Music Trade Review

Issue: 1913 Vol. 56 N. 2

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
ASTOR.
THE
VOL. LVI. N o . 2
REVIEW
Published Every Saturday by Edward Lyman Bill at 373 Fourth Ave., New York, Jan. 11, 1913
SING
W E OO 0 P P ER\EAE E N T S
How About the Net Profit?
I
T is always easier to locate problems than to work out answers to them. Every man in business en-
counters problems of all kinds in manufacturing and in retailing. If the selling problems could be
eliminated from our business life we would approach the millenium by rapid strides, for we would
be able to eliminate much of the worry which causes business men to grow old before their time.
We cannot solve problems by ignoring them—we must face them; and it is difficult for an individual
working alone to solve a big, common industrial problem. It is by discussion and by the exchange of ex-
periences and by co-operation along broad lines that we can all make progress most rapidly.
Selling problems may be fairly divided into two classes: First, those which can be best accomplished
by the manufacturers as a whole working together, and the problems'of factory origin. The latter re-
lates to factory organization—to supplies—to credits and to other conditions which may be interwoven
with the business.
Second, those problems which relate to the retailing of pianos in all its ramifications; and this, to my
mind, is a very great problem.
What is selling? What constitutes a sale?
Real selling is the disposal of goods at a profit.
It does not require a keen or accomplished merchant to give goods away; but, selling pianos at a
profit so that a straight financial advance can be shown at the end of the year is a job for good salesmen
and good business men.
In brief—business exists for the net profit.
It is all very fine for those who like to build up a great volume of business simply for the sake of
talking about it; but the final test of success is the net figures.
The prime joy for which most business men are working is to make money. A great many mer-
chants in retailing pianos fool themselves with the belief that they are making money when a critical
analysis would show different results.
They are not adequately posted as to the real costs and they delude themselves with the idea that
because they are selling pianos they are making money.
Therefore, to my mind the dealer represents a big problem because if he does not make money the
manufacturer becomes a sharer in his misfortune.
We talk about good dealers. Now, a dealer cannot remain good very long unless he can make money
—unless his business will show a net profit—that is, unless he has got a long bank account, and precious
few men are thus generously endowed. Then, unless he makes money he must get out of business or
he Will simply drift along for a time, only to fail entirely in the end.
To my mind the one essential to impress upon every dealer's mind is the thought that he is selling
pianos to make money and that he should conduct his business with an eye to the net profits and not to
the gross sales. Once he has this firmly fixed in his mind he will instil it into the heads of his salesmen;
and after a while the net profits of the business will increase.
That leads me up to a matter which I have long advocated and that is the establishing of fixed.prices
—list prices if you will—for pianos of reputation—list prices which represent genuine value.
If the prices of instruments were fixed by the manufacturers themselves there would be more net
profits in the business for everyone engaged therein.
I do not mean that it is possible to fix an arbitraryprice, from which there can be no deviation for all
pianos.
That is impossible at the present time; but if the manufacturer himself establishes a price standard
the dealer must necessarily cut into his own profit if he sells below it; and, if he has the idea of making net
profits in his business steadily increase he will stay pretty close to the list price for his pianos.
It has been easy to accomplish this in the talking machine trade; and there is no business in the world
which is conducted upon cleaner or more harmonious lines.
(Continued
on page 5.)
•' •
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
REVIEW
While no definite order has as yet been issued, the commis-
sion lays down a number of so-called "rulings," and suggests to
the carrier companies that they should immediately revise the
classification. Reductions in a large number of rates are in-
cluded in the decision.
T the opening of the new year general business, viewed from
several angles, gives plenty of reason for the country to
congratulate
itself. We have just closed a year that has recorded a
EDWARD LYMAN BILL - Editor and Proprietor
tremendous advance in all lines of effort. The greatest crop in
J. B. SPIIXANE. Managing Editor
the country's history has given a surplus of wealth and insures a
Executive and Reportorlal Staff :
larger buying power during 1913. The volume of trade transacted
B. BKITTAIN WILSOK,
CARLETOM CHACE.
L. M. ROBINSON,
GLAD HENDERSON,
during the year—domestic and export—was of phenomenal pro-
A. J. NicKLiH,
AUGUST J. T u r n ,
Wii. B. WHITI,
L. E. BOWERS.
BOSTON OFFICE:
CHICAGO OFFICE:
portions—far beyond expectations—thus indicating the greatest
JOHN H. WILSON, 824 Washington St.
E. P. VAN HAKLINGEN, 87 South Wabash Are.
activity in all lines.
Telephone, Main 6950.
Room 806. Telephone, Central 414
PHILADELPHIA:
MINNEAPOLIS and ST. PAUL:
ST. LOUIS:
The general employment of labor throughout the country is
R. W. KAUFFMAN.
ADOLF EDSTEN.
CLYBB JENNINGS
another factor which is bound to be of benefit directly in the piano
SAN FRANCISCO: S. H. GRAY, 88 First St.
DETROIT, MICH.: Mourns J. WHITE.
CINCINNATI, O.: JACOB W. WALTERS.
INDIANAPOLIS, IND^ STANLEY H. SMITH
trade, for, after all, our industry is in a large measure bound up
BALTIMORE, MD.s A. ROBERT FRENCH.
MILWAUKEE, WIS.: L. E. MEYER.
with the prosperity of the working classes. This doesn't neces-
LONDON, ENGLAND: 1 Gresham Buildings, Basinghall St., E. C.
sarily mean those who labor with their hands, but those as well
Published Every .Saturday at 373 Fourth Avenue, New York
who labor with their brains. For we are all workers.
