Music Trade Review

Issue: 1918 Vol. 66 N. 18

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
flUJIC TRADE
VOL. LXVI. No. 18
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York.
May 4, 1918
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llSo$£
Erroneous Ideas Regarding Piano Profits
S
OME extraordinary ideas prevail among the general public regarding the profits made by piano merchants
and manufacturers. And the general public evidently includes lawmakers, for it was pointed out in our
Washington correspondence last week that Representative Cary, of. Wisconsin—who has introduced a
bill in Congress which, if passed, would work a serious injury to the sales of musical instruments on
instalments in the District of Columbia—is obsessed with the idea that instalment merchants, piano dealers
included, are making exorbitant profits. He informed The Review representative that "many of them arc
getting a margin of profit from one hundred to three hundred per cent.," and he places little reliance on the
figures submitted to him by piano men regarding the average profits in the retail department of the industry
today, which are very far from agreeing with his.
The views of the Representative from Wisconsin have undoubtedly been influenced by the erroneous general
opinion that profits in piano manufacturing are enormous. The sales methods of piano dealers in the past have
also placed the retail branch of the industry under the suspicion of piling up excessive wealth. It must be
admitted that the practices of some members of the industry in years agone could not help but lead to this
viewpoint, which may be attributed in a large measure to the lack of a definite one-price policy, and a tendency
on the part of some members of the retail trade to indulge in puzzle contest and "prize" schemes of sales pro-
motion that gave the general public an idea of enormous profits and brought selling methods to a low level in
the public mind.
These sales methods, of course, were the exception rather than the rule, but the lurid advertisements in
the daily papers, and the sensational methods of publicity indulged in generally, tended to fill the public mind
with the idea that there was no stable basis for prices in the piano field, and that profits in piano sales were
like the profits we hear about when "war babies" are discussed.
Where there is a lack of uniformity in prices there is undoubtedly a lack of confidence, and it can be
naturally assumed that if a dealer asks $400 for a piano, and finally consents to take $300 for it, there is some-
thing wrong with the value of the piano, or with the man who upholds such a sales system. In other words,
this old-time, elastic system of sales was absolutely wrong, and it has taken some time to succeed in educating
the trade away from this form of salesmanship.
Representative Cary should realize that trade ethics, and trade profits to-day, are far different from those
that prevailed some years ago, and that there is a decided reaction against the practices which came in at that
time for such continuous criticism and censure from The Review.
It is unfortunate, however, that the lack of adherence to the one-price principle of doing business—the
indulgence in questionable sales methods in the past—should blind the critics to the fact that the music trade
industry to-day is, we are glad to say, making strong and steady strides along the right road in the retail sales
domain.
Price cutting in every line to-day is becoming decidedly unpopular. Enterprises in which the most clastic
conditions prevailed a few years ago are now becoming more and more rigid in insisting upon the maintenance
of one price and shorter terms in time sales. This is due not only to a general sentiment among business men
that price cutting is not "good business," but it also may be attributed to public opinion, which is supicious of
stores wherever undue elasticity of price exists.
Houses in the music trade industry which have been identified in the past with the one-price policy have
made it pay; moreover, they have the confidence of the community in which they do business, while those
houses that have held to the old elastic price system and sensational price-cutter's methods of publicity have
lost ground.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC
TRADE
REVIEW
PUBLISHED BY EDWARD LYMAN BILL, Inc.
President, C. L. Bill, 373 Fourth Ave., New York; Vice-President, J. B. Spillane,
373 Fourth Ave., New York; Second Vice-President, J. Raymond Bill, 373 Fourth Ave.,
New York; Secretary and Treasurer, August J. Timpe, 373 Fourth Ave., New York.
J. B. SPILLANE, Editor
J. RAYMOND BILL, Associate Editor
AUGUST J. TIMPE
Business Manager
Executive and Reportorial Stall:
B. BRITTAIN WILSON, CARLETON CHACE, L. M. ROBINSON, WILSON D. BUSK, V. D. WALSH,
W K . BRAID WHITE (Technical Editor), E. B. MUNCH, A. J. NICKLIN, L. E. BOWERS
BOSTON OFFICE:
CHICAGO OFFICE:
TOHN H. WILSON, 324 Washington St.
E.
P. VAN HARLINGEN,
Republic
Building,
Telephone, Main 6950.
209 So. State St. Telephone, Wabash 5774.
LONDON, ENGIiAND: 1 Gresham Buildings, Basinghall St., D. C.
NEWS SERVICE IS SUPPLIED WEEKLY BY OUR CORRESPONDENTS
LOCATED IN THE LEADING CITIES THROUGHOUT AMERICA.
Published Every Saturday at 373 Fourth Avenue, New York
Entered at the New York Post Office as Second Class Matter.
SUBSCRIPTION (including postage), United States and Mexico, $2.00 per year;
Canada, $3.50; all other countries, $5.00.
ADVERTISEMENTS, $4.50 per inch, single column, per insertion. On quarterly or
yearly contracts a special discount is allowed. Advertising pages, $130.
REMITTANCES, in other than currency forms, should be made payable to Edward
Lyman Bill, Inc.
P I a -a ar P i a n n 9 n J
Departments conducted by an expert wherein all ques-
I lay er-r lanii ana
T . . L . ! . . ! PI.r.~ n ..I.*. A ..|.»
lechniCal Departments
t i ons
technical nature relating to the tuning,
o f a
regulating and repairing of pianos and player-pianos
| dealt with, will be founS in another section of
REVIEW
MAY
4, 1918
wide success. 1 le has ever been actuated by the highest ideals
in the conduct of his business, and has won the respect and
affection not only of his official family but of all members
of the trade who have come in contact with him and with his
house. His career is virtually an inspiration to his associates,
and is in keeping with the best traditions of the industry.
