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THE m\JSlC TRHDE
RE™
EDWARD
LYMAN
BILL,
EDITOR AND PROPRIETOR.
J . B. S P I L L A N E , MANAGING EDITOR.
EXECUTIVE STAFF :
THOS. CAMPBELL-COPELAND
GEO. B. KELLER
A. J. NICKLIN
EMILIE FRANCES BAUER
GEO. W. QUER1PEL
^ Published Evtry Saturday at I Madison Avtnut, New York.*
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Then, some of the older manufacturers have lost trade by
reason oi this cut, will make an effort, through reduction, to regain
the lost position, and so the thing goes on from bad to worse, but
it will invariably t>e found that the cutting is done by the newer
and inexperienced men rather than by the older concerns.
TT would be well to instill into the minds of some of our price-
^
cutting men the absolute necessity of keeping a fairly accurate
account of every cost on the pianos which they make.
The result
would be beneficial beyond estimate to all those in the business,
One manufacturer remarked:
"We have never been faddish
in regard to factory cost, but we have learned absolutely what it
costs us to make. We know exactly what we are capable of doing,
we know what our fixed cost charges are, we watch the daily prod-
uct.
We keep track of costs closely and expend a good deal of
effort in system, and it was only recently that our traveling man
wished to make a certain cut on our style
because Mr. So and
NEW YORK, APRIL 25, J903.
So, a new man, by the way, would furnish him a style which closely
TBLEPHONE NUriBER, 1745-EWHTEENTH STREET.
approximated ours at a less figure. We said, 'let the business go." "
On the first Saturday of each month The Review contains In its
THE
"Artists' Department" all the current musical news. This la
ARTISTS
nc-n*r>i-ue-Mi- e n * e c t e d without in any way trespassing on the size or service
DEPARTMENT of the trade section of the paper. It has a special circulation, and
therefore augments materially the value of The Review to advertisera.
DIRECTORY
The directory of piano manufacturing firms and corpora
tlons found on page 27 will be of great value as a reference for
We should say our friend was correct from a business stand-
point, but he certainly ought to give that traveling man a few in-
structions, because no well-posted salesman should permit his goods
which were old and well-known to be replaced by newer and un-
tried instruments.
He was evidently short of arguments.
EDITORIAL
course, we all realize that the extraordinary increase in re-
gard to manufactured products, which is characteristic of
statement has been made anent a piano manufacturer who
has recently become involved in financial difficulties that he
sold his goods too cheaply, and that he did not know their cost to
the present era of unparalleled commercial and industrial activity
is accompanied by a narrowing of margin of profits.
That is true, but the profits in any well-regulated business
manufacture.
There is no question but there is a lack of knowledge on the
part of some other manufacturers in not knowing what their pianos
actually cost to manufacture when placed upon the market to sell.
They fail to realize the exact aggregate in dollars and cents
of the ultimate of little expenses that enhance the cost of any in-
should not be cut until they are lost altogether.
It is all well
enough to figure that goods must be sold on a narrow margin of
profit
It is a recognized principle that instead of seeking a large
percentage of profit on comparatively limited transactions the man-
ufacturer whose methods are representative of the prevailing spirit
dividual article to a greater extent than was anticipated, or was
will be content to sell his products at a moderate advance beyond
even left out of consideration altogether.
the cost, endeavoring to make up in a greatly increased volume of
Every manufacturer should not fail to keep track of all ex-
penses of both manufacturing and selling; they should be classi-
business.
HE application of this principle has a direct and most impor-
fied in a proper manner, and beyond that a liberal estimate should
T
be made for certain contingent expenses which creep into every line
and the attainment of industrial supremacy by this country.
of manufacture.
W
tant bearing on the success of the individual manufacturer
But piano manufacturers have been working on a constantly
E could name another concern in New York that has not
reducing margin of profit, and with advancing cost in every de-
solved as yet that "trade secret" which was referred to
partment, the profits in some cases on certain styles have been
in The Review last week; that is, the cost of their goods to manu-
facture.
It should not be exceedingly difficult to preserve an accurate
estimate as to the cost of everything which enters into the con-
struction of pianos.
It cannot be doubted that much of the ruinous competition is
the result of failure to consider cost by manufacturers, and most
wholly wiped out.
There are some fortunate ones, however, whose position has
been to a degree independent and have not been compelled to give
up what is considered ^reasonable profit.
That reasonable profit surely belongs to any man engaged in
legitimate lines of manufacture.
But the cost—don't forget to figure just exactly what it is
of the trouble is made by new comers in the market, who, assum-
in dollars and cents, and then see that the selling price is a little
ing that there must be of necessity a profit in the goods, make a
more and not a little less, and it will be a mighty sight better for
cut in prices in order to get business.
the entire industry.
.. .
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