Music Trade Review

Issue: 1920 Vol. 71 N. 19

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
VOL. LXXl. No. 19
T
REVIEW
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York. Nov. 6, 1920
8ln
10 CentB
« $2.00
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H E reaction in the matter of prices which started in the automobile trade, and which swept across the
entire country, has naturally affected the music industry both directly and indirectly to a certain degree.
In fact, any such general movement is bound to affect all lines of business, though the effect may be of
much shorter duration in some lines than in others.
When the dealers reported that the public was refraining from buying in anticipation of price reductions
on pianos and players, the manufacturers were quick to announce that no such reductions could be made just
now and gave reasons that were logical, honest and that could be proven. The big problem is not that of con-
vincing the dealer of the fact that present piano prices are more than justified by existing production costs, for
most of the retailers who are in close touch with manufacturing conditions realize the situation. It is the public
that is causing the trouble, and all the conferences of manufacturers among themselves or with dealers, which
only result in emphasizing the fact that piano prices on an average must stay fixed, are not accomplishing any-
thing unless that message is carried directly to the public.
When Ford started cutting automobile prices there were of course some other manufacturers who
followed suit. Those who had been conservative in increasing prices, however, and felt that they were selling
as closely as production costs warranted, did not simply sit tight and say nothing beyond advising the dealers
of the situation. They went directly to the public and laid their cards on the table. The statements of these
manufacturers as to why their prices must stay fixed, or be increased, offset the price cutting on other makes
to a considerable extent, and served to win public confidence by putting the automobile manufacturers on
record. The result was evident in increased business.
National advertising campaigns never get very far in the piano trade for some reason or other, but if
there was ever a time in which a campaign was justified this is the time. The public as a whole knows very
little about piano manufacturing conditions. It simply knows that prices of many commodities are coming
down and naturally assumes that pianos should also be listed among such commodities. The public is not
trained in mind reading, and if it is to understand the reason for the maintenance of piano prices, and that
present prices will hold for several months at least, the fact must be brought to its attention through some
definite form of publicity. Were the manufacturers to carry on a campaign through national magazines setting
forth their position it would be a slow, tedious process, even though a sufficient fund could be raised for the
purpose.
The avenue of local publicity, however, is wide open, and it would seem a matter of simple wisdom for
manufacturers to co-operate with their dealers in various sections in presenting facts and figures to the public
through the medium of daily newspaper advertisements. It is certain that the expense of such a campaign
on any one manufacturer would be considerably less than the expense of sacrificing profits in part, or entirely,
through unjustified price shaving. Manufacturers should make an effort to support their local dealers in
putting the situation clearly before prospective piano buyers. These buyers are the ones who are holding up
things while waiting for lower prices. The retailer is simply the medium between the manufacturer and the
public, and for him to understand and appreciate the manufacturer's position amounts to nothing unless the
public can be brought to a realization of the same facts and resumes buying at a normal rate.
The thing to do is to acquaint the buying public through advertisements, or by other means, with the
reasons why piano prices must be maintained, and why they are ultimately fair. The point must be empha-
sized that there has been no profiteering or inflation in the industry, that the high cost of supplies and labor is
remaining and promises to remain at a high level, and that those who need pianos and defer buying in anticipa-
tion of material reductions are simply chasing rainbows. In other words, their wait will be a long and a com-
paratively fruitless one.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
RE™
PUBLISHED BY EDWARD LYMAN BILL, Inc.
President and Treasurer, C. L. Bill, 373 Fourth Ave., New York; Vice-President,
J. B. Spillane, 373 Fourth Aye., New York; Second Vice-President, Raymond Bill, 373
Fourth Ave., New York; Assistant Treasurer, Wm. A. Low.
J. B. SPILLANE, Editor
RAYMOND BILL, B. B. WILSON, W. B. WHITE, Associate Editors
WILSON D. BUSH, Managing Editor
CARLETON CHACE, Business Manager
L. E. BOWERS, Circulation Manager
Executive and Reportorial Stall
V. D. WALSH, E. B. MUNCH, L. M. ROBINSON, C. A. LEONARD, EDWARD LYMAN
SCOTT KINGWILL, THOS. W. BRESNAHAN, A. J. NICKLIN.
BILL,
WESTERN
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Published Every Saturday at 373 Fourth Avenue, New York
Departments conducted by an expert wherein all ques-
tions of a technical nature relating to the tuning,
regulating and repairing of pianos and player-pianos
are dealt with, will be found in another section of
this paper. We also publish a number of reliable technical works, information concerning
which will be cheerfully given upon request.
Player-Piano and
Technical Departments
Exposition Honors Won by The Review
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NEW YORK, NOVEMBER 6, 1920
Vol. LXXI
FACTS
CONCERNING
PIANO
No. 19
COSTS
SURVEY of piano manufacturing costs recently compiled by
the Music Industries Chamber of Commerce and published in
The Review last week is interesting not alone for the fact that it sets
forth most convincingly the heavy increase in such costs during the
past six years but because it divides and classifies the various
processes of piano making and their relative costs in a way that is
both interesting and constructive.
There are some manufacturers in the trade who are giving the
question of costs considerable thought and have developed their cost
system to a fine point. There are other manufacturers, however,
who have not followed out this course, and the tables as compiled by
