Music Trade Review

Issue: 1925 Vol. 81 N. 6

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
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
12
MUSIC TRADE
REVIEW
Trade-In in Radio Merchandising (Continued from Page 11)
this house states that name value is essential
in moving used radio stock.
Necessary Procedure
As pointed out in the beginning of this ar-
ticle, the question of the radio trade-in is not
as yet a pressing one. But it is extremely
likely to develop to a considerable degree in the
near future. So the music merchant with a
radio department must settle his policy in that
regard at the present time and thus be pre-
pared to meet it when it becomes important.
Here are a few rules which are essential to the
success of any merchant who decides that he
will accept old receivers in part payment for
new ones:
First—Expert appraisal is essential. A serv-
ice man should see and examine the receiver
before any offer is made. His report should
not only give the base value but it should in-
clude an estimate of the cost of the labor and
material necessary to put it into proper shape.
Second—Stripped value of the receiver is the
basis of all allowances. Let the customer keep
his batteries, tubes, etc. They have no value
to the merchant when they are used. This
should be made very clear to the prospect.
Third—If trade-ins are accepted develop a
separate market for them. One house sells
practically all the sets which it accepts in this
fashion through one salesman, who only works
part time and who finds his clientele among
the high school boys of the city. He in many
cases succeeds in selling the used sets without
any labor being done upon them, the boys
themselves usually wanting to put them in
shape. Development along these lines can be
carried out in almost any territory.
Fourth—Discourage trade-ins to the limit of
the selling force's ability. The margin in radio
is not large enough to allow for losses in this
direction. Don't be afraid to lose an occasional
sale. A lost sale is always better than a sale
made at a loss of profit. Try to prevent the
trade-in from becoming a recognized part of
radio retail merchandising:
Try and make
every trade-in an exceptional case. This is not
so difficult as it sounds.
Fifth—Don't allow trade-ins to accumulate
and then resort to a sale of used receivers. If
this method is followed the music merchant is
going to disorganize his market for new goods.
Sell them off as fast as they are taken in and
get turnover. That eliminates losses.
Not So Difficult
If these rules are followed the radio trade-in
problem is not going to be difficult. If they
are disregarded, trouble is ahead of the dealer.
Indiscriminate trading-in is too dangerous to
have the merchant run its inherent risk. The
problem is not big now, but it is growing, and
like all growing things it can be shaped prop-
erly if it is caught young.
RCA Window Service
New Standard Base
for This Firm's Dealers
for All Radiotrons
Designs and Materials Furnished to All Dealers
Who Carry the Line of the Radio Corp. of
America
Push Type Standardized as Regular Equipment
—Three New Types to Be Shortly An-
nounced by the Concern
A new window display service supplied to
dealers without charge, and with instructions for
its installation, has been inaugurated by the
Radio Corp. of America.
The service is seasonable, and correlated to
the merchandise which the individual dealer
may have in stock. Sales ideas and nu'rehan-
The adoption of one standard push type base
for all Radiotrons for receiving purposes has
been announced by the Radio Corp. of America
in its program of standardizing Radiotron
bases.
In making this announcement, the
RCA denied reports to the effect that Radio-
tron- equipped with the new "UX" standard-
AUGUST 8,
1925
facing the Maison Blanche building, home of
WSMB. New Orleans radio men were enthu-
siastic about the new sets.
New Postal Regulations
Covering Catalogs
Post Office Department Issues New Rules as to
Material That May Be Included With the
Catalog When Sent Through the Mails
WASHINGTON, D. C. August 3.—New regula-
tions governing inclosures which may be sent
with catalogs of twenty-four pages or more,
mailed at the rate of 1 cent for each two
ounces, have just been issued by the Post Office
Department. The new rules are issued to meet
changed conditions arising from the increase,
last April, in the postage rates on third-class
matter, under which catalogs of less than
twenty-four pages and other circular matter
require postage at the rate of \ l A cents for
each two ounces.
It is now permissible to inclose with catalogs
of twenty-four pages or more a reply envelope
or reply postcard, provided only such matter
appears thereon as obviously relates directly
and exclusively to the catalog; a single order
blank bearing no extraneous matter, but only
such matter as clearly pertains to the catalog;
and a loose printed circular consisting of a sin-
gle sheet not larger than approximately the
size of the catalog it accompanies, provided it
relates exclusively to the catalog. If in the
form of a circular letter, it may not be in the
nature of a general communication nor contain
additional offers or refer to extraneous matters.
The inclosure with a catalog of any loose
printed matter not conforming to the conditions
outlined above will subject the entire package
to postage at the rate of 1J^ cents for each two
ounces. However, if a circular or other printed
matter is securely attached to a catalog by past-
ing, stitching or stapling, so that it will form
an integral part of the catalog, it does not
make it subject to the higher rate.
The inclosure of samples of any merchandise
with a catalog subjects the whole to payment
of the lJ/2-cent postage rate.
'The Story of the Piano,"
Issued by Krakauer Bros.
Interesting Volume Designed for Distribution
Among School Children Recently Issued by
New York Piano Manufacturers
RCA Dealers' Window Display
dising hints are included in the instruction ized base would render better service than
sheet, as well as a photograph of the model tubes which are at present equipped with the
window for the guidance of the dealer in in- "UV" base.
stalling it.
The RCA also announced that the five stand-
The accompanying illustration is typical of ard tubes for receiving purposes which it haft
the manner in which the RCA is cooperating had on the market for the past few years will
with dealers in the effective dressing of win- continue to be its standards for radio recep-
tion. Three new types of Radiotrons, however,
dows.
designed solely for audio-frequency amplifica-
tion, will be announced when they are ready
for the market.
New Zenith Distributors
The Eastern office of the Zenith Radio Corp.
of Chicago announces that the Music Master
Corp. of Philadelphia and Pittsburgh, which has
been distributing Zenith products for the past
three years, no longer represents that line and
that the Zenith products will be supplied in
the future by the Penn Phonograph Co., 913
Arch street, and Trilling & Montague, 49 North
Seventh street, both in Philadelphia,
Demonstrates New Radio
NEW ORLEANS, LA., July 31.—Demonstrations
of the now Freed-Eisemann set were given here
recently by J. J. Kuscher of the sales promo-
tion department of the Freed-Eisemann Radio
Corporation. Mr. Kuscher received in his room
on the seventh floor of the Hotel Roosevelt
Krakauer Bros., New York, have just issued
a most interesting and instructive little book
entitled: "The Story of the Piano," and setting
forth the development of musical instruments
from the ancient Chinese "Ke" to the modern
grand piano of to-day. The book was pro-
duced, it is stated in the introduction, at the
request of one of Krakauer Bros, representa-
tives for distribution among school children
who were making a study of music and the
instruments used at various times to produce it.'
Various clear-cut illustrations serve to make
the text more easily understandable.
Of particular interest to Krakauer dealers
are the last few pages of the booklet, devoted
to the development of Krakauer instruments
from the square piano built by Simon Kra-
kauer, founder of the business, to the hand-
some grands and reproducing grands that rep-
resent the latest development in piano manu-
facture.
The Newman Piano Co., Lockport, N. Y., re-
cently filed a certificate of incorporation, the
incorporators being Alfred J. Newman and
Jesse L. Colby. The company maintains a re-
tail business in Lockport.
Consult the Universal Want Directory of
The Review. In it advertisements are inserted
free of charge for men who desire positions.

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