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April 15, 1925
THE TALKING MACHINE WORLD
151
IN THE MUSICAL MERCHANDISE FIELD— (Continued from page 150)
Principles of Successful Small Goods
Retailing Are Set Forth by R. M. White
Secretary of H. N. White Co.. Musical Instrument Manufacturer, in a Pamphlet to Retail Trade, Outlines Methods of Building Profits and Summarizes Basic Principles of Selling
An extensive drive to increase dealer representation for King band instruments is being made by the H. N. White Co., of Cleveland, O. In this connection R. M. White, secretary of the company, has set forth at length, in a statement to music dealers, the reasons why a musical merchandise department in a music store is a source of profit not only through the immediate sales, but also because of the ultimate sales made possible by the friends made by means of the instrument department. He also describes in full the advantages of the "King" exclusive agency policy and the co-operation which exists between the manufacturer and dealer.
"One of the chief principles of successful merchandising," states Mr. White, "is the bringing in of traffic to the store. Every sale, every advertisement and every effort of any sort is directed toward this end, and this end is best served by the installation of a band instrument department. Customers call for small articles, such for example as a saxophone reed, and the contact thus made eventually leads to the sale of expensive instruments."
The second principle put forth by Mr. White as essential to good merchandising is that of selling name instead of just the article desired by the customer. Name value is the chief asset, and when an article of merchandise is impressed on the minds of the people through publicity mediums the work of the dealer is lessened to a considerable degree — providing he has the exclusive agency for the article and no competitor can undersell him.
Mr. White summarizes these principles as follows: "A small-goods or band instrument department as a means to immediate profit and to secure traffic in the store; the band instruments carried should be of the highest quality, and so well known that you can sell the name, thus freeing yourself from competition, and the dealer should protect his profit by having the exclusive agency for the instrument sold." He further states, "The combination of these principles is ideal and 'King' band instruments fit squarely into every one of the requirements,
meeting all the conditions that they impose."
This statement to the dealers in outlining the policies which have placed the H. N. White Co. in the enviable position which it occupies continues in part:
"Over a quarter century of giving honest values, plus persistent national advertising, has resulted in nationwide acceptance of the name 'King' as synonymous with the ultimate in quality. Sales resistance is minimized by this acceptance. Professional musicians do not need to be sold on the quality of a 'King.' They know that it represents the final word in acoustics, tone, finish and balance.
"We are not content to rest on our oars. Every year sees bigger and stronger advertising preaching the gospel of 'King* instruments to the boy, the amateur, the professional and the band-leader. All of this advertising, plus the already established national reputation, plus our constant refinement of quality, makes it comparatively easy to put your store out of the competitive class. You can sell 'name' and be sure to cash in on the buying-desire thus created if you hold the 'King' agency.
"The first point can be summarized in thi3 way: Early in our experience we found that the H. N. White Co. was not a complete entity. True, we could manufacture quality instruments. And we could advertise them. Likewise some sales could be made by mail. But without the retail store we were incomplete.
"From this realization came the belief that the dealer was just as surely a part of our organization as was any one of our several departments. The dealer is just as much 'us' as is our advertising or sales division.
"Building our entire policy on this basic thought has resulted in a particularly close relationship between the 'King' agent and this company. I have already talked briefly about advertising. This involves the use of national magazines; music publications, direct mail, etc. Forceful color pages, plus black and white copy, bring thousands of inquiries each year. And many thousands of direct mail-folders, broadsides and circulars keep eternally at work building orders out of these inquiries. With over 250,000 names carded in our files we are in constant communication with buyers of musical instruments all over the country. Many of them are in the territory you serve.
"You know the importance of the catalog. Both as a primary selling force when sent to inquirers and as a store-aid. Seldom does a dealer carry a complete line of the instruments we make. The catalog must be used to sell the missing numbers. Over a year of an expert's time was spent in producing our current catalog. Four full-color oil paintings, plus hundreds of black and white illustrations, visualize not alone the full line of 'King' instruments, tut give in detail the selling points of each instrument. We have sectional catalogs (illustrating all the range of instruments in a single class);
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folders, booklets, inserts and many other forms of selling literature. For your window there is a variety of display material.
"And finally, we put the sum of our intelligence, plus the intelligence of all our representatives, at your disposal. We are constantly gathering facts, selling ideas and photographs from every available source. All this, boiled down into usable form, is yours for the asking.
"The 'King* Agency is placed with only one dealer in any city or town. It is always exclusive in this sense — in that when one dealer agrees to take the agency and his sales show him to be in earnest, no other dealer will be sold or quoted.
"Another meaning of 'exclusive' has to do with sales made direct from the factory by mail. Every inquiry or order received from the vicinity of a 'King' dealer who carries a stock of instruments on hand will be referred to him for attention. This is provided for as follows: Each dealer who carries a stock of instruments is a Class A Dealer and receives a contract with the agency. In this contract is contained a map outlining the territory in which absolute protection is given on all sales and all inquiries. A copy of this map is made on our 'Master Maps.' Every day the mail is checked against these maps and orders or inquiries coming from any class 'A' dealer's territory are referred to him for closing."
The agencies for King band instruments are divided into Class "A" and Class "B," depending on the amount of stock carried and volume of sales. The amount of discounts given is based on the class of agency which a dealer represents.
In commenting on the financing plan recently completed by the H. N. White Co., Mr. White says:
"One of the biggest obstacles in the way of a successful small goods department is the amount of capital usually required to finance payment sales. This obstacle is removed completely by the new plan for 'Financing Payment Sales of King Band Instruments,' which we now can offer to every King dealer. You can sell 'Kings' without tying up a cent of ca.pital and — what is more attractive — dispose of your leases without sacrificing a cent of profit. The difference between our published cash and payment prices covers the cost of financing so you receive full profit."
King dealers are also protected by a trade-in plan should their stock of used instruments become too heavy for them to carry to advantage.
Sparta, Wis., Store Opened
F. W. Lloyd, director of the Sparta band, recently opened a music store on West Oak street, Sparta, Wis. He is planning a vigorous sales promotion drive in the interest of the line he is featuring.