Music Trade Review

Issue: 1911 Vol. 53 N. 24

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
REVIEW
EDWARD LYMAN BILL - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorlal Staff:
GLAD. HKNDEHSON, EUGENE C. MAYER, H. E. JAMASON, B. BRITTAIN WILSON, W. H. DYKES,
A. J. NICKLIN,
AUGUST J. TIMPE,
WM. B. WHITE,
L. E. BOWERS.
BOSTON OFFICE:
JOHN H. WILSON, 824 Washington St.
Telephone, Main 6950.
CHICAGO OFFICE:
E. P. VAN HARLINGEN, 37 South Wabash Ave.
Telephone, Central 414.
Room 806.
MINNEAPOLIS and ST. PAUL:
ST. LOUIS:
PHILADELPHIA:
R. W. KAUFFMAN.
ADOLF EDSTEN.
SAN FRANCISCO:
CLYDE JENNINGS.
S. H. GRAY, 88 First Street.
CINCINNATI, O.: JACOB W. WALTERS.
BALTIMORE, MD.: A. ROBERT FRENCH.
LONDON, ENGLAND: 1 Gresham Buildings, Basinghall 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; Can-
ada. $3.50; all other countries, $4.00.
ADVERTISEMENTS, $2.50 per inch, single column, per insertion.
On quarterly or
yarly contracts a special discount is allowed. Advertising Pages, $75.00.
REMITTANCES,
in other than currency foi-ms, should be made payable to Edward
L-yman Bill.
Music Section
An important feature of this publication is a complete sec-
tion devoted to the interests of music publishers and dealers.
Jinii
Departments conducted by an expert wherein all ques-
allU
tions of a technical nature relating to the tuning, reg-
nonarlmonfc
ulating and repairing of pianos and player-pianos arc
l l t p d l IIircill&. d e a i t with, will be found in another section of this
paper. We also publish a_ number of reliable technical works, information concerning
which will be cheerfully given upon request.
Exposition Honors Won by The Review
Grand Prix
Paris Exposition, 1900
Silver Medal, . .Charleston Exposition, 1902
Diploma
Pan-American Exposition, 1901
Gold Medal
St. Louis Exposition, 1904
Gold Medal. ...Lewis-Clark Exposition, 1905
LONG DISTANCE TELEPHONES-NUMBERS 4677 and 4678 GRAMERCY
Connecting all Departments.
Cable address •• "Elblll. N e w York."
NEW Y O R K , DECEMBER 1 6 , 1 9 1 1
EDITORIAL
REVIEW
annoying to piano manufacturers, for they cannot make up stock as
they would wish, and it means small but frequent orders.
The Presidential election is ahead of us; but that is not always
a necessarily bad factor. All depends on the real condition of the
trade in general, for there have certainly been Presidential years
when business was not affected to any visible extent. In the coming'
campaign there are the tariff and the financial and the corporation
problems to be settled; but they are expected to drag along. With
business well liquidated, and stocks in all hands down to a minimum,
the chances for serious disturbance are believed to be more remote
than was lately thought.
T ) T A N O puzzle advertising which The "Review has been strenu-
X
ously and successfully fighting for vears past, and which as a
result is now ranidlv disappearing, was the subieot of one of Wm.
C. Freeman's advertising talks in the Evening Mail of Fridav: He
said: "The George P. Bent Piano Co., of Seattle. Wash., printed
an unusual advertisement in the Post-Tntelligencer of that city re-
cently. It frankly commended the attitude of these advertising
talks and some newspapers toward piano puzzle advertisements. A
copy of this advertisement was sent to the newspapers printing
these talks. The attitude of the papers toward this kind of adver-
tising is just what I expected it would be. Publishers have written
in that they do not approve of piano contest advertising and exclude
such advertising from their columns.
"Some of the phrases, quoted from the publishers, are as fol-
lows : 'I take pleasure in advising that we discontinued piano con-
test advertising over two years ago. We were among the pioneers
along this line/
"'We have eliminated piano picture and word puzzle adver-
tisements and never again will we allow a lot of dealers in cheap
pianos to impose on our readers with their cheap coupon schemes.'
" 'We have taken a stand against all piano puzzle advertising
and in so doing have aroused the enmity of one house in particular"
but we have felt thoroughly justified in the stand we have taken!
and it was with a great deal of satisfaction that we read your story
in your series. We also took pains to see that all the local piano
houses had their attention called to it when it appeared.'
