Classic Mode

Music Trade Review

Issue: 1915 Vol. 60 N. 15

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
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
PIANOS
Familiarize yourself with
the special features of
these dependable instru-
ments—features which are
not mere talking points,
but substantial piano
value.
We should like to show
you.
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.
For Sheet Music, Player-piano
Rolls and Phonograph Records.
Afford perfect protection and
instant accessibility. Made in a
variety of styles and beautiful fin-
ishes.
Write to-day for Illustrated
Catalog and Trade Prices
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,
N e b . ;.-•,^*»-
"
' ;
"' -
Our "Sales Plans" will help you build.
Write for them.
Geo. P.Bent Co.
GEO.P.BENT. CROWN €f
CONCORD PIANOS
-2/*> South W>.l,.,hAr:
Ch i\myo.
I/. «J". A.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
GREAT INDUSTRIAL ACTIVITY PREVAILS IN DETROIT.
Busy Times at Many Manufacturing Plants Presages More Piano Sales for Future — Making
i
Plans for Lively Meeting of Association—Goodfellowhip Club to Give Dance.
(Special to The Review.)
DETROIT, MICH., April 13.—Business with piano
music dealers during the past week showed a
slight improvement. The weather has been ideal
for spring and the streets have been crowded.
Whenever this condition exists there is sure to be
more or less buying and every class of store bene-
iits. For Easter, the windows of music dealers
were appropriately trimmed, most of them display-
ing flowers in profusion.
"While business was quiet in March, it cannot
fail to improve during April and May," said one
Woodward avenue dealer to The Review repre-
sentative. "Detroit's factories in all lines are busier
at this time than they have been in many many
months. I know it to b^ a certainty that at least
twelve automobile factories are advertising in other
cities for help. They say they cannot get sufficient
skilled workmen here. Many of the factories are
working day and night shifts. And not only are
the auto factories busy, but so are other lines of
trad?. Business conditions, as a whole, never
looked better, and I don't see how the music trade
can fail to get a share of the prosperity. A real
estate man told me that the demand was unpre-
cedented for homes, most people getting away from
the idea of renting. And that's a good thing for
us because wherever there is a home that is owned
by the people who occupy it, there is a live prosp ct
for either a piano or piano-player. The argument
that 'no home is complete without a musical in-
strument,' is a sensible one and a convincing one
for salesmen to use."
President Arthur H. Howes, manager of the
piano department of Grinnell Bros., and president
of the n.'wly organized Detroit Music Trades As-
sociation, is looking forward to a largely attended
and interesting meeting of the association on
April 13.
F. P. Andrews, manager of the J. L. Hudson
music department, has been busy taking up mat-
ters in connection with the new store at 188-190
Woodward avenue, which the Hudson Co. will oc-
cupy with its music department. At 6 o'clock,
April 1, contractors started to tear out things in
the structure at that address, and they have been at
it vigorously ever since. Every minute counts and
the contractors have promised to do "the quickest job
of their lives." When the remodeling is completed,
the building at 188-190 Woodward avenue, will look
like a new structure; in fact, it will practically be
a new one. And it won't take over six weeks to
do the job. Mr. Andrews is looking forward to
doing business at the new location by May 15.
Meanwhile, a removal sale is being conducted on
the seventh floor of the main 1 fudson building that
is productive of good result-;. Sales are better on
new instruments than on second-hand oirs; as a
matter of fact, a lot of sales are made where old
pianos are taken in and allowances made. But dis-
posing of second-hand instruments is not an easy
pioposition. People seem to prefer paying a little
extra and getting something absolutely new. They
take greater pride in a new instrument. More than
one music dealer has remarked lately that getting
rid of second-hand instruments is "getting to be
;>. tough proposition."
"Everything comes to him who waits" is the
basis on which the members of the Detroit Piano
Co. are constantly working. In other words, they
contend that if you just keep persistently at any-
thing, treat the public right, have the right kind of
merchandise to offer, business is sure to come. It
may not come all at once, but the sales for the year
will justify the effort. "January and February
were kind of dull, and so was the first part of
March, but the last wek in March we sold four
player-pianos in four days, two of them Mehlin
players, one Emerson player and one Emerson up-
right," said F. M. Ramsdell, of the Detroit Piano
Co. "All of them were new instruments, and on
each sale we received a good sized deposit. We
lind that it never pays to get pessimistic during a
dull period because it is sure to be followed with
good business. We (speaking for three members
of the firm and H. A. Smith, salesman) spend all
of our time chasing up prospects personally, and
find that it gets results."
Just as we go to press we are informed that the
Goodfellowship Club, which includes in its mem-
bership the male employes of Grinnell Bros., De-
troit, is getting ready to give a masquerade dance
at the Clark Dancing Academy. It is to be the
first event of the kind attempted by the club, but
judging from the enthusiasm and interest, it is
going to be a big success. The ladies are to be
invited, and this will also be the first time that the
club has given an affair where the ladies were
present. Usually the Goodfellowship Club doings
are for the men only. Chairman P. W. Guest of
thj committee, handling the dance, says he looks
for an attendance of approximately 200 people.
Manager C. W. Cross, of the Bush & Lane
Piano Co., in Detroit, says th^re is no such word
as "dull" as applied to business. "It's just a case
of going after it," he says. One of his star sales-
men, Lawrence II. Davis, who has been with him
for about four months, and who was formerly a
member of the piano firm of Stanley & Son, sold
th* first Bush & Lane Cecilian player-piano that
arrived in the store; the sale was made on March
27 for $750 spot cash, and it took only about ten
minutes to "turn the trick." "All I had to do was
to take off the front board and let the man see the
construction of this wonderful instrument," said
Mr. Davis. "The man asked how soon we could
send it up, and when we told him inside of
an hour, he immediately wrote out a check for the
$7;"iO." Since then this branch has sold four of the
players. At the time the writer called, none were
in stock although several prospective customers
were waiting to see them. Mr. Cross says that the
new Farrand player, s'lling at $1.50, the first of
which he received on April 1, is making quite a
hit. "It is by far the best player for that money
that I have ever seen," he said.
PARENTS GET PIANOS FOR SCHOOLS.
\
j
Example of New Orleans Citizens Should Have
Indorsement of the Trade.
GUARANTEED
MUSICROLLS
Through the efforts of the parents of school
children in New Orleans in raising funds a num-
ber of the schools of that city have been sup-
plied with pianos and other musical instruments
that in the ordinary course of events would have
been compelled to go without means for musical
instruction and entertainment. Lack of funds in
the hands of the school board has prevented the
purchase of pianos, but when parents have raised
an amount approximating half or more of the en-
tire cost of an instrument the school board has
shown a willingness to appropriate the balance.
The example of the parents in New Orleans
should prove an inspiration to parents in other
cities and should receive the cordial indorsement
of the piano men.
T
HE satisfaction of a customer
does not depend entirely on
the quality of the goods. Serv-
ice is of vital importance.
It has been for this reason that we
have devoted much time to the care-
ful study of the requirements of
piano merchants with the result that
our service department has become
one of the most efficient in the world.
ih
Samuel J. Smith has opened a piano store in
Shamokin, Pa.
iin:
Three Distributing Points, Where
Orders Are Shipped the Same
Day As Received
GONNQRIZED MUSIC
144 thSt.and Austin Place, NEW YORK
CHICAGO,
ST.LOUIS, PITTSBURGH,
209So.StateSt. 1234OIive5t. 8
You make the most profits
with Quality Benches, so
send for our new catalog
III'!
N. Y. Piano Stool & Bench Co.,
Stroudiburg, Pa.
mm PiflNo STOOL

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