Music Trade Review

Issue: 1922 Vol. 75 N. 16

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
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VOL. LXXV. No. 16
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Published Every Saturday by Edward Lyman BUI, Inc., at 373 4th Ave., New York.
Oct. 14, 1922
Single Copies 10 Cents
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The Question of Terms Again Arises in the Trade
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OT so many years ago there was much comment made on the fact that manufacturers were offering
pianos to dealers on terms running as high as eighteen months, and the practice was frowned upon
severely as being detrimental to the interests of the industry. Then came the war and post-war period
with a scarcity of instruments and the consequent shortening of terms that led to the belief that the
piano industry had finally found itself in the matter of credits and would maintain wholesale terms of well
under twelve months.
As a matter of fact, the question of terms has loomed up again recently and in a manner to make mem-
bers of the trade ask where the end will be, for it is declared that pianos are being sold today on longer terms
than at any period in the history of the trade, thirty months being allowed in some instances.
While all this is going on we find members of the industry solemnly advising the dealers to maintain
short terms for their own protection, with thirty months as a maximum, keeping their paper within such
limits that they can finance their own businesses to a large extent, and depending upon outside agencies, such
as banks, to as small a degree as possible.
Just how the retailer who is getting thirty months from his manufacturer is going to handle his own
credits would appear to represent only a small problem. He is going to go the manufacturer one better and,
taking advantage of the liberal credit extended him, pass the favor along to the retail buyer.
This tendency towards long terms is regrettable for many reasons, chiefly because it is calculated to
lead the retailer beyond his financial limitations and force him to place as much of his paper as possible with
the banks, and the balance with other agencies who are likely to exact a very generous interest for their cash.
It seems, too, that the piano trade is going -to lose a fair amount of prestige that it won in banking
circles during the past few years when piano paper was on a sufficiently short basis to be regarded as col-
lateral instead of as an investment.
This movement for an extension of terms comes at a rather inopportune moment, for an upward
movement in the matter of prices is to be expected very shortly. Lumber and cabinet woods have already
taken sharp advances. Wool, and consequently felts, as well as steel, are showing an upward trend due to the
new tariff and, in part, to the law of supply and demand. Instances have already been recorded where piano
manufacturers have notified their dealers of price increases and other notifications along that line are due
very shortly. This heavier capital investment serves to make long terms a genuine menace.
There are piano manufacturers in the field today who are selling for cash, or on terms approximating
cash, quoting low prices, and at the same time making money. There are concerns in other fields, and we need
go no further than the talking machine field to find them, which encourage dealers to discount their bills,
borrowing the money from the banks if necessary to do so, rather than grant them extended credit.
One of the fallacies of the piano trade in the past has been to figure its progress by production rather
than profit—to brag about the number of instruments of certain makes that have been sold at wholesale or
retail within a given period without stopping to consider the basis upon which those instruments were sold,
and whether or not fewer sales on a cash or short term basis would not have been productive of greater
results in the profit column at a lesser expenditure of effort.
Thirty months' credit is admitted to be the maximum for the dealer in a trade where long credits are the
accepted custom, and on that basis it is certain that the same credit terms offered by the manufacturer are little
short of dangerous. The real evil lies in the fact that manufacturers, and for that matter dealers, who go
beyond the sound lines of credit are a menace to themselves and to the trade at large as well.
If the industry as a whole can be brought back to the point of thinking of quality, price and turnover
possibilities, instead of simply terms, the benefits that result will pay dividends on the effort expended.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC
TRADE
REVIEW
(Registered in the U. S. Patent Office)
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, 375 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
EDWARD VAN HARLINGEN, V. D. WALSH, E. B. MUNCH, LEE ROBINSON, C. R. TIGHE,
EDWARD LYMAN BILL, SCOTT KINGWILL, THOS. W. BRESNAHAN, A. J. NICKLIN
WESTERN DIVISION:
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Republic BIdg., 209 So. State St., Chicago.
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Telephone, Wabash 5242-5243.
Telephone, Main 6950.
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NEWS SERVICE IS SUPPLIED WEEKLY BY OUR CORRESPONDENTS
LOCATED IN THE LEADING CITIES THROUGHOUT AMERICA.
Published Every Saturday at 373 Fourth Avenue, New York
Entered as second-class matter September 10, 1892, at the post office at New York, N. Y'.,
under the Act of March 3, 1879.
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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.
and
Departments conducted by an expert wherein all ques
alltl
tions of a technical nature relating to the tuning,
qrlniAnk
regulating and repairing of pianos and player-pianos
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p a r i m e n i S a r e dealt with, will be found in another section of
thi9 paper. W« also publish a number of reliable technical works, information concerning
which will be cheerfully given upon request.
Exposition Honors Won by The Review
Grand Prix
Paris Exposition, 1900 Silver Medal
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Diploma
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Cable Addrese: "Elblll, New York"
Vol. LXXV
NEW YORK, OCTOBER 14, 1922