the Chamber of Commerce might well be adopted by such manu-
facturers as a guide to their own figuring in the future.
An accurate understanding of costs is one of the fundamentals
of a successful manufacturing business of any sort, and it is the
only basis upon which wholesale and retail prices can be fixed with
the assurance that they not only cover all costs, but provide the
necessary margin of profit. Instances are not lacking in the piano
trade where manufacturers have found themselves on thin ice be-
cause they did not know their production costs, and were actually
selling instruments at a loss.
A
AN OPTIMISTIC OUTLOOK
HE Review is in receipt this week of much more encouraging
reports from manufacturers and dealers regarding business
prospects than for some time past. Piano merchants are waking
up to the importance of providing themselves with stock for their
holiday needs, and this is a wise provision, for pianos cannot be
turned out like castings in a day. Dealers possessed of sufficient
vision must realize that they cannot expect to be supplied with the
instruments they need unless they order them at an early date.
The leading commercial authorities are also in a much more
optimistic mood regarding the general trade outlook, and in an
address made before the Chamber of Commerce of Cleveland re-
cently, Governor W. P. G. Harding, of the Federal Reserve Board,
T
NOVEMBER 6, 1920
remarked in discussing the business situation: "The Federal Re-
serve System is still confronted with conditions more or less ab-
normal, but we have passed through the period of exhilaration or
intoxication which characterized American business activities sev-
eral months ago, and the transition to a more normal basis is pro-
ceeding quietly and without alarming features.
"Credit, which is required for seasonal needs, is being granted,
and business generally is looking forward to Winter business of
at least average activity. Sentiment is being helped by the bountiful
harvests, by the better outlook for the articles and by the knowl-
edge that many highly essential developments which have been long
deferred by force of circumstances, such as enlargement of our
transportation facilities and additions to housing accommodations
throughout the country, must soon be undertaken. A broad de-
mand, which will probably extend over a period of years, is opening
up for the products of our basic industries, and if in the readjust-
ments ahead of us any lines of business should prove to be overdone
there is every assurance that any surplus of brains and energy now
engaged in such lines can be readily utilized in other fields of activity.
"We have problems confronting us and we shall always have
them; but, as always in the past, we can cope with them success-
fully if we approach them with a spirit of confidence and self-
reliance tempered with common sense."
Entered as second-class matter September 10, 1892, at the post office at New York, N. Y-,
under the Act of March 3, 1879.
SUBSCRIPTION (including postage), United States and Mexico, $2.00 per year;
Canada, $3.50; all other countries, $5.00.
ADVERTISEMENTS, $6.00 per inch, single column^ per insertion.
On quarterly or
yearly contracts a special discount is allowed. Advertising pages, $150.
REMITTANCES, in other than currency forms, should be made payable to Edward
Lyman Bill, Inc.
REVIEW
THE TAX QUESTION AND THE TRADE
T
HAT the music industry must of necessity be on its guard against
attempts to put through tax legislation that will serve to increase
the burdens of the industry was well illustrated at the recent sessions
of the Tax Committee of the National Industrial Conference Board
where the recommendation was made seriously that excise taxes on
certain musical instruments be increased from 5 to 10 per cent.
This recommendation naturally came as a shock to those members
of the trade who have not been in close touch with the situation and
have believed, fordly, that they need only wait until the next session
of Congress to have the excise taxes removed entirely.
The advocates of a general sales tax on commodities arc natu-
rally opposed to any excise tax on specified industries, but it is up to
the members of the industries that have been discriminated against
to offer organized resistance to any plan to shift on to their shoulders
the burdens that should be widely distributed. Undoubtedly the
Music Industries Chamber of Commerce was in touch with the
situation, and General Manager Smith went before the Tax Com-
mittee of the National Industrial Conference Board and entered a
strong protest. It is not to be assumed, however, that the matter
will be dropped and that other attempts to saddle additional tax
burdens on industries alleged to produce luxuries, or semi-luxuries,
will not be attempted.
This industry has fought too hard for a recognition of its status
in industrial and educational circles in America to remain dormant
when these fresh attempts are made in peace times to increase war-
time tax burdens. The sooner a campaign is started to have all
excise taxes removed from the industry the better, for it would
appear that an offensive, rather than a defensive, campaign is calcu-
lated to get the best results.
THE INCREASING EFFICIENCY OF LABOR
OME interesting reports regarding the increasing efficiency of
labor are now in evidence which would indicate that the workers
are commencing to realize that co-operation with their employers
rather than antagonism is the most satisfactory plan in the end. For
the past couple of years the vicious idea prevailed among a certain
type in labor circles that the less a man accomplished for his em-
ployer the more employment he was giving his fellow workmen.
This brought about a state of mind where fewer hours, more holi-
days and higher wages seemed to be the principal ambition of a
great many employes.
The change now in evidence may be attributed largely to the
increased number of men looking for work, and to the weeding out
being made by employers which is resulting not only in an improved
morale among the workers, but in increased productive power. In
the piano industry, at least, labor is one of the biggest items in the
increased cost of production and if prices ever come down it must be
by reason of the increased efforts of the worker to deliver a greater
value through a larger production than has been to his credit for
the past couple of years-
S

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