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46
THE
MUSIC TRADE
REVIEW
WHAT'S THE MATTER WITH OUR BUSINESS?
By E. C. MILLS, Chairman, Board of Directors, Music Publishers' Protective Association
During the past year there has been so very
much comment anent the unfavorable showing
the year has made in comparison with previous
ones that it is time for the industry to "take
stock" and see what, if anything really, is the"
matter with it.
On the commercial side of the sheet music
business there are four principal factors: The
publisher who produces the music and under-
takes to create a demand for it; the jobber in
sheet music who handles the myriad of orders
from the smaller retail dealers; the retail dealer,
and last, but by no means least, the public
which buys it.
It is ihe publisher's obligation to secure from
writers the most meritorious compositions
available; to make sure of their marketability;
to print them in attractive and salable form,
and to merchandise the product in a sane, con-
structive, well-balanced manner. It is his fur-
ther obligation to procure the public exploitation
of the publication through singing by profes-
sional singers, playing by orchestras, "plug-
ging," etc. It is his duty to market the product
at a fair price—a price that represents a just
profit, and that will enable the jobber and dealer
to also handle it with an equitable return in the
way of fair profit. Here at the source of the
product there must be commercial soundness of
practice; there must be wisdom of expenditure,
saneness of policy, else the source of the product
becomes uncertain, unreliable, faltering.
It is the jobber's obligation to stock a com-
piete assortment of the product of all publishers,
and in the price he charges the dealer to take
note of his "readiness to serve" by complete
stocks, and to charge for the service he renders
a price for the merchandise he supplies that will
net a clear and fair profit. It is his obligation to
ship promptly all of the music contained in
orders received—to so maintain his stocks as to
make it unnecessary that he shall be constantly
''shorting" items of the dealer's orders.
]t is the dealer's obligation in turn to keep his
stocks fairly complete; to aggressively and intel-
ligently merchandise the music; to sell it at a
price that represents a fair return but not a
profiteer's recompense; to see that the public
knows he has sheet music, that he always has
the hits, but to also give the publisher co-opera-
tion to the extent of actually moving not only
the "hits," but as well the counter sellers. The
dealer should not abuse the credit privilege—
which means that bills must be paid promptly—
for it is of the essence of the stability of the
entire industry that the dealer pay the jobber
and the jobber the publisher, at maturity of
accounts, otherwise the entire structure becomes
shaky, for, though music may be a more or less
professional pursuit, in its commercial aspects
it differs in no essential from hardware, coal or
any other merchandise.
Now one by one let us examine into the actual
condition th.it exists in the four main divisions
of the business.
First, the publisher—in what has he fallen
short of his obligation" It should be remem-
bered that the condition of today is the out-
growth of the practices of the past several years,
E. C. Mills
.
and not a condition of the moment. The lack
of co-operation received from dealers (by
"dealer" is meant the legitimate music stores
handling as a rule pianos, instruments, acces-
sories, etc.) and the singularly indifferent atti-
tude assumed by them toward the merchandising
of sheet music seem to have opened the eyes of
the syndicate or chain stores to the possibilities
of profitably handling this line with a modern
system of exploitation and commercialization.
So the chain store entered the music business
— entered it aggressively—and in many cases
literally took it away from the legitimate store.
We all know the system which the syndicate
store used—window displays, singing and play-
ing 1 operators—the system of demonstrating the
product. And be it known that they made their
music departments enormously profitable, simply
by intelligent and aggressive merchandising.
Then came the ''song shop," the novelty
store, a very small shop in the heart of business
locations, specializing in hits—turning stocks
fast, and sparing no effort to get business. It is
beside the question at the moment that 80 per
cent of these shops fail—while they live they
take away business that logically belongs to the
"legitimate" music store and would go there if
that store were alive in its sheet music depart-
ment.
The publisher, with his market through the
JANUARY 1, 1921
legitimate dealer being diverted to the chain
store and "song shop," was naturally forced to
pioduce more or less with an idea to meeting
the conditions imposed by this changed market;
and in weakness there came the system of selling
music subject to the return of unsold copies.
i. his amounts substantially to shipping music on
consignment, and the losses through this sys-
tem were so great that the publisher was finally
compelled to regulate conditions under which
•returns" would be accepted.
Such intensely competitive conditions were
thus brought about as compelled the publisher
to establish branch offices all over the country,
to enlarge professional staffs, to take on a bur-
den of increased overhead expense that was
staggering, but he did it. So, also, did he loosen
ciedit restrictions, and terms of payment, until
ii:e condition in the trade became such that
publishing evolved into an extremely precarious
business.
i lie publisher, accused often by the dealer of
i'aving built up the "song shop" and chain store
competition, wliiie in fact he did so, was forced
io uo it by tin- indifferent and antiquated system
oi merchandising in vogue by the accusing
cleaicr.
Second, in what has the jobber fallen short of
his obligation to the industry? First and pri-
ihariiy, Uie jobber is apparently unwilling to
take a lair prolit for his service—that is, he
Hiortsigritediy sells too close to his cost. It
should be remembered that the convenience of
ordering through a jobber, who theoretically is
completely stocked with all music, is worth its
ro.-l; for were there no jobber, the dealer would
be compelled to do business with many different
concerns, instead of with a half dozen at the
outside. The cost and convenience of ordering,
bookkeeping, establishing credits, and of doing
business with perhaps sixty firms instead of six,
should be borne in mind by the dealer and the
jobber, in their business relationship, and if the
jobber stocks for this trade he is entitled to a
fair return for his risk.
The jobber not only sells too close to his
cost, but he extends unwise credits (as does the
publisher), and in the end lie is forced, by unfair
and unwise competition to himself, to enter some
other branch of industry, as publishing, manu-
facturing of records, rolls, etc., in an effort to
make his plant eke out a satisfactory return—
and this leads to disaster.
Be it known now, and the premise is eco-
nomically sound, that no matter whether it bo
the publisher, jobber, dealer or public that is
unsound financially, the entire industry suffers.
The jobber, in his light for business, himself
endeavors to consign music to dealers; that is,
sell it subject to return if not sold. This is a
shortsighted, commercially unsound, suicidal
policy; as is also the one of granting credits to
any and all who ask for them, regardless of
responsibility. In this last respect the publisher
is as guilty as the jobber, if not more so.
The jobber cannot, in the very nature of
things, purchase a product at 18 cents and sell