Radio today (Sept 1935-Dec 1936)

TOO MANY PARTS JOBBERS! — manufacturers can correct situation ; trade requirements — widespread abuses result from indiscriminate appointments * WHO is to blame for the present condition where some 2,500 concerns now claim to be radio-parts wholesalers and parts jobbers? Who is to blame for the resulting demoralization, when concerns buy as wholesalers and sell as retailers, passing along the unearned retail margin to the public as a price-cut? And this situation in which the replacement parts business finds itself is not getting any better. Instead it is rapidly getting worse. "Growing pains" can be assigned as one underlying reason for present conditions. Stabilization is still far off. Manufacturers' representatives appoint unnecessarily numerous "distributors." Other manufacturers in the parts-replacement field have not made up their minds as to what lines they are going to produce or to feature. Manufacturers of one type of product note with envy the success of other manufacturers in separate but related fields. "The grass always looks greener in the field across the way." And so each year manufacturers add items, such as resistors, condensers, volume controls, where formerly the same concern made only one of these lines. At once the sales manager of such a factory is called upon to produce results for the new lines. And if he cannot get results in a territory, it is only natural to open up new distributing houses, even at the expense of the present jobbers' set-up. Hits legitimate jobber In turn this activity on the part of the replacement maker has affected the legitimate radio jobber. Not knowing what new lines the parts manufacturer is going to add, the jobber has been forced to hold off from majoring on any particular line of parts. Naturally, self-preservation has been the keynote; key jobbers have tried to starve their competitors by gobbling up all available lines. When a jobber tries to starve a new competitor in this manner, the newcomer then goes out to see what type of new merchandise he can obtain. Usually he falls into the hands of a manufacturer who has no policy. Such a product may be of questionable quality, and sold chiefly on a price basis. In turn this upsets the market, and forces the legitimate jobber to take on questionable items to meet such competition. And from there the contagion spreads to the dealer and serviceman. The serviceman who might have been taught a lesson of quality in replacement products is instead shown that "any kind" of replacement merchandise will do the job for him. Then large dealers or service organizations, seeing this lack of jobbers' interest in any one line, have themselves gone into the jobbing business. Some of these dealer-jobbers have rendered a real service, because they have pushed quality lines. On the other hand, in regions where real jobbers have gotten behind good lines, carried adequate stocks and given real service, such conditions do not exist. "Mail order' wholesalers "Mail-order jobbers," operating nationally and issuing bulky catalogs, introduce another complexity into the parts-distribution picture. Many such mail-order houses send out catalogs to vast mailing lists, which include besides servicemen and dealers, thousands of amateurs and the very laymen who make up the customers of the retail trade. To these members of the public are offered not only replacement parts, but also radio receivers, tubes and other equipment at prices well down into the wholesale bracket. Many legitimate wholesalers declare that these mail-order firms add confusion to the wholesale distribution of parts, by "selling to anybody," without identification, at dealer prices or lower. Such mail order outlets take business away from the retailers themselves, their own customers — for as their wholesale-by-mail business decreases, they set up retail stores of their own, and thus chains of radio shops are established, in competition with individual retailers. Others feel that these mail-order houses have a proper place in the radio business, in handling parts that are technical in character and are not purchased by the public, and that their competition cannot injure the legitimate jobber who carries a complete stock of parts, has competent technical help at the counter and serves the local radio trade adequately. It is pointed out that there are still many sections of the country which are not really served adequately by local jobbers, and that eventually the field of the mail-order jobbers will be concentrated in these sections. The "truck jobber" The "wagon jobber" or wholesaler selling by truck has lately come to have an important place in the partsdistribution picture. Such a wholesaler, making spot deliveries to servicemen and dealers, right from his truck, represents a modern trend that has some distinct merits of practicality and usefulness. Such "wagonjobbers" get the goods to their customers in the trade when they need it. Consequently some of the livest jobbers in the country have added truck selling to their store selling, with marked advantages to their customers and themselves. But all hands agree that the problem of the parts jobber who demands and obtains discounts for which he performs no service, is not alone a problem of his competitors, the established distributors in radio. The new horde of parts distributors bring confusion to manufacturers who are seeking sound distribution ; they bring also unfair competition to retailers and servicemen whom they fight on price-levels where the legitimate retailer, observing ethical standards, finds himself helpless. Every group involved The manufacturer has a right to expect certain things of his distributor, and should see that these obligations are carried out. It is the responsibility of the distributor to push the manufacturer's lines — but not "hog" the territory, set up competition, nor divide his effort among competitive products. Also it is the distributor's responsibility to cover his territory adequately, either with salesmen or with a catalog. Further, it is desirable that there be a physical separation of the wholesale and retail ends of the business. The distributor must do his part of the job completely and competently. The radio-parts manufacturer has a part to perform in protecting his jobbers against other distributors in the same territory. On both sides the distribution contract must be carried out conscientiously and fully. 46 Radio Today