Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
DECEMBER 26,
1925
THE
MUSIC TRADE
REVIEW
How Chicago Music Merchants Build
Their Radio Sales Volume
A Summary of the Methods Which Have Proven Most Successful With the Leading Music Merchants of
Chicago in Developing Sales in Their Radio Departments — Merchandising Policies That Show
How This Section of the Music Store Can Be Developed and Widely Expanded
E believe that the big sales builder
for the radio department is service,"
said Walter Roach, manager of Lyon
& Healy. "We are prepared to give service at
all times through our twelve service men, half
of whom operate during the day and the other
six do night work.
"After installation, we give sixty days' free
service and thereafter $1.50 a call, with a charge
for accessories. A complete detailed account of
all service work is kept by means of a card file
system for each individual service call.
"The operation of this service system is based
on the carrying charge for balance of account.
We ask one-third down and six to ten months
to pay the account. On the balance a carrying
or accommodation charge of one-half of 1 per
cent per month is made to take care of service
work. All our sets are guaranteed. We find
that selectivity makes a big appeal to the buyer.
We are representing Radiola, Zenith, Thomp-
son, Operadio, Crosley and find that the average
unit sales run from $150 to $275. Of course,
some sales run all the way up to $700.
"In addition to selectivity as a sales appeal,
other features are pointed out such as cabinet
design, musical qualities and, in all instances,
the salesmen are instructed to avoid long-dis-
tance and coast-to-coast claims, as well as tech-
nicalities.
"Through our large service department we are
enabled to meet the cut-price dealer. Our men
are good mechanics, who have had experience
with radio work, and I believe that this is one
of the important factors in turning the service
problem from a liability into an asset.
"Another valuable service which we render
and which the 'gyp' store cannot offer is the
special demonstration of the various horns and
a comparison of the qualities of the various re-
producers. We have a special room where one
each of every line we carry is installed by
means of a mechanical device in connection
with the radio set and controlled by a telephone-
type switchboard. In this manner each horn can
be demonstrated separately and the customer can
compare the respective merits of the speakers."
Bent Music Shop
The Bent Music Shop, 214 South Wabash
avenue, on the other hand, carries twenty-one
different makes, including Zenith, Atwater Kent,
Howard, Stewart-Warner, Garod, Freed-Eise-
mann, Pfanstiehl, Music Master and others.
The business, it is reported, has shown a
gain every month since May, and the depart-
ment has done twice as much business as the
previous year. There is ho definite stipulated
amount for down payment. Of course, as much
cash as possible is secured and the balance
bears a carrying charge of 1 per cent per month.
The contracts run from six to ten months.
"We give no home demonstrations," said Mr.
Skinner, "as we have found that it is not neces-
sary to demonstrate* the instrument to make
sales: The sales argument is based on home
entertainment and it has been found that the
salesman who gives a good sales talk and less
demonstrations makes the most sales. If the
party is not 'satisfied with the set he can ex-
change it for another set, but we do not allow a
set to go out without a down payment. We
give free service for sixty days and after this
period make a charge of $2 an hour, plus cost
"W
of batteries, tubes, etc., and the average sales
amount to $150 to $175."
Davidson Talking Machine Shop
The Davidson Talking Machine Shop, 234
South Wabash avenue, representative of Radiola,
Stromberg-Carlson, Freed-Eisemann, Thomp-
son, Radiodyne and Zenith, has eliminated all
misunderstandings, approximately avoiding 99
per cent of future dissatisfaction through the
"Service Agreement and Conditions of Sale."
This agreement, which every customer ac-
cepts, specifically states that the house holds it-
self responsible only for defects in the mechan-
ism of the receiver for a period of sixty days,
provided it has not been tampered with. If a
receiver is found defective within that period
the company will either repair or replace it with
another of the same make. Where an exchange
is made though, tubes and batteries are not in-
cluded in the exchange. There are other im-
portant stipulations set forth in this "Service
Agreement and Condition of Sale" contract,
such as no guarantee of distance, regardless of
make or price. One dollar and fifty cents is
charged per hour for service."
This agreement, it is pointed out by the com-
pany, eliminates unnecessary calls, throws a
certain responsibility on the customer, gives the
customer a clear understanding of to what he is
entitled under the agreement and protects the
company from any "come-backs" when the party
has understood that he would receive a cer-
tain amount of service.
