Music Trade Review

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oney
IME payments as applied to radio sales-
manship to-day is a necessary evil be-
cause deferred payments have become a
national habit, according to Harold
Smith, of Smith's Radio Store, in Washington,
By FRED E. KUNKEL
"Another thing we do in making every sale
is to emphasize to the customers that they
are signing up a contract, an obligation to pay
before payment is due. The second notice is a certain amount of money each month and
sent out the day after payment was due, and that these payments must be met as they are
if nothing is heard due because the contract calls for repossession.
from the customer We ask them where they desire to have their
Salesroom
within the next 3 notices of payments due sent so that there will
A D A M S i8o?-4-<;
days the third form be no oversight in making payment.
is sent out. If these
"Any person who cannot afford to pay 25 per
18th and COLUMBIA ROAD
fail to produce re- cent down on a set and the balance in 10
WASHINGTON, D C
sults we then get in months is not in our judgment a credit risk.
touch with him by The smallest monthly payment that we have on
Dear
telephone
immedi- our books is $10 per month and we charge 6
ately and if the tele- per cent on all unpaid balances.
This is to remind you that the payment of$_
phone produces no
"Before a machine goes out the customer
on
results we make a must sign the contract and make the down pay-
your Radio will be due_
p e r s o n a l call. If ment. We have discontinued the practice of
he misses the sec- sending out machines and giving demonstra-
Payment on or before due date will be greatly appreciated.
ond payment when tions unless we get a deposit first. We abso-
it comes due, we lutely ignore all telephone requests for demon-
Very truly\
repossess the set. strations without sending out a salesman to
view the prospective purchasers
SMITHS
and to see them in their own
Service Department
home. The salesman then urges
ADAMS 3803-4-5
them to come to the store for a
D. C. Dealers are generally anxious
demonstration or signs up a con-
18th and COLUMBIA ROAD
for business and so they put the
tract then and there.
WASHINGTON, D. C.
machines into the homes and let the
"We charge $10 for the antenna
purchasers do most of the paying
and
installation. After the instal-
Dear
afterwards. In this age of credit
lation we give three free service
merchandising, the finest, as well as
calls over a period of 90 days if
This is to remind you that the payment of $
on
the cheapest machines, are sold on
necessary and after this period
your Radio was due_^
time.
we charge $2 a service call.
"The greatest competition to-day
Selling a radio set and keeping it
No doubt it is an oversight that this account, which is
is the low terms under which
sold are two different matters.
now past due, has not been paid.
dealers are selling their radio sets,"
As soon as a radio set is un-
Will you please give it your prompt attention?
says Mr. Smith. "We never take
packed, we check up on its per-
less than 25 per cent down on all
formance and if there are any
Very truly,
our sales, and we insist that the
•difficulties, the set immediately
SMITHS
customer make a deposit before we
send the set out. We also ask for
Salesroom
references with every time payment
ADAMS 3803-4-5
and these references are carefully checked up
We repossess less
before the set leaves the shop.
than 10 per cent of
igth and COLUMBIA ROAD
"In our opinion, it is not sound merchandis-
total sales. People
WASHINGTON, D. C.
ing to sell radios at a figure under 25 per cent
are proud of their
Dear
down because low terms only pay for half the
new radio sets, and
cost of the tubes and in our judgment it is
they want to keep
This is to remind you that the payment
on
poor business, and so we absolutely demand
them. Repossession
your Radio was due
25 per cent down on all time payments.
is also materially
reduced because of
"We do not offer cash inducements for cash
Your attention was called to this account several days
the fact that we re-
sales, but we try to impress customers with
ago. Is there any valid reason tvhy you cannot meet this
the fact that they can save the carrying charge quire a good down
obligation at once} If there is any misunderstanding about
by taking advantage of the cash price basis. payment a n d the
this statement, please advise so that the matter can be cleared
A cash transaction includes a payment of one- customer thus has a
up. Otherwise, your remittance will be expected without
large equity in the
third down, and the balance in thirty days.
further delay.
set which he does
"More than 75 per cent of our sales are sold
Very truly,
not care to lose.
on time payments. We have a careful follow-
SMITHS
We also find that
up system which keeps the customer constantly
reminded that he must pay when payments are when we must re-
due and not a week or ten days afterwards. possess sets that they are generally in such goes into the repair department. The next step
For this purpose we use three printed forms, good condition that they can be resold as prac- is to check up every radio set that is sold before
it goes out to the customer, and if any difficul-
which are filled out and mailed to the cus- tically new sets and we never suffer any loss of
ties arise they are corrected before the installa-
tomer. The first notice is sent out four days repossessions.
T
SMITHS
SMITHS
SMITHS
8