The talking machine world (Jan-June 1928)

sr. The Talking Machine World, New York, February, 192ft necessary to Successful Radio Merchandising in Increased production for 1928 enables us to offer real profit opportunities to distributors and dealers in new territories. Applications are now being considered Full Natural Tone Quality , °s Concert Caliber Music Store Steadily Gaining in Importance as Logical Outlet for Radio Bond P. Geddes, Executive Vice-President of the RMA, Gives Some Thought-Provoking Facts Regarding Merchandising Radio Receiving Sets at Retail The increasing recognition of the music merchant as the logical outlet for radio receiving sets by the radio manufacturer and the reasons for this attitude, which in some cases is a reversal of opinion, and the tendency on the part of dealers to devote their attention to radio as a staple item of merchandise, formed the basis of an interesting and instructive article by B. I'. Geddes, executive vice-president of the RMA, in the RMA News under the caption "Selling Radio Through Music Merchants." Radio is synonymous with music, at least in the public consciousness. While something more than a mere musical instrument, it has that classification in the mind of the buying public. This is a fundamental fact which neither the music merchant nor the radio manufacturer, jobber or dealer can ignore. Therefore, in approaching a discussion of the question of music dealer merchandising of radio this primary consideration, so often lost sight of, both by the radio manufacturer and the music merchant, should be kept firmly in mind. No oracular statements coming from the radio industry or, by the same token, from the music industry, can do more than accelerate a condition in both trades which, even the most casual analyst of the two industries must recognize, is now in progress. This is, that the radio manufacturer is availing himself more and more during each seasonal business cycle of the music merchant as an outlet for radio, and that the music merchant, in increasing numbers, is turning, either again or for the first time, to radio. This movement is more than perceptible. True, it has not taken on the proportions of a landslide, possibly, on either side of the fence, but it is an economic development whose force is increasingly evident. .The results, I believe, will be beneficial, as they should be, mutually. Water which has gone over the dam carries much debris but still contains a potential source of power and profit if utilized down stream. Any discussion of the many reasons in the early stages of the radio industry which caused the music merchant to reject or discard the radio before or after taking, causing the manufacturer to place the music merchant on his "N. G." list as a merchandising outlet, and vice versa, is something of a post mortem process. Still the comparison of the past with the present and future of radio is not barren of enlightenment. The radio industry of to-day is far different from that of yesterday or to-morrow. In the product itself, in the development of broadcasting, in merchandising methods, trade practices, and many other respects the music dealer of a few years ago who placed radio on his "N. G." list would do well to study the new day in radio. Undoubtedly, the music dealer anti-radio • prejudice, developed to a considerable extent a few years ago, has not been altogether broken down. Neither has the manufacturer prejudice against the music merchant as a radio distributor. But it is well to remember that prejudices obscure vision; also they cost money. And the circumstances which kept the radio manufacturer and the music merchant at arm's length (or more) in the past have changed vastly. In the early stages of radio distribution there were the attendant evils of uncertain price maintenance, of "gyp" merchandise and "gyp" competition. Also there was the serious ques tion of servicing the radio sets. The problem of service still remains, much less acute, however, while the worst evils, naturally attendant upon a new industry and which caused the music merchant to "lay off" the radio, have largely disappeared. To-day, at least partially through the efforts of the Radio Manufacturers Association, the trade discounts and merchandising methods have been conservatively stabilized, as the whole industry has progressed to a position of permanency in stronger hands, and, therefore, with greater facilities for exercising responsibility. No longer is the radio industry one for the fly-by-night and get-rich-quick profiteer. That stage, fortunately, has passed almost entirely as to the manufacturer, and to a minimum point, is gradually growing smaller, in the retail trade. The discounts of the radio manufacturer, smaller than usually enjoyed by the dealer in pianos and some other musical lines, also have become well stabilized. Many music merchants argue that they cannot show an adequate profit at the ruling discount rate of 40 per cent. On the other hand, it is certain that the manufacturers' profits, considering invested capital, and some of it in past costly experiments from which the radio public is now benefiting, are not creating a multitude of millionaires overnight. More music dealers are beginning to realize that the radio, with its quick turnover, can be made to show an adequate and sizable margin. The question of service largely is responsible for the increase, among the ranks of music and other radio retailers, in profitable merchandising of radio receiving sets. Drains for service charges upon radio derlers in the earlier years of development no longer exist. Servicing does not constitute a danger to the music or other merchant in marketing receiving sets. These have been perfected to a point even called "fool-proof." Conceding, for the purpose of argument only, of course, that this term may carry a slight tinge of poetic license, it is