Music Trade Review

Issue: 1898 Vol. 27 N. 20

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
K+-EDWARD LYM \N
Editor and Proprietor
PUBLISHED EVERY SATURDAY
in this. We do not mean that the install-
ment business should be discouraged, but
we do claim it should be relegated to a
subordinate position and that more em-
phasis should be placed upon securing cash
business than upon installment contracts,
many of which become enormously de-
preciated.
With many it has been the desire to get
a
large number of instruments out, no
SUBSCRIPTION (including: postage), United States^
Mexico and Canada, f.2.00 per year ; all other countries,
matter what the contract terms. They
$300.
ADVERTISEnENTS, $2.00 per inch, single column, per
have not looked to the future, but have
insertion. On quarterly or yearly contracts a special dis-
count is allowed. Advertising Pages $50.00, opposite read-
ing matter $75.00.
been satisfied for the moment with a very
REMITTANCES, in other than currency form, should
be made payable to Edward Lyman Bill.
delusive present.
Entered at the New York Post Office as Second Class Matter.
Let us ask, is it business to sell a $300
or
$400 piano on $5.00 a month payments?
NEW YORK, NOVEMBER 12, 1898.
—on even loss ? Is it business to have
TELEPHONE NUMBER, 1745—EIGHTEENTH STREET.
that amount of capital locked up in an in-
THE KEYNOTE.
strument for years, subject naturally to an
The first week of each month, The Review wilt
contain a supplement embodying the literary
enormous decrease in value?
and musical features which have heretofore
Some may argue that there are good
appeared in The Keynote. This amalgamation
will be effected without in any way trespassing
round
profits on pianos ordinarily sold at
on our regular news service. The Review will
continue to remain, as before, essentially a
these figures, and that the dealer can afford
trade paper.
to take generous risks; but we claim at
INSTALLMENTS AND DEPART-
this point that there is injected into the
MENT STORES.
business a dangerous element.
VI/HAT of the future?
The department store salesmen to-day
We are all interested in that topic, are claiming in substance to the public,
and when we say, what of the future in You will pay from $300 to $400 at the ex-
the manufacturing and selling of musical clusive piano stores for instruments on the
instruments—the interest becomes intensi- installment plan, no better than those that
fied for those of us who have personal in- we will sell you from $125 to $150. Why
terests at stake.
pay the piano dealer an enormous profit ?
As the modern methods of manufacture
That they are gaining is attested by the
and the distribution of merchandise are steady increase in the output of pianos
rapidly replacing the old, it is well to look from department stores that sell strictly on
around and adjust ourselves to the new a cash basis. They argue in substance
conditions. There are new factors which with their customers: We turn our money
are being daily introduced in every sub- quickly; paying cash and selling for cash
division of industry.
Other industries we can afford to sell on close margins, but
have their future problems to solve, and the long-winded installment fellows cannot
we probably will find that most of our at- compete with us in their method of doing
tention is required to the solution of those business.
which are closely interwoven with our own
The dissemination of arguments of this
trade. .
nature is having a certain effect which in-
3 East 14th St., New York
We shall return to the installment mat-
ter later, but while on the subject of possi-
ble changes necessary for trade betterment,
it occurs to us that the stool, scarf, free
cartage, free tuning and free music lessons
has about reached a point where it will be-
come necessary to include a piano as well,
unless a halt is declared on this free busi-
ness. If the evils of reckless competition
are not apparent in this trade, tell us, pray,
where we shall look for them.
Taking at random an extract from a
number of advertisements which lie before
us, we clip the following from an adver-
tisement of Goetz & Co., Brooklyn, in the
New York Journal :
NOTICE—We will give free with each
of following pianos stool, scarf, free
cartage and free tuning for one year ;
also, take back the piano any time be-
fore January 1, 1900, and allow all you
paid for it in part payment of new
piano.
In the same advertisement Goetz & Co.
offer to sell the line of pianos enumerated
in the advertisement from $3.00 to $5.00
monthly. They offer also to rent pianos
from $2.00 monthly upward.
Now, isn't it time to call a halt upon this
sort of thing ?
Can we better business conditions in
this trade by adhering to such methods in
retailing musical instruments ? Sold on
$3.00 to $5.00 monthly payments and free
everything ! The piano business is all
right, but it needs adjusting to the times.
