Music Trade Review

Issue: 1914 Vol. 58 N. 4

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
REGARDING THE DISTRIBUTION OF PROFITS.
(Continued from page 3.)
Of course these are extreme views, and most men believe in just labor compensation laws, but,
it is true, hasty legislation usually works out detrimentally in many ways not anticipated by its
projectors.
There is a desire, which is world-wide, to adjust conditions so that there will be more satisfac-
tory relations existing between capital and labor, but legislation rushed through without proper
consideration may work much injury many ways, such as hasty action on the part of well-disposed
employers sometimes brings about a condition infinitely worse than that which existed before.
It may be a good plan, now that we are having commissions of all kinds, to appoint a national
commission to work out some favorable plan, so that men whose hearts are warming up towards
humanitv might have reasonable suggestions made to them for action ^_—^
^_
*
along lines of economic soundness. Then they would be able to work
off their surplus of money and show their devotion to the cause of
humanity without going off at half-cock and upsetting things generally.
wvusvu
Less Business, but Safe Business
T UDGING from the price-baiting advertisements put forth in the
I great metropolitan dailies throughout the land, one would be
led to believe that regular prices in mercantile offerings had
ceased, and that practically all of the merchants in every line were
disposing of their products at rates varying anywhere from 25 per
cent, to 50 per cent. off.
It would seem to show that the American people have been
fed so long on bargains that they like that sort of food, and would
be satisfied with nothing else, but this price-slaughter advertising
really has succeeded in creating an unsatisfactory condition in most
trades.
Price-cutting in the exploitation of merchandise has been con-
tinued for such a long period that it seems that nothing else but an
abnormally great price slaughter attracts people, and we have gone
the limit.
Cut-rate advertising seems to be sort of a national disease.
They have it even in the talking machine trade, which is an im-
portant industry controlled practically by three houses. Along
these lines, the following was taken from the last issue of The
Talking Machine World:
"Every man in the talking machine trade has had the advantage
of nationally advertised products and has had a price protection
which has been of infinite value. A condition of price cutting and
business disturbances have thus been happily and wisely avoided.
And yet notwithstanding these unusual conditions of strength and
stability there are retailers who, by their public exploitation, are
doing things which would seem to us are not warranted by the con-
ditions which surround the talking machine industry.
"Take, for instance, a public exploitation in which talking ma-
chines are offered on terms which are not in accordance with sound
business methods, and which seem to us to be superfluous and un-
called for.
"According to the advertising announcements of a department
store, one dollar will place a $15 machine and $9 worth of records
in the homes of purchasers. Future payments can be made at the
rate of fifty cents.
"A. $5 payment will place a $100 machine and $10 worth of
records in the home of the user, and a $10 note puts a $200 ma-
chine and $10 worth of records in the same place, and that may be
given back if the machine is returned.
"Do not merchants who sell on such a basis strike a blow at
the stability of the business everywhere? Why pay cash, even if
you have it, when such terms are thrust at you?
"We should bear in mind, too, the fact that such offerings affect
the entire trade. They establish a standard of selling terms which
is liable to be put up to talking machine men in every city and every
hamlet throughout the land.
"What in the name of common sense, when there are not
enough goods to go around, is the use of offering a man a machine
worth $200 and $10 worth of records for a ten dollar note?
"The buyer can use the machine a month with the records and
then return it, and get his money back. The returned machine is
sold again as new. Is this right?
"What is the machine but a used product, and how much are the
records depreciated?
"Furthermore, does anyone believe for a moment that there are
not many people who would take advantage of such terms who do
not, at the time they order the machine, expect to keep it beyond a
very limited time?
"Again the advertisers deliberately turn a cash business from
their own establishments by such offerings.
"Why should a man pay cash for a talking machine when he
can get one for a few dollars per month? Why not run over a
period of a couple of years in his payments when it costs him no
more?
"Such advertising hurts in more ways than one, for it creates
a long time small payment credit business out of what otherwise
might prove a near cash transaction, and it tells the man who has
the cash that he need not pay it save in homeopathic doses over a
long period. Is that good business?
