The talking machine world (Jan-June 1928)

Why Dealers Should Handle Radio Cabinets in 1928-9 Volume and Profit Possibilities of Products Should Be Analyzed — Artistic Cabinets Give Dealers a Profit-Producing Line By Lambert Friedl (Mr. Friedl, the writer of this article, has been connected with the music-radio industry for a number of years, and is an authority on all phases of business management as applied to our own particular industry. — Editor.) THE term "Progress" in its strict definition implies changes. This is particularly true of the radio art and industry. Anyone desirous of building and maintaining a position for himself in either division of radio, must begin with his mind prepared to either create and lead, or at least devotedly follow. Standpatters were not intended for this industry. Looking Back Reviewing the past seven years of manufacture and sale of radio as a source of home amusement discloses a library of information. Broadcasting was followed by converting almost every machine shop into a radio "laboratory" and every peanut stand into a radio "salon." The adventurers of commerce and industry rushed headlong into the very center of the arena, only to end their ill-conceived ventures in the clouds of grief and loss. Methods, means and ethics were imported into this baby industry that seemed certain to prevent its advance and growth and indefinitely retard its progress. Thinking men in the business looked upon it all as hopeless chaos. The Door to Stability With it all, the business grew and grew and prospered. With it all, each year it became more and better stabilized. Brains, efforts and guidance of big type men, leader type business executives, have finally created orderly proceedings. We now stand on the very threshold of the last door to be unlocked, leading into the inner chamber of safety and stability in radio. It might therefore be of some interest to view the problems confronting the radio jobber and dealer at this writing. In the past the radio jobber's and dealer's revenue was derived from the sale of parts, accessories and sets. The parts business, with the exception of some few jobbers and dealers who still specialize in merchandising parts, gave out first. Then came a very heavy percentage of sales in accessories and replacements, consisting of headsets, batteries, various kinds of eliminators, tubes, etc. These sales represented large volume and heavy percentages of the total sales of the wholesale and retail merchants. Sales of Accessories According to the best obtainable information the sale of accessories used to represent a percentage running anywhere from 20 per cent to 75 per cent of some dealers' and jobbers' business. Besides, these sales represented fairly quick turnover of inventories by reason of President, Symphonic Sales Corp. which fact they have in most instances proved most profitable for the trade to handle. The best way to illustrate that the great future of accessories sales, as a source of revenue to the jobber and the dealer is now in the past, is by the fact that many manufacturers of batteries, eliminators, etc., are coming into the manufacture of sets, in order to continue the contacts they built for themselves in the past, and to operate their respective plants at a ' / 1HA T many dealers can increase their annual -*■ sales volume, as well as widen, their merchandising field, by adding to the lines they now handle has been demonstrated many times in this trade. Mr. Friedl, in the accompanying article, makes some suggestions that are worthy of the most careful perusal by retail talking machine and radio dealers throughout the country, whether they now handle some side line or contemplate doing so in the future. . . . far more substantial and satisfactory profit. New Problems Confront Trade With the arrival and almost universal adoption of the AC type set by practically all manufacturers, new problems are confronting the jobber-dealer contingent. Further, the efficiency in engineering and manufacturing, and extremely keen competition have forced the list prices of sets to a new and lower level, thus reducing the average unit sale of radio merchants. Another worth while factor to consider. What Will Take the Place of Accessories? What is there then that will enable the wide awake element to secure the desired volume of business in 1928-29? The answer seems to be simple enough. Without any hesitancy, briefly and concisely it can be stated. Whatever the dealer will decide to add to his lines must necessarily be merchandise, the sale of which guarantees the indisputable possibilities of (1) Volume, and (2) Profit. The goods to be added should be as near kindred to radio as possible. It is generally admitted that kindred merchandise can be sold by the same salespeople to the same customers, and because of this the overhead is not increased. Boiled down to a few words, here is a wholesome, guaranteed recipe for 1928-29: Add a Good Line of Radio Cabinets (1.) Select a line of sets most suited to your field of operations, made by reputable manufacturers, operating under license arrangements (this for the sake of safety). (2). Sell aggressively. Do not be satisfied with business walking into your store through the front door. Reach. out for that vast clientele that needs but to be reminded of the fact that their homes are still without radio sets. (3). Sell radio cabinets. Sell them with new sets, and sell them to those to whom you have sold -table-type sets in the past. Cabinet sales can and will replace a good bit of the sales of accessories nowi rapidly going out, and soon to be entirely gone as a factor in retailing. Easy Going ^— m^^Im Analyze the above three points and you will easily find that you are moving ahead and along the lines of least resistance. Every home prefers a radio set housed as a complete unit. Right here, however, just a word of caution should not be amiss. It is no less important to sell a good and staple line of cabinets than it is to choose a good radio set. The source of your supply should be closely scrutinized as to its qualifications to serve you and its ability to design, build and deliver cabinets to you that are certain to enhance the sale of your sets and satisfy your most critical customers. Finally, be sure that the speaker units used by your cabinet manufacturer are of standard and accepted make. The importance of these points cannot be overemphasized. Reduces Prices on Two "B" Batteries List prices on two Eveready round-cell "B" batteries, Nos. 770 and 772, were reduced, effective April 1, according to an announcement of the National Carbon Co., Inc., New York. No. 770, which hitherto sold at $4.75 list, will be sold to the public at $4, and the No. 772, which sold at $3.75, will be retailed at $2.75. These two batteries were the company's leaders in the "heavy duty" and "medium size" radio dry battery field until the introduction of the "Layerbilt" principle. Dealer prices are lowered in proportion. The announcement was made in a letter to dealers from the general sales offices of the National Carbon Co., in New York, and points out that "Eveready quality will be rigidly maintained with the result that dealers can now offer batteries of the highest quality at competitive prices." Ryan & Hughes, Inc., 250 West Fifty-fourth street, New York City, radio dealers, recently filed a petition in bankruptcy with liabilities of $123,000 and assets of $34,600. VAN VEEN SOUND-PROOF BOOTHS Write VAN VEEN A COMPANY, Inc., rk/vnic; ar,d music store UU I EQUIPMENT 313-315 East 31st Street, New York City 28