Enttttd at the New York Post Office as Second Class Matter.
As the year develops the feeling is one of cheerful conservatism
SUBSCRIPTION, (including postage), United States and Mexico, $2.00 per year; Canada,
following a holiday trade that in many lines has crowned a year
$8.60; all other countries, $4.00.
ADVERTISEMENTS, $8.60 per inch, single column, per insertion. On quarterly or
which has had few equals and fewer superiors in nearly every line
yearly contracts, a special discount is allowed. Advertising Pages, $75.00.
REMITTANCES, in other than currency forms, lhould be made payable to Edward
of human endeavor. The change in the National Administration
Lyman Bill.
at Washington and the projected remodeling of the tariff are act-
Departments conducted by an expert wherein all ques-
Jinil
tions of a technical nature relating to the tuning, regu-
ing somewhat as a restraint to a larger development of business,
ailU
lating and repairing of pianos and player-pianos are
. dealth with, will be found in another section of this
as many contracts cannot be closed until the contemplated changes
paper. We also publish a number of reliable technical works, information concerning which
will be cheerfully given upon request.
are announced, which, of course, will not be possible until the
special session of Congress is called in late March, or early April.
Exposition
Honors
Won
by
The
Review
Meanwhile, it is a matter of satisfaction that hearings on the
Grand Prtx
Paris Exposition, 1900 Sxlver Medal.. .Charleston Exposition, 1901
Diploma... .Pan-American Exposition, 1901 Gold Medal
St. Louis Exposition, 1904
changes
in the various tariff schedules have commenced, so that
Gold Medal. .Lewis-Clark Exposition, 190S
when
Congress
meets in special session there will be no time lost
LONG DISTANCE TELEPHONES—NUMBERS S982-5983 MADISON SQUARE
in having the tariff matter adjusted without unnecessary delay.
Connecting all Departments.
Cable address •• "ElbUL, N e w York."
The monetary conditions in Europe, owing to the Balkan War,
and rumors of war, have undoubtedly held trade backward some-
NEW YORK, J A N U A R Y 1 1 , 1 9 1 3
what in this country by the scarcity of money and credit. All this,
however, will change within a very short time, and normal condi-
tions will prevail.
EDITORIAL
No matter how we view the situation for 1913 it is one full of
hope. One thing is sure, the wheels of industry will continue to
revolve, and this nation will move ahead to newer conquests and
N the thoroughly encouraging reports from all over the
country regarding the generally satisfactory piano business. to greater prosperity than it has ever enjoyed.
This means that pianos will be purchased in larger quantities
during 1912, and especially during the holiday season, it is a
than ever before, and the business man who plans his business
notable fact that while the heavy increase in the demand for
along these lines is sure to reap the largest measure of reward at
player-pianos was commented upon, another matter of particular
interest to the dealers, as well as to manufacturers, was the re- the close of 1913.
Caution and conservatism can be overdone, and the men or
markable call for grand pianos, mostly of the smaller types.
There have been numerous explanations offered as to why institutions that allow fear to govern them instead of common sense
are sure to suffer. The fact remains that this country is rich by
the taste of the public has turned to grands so strongly within
reason of its immense crops, and the increased employment of labor,
the last year or so, but perhaps the most reasonable explanation
is that offered by a piano man in Detroit, who states that in his and this condition insures a big buying power for a long time to
come.
opinion the introduction of the player-piano at prices ranging
upward of $500, as a rule, has educated the prospective piano
HE probability of a change in our Consular offices abroad, with
purchaser in the matter of price, and that where the purchaser
the inauguration of a new National administration at Wash-
is able to play by hand the temptation to purchase a grand piano
ington, is causing no little concern in business circles. For it is a
at the cost of a player proves irresistible.
matter of prime importance to the manufacturers of this country
Whether it is the improvement in musical taste or the ques-
engaged in export trade whether or not the "spoils system" will pre-
tion of price, the fact that new small grands are being introduced
vail
in the regulation of the Consular service.
at frequent intervals, that they sell with comparatively little
The various associations of exporters are making a strong pro-
trouble, and that the proportion of sales represented by that
class of instrument is steadily on the increase, is worthy of more
test against any radical changes and are demanding that the merit
than passing comment.
system, as it relates to the Consular service, be continued. Too
much depends upon the work of the Consular agents in various
parts of the world to permit politics to exert an undue influence in
HE decision of the Interstate Commerce Commission, or-
that direction.
dering a revision of Western Freight Classification No.
When a man who has been located in a certain district for
51, which was handed down late last week, is of general interest
years
and understands thoroughly the business conditions in that
to the trade. It directly affects rates in from 1,500 to 2,000
district,
and the requirements of the local importers, is replaced by
commodities, and, as to territory, covers practically the entire
the
constituent
of a new political party with absolutely no experi-
western half of the United States.
ence
in
either
the
Consular or export fields, the result is sure to
One of the rulings contained in the decision relates to
prove disastrous.
"mixed" carload shipments at the carload rate. The commis-
The Consular service should be placed upon the same basis as
sion hold that the carriers should be more liberal in their pro-
the army or navy, the officers to receive the same consideration.
visions for "mixtures," and should allow a variety of different
It should be made a life work and not take the form of political paps
commodities to fill a car at a carload rate,
A
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