LP Record Prices Slashed 33%; Dealers Worry as Sales Increase

Harvard Square record merchants are caught in another national price war this week, with prices on long playing London, RCA, and Columbia records cut by as much as a third.

None of the local dealers were willing to predict how far the struggle will go. Unlike many past reductions, the current price slashes have been announced as permanent.

London and RCA cut all prices by about a third at the beginning of the year. Columbia yesterday matched these companies by cutting about 70 percent of their recordings from $5.95 to $8.95.

Although all new shipments come from the companies at reduced rates, dealers will take a heavy loss on inventory stock bought at the old prices. Their only gain will be in possible increased sales.

In a similar fight last winter, the slashes were suddenly cancelled after about a month. Dealers then regained most of their losses by selling records bought cut rate at the regular price. Harvard Square's three merchants did not expect a similar happy ending to the present trouble.

Another result of the new prices has been to push 78 RPM recordings even further out of the market. RCA even raised prices on 78 RPM while cutting long playing recordings.

Although dealers are not required to follow the recommended cuts, competition will certainly force prices to the level suggested. Minute Man Radio Company is even contemplating further cuts, running up to 40 or 45 percent of the old prices.

Not all records, however, have been similarly reduced. Some $4.95 and $5.95 records will retain their old price tags.