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THE
MUSIC TRADE
REVIEW
CREDITS AND COLLECTIONS IN THE PIANO TRADE.
A Topic of National Interest Discussed in an Able Manner by a Recognized Authority Whose
Views Will Be Read with Interest and Profit.
By HERMAN IRION, with Steinway & Sons, New York.
before. It is indeed a matter of great gratifica-
tion to myself and the other members of the in-
dustry to note how very few failures there are in
our field, when compared with those that occur
in other lines. These few failures are really the
strongest evidence of the sound financial footing
of the piano industry at the present time.
Referring again to our dealers and the methods
on which they do business. We know for a posi-
tive fact that dealers will not sell the Steinway
dition.—EDITORIAL NOTE.]
pianos on long time, because they cannot afford to
do it. The consequence is that they do not lose
In the matter of retail credits I can only say
that we are probably in a class by ourselves, in sales on Steinway pianos, but, on the contrary,
that the people who come here to buy Steinway they benefit by the better terms, because the cus-
pianos, or write to us for terms and prices, in 99 tomer who really wants a Steinway piano will ac-
cases out of a 100 know that they are buying a cept the dealer's terms, and our representatives
high-class instrument and an expensive one. It is tell us that practically all of their sales of Stein-
very seldom indeed that we come across any pros- way pianos are on a cash basis. Our dealers re-
pective customer who is not prepared to pay the gard the Steinway agency as a most valuable asset
price we ask. Of course, doing business under to their business because of this fact that so many
such conditions simplifies retail credit matters con- cash sales can be closed with the Steinway piano.
siderably. We make remarkably few replevins in A cheaper class of pianos that sells on long terms
our business, and these have been so scarce that ] is not nearly as profitable to the dealer as the
feel justified in saying that our business is dif- Steinway, and dealers would naturally much rather
ferent than any other house in this respect. Cus- work on a cash basis than on long terms.
Factors That Have Helped.
tomers come in here to look over pianos and the
salesmen close the sales. They hand in every cus-
Our collections in the retail line this year have
tomer's name to the office. Whether or not we have been very good. Our instalment accounts are in
done business with them, if their names appear the very best possible shape, and there are very
satisfactorily in any one of the various reference few people who are behind in their payments. A
guides we send the piano to their home without great deal has been done in the past ten or fifteen
asking any superfluous questions. If they do not years to put the instalment business on a sound
appear in any of the reference books, or if their footing, and it is now bearing fruit. The very
names appear there in a questionable way, we ask fact that high-class department stores are going
them to furnish references before the piano is de- into the business with their high-class methods of
livered. In every sale on the instalment plan, the handling accounts by one set of rules has been of
customer signs a contract and a substantial cash considerable aid to the development of this branch
payment is made before the shipment of the in- of the business. I also think that the player-piano
strument. We are therefore amply protected for has helped the financial part of the industry con-
the time being, and it is then up to our collection siderably. On the sale of an expensive player-
department to see that payments are made on piano it is too dangerous for the dealer to give
time and that the customer does not lag behind. very long terms to the purchaser, for the instru-
I may say in this connection that our collection ment that goes out on a few years' payment basis
department has met with uniform and gratifying may cause the dealer considerable trouble before
success year after year.
the time is up, and the purchaser who has been per-
Credits in the wholesale line with us are a mitted to enjoy such long terms may refuse to
matter of extreme simplicity, as we do business pay if the player gives the least trouble. It is
with only the most reliable houses in the industry, natural, therefore, that the dealer in order to pro-
whose financial ability is unquestioned and whose tect his own interests is extremely careful with
reliability is matter of general knowledge to the player accounts, and takes great care that his cus-
entire trade. Our terms of settlement are alike to tomers do not fall too far behind in their pay-
every member of the trade, we request settlement ments.
by the fifteenth of the month following the month
What has helped more than any one thing to
of shipment of the ordered goods. It is therefore bring business up to where it is now is the slow
evident that we have no necessity of any complex and gradual growth that the country has been
system of credits with such simple terms of settle- undergoing since the panic of 1907. It has taken
ment. We never look into the matter of how us five years to get back from the results of that
many instruments a dealer may have ordered year, and by careful upbuilding the industrial en-
lately, but when he sends us an order we ship it terprises of the nation have reached a stage where
as soon as the goods are available. We find from they can point with pride to present-day achieve-
our experience that it is far easier to do business ments. The prudent manner in which the aver-
on this basis than otherwise.
age business man now runs his affairs is having
Better Business with Instalment Customers.
its effect on general conditions, and by capable
I believe that dealers are doing a better busi- management in all industrial lines we have at-
ness with their instalment customers than hereto- tained this business success, which we all hope will
fore. This has been caused not only through the last for a long time to come."
