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THE MUSIC TRADE REVIEW
FACTS REGARDING INSTALMENT SELLING ANALYZED
By Edward M. Woolley in an Interesting and Comprehensive Article in Printers' I n k — H o w
the Forcing of Piano Sales Has Developed Financial Problems—Low Percentage of Losses.
Under the heading "Selling on Instalments" Ed-
ward Mott Woolley, a writer of note, is discussing
in Printers' Ink the many phases of this impor-
tant sales method. Part 1 of this interesting series
is devoted to a discussion of the market and the
selection of customers, and Mr. Woolley devotes
quite a little space to the problems and possibilities
of the piano, talking machine and musical instru-
ment dealers who do an instalment business.
Referring to one dealer's opinion that a man's
buying capacity as far as a piano is concerned
should be placed at 30 or 40 per cent, of his in-
come when he is buying on instalments, or in
other words that a man earning $1,000 a year
might be good for a $300. piano, Mr. Woolley says
in part:
"But everything is not lovely in piano instal-
ments. True, instalment selling has built the
piano trade; at least so far as the cheaper makes
are concerned. Eighty-five per cent, of the pianos
sold in the United States are placed on instal-
ments. The average time of piano paper is given
as three years. Sometimes terms have been given
as long as forty-eight months.
"The forcing of instalment pianos has placed
the lure of the instrument upon all classes of
people, regardless of musical ability. Families that
would shy at a $5 extravagance in other lines
will enter into a $300 piano contract without a
quaver. These facts are worth thinking about in
connection with many other lines of possible in-
stalment goods.
"It has been the leniency of piano dealers—long
terms and renewals—that has kept the average
losses down and enabled a lot of purchasers to
work out slowly. But this has brought serious
problems to the dealers. Instead of money, they
have had paper to handle—and not commercial
paper, either. How some of them handle it will
be touched on in the next article.
"Still, the average piano buyer will 'hang up' his
grocer and landlord before he will let his instru-
ment go back. Instalment dealers cite this fact
with pride. The natural question to suggest it-
self, however, Ls this: 'Is an instalment customer
a desirable one when he has to "hang up" his other
creditors in order to pay? Isn't that situation
against the whole philosophy of instalment sell-
ing?'
Instalments in Scale of Salesmanship.
"The fact of the matter is that instalment sell-
ing isn't as high a type of salesmanship as cash
selling. The business management back of it may
be of a type just as high, but the actual placing
of the goods takes less skill. It is likely that a
higher type of piano salesmanship could place a
great many more pianos for cash or on short-term
instalments, among customers able to pay, than
are now being placed.
"In spite of this situation dealers in the cheaper
pianos continue to force the market, and assert
that piano customers are the safest of instalment
buyers. Some dealers even offer pianos on trial
without any payment down, and, further, agree to
pay the freight.
"Phonographs are another class of goods where
the instalment market has been worked aggres-
sively. The inquiry naturally arises as to whether
a situation similar to that of the piano industry is
not being created. The everlasting hammering on
the instalment market in any line creates a buying
T1NDALE
Music Cabinets
Tindale Cabinet Company
CASE THROWN OUT OF COURT.
Action Brought Against Milwaukee Piano Man-
ufacturing Co. for Piano Seizure Doesn't
Hold—Plaintiff's Story Doesn't Hold.
(Special to The Review.)
James Sutherland, at one time proprietor of
Sutherland's Old Reliable Music House, Toronto,
Ont., and after his retirement connected with the
R. F. Williams Music Co., died at his home in
Toronto last week from an attack of apoplexy.
Style E.
1W. 34th Street
New York
CONCORD
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MILWAUKEE. WIS., April 6.—The Milwaukee
Piano Manufacturing Co. and Peter Peterson,
head of a piano moving concern, were the winners
in a $500 damage suit brought against them re-
cently in Judge Cordes' branch of the Civil Court
by Margaret Daly, when the case was non-suited
at the instance of the woman's attorney.
It seems that Miss Daly had purchased a piano
of the Milwaukee Piano Manufacturing Co. with
the understanding that the company could take
away the instrument at any time she became de-
linquent on her payments. In her complaint Miss
Daly admitted that she got in arrears in regard to
the payments on the piano, but alleged that on
January 15 the defendant piano concern sent its
agents and the moving concern to remove the
piano when she was sick in bed with tonsilitis. She
charged that the movers insisted on opening the
window of her room, causing her to suffer a re-
lapse. It developed from the testimony, however,
that Miss Daly went to work that night, so the
case was non-suited.
DEATH OF OLD TORONTO DEALER.
mean good sales and good profits.
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habit. Phonograph prices have been pretty well
standardized, but there is extreme competition be-
tween local dealers as to terms. Real salesman-
ship is at a discount, and there is a race to see
which dealer will grant the longest time and the
smallest payments. You can get an instrument
with the first payment deferred thirty days, and
dealers say it is a common custom to sell instru-
ments on time at the cash price. Probably more
than 50 per cent, of the talking machines sold in
the United States are placed on instalments, but it
is also a fact that the majority of these instalment
instruments are the lower-priced goods.
"Several dealers questioned agree that their
losses do not exceed one-half or three-quarters of
1 per cent.
" 'Why, we couldn't do business at all if it
weren't for partial payments,' said one dealer.
'And if you do it right you make money. Out of a
total business of $28,000 last year I had to take
back only one machine.'
"Another dealer said this:
" 'I hammer the collection end, and my cus-
tomers step around. Not one in a hundred will
fail to dig up the cash in a hurry rather than
suffer the ignominy of losing his instrument. 1
know of one customer who committed burglary
to pay an instalment. That is "going some." '
"It certainly is; but that customer surely over-
bought.
"A Brooklyn man, who had been in the men's
furnishing business for years without making any
money, went into instalment phonographs three
years ago with a capital of $3,000. He claims
that last year he netted $19,000. I have no
means of verifying this statement. Readers of
these articles are requested to draw their own con-
clusions all through; for the purpose here is
neither to advocate nor knock instalment selling,
but to show its philosophy and practice.
"In all sorts of musical instruments a large mar-
ket has been developed by instalments. One dealer
estimates that 70 per cent, of such goods are sold
that way with a small percentage of loss."
A CONCORD OF SWEET SOUNDS
J. C. Acton has arranged to open a piano store
in Fremont,
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