Music Trade Review

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THE MUSIC TRADE REVIEW
Getting Accustomed to the New Price Level
By HOWARD PEMBERTON, President, Harrison-Landauer, Inc.
HE prices of 1914 are gone—not to return in the near future.
T
The removal of some twenty million European men from
the ranks of the producers has resulted not only in a famine in
the labor market but also in an excess demand for the raw ma-
terials and finished product of that labor.
The inevitable result has been a higher level of prices, the
increase in nearly every case having been passed on to the
ultimate consumer, who rightfully should pay all price ad-
vances-—fairly incurred.
A notable exception to this general price advance is the
wholesale price of pianos, which has been advanced only a
fraction of the extra material cost, without regard to the labor
increase.
Manufacturers as a rule regard the question of raising prices
with timidity, on account of the unlimited competition that pre-
vails in the industry. But it is a dead sure shot that prices will
have to go up all along the line, or more than one manufacturer
will suffer a serious diminution of profits.
Away back in the golden past pianos sold at decent prices
that yielded a fair return to all concerned. Then came the
$350, the $300 and the $250 piano. Both manufacturers and
dealers finally adjusted themselves to this range of prices for
the medium grades. The $195 piano which appeared later was
a disturbing factor, but all in all, the above range of prices was
pretty generally maintained.
But these prices can be maintained no longer, and it's all
humbug to try and maintain them. Why should a piano dealer
sell his $250, $300 and $350 pianos at these prices in 1917, when
he is obliged to pay for everything he buys—necessities, semi-
necessities, and luxuries, from 100 to 200 per cent, more than
in 1914? Are retail piano prices sacred? Are they to stay at
their present range forever, without regard to advancing prices
in everything else?
The point of the whole situation is that the manufacturer
has hesitated to raise his wholesale prices because of the in-
flexible determination of the retail piano dealer to maintain the
old price level.
Will the public stop buying pianos if, for instance, there is
a flat $50 retail advance on each of the three grades named above?
have been published of articles that cannot be shipped at the
present time. These lists invariably include musical instruments
and supplies.
If embargoes continue to be placed at the present rate, the
majority of the markets of the world will be closed for a period,
at least, to the manufacturers of musical instruments in this
country. There has been some hint that embargoes are not
always necessary except from the viewpoint of commercial com-
petition, but nevertheless they exist, and existing provide a
distinct check to the expansion of our foreign trade.
H. BLISS, general sales manager of the Q R S
G EORGE
Co., made a very interesting address before the convention
of the Piano Merchants' Association of Ohio on the subject of
music rolls. Mr. Bliss frankly advised music dealers to give
the public what they want, be it classical music, plantation music,
patriotic music, or even what has been described by one musical
authority as rhythmic noise—jazz music. Mr. Bliss made a very
eloquent appeal for the jazz roll, and although he may have
thereby rendered himself somewhat liable to the shafts of those
who are seeking to educate the American public to an apprecia-
tion of music of the better sort, he nevertheless has the courage
of his convictions, and will, doubtless, if taken to task, defend
the jazz roll to its very last reverberation.
Mr. Bliss points out that the purchaser of a player-piano
buys that player because he wants music. It is safe to say that
a majority of the player sales at the present time are made to
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musical name
in the World.
PIANOS
They will not. People do not stop buying on an advancing
market. It is only when the price remains stationary that they
become indifferent.
People in general have always had the impression that there
is a tremendous profit in pianos. Well, if we maintain the old
prices in the face of advancing prices of everything else on earth,
are we not confirming the opinion of the public?
Why, even automobile prices have advanced, some of them
twice. Flour, eggs, meat, butter, milk, medicines, coal—the list
is without end—have jumped clear out of sight.
It is true that the Government has named prices for coal,
wheat and certain war-time necessities. But Uncle Sam is in-
clined to let other products find their own war-level prices.
War-level prices. That's the idea that must filter through.
We have got to forget 1914. Here it is 1917, and we are selling
pianos at little above 1914 prices, and paying everyone else war-
level prices. Even the prices of commodities regulated by the
Government are way above the ante-bellum level. Think of $2.20
for wheat on the farm in 1914! Why, the farmer was tickled to
death when he got $1.50 and $1.60 even after the war broke out.
Perhaps some manufacturers have had foresight and luck
enough to buy materials at lower prices than now prevail and
are giving the dealers the benefit of that foresight by not raising
their prices, living in hope that there may be an improvement
in material prices in the near future.
But what is there to justify this view? What will material
prices be in 1918? Does it not seem probable that they will at
least be as high or higher? Suppose the war ended to-day!
Why, then we would start in to rebuild Europe. There is five
or ten years' reconstruction work there to be done before we
even begin to get things patched up, let alone rebuilt. And
what, oh what, will that demand for metals and all kinds of
materials do to prices here?
Lower prices? Vain thought. There may be slight reces-
sions from time to time, but it seems impossible that the general
tendency will be anything but higher for years to come.
Piano prices must advance materially—to the dealer, and to
the buyer, and the advances should keep abreast of advancing
costs of materials and labor, if the piano industry is to endure.
people who want music, but who are incapable of producing it
themselves. If these people want music it logically follows that
they want the kind of music that appeals to them most. If
they want classical music, ragtime will not appeal to them, and
if on the other hand they are devotees of jazz, operatic selections
will only bore them. The transferring of their preference from
jazz and ragtime to the works of the great masters is a matter
of education, which is always a slow process, and which always
comes gradually.
In the meantime, the music dealer can make as much profit
handling one class of rolls as he can by handling another class,
and until the American public has been educated up to the point
where it will be satisfied with nothing short of the best and
most artistic in music, it seems that the retail merchant can do
nothing but follow Mr. Bliss' advice and give the people jazz
if they want it.
RATHER significant and very gratifying condition is re-
A
vealed in the reports made by those statistical gentlemen
whose unpleasant duty it is to keep a record of firms, corpora-
tions and individuals which have failed to keep the necessary
two jumps ahead of the Sheriff. These agencies during the last
few weeks "have reported the smallest number of business casual-
ties since the start of the war. These records made by Brad-
street's and Dun's, second only to bank clearings, are probably
the best barometers of business to be found, and it is pleasing
to note that the business health of the nation is sound.
ORGANS
E5TEY PIAND COMPANY NEW YORK CITY-
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