No. 16
RURAL TRADE AN INCREASING FACTOR
the steady improvement in the industrial situation in
I N the spite larger of centers,
and the cutting down of the ranks of the un-
employed, the fact is quite evident that the agricultural element is
going to play a highly important part in the absorption of manu-
factured products during the coming months, for although in some
sections crops have not turned out quite so well as expected and the
prices realized have been rather disappointing, farmers as a rule
have very substantial quantities of cash and appear to be in a mood
to spend it when properly approached.
There are, of course, numerous retail music houses who are
so located that they must depend almost entirely upon city trade,
but for those who can in a measure choose their customers from
either urban or rural cities there has developed a strong tendency to
cater to the country man with his cash rather than to the city man
with a doubtful job and a greater credit risk.
FIXED SCHEDULES FOR USED PIANOS
NCE again has come up the question of compiling a schedule
of values for used pianos according to make and age for the
use of piano retailers throughout the country, the proposal this time
coming from the Music Industries Chamber of Commerce, as the
result of a letter sent to that body by C. Alfred Wagner, of the
American Piano Co.
This question of establishing a fixed schedule of the values for
used pianos is not in any sense a new one, but has come up at
intervals for a number of years past and more or less serious and
successful attempts to draft and establish such a schedule have been
made by national and local trade bodies. It remained for the New York
Piano Merchants' Association a few years ago to prepare a schedule
of used piano values that for a time proved most valuable to local
piano merchants and was in fact adopted by associations and in-
dividuals in various parts of the country.
The difficulty of presenting a fixed schedule is that adherence
O
REVIEW
OCTOBER 14,
1922
to it is strictly voluntary on the part of the individual merchant
and there have been authentic cases where such a schedule, pre-
pared for the protection of the retailer in making his allowances,
was used by competitors for the purpose of impressing the cus-
tomer with their generosity in making excessive allowances duly
covered by increased prices. That a schedule of allowances is
possible has been proven in the case of the New York association, as
well as in the cases of various concerns that have established their
own standards. It is, therefore, possible to draft a schedule of
allowances on used pianos that prove of genuine benefit to the
dealer who wants to be fair both to himself and to his customer.
The fact that such a schedule may be misused in isolated cases
should not prove a serious obstacle.
THE VALUE OF WINDOW DISPLAYS
the discussion of window displays it might be well to para-
I N phrase
the slogan of one of the large automobile companies and
declare, "Ask the man who uses them," for music merchants who
have given proper attention to this important form of publicity are
as, a unit in testifying to its effectiveness not only in developing
actual sales, but in building for the merchant a reputation for pro-
gressiveness among the other retailers of the town.
At one time the excuse was given that pianos did not lend
themselves readily to display purposes, despite the fact that certain
merchants through their ingenuity proved this excuse to be more or
less of a fallacy. To-day the average music store'handles a variety
of lines, including talking machines, records, band instruments,
musical merchandise and sheet music, which lend themselves readily
to interesting window arrangements.
It is not always the elaborate window that has the appeal, but
rather the ingenious one. We have seen, for instance, a half dozen
windows featuring the musical number, "Hot Lips," with a negro
blowing a saxophone or. trombone, and yet only one dealer had the
ingenuity to have the lips transparent and place a red light behind
them to make them really look hot.
There have been many attempts made to impress the customer
with the convenient size of the small grand piano and the fact that
it occupied no more room than an upright when placed in a corner.
Charts and measurements have been used galore, and yet it remained
for a Western dealer to spend the few dollars necessary to build
a papier mache model of an upright and fit it around the grand in
the corner to visualize for the public the statement so often made.
NATIONAL DANCE WEEK
suggestion of Mark P. Campbell, made before the conven-
T HE
tion of the American Association of Dancing Masters, held in
New York recently, that there be held a "National Dance Week"
along the lines-of the very successful Music Weeks celebrated during
the past few years, is interesting to those who have the cause of
music at heart for the reason that dancing without music is prac-
tically impossible and a Dance Week means a real week of music,
even though it be confined to dance music alone.
Dance music is not necessarily jazz—in fact, much of it is
distinctly of the better sort—and the music for folk dancing par-
ticularly can, for the most part, be accepted as national music in
the fullest sense, the dance in many European countries providing
the only means for expressing the national spirit. As "Dance Week"
will mean more music, let's have it.
A CENSUS OF QUESTIONABLE VALUE
by the Government that a monthly census be
T HE made suggestion
of the output of pianos and talking machines' is interest-
ing as indicating the development of Federal service in the matter
of providing information for the use of business men, but the prac-
tical value of such a census is to be questioned. There are a num-
ber of factors besides the census alone that tend to indicate the
trend of the music industry and these factors are quite well under-
stood by the members of the trade, so that the compilation of figures
for Government use simply means more work without adequate
recompense.
An annual or biennial census is unquestionably of value for the
purpose of calculating the progress made by the industry over a
given period, and gives to the trade some basis on which to plan
future development, but a monthly census would simply represent
a mass of figures without any real import.

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