The talking machine world (July-Dec 1928)

$80,000 ADIO ALES Volume Rolled Up by J. R. Reed Music Co., Austin, Tex., by Efficient Merchandising By B. C. Reber DESPITE the fact that the sale of radio sets has shown an enormous increase during the past year, there are many dealers who are still complaining about the lack of co-operation from manufacturers and wholesalers, while others are reaping big profits and making many friends and customers. The difference in these is apparent. One sits back waiting for the business, while the other goes out and gets it. One is content to do a volume of business sufficient to get by, while the other is constantly seeking more business, more volume and more profit. It is in this latter class that the radio department of the J. R. Reed Music Co., of Austin, Tex., should be placed. During the past two years the business of this department has increased by leaps and bounds. Total sales for the current year will reach close to $80,000, more than double those of last year. How this is accomplished is told by Newt Brunson, department manager. Reorganizes Radio Department "During the past two years, or since we began to give greater attention to the sale of radio sets, we have shown an enormous increase in our sales in this department. Two years ago we were handling only one line, and of that we only carried a few sets on hand. Then we began to see the possibilities for more business in this line of mer Smbbbi chandise. We realized that radio was not a fad nor a novelty, but something concrete and permanent that would earn and hold a place in the musical world. "We reorganized our radio department, and I was given full charge. Heretofore our business had been handled under one head; the men who sold pianos also sold phonographs, radio sets or musical instruments. Now we realized that the time had arrived when we should departmentize our business and give more detailed attention to each line; that each department should have a manager and a crew who would devote their entire efforts to one line of merchandise and push it hard. "In looking over the field we found that some of our prospects had a preference for one make, while others preferred another. So in order to take care of all this business we added another line. We now have three, and we find that we are doing an excellent business in each. Selecting New Lines "In selecting a new line I should like to stress the importance of thoroughly looking up the record of the manufacturer before entering into an agreement. Not only must this manufacturer produce a good line of radio receiving sets, but he must have a complete line to offer to the trade; 3 line that will have a set for every purse; a line that will bring in good returns without a service man on hand all the time. Such a line is profitable to handle. "Then, in addition to having a complete line to fill any demand, he must have a well-planned sales and advertising campaign with which to assist the dealer in the sale and distribution of these sets. The name of a manufacturer before the public in magazines, newspapers or on billboards has a powerful effect oninfluencing the customer to decide. A name that is constantly before the public has half sold the merchandise, and in a great many instances it is this constant advertising that will influence the prospect to come into the store and ask for a demonstration. For that reason a good line of merchandise, backed by a strong, well-planned sales and advertising campaign, practically assures the dealer of success in his sales. Efficient Sales Force Necessary "After he has selected the line of merchandise 77* VERY phase of retail merchandising oi radio ■Lj receiving sets and accessories is carefully planned by this live concern. From the start oi selection oi merchandise to the wind up oi service aiter the sale has been made, the Reed Co. has developed deiinite policies. How consumer satisiaction is careiully built up to the end that repeat business may be enjoyed is described by Newt Brunson, who has been with the radio department irom its very beginning and who has made a study oi the merchandising iactors involved in the radio retail merchandising Held he is going to handle, he must organize an efficient sales force who will take advantage of the dealer helps brought out by the manufacturer. He must bring together a group of men who will get out and work. Men who have confidence in their product and in their firm. Men who know their merchandise, and can get the prospect as enthused over it as they are. "With his line of merchandise selected and his sales organization intact, the next step is to give these salesmen local support through local newspaper and billboard advertising. We are consistent advertisers, and I will state right here that we have never regretted a single penny we have spent for advertising, for we know that it is this keeping the firm name before the public that has been responsible for a large part of our success. Make Use of Dealer Helps "We further carry out the sales effort by arranging attractive window displays. We make use of all the dealer helps that are brought out by the manufacturer. Some of these are placed in the window, others are used in the store, and the direct-by-mail literature is sent out each month as another means of constantly keeping the public aware of our firm and our radio sets. "Following this, we have inaugurated a service department that is parallel with any in the country. It may not be the largest, and it may not be the most complete, but it is the most efficient. In the first place we employed an expert in radio repair work and engineering. We had heard quite a little about these experts, 26 so we took plenty of time in looking up the record of the man we employed and made sure that he was competent and reliable. "The service department inspects everv receiving set as soon as it comes into the store. While we know that every precaution is taken by the manufacturer to make sure that these sets are in good condition when they leave the factory, because they have a lot of sensitive parts and are often shipped a great distance, we •check each one thoroughly to assure ourselves that it is in good working order before it goes out on the floor of our establishment. Service That Builds Consumer Satisfaction "Occasionally we will have complaints come in when a set has not been in service very long. When such a thing occurs the service man immediately goes to the home where that set has been installed and makes a thorough inspection not only of the set but of the wiring, the home and the neighborhood. In his report he sets down what trouble was found and what steps were taken to remedy it permanently. "His report is filed one week ahead, and one week from that date, if we have not heard from the customer, we call up over the telephone and make sure that the set is giving perfect satisfaction. If the customer is not just satisfied with the reception that is coming in, we make another inspection, often going out to the home in the evening and tuning in while the family is at home to assure ourselves that they known how to properly tune in the receiving set to get the best broadcast returns. "We find that many people are not getting full value from their sets because they do not understand how to tune in properly. A few moments spent in showing them how this is done will often turn a dissatisfied customer into a booster, and will result in more business. "Since we are in a university town we capitalize this by reporting all important games, sporting events and other university topics. At times professors from the university will broadcast an interesting talk over the radio, or some musical club will put on an entertainment. As this is all of local interest, we use every effort to capitalize on it. We have a bulletin board on which we announce what is going to be broadcast locally during the day or the week, and this keeps up interest and results in many sales. "We make a large number of friends, and they are of great help to us in running down prospects and making sales. We keep them thinking that we could never do the business without their interest. This appeals to their vanity, and they help us the more. We never pass up an opportunity for getting more business. We are constantly on the alert for a sale. And in this manner we have been able to more than double our sales during the current year."