Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
OCTOBER 23,
1920
THE MUSIC TRADE
REVIEW
AUTOMOBILE COSTS VS. PIANO COSTS
Want More
??? Dollars ???
By MARK P. CAMPBELL, President, Brambach Piano Co., New York City
There has been a good deal of a flurry caused
in the general business life throughout the
United States within the last thirty to sixty
days, beginning with the announcement of a
large automobile concern that prices were going
Mark P. Campbell
back to pre-war levels in its product. Attempt-
ing to put into effect the old saying which de-
veloped regarding specie payment, "The way
to resume is to resume," other automobile
manufacturers followed suit and reduced their
prices from ten to fifteen per cent, while others
maintained that they had no water in their
prices that could be squeezed out.
In fact, one automobile manufacturer, who
did not reduce his price, told me that those who
lowered their prices in a large percentage of
cases reduced them to the same level above
pre-war prices that was in effect by those who
did not reduce their prices.
In other words, some manufacturers advanced
their prices forty per cent and some sixty per
cent; those who advanced them sixty per cent •
have reduced their prices to forty per cent over
1916 prices, putting all automobile values to-day
on a level.
This action in the automobile industry has no
bearing whatever on the piano industry per se.
Now, I do not mean to imply that if the dollar
becomes more valuable than it has been in the
last year or two the prices of pianos will not
come down in ratio to the increase in value of
the dollar, for they will. But I do maintain that
there is no connection between the piano in-
dustry and the automobile industry.
On investigation of the automobile industry,
some startling facts have developed. In the
last five years the production of automobiles
has jumped from 600,000 to nearly 2,000,000
cars. The value has jumped from over 400
millions to about 2 billion dollars. The demand
for some of the supplies for automobiles has
cleaned the market out entirely, and so it is
nearly impossible, for example, to obtain plate
glass, automobile manufacturers having required
such a vast amount for wind-shields.
Five million men are dependent to-day on the
automobile industry for their livelihood. It is
now the third largest industry in the country.
The growth has been mushroom, too vast for
its own good, or the country's good. The auto-
mobile industry's development, of course, is
necessary for progress, but it has far exceeded
the progress of the rest of the world.
Take other'industries that have grown very
rapidly. From 1884 to 1893 there was a tre-
mendous spreading out of railroads in every
direction, to every little town. The country
seemed bent on increasing the railroad network
of our country. 1893 was a very bad year, and
railroad expansion was halted.
From the beginning of the steel industry up
until 1903 unheard-of things were accomplished
in the development of plants, in financial growth,
boom towns, etc. 1903 was not a good year
for business, and the steel industry was cur-
tailed to its proper place in the development of
the country.
Banking through a steady rise began suddenly
to branch out in every direction, chain banks
becoming the order of the day. Tremendous loans
and high financing were being done every-
where until the Knickerbocker Trust failed. 1907
was a bad year for business. At that point
legislation was brought into effect which de-
veloped into the Federal Reserve system some
years later, and kept the banks in their proper
position in the commercial world.
The automobile industry is curtailing its
product very fast. Long staple cotton, which
was monopolized by tire manufacturers, is again
on the market at a very reasonable price. The
cost of glass has been reduced. Many of the
commodities that are coming down in price
have automobile concerns as their chief source
of outlet.
All of these things, as I have said before,
are independent of the piano business and are
separate and apart. Their coming and their
going at this time have no relation whatever to
our industry. Regardless of the coming and
going of other industries, it is my sincere be-
lief that the small grand piano industry is going
to ride the depression in sales as though no
ulterior forces were at work. It is a known fact
that a new industry continues to expand regard-
less of other economic conditions until the
source of supply is able to fill the demand at
its peak. The unfilled orders on the books of
the steel companies are an indication of general
business conditions, because if conditions are
good their orders are large. If business is
quiet their orders decline.
However, with the orders for grand pianos
there is no connection. The demand for grand
pianos at this writing is so far in excess of the
supply that the business will continue to be
big so long as the supply continues inadequate.
A well-known economist, who has achieved a
powerful reputation as a business forecaster,
was questioned concerning the grand pianos
and their probable sale during a depression.
This question was asked in November of 1918,
immediately following the armistice, and this is
the reply:
"The class of prospects which should be the
best for your salesmen during the coming
period" (which he assumed was to be dull and
prices were to fall immediately) "will be those
who are employed at a fixed salary. For the
most part these prospects have suffered during
the recent period of rising prices, but as soon
as prices turn downward their condition will
begin to improve, because they are not so sub-
ject as wage-workers to unemployment."
The salaried worker has been most handi-
capped since the war started, and it has been
with considerable effort that the salaried man's
wages have been increased. In fact, they have
not been increased in proportion to the working-
man's or the skilled mechanic's by any means,
but their present level is considerably more per-
manent, and any stories in circulation concern-
ing the discharging of workers in Akron, De-
troit, Chicago, Kansas City and New York will
mean a very quick adjustment to a new scale of
wages.
Therefore, my advice to salesmen the country
over during the present temporary cessation
of selling is to devote greater attention to the
salaried prospects, for their business will be the
best business in the months to come.
Where there's a will there's
a way, and
!!!Here'stheWay!!!
Call on all the prospects in
your town and tell them how
to increase their trade with
I Seeburg's
| Style "E"
| Electric coin-operated piano.
I Here's a little tip as to who
| these prospects are.
j They are the owners of—
Restaurants
Dancing
Pavilions
Ice Cream
Parlors
Theatres
Lodge Halls
and other places of
entertainment and
they never fail to BUY
THEM ON SIGHT.
Write us for further
particulars
| J. P. S e e b u r g
| Piano Company
1
|
1
Leaders in the Automatic
Field
419 West Erie Street
Chicago, 111.