Music Trade Review

Issue: 1913 Vol. 56 N. 3

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.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
REVIEW
THE PROBLEM OF THE TRADE-INS,
(Continued from page 3.)
A piano live years old should be valued in such a class and so on up the line, decreasing the value of
the piano with each year of its service. Then there should be established a value on all pianos below a
certain age, based upon the rental earning power of the instrument.
To illustrate: A piano merchant sold a piano three years ago to a customer who wishes to trade in
the instrument for a player-piano.
Now, what valuation should be placed on a traded-in instrument, the original price of which was $350?
That instrument could not have been rented for less than $5 a month, so in three years' time the cus-
tomer has had $180 of actual value—goodness, if you will—out of that instrument.
If the purchaser had rented the piano from any local wareroom, he would have paid during the three
years $180, and he has actually taken that wear out of the instrument. Therefore, subtracting that value
which the customer had enjoyed—$180—from the original price—$350—would leave $170, which it would
be fair to allow in the purchase of a new player-piano.
The owner purchased a new instrument and enjoyed it for three years. Why is it not good business to
subtract that value from the piano instead of following the plan adopted by a number of piano merchants to
allow the full sales price of any new purchase which may be made within two or three years?
I affirm that this plan is not good merchandising and the adherence to it constitutes one of the reasons
why the piano merchants of the country have not grown richer than they have. That condition is due
largely to the fact that they never have fully understood the business principles involved in the trading-in
of old instruments.
They have been fooling themselves with the idea that they were doing business, when, as a matter of
fact, they were not doing it profitably.
This trading-in proposition to my mind is one of the great problems of the piano business, and it de-
mands intelligent treatment.
It has prevented piano merchants from enjoying the profits to which their work and energy should en-
title them. It is quite time that piano selling should be placed upon a profitable, businesslike basis.
The trading-in problem is going to grow greater as time rolls on—hence the greater necessity of estab-
lishing a standard by which to measure the value of the trade-ins.
The player-piano has made more progress in the past twelve months than in any previous year since it
became a factor in the music trade world, and it is going to be a larger factor in the year 1913. Hence, as
more of the old pianos are traded in for new player-pianos there will be a constant accumulation of the used
pianos in dealers' warerooms all over the land. How to dispose of them profitably is a question of the great-
est interest to all connected with the industry.
It interests manufacturers in the same way that it interests merchants, because if a retail business is
not profitable it means failure in the end; and, as I stated last week, there are a great many dealers who are
figuring that they are making more money simply because they are doing business; but in many cases they
are deluding themselves. The net profits are not in evidence, and it is the net profits which tell the unde-
niable facts of true business growth!
If we had a standard measure to apply to used pianos in estimating their
value as trade-ins and a national standard fixed by the manufacturers for
their instruments at retail, w r e should make a long step toward the real mil-
lennium! What do you say, brethren of the music trade?
'"I^HAT the standard of business, credit and banking, which
JL must ever go hand in hand, is on a higher plane to-day
than ever in the history of the commercial world, is the opinion
of Bernhard Benson, the well-known financial authority, who
discusses an interesting phase of the credit situation, which is
of interest to piano manufacturers and merchants in showing
the increased value and appreciation of commercial paper as
follows:
"The promissory note (commercial paper) of any sound,
legitimate business enterprise is to-day one of the strongest as
well as one of the most liquid assets that may be carried in
the resources of any financial institution. It is only a few years
ago comparatively when banks looked askance upon the single
name paper of a merchant. To-day it is the backbone of a bank's
'liquid assets.' This was demonstrated during the panicky
days of 1907. The function of a commercial bank is to cater to
mercantile enterprises, and why should not the bulk of its re-
sources be made up of short time notes issued by wholesale
general manufacturers and many other kindred lines whose com-
mercial standing is beyond question, having been tried by the test
of time? Year by year the number is increasing of financial insti-
tutions who find it profitable to invest their surplus funds in
obligations of sound and legitimate enterprises. Through the
close interchange of credits a bank at the present time has no
difficulty in checking up and satisfying itself as to the credit
standing of the maker. The credit departments of the large
financial institutions situated in New York, Boston, Chicago,
St. Louis, etc., are at the buyers' disposal and willing hands are
ready to convey the desired information.
"The market for commercial paper is becoming broader
and broader. Not many years ago it was confined to the larger
banks in the financial centers above mentioned, the broker de-
pending upon the flow of currency to and from those centers.
With the growth of the country the situation is changed. To-
day every little hamlet that has a bank is a possible purchaser of
commercial paper. When we stop to analyze the reason is ap-
parent. Stocks, bonds and other speculative investments are
subject to market conditions and changes. They either show
a decline or a profit. In other words, they are subject to fluctua-
tion. Commercial paper has its standard of value, never chang-
ing, but, like the gold dollar of the United States, worth its face
value."

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