"What is the advantage of offering a hundred dollar machine
for $5 a month and a bunch of records included?
"Under those conditions the purchaser who desired to have a
talking machine in his home during the holidays could secure a good
machine and a few records before Christmas, and after a month's
use decide that he does not desire the machine, return it with the
records, and get his money back. Can you beat it? Not very
well—machine, records, music for a month at no cost."
Price cutting exists in all trades, but it would seem from some
of the advertising matter put forth by various piano houses that
instruments are offered at prices and terms far beyond the limit of
business reason.
Now, piano merchants could not make such terms unless they
were supported by manufacturers, and it has always been a con-
siderable source of wonder why a man who could not get credit
for a suit of clothes in his home town could, through some plausible
story, obtain credit from piano manufacturers to the extent of many
thousands.
The business itself is made up of large individual sales, so
that a dealer who is disposing of many pianos runs his debts into
big figures before the manufacturer realizes it.
Because some have set the pace others have followed in line,
and as a result unbusinesslike methods have been permitted to grow.
There is a disposition on the part of manufacturers to get to-
gether and handle trade problems in a common sense and business-
like manner. This has been particularly emphasized in some of
the recent instances where dealers owing very large sums have had
(Continued on page 6.)
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
6
THE
MUSIC TRADE REVIEW
LESS BUSINESS BUT SAFE BUSINESS (Continued from page 5).
their affairs taken over by manufacturers who are now liquidating
the businesses along equitable lines.
A number of instances which have occurred recently show that
important manufacturers of the country are willing to stand to-
gether for their own protection. Then the question naturally comes
up, if when a dealer gets into difficulties, they have to stand by each
other in order to protect their mutual interests, how much better
it would be to adopt businesslike methods in first selling the dealer,
thus preventing him from getting into an unfortunate financial
position.
Bulk business has been the false light which has led some
manufacturers and dealers into the morasses of business disasters,
but bulk business is not always safe business.
We have always contended that pianos were not well sold until
they were disposed of to responsible parties.
We have also held that manufacturers should exact a reason-
able protection. In other words, that piano leases should be the
legitimate currency of the trade, figured out on an equitable basis.
Unbusinesslike methods, whether followed by the creating or
distributing divisions, are bound to strike on the shoals of disaster
if they are followed long enough—it is only a question of time.
Men are always ambitious to do business. There is always an
incentive to be active.
Disclosures which have been recently made by some important
houses show that credits have been extended in a really startling
manner.
It would seem that this industry could be placed easily in the
soundest position in the world if a few fundamental questions were
only studied more closely and interwoven completely with the trade
system.
In our opinion it would be impossible to find in any trade, man
for man, a better line of manufacturers and merchants than can be
found in the music trade.
Look into any other trade and it will be found that the per-
centage of men who get in trouble and against whom criminal
charges have been made is many times greater than in the music
trade.
Naturally, piano merchants will take advantage of every in-
ducement which is offered to them in the purchase of goods. Why
should they not?
If they can buy instruments on an extraordinarily long time
basis, why, then they are able to offer these same instruments to the
public at nothing down and a dollar a week.
If they were not supported by the manufacturers, few would
have the financial resources to hold long to this kind of business.
When a man is risking his own money he is not liable to take
the same chances that he will when it is someone's else cash that
he is risking, and the dealer who is not making a net profit in his
business each year is demonstrating his unbusinesslike qualities,
and yet when an examination of his affairs reveal that he has riot
sufficent capital to conduct his ow T h business on a paying basis, he
will be entrusted with capital in the way of merchandise sold on
unbusinesslike terms by others.
Why talk about eliminating unbusinesslike methods; to do
it is the real thing. It would'be easy to do this if men would only
act jil concert. Facts have been developed which show that the
methods mentioned are not profitable from any viewpoint, and
when the results stand out clearly and emphatically, the question
naturally follows, why then continue?
The ambition to do business should not cause reasonable safe-
guards to be thrown to the winds.
