', 60 ■ 70 60 so — Table Models ^s$; fO tTTTTTT 30 Wo 1 1 1 1 1 mpachs 20 +* *»*, "-UJ4 10 1929 1930 1931 1932 1933 1934 1935 Chart No. 2 — Price ranges of various types of sets A very large number of stores are now selling these sets. The writer has tested dozens and dozens of them — and has yet to see the first one good enough to put his name on. Advertising and selling inferior radio at any price is a very shortsighted policy — if you want to stay in business. The customer certainly cannot be satisfied with a poor radio — and it is a fact purchasers soon forget what they paid — but long remember what they got. Think twice before you buy such radio — and send the customer away having spent half what she should — with a radio that isn't worth half what she did pay. September, 1935 25