Evening star., 1953-09-16
Appliance Dealers
Discuss Price Cuts in
Forming Trade Group

IVHIIIIS uUUV VIVUp
Washington television and ap-
pliance dealers have taken the
first step in forming an organi-
zation it is hoped will help to
counter some of the practices
from which the business is suf-
fering.
They attended a day-long
meeting yesterday under the
sponsorship of the National Ap-
pliance and Radio-TV Dealers
Association in the Shoreham
Hotel. The dealers present were
invited to join that association
The local organization would
be composed of members of the
national body.
George C. Webster, general
chairman of the meeting, said
it is not planned to have the
proposed organization police"
the industry here. Rather, it
would be a cente for talking
over and solving common prob
lens.
Mr.. Webster, who is a mem
ber of the national association,
is general manager of John G
Webster & Sons, Inc.
Price Cutting Discussed.
Discussion at yesterdays meet
ing frequently centered on the
problem of price-cutting and the
So-called discount houses.
John F. Otter, vice president
of the Philco Corp, said most
the price wars in the appliance
business start in Washington. He
asserted that the fate of cut
price artists" is bankruptcy and
they are on their way out.
Questioned about this from
the floor, he said four big dis
count houses in New York City
have gone bankrupt, one in Los
Angeles and one in Washington.
Bob Justis, a Newport (DelD
dealer and a director of the Ma
tional association, referred to
discount houses as parasites. He
told the retail dealers, "if you
want the manufacturer to think
you don't make a 40 per cent
contribution at the point of sale
but only one of 20 per cent, he'll
find the markup should be 20
per cent"
Another speaker, r. J. McDon-
aid, of the Westinghouse Electric
Corp, said retailers can join the
"slap-happy gang which sells by
cutting prices" but if they are
really going to merchandise their
wares they have to demonstrate
them and show SalesmanShip.
Word of Cheer.
Those who are fearful of a
business recession got word of
encouragement from Thomas o.
McDavid, of Baltimore, vice
president of the Commercial
Credit Corp. He conceded the
country is experiencing the
tightest money market since the
banks closed in 1882. But to
those who are alarmed over the
expansion of installment buying.
he replied that consumer credit
amounts to only 10 per cent Of
6iSpoSable income.
I'm tired of those fellows who
lean against their new 1858 Cad
illacS talking hard times" he
added.
<. G. Roe, manager of refrig-
orator sales for the General Elec-
trio Co., gave an emphatic yes
to the question whether refrig-
orators are still the No. l ap-
pliance. He said sales of refrig-
orators amount to more than 81
billion a year. This consists
mostly of requirements, since
refrigerators become obsolete in
Is years, He added that 80 per
cent of homes wired for electric
tty have electric refrigerators.
Demand for television sets is
still growing, according to James
M. Toney, of the RCA Victor
Co. He told the dealers there
are sales prospects in the fact
there are $4,000 new families
each year in the District, and
that more than 10000 sets have
screens of IA inches or less which
offer a chance for replacement.
He said that. if the Federal
Communications Commission ap-
proves the proposed standards
for colored television, RCA can
get pilot production of color re-
ceivers next spring. He put the
initial price at between $500 and
$1,000 for a set with a 14-inch
tube.
Presiding at the meeting was
Hal Frank, a dealer of Hunting
ton. w. Va, and a director of
the national association. About
$50 dealers from Washington and
nearby cities attended.