Better less business, and on safe and sane lines.
EDUCATIONAL VALUE OF THE DEALERS' SHOW WINDOW.
Demonstrated Afresh in Artistic Display of O. K. Houck Piano Co.—Jesse French & Sons Factory
Center of Interest—Window Display Emphasizes Dealer's Progressiveness.
That piano merchants are nowadays appreciating
more than ever before the value of the window
as a trade developer and educator, is apparent
from the attention which is being concentrated on
the arrangement of piano displays.
In this connection one of the most attractive and
Railroad—"The one price, no commission route."
An idea of the completeness of this window, and
the exceeding attention paid to all details, can be
gleaned from the illustration herewith. This dis-
play not only attracted the attention of the public,
but it also served as the best kind of publicity for
In too many establishments the window is abso-
lutely neglected. And this neglect gives a : very
bad impression to the public. It cannot help con-
veying the idea that the piano man, who overlooks
the opportunity for using window space intelligently
and along the lines of publicity, is somewhat
fossilized, and a man not to have dealings with.
On the other hand, the piano merchant who
utilizes his window to good purpose, who changes
the display often, who devotes as much attention
to attracting the eyes of the public, as he does to
Striking Window Display Made by the O. K. Houck Co., Memphis, Tenn., Showing Jesse French
& Sons Factory.
interesting window displays made during the holi-
day season was that prepared by the O. K. Houck
Piano Co., Memphis, Tenn. The window was
especially unique, the lower part showing in minia-
ture the Jesse French & Sons piano factory sur-
rounded by the Memphis, Nashville & Little Rock
the Jesse French & Sons pianos, and the local
agents, the O. K. Houck Piano Co.
Where dealers appreciate the educational value
of the window and concentrate original ideas for
promotion therein, it pays a very satisfactory
dividend.
arranging displays in his warcrooms or laying out
a sales campaign for his outside force, cannot
help but impress the public with his go-aheadedness
and originality—and the fact that he is a "live
wire"—a man worthy of confidence and con-
sideration when it comes to placing orders.
PIANO MEN FOR BOARD OF COMMERCE
DETROIT SALESMEN TO ATTEND.
Special Committee Appointed by Detroit Body
for Purpose of Increasing Membership.
Next Meeting of Detroit Music Trade Associa-
tion Will Be Devoted to Talks on Salesman-
ship—Large Attendance Expected.
departments. Managers of other stores have prom-
ised almost complete delegations. The principal
speaker will be George H. Beach, the leading pro-
ducer in the United States of the Mutual Benefit
Life Insurance Co. His subject will be salesman-
ship. As he sold life insurance to the amount of
$1,250,000 last year, it is evident that he knows
his subject thoroughly. That is why President
Bayley invited him to speak. C. A. Grinnell and
E. P. Andrew will be the other principal speakers.
The routine business of the meeting will be the
installation of the new officers and the appoint-
ment by them of the standing committees of the
association for the year. A. II.. TTowes, of Grinnell
Brothers, is the new secretary. Treasurer A-. E.
Trebilock holds over another term
(Special to The Review.)
DETROIT, MICH., January 19.—Under the leader-
ship of C. A. Grinnell, who is chairman of a com-
mittee of the Detroit Board of Commerce, appoint-
ed for the purpose, an active campaign is being
made to induce all piano dealers in the city to
join the board.
It is likely that most of the downtown dealers
will join. They regard the work of the Board of
Commerce as of general benefit to the business
interests of the city, and feel that they ought to
do their share toward supporting the organization.
(Special to The Revie-w.)
DETROIT, MICH., January 19.—The proposal of
Frank J. Bayley, new president of the Detroit
Music Trades Association, to make the next meet-
ing a salesmen's meeting, arranged especially for
the members of the selling force of the piano
houses which have membership in the association,
has met with an enthusiastic response. It is prob-
able that about sixty men will be in attendance.
Grinnell Brothers alone have asked accommoda-
tions for twenty-five men from all the different

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