Mr. White has turned over the actual management of the
business to a group of men of exceptional ability and trainiijg,
headed by B. H. Janssen, whose wide experience, sound judg-
ment and enthusiasm should enable him to win new records in
the field of manufacturing and merchandising with which he is
so thoroughly acquainted. Assisting him are a splendid body
of executives, each of whom has won high standing.
As general sales manager F. E. Edgar will have new and
larger responsibilities which mean much for the expansion of
the Wilcox & White Co., for he has earned the good will and
esteem of every member of the trade, and with Mr. Janssen as
general manager and Mr. Edgar as general sales manager, there
will be team work that should bring the best kind of results.
With a New York factory for the production of the Wilcox
& White piano and an office and salesrooms in the metropolis,
this famous concern, which ranks as a pioneer in the domain of
player-piano manufacture, enters on a new era that means much
for the future of this institution.
EPORTS from Review correspondents in widely separated
R
sections of the country would indicate that while business
in the music trade field has been somewhat disarranged through
the great campaign for putting the Third Liberty Loan "over the
top," yet sales have been of fair average in many sections of the
Exposition Honors Won by The Review
country, particularly in the South. But a more serious dis-
Grand Prix
Paris Exposition, 1900 Silver Medal. .Charleston Exposition, 1902
turbance
is the scarcity of instruments which is due very largely
Diploma.. .Pan-American Exposition. 1901 Gold Medal. ...St. Louis Exposition, 1904
Gold Medal. .Lewis-Clark Exposition, 1905
to the delay in shipments. The railroads, while making a better
LONG DISTANCE TELEPHONES—NUMBERS 5982—6983 MADISON SQ.
record than some months ago, are still far behind in the trans-
Connecting all Departments
Cable address: "Elbill, New York."
portation and delivery of pianos, with the result that dealers are
bombarding the manufacturers with complaints.
NEW YORK, MAY 4, 1918
Dealers are hoping for a greater use of automobile service,
particularly to towns and cities not too far removed from piano
manufacturing centers. If the railroad congestion doesn't lighten
EDITORIAL;
such a service may be considered more seriously.
The Merchants' Association of New York, at the request
of the Highways Transport Committee of the Council of National
HE close of the Third Liberty Loan campaign finds the piano,
Defense, is carrying on a great campaign in the advocacy of a
talking machine and allied industries again giving tangible
greater
utilization of motor transportation of freight, particu-
evidence of their loyalty and patriotism. While exact figures
larly
for
short hauls of from twenty to a hundred miles. In this
are not obtainable as we go to press, the trade in New York City
1
connection
a "Return Loads" Bureau has just been created for
put its quota "over the top ' in splendid shape, and reports from
the
purpose
of facilitating the movement of merchandise by
the various centers throughout the country are unanimous in
trucks.
giving due praise and credit to the industry as a whole, and to
It is pointed out that there are many firms, companies, or
the work of the individual members of the trade as well, in bring-
individuals that own trucks which they use only in their own
ing the campaign to a successful termination.
business and which stand idle part of the time, or which from
Unlike many other industries, the piano trade has in no way
benefited directly through wartime conditions. On the contrary, time to time deliver a load in a neighboring city and return home
empty. There are also shippers who have depended on the rail-
supplies have been harder to obtain, labor has grown scarcer, and
road
but in emergency wish to make a quick shipment.
the coal and freight embargoes have added to the burden the
The bureau will keep a daily record of these and act as a
piano manufacturer has had to bear. Juicy war orders, which
kind of information bureau or "clearing house" between truck
have been bonanzas for other industries, have not given the piano
owner and shipper, both of whom, of course, will keep in touch
manufacturer cause for much rejoicing, for those few orders
which have come into the industry have barely made up for the with the bureau.
It is not'necessary to emphasize the need in war times of
curtailed output of musical instruments. Yet the members of
keeping freight moving freely in view of the congestion which is
the piano industry, from the presidents of the largest piano manu-
almost constant on the usual transportation lines. Hence the
facturing concerns down to the boys who sweep up the shavings,
Merchants' Association of New York hope to be able to remedy
have "done their bit," be it large or small, towards showing
much of the difficulty by providing a means for shippers and
Uncle Sam that they are Americans first, and piano men after-
truckmen to learn each others' needs, and thus keep business as
wards. There are no slackers in the piano trade. The three
nearly normal as war conditions permit. The co-operation of
Liberty Loan campaigns stand as irrefutable evidence of this
manufacturers and shippers generally is solicited by this bureau
fact.
and the move, which is a most interesting development of war
time needs, is certainly worthy of support.
HE reorganization of the Wilcox & White Co., reported in
last week's Review, not only makes an important forward
step in the productive and distributing policy of this old-time
HE necessity for "better selling" in the retail piano field was
institution, but it takes long borne responsibilities off the shoul-
pointed out by C. B. Garritson, president of the Kroeger
ders of James H. White, the honored president of this company,
Piano Co., in an article of more than usual interest in last week's
and transfers them to the shoulders of younger men who, by
Review in which he emphasized that there are five things the
training and experience, are fully competent to bear them.
piano dealer has to contend with: First, a shortage of stock
that will become more acute as time goes on; second, an increase
Mr. White has steered the destinies of his house to world-
ar
this paper. We also publish a number of reliable technical works, information concern-
ing which will be cheerfully given upon request.
T
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