insistence of prompt settlement by our house and
Others in the trade, but in a great measure by the
THE MEHLIN IN SALT LAKE CITY.
manner in which the talking machine companies
handle their accounts. It is my understanding that
Among the visitors this week at the Mehlin
the talking machine companies ask for cash settle- warerooms, 27 Union Square, New York, was R.
ments twice a month, and by their insistence on W. Daynes, secretary of the Consolidated Music
prompt settlements have aroused the dealer to a Co., Salt Lake City, Utah. This enterprising
frame of mind where he watches all his accounts house recently completed arrangements with John
very closely. As a result I believe that trade con- H. Ludden, the Mehlin ambassador, to handle the
ditions are now in a much better shape than ever Mehlin line as one of its leaders.
[There is no doubt that one of the most important, if not
the most vital question, to the piano manufacturer and
dealers is the matter of credits and collections. The houses
that are sound financially invariably have some set of rules
by which they extend credit to the various branches of their
trade. These methods may vary, but they all have one aim,
and that is to establish the financial rating of the firm on a
sound basis. Steinway & Sons possess a reputation in the
trade that is generously acknowledged and their methods of
doing business have been the results of generations of ex-
perience. Herman Irion, with Steinway & Sons, is very
close to the financial methods of this famous concern, and
is exceptionally well equipped to feel the pulse of the pian o
trade all over the country as regards financial matters. He
is in close touch with both the wholesale and retail ends
of the business and is a careful student of monetary con-
WINTER & CO.
220
SOUTHERN BOULEVARD, NEW YORK
Manufacturers of
ANNOUNCE CHANGE IN CONTROL.
Joseph P. Megeath Now President of Consoli-
dated Music Co. Following Resignation of
Col. N. W. Clayton and Other Officers.
(Special to The Review.)
Salt Lake City, Utah, Nov. 18, 1912.
A change in the management of the Consoli-
dated Music Co., the prominent piano and music
house of this city, with quarters at 13-19 East
First South street, following the resignations of
Col. N. W. Clayton, C. C. Clayton and Ashby
Snow, president, secretary and director of the
company, respectively, has just been announced by
the new officials.
Those now in control of the Consolidated Co.
include Joseph P. Megeath, who has been elected
president; Royal W. Daynes, secretary; A. B.
Irvine, who fills the vacancy in the directorate;
Willard P. Cannon and Dr. L. W. Snow.
It is understood that under the new management
the business of the company, which was incorpo-
rated for $500,000, will be expanded considerably.
Upon assuming control of the company the new
board of directors tendered Col. Clayton a vote
of thanks for his service and presented him with a
handsome solo Apollo, as a mark of their esteem.
THE KRANICH & BACH IN DETROIT.
C. W. Marvin Piano Co. Secures Agency for
That City—Mr. Marvin an Old-time Kranich
& Bach Enthusiast—Glad to Handle Line.
(Special to The Review.)
Detroit, Mich., Nov. 19, 1912.
The C. W. Marvin Piano Co., of this city, has
just completed arrangements for handling the
Kranich & Bach piano as a leader in its new store,
the deal being closed by Victor W. O'Brien, rep-
resenting Kranich & Bach.
Mr. Marvin many years ago was an enthusiastic
representative of the Kranich & Bach line in this
city, but subsequently, engaged in the hotel busi-
ness, wherein he was very successful. Not long
ago, however, Mr. Marvin decided to re-enter the
piano field and naturally decided to enter it in com-
pany with his old love, the Kranich & Bach.
Both the house of Kranich & Bach and Mr.
Marvin are enthusiastic over the new arrangement,
and a good future is promised the Kranich & Bach
piano for this section of the State.
NEW HOME FOR STEINWAY BRANCH.
Well Located Quarters for the Dayton House
to Be Ready for Occupancy by December 1.
(Special to The Review.)
Dayton, O., Nov. 18, 1912.
During the visit of Charles H. Steinway, presi-
dent of Steinway & Sons, to this city last week, it
was announced that new quarters for the local
branch of the company, of which Leslie H. David-
son is manager, have been leased at the corner of
First and Main streets. The new quarters, which
were formerly occupied by the Dodd Motor Car
Co., will be handsomely redecorated throughout
and are expected to be ready for occupancy by the
Steinway branch by December 1.
C. C. MELLOR CO. INCORPORATES.
The C. C. Mellor Co., Pittsburgh, Pa., has been
incorporated with capital stock of $120,000, for the
purpose of dealing in musical instruments and sup-
plies. The incorporators are: Walter C. Mellor,
G. E. Mellor, C. A. Dickson, David G. Mitchell
and A. M. Slater.
J. R. Stilwell has opened piano warerooms in
Traverse City, Mich., with the Cable-Nelson line.
Superior Pianos
and Player Pianos