Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
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VOL. LXXI. No. 1
RLVILW
Published Every Saturday bylEdward Lyman Bill, Inc., at 373 4th Ave., New York. July 3, 1920
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HERE is a wide difference between conservatism and pessimism—between going 1 ahead slowly in
business, keeping a close watch on conditions, and slowing up on business entirely through blind fear of
some possible trouble. That there are both conservatives and pessimists in the retail piano business is
evidenced by recent occurrences. For the existence of the former there is to be found some excuse, but
there is none for the existence of the latter.
It could not be expected that a seller's market would exist forever. Retailers have been crying for more
goods—for production. With the coming of production there has been some slackening off in demand, with
the result that many warerooms have become pretty well stocked. This all happened'in the Spring of the year
when sales records, even in normal times, have not been notably high. The result has been that, seeing stock
coming in faster than it was going out, a number of retailers have cut out the placing of orders, and in some
cases a few have actually cancelled orders already placed. The retailer has a right, of course, to guard his
own interests and see to it that he is not overstocked, but he likewise owes it to his business to see that he will
have sufficient stock to meet such demands as are created indirectly or through his own efforts. He also
owes it to himself to buy as closely as possible as a protection to himself against the possible coming of a falling
market.
At the present time there is no indication that there will be any falling market, so far as price is con-
cerned, in the piano manufacturing trade. - Not only are the prices of supplies advancing rather than receding,
but even at the higher prices there are certain supplies that are most difficult to get. The labor factor is going
to remain fixed for a considerable time in the future and, if it changes at all, may be calculated to advance.
The piano not being a seasonable product, there is no reason for piano manufacturers unloading stock at a loss
rather than to carry it over for another season. Pianos that are not sold in the Spring can be sold in the Fall,
or Winter, just as well. Whether influenced by the position of the manufacturer or the dealer, the conclusion
must be the same. There are fixed conditions that cannot be ignored in any consideration given the present or
future situation.
Wholesale and retail prices must be influenced by production costs, and to ignore such costs means to
endanger the business itself regardless of what immediate temporary benefit may be realized. The shaving of
profits through price cutting, or the granting of long credits is not going to provide the answer. > The only
solution during the Summer months and until all business resumes its wonted activity in the Fall is salesman-
ship—going after the buyer instead of waiting for the buyer to come to the store. The dealers who have tried it,
especially those who have worked the country districts, are getting results.
The dealer who has on hand a liberal stock of pianos and more on order may be considered in rather a
fortunate position. If the present movement means anything piano prices are going to be somewhat higher
before the Fall season comes around. The transportation tangle has not been unravelled by any means, and
the labor question is not in any sense settled. A combination of any of these conditions will have a direct
influence on piano supplies in the Fall. The man who orders now and has his pianos on hand in September
may perchance have had his trouble for nothing, but he at least has his pianos if the situation does happen to
change. The dealer who has a stock on hand will find himself protected both in price and delivery. To'stop
now and wait to see what happens is to take a bigger chance than to go ahead carefully and confidently.
The dealer who keeps his head and goes right on buying as his present and future requirements demand
is helping the industry pass through a period of laxity. Moreover, he is helping stabilize conditions by permit-
ting the manufacturer to keep his plant working and absorb, rather than pile up, the overhead, which in turn
will tend in a measure at least to retard further increase in prices,
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