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VOL. LVI. N o . 3. Published Every Saturday by Edward Lyman Bill at 373 Fourth Ave., New York, Jan. 18,1913
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The Problem of the Trade-ins,
NE of the great problems of the piano business, as I stated in an editorial last week, is the profit-
able handling of used or traded-in pianos; and with the growing dominancy of the player-piano
it becomes greater all the while. Unless the piano merchant displays fine business tact the
trade-ins, if I may coin a new addition to piano nomenclature, will become more and more of a
disturbing or profit-reducing factor in his business. If the player-piano is still to continue in the ascend-
ancy, as most of us believe will be the case, it must necessarily follow that the old pianos which are traded in
will be less and less salable; and some men, unless they keep a sharp eye to the net profits, will trade them-
selves out of business.
In the automobile trade this trading-in problem is growing to be one of tremendous importance.
While talking with one of the leaders of the automobile trade recently, I obtained his opinions regard-
ing this condition, and it may be of interest to my readers to learn something about the problems in an
industry wherein the trading-in feature is a very prominent one.
It is a fact that unless an automobile dealer is a very careful and shrewd worker he is apt to fool him-
self many a time on his traded-in cars. It often gets down to the question of whether the man with the
used car is a better salesman than the dealer who is trying to sell him a new car; and it not infrequently
happens that the owner proves to be the better salesman, selling his old car to the dealer at a better profit
than the dealer makes in selling a new car to the owner.
All dealers say that this trading-in or second-hand problem is one of the most important, and it is grow-
ing larger all the time; yet when you ask them what can be done about it or what suggestions they have to
make most of them are unable to offer anything encouraging.
One man will tell you that the only thing he sees that can be done is to establish some system which is
said to prevail in the typewriter business—just arrange so that a lot of machines can be returned to the
factory each year and broken up—but of course this could not be done in the automobile business. There
is still too much value in used cars and the waste in junking a considerable number that are still in
shape for good service would be entirely too great.
Another man tells me that the only way he knows is simply not to trade-in at all at any time; yet this is
out of the question as a permanent policy.
In brief, there seems to be a sort of hopeless feeling among automobile dealers on this question—that
the problem is always going to be troublesome and about which nothing can really be done.
I believe that the manner of successfully solving this trading-in problem is of the greatest interest
to the music trade industry; and it seems to me to be advisable to arrange, if possible, some kind
of a value standard upon which to estimate used pianos. In other words, to adopt a trade yardstick by
which the value of used pianos taken in exchange can be measured.
It is admitted that many piano merchants adopt a very liberal plan in valuing traded-in instruments.
They figure that by allowing an abnormal value for some old pianos they are making money—but are
they? Just because they have made a sale are they clearing any net profits by the transaction?
There is no doubt that a piano owner feels highly complimented when a merchant is willing to allow a
price far beyond what he had placed upon an old instrument which really should go to the scrap heap.
What is the real value of a used piano?
Is it possible to arrange any standard which may be applied to used pianos when taken in exchange?
Tn the absence of any definite plan, how would it be to arrange a schedule of valuations on used instru-
ments in accordance with a national table, figured oat on the same basis as insurance tables?
O
(Continued on page 5.)