The talking machine world (Jan-June 1923)

4 THE TALKING MACHINE WORLD February 15, 1923 iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiy I Use of Proper Collection Methods a Vital f I Necessity of Successful Merchandising \ One of the most vital considerations of the talking machine merchant is the question of collection of instalments. This business is essentially an instalment proposition and as such the prosperity and development of the dealer are largely determined by the terms which are extended to customers and the promptness with which the payments are met. In this phase of the talking machine business there also enters the problem of repossessions. The questions which confront the dealer when a customer has become irregular in meeting the obligations set forth in the contract are vital ones. The most important of these are: When should the machine be taken from the non-paying customer? Should any concessions be made and, if so, how far is the merchant justified in going? Is the repossession of instruments profitable to the dealer? The answer to the first question is a difficult one because local conditions and the relations existing between the customer and the dealer many times exert an influence. It is obvious, of course, that where there is little or no possibility of ever obtaining the money for the machine the sooner the dealer regains possession the better it will be for him. A comparatively new instrument is more easily resold than one which has been used and perhaps mishandled for eight months or a year. The second question is the one in which the problem of local conditions enters. It can be best answered by the statement of R. M. Whitelaw, manager of the Ideal Music Co., Newark, N. J., who has given the subject considerable thought and evolved a plan which he is using with a great deal of success. "The repossession of instruments can be accomplished without hard feelings and antagonism," says Mr. Whitelaw. "When a customer becomes several weeks in arrears with payments we send a courteous letter, calling attention to the fact that the account has been overlooked. If this does not bring in the money a personal visit is made to the home of the customer and the matter is threshed out. Often we have found that people are willing to pay and are most anxious to retain the instrument, but because of emergencies which have arisen since the machine was purchased payments cannot be made for some time. Where we find conditions such as this iiiiiiiillllillllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllllH^ we explain to the customer how we are situated and if it is impossible to get even a small payment, a fraction of what is due, we have an understanding with the customer by which we repossess the instrument and the patron has the option of reclaiming same within the next six months. It is not necessary when an instrument is reclaimed to pay all back instalments. The customer rrjerely makes the payment agreed upon at the time of purchase and the instrument is delivered with the understanding that payments will be met regularly. "The beauty of this method is that there are no hard feelings between the customer and the 1 Tactful Handling of J H Many Problems Aris J m i^g from Delinquency g ■ in Meeting Payments M I Will Build Good Will % dealer. In most cases the patron recognizes the fairness of the proceeding and is willing that the dealer hold the machine for six months. Other customers are even eager that the store repossess temporarily because this automatically lifts a load from their minds. They do not worry over meeting these instalments or evading the collection of the account by excuses." Here is something concrete which the dealer can take advantage of. No further analysis is necessary to make clear the advantage of repossessions along the line quoted above over the enemy-making method of simply backing a truck up to the home of the customer and rudely taking the instrument. Is the repossession of the machine profitable to the dealer? Emphatically no. Suppose the dealer sells a machine and repossesses it at the expiration of four months. He polishes it up and sells it for very nearly the original sales illlllllllllllllllllllllillllllllllllllllllllllllllllllllllilllllllllllllllllllP price. Here, of course, he makes a few dollars if he is lucky, and there is an immediate profit, but the merchant who is looking to future prosperity will discount this immediate profit because, in the first place, if he succeeded in selling this slightly used instrument the chances are that a new one could have been sold just as well. In the second place, if his methods of regaining possession of the machine were offensive to the customer he can rest assured that he has made an enemy. It is a practical certainty that a person from , whom a machine has been taken without regard to feelings will never voluntarily make a purchase from that dealer in the future and one' never can tell what the state of the finances of any person, regardless of conditions at present, will be one or two years hence. Furthermore, friends of the antagonistic patron will hear about the matter and the* result probably will be that the patronage of several persons will be lost. And it isn't merely the sale of the machine that has been lost, but repossession necessarily eliminates the possibility of future record sales to the person from whom the instrument has been taken. Take, for example, the man who is employed at a trade and whose work is periodical, being affected by loss of time between jobs, strikes, etc. The chances are that if the dealer is not too hasty and allows the customer of this particular type a little time in an emergency the payments will be made as soon as possible, the debt will be cleared off and the dealer has gained a friend instead of an enemy, and right here there will be no harm in emphasizing the value of good will. While the sale of machines is an important element in the talking machine business, it is by no means the most important. Of equal importance is the steady sale of records and continued patronage depends largely upon good will. Remember, only one machine is sold to a customer, but many records can be sold to each customer when the proper methods are pursued. There is many a slip 'twixt the demonstration and the name to the contract. Many sales are lost by ill-timed talking while a record is being played on the machine being demonstrated. THE TALKING MACHINE'S HELPMATE BIG RECORD SALES Mean More Albums Sold Records have sold well in all sections of the country thus far this year, proving that 1923 is going to be a big year for records. Record Sales Mean Album Sales. Nyacco albums enable you to offer your trade the best albums, in both appearance and construction. They are BOUND to give satisfaction. Order now at the low prices. The Best Interchangeable Leaf Record Album on the Market W rite j or display card — mailed wiihout cost. It will help you sell more Nyacco Albums New York Album & Card Co., Inc. NEW YORK 23-25 Lispenard St. Pacific Coast Representative: Munson Raynor Corp., 643 South Olive Street, Los Angeles, Calif. CHICAGO 415-417 S. Jefferson St