The talking machine world (Jan-June 1925)

24 THE TALKING MACHINE WORLD January 15, 1925 Price Phases of Radio Demand Analyzed Retail Price Ranges of Radio Receivers That Proved Most Popular With the Public Shown in a Survey Conducted by The World Radio has for a number of months been an established factor in the talking machine trade and many of the problems first connected with the handling of that product have been eliminated through the medium of good merchandising and the ability of the dealers to profit by experience. Having reached the stage where the radio business may be said to be stabilized there has been considerable conjecture as to just what type of apparatus from the price standpoint provides the most rapid turnover for the dealer and what percentage of the sales of the average talking machine store conducting a radio department should be directly credited to" that new department. In order to get exact and direct information on this important subject, The Talking Machine World has conducted an exhaustive survey among representative dealers and the results have been both interesting and enlightening. It is to be assumed, of course, that the dealers solicited had passed beyond the first excitement of delving into radio as an unknown field and had settled down to the handling of the product on a sound economic basis. It was assumed also that dealers continued to handle talking machines and gave the proper attention to that work. Analysis of the Radio Demand The dealers who had been inclined to regard radio receivers as being divided into two classes, those too low priced to provide an adequate profit and those too high priced to produce a satisfactory turnover will be interested to learn that, according to the reports from the trade itself, 45 per cent of the demand is for receiving sets selling at between $100 and $200, or a price comparable with that averaged during good years in the talking machine field. Thirty and five-tenths per cent of the demand is and has been for receivers selling at less than $100, which price limit includes some very popular and successful receiving units of the smaller type, and 13 per cent of the demand was for receivers selling at more than $200, which may be taken to include a majority of the combination talking machine and radio outfits. The remaining 16.5 per cent of sales have not been classified, but the figures available certainly give an excellent idea of the character of the general demand. Radio-Talking Machine Combinations As to the demand for the combination radiotalking machine sets, 32.5 per cent of the deal The secret of successful merchandising lies in handling those products that have the greatest appeal for the public and insure rapid and profitable turnover. The accompanying information on the demand for radio receivers in three classifications as to price should prove invaluable to the dealer in the adjustment of his line of receivers with a view to catering most efficiently to radio prospects in the territory from which he draws trade. ers interviewed in the survey were enthusiastic over the possibilities for such combinations, as indicated by actual sales, the majority of them being representative of the leading talking machine companies featuring such outfits complete under their own names. Sixty-seven and fivetenths per cent repprted that they experienced no great demand for the combinations but admitted they gave more attention to the selling of individual receiving units, and failed to feature combination sets, thus failing to realize the full selling value of these instruments. Where the Profits Are With trade discounts of 35 to 40 per cent prevailing, there is reason to believe that a price average of from $100 to $200 on the majority of radio receiving sets means a very profitable business for the dealer who goes after it intelligently and promptly, and the 30 per cent who favor machines selling under $100 includes a The Tube With the UNCONDH IONAL G U ARAN TEE Every VOLTRON tube has a refund value at the factory, under the wide terms of The VOLTRON GUARANTEE "VOLTRON tubes are guaranteed against manufacturing defects. Return for free replacement, if defective, before thirty days from purchase; after thirty days return for an adjustment based upon actual usage. IN EVERY CASE AN ALLOWANCE WILL BE MADE regardless of condition of tube. Return direct to the VOLTRON Manufacturing Company." VOLTRON SALES COMPANY 227 Fulton Street New York City, N. Y. [VOLTRON MANUFACTURING mm/emtk/j.^ majority of those who are quick to buy outfits retailing complete at from $75 to $100, so they, too, may be classed in the profitable group. The market for the higher priced outfits is naturally more or less limited for the reason that all prospects are not in a financial position to pay several hundred dollars for radio receivers and sales can only be made to those with the ability to pay, although the replies indicate that this is a field which is capable and worthy of great development. Out of all those interviewed there were only a few, less than ten, as a matter of fact, who are handling radio simply from necessity and who were not more or less impressed with the merchandising possibilities. The great majority, though many of them had lost money at the outset through lack of knowledge in merchandising the new product, have become convinced of the fact that, intelligently handled, radio has real possibilities. They have succeeded in solving, first, the service problem, either by making a fixed semi-annual charge for service or impressing the customer with the fact that only service on faults in the instrument itself will be rendered free within a limited period and that adjustment of battery and tube trouble must be paid for. Financing Problem Solved Then, too, the question of financing has been solved very successfully. Not only are the majority of dealers getting short terms, averaging from six to eight months, on radio outfits, but they are demanding from 20 to 35 per cent down as a cash payment and thus providing against any loss on accessories or on the set itself through possible repossession. The main thing is that the great majority of better known receivers are now made under a factory guarantee and are so constructed as to be practically fool-proof. They operate under varied conditions and thus bring the dealers' problem down to one of straight merchandising rather than of service. Character of the Business On the whole, the popular impression that prevailed in the trade some time ago that retailing radio was primarily a proposition for the gyp dealer has been dispelled. The newspapers are full of advertisements offering parts and certain types of sets at low prices, but the manufacturers themselves, at least those making the well-known trade-marks, and advertised receivers, are seeing to it that only legitimate merchants are given official representation for their outfits, and this is improving conditions rapidly and steadily. Thousands and thousands of sets are being sold at $100 or less, which is an excellent thing, for it promotes mass selling and rapid turnover. But the fact that nearly half of the radio outfits sold by the dealers interviewed average from $100 to $200 in price shows better than any other argument the calibre of the business. Apparently there is nothing picayune about it. Ackerley Opens New Store Patchogue, N. Y., January 8. — Jerome W. Ackerley recently opened his new music store in the heart of the Patchogue business district. The new establishment occupies the corner of a new building erected by Mr. Ackerley and is modernly equipped throughout. Among those active in talking machine circles who attended the opening ceremonies were: J. Newcomb Blackman, of the Blackman Talking Machine Co.; H. M. Brown, of C. Bruno & Son; George Kelly and C. A. True, of the New York Talking Machine Co.