Music Trade Review

Issue: 1913 Vol. 56 N. 2

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
I
T
T
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
REVIEW
H O W ABOUT THE NET PROFIT?
(Continued from page 3.)
I have been intimately connected with the talking machine trade for a long period of years and I
know how price fixity has worked out to the advantage of all engaged in making and selling talking
machines.
My observation and experience teach me that one price in one section of the country and one in another
and any old price anywhere is a wrong policy and does not work out for business success.
And that gets me back to what 1 stated at the beginning of this article: that many a man fools himself
with the idea that he is doing business profitably and is not watching the net results as carefully as he
should.
The dealer who is trying to conduct his business on high standards will be encouraged by an atmos-
phere of sincerity. The separation of bartering andslipshod methods from regular business should inure
to the advantage of legitimate trade.
With a product fairly priced, the questions of getting the dealer to work on the one-price-to-all
system—that is the list price—becomes one simply of education.
The courts have decided that the manufacturer cannot force the dealer to sell at the list price, so that
it becomes rather a question of education and discipline.
Many dealers are wise enough to see for themselves the necessity of a one one price system—many
more are not.
I have talked with a good many and I find that they figure on the volume of business—they do not
seem to have an eye to the net profit.
This impresses me as a very short-sighted policy because business success hinges on the success of the
dealer and the dealer's success depends entirely upon the net profits.
Now, if he is permitted to go his own way and pursue wrong policies there cannot be the substantial
advance made which the generally prosperous conditions would seem to warrant.
Of course, in the conduct of any business there are times when various trade flotsam and jetsam—
in other words, the odds and ends—must be occasionally cleaned up in the piano business as in any other.
It is claimed, too, by some that the piano business is to-day being forced abnormally.
I do not believe it. I affirm that this country has an absorptive power for half a million pianos
annually.
True, some methods of selling, both by the manufacturers and the merchants, are not in accordance
with sound business principles as to time and payments; and forced selling has little, if any, profit.
I cannot accept the theory of over-production, but T do believe in the theory of under-production
of sound business principles on which various enterprises are conducted. T repeat that our selling prob-
lems are not those of over-production.
Another of the great problems of piano selling is the taking care of traded-in or used pianos; and with
the advent of the player-piano there is an ever-increasing percentage of piano sales which invariably in-
clude traded-in instruments.
Now, this means usually the making of two sales in order to earn one profit, and unless a dealer
exercises exceeding care it is apt to mean two sales without any profit.
This trading-in proposition is a very important one—more important
now than ever before; but the matter of trading in instruments and how
they affect the industry as a whole should be the subject of a separate
article and treated in its varied relations to the music trade, and in such a
manner I shall handle it in a subsequent issue.
An Excellent Field of Operation.
N last week's Review some interesting figures appeared re-
garding the trade of Argentina in pianos and other musical
instruments. This is a prosperous country with a large popula-
tion of musical people, whose wants are now supplied very
largely by Germany. It opens up an excellent field of operation
—one that should be prolific of satisfactory results for the piano
manufacturers of the United States.
The matter comes to mind more particularly now, owing
to the approaching completion of the Panama Canal, which is
drawing the attention of the commercial world forcibly to South
American trade. A study of our exports shows that the United
States is now enjoying a much smaller proportion of this trade
than it might obtain with comparatively little effort on the part
of exporters.
South America is buying $600,000,000 worth of goods from
Europe, and it is asserted by Charles L. Chandler, of the United
States Consular Service, that five-sixths of this amount might
easily be supplied by the United States.
There has been a great gain in recent years in trade between
this country and Argentina, but the fact remains that less than
I
one-fifth of Argentina's imports come from the United States.
Columbia and Venezuela are the only South American republics
that buy more from the United States than from any other
country.
This country stands second in Ecuador and Peru, third in
Chili, Argentina and Brazil, and far down on the list in Uruguay,
Paraguay and the Guianas.
There are many lines of Argentina imports in which this
country might occupy a more favorable position than it now
holds. In order to obtain this increase, the field must be culti-
vated with some care and attention. The most direct means of
reaching South American purchasers is through the employ-
ment of well-trained salesmen with a good knowledge of
Spanish.
Such a man," a graduate of Princeton, has made $50,000 in
commissions on sales of automobiles in Argentina and Uruguay
since May 1.
It has been estimated that the United States could sell
$25,000,000 worth more products in Argentina than it is now
selling.

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