Music Trade Review

Issue: 1913 Vol. 56 N. 3

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
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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.)
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 Stall:
B. BftiTTAiN WILSON,
A. J. NicfcLiN,
CAKLETON CHACE.
AUGUST J. TIMPE,
L.M.ROBINSON,
WM. B. WHITB,
BOSTON OFFICE:
GLAD HENDERSON,
L. E. BOWKS.
CHICAGO OFFICE:
JOHN H. WILSON, 824 Washington St.
E. P. VAN HARLINCEN 87 South Wabash Are
Telephone, Main 6950.
Room 806. Telephone, Central 414
PHILADELPHIA:
MINNEAPOLIS and ST. PAUL:
ST. LOUIS:
R. W. KAUFFMAN.
ADOLF EDSTEN.
CLYDE JENNINGS
SAN FRANCISCO: S. H. GRAY, 88 First St.
DETROIT, MICH.: MORRIS J. WHITE.
CINCINNATI, O.: JACOB W. WALTERS.
BALTIMORE. MD.: A. ROBERT FRENCH.
INDIANAPOLIS, IND.: STANLEY H. SMITH
MILWAUKEE, WIS.: L. E. MEYER.
LONDON, ENGLAND: 1 Gresham Buildings, Basinghall St., E. C.
Published Every Saturday at 373 Fourth Avenue, New York
Enttted at the New York Post Office as Second Class Matter.
SUBSCRIPTION, (including postage), United States and Mexico, $2.00 per year; Canada,
98.60; all other countries, $4.00.
ADVERTISEMENTS, $2.60 per inch single column, per insertion. On quarterly or
yearly contracts, a special discount is allowed. Advertising Pages, $75.00.
REMITTANCES, in other than currency forms, should be made payable to Edward
Lyman Bill.
Departments conducted by an expert wherein all ques-
tions of a technical nature relating to the tuning, regu-
lating and repairing of pianos and player-pianos are
dealth with, will be found in another section of this
paper. We also publish a number of reliable technical works, information concerning which
•ill be cheerfully given upon request.
Player-Piano and
Technical Departments.
Exposition Honors Won by The Review
Grand Prix
Paris Exposition, 1900
Silver Medal. . .Charleston Exposition, 1908
Diploma
Pan-American Exposition, 1001 Gold Medal
St. Louis Exposition, 1804
Gold Mtdal. .Lewis-Clark Exposition, 1905
LONG DISTANCE TELEPHONES-NUMBERS 5982-5983 MADISON SQUARE
Connecting all Departments.
Cable address" "Dbill, New York."
NEW
YORK,
JANUARY
18, 1 9 1 3
EDITORIAL
O
NE of the most gratifying conditions prevailing in the piano
trade in the opening month of the new year is the increas-
ing appreciation of the better grades of instruments on the part of
piano merchants and the purchasing public. This is a natural
reaction from the long continued craze for the "cheap" pianos
sold by unscrupulous merchants, and many of them with 'their
own names, at prices far in excess of their real worth.
The piano of the reputable piano manufacturer, particularly
the instrument of recognized artistic worth, was in many in-
stances side-tracked, merely used as a "stool pigeon," so to speak,
and the sales compaign conducted by many had as its slogan:
"Get all the money you can for pianos, irrespective of value or
grade."
For a while this "get-rich-quick" plan of making money
seemed to succeed, but in due time complaints regarding dissatis-
faction with pianos purchased, and "returns" by those who se-
cured them on "time," made dealers wake up to the fact that
money cannot be made so easy after all, and that quality and hon-
est prices were better than quantity and exaggerated values.
This awakening on the part of the public and piano mer-
chants is certainly a notable development. It is emphasized by
the fact that the distinguished manufacturers of the country,
whose names and instruments have a national reputation, pro-
duced more pianos in the year which closed on December 31
than ever before in the history of the trade. This is certainly
cause for congratulation and an omen of hope for the future.
In analyzing the conditions throughout the country one can-
not fail to be impressed with the fact that those piano merchants
who have sold pianos in their class, who have not been dishonest
in their exploitation of the high grade, reputable piano, are to-day
enjoying a most satisfactory business. Their reputation is un-
tarnished in the public eye. They possess that most valuable
asset to a business man—the confidence of the public—confi-
dence in the house and confidence in the goods which it handles.
REVIEW
A perusal of the columns of The Review for the past ten
years will show that this subject has been continually agitated
in our columns. We have pointed out, time and time again, the
danger that was bound to follow the policy of many dealers in
sacrificing high-grade pianos for instruments without name or
reputation, and which were sold at prices far in excess of their
value.
We cautioned the dealer against sacrificing his own good
name, and that of the piano which he represented, by the pur-
suance of such a dangerous policy. But many were lured by
the possibility of making money quickly. They dipped into
the "puzzle contest," the "was-and-is" method of misrepresenta-
tion, and other questionable means of "fooling the people," for-
getting that all the time they were undermining the future of
their business and losing the support of the public.
As a matter of fact it is quality rather than price which
places the business of the retail piano merchant upon a satis-
factory and enduring basis. If we scan the list of successful
piano merchants, we will find that those who have won distin-
guished success have always constantly upheld the quality of
their instruments, and have never manifested the desire in their
advertising to subordinate the quality for a price leader.
When the merchant upholds piano quality he shows that
he has confidence in the instruments which he represents. Me
places upon them a correct price, and sticks to it. His honesty
and enthusiasm impress the customer. The man who will for-
ever bring up the question of prices against quality is bound to
slip down the business hill.
The selling of stenciled pianos at prices far beyond their
value has had a degenerating influence upon the entire trade, and
it is indeed a matter for rejoicing at the opening of the new year
that a reaction has occurred, and that pianos bearing names of
national reputation—instruments noted for their quality stand-
ard—are again receiving the consideration which they should
receive at the hands of piano merchants.
The quality piano has an elevating influence in every pos-
sible way. It stimulates confidence, and, after all, confidence be-
gets success.
How can any merchant have confidence in his business future
when he fills his advertising space and his show window with
pianos priced at ridiculous figures? Such sales do not beget con-
fidence. They are like a flash in the pan—they lead to tem-
porary, but not permanent, gain.
P
IANO merchants and dealers for that matter cannot fail to
be interested in the Kenyon Uniform Classification Bill,
which measure recently passed the House and Senate and now
only awaits the President's signature to become a law. The bill
gives the Interstate Commerce Commission the authority to make
a uniform classification of freight rates for the entire country.
While, on the face of it, this does not look like an especially im-
portant proposition, it is claimed that the power thereby placed in
the hands of the Commission will prove to be one of the large
factors in the future regulation of all freight carriers. So long as
the roads make the classification they can increase rates deviously
by simply shifting an article or class of freight from one class to
another.
With the Interstate Commerce Commission making the classifi-
cation, it is pointed out that it will require pretty astute maneuver-
ing on the part of the railroads to increase rates without running
foul of the Commission. The Commission is well along with this
new classification, and it is the expectation that it will be ready for
adoption within the near future, possibly within the next few
months.
D
ON'T delude yourself with the idea that there is any ele-
ment of luck in business—while you wait for luck to hit
you a wallop the other fellow with the hustle is getting the busi-
ness. "Nothing succeeds like success." It is the busy man
who gets business. Keep moving, and if trade ever gets a little
wobbly put on more speed, push a little harder. Customers run
away from a man in hard luck.
Enthusiasm is a lubricant that makes the wheels of trade
go round; a grouch is sand in the bearings. Euthusiasm, like
melancholia, is catching.

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