Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUJIC TRADE
VOL. LXIV. No. 10
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York, March 10, 1917
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Should Box the Compass of Costs
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N every side changing economic conditions confront us. Systematization and organization in the indus-
trial world have replaced the slip-shod, loose methods which, in many industries, had undermined effi-
ciency in production, thus adding materially to the cost of the manufactured product.
The European war, and the increased demand made upon our manufacturing resources, have
been factors of importance in waking up our manufacturers to a fuller realization of the necessity of reorganiz-
ing their business so that they can meet competition and trade demands along modern and progressive lines.
It is pretty poor logic to meet competition by decrying it. It cannot be defeated so easily. A recognition of
11
'
-"-"ins that in these days of system and organization no man can really afford to ignore any essential
which makes for better results in the domain of manufacturing.
One of the greatest evils prevailing today in the music trade industry, as well as in many other manufactur-
ing lines, is the total neglect on the part of some manufacturers of any definite knowledge as to the cost of
doing business.
Despite the constantly increasing advance of the cost of supplies of all kinds that enter into the construc-
tion of musical instruments, pianos and players are put out today by some manufacturers at a price actually
less than the cost of manufacturing.
It is hardly believable that such an absolute ignorance of the elemental facts in connection with the achieve-
ment of success in a manufacturing business should exist, but it is regrettable to say that it does.
A manufacturer who conducts some retail stores informed The Review recently that before the holidays
there Were offered to Him, and he had purchased for his stores, absolutely new pianos at a price which, after a care-
ful examination, he estimated were sold him at less than it cost the manufacturer to produce them. He added
that the manufacturer who sold these pianos was under the impression that he was making a profit on his
instruments, because he sold a fairly large number in one order and got cash for them.
There can be no excuse for .such ignorance on the part of any piano manufacturer.
How much better it would have been had this man sat down and figured out most carefully the actual cost
of conducting his business—of what his supplies, labor and over-head cost him. He might have been alarmed
at the result of his investigation, but at least he would have known where he was at.
And this marks progress, for there is no man so helpless as the man at the helm of a business ship who is
unable to box the compass of costs. He is bound ultimately to drive the ship on financial rocks, or get stranded
on some shoal where he will need much assistance in order to float off into deeper and safer waters.
There is no use of any manufacturer conducting a business unless he does so for the purpose of making a
profit. The extent of that profit may be governed entirely by his viewpoint, but whether large or small, there
should be a profit.
Such loose tactics in the conduct of a business are bound to engulf a man who practices them unless a reform
is instituted, and instituted right away. The simple, but fundamental fact should be recognized that there is no
money in the piano business for a manufacturer unless his pianos are sold at a profit.
It seems childish to emphasize this fact, and regrettable to realize that any manufacturer would sell his
products at prices which demonstrate conclusively that he does not know what it is costing him to do business,
yet this condition exists.
At any time this policy would lead to disaster, but today, when no man can estimate with any certainty re-
garding the increase in the cost of supplies—for they are going up day after day—the policy is one that leads to
veritable business suicide.