Evening star., 1950-10-31
|TV Dealers Confused
About Price Increases
lon Eve Of Levy

Television dealers in Washing
ton were confused today about
what to do about prices on tele-
vision sets they have on hand |
which are not affected by the 10
per cent manufacturers excise
tax.
That tax goes into effect to-
morrow but does not apply to sets
which have left the manufac-
turers' hands by midnight tonight,
according to the Internal Revenue
Bureau.
Some manufacturers already
have announced new and higher
list prices to compensate for the
tax. This would appear to promise
a profit windfall for dealers with
substantial inventories. Generally,
when the price of new merchan-
disc goes up the price of old-and
lidentical-merchandise is marked
up at the same time.
Confusion in Policy.
The confusion in policy was
demonstrated by the varying posi-
tions of the larger department
stores. One said it is taking no
immediate action to increase
prices on it's present stock. An
other said it would add the
amount of the tax to floor sam
pies and sell accordingly.
Still another said that as soon
as new list prices come in it will
change the prices of present stock.
A fourth asserted that it had re-
ceived no new price lists from
manufacturers and without them
it would hold prices at their pres
ent levels.
| Joseph M. Zamoiski, distributor,
said today's issue of a trade pa
per reported RCA out with new
list prices which are up $40 to
$50 per set. He added that the
same paper said Philco was going
to list the excise tax separately,
along with the charge for the tube
warranty.
Seen As Price Boost.
Some dealers were puzzled
about what to do in the latter
case. One said that he would not
want to collect tax where a tax
was not imposed, which would be
the case if he increased the price
of old merchandise by the amount
OF tax on the new. Some others
regarded it as merely another
price boost.
That tax. incidentally, while 10
per cent at manufacturers level,
amounts to about 6 per cent at
the retail price, dealers said.
One retailer said marking up
present stock to the new list
prices wouldn't mean much in his
case because he had been pretty
well cleaned out by sales.
Another said he had a substan-
tial inventory. He explained that
twice in recent months the prices
of one televiSion line had gone up
and that prices Of sets in stock
were marked up at the same time.
He saw no difference between
those instances and the present
situation.
Its nice when prices go up
he added, but when prices go
down you taking beating on in
yentory."
No Price Controls.
There are no price controls to
guide the retailers. One recalled
that when the excise tax on tele-
vision sets was adopted the ques-
ton of untaxed merchandise dis
tributed before the deadline came
up in Congress. He said 1t was
agreed then that to put a manu.
facturers' excise tax on articles
the manufacturer already had
sold would be unduly complicated.
There are instances of such a
procedure being followed, how
ever. One was in connection with
higher excise taxes on distilled
liquor. At the same time it was
applied at the manufacturers
legal, wholesalers and retailers
were required to pay a tax on
their stocks. 1t was referred to
as a floor tax"