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THE MUSIC TRADE
is as impotent in influencing its progress as a potato bug on a loco-
motive wheel.
"Optimism wins!" That is the song of success, of progress, of
victory.
It pays to be optimistic in the piano business, and not be forever
looking upon the dark side, and there are plenty of bright spots in
this good old industry of ours, if men will only look about for them.
No man ever won lasting success unless he was an optimist.
DEALER who is desirous of disposing of his business asks of
The Review what the good will of a business, such as he has
to sell, would be worth.
It is a pretty difficult proposition to estimate the g'ood will of any
business. Good will is a hard commodity to deliver. It has been
considered a valuable asset in a business, particularly when sold to
other parties. The term is meant to designate the intangible but still
important factor which has made the business successful in the first
place, and which is in almost every case relied upon by the purchaser
to continue its success.
It is indeed difficult to estimate, because under new management
good will may be rapidly depreciated. One cannot deliver a trade
in the sale of a business with the guarantee that the trade shall con-
tinue coming to his establishment. It is worth probably as much in
the piano line as in any other, but of course very much more in the
manufacturing end.
A
T
H E good will of any concern is of course dependent upon many
conditions and facts. If a house has been established a good
many years and is looked upon as progressive and reliable, its good
will has an appreciable value, though the house may be more con-
servative than enterprising. It is likely to have a list of customers
whose patronage of the house dates back for years, and also a good
sprinkling of the newer, who are valued as loyal customers, and who
are attracted to the house by the fact that it is long established and
thoroughly reliable.
There is no doubt but that the good will of some of the retail
establishments of this country is considerable. In some cases it is
an accumulation of many years of honest business dealings.
T
HEX, again, there is a value in the good will of a house which
has built up a large business by modern enterprise and
up-to-date hustle. The adage, "Nothing succeeds like success" is
one which may be fairly applicable here.
Again, good will may be the real value of an article of manu-
facture which has been popularized by strong, continued and aggres-
sive advertising. But at best good will is an intangible asset, and it is
argued that no man can guarantee customers. However closely the
lines of the old concern are followed some changes must naturally
and invariably result through the inauguration of new owners and
managers, and these changes may and usually do result in the with-
drawal of some trade. Some customers are held simply by friend-
ship, others by sentiment, and the change of concern is frequently the
last and decided reason for the transference of a customer to another
house. The good will of a business is indeed difficult to determine.
We should not like to place an estimate upon the good will of the
business of our. subscribers.
REVIEW
way. The business began to expand, and the prestige of their pianos
was materially augmented. The personalities of the men behind the
enterprise began to be felt. They won the respect of all with whom
they came in contact, and their business has gone on steadily expand-
ing. They are now occupying a large and splendidly appointed fac-
tory in Boston, and one of their successes last year was their special
product—the McPhail quarter grand. This concern has plans for
the new year which must materially increase the prestige of their
instruments.
T
HEN, in New York, we have a number of young men at the
head of most important music trade institutions.
Take the Steinway establishment, the Aeolian-Weber and many
others, and we will find young men directing them.
One of the most remarkable enterprises in this industry which
has evolved within a few years has been brought about through the
business energy of Geo. G. Foster and W\ B. Armstrong. Their big
factories at Rochester show a marvelous conception of the piano
business. And then, if we go on through the West, we will find the
same condition existing. Curtis N. Kimball, young in years, is the
head of the great Kimball interests. It is the day of the young man
in everything, and we may as well say "Hats off!" to the young men
of to-dav.
T
H E author of the graded list of pianos which has been ci-rculat-
ing throughout the Far W'est should be brought up with a
round turn. He is entering on very dangerous ground when he as-
serts that his graded list was compiled and authorized by the Piano
Dealers' Association of America.
This is using the name of a reputable organization to father a
fraud. A rank fraud at that, for the "graded list" is the worst im-
position ever yet foisted upon this industry.
I
F the manufacturers were to establish a retail price for their vari-
ous instruments, would that not be a death blow to the special
brand business which is steadily growing, and is in some sections
having a serious influence upon the instruments which bear the man-
ufacturer's brand?
Certainly something must be done to counteract this business,
which, if continued, will have an effect to steadily reduce the quality
of the retail sales.
The special brand business will not affect, for a while at least,
the piano leaders; but if instruments under all sorts of names which
do not indicate their origin are offered to the public, they cannot have
other than a deteriorating effect upon the entire piano industry.
I
T is useless to argue from any other standpoint, and it would sur-
prise a great many people to know to what extent the special
brand business had developed within the past four years. Sewing
machine manufacturers, boot and shoe men, and even cigar men place
upon their products pricings which indicate the retail values which
they place upon them. Why should not piano men? Why should
not the men of this industry, in which a trademark is of greater
value than any other that can be mentioned, be willing to place all
the safeguards that they can about their names, so that the public
may be insured they are not overcharged when they purchase their
instruments ? The manufacturers really hold the key in their hands
OW many young men to-day there are at the head of great en-
of the whole situation—that of driving the special brand out of the
terprises, not only in this industry, but out of it. Go where
market entirely, and of doing away with the overcharge in pianos.
you will from the Atlantic to the Pacific, you will find men young in
There is no single move that can put the business on such a sure
years directing vast business aggregations. We find many, too, who basis as for manufacturers to place a fair retail price upon their
have won high positions on account of their earnest application and
various styles.
endeavor.
Steinway has not hesitated to inaugurate this plan, and it is an
If we look over this trade in the West we will discover that
example that should be followed by others.
young men have worked their way up and are successfully engineer-
ing growing enterprises. Somehow, we expect that in the West, but
H E fact that the two trade associations of the manufacturers
the East is not different, and in New York and Boston we can name
and dealers will hold their annual conventions at separate
a number of institutions where the young men have succeeded in
points, and upon different dates, will probably have a tendency to
developing magnificent business properties.
decrease the attendance in both cases. This separation will leave
each organization free to devote more time than before to the discus-
sion of matters of vital interest to the trade.
AKE, for instance, the McPhail Piano Co., a long time estab-
lished concern, but one that occupied an indifferent position
It has been claimed that the attendance at the various meetings
until two energetic young men assumed the control of the destinies
of the two trade associations has been seriously hampered through
of the old corporation. In their management of this institution Geo.
business appointments which prevented members from attending the
F. Blake and Francis H. Owen have exhibited commendable enter-
regular sessions. The business element at the convention has been
prise. They began in a modest way, and by an adherence to correct
steadily growing for years, and it will be interesting to note just what
business methods their influence was quickly manifested in a larger
effect the separation will have upon the associations.
H
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