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THE MUSIC TRADE REVIEW
J
UST such instances as the one we have named have more of a
far-reaching effect upon the trade than many imagine. They
are libels on the fair name of the industry, for the cases receive,
through the columns of the daily papers, considerable publicity, and
bankers who scan the special reports from every trade figure that if
institutions are formed on such a basis and are given a generous
line of credit that there must be weakness somewhere and as a
result oftentimes men who are deserving of special favors at the
hands of banks find their paper rejected.
Of course, such examples are not common, but evil travels faster
and has a longer life than good, and these instances linger a long
time in the memory of financial men with whom they generate a
feeling of suspicion or distrust, call it what you will, for certain
trade paper which may be brought to them for discount.
11
live interest in his task. Never mind about eternally bringing up the
past; what was good enough twenty-five years ago does not meet
the requirements of 1905.
T
HE up-to-date merchant is the one who is looking for new ideas
to stimulate his business. He does not know it all. He listens
and he thinks, and instead of taking up the whole time attending to
minor details he is planning. The turning over of stock interests
him of course, and the thinking man will turn them over into profit.
He, too, is ever sympathetic with his salesmen who have suggestions
to offer. He is always remembering that the people are being inter-
ested in many directions, and he is active in increasing the interest
in his store. The thinking man operates his business as the Japs
do in war. He gets there. He never gets rattled or "jollied" into
handling too many pianos. He knows what it costs to sell pianos,
the
thinking man does. He keeps a keen eye on his competitors,
N the same way it affects piano leases which may be put up as
too.
He is ready to jump in and wake things up in any weak spot
collateral. Too close a scrutiny cannot be made of all facts
and
he
is very careful to cultivate the good wises of discriminating
regarding the incorporation of any concern which desires credit.
influential
customers. His salesmen know how many white keys
Any man who is honest in his purpose and who desires special
there
are
on
a piano, and how many black ones as well. He knows
favors of his fellowman should not be ashamed or afraid to reveal
a whole lot, the thinking man, and a whole lot that he never
his entire inner condition to those whom he expects to extend to him
expresses, and if you ask him how many times he turns his stock
the helping hand.
a year he might, well he might whistle, if he felt like it, and you
There are singular conditions surrounding mercantile credits.
would know just about as much as you did before, but he would
A man who would not loan fifty dollars in cash to an individual will
know it all, the thinking man.
deliberately extend to him a loan in the way of credit of thousands
of dollars in merchandise
DEALER while discussing the conditions in his section with
The Review last week remarked, "You New Yorkers have
HY is this? Surely the manufacturing profits on all lines of
little idea of competition. I sent out a salesman to close up details
staples are exceedingly small. The substantial profits of
in connection with a sale which I had considered practically made.
years agone have been materially lessened each year, so that when a
The house was in the country and not very large at that—but when
manufacturer extends a line of credit of thousands he is including
he reached there he found five pianos from five different concerns
in the deal a large element of risk, and still while his manufactured
competing with my own in the parlor of the customer. There was
goods cost him a great deal of money he frequently passes them
hardly enough room to walk between the pianos, and every one of
over into the custody of men to whom he would not loan even a
the
representatives was present. And such a wrangling and price
trifling amount of cash. What is the difference between cash and
cutting
circus you in the East could not well imagine."
merchandise in the credit world? Merchandise surely is the equiva-
No,
we have troubles of our own, however, but such sights
lent of cash, and the retailer is enabled to turn this merchandise into
as
our
friend
indicated are not common in this part of the country.
cash, which, in numerous instances, is not returned according to the
The
evils
of
price
cutting, however, are with us always in all sec-
terms of the manufacturer.
tions and successful business men deprecate the reprehensible prac-
tice of cutting prices in an endeavor to undersell a competitor,
OW many times should a piano stock be turned in the course
regardless of whether such prices represent profit or not.
of a year? asks a reader.
I
W
A
H
The question is not an easy one to answer. In fact it is impos-
sible to lay down a hard and fast rule. There are so many circum-
stances that go to alter conditions. It is obvious that a concern
located in a great center of population with ample capital, is in a
position to turn its stock more frequently than a store situated in a
smaller town and where, even with extensive advertising it would
be impossible to turn stock as rapidly. But to frequently turn stock,
authorities say is unquestionably a good thing, yet this disposition
can like all other good things, be carried too far, because in turning
stock too rapidly, it is not turned advantageously, and when busi-
ness is not conducted at a profit, it ceases to be good business. It is
safe to say that many a piano merchant does not know the actual
cost to him of turning his stock.
A MAN the other day stated to us that it cost him so many dol-
J\
lars to sell a piano and yet when his attention was called to
certain items that he had not figured in his estimate he admitted that
his reasoning was glaringly incorrect, and still he had been conduct-
ing his business on the supposition that it cost him so much to sell
a piano when he was not within twenty dollars of the actual cost.
This man, by the way, was wondering why he had not made
more money when he conducted such an apparently paying business
enterprise. So in turning stock, it is well to see that it is turned
with profit, for it is only the merchant who is selling goods at a
profit who can pay his bills. And it is mighty important in these
days of close competition that a good credit may be maintained, and
the only way to maintain it is to meet business obligations.
OME men have no patience with innovations. They prefer to
cling to the old musty, worn out theories of the past, and any inno-
vation and any new suggestion invariably gets a good knock from
them. Such men usually will be found pacing around doing things
S
that a five dollar a week boy can do and do it well, and take a real
ERCHANTS ever ready to underbid a competitor compromise
one of the meanest obstacles that honorable and legitimate
dealers have to contend with. Customers do not respect a retailer
who constantly recedes from his original price.
Piano customers are usually suspicious, and are afraid that
some other person has secured the piano for less, but they can have
no confidence in the values which the piano man offers if he proves
to them that his first price was not a correct one. All piano men
should know the necessity of the confidence of the people in suc-
cessful retailing. The habit of price-cutting is an open acknowl-
edgment that the original asking price was not honest.
It is pretty sound business to have the first price, the right
price, and then stick to it, no matter whether there are one or fifty
pianos in a contest. No man can be injured by standing up for
what he considers the right proposition, and if a merchant has con-
fidence in his own wares he will stick to his price, because it is right,
and because it is sound business logic to do so.
M
HE first of the month a substantial addition was made to the
editorial offices of The Review. Our present quarters give us
sixty feet on Madison avenue and twenty-five feet on 23d street. This
move serves to emphasize the growing business of this publication
which has its home in the finest office building in the world, situ-
ated in one of the most central locations in New York. This trade
newspaper business has not shown an alarming or phenomenal
growth; it has steadily expanded and has gone onward without any
spurts, gathering strength with the passing of each year.
The Talking Machine World, the only journal of its kind in
America, is also a part of this newspaper institution, and this journal
has made most satisfactory advance during the few months of its
existence. This paper strengthens our combination, as it gives us a
wider distribution, and in channels which have not hitherto been
covered by any publication in this country.
T