The talking machine world (July-Dec 1927)

4b THE TALKING MACHINE WORLD July, 1927 ^ ^3^or dealers ^ M'Jjolesalerspmanufacbirers qfphono^raply' pradiojaoducts^ (Registered in the U. S. Patent Office) PUBLISHED BY EDWARD LYMAN BILL, Inc. President, C. L. Bill; Chairman of the Board, J. B. Spillane; Vice-Presidents, Edward Lyman Bill, Randolph Brown; Treasurer, Raymond Bill; Secretary, E. L. Bill; Assistant Secretary, L. E. Bowers; Assistant Treasurer, Wm. A. Low. RAYMOND BILL, Editor B. B. WILSON, BRAID WHITE, Associate Editors C. R. TIGHE, Managing Editor LEE ROBINSON, Business Manager FRAWK L. AVERY, Circulation Manager Trade Representstlves : Vincent D. Walsh. E. B. Munch, Victor C. Gahdher, V. E. MOYNAHAN, ROYCE CoDY, A. J. NiCKLIN Western Division: Republic Building, 209 So. State Street, Chicago, 111. Telephone. Wabash 5242. Leonard P. Canty, Manager. Boston: John H. Wilson, 324 Washington Street. London, Eng., Office: 68 Milton St. (Fore St.) EC. 2. Oerkenwell 1448. The Talking Machine World has regular correspondents located in all of the principal cities throughout Atnerica. Published the 15th of every month at 420 Lexington Ave., New York SUBSCRIPTION (including postage): United States. Mexico, $2.00 per year; Canada, $3.00; all other countries, $4.00. Single copies, 25 cents. ADVERTISEMENTS: $6.50 per inch, single column, per insertion. Advertising pages, $172.00. On yearly contracts for display space a special discount is allowed. REMITTANCES should be made payable to The Talking Machine World by check or Post Office Money Order. 0^ NOTICE TO ADVERTISERS — Advertising copy should reach this office before the first of each month. By following this rule clients will greatly facilitate work at the publication headquarters. Long Distance Telephone — Number 1760 Lexington Cable Address: "ElbiU," New York NEW YORK, JULY, 1927 Important Publishers^ Announcement Eduard Lyman Bill, Inc., ouners of The Talking Machine ff arid, have recently formed a new company, namely: Federated Business Publications. Inc., to ichich The Talking Machine W orld has been transferred. This transfer does not represent any change in the onning control, or management, or staff of The Talking Machine W orld. The officers of Federated Business Publications, Inc., are as follous: President, Raymond Bill J ice-Pres., J. B. Spillane Vice-Pres., Randolph Broun Sec'y-Treas., Edicard Lyman Bill The executive staff of The Talking Machine W orld continues as set forth in the masthead above. Coincident with the formation of this company, an issue of Cumulative First Preferred Stock of Federated Business Publications, Inc., has been offered to the public through banking channels, and the company has agreed to make application to list this Preferred Stock on the New York Curb Market. This financing has been undertaken for the purpose of expansion, in order to make possible the acquisition of additional publications of a well-established character. Our experience of the past ten years has definitely proved that the group plan of publishing makes possible the production of more influential business papers; in other words, that by publishing magazines covering diverse industries we can produce a more effective trade paper in each particular field. This latest move represents a further step forward in the progress of our organization, and one which will enable us to increase the service rendered to the musicradio industry by The Talking Machine World. Overhead and Its Real Importance WHAT price business? This is a highly important question — ■ in fact, the most important one in many retail establishments — and yet an extensive survey conducted by The Talking Machine World recently among some hundreds of talking machine and radio dealers brought to light the fact that a surprisingly large proportion of them either did not let the question of business costs bother them, or, if they, did give it thought, apparently had little conception of proper methods to be adopted in determining those costs. Accurate figures regarding business overhead may be accepted as the barometer that provides trustworthy information for industry. It shows where losses are occurring and where profits are being made. It acts as a guide in planning expansion and contraction, and altogether is a most necessary factor. It is not enough to figure inventory at the end of the year, check the bank balance and then determine whether or not a profit has been made. What is necessary is that the dealer must know where every dollar of selling expense goes, and whether it is wasted or is producing results. Elsewhere in The Talking Machine World this month appear the results of the survey referred to above, and the dealer who is running his business without some sort of overhead figures might well study those results with exceeding care, for it will mean dollars in his pocket in the future if he profits from the lesson. There are retailers, for instance, who quite frankly accept the discount given by the manufacturers on the product they sell as profit, and charge ofif against that discount such general items as come to mind without any definite idea as to the accuracy of those items. Some there are, with a discount averaging less than 40 per cent, who list their overhead as 40 per cent or more, and then calmly state that they enjoy a net profit of 25 per cent or so.' The figure is ridiculous on the face of it. and the fact that it is really believed by those who oflrer it accounts for the number of retailers in the talking machine and radio fields who declare that the business as a whole is unprofitable. Unless a dealer knows just how much it costs him to run his business, and how much of the entire cost must be charged off for each department, he has no means for determining whether talking machines, records, radio, musical merchandise, or whatnot are being handled properly. One or two dead departments will make an otherwise healthy business appear very ill and cast a reflection on those divisions that are workinor smoothlv. When the overhead figures regarding any one division of the business are unfavorable it does not mean any particular division of the store must be discontinued, but it does mean that thought must be given to ways and means for curtailing or readjusting costs in a manner that will change the records from red ink to black. It is significant that those retailers in the field who are able to supply proper overhead figures are, without exception, successful in the conduct of their enterprises, and they are successful because they are in position to check up on every item and correct unfavorable conditions before they become serious. In contrast is the individual who explained that to furnish overhead figures would mean that he would have to have his books audited. One wonders just how long that condition will exist before the accountants for the receiver will do the auditing for him. It is not far amiss to say that a man's ability as a merchant may be judged in no small measure b}" his understanding of what it costs him to do business. Where Associations Have Made Good NO better proof of the value of trade associations, properly conducted, can be found than in the experiences of the various organizations of radio dealers throughout the country. Although practically all these bodies are local in their scope they have become so numerous and have worked so actively that the effects of their efforts are being reflected on the trade as a whole and to its direct advantage. It is due largely to the associations, for instance, that the great majority of radio retailers have been able to check the free service evil and to put their service departments on a basis that enables them to carry themselves or to show some slight profit. In this connection the Associations not only showed the proper manner