Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
JANUARY 24,
1925
THE MUSIC TRADE REVIEW
139
THE TALKING MACHINE TRADE
Making the Banker a Business Adviser
and Establishing Credit With the Bank
Warren J. Keyes, Treasurer of the Sonora Phonograph Co., Inc., Gives Some Pertinent Informa-
tion Regarding Utilization of the Bank by the Retail Merchant
\
N important angle of talking machine mer-
chandising which has received comparative-
ly little attention is the relation of the banker to
the retailer. This subject was handled in an
interesting and instructive manner in an article
by Warren J. Keyes, treasurer of the Sonora
Phonograph Co., Inc., appearing in a recent
issue of the Sonora Bell. Because it contains
some facts with which every talking machine
dealer should be conversant the article is
produced herewith:
"Due to the seasonal nature of the phono-
graph business it is important for the retail
dealer to be on good terms with his banker.
There are times during the year when the
dealer must carry a large stock, because of
anticipated seasonal demands, and at these
times bank assistance, through loans, is neces-
sary and helpful.
"Many retail dealers look upon bankers as
hard taskmasters and feel that if they once get
into a position where they owe money to a
bank they will have a hard time extricating
themselves. This is a false belief, particularly
if the retail dealer will analyze his needs and
tell them in a straightforward fashion to the
bank.
What Bankers Want to Know
"In general there are two things that a bank
always wants to know about anyone before
granting a loan. In the first place, they want
to know that the security is good, and, second,
that the character of the borrower is such as
to inspire confidence. These two items are im-
portant in all lines of industry.
"In approaching his banker the phonograph
dealer should therefore have with him a finan-
cial statement showing his present condition
and his sales and profits over the last year, at
least. This does not mean that the retailer
must keep a complicated system of double-entry
books in order to satisfy his banker as to his
financial status. The statement should show
his cash, his accounts and notes receivable, his
inventory, his furniture and fixtures and any
other assets. Offsetting these assets he should
show his accounts payable, his notes payable
and any other liabilities. The total of his as-
sets, less the total of his liabilities, will give
his net worth. These items should all be stated
clearly and definitely. A banker will want a
rough analysis of the dealer's accounts re-
ceivable, showing the amounts not yet due and
the amounts overdue—probably 30, 60 and 90
days, and he will want to know whether the
dealer's accounts payable are overdue and whom
he owes for notes payable and when they are
due. The dealer should also have available a
record of sales, expense and net profit, so that
the banker can judge as to the efficiency with
which his business is conducted. All of this
information can be worked up easily without
a double-entry system of books, and the dealer
should always take this information with him
when applying for a loan.
"If you find that your records are inadequate
to give you the information you should have,
it cannot be advised too strongly so to set up
a system that all these figures will be available.
Furthermore, a record of sales and expenses is
essential in order that you can know whether
or not your business is being conducted at a
profit, and why.
"The Federal Government makes it imperative
that every retail store submit a statement, for
income tax purposes, which is due on March
15. In order to be able to make this report
intelligently even more record-breaking is re-
quired than is necessary for the bank.
"The banker is also particularly careful as to
the character of the man to whom he is making
a loan. He will want to know what the dealer's
suppliers think of him—whether he takes his
cash discounts—whether he keeps his promises
as to payments and how he is considered in
his community. He may ask for collateral in
the shape of instalment paper or warehouse
receipts. This is only for protection in case
the retailer fails to meet his obligations.
Banker Deals in Credit
"The stock-in-trade of the banker is credit—
just as the retailer's stock is phonographs.
This merchandise must have a definite turn-
over and must be productive of profit. A
banker's service is not to put permanent cap-
ital into the business but to be of assistance
to the retailer in helping him take care of
normal shortages. For this reason, if the re-
tailer finds that he should have more capital,
in order to secure a more profitable business,
he should not apply to the banker for assistance,
but should raise capital by other means.
Figures Tell the Tales
"A retailer, to have pleasant relations with
his banker and be successful in borrowing from
him, from time to time, must plan to be in a
position to clean up all of his bank loans at
least once a year. This is a very important
factor and often leads to considerable trouble
and misunderstanding if it is not followed out.