The average sale, it is claimed, is in the
neighborhood of $200. The terms are at least
25 per cent down, ten months to pay and a
charge of 6 per cent interest per year on bal-
ance of contract.
Grosvenor Music House
In the same manner that William S. Gros-
venor, head of the Grosvenor Music House,
1022 Wilson avenue, has made a specialty of
selling high-priced reproducing instruments and
grand pianos he likewise handles only the stand-
ard lines of radio, including Zenith, Radiola and
the Brunswick combination. He is a firm be-
liever that the radio belongs to the music in-
dustry and should not be sold by anybody ex-
cept the music merchant, for whom, he says,
there is a wonderful future in the radio field.
"Sell the prospect just as you would be sold
has been our motto of selling and the prin-
cipal factor in our success," he said. "We have
attracted our trade through confidence, using
such channels as legitimate copy run in local
papers, through the efforts of five solicitors and
some direct-by-mail advertising and follow-up
work.
.
,
"We have tried to apply this in selling radio,
making clear the features of the instruments,
our guarantee that the set has no mechanical
defects and that if any should arise we will take
care of them gratis. But, on the other hand,
after installation, we will give no free service.
The service question and also that we do not
guarantee distance is made very clear to the
customer by the salesmen.
"Furthermore, in order to avoid any misin-
terpretation, we send a letter to the customer
after the sale is made, outlining important ques-
tions that arise in the service problem."
The company asks at least 20 per cent down
payment and the balance in eight months, with
6 per cent on deferred payments. The charges
for service, responsibility of the company and so
forth are set forth in a letter similar to the fol-
lowing, which is sent to the customer after the
installation has been made:
"As an owner of a Brunswick-Radiola, there
are a number if things we wish to bring to
your attention. When your Brunswick-Radiola
was sold to you, you were told it was the
greatest radio receiving set made to-day. You
were told that the life of the U. V. 199 tubes was
about a year, 1,000 hours, this being figured on
an average use of three hours per night; further,
that the life of the batteries were as follows:
The six A cells will last 245 hours, at an aver-
age use of two hours per night; the B and C
batteries may last a year or shelf life. We
firmly believe that all of these things are true.
"But this instrument, being a very sensitive
electrical receiving set and not a toy, must be
regarded as such and great care given to it.
While it is said that the life of tubes is 1,000
hours, they are not guaranteed; neither are the
batteries. Our responsibility, so far as tubes
and batteries are concerned, ended when the
instrument was set up in your home and tested
for reception.
"If you purchase an electric light bulb from an
electrical shop and put it in a socket in your
home and it burns out ten minutes later they
will not replace it free of charge. This same
thing applies to radio tubes, no matter when
purchased.
"You were told, at the time of the purchase,
not to turn the battery control dial past the
fifty-point mark on the dial; that if you did
it would weaken the filament or burn out the
tubes. This is the only thing that will weaken
or burn out a tube. All batteries are uncertain
as to their life and are not guaranteed at all.
Many times, when reception is poor, do not
think right away that it is the fault of your
instrument. Most generally it is not. Often-
times it is the fault of the sending station, of
the condition of the air, which is known as the
static level.
"We have established a complete radio serv-
ice department, including, in addition to repairs,
a full line of accessories, tubes, batteries, etc.
A nominal charge of $2.50 per call will be made,
and we can assure you of the capability of our
men.
"We appreciate your patronage and trust that
we may be of service to you."
Boiler Piano Co.
"We are satisfied to take a certain amount of
business that we can secure through handling
the standard lines instead of trying to sell
everybody a special kind of radio and meet the
'gyp' competition," said Phil Boiler, head of the
Boiler Piano Co., 2384 Milwaukee avenue.
"We handle the Radiola, Zenith, Sonora and
Howard and while we guarantee selectivity, sat-
isfaction and defects in workmanship we do not
guarantee distance. No demonstrations are
made in the home unless there is a down pay-
ment of at least 25 per cent. The balance is
to be paid within a period of from six to ten
months and there is a 6 per cent interest charge
on this.
"Our service is based on a nominal charge of
$1.50 per hour, plus cost of accessories. This is
explained to the customer at the time of sale,"