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The Music Trade Review
JULY 16, 1927
Western Convention Meets in San Francisco (Continued from page 3)
which in turn are being passed back to the ulti-
mate consumer in the form of lowered costs.
In Mr. Banta's opinion instalment buying is a
good thing, it being somewhat in contrast to
the views as expressed by the average banker.
Thomas J. Mercer, representing the Bankers
Commercial Security Co., of New York, de-
clared that the music business may lay claim to
being a pioneer in instalment selling and has
blazed the trail for the younger industries
which are so assiduously following that plan.
The music merchants had their fingers burned
by instalment excesses in the old days when
manufacturers by the dozen cried for carload
orders and special sales. The music trade
pioneered in modern instalment paper financing,
which he described in detail and endorsed con-
ditionally, saying the foundation of successful
paper financing is in itself sound paper.
He stressed the value of good salesmanship
and advised dealers not to launch into too great
a volume of business on their own or borrowed
money at the present time, in view of condi-
tions, though he believes that the propaganda
designed to promote musical instrument play-
i«g was making progress and would have an
excellent effect in the near future.
Joel W. Kaufmann, secretary and treasurer
of the Emporium, San Francisco, offered a de-
tailed description of the method of operating a
business on a budget system.
He made a
strong case for the utilization of a budget
which introduces careful thought and planning
into the business organization. It was par-
ticularly needed, he declared, in the case of a
falling market where competition is unusually
keen.
Salesmen Must Be Trained
It is an exploded theory that salesmen are
born, declared R. H. Mouser, a prominent in-
surance man of Oakland, Cal. As a matter of
fact, he declared, the need for the careful train-
ing of salesmen is steadily becoming more ap-
parent, as salesmanship is gaining recognition
as a profession. He advised that music mer-
chants select salesmen on the basis of char-
acter and said that the first step in training
should be a school of instruction within the
merchants' own organization, where the sales-
men who have been successful in the field are
the instructors. He described the Metropolitan
Life Insurance Co., where salesmen who have
finished the course of instruction in the agency
school are assigned to a unit under the direc-
tion of a trained supervisor who gives them
actual instruction in the field. The life insur-
ance men also have a correspondence school
as well as a house organ to keep them con-
stantly informed on matters that will aid them
in selling.
Victor Talking Machine Co. Entertains
On Tuesday evening all those who had regis-
tered at the convention were the guests of the
Victor Talking Machine Co. at an elaborate
dinner and dance held in the Colonial ball-
room of the St. Francis. A number of Vic-
tor artists entertained, among them Morice
Gunsky, the popular tenor; "The Rounders"
Quintet, now appearing in "Topsy and Eva,"
and others. The Horace Heidt Orchestra from
the Athens Club, and Eddie Harkness, from the
Mark Hopkins Hotel, furnished music for the
dancing. It was an evening that will not soon
be forgotten.
Wednesday Morning Session
\. The Wednesday morning session opened
with a talk by Gerald M. Best, the Radio Mag-
azine, San Francisco, on methods for increas-
ing record sales. He declared that the prob-
| Jem of increasing sales of records is paramount
among the many problems confronting the
music dealer, and held that too much thought
has been given to record sales governed by the
popularity of the artists and the songs of the
day, with an apparent lack of understanding of
modern recordings as known by engineers, al-
though dealers cannot be expected to keep up
with all these problems. As a phonograph
owner, said Mr. Best, radio was taking the interesting talk on how to sell radio in music
place of the phonograph records of popular stores, in which he emphasized the particular
numbers with him until he heard the new rec- fitness of the modern music merchant's store
ords played on a new style machine, and recog- equipment, and his experience in catering to
nized the tremendous improvement. He de- musical people as of undisputed value in pre-
scribed the modern methods of recording scien- senting radio receivers on a proper basis,
tifically, showing why the new records are so namely, as new musical instruments.
far ahead of the old. He expressed the belief
Mr. Smiley described radio manufacturing
that it was no longer necessary to fall back five years ago when it was a haphazard busi-
on the popularity of the songs, or the artists, ness largely in the hands of tyros, and said it
if salesmen will try to appeal more to the cus- was no wonder that few music merchants
tomer's bump of music appreciation in the wanted to take on radio at that time. Finally,
right way. In closing he called attention to the he said, some wise manufacturers recognized
fact that pipe organ records particularly are the fact that they must not only fill the market
showing an increase in popularity never known but create a market for the future, and the
before the advent of the new recording proc- business became stabilized. He declared the
esses.
dealers should encourage manufacturers with
sound financial backing who used national ad-
Handling the Phonograph Trade-in
In discussing the handling of the Phono- vertising and who had vision enough not to
graph trade-in problem, William H. Cross, consider goods sold until they reached and sat-
manager of the talking machine and radio de- isfied the ultimate consumer.
