The talking machine world (July-Dec 1924)

38 THE TALKING MACHINE WORLD October 15, 1924 A Discussion of Radio] Selling Problems Max Landay, Head of Landay Bros., Makes Interesting and Direct Statements in Talk Before Popular Science Institute of Standards The following talk on "Radio Sales Problems," delivered recently by Max Landay, president of Landay Bros., Inc., at a luncheon arranged by the Popular Science Institute of Standards held in New York, is of particular interest for the reason that Mr. Landay can be regarded more or less as an authority on the subject, Landay Bros, having been among the pioneers in the talking machine trade and likewise one of the pioneers in the handling of radio receiving apparatus in talking machine stores. Many of his statements will be concurred in heartily by the majority of dealers. — Editor. When Professor Bliss requested me to address the radio manufacturers present at this luncheon on the "Radio Sales Problems" of the music dealer I proceeded to shape my talk in the form of an appeal to radio manufacturers and explain to them the problems of the music dealer that I believe can be solved by the manufacturers of radio apparatus. The Landay stores have been the proving grounds for many sales problems of the music dealer and in the course of about three years of such experimenting we have satisfactorily shaped the proper policies of a chain of radio stores, but there are at present many fallacies in the sales policies of radio manufacturers that are retarding the music dealers' progress. In the course of this short talk I will touch on some of them and explain how the manufacturer can assist the music dealer. 1. Why the Talking Machine Trade Was Slow to Take on Radio: (a) Loyalty to his phonograph business and to the phonograph manufacturer gave him the idea that radio was but a fad and that to put it into his store would merely hurt the phonograph business without in any way helping materially the radio fad. (b) The unsatisfactory performance of radio for about two years after its popular appearance was anything but encouraging to the talking machine dealer, even though he was willing to waive aside his mistaken idea of loyalty to the phonograph business. It seemed to him that in order to sell radio at that time that he would have to employ sales people with technical knowledge of radio in order that he might succeed in keeping the radio sold. (c) The problem of selling radio on the instalment plan was also a great stumbling block for the talking machine dealer. It seemed to him entirely a most precarious undertaking to risk the sale of radio on the instalment plan. The dealer at that time did not appreciate that he could have sold a considerable quantity of radio for cash. His viewpoint on radio at that time was very much prejudiced and for that reason he was slow to take on radio. 2. Why the Music Dealer's Store Is a Logical Outlet for Radio: (a) Good location, well-equipped store interiors and window display. (b) Financial responsibility, thereby giving real buying power. (c) The high type of salesmanship which the talking machine dealer is accustomed to is perhaps more necessary at this time in the sale of radio than any other article of amusement. (d) The increased discount has now encouraged the music dealer to sell radio on the time payment plan. (e) The music dealer's training in the sale of phonographs and other musical instruments has taught him that price-cutting is not at all an essential for business success, that the quality of merchandise and service which he offers to the public is of greater importance and the manufacturer should bear in mind that the music dealers' devotion to this ideal will prove a great help in the development of the radio art as an instrument for home entertainment and education. 3. How to Gain the Talking Machine Dealers' Support: (a) Standardize your products. Avoid the placing of new models on sale without reasonable notice to the dealer or any offer to help him unload his stock before the new models appear or are advertised and to avoid putting out new models more than once a year. (b) Standardization of fair list prices in order to assure the dealer that the public is getting a square deal and therefore no radical change in list price downwards need be anticipated. The manufacturer should bear in mind that the public's confidence becomes very much shaken, when an article advertised at $150 is suddenly reduced to $60. The manufacturer should try to arrange a fair price to begin with and his reduction should be reasonable and in proportion to the savings that accrue from increased production. (c) A discount to the dealer should always be maintained, at a point that will insure him reasonable profit from the amount of service that he renders in connection with the sale r EE 1 Talking Machine Motors ^"GRUBU" THE MARK OF SUPERIOR QUALITY Sole Agents Wanted In All Countries of the World FEINBALJj Aht. (JruonercV Bullinger! WilltCrb3Ch, GERMANY of radio and the expense under which he operates, and if possible the discount to be made, so that it will enable the talking machine dealer to carry his own paper when he sells radio on the instalment plan. I would like to recommend that the same line of discount that he has been accustomed to in the phonograph business should be quoted him on radio products. (d) Source of supply is perhaps the most important item to the dealer. Too many jobbers are handling radio products while the talking machine dealer prefers to buy his radio goods through distributors. The word "jobber" has been used incorrectly in many lines and especially in the radio business, because to my mind the jobber is one who purchases merchandise in job lots and sells it along the same lines and for that reason I believe that the music dealer would prefer to buy from distributors and preferably some concern which understands the music dealer's retail problems, also the dealer's point of view in other matters pertaining to his business, and therefore I recommend to manufacturers this important phase of their selling, that they should place their goods in the hands of men who will handle it along good distribution lines and not as so much material purchased in quantity and sold in any old way, without regard to the future effect of their sales. (e) What kind of advertising will help the talking machine dealer most? I have noticed that manufacturers place themselves in the hands of large advertising agencies who immediately put into effect antiquated ideas, which usually result in .a campaign of advertising without regard to what part of the country his merchandise was being sold mostly. I am a great believer in magazine advertising but I do not believe that the radio manufacturers should neglect local advertising fields just because somebody else in some other line of merchandise made a success of his business through magazine advertising. My recommendation to the manufacturers that the advertising which would gain a greater support of music dealers, is newspaper advertising in the territory in which the dealers are located and the amount of advertising to be in proportion to the sales in their territory. (f) Number of dealers to be restricted by some system of control by the manufacturer so that a certain amount of unfair competition be' eliminated and thereby encouraging dealers to develop their loyalty to the various lines of radio products that they may be selling. The Keystone Radio Service, New York, was recently incorporated at Albany, with a capital stock of $10,000. The incorporators include E. Schneider, H. Jeffery and E. M. Foley. ie ue Luxe <jj Coast to Coast 5 Tube NEUTRODYNE Li NET . Using Standard, Genuine Licensed Hazeltine Parts Synchronized and Matched DEALERS WRITE For Quick Selling KITS RADIO PARTS Wholesale Only HAROLD M. SCHWAB, Inc. Dept. TMO 55 Vesey Street New York, N. Y.