"A retailer's dealings with his bank should be
pleasant, rather than troublesome. If his char-
acter is a good risk and he can show figures
that will convince the banker that his is a
temporary need for financing, he should have
no trouble in making his loans and securing
the necessary assistance.
Taking the Banker Into His Confidence
"A dealer should at all times take his banker
into his confidence and ask him for his advice on
matters of business policy at any time. After
all the banker is just as human as the dealer
and should be cultivated as a friend as well
as an adviser."
Pearsall Organization Pays
Tribute to Departed Chief
Widow of Late Tom Green Presented With
Silver Tablet Expressing the Sentiment With
Which He Was Regarded by All
Mrs. Lydia M. Green, president of the Silas
E. Pearsall Co., New York, and widow of
"Tom" Green, received from the Pearsall organ-
ization at Christmastime a very handsome silver
tablet expressing the affection in which she is
held by the Pearsall staff and reflecting their
love for the late Thomas F. Green. The word-
ing on this tablet is beautiful in sentiment and
thought, reading as follows: "Lydia M. Green.
Wherever, Next Year and Thereafter. Christ
came into the world at this season nearly two
thousand years ago and lived a life of sorrow
so that others might be happy. His happiness
was the love He put into the hearts of others—
and Peace. If it should be the Plan of the
Great Builder to scatter the various members
of the establishment built by our friend, your
husband, Thomas F. Green, and we should have
no other opportunity to collectively express our
love for you and for him and the love which
you and he gave us one for another, we hope
to fully express ourselves now. May the love
you showed us be reflected in the love of others
for you. May the peace you tried to give us be
reflected in a great peace for you, and the bit-
terness in your heart for those who have in-
jured you be tempered by the knowledge that
an enemy is a short-lived thing and love and a
true friend endure forever, and that it is only
when Winter comes that we know the Holly
and the Pine to be Evergreens. This is merely
a tangible evidence of our love. The Pearsall
Organization."
How a Live Retail Dealer
Handles Machine Prospects
H. M. Reynolds Describes in Detail the Various
Steps He Has Found Most Productive of Re-
sults in Selling Phonographs
Every successful salesman has his or her own
method of putting over a deal. An approach
that may work to advantage for one individual
ofttimes causes a decidedly different reaction
when used by another. However, all of the
methods used are of real general interest to
those who are engaged in the happy profession
of selling merchandise.
H. M. Reynolds, of the Brunswick Shop,
Indianapolis, Ind., who is widely experienced in
the retail field, in the following paragraphs gives
his ideas relative to handling a retail sale as.it
should be.
"After your customer has been seated and you
have selected the model that he wants dem-
onstrated (you can help in the selection by sug-
gesting different styles of furniture that the
models represent), you then explain that you
are going to use a few records to demonstrate
the quality of tone of the instrument. My first
record is usually No. 2333, one that is excep-
tionally clear and attractive from this stand-
point. I follow this with No. 2228, calling atten-
tion to the fact that they are now hearing four
voices instead of one. From this I switch over
to an instrumental number, using No. 2010,
suggesting that they give particular heed to the
bass in this particular selection. I then dem-
onstrate part of No. 25004, pointing out the ease
with which one can follow through simple mel-
ody or variations. The next record that I use
is No. 50035, to bring out the more delicate
shadings of music, and it gives me a good
opportunity to call attention to the fidelity of
the instrument in reproducing piano music.
"I use these particular records because they
suit my purpose and afford a good range of
music, as illustrated by the different types of
recorded music. Never play a record all the
way through.
"I have found that this simple method will
close a large percentage of my customers; but
if it does not I then resort to a demonstration
of the prime features of the instrument, intro-
ducing at the same time several records that
they may want to hear.
"You will find that the customer will give
better attention to your detailed explanation at
this time than at any other, because he or she
is curious to know how you get this unusual
tone from the records demonstrated.
"It has been my experience that 80 per cent
of the customers with whom I have talked have
been women, and a great number of them would
be bored by a lengthy technical explanation,
prior to the time that 1 prove to them that we
have something that they would really like to
hear."