Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
AUGUST 8, 1925
THE
MUSIC TRADE REVIEW
11
The Trade-in in Radio Merchandising
Three Different Methods Which Music Merchants Have Developed to Meet a Condition Which Is Gradually
Entering the Retail Merchandising of Radio—Allowances, if Given, Must Be Based on the Stripped
Value—Expert Appraisal an Essential in Handling the Trade-In
P
ROBABLY one of the most important de-
velopments in retail radio merchandising
during the coming Fall will be the wider
appearance of the trade-in problem. Radio has
not reached a sufficient degree of maturity for
the question of replacements to come greatly
to the fore, but unquestionably it is on its way.
The music merchant knows the pitfalls inherent
in the trade-in process perhaps better than any
other merchant handling radio at retail, and
his long experience in the piano and talking
machine field has made him walk warily in or-
ganizing to meet it.
The used radio set is already not uncommon
iq the large city trade where competition has
been exceedingly keen and some dealers, in
their fight for sales, were tempted to tackle the
matter. But these unfortunately have handled
it without giving much attention to its ultimate
results and without giving much thought as to
how they are going to turn over such accumu-
lated stock.
The Risks Are Large
At present the risks in the radio trade-ins are
obviously large, but they can be reduced to a
minimum provided the music merchant gives
a little study to the problem. In the first place,
if he sells properly he can reduce the number
of his trade-ins to a minimum. Take the ex-
ample of F. W. Evans, manager of the radio
department of McManus Bros., Elizabeth, N. J.
To The Review, in talking of this problem, Mr.
Evans stated that in the past those music
stores have prospered most in the long run
which let alone all sorts of special offers and
specialized in creating good will among their
clienteles. He said that when a customer asked
him why he objected to accepting used sets
upon an allowance basis when other dealers
on the same street did so, he rarely had much
trouble in making the customer see that in
most cases such a procedure was simply a
means of concealed price-cutting and that
probably he could give better value in the long
run than his competitor. " 'We've got to make
a legitimate profit or else go out of business,'
is what I always tell them," he said. "I show
them that the legitimate set is listed at a cer-
tain price and I ask them fairly and squarely
why I should cut that price by giving an al-
lowance on a worthless set simply to make a
sale. Most of them admit my point. I may
lose a sale occasionally, but in the long run
I make more profit than the fellow who makes
allowances on the trade-ins."
Selling on Consignment
That is the type of merchant who refuses to
give allowances on trade-ins at all. But there
are music merchants who have found a way out
of the trade-in problem with radio, and found
it with a profit as well.. A large Philadelphia
retail music house, which was one of the first
music merchants entering this field, uses a dif-
ferent system. This house also discourages
the trade-in, but where it finds that a trade-in
is essential in order to close the sale it makes
the following compromise. It offers to take
the old set on consignment, put it in shape in
its service department, which is highly organ-
ized, and then sell it with its own salesmen,
lemitting to the owner the amount between the
difference in the selling price and the cost of
repair work. For these second-hand sets, which
go at comparatively low prices, this house has
a good market among people who, while unable
to pay the price of a new set, want radio. This
market, of course, is largely among the younger
element who, in many cases, become customers
for the new sets carried by the house. The
system has worked successfully, the refusal to
make a direct allowance having no appreciable
effect upon volume of sales.
Another retail music house uses a different
procedure which has also worked out well.
When a customer comes in and demands an
allowance upon a trade-in this house sends out
the chief of its service department to* appraise
the set. The allowance is made on the basis
of the stripped value, batteries and tubes being
eliminated entirely. If the new set is sold on
this basis, it goes to the service department,
where it is put into shape as shop work in
the odd times between outside calls. This ex-
pense is comparatively small. The sets are
then sold at a sufficient price to cover costs
and service work, to a similar class of cus-
tomers mentioned in describing the procedure
used by the Philadelphia house. Only stand-
ard sets, however, are taken in trade, no offers
being made for home-made sets, many of which
appear, or receivers that have gone off the
market. The manager of the department in
(Continued on page. 12)
(L/innouncing
the BalkiteTriclde Charger at no
and the new Balkite"B'V
Balkite
Trickle Charger
Charges both 4 and 6 volt
radio "A" batteries at
about .5 amperes. Usable
in 3 ways: (1) Asa regular
charger with a low capac-
ity storage battery for sets
now using dry cells. (2)
With storage battery sets
of few tubes. (3) As a
"trickle" or continuous
charger for storage bat-
tery sets of as many as 8
tubes. Size 5]4 in. long,
2% in. wide, 5 in. high.
Operates from 110-120
AC 60 cycle current.
Manufacturers are of-
fering switches which
turn on Balkite "B" and
turn offthe charger when
you turn on your set.
This makes the current
supply for both circuits
automatic.
Trice #10
West of Rockies, $10.50
Slightly higher in Canada
Balkite
Battery Charger
The most popular battery
charger on the market. It
can be used while the ra-
dio set is in operation.
Charging rate 2.5 am-
peres.Operates from 110-
120 AC 60 cycle current.
Special model for 50
cycles.
Trice $19.50
West of Rockies, $20
Slightly higher in Canada
The Balkite Battery Charger is today
the most popular charger on the mar-
ket. It is the only charger commonly
used while the set is in operation.
Balkite "B" II is also well known. It
replaces "B" batteries entirely and
supplies plate current from the light
socket.
W e now announce the Balkite Trickle
Charger at $10. This low-rate charger is
especially adapted to use with sets of rela-
tively low "A" current requirements—any
dry cell set and storage battery sets with few
tubes. Owners of dry cell sets can now make
a very compact and economical installation
with a Balkite Trickle Charger and a low
capacity storage battery of the type offered
by battery manufacturers this fall.
W e also announce the new Balkite "B"
at $35. This new model will serve sets of
five tubes and less. It fits in your present
"B" battery compartment.
c
l\[piseless—^o
Balkite " B "
Eliminates "B" batteries.
Supplies plate current
from the light socket. Op.
erates with either storage
battery or dry cell tubes.
Keeps "B" circuit always
operating at maximum ef-
ficiency. Requires no at-
tention other than adding
water about once a year.
Will serve any set of S
tubes or less. Occupies
about same space as 45
volt dry "B" battery. Op-
erates from 110-120 AC
60 cycle current.
Trice 05
Slightly higher in Canada
bulbs—Permanent
All Balkite Radio Power Units are entirely
noiseless in operation. They have no mov-
ing parts, no bulbs, and nothing to adjust,
break or get out of order. Each is a perma-
nent piece of equipment with nothing to
replace. They require no other attention
than the infrequent addition of water. They
require no changes or additions to your set.
Manufactured by
FANSTEEL PRODUCTS COMPANY, Inc.
North Chicago, Illinois
Balkite "£" / /
Same as the new Balkite
"B" but will fit any set
including t h o s e of 10
tubes or more. Operates
from 110-120 AC 60 cy-
cle current. Special model
for 50 cycles.
Price 05
Slightly higher in Canada
The Qould Unipower U
equipped with a special
Balkite Radio Power Unit
BALKITE BATTERY CHARGER • BALKITE TRICKLE CHARGER • BALKITE «B" • BAJLKITE a B"lI