Music Trade Review

Issue: 1922 Vol. 74 N. 13

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
REVIEW
JIUJIC TIRADE
VOL. LXXIV. No. 13
Published Every Saturday by Edward Lyman Bill, Inc., at^373 4th Ave., New York.
April 1, 1922
****** Copies io cent.
$2.00 Per Year
Terms and What They Indicate
T
HERE are, apparently, a great number of piano merchants who, for one reason or another, believe
that the easiest way to sell their instruments is to offer them on a basis of low terms and make the
buyer the dictator of the method by which the instrument is to be paid for. There has been consider-
able talk in the trade of the scarcity of misleading and questionable advertising, advertising of the type
which attracts the attention of legal authorities, but it would seem about time that there should be some atten-
tion paid to the advertising that is calculated to give to the piano trade the reputation of being more or less of a
low and long-term proposition.
It is a rare experience, indeed, to pick up one of the daily newspapers of large circulation without finding
therein several advertisements of piano houses, not only offering pianos and players at low prices, but offering
them on terms that are little short of ridiculous—"Nothing down—three years to pay," "$io down—the rest
in small instalments," and so on, all sensationally presented.
On another page of The Review, this week, there is shown a collection of clippings from a score of adver-
tisements that appeared in the daily papers in various parts of the country within the last couple of months.
Lined up together, these low r terms make a showing that should be calculated to cause careful thought on
the part of those who have the future of the industry at heart.
When low terms are advertised the prospective purchaser sees an instrument listed at several hundred
dollars offered to him without any down payment whatever, or for a down payment that represents only two
or three per cent of the total price of the instrument. The figures are plain and are emphasized.
Regardless of what terms the retailer may demand in the matter of monthly instalments, the fact that he
advertises to put a valuable instrument in a customer's home without any payment, or at a ridiculously low pay-
ment, is likely to create an impression regarding piano selling methods that is going to do the trade no good.
The disciple of low terms will argue that having once placed the instrument in the customer's home, after
the soundness of credit has apparently been established, he is given an unusual opportunity through the exer-
cise of salesmanship to keep it there. He will also argue that in many cases the low terms advertised are simply
bait to get the customer in the store, where a much more satisfactory deal can be arranged.
But in the face of all this the impression the public gets is that pianos and players can be had without
the expenditure of any really significant amount of money and that the final payments need not be made until
several years after the contract is closed.
It means that the retailer with a piano or player of reputation, honestly priced, who demands terms in
keeping with the value of the product he offers, is regarded with suspicion by prospective purchasers who are
not given to looking behind the veil in the matter of piano terms.
Small down payments and low terms mean repossessions, and repossessions hurt business. They mean
double selling, collection and legal expenses and trouble generally, and have a marked influence on keeping down
production of new instruments. The logical course has always been to arrange terms that will give the pur-
chaser a heavy equity in the instrument in a comparatively short time, for the individual who, within a few
months, has an investment of several hundred dollars in a player-piano is not going to allow that piano to be
repossessed without making an effort to meet his obligations. On the contrary, the man who has had the use
of a valuable instrument for a year or so, and has paid for it an amount much less than the rental price, is not
worrying so much about the repossession bugaboo. He has little to lose.
The question of low terms is not simply one of questionable competition—it is one of disturbing the
soundness of the trade and endangering its future, so far as selling methods go. It took the conditions brought
about by the world war to put the piano business on a basis whereby the dealer could demand terms in
keeping with the product he was offering. It is regrettable that this basis has not been maintained.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC
TRADE
REVIEW
PUBLISHED BY EDWARD LYMAN BILL, Inc.
President and Treasurer. C. L. Bill, 373 Fourth Ave., New York; Vice-President,
T. B. Spillane, 373 Fourth Ave.. New York; Second Vice-President, Raymond Bill, 373
Fourth Ave., New York; Secretary, Edward Lyman Bill, 373 Fourth Ave., New York;
Assistant Treasurer, Wm. A. Low.
J. B. SPILLANE, Editor
RAY BILL, B. B. WILSON, BRAID WHITE, Associate Editors
WILSON D. BUSH, Managing Editor
CARLETON CHACE, Business Manager
. .
L. E. BOWERS, Circulation Manager
Executive and Reportorial Staff
EDWAKD VAM HAKLINGEN, V. D. WALSH, E. B. MUNCH, LEE ROBINSON, C. R. TIGHE,
EDWAXD LYMAN BILL, SCOTT KINGWILL, THOS. W. BRESNAHAN, A. J. NICKLIN
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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
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Vol. LXX1V
NEW YORK, APRIL 1, 1922
No. 13
INTENSIVE WORK BRINGS RESULTS
T
H E R E are a number of piano manufacturers who have realized
that the question of distributing their product is not entirely one
of getting a few dealers to take large numbers of pianos each year,
but that great possibilities lie in the line-up of numerous small dealers
who, taking only comparatively few pianos each year, build up a most
substantial total through their aggregate purchases. The situation
resolves itself into a question of either placing all the eggs in one
basket or dividing them into several baskets. When a dozen large
retailers, taking an average of a hundred pianos a year, cut orders
50 per cent it means a sudden drop of 600 instruments. On the
other hand, if there are sixty dealers, averaging twenty pianos a year
each, the likelihood of all of them making a 50 per cent cut is remote,
for there is business still to be done in many sections of this broad
country.
