The talking machine world (Jan-June 1925)

62 THE TALKING MACHINE WORLD June 15, 1925 Will the Present Methods of Wholesale Distribution Survive in the Radio Field? M. C. Rypinski, Vice-President, C. Brandes, Inc., Expresses the Belief That the Jobber Will Survive in Radio Provided His Responsibilities Are Intelligently Carried Out The recent announcement of several of the nationally known radio manufacturers of a direct-to-the-dealer distribution policy must make every forward-looking manufacturer and distributor consider carefully where the future is leading them in this matter of radio distribution. Distribution is being considered broadly by the Department of Commerce and by several of the manufacturers' and jobbers' associations. What will come out of these studies cannot yet be foretold, but it must be obvious to any thinking person that the present high cost of distribution must either be reduced or a more satisfactory justification of them be forthcoming. As an illustration of how the cost of distribution has increased in radio during the past several years without additional service being rendered by the jobber, in fact with probably a decreasing service so far as the individual manufacturer is concerned, it may be of interest to note that devices of a character which the manufacturer sold to the jobber in, say, 1922 at 60 per cent of the price to the user are now in the case of certain manufacturers sold to the jobber at approximately 40 per cent of the price to the user. It is very difficult for the casual observer to understand why the distribution of a product should involve a burden 50 per cent greater than its manufacture. It would seem that, if anything, the manufacturer has to assume a greater risk than the distributor, and therefore his proportion of the return should be greater than that accorded to the distribution end of the business. As this article concerns itself primarily with the radio jobber and his survival, the writer proposes to confine his further comments to the jobbing phase of such distribution. Perhaps we can best approach this by setting down those functions which the jobber is supposed to perform. First— He is expected by the manufacturer to actively promote the sale of the particular manufacturer's products among his dealers. Second — To carry the dealer accounts and undertake the credit risk. Third — To carry an adequate stock of the merchandise, ordering from the manufacturer in relatively large quantities, and make practically all shipments to the dealers from such stock. Fourth — To exert his best efforts in forwarding the sales policy of the manufacturer and to keep the distribution of the product on a M. C. Rypinski at Work plane satisfactory to the manufacturer. By this is meant that he is to use his most effective moral suasion to avoid price demoralization, and he is to select dealers with due regard to the ideals and policies of the manufacturer. Normally no radio manufacturer would be disposed to contemplate any change from the jobber-dealer distribution set-up were the jobber to function with even a reasonable degree of acceptability along the lines above laid down. With the rapid growth of the radio industry, however, and the exceedingly great amount of competition in manufacture and in distribution, a number of conditions have arisen which have prevented the jobber from functioning satisfactorily along these lines. Space will not permit of our going into the reasons for the chaotic conditions which exist and these are not pertinent to the discussion, for what we are most interested in here is the Make Your Own Records on the Edison Diamond Disc with The Oro-Tone Combined Recording, Reproducing and Radio Attachment No. lOO ORO-TONE 3 in 1 Attachment Will Record on The Edison Will Play All Records on The Edison Will Convert The Edison Into a Radio Loud Speaker The ORO-TONE Co. 1000 George St. Chicago, U. S. A. Send for Sample on Approval LIST PRICE $8.50 NICKEL FINISH LIST PRICE $10.50 GOLD OR OX. improvement of the situation and the preservation of the jobber-dealer distribution set-up. Can the jobber in radio, if he is so inclined, carry out all of the responsibilities above outlined in a satisfactory manner? I think he can, provided he will confine his efforts to a minimum number of representative lines which are not essentially competitive, and will similarly limit the number of his dealer accounts. This requires as a corollary that the manufacturer should on his part make this practicable by limiting the number of his jobbers in a given territory to those who also do not essentially compete. The jobber who continues to handle a multiplicity of competing lines cannot perforce do justice to any one of them and a number of the forward-looking jobbers are recognizing this difficulty and are correcting it by radically limiting the lines which they will handle. A number of the forward-looking manufacturers realizing this also are taking steps to reduce the number of their jobbers and to work out some sort of a franchise dealer plan. If, therefore, an honest effort is made in the future by the jobber to properly serve a limited number of representative manufacturers, backed up as he will be by those manufacturers, then, in the writer's humble opinion, the radio jobber may look forward to a long and useful life. Special Gennett Records to Retail at Fifty Gents First Release of New Series Comprises Popular Song and Dance Selections With a Few Standard Numbers Richmond, Ind., June 6. — The Gennett Record Division of the Starr Piano Co. released to the trade on June 1 a list of fifty popular song and dance hits, with a few of the favorite standard selections interspersed, to retail at fifty cents. There has been a considerable demand for a cheaper record and the company expects to do a considerable business with this new series. Dealers' advertising material, including folders and window streamers, will be issued on this series the same as on the higher priced stock. The new popular price series of Gennett records were displayed at the convention in Chicago last week and the trade had excellent opportunity to examine and hear them. New Portable Phonograph Introduced to the Trade The Berg Auto Trunk & Specialty Co., Long Island City, N. Y., which for many years has manufactured high-class luggage and which more recently has made the fine cabinets for some of the largest radio manufacturers, now announces a new portable phonograph with some exclusive features. The product is marketed at a popular price under the trade name Berg Artone phonograph. This instrument is extremely attractive. The case is of the highest quality hand tooled weather-proof leather finish. The Artone phonograph is produced in two models, one with square and one with rounded corners. It is produced in three colors, walnut brown, mahogany or gray, to suit the tastes of various consumers. The inside construction is equally presentable and attractive. It carries a record pocket holding eighteen standard size records. It has a specially patented clarifying amplifier giving added length to the tone column and lending itself to increased tone and volume. The personnel of the Berg Auto Trunk & Specialty Co. has a wide acquaintance in the music trade and arrangements have already been made for some distribution on. the product. A campaign has been inaugurated giving this new quality product unusual publicity and a sales drive to the trade and introduction to consumers is under way.