partments of the Jackson Furniture Co., Oak-
The music merchant sometimes does not
land, declared that the big question that faces seem to have the right attitude toward radio,
the phonograph dealer to-day comes from the said Mr. Smiley, for he thinks radio is coming
customer and is in effect "How much will you into his organization and taking from him
allow me on my old machine?" One solution, something he previously had. He urged that
as Mr. Cross sees it, is that the customer must radio be given a proper place in the store—not
be sold on his new phonograph before the on the second balcony or the second floor
value of the old instrument can be discussed back—so that it might have a real chance to
properly. "We must allow no more for a trade- produce profits for the retailer. In closing, Mr.
in," he declared, "than is consistent with good Smiley advised dealers against the mistake of
business and the desire to keep our warehouse taking on too many radio lines, for that tended
free from dead stock. If all dealers would to confuse the customer and make the dealer
abide by the Northern California Dealers' As- his own competitor.
sociation policy of limiting themselves to maxi-
Importance of Proper Service
mum allowance prices, cited by that associa-
Loren L. Ryder, superintendent of radio and
tion for obsolete phonograph models, the pub- talking machine service for Sherman, Clay &
lic would put them in the same category with Co., San Francisco, gave the dealers something
square pianos upon which people do not set any to think about in his talk on "Radio and Talk-
high value."
ing Machine Service—What It Should Be and
R. J. Heffner, of the Pacific Telephone & How It Can Be Made to Pay." Mr. Ryder de-
Telegraph Co., the next speaker, stated that he clared that every radio and talking machine
had been asked to talk on "Electricity in dealer had made some provision for taking care
Music," because the association leaders have of the problem of giving service to the pur-
recognized the part played by the Bell Tele- chasers of electrical reproducing instruments,
phone System in the development of present- but little thought has been given to putting this
day methods of recording, transmitting and re- department on a sound business basis. Suc-
producing sound in general. He appeared, cessful jewelers, garage men, etc., employ
therefore, as the representative of the Bell Sys- technicians capable of meeting and overcom-
tem to tell some of the interesting things tele- ing any difficulty that may arise in their mer-
phone men have learned in doing the tasks that chandise, but too many music and radio deal-
are part of their every-day jobs. He touched on ers employ the cheapest class of help and then
the many improvements in equipment, materials condemn the merchandise because of the
and methods that have made it possible to tele- troubles their customers encounter and the re-
phone across a continent, to record, electrically, verts they have on their hands.
music and speech for phonograph reproduc-
Customers regard the service man as an
tion, and to see over the wire, or by means of authority, said Mr. Ryder, and a good service
radio, the face of the person whose voice we man, using tact, makes a satisfied customer and,
hear. These developments have come about incidentally, has a wonderful opportunity to
not as the result of genius, as we ordinarily un- sell accessories. The speaker urged that deal-
derstand that term, but as the carefully planned ers make their service department pay by em-
and co-ordinated effort of a large group of ploying the class of men whose services are
normally intelligent people.
of the sort for which customers are willing to
Broadcasting and Radio Selling
pay. The service man is always called upon to
An address of particular interest and im- make pood the representations of the sales-
portance to those dealers handling radio was man, and in a large measure the reputation of
that of J. W. Laughlin, managing director of the house, for the quality of the products
Station KPO, San Francisco. Mr. Laughlin handled, rests in his hands.
had for his subject the relation of broadcast-
The Wednesday Luncheon
ing to radio merchandising, and made a strong
Wednesday was Oregon and Radio Day at
plea for closer co-operation between the broad- the "inspirational" luncheon, the speaker be-
casting interests and those engaged in the ing Howard I. Milholland, studio manager and
manufacture and distribution of receivers, chief announcer of KGO, who handled the sub-
pointing out that one factor would become ject of broadcasting from a distinctly inter-
absolutely useless without the other, for broad- esting angle, stressing the human side. It is
cast programs would be worthless without re- the human interest stuff that really counts in
ceivers to bring them into the homes, and un- broadcasting and makes for the successful sta-
less programs of proper caliber were kept on tion, said Mr. Milholland, and in support of his
the air the receivers would become useless and .statement he read interesting and amusing let-
unsalable. He emphasized the improvements ters from listeners-in commenting upon pro-
that have been made in broadcasting generally, grams, making suggestions, and altogether in-
particularly in the selection and presentation of dicating that radio had a real appeal for them.
programs, and the effect that these improve- In the course of his talk the radio man declared
ments have had in maintaining public interest that he had given auditions to 5,000 would-be
in a substantial market for radio.
performers but had found very little undis-
Smiley Talks
covered talent.
R. E. Smiley, assistant sales manager of the
E. B. Hyatt, of Portland, presided at the
Atwater Kent Mfg. Co., Philadelphia, gave an
(Continued on page 5)