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ASTOR, LENOX AND
LILDEN FOUNDATIONS
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1019
VOL. LXVIII. No. 1
MEW
Published Every;Saturday by Edward Lyman Bill, Inc., at 373 4tb Ave., New York. Jan. 4, 1919
Single Copies 10 Cents
$2.00 Per Tear
Maintained
A LTHOUGH piano manufacturers are far from being out of the woods in the matter of obtaining supplies,
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as well as in developing the output of their plants to full capacity, and though they will have to pay
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top notch prices for a considerable time to come for everything that goes into their instruments, we
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^ find certain piano merchants in various sections already engaged in price cutting tactics, using
sensational advertising calculated to move stock without giving any consideration to whether that stock move-
ment is going to bring the proper measure of profit or not.
Hardly a day passes that some paper throughout the country does not carry a big announcement of pianos
and players offered at ridiculous prices on the plea that the war is over and the benevolent dealer is going to
give his customers the benefit of pre-war prices.
One thing is clear—the cost of pianos and players will remain at the present figures for a long period to
come. The labor and metal situation necessitates higher prices for supplies, as well as for the completed piano,
and when the cost of freight, traveling, and the hundred and one other costs of factory operation to-day are
added, it is unwise for either manufacturer or retailer to look for any immediate material change in the price
situation.
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Dealers in particular should study the situation carefully, and not lead the public to believe that present-day
prices are excessive, or that there will be an immediate lowering in the cost of pianos or players, as soon as
peace is officially ratified. Unfortunately a number nf dealers incline toward the habit of wording their
advertising so as to lead the public to believe that the present high prices are but temporary, and that at a very
early moment pianos will come down to pre-war prices. This viewpoint is most harmful and is of distinct
danger. It undermines public confidence, and, moreover, is based upon inaccurate analysis. Labor and
materials are going to be costly for quite a time to come, and as long as this condition prevails high prices for
musical instruments of all kinds must be expected.
In no industry have manufactured products been sold so cheaply and on such unbusiness-like terms in the
past as in the piano industry. The small, if any, cash payments, and the small monthly terms which existed in
pre-war times made the selling of pianos somewhat of a joke rather than a serious commercial enterprise. We
have been able to get away from these unbusiness-like practices during the war, and dealers to-day are selling
instruments on better terms—terms that should be maiitainednot only for the present, but forever. This works
to the advantage of the retail members of the trade, and also helps the manufacturers with whom they are doing
business. Selling on a nearer cash basis, the merchants are able to meet their obligations to manufacturers
more satisfactorily, and the entire industry is put on a plane that works advantageously for all concerned.
The manufacturer or dealer who believes that he is going to increase business by cutting prices, and
advertising his lack of business foresight in this respect, should weigh well the consequences. It is a disastrous
step, and one that should be well considered before being put into practice. It is somewhat of a celticism to
say that there is no profit in doing business at a loss, but apparently this is the way some men figure it out when
they flatter themselves with the belief that a large volume of business means money.
During the past year we have made tremendous strides toward putting the music industry on a sounder
basis financially than ever before. Business men have come closer together. There have been interchanges
of confidence, and consequently there exists a better comprehension of what constitutes correct business. This
forward step must be maintained. We must either march onward or we fall to the rear. There is no standing
still in business life to-day. The merchant who does business without considering the actual cost of operation is
a danger to the community. If, in view of the present cost of producing pianos and of doing business, a
merchant starts out to cut prices, he is bound to undermine the confidence which the community has in him, as
well as endanger his credit relations with those with whom he is doing business.