The talking machine world (Jan-June 1925)

24 THE TALKING MACHINE WORLD March 15, 1925 Balancing Sales in the Radio Department Sales Promotion Effort in Behalf of Slow Selling Stock Necessary to Get Maximum Profits — Importance of Demonstrations There are many talking machine dealers who have won a full measure of success in the handling of radio receivers, that is, success measured in terms of profit, while there are many others who have dabbled in the field of radio more or less extensively and in casting up accounts have found that they have barely come out on the right side of the ledger. It shows the difference between the hit-and-miss plan of merchandising, and the serious, constructive selling plan that makes for permanence. In the first place, the handling of radio has much the same problems that face the dealer in handling any other product which is still in the course of development, for, although surprising progress has been made in the stabilization of radio receivers, improvements are constantly being offered to the public which, although they do not revolutionize existing methods, at least detract somewhat from the desirability of sets already in stock. Moreover, these changes may be expected to occur at intervals for some time to come in view of the constant experimenting that is being carried on in the laboratories of the manufacturers and elsewhere with a view to making radio reception a simple, satisfactory and constant factor. • The presentation of these improvements to the public offers one of the reasons for the inability of certain types of dealers to get any real lasting profit out of their radio lines. They perhaps stock receivers of recognized standing and worth but as changes take place are inclined to follow the line of least resistance and feature the new and most popular products to the disadvantage of receivers that represent a substantial capital investment but remain, on the shelves for lack of demand. It is quite all right to build up sales volume, for that is the basis of a profitable business, but it is not all right to build up sales volume at the expense of merchandise that unless it is moved is likely to become dead stock and tie up money which eliminates profits. The radio business has advanced to a point where due consideration must be given to stimulating the sale of slow-moving receivers, in order to keep stocks clean and active. Dealers who have won success have recognized this fact, and have seen to it that special attention was given to those outfits which did not move quickly enough. Very often there are in stock receivers that are in every way desirable, but have been little advertised and are therefore little known to the public. To move them requires salesmanship, The dealer who handles a complete line of a certain make of radio or who merchandises several lines is faced with the problem of turnover. In an establishment where more than one line is handled and where most of the sales effort is directed toward moving certain instruments which happen to be easily sold the rest of the stock suffers. The lines which are pushed will undoubtedly move more rapidly than those which are neglected, with the result that the investment represented by the slow-moving merchandise is tied up. The dealer who permits such an unbalanced sales promotion plan to exist is the loser. Popular merchandise is most easily sold and because of this fact it is necessary to get behind the slower moving radio stock more vigorously. and a demonstration will prove that these same "shelf warmers" can be sold. As has been said before, the radio business is rapidly becoming stabilized, but even the dealer who enters the field to-day is very liable to select receivers that for one reason or another are -not quickly salable in his particular locality. Just what his following want or do not want can only be learned through experimenting and by experience, and that pioneer work is bound to cost money. One dealer, who compensates his sales force on a salary plus commission basis, allows an extra commission on each sale of slow-moving receivers, and has found that the anxiety of the You'// hear the duplicate of this loud speaker when Gabriel Blows! The NewREMOTRUMPET with heavy duty adjustable unit Retails for $15.00 This new loud speaker has controlled volume and the tone values equal anything on the market. The unit is adjustable to meet all broadcasting conditions. All speakers do not work equally well on all sets, but the new Remo does. THE REMOLA A solid mahogany cabinet with the wonderful Remo unit. Retails for $25.00 Send today for samples and discounts THE REMO CORPORATION, Radio Division Meriden, Conn. salesmen to get the extra dollar or two has served to keep his stock in first-class shape and readily salable. The Value of Demonstrations It is not always the best-known receiver that obtains the best results in given localities, but the fact that a little-known outfit will produce the proper results must be demonstrated. The logical thing of course is for the dealer to stock those lines with which the public has been made familiar through advertising, for that decreases sales resistance, makes for quicker turnover and consequently larger profits. There are also economies in the matter of carrying on demonstrations that will save the dealer much money if they are observed. One concern, for instance, has placed its various types of receivers operated on dry cells along one side of the room and connected them all with a four-volt storage A-battery and a 90-volt storage B-battery. Being rechargeable these batteries are operated with a minimum expense, and save the cost of several dozen dry batteries formerly used each month for demonstration purposes. Moreover, the plan limits the demonstration to one receiver, or two at most, at one time, and checks the practice of shoppers who take delight in visiting radio departments in the guise of prospects and turn on the receivers themselves as a curiosity. A switch keeps the battery current under the control of the salesman who is doing the demonstrating. The plan is also calculated to cut down tube bills by limiting their use during any given period. Cutting Down Shop-Worn Stock Certain dealers have complained at times of the fact that frequent demonstrations and consequent handling give receivers a shop-worn appearance and it is frequently necessary to sell a demonstration outfit at a discount to move it off the floor, thus cutting down the profit, if not eliminating it altogether. A dealer here in New York has solved this problem most satisfactorily by suggesting that the customer take the receiver which has been demonstrated, pointing out that though all receivers of the same make are carefully made and guaranteed, some prove more satisfactory under certain conditions than others and that the customer has the satisfaction of securing an outfit which he knows operates in a manner to please him. The plan has worked out most successfully. It gives the customer the assurance that the receiver delivered to his home is the one he heard demonstrated and that he is not being taken advantage of by any switching process, and it also keeps the outfits moving constantly off the dealer's demonstrating tables, thus cutting down the number of shop-worn outfits he is called upon to sell at a sacrifice. As talking machine dealers become more experienced in the handling of radio they are finding many new merchandising angles bound to save money and promote more efficient service, all of which makes for business permanence. New Victor Album Set The most recent addition to the Music Arts Library of Victor records is Tschaikowsky's Symphony No. 6 in B Minor (Pathetique), consisting of five twelve-inch double-faced records made by the Royal Albert Hall Orchestra of London, under the baton of Sir Landon Ronald. The R. & L. Radio Corp., Brooklyn, N. Y., has been incorporated at Albany with a capital stock of $15,000. The incorporators are E. T. Le Berthon, A. S. Robbins and A. E. Ruehe.