GUARANTEE OF CAPACITY WANTED.

Radio Record, Volume I, Issue 30, 10 February 1928, Page 4

GUARANTEE OF CAPACITY WANTED.

It is stated by the writer of our section: "With Dealer and Customer" that radio trading circles in New Zealand are now experiencing something in the nature of an economic clean-up by reason of the fact that many who entered the business with little capital, and in many cases, insufficient technical knowledge to be sound guides to an enthusiastic but ignorant public, are now being forced out of business. A certain number of liquidations have taken place, and more seem to be pending. For this reason it is predicted that the number of radio dealers will show a decline after March 31, and the writer contends that this will be in the best interests of radio and the buying public. The line of reasoning followed seems sound. Throughout New Zealand there are nearly 1800 individuals holding dealers’ licenses. Allowing for the fact that many of these are held by employees, we believe we are correct in saying there are approximately 1200 individual businesses licensed as radio dealers, and seeking for business from a present total of about 40,000 radio sets. On the face of the figures it can’t be done; there is not sufficient business passing to maintain this overhead, and it will be a good thing for the public for wasteful duplication of effort to be cut down. It is incorrect that competition always means cheapness; under the conditions of a fairly good public demand, an excessive number of competitors for that business means the maintenance of unduly high prices, so that each may secure a reasonable personal profit to cover overhead. Another factor in the situation has been the unchecked licensing of what the Australian Royal Commission called "the backyard manufacturer." It is to be feared that a big percentage of these have been mainly interested in becoming licensed for the sake of personal discounts. Our contributor points out that economic forces are helping straighten up the position, but he indicates that the position might have been controlled, and the public protected by the radio dealers’ license being required first to indicate a standard of professional capacity, and secondly a financial standing sufficient to guarantee stability in business. In other words, the radio dealer’s license fee should be very much heavier than it is-sufficiently heavy to require financial soundness on the part of those entering the business. We agree with this view, and certainly think that radio will benefit, and the public secure greater protection in the matter of price and service by a higher standard being required to qualify for a radio dealer’s license. We believe it would be a good thing for the community if the request made in this direction-for a stiffer fee-could be agreed to. Pending that, economic forces must play their part.