The talking machine world (Jan-Dec 1914)

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THE TALKING MACHINE WORLD. 11 Whatever business the Columbia "Favorite" at $50 is too expensive to meet, can certainly be met by the Columbia "Jewel" at $35. You make a good profit on either and satisfy your customer in the bargain. {Write for "Music Money," a book "full of nieat" for those dealers interested in quick and frequent turnover of capital.) Columbia Graphophone Company Woo I worth Building, New York PRICE CUTTING KILLING THE TRADE IN ITALY. Interesting Review of Talking Machine Situation in Italy by F. Passadoro, General Manager of Columbia Co.'s Italian Business — Frice-Cutti ng Discouraging Legitimate Dealers — Horn Machines in Great Favor in That Country — Branch in Rome. "The most serious draw-back to the development of the talking machine business in Italy is the terrific price cutting which is indulged in by the great majority of dealers in the country," said F. Passadoro, general manager of the Columbia Graphophone Co.'s Italian business, with headquarters at Milan, Italy. Mr. Passadoro sailed for Europe May 9th, on the steamer "Olympic," after a three week's stay in this country, during which he spent considerable time at the company's factories in Bridgeport, Conn. Mr. Passadoro has been connected with the talking machine industry for more than a score of years and is well acquainted with every detail of talking machine merchandising. "As a result of (his pernicious price-cutting," continued Mr. Passadoro, "we are losing many of our best types of dealers who prefer to place their investments in other lines of business, where they need not indulge in price-cutting wars and continually lose money. Price-cutting is the sole reason for the Italian talking machine dealer's failure to show any profits in his business. There are very few dealers, indeed, in our country who are making any money out of their business, and all because of their failure to maintain fixed prices on their products. They have the market and they have the product, but their lack of business foresight is driving many of them to ruin or out' of the talking machine business. "We ar.e doing our utmost to convince the dealers that the one-price method of merchandising machines and records is their only salvation, if they wish to show a profit at the end of their year's work. We are handicapped, however, by the fact that we cannot compel the dealers by law to maintain a fixed price on any of our products. We have no association, and there is no concerted action in this direction, but at the present time several of the larger and more responsible companies, including ourselves, have in mind a co-operative plan whereby we can present the oneprice doctrine to the dealer in an impressive and convincing way which may have the desired effect. There are only about 450 dealers in the entire country of Italy as a result of the continual kniving of prices, and many of the more successful of these merchants will retire from business in the near future, if conditions do not improve. "Notwithstanding these handicaps, however, we closed in 1913 a very satisfactory year, and showed 40 per cent, increase over 1912 business. This increase was doubly gratifying in view of the general industrial depression of 1913, and the scarcity of money. With all the vast business that we and the other companies have closed in the past, we have just began to scratch the surface of the talking machine possibilities in Italy. Our country is industrially improving steadily and consistently, and with this improvement of business conditions, the field for talking machine development will increase in proportion. "Italy, as is well known throughout the world, is an intensely musical country. Its inhabitants love and appreciate the better class of music, and this is well evidenced by the fact that the great majority of our record business consists of grand opera and vocal selections. It is a peculiar feature of our record business that we sell practically the same selections year after year. For 20 years I have known a large number of records that maintain a high average of annual sales, and will probably never lose the affection of the public. We differ radically from the American music-loving public, for with us there are no selections that score ''hits' one month and are practically 'dead' the next. The Italian talking machine dealer is, therefore, never in the position of having considerable dead stock on his hands, as his records sell year in and year out. This was illustrated when we cleaned out our cylinder record stock several years since; for, out of a total of more than 70,000 records, there were only 60 records dead stock, and these were all of. one selection. "Hornless machines are just beginning to make some impression in Italy, although this impression is not yet of any particular depth. Personally I believe that the horn machine will never die in Italy, as it is firmly entrenched with the musical public. There is a certain form of reproduction possible with the horn machine and not with the hornless that is thoroughly appreciated by the Italian public, who believe the ideal machine is one that is equipped with a wooden horn. "Over 80 per cent, of our business is closed with the poorer classes of people in our country. The laboring folk are passionately fond of good music, and the talking machine offers them the cheapest and best possible solution to gratify this love for music. The favorite method of merchandising machines and records in Italy is by means of the special outfits. These outfits, which consist of a machine, records and needles, are offered at various prices, and the most popular one at the present time is the. outfit which retails at $29. This outfit consists of a $15 machine, $14 worth of records and 300 needles, and is meeting with a ready sale throughout Italy. "We have established dealers throughout the country, and in addition maintain a large distributing branch at Rome, with our executive offices at Milan. We also have a recording plant at the latter city which is kept busy all the year round. The outlook for this year is very bright, and I see no reason why our business in 1914 should not show a greater increase over 1913 than the 40 per cent, gain that we registered last year." LIVELY BUSINESS IN BUFFALO. Prominent Makes of Machines in Strong Demand in That City According to Reports from Dealers — All Makes Popular. H. A. Yerkes, manager of the wholesale department of the Columbia Co,., returned to his desk last week after a short trip through New England. Mr. Yerkes was well pleased with general conditions in this territory (Special tc, The Talkine Machine WnrW 1 Buffalo, N. Y., May 2.— The advent of modern dances into, the talking machine world has enlivened the trade considerably here in the last few weeks, according to reports of managers of the various stores. There has never been such a rush for dance records as has prevailed during the last few weeks, it is said, and there promises to be a bigger trade than ever this year. The Victrolas are said to be selling rapidly and establishing records for sales. W. J. Bruehl, manager of the Neal, Clark & Neal Co., talking machine department, declared the Victrola and the Victor machines are at this time witnessing the biggest and most successful sales in their history. The Columbia is also establishing records for sales and endorsements. The Buffalo branch of the Columbia Co. reports a most remarkable sales record during the past month. According to the manager of the store the Columbia branch in Buffalo has never before done such a good and steady business. The Edison machines are also in the limelight and are doing better than holding their own. The Loud Piano Co., which handles this line, is elated over the sales during the past month. "Going good" is the way Mr. Loud put it. Write today for our new catalogue giving you rock bottom prices of our specialties. Springs for any kind of Talking Machines No doubt you will find it interesting. IliBii EMIL RIEDEL Sachsische Sagen u. FederstahlwarenFabrik. Chemnitz-Gablenz, P. 0. Box 10, Germany