The talking machine world (Jan-June 1928)

From 20 Lines to 4! Essig & Ives Started With Twenty Radio Lines and Now Carry Four — Gaining Sales and Cutting Overhead By Roy Stewart Because of the number of fine new radio receiving sets on the market to-day, the matter of selection of the lines which will prove most profitable to the dealer in his own locality is an important one. Too many lines very easily will result in overstocking, for the simple reason that it is practically impossible for the average retail merchant to handle the complete lines of each manufacturer. Experience has proved conclusively that it is better to select several makes that meet with local popular approval in performance, appearance and price than to attempt to handle ten or twelve lines. The investment required for many lines is beyond the means of most dealers. The same sales results can be obtained with more limited variety of make but with complete coverage in models. Started With Twenty Lines The above, briefly, is the conclusion reached by the firm of Essig & Ives, of Freeport, Long Island, one of the leading concerns in a large territory in that section of New York State. The company has been in business over a period of eight years, and has built up prestige by handling quality merchandise. When radio came on the market and the demand warranted, the company opened a department, and in common with most dealers, faced the serious problems of selling and service. The overnight popularity of radio is history, but because of the plethora of sets brought out at the time, and for which all sorts of extravagant claims were made, this firm catered to the varied demand by installing eighteen or twenty makes of radio. It looked like a prosperous market, and all the sets seemed good. Then the trouble started. Too Much Competition The first result of this radio popularity was competition from the "butcher, the baker and tfle candlestick maker." Manufacturers were concerned only with maintaining production to the point where it approximated demand. They installed their lines in every conceivable kind of store. No dealer was protected. The merchandise was poor and demands for service poured in on Essig & Ives. Profits were conspicuous by their absence. Order Out of Chaos The radio end of the business reached the point where this company decided that something must be done. The first move was to analyze the products of the various manufacturers in connection with local reception conditions and the taste of the public. This resulted in throwing out all the lines but four. Herbert A. Ives, who with a partner, G. P. Essig, operates the store, declared in order for the dealer to place his radio department on a profitable basis he must select his merchandise with thought to the service requirements on the product, his locality and the companies back of the products. "Cheap radio is made of cheap materials," said Mr. Ives. "Such a set is O K for a short time and then comes the trouble. Not only is excessive service costly, but good will is dissipated when customers are unsatisfied with their purchase. We have found that the best time to avoid service demand is at the time of installation. The average installation made by our service men takes about two hours. If the uork is done right in the first place the chances are that no trouble will develop later. In all our experience in selling and installing radio receiving sets, we never have had to go back on a job. We select only the very best materials for the installation job. This alone costs between $5 and $7. Because of our policy regarding installations we are perfectly safe in offering our patrons six months' free service. We are seldom asked to make a service call, and then it is usually a case that does not reflect in any way on the work we have done. After the six months' period we make a labor charge on all service calls. This charge is based upon several factors; viz., the nature of the service, cost of materials, time consumed, traveling expense, etc. Traveling expense is an important item for the reason that our business is not confined to this city, but covers the surrounding villages and countryside for miles. Select Customers Repossessions, slow payers, and other unsatisfactory conditions following the sale are eliminated to a large extent by Essig & Ives because a radio set is not sold to every person (Co)itimted on page 36) HELYCON ff 102 Motor The proven phonograph equipment, manufactured by men who have been in the industry for a generation. Write for Catalog of Motors, Tonearms and Reproducers POLLOCK-WELKER, Limited Kitchener, Ont., Canada 509 Tone Arm Cable Address : Polwel, Kitchener Code : A.B.C., 5th Edition, Bentley's 33