The talking machine world (Jan-June 1925)

32 THE TALKING MACHINE WORLD May 15, 1925 Interesting Analysis of Problems of Talking Machine Trade in South America Edward J. Bruen, Who Has Been Visiting in South America and Who Has Studied Conditions There in Connection With Talking Machine Merchandising, Describes Sales Methods Buenos Aires, April 2.— The greatest problem presented to the talking machine trade in South America is the bringing of the product to the attention of the buying public. The Victor and Columbia export departments do a great volume of newspaper and poster advertising among our Southern neighbors, but these educational methods are not as productive of business as the same efforts would bring forth in the United States. The truth seems to be, and the experience of many business men in various lines bears it out, that the Latin-American is not given to the reading of advertising columns — that he receives his impressions rather from the gossip of neighbors than from the most expensive efforts to attract his attention. This is true of the two most important Latin nationalities in South America — the Spanish and the Portuguese. Direct Appeals Result in Sales In Venezuela and Argentina the talking machine dealers make direct, personal appeals for trade through following the open road and carrying machines along. Like the sewing-machine vender of recent memory they go to every home, play for the pleasure of the family if they obtain a hearing and, in this way, establish trade relations. The siesta hours in the early afternoons are the most favorable for the dealer's agent and he makes the most of them. Among the Spanish-Americans the making of a friendly relationship and the sale of a machine is most important, its influence reaching out to extensive family connections — sometimes establishing an endless chain of selling. Expensive Instruments Best Sellers Dealers' sales are largely due to the sowing of such seed along the roadsides throughout the South American territory, advertising playing only a minor part in the opinion of the important agencies. The natural conclusion to be reached from such a method of selling is that the cheaper and smaller machines are mostly in demand. The contrary is the fact, however, as the cheapest adobe hut, once its owner is sold to the idea, is adorned more frequently with an expensive console than with the cheaper makes. There is a mistaken impression in the United States about the ability of the poorer people in South America to pay for anything. Whatever influences are responsible for such ideas are wrong in fact. Talking machine dealers whom your correspondent interviewed in Rio de Janeiro, Montevideo, Caracas, Soledad, La Paz and It is interesting to note in connection with this article on the talking machine trade in South American countries that United States exports of talking machines to South America for the eight months ending February, 1925, amounted in value to $754,264. The respective countries to which these shipments were made were as follows: Central America, $69,463; Mexico, $115,912;Cuba, $73,385; Argentina, $99,246; Chile, $71,563; Peru, $68,290; Other South America $256,486. During the same eight months' period talking machine records to the value of $1,068,900 were shipped to all foreign countries. An idea of the shipments of records to South American countries may be estimated from the fact that for the month of February, 1925, alone, they amounted in value to $63,071. Santos were unanimous in the statement that collections are the least of their troubles. Fifty Per Cent Cash Sales It seems that the South American is a hard man to sell, but that once sold he wants to transact the business of completing his ownership as soon as possible. Fifty per cent of the sales in Caracas and Soledad, according to dealers, are made for cash. The number of returns of machines was' also said to be negligible in the Venezuelan territory. Where cash is not paid the general collection system is by notes maturing in thirty, sixty and ninety days. The weekly instalment plan would never work satisfactorily, as payment along all lines of workis made mostly by the month and not by the week. A bill was introduced into the Brazilian parliament last Winter providing for a weekly pay day in all industries. It was bitterly op posed by the coffee, mining and herding interests and was tabled indefinitely. Whether it will be brought out again at the coming session is a question. If it should be passed it will, undoubtedly, in the opinion of talking machine men, have an effect on all business payments, and Julio Sabillo, of the Victor agency in Rio de Janeiro, who is familiar with the weekly instalment business because of several years' experience in the United States, voiced the opinion that the change to the weekly wage system will mean a change to the instalment payment plan to the detriment of the business, because the collection costs must be increased. Sign Notes on Time Sales "The existing system of signing notes maturing in thirty, sixty and ninety days," Senor Sabillo said, "has a good psychological effect on purchaser. The fact that the name of a bank is on the paper as the place of payment increases its importance vastly, and the banks charge the dealers nothing for this service. Indeed, sometimes the talking machine buyer's note works to the bank's advantage, acting as an introduction to a permanent savings account." Buenos Aires has a weekly pay system and is known as one of the most "Americanized" cities south of the Gulf. It has strong labor ties with the United States and is unquestionably the most modern of all South American cities. Paradoxical as it may seem, all the talking machine dealers in this city are complaining of business, of the collection situation and of the number of machines they are compelled to take back. One of the leading talking machine dealers here explained this condition by stating that it is simply a reaction from the peak business of two years ago and that it took Buenos Aires about a year longer to get the reaction than cities in the United States. The Radio Situation In the larger cities of South America the dealers and jobbers are beginning to feel the radio complex, and are wondering what its ultimate effect will be. They are satisfied that the reaction in their country will be much slower than in the United States, and furnish many reasons for this outlook. In the first place they point out that the Latin-American youth and boy is not given to things mechanical; that the fleeting character of the radio performance does not appeal to the South American who likes his music, when he likes it at all, repeated ad libitum; that the talkingmachine furnishes him with his favorite music at his own discretion and within the walls of his own hacienda or hut. Most Popular Type of Records In the record business the situation throughout the Argentine, Brazil, Venezuela and Bolivia is satisfactory with a growing demand in the Victor and the Columbia lines for syncopation. The most popular records are, of course, those of the great opera stars who sing in Spanish or Portuguese. Some of the Italian records are very popular, especially in the larger cities, where many Italians are engaging in business, coming from their native country through the United States. Strevell-Paterson Go. to Represent Sonora in Utah Salt Lake City, Utah, May 5. — The StrevellPaterson Co., leading hardware distributor of this city, formerly distributor of the Sonora phonograph, has again taken on the distribution of the radio and phonograph products of the Sonora Phonograph Co. The company will represent Sonora in Utah and southern Idaho and will be an important asset by reason of the high regard in which it is regarded by the entire trade of the Rocky Mountain section. The Crown Music Co., Pasadena, Cal., has opened a branch store at Glendora, in which a full line of musical instruments and radio equipment is carried. PET O FONE MADE IN U. S, A. A real portable talking machine TO RETAIL AT $12 Usual Trade Discounts DISTRIBUTORS Pet O Fone is bound to be a big seller this year — the demand is already great. Good proposition open in your territory. The Pet O Fone is a sturdy little talking machine — no larger than a camera, and as easy to carry. It has a good motor that will last ; and its tone is most pleasing. See it and hear it and be convinced. DEALERS A display of Pet O Fones will create sales — and demonstrations will increase them. Quick sales and large profits are waiting for you. Does all a larger phonograph will do. Ready for action in a minute. Weighs 4*A lbs. Made in black, red, green or blue fabricoid. PET O FONE MFG. CO., 557 BROADWAY, NEW YORK