Radio today (Sept 1935-Dec 1936)

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INSTALLMENT SELLING New angles for the dealer on the present time-payment set-up * RADIO dealers throughout the country are facing a new set of circumstances currently important in the matter of time-payments for receivers. With 70 per cent of radio sets being sold on the installment plan, radio men have discovered by this time what credit plan to use, and precisely how to adapt it to the type of patron most often appearing at the credit windows of their stores. But lately there have been developments, nationally speaking, which may give such dealers a clue as to what to expect if they apply for financing from national organizations in this field. C.l.T. back in Finance companies have recently shown an interest in radio again, and have taken steps which would have been unheard of three years ago. Commercial Investment Trust Co., One Park Ave., New York City, has been acting as the time-payment financing organization for eight of the leading radio manufacturers through contracts which have been signed in recent months. These are the makers of the following sets : RCA, Atwater Kent, Stromberg-Carlson, StewartWarner, Grunow, Crosley, Sparton, and Graybar. More recently, CIT announced that it had completed exclusive agreements with the Emerson Radio and Phonograph Corp. and Noblitt-Sparks Industries, Inc., whereby the company will act as official financier for Emerson and Arvin radio dealers and distributors. Under the CIT plan, a comprehensive financing system is offered to retailers through the company's 140 branch offices. The service does not apply to auto radios. CIT headquarters are in New York, Chicago, and San Francisco, but branch offices are functioning in the central cities of all states. Catchy offers Big radio retail outfits in the East are offering a variety of plans in their own credit departments, without a hook-up with the financing companies. Obviously, they are setting the pace for smaller dealers elsewhere, except in cases where the local set-seller must steadfastly adapt his plan to conditions peculiar to his area. What the big fellows are doing about the new groups which are asking for credit makes a profitable study for outlying dealers who will soon find themselves in a similar swim. One retail company will give credit on even the lowest priced set in the store, which happens to be $5.95, other aspects of the matter being satisfactory. Payments as a rule are spread over one year, although a special 18month period can be arranged. Plan is advertised as costing the patron y2 per cent per month, which amounts to Christmas time in a radio dealer's window — a time for spirited promotion of quality sets. an interest charge of 6 per cent per year. Feature of the arrangement is a 90-day period without interest. At least 5 per cent must be paid down. Company reports that it does 90 per cent of its radio business on this basis. A leading chain asks $5 down, charges no interest whatever, and demands no second payment for 30 days. After that, the payments are as little as $1 weekly. This service is not extended to a buyer of a set priced below $29. Others are asking no money down and $1 weekly but in most cases such terms are not available on sets priced below $20. Seats at the show At this point most time-payment plans are being advertised in terms of the most attractive details, rather than publicizing such captions as "Easy Terms" and "Ask About Our Convenient Payment Plan." In some cases good results have been realized from ads which feature current broadcasts. Features are outlined for the week and the ad concludes : "It costs you only $1 for this array of ringside seats." On this score, dealers can always give special attention to local sport events. Special method of plugging timepayment plans is being used by Stewart-Warner dealers and distributors. Company has arranged for distribution of electrically transcribed 15-minute programs for use of the local station. The discs are first-rate quality, and leave ample time for the dealer to explain his credit plan. To hike volume Whatever the method of plugging, dealers are conveniently keeping in mind that once a customer is credited, it is, under present circumstances, worth while to play up the higherpriced sets more than ever before. The 1936 models have such a list of imposing features that a small monthly payment seems easy to pay for the extraordinary brand of entertainment immediately forthcoming. It is for this reason that a merchant who sells radios exclusively has a certain advantage over the radio merchandiser of a department store. The former can play the air features, which are costing the broadcasters millions every season, directly against the small time payments which he will accept in return for the costliest entertainment in the world. Special appeals can also be made along with credit plans to the householder who may buy a second or third set for the home. 24 Radio Today