A wholesale representative from the West, who visited New York
recently, had figures to prove that he was disposing at wholesale of
about 200 pianos per month, averaging fifty instruments monthly,
from each of five manufacturers. This piano man covers a large ter-
ritory and each month gets in touch with close to three-score dealers,
some of them large but the majority small. With a well-balanced
line at his command, however, he keeps up his quota without any-
great difficulty.
Manufacturers have taken occasion in the past few months to
advise dealers who put forth intensive effort to go over their terri-
tory with a fine-tooth comb. It might be well for some manufac-
turers to follow the same advice. More than one producer of pianos
in the past has discovered there is a lot of business to be had in small
towns that are not included in the regular itinerary of Pullman
jumps.
IMPROVING PATENT OFFICE CONDITIONS
T
H E signing by the President of the bill providing for increased
salaries for patent office employes, together with slight increases
in patent fees, is of general interest to business men, for it marks the
REVIEW
APRIL 1, 1922
first step toward bringing the patent office out of the muddle in which
it has been for some time past and enabling the office staff to catch
up with its work. It is unfortunate that a government department of
such vital importance to the business interests of the country should
have been neglected so long, and it is to be hoped, with the new law
as a precedent, steps will be taken to put the patent office on a modern,
efficient basis and keep it there.
There is no question but that millions of dollars have been lost
to inventors and industrial concerns through delays in patent office
searches and in the handling of patent applications, due, not to the
carelessness of the patent office workers, but to the inability of the
officials to recruit and maintain a sufficient staff to carry on the work
under the existing salary scale. Even under the new law, the salaries
paid patent office experts will be far below those that could be de-
manded in the general business field for work of the same sort and
requiring an equal amount of intelligence and training. The slight
increase in fees will be more than offset by the saving accruing to
inventors and business men generally as a result of the greater speed
and efficiency in obtaining patent rights.
THE MEMBERSHIP DRIVE
T
H E results of the drive for new members just inaugurated by the
National Association of Music Merchants will be watched with
considerable interest, for the drive has started under the most favor-
able conditions, following so soon after the transcontinental trip of
President DeForeest.
The progress of the National Association in the matter of mem-
bership has been steady, even though slow, but the effort that is being
put behind the present drive, coupled with the stimulating effect of
the prizes offered to the various individuals and organizations for
bringing in the greatest number of new members, should serve to
accomplish much in extending the rolls of that organization within
the next few weeks.
There has been considerable discussion during the present year
as to the evident lack of interest in association work on the part of
the lay members of various industries being a reflection of the busi-
ness conditions, retailers being too much engrossed with their own
affairs to have a proper regard for the affairs of the industry of
which they are members. As a matter of fact, with conditions as
they are, this is the most opportune time to take increased interest
in the association movement, from the fact that the present program
calls for the sort of constructive service from association headquarters
that will aid retailers materially in meeting and solving existing sales
problems.
The day is past for the association to exist simply for the pur-
pose of giving trade members an excuse to get together once a year
for a general jollification. Association members demand something
more than just a good time for the effort and money they invest in
organization work, something more than the reading of dry papers
and making of set speeches at the annual session. In the music in-
dustry this fact has been realized and efforts are being made to
develop the Merchants' Association, and for that matter all trade
associations, into a value-giving proposition from the standpoint of
the individual member.
AUCTION SALES OF PIANOS
DEALER in Baltimore who desired to get rid of surplus stock
quickly on the plea of moving to new quarters solved the prob-
lem by bringing an auctioneer and disposing of most of the instru-
ments on his floors to the highest bidders. This is one of the first
instances which have come to the attention of the trade where such
a policy has been adopted, and the probable developments may be
interesting. From the standpoint of the competitor, it is a question
whether the disposal of a stock of instruments suddenly and at auc-
tion is not less harmful to regular trade than the practice of carrying
on an extended "closing out" sale with sensational advertising, bar-
gain prices and low terms. When pianos are sold at auction the
bidder buys, not according to his idea of what the instrument is worth,
but according to his ability to get it at a low bid. When sales are
advertised, the prices quoted are too often accepted by a goodly por-
tion of prospective customers as representative of all piano prices.
The practice of closing out stocks at auction may not become general
in the trade, but it has a number of interesting phases which may
well be considered.
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