Certain excrescences which have develop-
ed should be removed with the keen
scalpel of common sense. " Auction sales,"
"fire sales," "alteration sales," "defiance
sales " and all other "sales " are a regular
feature of our modern commercial life.
They are necessary to stock cleaning, and
a very convenient expedient to raise ready
cash, or to emphasize a particular product
before a community. Cleaning up sales
are all right. Napoleon used to remark
when reference was made to the number
of troops left on the battlefield, "You
can't make an omelet without breaking
eggs," and many dealers, no matter how
active or aggressive, can't work off the
odds and ends without the annual special
sales inaugurated under some catchy head.
All "sales "are all right save the install-
ment sale, as commonly interpreted to-day.
Two dollar a month installments !
Over three years to pay for a seventy-
five dollar, second-hand "rattle box."
Business, is it ?
Better, business suicide.
The Review, as a representative trade terpreted'means that the department stores
medium, believes in constantly agitating will gain more and more of the cash trade
those principles which have direct bearing from the piano dealer unless he adopts
upon the industry.
retaliatory measures to counteract the de-
We talk to a large audience weekly, and partment store influence. In this connec-
we propose to devote the editorial columns tion we would suggest the insertion in the
of this paper to the discussion of topics regular dealer's advertisements which con-
which are of vital importance to the trade. tain the names of reputable pianos, words
One of the matters which we have been which shall convey the intelligence to the
emphasizing is the sale of pianos on such in- people that " just as good pianos can be
finitesimally small monthly installments— found at their stores and at lower prices
that unconsciously we have drifted into the than the department stores off er," to use as
installment rut, so that it is to-day the a catch line the words ' 'department store pi-
dominating feature of the advertisements anos at less than department store prices."
which appear in the daily press offering Let this sentiment take the place of the
pianos to the public—that the average installment message to the people which
TRUST THOUGHTS.
salesman talks installment when he should appears in so many advertisements. In- \ 1 7 E hear considerable in this trade of
be talking cash.
stallment sales may be good but cash sales
the absorption of the smaller enter-
We affirm that there should be revision are a mighty sight better.
prises by the greater, and that eventually
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
the outcome must be a piano trust, which
shall control both the manufacturing and
retailing of musical instruments.
From the inception of the trust scheme in
the piano trade we have been firm believ-
ers in its impracticability. We believe,
too, that the dangers to small industrial
establishments from consolidations of the
present day are overrated except in those
cases in which they absolutely control cheap
raw materials or secure exceptional facili-
ties from common carriers. In the latter
respect, public opinion has some voice,
and its power should be invoked. For the
ambitious, progressive and talented indi-
vidual there is as much of an opportunity
as there has been. It is capital not brains
whose rewards are shrinking inevitably.
A piano trust would be a difficult com-
'bination to build.
It does not require much capital for a
makeshift piano plant, capable of turning
out a few pianos a year. There are many
of them in this country now, and the for-
mation of a trust would mean an increase
in this special branch of competition. Were
it a settled fact that a piano trust had been
formed, scores of young piano manufactur-
ers would spring into life within a month,
all agreeing to undersell trust prices, for-
getting that low prices are indirectly the
causes of the formation of trusts. At least
they have forced the issue a half century
earlier than it would have come under
prosperous conditions. Great concentration
of wealth is always balanced by great pov-
erty, and any measure which tends to bring
about an impoverished condition of the
masses is ruinous to the country.
Our friends should lose no sleep from
the piano trust scheme.
The power of such a corporation is
far less than appears on the surface
. so far as the capacity for cheaper
production is involved.
They are at
a disadvantage usually in possessing a
smaller or greater number of plants or
parts of plants which are inadequate or in-
efficient. Stripped to fighting form, nim-
ble in movement, supple in limb, small
producers have ample opportunities for a
profitable career in this or any other in-
dustry. We are face to face with new
conditions and principles, but the scope
and usefulness of business men is not re-
stricted by the application of those princi-
ples. The new era puts a premium on
brains and energy—on youth and strenu-
ousness. There can be no trust of brains.
