Evening star. [volume] (Washington, D.C.) 1854-1972, 1931-11-03
u. S. RADIO TRADE
HOPES FOR PICKUP
Census Shows Sets Ace Not
So Widely Distributed
as Was Believed.
BY VICTOR EUBANK,
A .snnt,tnA Rrnss r.iun,cg,4 xrr,t.p


NEW YORK. November 3.-Although
the retail radio business throughout the
United States during the present year
has experienced sharp shrinkage, deal
ers are hoping that coming months will
see q decided pickup in the ION the
air. trade.
The most prosperous year for the
radio products merchants was 1929,
when q sales record for the entire coun-
try of $S42. 548 900 was established. The
1880 earnings. however, reflected the Oc-
tober, 1929, crash and sales of radios
dropped to q little more than $500, 000,-
600 For 1891 estimates of a fall in
business under 1880 vary from 10 to 40
per cent.
Price Level Lower.
The principal reason for the present
years lower total, OF course, Is at
tributed to the lower price level Of ra-
n 1Ss o1niaTity Of MIDGET sets ct unit sales
are expected to show q much lower
margin Of decrease. In 1929 and 1890
the larger sets were In greater de-
mand.
One Of the encouraging signs, dealers
say, is to be found in the 1880 census.
which disclosed that radio sets were not
so widely distributed as was at first be-
lieved. In IS of the 48 States and the
District of Columbia it was revealed
that there was radio receiving set in
every third family.
AS the average life Of radio set Is
about five years and tWo-thirdS OF the
families, approximately. are classed as
potential customers, manufacturers and
retailers are not without hope that, with
a better sentiment in business and in
dustry making its appearance, the wire
less trade may regain some of its former
buoyancy.
In the rs States and the District of
Columbia there were 2,374,2s7 sets re-
ported, against a previously estimated
total Of 2,764 300. Figuring the remain
ing States on this basis, estimators find
some IL 100000 radio receivers in use,
against previously seemingly erroneous
total of 13,478 900. If the prc-ent fig
ures are correct, dealers say their field
has been enlarged some IA per cent.
Reports from various parts of the
country indicate that the battle for
radio business ras been waged I'M
ceasingly during the first 10 months Of
1881. Prices generally have been sliced
from rs to so per cent and more liberal
terms Of deferred payments given Gus
toners With increasing competition
margins of profit have been subStan-
TALLY reduced, while many dealers have
kept their stocks down to about rs per
cent of normal.
In one Eastern city which manufae-
lures radio sets for national distribu-
ton 1t was found that production for
this year was down some 20 per cent,
with dollar volume of sales between so
and so per cent below those Of last
year. Among dealers the opinion was
expressed that sufficient profit could
not be made on low and medium priced
sets and that demand for the higher
priced grades must be created if the
business is to regain its former pros
pertty.
Expect Increased Demand.
From the Middle West a more cheer
tul tone was reported among dealers,
many Of whom believe 1882 will show a
greatly increased demand for radio
products and that prices will reflect
any encouraging symptoms in general
conditions. 1t is the opinion in that
part of the country that low price
levels have been reached and that, with
increased Christmas buying, the trade
may take on new lease Of life
In practically all districts collections
are reported as low, while warehouse
stocks are being kept at a minimum.
Dealers everywhere apparently are
operating closely to requirements with
the idea OF meeting any manufacturing
changes and improvements in the near
future