August 29

[The Story Teller]

August 29
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The Automobile Radio
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“Now let’s use our nutpickers on this problem, and then we’ll decide what it is we have to do. Then let’s do it.”
—Paul Galvin
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Paul Galvin’s radio business was doing pretty well in 1929 until “Black Friday” hit. After the devastating stock market crash, larger manufacturers began dumping radios on the market, and Galvin’s retailers stopped orders and wanted to ship back products. Galvin found himself saddled with big shipments from suppliers for parts he could no longer use. Galvin traveled from Chicago to New York to work out a deal with one of his suppliers, and while there he heard about people who were putting radios in cars. They charged about $250, and each installation was a custom job. On his way back to Chicago, Galvin began to believe that his company could develop a lower-price automobile radio, one for the mass market.



The men at Galvin’s shop gave it a try, but the automobiles of the day were not designed to accommodate the bulky tuner, battery, and speaker. The antenna had to be placed in the headliner, requiring the liner to be torn out and then replaced. Installation could take two days. After convincing a banker to give him a loan, Galvin’s men installed a radio in the banker’s car—but the vehicle caught fire thirty minutes later. Galvin went to a radio convention, and having no exhibit booth, he drove his car around the convention center as his wife convinced potential customers to take a demonstration ride. Little by little, the car radio was perfected, and one morning while shaving, Galvin came up with a new name for his product: “Motorola.”



Consider This: In the face of disaster, some people will quit. Others will seek new ideas and new ways of meeting the challenge. Which one are you?



Submitted by Richard