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THE MUSIC TRADE REVIEW
11
The Individual Views of the Editor of the Player Section Upon the Impor-
tant and Much Discussed Topic and Its Solution—Proper System of Valua-
tion Badly Needed—Securing Adequate Outlet for Trade-In Accumulations.
The business of a trade newspaper, I take it, is
quite as much to furnish constructive ideas as it is
to publish the news. Even ideas which at the
moment of their publication may not be prac-
ticable, may contain the germ of practicability with-
in them, so that in course of time the truth which
they embody may be translated into fact. Hence
any and all constructive ideas should have a hear-
ing at least.
In the present issue of the Player Section we
are having a discussion concerning the trade-in
problem, as it is succinctly called. Several player
men, managers of sales departments and experi-
enced retailers among others, are telling us in the
Point of View pages, what they think about this
problem. And their remarks justify the supposi-
tion that they consider it tolerably serious. In
talking the matter over with some of these gentle-
men, anterior to their setting forth their views as
they now appear, I was struck with the apparent
existence of the one strong undercurrent of thought
running through the minds of all. They all seemed
to wish that one particular thing might be made
possible. This particular thing went largely un-
expressed, but I have made here an attempt to
formulate a scheme based upon it. While the in-
spiration, then, came from these talks, the precise
thing set down here is the result of my personal
deduction, and no one else is responsible for it.
However, it is essential that this article should be
read in connection with the interesting opinions
expressed in the Point of View department else-
where in this issue.
The Situation.
To understand the possibility of remedying an
error we must first know what the error is, or is
supposed to be. Let us therefore briefly analyze
the present situation. Roughly speaking, it is this:
The player trade has grown very rapidly during
the past five years and at the present time the pro-
portion between straight and player-pianos is con-
stantly narrowing. Soon the proportion will be
even. But along with this happy state of affairs
has come one less happy. For the sale of a player-
piano means, in from one-third to one-half of all
cases, the relinquishment by the purchaser of a
straight piano that may have been in use for any
length of time. The present unfortunate situation
of the player trade is grounded on the difficulties
that have come about in connection with these old
pianos and their right disposal.
For it is evident that in almost every case of this
sort the seller must offer to take the used piano in
trade as part payment on the new player-piano.
And the whole difficulty arises over the question
of devising fair valuations for these traded-in in-
struments.
It is this to which the editor-in-chief of The
Review first directed the attention of the trade,
thus starting the movement which is now crystal-
lizing into something like organized form.
Let us consider the thing concretely. Rightly
speaking, when a piano is taken in trade as part
payment for a new player-piano the seller of the
latter is simply selling one instrument and simulta-
neously buying another for cash. He is selling, on
long time, a player-piano which represents a con-
siderable investment, and he is accepting as so
much cash another instrument which he must re-
sell in order to complete his original transaction.
In other words, until the other traded-in piano
has been resold at a price which will cover the al-
lowance made on it plus the handling cost, plus
the repair cost if any, the original sale of the
player-piano is not complete.
And seeing that the acceptance of the used piano
is equivalent for the purchaser to the acceptance
of so much cash from him by the seller it becomes
even more certain that (1) the valuation ought to
be as small as practicable, and (2) the resale ought
to be facilitated in every possible way. The dealer
who cannot meet these two conditions might as
well not sell players at all, for sooner or later he
will find himself tied up with a stock of used pianos
and .without any adequate outlet for them.
*
The Proposition.
Any discussion of the subject which is intended
to be constructive must, therefore, answer the two
questions set forth above by showing how to bring
about a right system of valuation and how to pro-
vide an outlet for the traded-in accumulations. The
present article is an attempt to answer these ques-
tions in a manner which is perhaps neither startling-
ly new nor instantly acceptable. But it does present
an idea. And ideas are what we need just now
above all things.
We have in the trade an association of manufac-
turers and an association of dealers. It will not be
denied, one imagines, that both of these bodies
would be the better off for the emergence of some
issue upon which both could agree, which both
could discuss practically, and the ending whereof
would be for the practical immediate benefit of all
parties to the case. The merchants' association, as
it will be generally admitted, needs an issue upon
which its members can agree, uncovering an error
which all will be only too glad, if they can, to
remedy, and in which they will be willing to recog-
nize the guidance of the association and follow its
counsels. Surely we need go no further. Surely
the materials are here to hand.
In concrete terms I suggest that the members
of the Piano Manufacturers' Association should
meet in conference and there submit, each of them,
and invite other manufacturers to submit, a rate
sheet showing the prices he will allow and will
authorize dealers to allow on his own pianos, when
such pianos are tendered as part payment for new
player-pianos of the same make. The basis of
allowance would be the serial number of the pianos.
Thus all pianos of given style and between two
given serial numbers would be valued at a given
price. Special rules would be drawn up for guid-
ance in special cases.
Now for a moment let us not consider the prac-
ticability of the suggested basis for valuation. Let
us simply consider the other side of the question.
Surely it is quite plain that we have here a thor-
oughly novel method. Its practicability may not
be immediately apparent. But when we look at it
more closely hitherto unnoticed merits appear.
Suppose we consider the case of a piano dealer
who habitually sells pianos out of their class; that
is, who asks too high prices for them. Now, if this
dealer is also a manufacturer it follows that in
order to protect himself he must be willing to pro-
claim that he will allow exaggerated values on his
own pianos traded in for his own player-pianos.
If he advertises a player of his own make for $750
that is really worth $500 and pianos for $375 which
are really worth $200, it follows that he must put
high valuations on the latter to protect his own
statements, values far above what the trade-ins are
worth. Therefore he must not only ask, but get
the enormous advertised prices of his goods. And
in so doing he cuts from under himself atl ground
for competition, for if he has to get the inflated
prices he must then be competing with makers who
are entitled to those prices and who naturally get
them.
The same is true of dealers who do not manufac-
ture. For such dealers would have little luck in
competitive sales with unknown player-pianos to
sell. For they would either have to offer better
than the manufacturer of the piano offered for
trade would give on a deal involving a player of
the same make and thus tend to keep down the
prices of unknown players to Where they belong, OT
else inevitably lose the sale.
These possibilities are not the only ones. It is
plain to be seen that if each and every recognized
manufacturer would publish a rate sheet showing
his trade-in valuation on his own piano these could
be collected together and would form a standard
whereby the prices of the player-pianos sold would
tend to their right level. The good ones would be
saved from the impossible competition of the bad
ones.
It will be objected very seriously that the
basis of valuation suggested is impossible, since
no feasible method of computing values by date
of manufacture could be arranged. I do not agree.
I once sold typewriters and remember well the rate
sheet I used to carry with me on the road, in which
were set down the exchange valuation of every
model typewriter that had ever been marketed.
The valuations were determined by age only, with
the sole exception that the makes were graded as
pianos might be, according to their ascertained
relative market value. There were many makes
and many models. We found, to be sure, that
some machines of a given valuation were worth a
lot more than others of the same valuation, simply
because some had been worn out in service. This
is the objection that will be made regarding pianos.
(Continued on page 12.)
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