Music Trade Review

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Lord & Co.
Concentrating buying, selling and servic-
ing in one single line of radio turned losses
into profits for this well-known music house.
Walter F. Lord
T
HE moot question of concentration
versus diversification in the retail radio
business finds an earnest controversalist
in the person of Walter F. Lord, of the
Lord Piano Co., Lawrence, Mass. Mr. Lord,
an old-established piano merchant, has con-
ducted a successful business for many years,
and has been engaged iii the merchandising of
radio since early in 1924.
According to Mr. Lord he has had the oppor-
tunity of seeing many of his competitors fail
dismally and a few succeed. His own radio
business has always been good, but he declares
that he has made more real money out of radio
in the last two years than he ever thought was
possible in the light of his previous experience.
Says Mr. Lord: "It's not difficult for me to
place my finger on the cause of this increased
business—it's due to just one factor—my deter-
mined policy to handle one standard line of
radio exclusively.
"From the time 1 entered the retail radio
business in 1924, I have experimented with vari-
ous merchandising policies. At certain inter-
vals during the past five years I have handled
as many as eight different lines of radio. For-
tunately, I have always been able to keep my
head above water and show a pretty decent
profit. I had an old-established business, had
gained the confidence.of my customers over a
considerable span of years, and had the added
advantage of an excellent location and a strong
and well-knit selling organization. But I wasn't
satisfied—I suspected that somehow I was using
the wrong methods, and I determined to make
a thorough investigation and find out just what
was wrong.
"I found, after checking back on my records,
that during the times I had carried the most
lines of receiving sets, a very substantial per-
centage of my profits at the end of the year
were tied up in obsolete models of several
makes of radio still on my floor. I also came
to the conclusion that due to my policy of
carrying several different lines I was being
forced to spend too much money in advertising
and promotion, and that my annual investment
in stock was too great—did not completely
justify itself. Also I discovered that the selling
time and energy of my organization was being
dissipated along too many lines of effort. I sat
down and figured that if I could cut this dead
wood to any appreciable extent, and at the
same time lower my selling costs, my net
profits would take a jump."
After a great deal of deliberation, Mr. Lord
decided that the most effective way to accom-
plish this was to go the whole way and handle
just one line of radio, eliminating all the others
at one full swoop. In applying this plan he
figured that his stock at the end of the year
There's only
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one line—
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Atwater-Kent—
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in this window
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for the
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prospect to
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think about
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would be lessened, his advertising and promo-
tion costs would be decreased and his service
problems simplified. And, as an accompanying
benefit, the cost of each individual selling op-
eration would be materially decreased.
"My mind made up," Mr. Lord said, "I set
about immediately to select the line of radio
that could most profitably be handled exclu-
sively. First, I considered the question of na-
tional advertising. What radio manufacturing
company offered me the best and most exten-
sive national advertising campaign, the most
helpful dealer co-operative advertising plan, the
best opportunity for forceful local tie-ins?
Next came the question of the quality of the
product, and, following in rapid succession, its
reputation, its popularity, its style value, its
service advantages, etc. When I looked over
the list of the leading lines I was then handling
and considered each from a perfectly unbiased
viewpoint, I decided that the radio that most
completely measured up to my standards of
qualification in every way was the AtwaU-r
Kent radio."
In point of national advertising, dealer o>-
operative advertising, dealer "helps," service
advantages, quality, performance, reputation,
style and dollar for dollar value, Mr. Lord de-
cided for Atwater Kent radio. He immediately
consummated his plans and set about to con-
centrate all the selling energy and activity of
his radio organization on the Atwater Kent
line.
Mr. Lord continued: "I have found that my
policy has more than justified itself. In the
two years 1 liaVe handled Atwater Kent
exclusively my net profits have steadily in-
creased. Not only has every phase of my new
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