Music Trade Review

Issue: 1918 Vol. 67 N. 12

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
REVIEW
THE
VOL. LXVH. No. 12
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York.
Sept. 21, 1918
* lu '&&°&; ^ . r ' " '
A New Policy on Sales Terms
A CHICAGO piano manufacturer has notified his trade that hereafter the outside limit of time for accounts
/ % shall be four months. Another manufacturer in the same city has requested all dealers to cease selling
/
% at retail on terms that require more than two years for liquidation.
^
^
The Government has agreed to give our industry enough iron and steel to keep it alive until next
March. Production will be "down." Demand is already "up." For the first time in the history of the piano
trade, the market is a sellers' market. It is harder to get the goods to sell than to sell the goods we have.
Necessity is, or ought to be, the mother of invention. New conditions breed new practices, and progress
is the only possible alternative to stagnation. The long term practices of the trade were based upon an exist-
ing condition of long standing. That condition, however, no longer exists.
The existing situation is unique. Piano manufacturers are unable to fill their orders. Piano dealers are
unable to obtain pianos to sell in quantities to suit, or come near suiting, their requirements. Meanwhile manu-
facturing costs have steadily increased and wholesale prices have been necessarily raised in accordance. Yet
those prices are still lower in proportion than the prices of any other standard line of goods, price being sup-
posedly based on a due relation between cost and profit.
The value of a dollar is measured by what it will buy. The dollar of 1918 compared with the dollar of 1916
is worth about 60c. At the same time, more dollars than ever are being earned.
Wherefore, costs must rise. They must continue, in fact, to rise just so long as this condition exists; this
condition of the cheapened dollar and the growing quantity of dollars earned. Wherefore, likewise, prices must
go up; or piano making will cease to be profitable.
But if pianos cost more and more, it is manifest that more and more money must be tied up in the produc-
tion of each one. If, again, as we know to be the case, supplies are scarce and contracts for them uncertain, it
is equally manifest that the financing of an adequate stock must be more and more of a problem to the manu-
facturer. The latter therefore must deal with his financial resources in a manner wholly different from that
which for so many years before the war amply sufficed.
In a word, the manufacturer must get his money back more rapidly and more easily. He must turn it over
more quickly. He must therefore shorten his terms, or else increase his prices out of sight.
Can the dealer stand the new order of things? Obviously he can. He must indeed change his methods of
doing business somewhat. But this is just what everybody else is doing. Closer terms from the retail con-
sumer can be obtained, just as soon as the dealer realizes that the demand for music is just as strong as ever,
and in most cases stronger, since the war began; and that persistent pushing will not only enable him to sell
goods but to sell them on his own terms and at his own prices.
Piano dealers are enjoying the rather unusual experience of being able to choose their customers, to
dictate terms and allowances, and to transact business on as nearly a cash basis as is possible in any retail busi-
ness where the unit of purchase involves a comparatively large amount of money. These conditions augur
prosperity for the entire industry, and the augury will become an accomplished fact if piano dealers will study
the situation aright, and remodel their former methods of doing business so that they conform to present-day
needs and circumstances.
New conditions breed new policies. Let us inaugurate the policy of talking value, and abandon that of
apology and cheapness. It can be done and it is being done. Those who are trying it persistently are not
complaining; in fact they are rejoicing.
Let us cease to sell pianos on the basis of how little they cost, and try selling them on the basis of how
much they are worth. This will be, in fact, more and better than policy; for it will be honesty.
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 and Treasurer, 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; Assistant Treasurer, Wm. A. Low.
J. B. SPILLANE, Editor
J. RAYMOND BILL, Associate Editor
Executive and Reportorial Staff:
B. BRITTAIN WILSON, CARLETON CHACE, L. M>. ROBINSON, WILSON D. BUSH, V. D. WALSH,
WM. BRAID WHITE (Technical Editor), E. B. MUNCH, A. J. NICKLIN, L. E. BOWERS
BOSTON OFFICE:
JOHN H. WILSON, 324 Washington St.
CHICAGO OFFICE:
E. P. VAN HARLINGEN, Republic Building,
Telephone, Main 6950.
209 So. State St. Telephone, Wabash 5774.
LONDON, ENGLAND: 1 Gresham Buildings, Basinghall St., D. C.
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Departments conducted by an expert wherein all ques-
PIlVPP
Pi an A aUU
anil
• lajCl-rmilU
tions of a technical nature relating to the tuning,
regulating and repairing of pianos and player-pianos
J
a r e dealt with, will be found in another section of
this paper. We also publish a number of reliable technical works, information concern-
ing which will be cheerfully given upon request.
Exposition Honors Won by The Review
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REVIEW
SEPTEMBER 21, 1918
The co-operative advertising idea is not in any sense an
experiment, but has been tried before in various cities, par-
ticularly Milwaukee, where something like twenty-five piano and
talking machine houses backed a campaign that attracted atten-
tion throughout the country.