'This suffices to show the attitude of the publishers—one in
each of sixty-four cities—who are standing for the betterment of
advertising and for character in newspaper advertising. Together
these newspapers form a composite national medium that general
advertisers should consider before distributing their next appropria-
tion."
'T^HERE seems to be a certain class of piano dealers distinctly
USINESS reports for the past week from Review correspond-
J- averse to advertising products along honest, straightforward
ents in widely separated sections of the country do not show
lines. They somewhat think that the public likes to or can be
any unusual holiday demand thus far this month. The business
fooled despite Lincoln's well-known saying in this connection.
undertone, however, is healthy and the volume of retail sales are
For the past couple of years it was the puzzle or coupon contest
reported as about normal. As a matter of fact "holiday trade" in advertising which was exploited, and now we have a new surfeit.
pianos is no longer a great factor as in years gone by. It has been
It takes the shape of advertising pianos of well-known makers at
demonstrated that there is apt to be more activity in sales of pianos
ridiculously low prices, without stating in the advertisements that
after the holidays than before.
these instruments are second-hand, some of them twenty years old.
Meanwhile not in years have piano dealers carried on such an
The impression is left in the public mind that the dealer is adver-
active campaign of publicity in the daily papers from coast to coast
tising new pianos, thus the reputation of the pianos treated in this
as at present. They have undoubtedly stimulated keen interest in
manner is seriously damaged, as are the prestige and interests of
pianos, players and talking machines, and this campaign, which may
the manufacturers mentioned.
be termed an educational one, cannot fail to be productive of results,
This deceptive advertising is a menace to the industry, and it
if not around Christmas, at least at a later period.
should be the duty of the National Association of Piano Merchants
It is the general opinion of the leading authorities that the im- and Piano Manufacturers to develop some plan whereby this despic-
provement in business and financial conditions, and in agricultural
able work should be stopped, to the end that the interests of the
as well, which has been gradually evolving during the past two
industry are protected.
months, is not only to be maintained, but will become more pro-
They should also advocate the passing of a law to prevent
nounced with the new year. We have had a long drawn out period
misleading, untrue, or deceptive advertising in such states where it
of depression, and it has taken two months to fully convince the
does not already exist.
pessimists that a change has come.
We are far behind Germany in getting the best of misleading
There were so many short spurts of activity before the real
advertising. Over there should a dealer or manufacturer make a
bottom was reached that it hardly seemed possible that the real turn
statement that cannot be verified he is not only compelled to refrain
was at hand. Liquidation by business interests is over for the time,
from this kind of work, but is severely punished.
however, and while the change has not brought, nor is it likely to
bring, an early boom, it is plain that there is a much healthier
^HE quality of the salesmanship depends upon the energy which
tone to business in nearly all directions. There is no disposition to
the salesman can generate, how he conserves it, how he ex-
anticipate future requirements; the conservative policy continues of
pends it, and how he uses the time—a. ghort period of which is hia
buying to meet requirements and no more, This policy is, of course,
for use,
B
I
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
REVIEW
The Granting of Business Credits.
A Vital Part of Every Trade Enterprise—No General Plan in the Piano Trade—Individual Cases Are
Treated in Accordance With the Conditions Surrounding Them—How a Character Asset
Counts As a Basis for Credit—More Care Exercised Than Formerly in the Granting of Cred-
its—Some Expressions of a Business Man Well Worth Reading—Failures in Business Caused
By Unfair Buying—Success Is Due to a Careful Granting of Credit By the Merchant—The
Necessity of Giving Out Statements to Commercial Agencies—The Business of the Country
Is Largely Conducted Upon Credit, Therefore All Information Which Bears Upon the Credit
Situation Should Be Readily Supplied—Successful Merchants Believe in This Policy.
F
REQUENTLY we hear the statement made that certain men
receive credit to a greater extent than that to which they are
entitled by the laws governing trade and commerce. »
Statements have been made that piano credits are too generous
and that such strong credit inducements have been held out to some
piano merchants that all fixed standards have been demolished.
Credit in a business which is as largely conducted upon the
deferred payment plan as the piano business is at all times difficult
and certain individual treatment must be accorded specific cases.
A dealer may have splendid business ability and good character
assets and still be short on money.
