Music Trade Review

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THE
MUSIC TRADE
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EDWARD LYMAN BILL - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorlal Stall:
GEO. R. KHI.LBR,
L. B. BOWEUS,
W. H. DYKES,
F. II. THOMPSON,
J. IIATDBN CLAHKNDON,
B. ISniTTAiN WILSON,
L. J. CHAMBEHMN,
A. J. N I C K M N .
BOSTON OFFICE:
CHICAGO OFFICE
ERNEST L. WAITT, 100 ltoylston St.E. P. VAN HARI.INGEN, Room 806, 156 Wabash Are.
PHILADELPHIA:
Telephone, Central 414.
MINNEAPOLIS and ST. PAUL:
ST. LOUIS:
K. W. KAUF-FMAN.
AKOIF KDSTKN.
SAN FRANCISCO:
CHAS. N. VAN BURKN
S. IT. GRAY, 2407 Sacramento St.
CINCINNATI, O . :
BALTIMORE, MD.:
BERNARD C. BOWHN.
A. ROBERT FKENCH.
LONDON, ENGLAND: C9 Hasinghall St., E. C.
W. LIONEL STURDY, Manager.
Published Every Saturday at 1 Madison Avenue, New York
Entered at the New York Post Office as Second Class Matter.
SUBSCRIPTION, (Including postage), United States and Mexico, ?2.00 per year;
Canada. $:*.f»u ; all other countries, $4.00.
ADVERTISEMENTS, $2,00 per Inch, single column, per Insertion. On quarterly or
yearly contracts a special discount Is allowed. Advertising Pages, $60.00; oppos.te
reading matter, $75.00.
REMITTANCES. In other than currency form, should be made payable to" Edwa rJ
layman Kill.
Music Publishers'
An Interesting feature of this publication Is a special depart-
Department *• V ment devoted exclusively to the world of music publishing.
Exposition Honors Won by The Review
Grand Prix
Paris Exposition, 1000
Diploma. Pan-American Exposition, 1901
Gold Medal
Silver Medal.Charleston Exposition, 1902
Gold Medal. ...St. Loula Exposition, 1904
I.ewls-Clark Exposition, 1905.
LONG DISTANCE TELEPHONES-NUMBERS 4677 and 4678 GRAMERCY
Connecting all Departments.
Cable address: "ElblH, New York."
NEW YORK,
OCTOBER
17, 1908
EDITORIAL
HE opinions of dealers which are presented in another portion
of this paper will be read with interest by the trade. The story
of the business situation is told by the men who sell the product and
after all who is better able to judge of conditions than the men who
are on the ground and who are carefully observing every change
in the local trade situation?
These communications were received in response to a query
sent out by The Review some two weeks ago, asking for information
concerning the condition of trade as compared with 1907. Also the
state of collections and piano repossessions, as well as other opinions
regarding the future of trade.
We might say in this connection that since the letters were sent
out, conditions have steadily improved so that the trade is generally
better than when the first replies were received to our query. It
has been impossible to reproduce all the communications which we
have received, but we have fairly covered the country and have
presented opinions which are representative of the whole.
Nothing of a pessimistic nature has been suppressed, so that the
worst is told regarding business condition in our columns. These
opinions are mighty interesting reading, because they show that
there is not only an optimistic spirit throughout the country, but
dealers are doing a good business, particularly in the Central West.
Business in New England, too, has improved materially within
the past two, or three weeks and, summing up the situation broadly,
it is most reassuring. Music trade men everywhere will read with
gratification of the optimistic spirit which prevails in this trade,
expressed in this issue of The Review should be an in-
'"n to manufacturers and dealers to go ahead and place re-
^v upon their business enterprises. A little more ginger
T
REVIEW
fail to see in this connection why any particular firm should be
censured for following out a policy which has been adopted by
some of the best known manufacturers and dealers in many parts
of the country during the past five years.
As a matter of fact, men engaged in trade are quite likely to
pursue business methods which they deem capable of interesting the
public without any particular regard for the feelings of their local
competitors. The mere passage of resolutions by any association
does not put a stop to practices which may have been in vogue
formerly.
The contest form of advertising has obtained in many trades
and apparently it has been the means of drawing in business—at
least it has been interesting to the public, and dealers who have in-
dulged in this plan have been liberal purchasers of advertising space
in local papers and, as a rule, their contest plans have been brought
tellingly before the public. They have secured many names and
they have let the public know that they were engaged in the busi-
ness of selling pianos.
While it may be said that the form of contest advertising is not
dignified and injures the legitimate trade, yet how can its elimina-
tion be accomplished so long as men who follow this line of publicity
live up to promises made in their offers to the public?
/COMPETITION takes so many forms that it is hard to watch,
V^y but it is generally admitted that price-cutting is one of the
severest forms of competition and this truth cannot be driven home
too strongly upon the manufacturing and retail trade.
Price-cutting frequently originates among men who are forced
to cut prices in order to meet maturing obligations and that kind of
competition which comes from the men who do not pay their bills is
mighty difficult for the man who meets his obligations to cope with.
Such competition is demoralizing to the legitimate trade.
There was a piano corporation in this city which went to pieces
over a year ago and for a year before the final smash came it was
a constant demoralizing force in the wholesale market. In order
to raise money to tide over temporary pressure, its representatives
slashed prices so that everyone who bought their pianos knew that
they were getting instruments at less money than it cost to manu-
facture them, but knowing that, they did not hesitate to buy.
And, on the other hand, how could a manufacturer who met his
obligations promptly meet such an illegitimate competition? This
condition existed until the resources and credit of the concern were
exhausted and the smash came. Everyone had looked for the crash
to come sooner, but by sending out goods at less than cost to raise
money they were able to defer the reckoning day until a later period
than many had anticipated. In the meantime, the serious effect of
such competition has been widespread.
A good many dealers to-day demand from other manufacturers
of commercial pianos prices which correspond with those offered
by the defunct piano corporation. This is unfair to the legitimate
makers as price-cutting usually comes from men who are forced
to annihilate prices in order to tide over some pressing need. Price-
cutting with the dealers comes from a somewhat similar cause.
Some dealers upon misrepresentation of their financial standing may
obtain a long time credit and put out pianos on all kinds of terms
with the intention of getting in what money they can before the
smash-up arrives. How can the local dealer, who pays his bills,
meet such competition? It has been this demoralizing influence of
price-cutting which has worked evils in this and every other trade.
O
F course, there are several forms of price-cutting. Manufac-
turers or dealers may cut prices on particular styles which
have been abandoned and, naturally, such a policy is in accordance
with business ethics. No one can question such price-cutting, but
there is no question that the effect of price-cutting in the retail busi-
ness is more or less severe.
Price-cutting may be done either by a firm with more capital
than another or by the firm who watches the business products
more closely and buys goods especially for sales.
A case typical of many instances of this kind of competition is
that of two dry-goods dealers of the same town. Both men were
about equally supplied with capital and apparently all things were
equal. One bought In the usual way, paying the regular prices, and,
sections of the country a deeply-seated
of course, securing the usual discounts. The other went personally
~>s of coupon advertising, and we to the markets of New York and Chicago and made a specialty of
•^st advertising plan, but we
buying bankrupt stock in job lots.