Television digest with electronic reports (Jan-Dec 1954)

12 Topics & Trends of TV Trade: tv service means profit and is “the key factor on which the public’s acceptance of this industry’s products hinges.” That was common-sense theme of address this week by Ben Caldwell, managing director of North Texas Appliance Dealers Assn., at annual Texas Radio & TV Service Clinic and Electronics Fair in Dallas. Speaking on behalf of NARDA, which released his speech and with which his group is affiliated, he said; “Nobody is more aware of the importance of service than retailers. The customer who has had good service is the one who’ll recommend TV to his friends, the one who’s in the market for a second or even a third set in his home, the one who’ll be among the first to buy color TV. Cut out service, and you’ve cut out the heart of the industry.” He said 3 basic factors caused “tensions” between TV retailers and service dealer: (1) Sharper competition for consumer sales dollars. (2) Overzealous set salesmen who “fail to inform the customer that he’ll probably require some service on his new TV set and thereby endanger the reception that awaits the serviceman when he’s called in.” (3) Lack of cooperation in combating “industry evils that are mutually dangerous and should be attacked on a mutual basis.” One example of “industry evils,” he said, was the widespread offer of free TV service by dealers on parts beyond period covered by warranty as inducement to buy set. He urged service dealers and TV-radio retailers to launch joint promotional campaigns emphasizing importance of semi-annual antenna inspections, spring auto radio check-ups and 15-point TV set tuneups before fall season, and concluded: “It would mean good business growth, greater profits and that feeling of having stood together for a common purpose and having gained the objective of a bigger, healthier business because we did stand together. The set dealer and the service dealer have a lot more in common than they do in opposition. There’s no room, in the face of our common problems and in the face of all the good that can come from the 2 elements working together, for dissension.” iS? iifi ^ ^ Magnavox’s new franchise agreements with dealers, following en masse disfranchisement last week in move to combat discount house operations (Vol. 10:34), are regarded by many trade observers as among toughest in industry. They require dealers to carry a specified minimum stock at all times, to sell at list prices, provide acceptable demonstration facilities, identify themselves strongly as Magnavox dealers, caiTy basic parts stocks and make available dependable service facilities, report month-end inventories regularly to factory and to participate in factory sales promotion and training programs. Factory commits itself to withhold products from discount houses and other “known price cutters” and provides merchandise price guarantee to protect dealer inventories from price dips — reportedly for 90 days from date of purchase. New program, said Magnavox official, followed thorough survey of its 1600 dealers and is expected to have short-term effect of reducing number of dealers, though in long run merchandise will be “cleaner,” he said. Kaye-Halbert Corp., operating under Chapter XI of Bankruptcy Act, is permitted to remain in business indefinitely as debtor-in-possession under order signed last week by Referee Benno M. Brink. Salary of pres. Harry Kaye was fixed at .$1500 monthly. Freed Electronics & Controls Corp., formerly Freed Radio Corp., which in 1952 agreed to pay 100% in installments under Chapter XI plan, has secured approval of majority of creditors to pay 50% of debts in Class B stock. Majestic Radio signed licensing agreement this week with big German radio manufacturer, Grundig Radio GMBH, of Fuerth Bay, to produce line of 13 AM-FM and shortwave radios and radio-phonographs, to be marketed in U. S. by Majestic distributors under brand name of “Grundig-Majestic International.” Nearly all tubes and parts in Grundig-Majestic sets will be interchangeable with American products, explained chairman Leonard Ashbach after signing agreement with Grundig sales director Otto Siewek and export mgr. Claus J. Bussman. Line consists of “mini-boy,” described as “pocket radio” weighing only 22 oz. and measuring 6-in. wide, retailing for $30; 4 AM-FM short-wave table radios, starting at $70; AMFM radio for battery or outlet connection, $100; AM-FM clock radio; 4 AM-FM console radios; 2 radio-phonograph combinations — none of them priced yet. Largest distributor of German radios in U. S. is American Elite Inc., 1775 Broadway, N. Y. (Michael von Mandel, pres.), which handles Telefunken line (Vol. 10:23). Sylvania advertising account, running about $7,500,000, switches shortly to J. Walter Thompson Co., which recently lost RCA account to Kenyon & Eckhardt, Grey Adv., and A1 Paul Lefton Co. Sylvania TV-radio advertising has been handled by Roy M. Durstine Inc., including Beat the Clock show on CBS-TV, with Cecil & Presbrey handling other phases. Henry Johnson, JWT v.p. on RCA account, who will handle Sylvania account, is onetime Sylvania adv. mgr. for radios, tubes, electronics, photoflash. Census Bureau will start 1954 business census early next year, having been granted $8,430,000 by Congress for survey of all manufacturers, wholesalers and retailers. Preliminary results will be published in latter 1955 on kinds of businesses, sales, employment and payroll figures and cost of raw materials and supplies. Data on sales of TV sets and air conditioners will be asked of retailers for first time. Most recent national business census was in 1948. Canadian Admiral cut list prices an average 19% on all sets in new 24-model line introduced this week at dealer open houses in 10 cities. Line starts with 17-in. ebony plastic table model at $200, goes up to 21-in. combination at $690. The 21-in. sets contain 90-degree aluminized deflection tubes, resulting in cabinets 3-in. narrower than in old models. Also shown was 5-tube printed circuit tabic radio in 6 colors, at $25. Excise tax collections from TV-radio-phonograph manufacturers totaled $135,535,000 in fiscal year ended June 30, compared to $159,383,000 in preceding fiscal year, reports Internal Revenue Service. Collections from record manufacturers totaled $8,445,000 vs. $7,617,000 preceding year. Under new law, manufacturers can file excise tax returns quarterly, starting Sept. 30, instead of monthly, as in previous years. Applicable to TV-radio-appliances, Federal Trade Commission ruling this week held that manufacturer who grants advertising allowances to some of his customers must inform competing customers how they can receive same allowances. Ruling was made in case involving 2 dress manufacturers (Order 5735). Stromberg-Carlson cut price of its 15-in. color set from $995 to $495, with rebates to distributors and dealers. Clearing decks for larger screen sizes, it was third manufacturer to cut prices recently — others being RCA and Westinghouse. Emerson, which had leased sets, recently pegged its 15-in. color set at $695. Benrus Watch Co. disclosed plans this week to enter radio field, promised details in couple of weeks. Bulova has been selling own line of clock & portable radios through jewelry stores for several years.