Yet he is looked upon as a good risk and many dealers who
possess these characteristics have become rich and successful busi-
ness men by the treatment which they have received at the hands
of some piano manufacturers.
On the other hand, it is certain that some men have received
credit when they possess no character assets and little of any other
nature.
And what is true in other trades is true in this, that one char-
acterless man injures an industry so that his attitude reflects to an
extent upon others.
But it must be admitted that business risks are fewer in this
trade than ever before.
This is evidenced by the decreased number of failures.
The retailer and his credit will always be a subject of intense
interest and different trades may have different rules to apply.
While discussing conditions in a trade which is closely related
by affiliation with the music trade, a credit man expounded some
interesting views.
He gave an interesting personal experience regarding credit
and stated that he believed that business success could only be
achieved by giving special consideration to the credit end of the
industry.
. Illustrating his argument he said:
"Several years ago a young man of my acquaintance entered a
western city and embarked in the retail business with a total cash
capital of $1,500, that by frugality he had saved from his small salary.
He rented a store at $1,250 per year for five years and then proceeded
to purchase as many goods as he could pay for. He cultivated the
acquaintance of the cashier of the bank where he did his business,
and a few weeks after opening his store borrowed a sum of money
from the bank and increased his stock. He had rented a large store-
room and his limited capital did not allow him to cairy as large a
stock as he desired, but he persisted in discounting all bills and buy-
ing closely. At the end of the first year it was necessary to put on
his store shelves and counters empty boxes as his stock was much
depleted, but he was able to pay off his loan at the bank and had a
surplus besides.
"The next year he borrowed a larger sum, but continued to dis-
count his bills. Everyone was anxious to sell him for his credit
was without a blemish, and in a few yea.rs he had increased his stock
in the original store to over $15,000 and opened several branch
stores. To-day he is connected with geyeraj strong: financial insti*
tutions in the city in which he resides,
"You may say, 'That sounds good, but how am I going to do
it/ I say, 'Make your business fit your capital.' The secret of his
success was that he made his business fit his capital. And this leads
me to one or two axioms I desire to propound. First, no man
should go into business unless he has a reasonable amount of money
and above all be sure that he knows something about the business
that he is entering into. Then he should buy only as many goods
as he is reasonably sure that he can pay for and discount all his bills.
"Starting out with a certain capital he should estimate the amount
of business that he feels that he should be able to do monthly. De-
ducing from this his store and personal expenses he should then
buy only as many goods as he can reasonably expect to pay for
promptly when due.
"He should keep a careful record of all goods purchased—
when they are to be shipped and when he can save his discounts;
then limit his purchases absolutely to the amount that he has esti-
mated will be available for paying bills from month to month, and
he is sure to win. If his sales are better than he anticipated he can
buy more goods. He can send in mail orders for the most profit-
able sellers. On the other hand, if his sales are less than anticipated,
purchases should be curtailed, but every effort should be made to
stimulate his sales so that they will equal the amount estimated.
"More failures in the retail business are caused by over-buying
than from any other one cause and many a man who would other-
wise be a successful retailer has been handicapped all through his
life because, through lack of knowledge or judgment, he purchased
more goods than he could pay for during the early part of his busi-
ness career thereby injuring his credit to an irreparable degree.
There are also many retailers who are to-day extraordinarily suc-
cessful and this is due to the fact that they have jealously guarded
their credit, while other men of equal merchandising ability have
been complete failures because they have not realized the necessity
of conserving their credit and have lost the confidence of those
from whom they could secure the most desirable merchandise and
have finally dropped out of the race.
"One more point that is very important and that is the giving
of statements to commercial agencies or to the individual inquiries.
Many merchants seem to feel that they should not be expected to
do this. But, let me ask, how is the jobber or manufacturer going
to be able to do justice in extending credit if one refuses to inform
him honestly and frankly concerning his financial condition?
"Many a man who is entitled to unlimited credit is handicapped
immeasurably by his refusal to make a statement to the commercial
agencies and remains a small dealer all his life, when with the
proper credit rating he would be entitled to purchase direct from
the largest manufacturers. It must be remembered that the con-
cern selling to thousands of customers cannot possibly know each
one personally, but must rely on cold blooded facts as gleaned from
numerous inquiries in order intelligently to extend credit ratings.
The entire business of this country is conducted largely upon credit
or confidence and individual co-operation with organizations that
make the gathering of credit information their business shpuW be
looked upon with favor by every retailer.

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