Evening star. [volume] (Washington, D.C.) 1854-1972, 1930-07-17
SALES INCENTIVES
|. WIDELY INCREASED
Many Successful, but Costs
and UnprincipIed Prospects
NuIIify Others.

Sales incentives have been multiplied
by many merchants in an effort to slim
ulate business at retail. Many of those
have been highly successful, but some
have proved too costly to warrant them
continuance and unprtncipled prospec-
tive buyers have taken undue advantage
Of others.
Demonstrations are among the most
successful Of these sales incentives. they
are being used freely, especially in the
radio and automobile industries Many
radio dealers do not hesitate to give q
home demonstration OF receiving sets
extending over month. Automobile
dealers win allow a good prospect to
take q car and run 1t for compare
lively extended period In order to deter
mine II 1t is what he wants.
Real estate men are Offering incen-
lives to home buyers in the way Of
smaller down payments and smaller and
longer term part payments for the
amortization of the debt. In fact. some
dealers here have been known to accept
two-year note from a purchaser in
place Of cash down payment.
SOY Riders" Troublesome.
Dealers in various lines experience
most trouble wiCa the demonstration
"joy rider" A radio joy rider is one
who gets a set on a months approval
and rides through the radio season
without paying cent One such Joy
rider In st. Louis is said to have run
IL different sets for IL months in sue
cession without spending a nickel except
for current. What such Joy riders cost
the dealers can be estimated from the
fact that each home radio demonstra-
ton costs an average of $13.43. II IL
estimated that one sale results from
each three demonstrations.
Some radio dealers have discontinued
this practice because of the expense,
while others charge demonstration
service fee" This fee Is paid by every
prospective customer who wishes q DEM
onst-atS~l before the set is installed,
but If the set is bought the fee APP
plies on the purchase price. Radio
dealers say home demonstrations rep
resent a thoroughly modern competitive
and aggressive type of sales effort, but
they cannot stand the expense unless
the joy-rider is eliminated
In some cities the ioy-riders have
been checked by card index system
! listing the bad prospects. Each dealer
| gives o list of customers to whom home
demonstrations have been accorded and
! indicates whether sales resulted or not.
Auto Situation Better.
The automobile demonstration cheats
are nOV aDle 10 WORK over so long q
period of time as the radio joy-riders,
but scores secure the use of fine cars
| for week or more when they have not
the slightest intention of purchasing.
Both radio dealers and automobile men
say that extra care should be taken to
avoid the prospects who call on the
telephone for demonstration. If the
prospect Is not sufficiently interested to
come to the show rooms and inspect
the sets and machines, his request for
q demonstration Is regarded with Sus-
picion.
Other distributors who sell goods on
part payment plans as well as for cash
have been similarly victimized This is
even the case with garments It is no
unusual thing for woman to have a
coat or dress sent home ION approval
| or on charge account. wear it for some
special occasion and send it back with a.
| demand for full credit for its return.
| '(Copyright, ls30)