It is no time for piano merchants favorable to the idea to
let petty jealousies in their local trade interfere with the pro-
gram. Just now music and musical instruments require all the
publicity they can receive in every part of the country. The
fact that music has developed a surprising strength as an impor-
tant factor in the carrying on of the war places the general pub-
lic in a mood to receive with favor arguments in favor of music
and musical instruments in the home.
It is an unusual opportunity for the music dealer to come
into his own. It has been argued that it is unwise to create a
demand for more musical instruments when the output is not
sufficient to meet ordinary requirements at present. This adyer-
tising campaign, however, is so designed that it does not in any
sense concentrate on immediate buying. The advertising copy
urges the cause of music, of music in the home, most desirable
now if the conditions permit of the reader following his bent
in purchasing immediately, but likewise desirable in the future
when his affairs are such that he can invest. The copy is so
designed that it does not place those sponsoring the advertise-
ment in a position of endeavoring to sell something of which
they are not possessed. For those who have the goods the
campaign should act as a stimulus to sales. For those who are
short of stock it can be considered in the nature of propaganda
that is going to have a lasting effect on the newspaper readers
in every city where the idea is carried out.
It is a movement worthy of the support of everyone inter-
ested in securing a greater recognition for music and musical
instruments, and in the preparations for after-war business.
I N arranging the final draft of the new War Revenue Bill, the
1 Senate Finance Committee might well consider the attitude
of the British law makers in the drafting of the new measure
in
that country placing taxes on what are termed luxuries. The
EDITORIAL^
list of luxuries set forth by the British is a long one, and while
it is true that it includes pianos, it refers only to "pianos other
than uprights," and in a special section provides that no tax
S was reported in The Review last week, arrangements have
shall be paid on any piano when purchased for schools or teach-
now been completed by C. M. Tremaine, director of the
National Bureau for the Advancement of Music, for one of the ing purposes. That England can take this broad view after four
years of war, with the expense thus entailed, is worthy of
most ambitious national campaigns of co-operative advertising
thought. It indicates that grands and player-pianos are in-
ever inaugurated in the music trade. The campaign will con-
cluded in the luxury list, not from choice but from sheer neces-
sist of twelve advertisements running one each week in news-
papers in over fifty of the leading cities of the United States, and sitv.
the three advertisements of the series reproduced in The Review
afford an excellent idea of the general high character of the copy.
HE figures bearing upon the export trade in musical instru-
Professional advertising men who have seen the various
ments for the twelve months ending June, which appeared
advertisements in this series have been enthusiastic in their
in The Review last week, are of decided interest, inasmuch as
comments regarding their unusual excellence, and the care re-
they show a gratifying growth in appreciation of American
flected in their design and layout.
pianos and players in foreign countries during the past few years.
To date a surprisingly large number of letters have been
During the past twelve months we exported 13,900 pianos, valued
received from newspapers and piano merchants endorsing the
at $2,292,467, as compared with 12.195 pianos, valued at $1,874,-
idea, and in a great many cases promising definitely to partici-
604, for the same period of 1917, and 9,343 pianos, valued at
pate in the campaign. Others unacquainted with the sort of
$1,617,263, sent abroad in 1916.
advertising suggested have requested that copies of the series,
Our export trade in player-pianos is also gratifying, the
together with complete information, be forwarded them for
twelve months' total showing shipments of 3,545 player-pianos,
consideration, and, judging from.general experience, the consid-
valued at $1,095,665, as compared with 2,806, valued at $855,889,
eration will be favorable.
in 1917, and 1,461, valued at $470,340, in 1916.
In some cities visited personally by Mr. Tremaine the deal-
There has also been a steady increase in the exportation of
ers have been strongly in favor of a co-operative advertising
perforated music rolls, the twelve months total ending June
campaign, but have declared that^piano men in their particular
amounting in value to $149,309, as compared with $101,417 for
town could not be brought together for the purpose, citing the
1917, and $59,479 in 1916.
fact that efforts to organize local associations have failed. The
In the exports of miscellaneous musical instruments, popu-
answer is that no association is necessary to support the adver-
larly termed "small goods," there has also been a decided
tising. The dealers simply agree to back uip the campaign and
growth, shipments of this character footing up $1,178,381 for
sign their names to the advertisements, and in return pay a pro- the year ending June, 1918, as against $1,120,580 in 1917, and
rata share of the advertising cost. By joining with one an- $1,021,980 in 1916.
other the piano merchants bring this cost down to a minimum—
The twelve months total of musical instruments of all kinds
a figure so low as to be surprising in many cases—and at the sent abroad during the past year amounted in value to $4,915,-
same time reap direct benefit through the fact that they are
299, as against $4,142,896 for the same period of 1917, and
boosting the cause of music and musical instruments generally,
$3,454,064 in 1916.
and therefore boosting- their own business.
These figures, broadly considered, are certainly encouraging
NEW YORK, SEPTEMBER 21, 1918
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