While one may assume that, theoretically,
consolidation is a powerful instrument of
economic progress, that those who struggle
against the swiftly running tide are des-
tined to sink, yet as a matter of fact, nearly
all of the great aggregations are vulner-
able to some extent. This is shown in the
history of the majority of consolidations.
The seed for their destruction is already
sown before they are combined, and de-
struction is inevitable unless successful,
able management overthrows inherent
evils.
"THE $75.00 BOX/'
MANUFACTURER of national re-
pute remarked the other day, "if
the price-cutting evil continues in the
manufacturing branch of the business, it
is difficult to predict what will be the
ultimate outcome."
Manufacturers should be reminded of an
element which has been instrumental in
bringing about these conditions. We do
not mean that an individual has changed
economic laws, but we do claim that an in-
dividual has been instrumental in accele-
rating the conditions which should not
have reached us for a decade yet.
To explain.
Years ago when there was not a piano
manufactured within the precincts of
Greater New York for less than $100, an
editor of a music trade paper began to rant
about the "$75.00 Box." Week after
week the words "$75.00 box" were kept
in huge type at the head of a column. As
papers were scattered throughout the
Union this educational work went steadily
on, that pianos were offered at $75.00 when
as a matter of fact they were not.
Dealers after a while began to try to
force the manufacturers down in prices.
Through the same instrumentality state-
ments containing wholesale cost of instru-
ments and all parts thereof, in fact every-
thing which enters into the compilation of
pianos was given at length, showing how
these " $75.00 boxes " could be built, when
as a matter of fact they were not then in
existence.
All this began soon to be felt by the
manufacturer. We have in mind a case
where one of the best known manufactur-
ers of Boston was visited by one of his
western dealers, who, during his visit, de-
manded lower prices, producing a clipping
from this same authority showing that the
manufacturer could build pianos at a ridic-
ulously low rate, and that he was growing
wealthy out of the enormous profits which
he received. To show how superficial,
how illogical, how unfair was the cam-
paign carried on by this agency, we would
state that this man who attempted to
browbeat a manufacturer of well-known
pianos, had his veneers, in his statement,
figured at a price ten times lower than the
manufacturer had paid for any veneers.
A
ever placed upon instruments which he
manufactured. And this sort of education,
which was calculated to lower the entire
industry, was carried on to the detriment
of the manufacturers.
As the result of natural laws we should
have ultimately reached a position of low
cost of production.
We should have
reached this stage in a few years, and
we should have arrived at it fairly, had
not our pace been hastened by an influence
which has had a tendency to blacken
everything with which it has come in con-
tact—an influence which has lowered the
dignity of the trade—which has assailed
the integrity of individuals—which has at-
tacked personal honor—which has never
yet been credited with assisting toward a
trade benefit, or performing any act of
honor which should entitle it to the respect
or consideration of the members of this
industry.
Do you know the influence, gentlemen?
Who cried the " $75 box " ?
Reflect a moment.
A Gabler Brochure.
IN GREEN AND GOLD THE NEW STYLE GAB-
LER.
Piano manufacturers have been quick to
appreciate the advantages of aesthetic ad-
vertising. We have frequently noted in
The Review the many charming brochures
which have been sent us by enterprising
manufacturers. One of the latest we have
received is the Gabler brochure, a charm-
ing little work with covers of green and
gold. It is of convenient size, printed on
handsome tinted paper, and tells briefly of
the conquests won by the Gabler in the
sound world. There are illustrations and
minute descriptions of the new style Gab-
ler uprights as well as the new Gabler
grand.
We have recently had the pleasure of
inspecting the new styles C, S and M,
and affirm that while the cuts are very
clear they do not do full justice to the
architectural beauties of the new Gabler
claimants for trade patronage. One must
see and hear them to fully appreciate their
merits. The word Gabler, which is now
used in place of the entire firm name, upon
the fall board of the instruments, is a
change for the better. It is brevity now
in everything. The little work referred
to will form a valuable medium for the
salesmen and dealers to make the Gabler
instruments better known to the public.
The catalogue was compiled and arranged
under the direction of Ernest Emil Gabler
and it shows that young Mr. Gabler has
artistic ability of a high order.
A German inventor has discovered that
celluloid can be used for the manufacture
of the vibrating parts of musical instru-
ments, in place of metal, the substitute
being entirely free from rust and having a
tone equal to that of the metal reeds.

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