Music Trade Review

Issue: 1923 Vol. 76 N. 1

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
8
THE MUSIC TRADE REVIEW
MILWAUKEE BUSINESS FOR 1922 EXCEEDED THAT OF 1921
Following Unusually Active Holiday Demand Stocks of Musical Instruments Are Low, Partic-
ularly in the Higher-priced Instruments—H. W. Randall and Others Tell of Big Orders
MILWAUKEE, WIS., January 3.—Although the past
week was by no means a breathing spell for
Milwaukee music stores, there was enough relief
from the high pressure of the immediate pre-
holiday selling period to enable dealers to cast
up accounts for the year and determine the
results. Almost without exception, reports are
to the effect that business in 1922 surpassed
that of 1921 by a large margin, and in the case
of several of the largest stores went above the
remarkable volume of 1919, which shattered all
previous marks and until now was believed im-
possible of approach.
Display floors and demonstration rooms of
most music houses in Milwaukee disclose a most
unusual condition. They are practically bare
of new instruments. It is like looking for a
needle in a haystack to find a high-grade re-
producing grand. There are odds and ends in
all stores, but lines are thoroughly depleted, due
to the manner in which business jumped in the
past thirty to sixty days, exceeding even en-
thusiastic expectations.
What this means to the manufacturing in-
dustry is plain. It is confidently believed that
during the coming sixty days orders for pianos
and for talking machines as well will be placed
by local dealers in an aggregate that has, per-
haps, never before been experienced. It is actu-
ally true that several dealers have orders for
high-grade grands and reproducing grands on
back order, to say nothing of the additional in-
struments needed for stock for the new year's
business.
With respect to lower-priced instruments,
players as well as straight pianos, there is no
great shortage, although stocks are sharply re-
duced. This is going to necessitate some good
buying by dealers from this time forward. Fac-
tories specializing in medium-priced goods ap-
parently are in better shape to fill new demands
than those devoting most of their attention to
the highest class goods.
Before Christmas Edmund Gram, head of the
big music house bearing his name, was obliged
to make a flying trip to New York to seek
supplies of reproducing grands and also Stein-
way grands. Not all of these instruments were
sold to Milwaukee and Wisconsin families, for
Christmas deliveries have not as yet arrived,
although quite a number came through by ex-
press. Steinway business at Gram's for 1922
broke all records and the volume would be
still larger if the house had been able to get all
the instruments it could have sold.
The Kesselman-O'Driscoll Co. reports "a
wonderful Ampico business," both during the
pre-holiday season and in the previous months
of 1922. Louis M. Kesselman, president and
general manager, said that business during the
first half made it appear that the year would
be only an average one, but as the holidays
came nearer demand increased with a rush and
the year wound up with the heaviest volume of
business that the house has ever placed on its
books. Sales of the Knabe Ampico were ex-
ceptionally numerous.
The Frederick Carberry Co., 420 Jackson
street, which features the Ampico in the Chick-
ering, also exceeded its best previous year.
The enormous bulk of business transacted by
the J. B. Bradford Piano Co. represented the
"biggest business in fifty years," or the heaviest
this old-established house has ever done. The
sales of the more expensive grands and repro-
ducing grands contributed considerably to this
bulk. After a check was made following the
1101 CHESTNUT ST
•Pun ADCi, PHI A
.-PA.-
holidays it was found that five Duo-Art grands
sold for Christmas delivery remained to be
shipped from the factory, while shipments of
several Mason & Hamlin grands awaited de-
livery from the factory before customers could
get their instruments.
"Just to show you what kind of business we
did this Christmas, I am going to violate my
rule and give you the names of some of the
buyers,"' said Hugh W. Randall, proprietor of
Bradford's, when The Review representative
had listened to his enthusiastic recital of the
phenomenal business of this house, which neces-
sitated telegraphic orders for express ship-
ments as early as December 1. Then Mr. Ran-
dall went to his files and gave the following
names of purchasers of Mason & Hamlin
grands: Elias Gunnell, vice-president of the
Goodrich Steamship Lines, Manitowoc, Wis.;
Mrs. O. D. Ballsmider, daughter of Peter Reiss,
steamship owner and millionaire coal operator,
Sheboygan; S. Sklute, department store owner,
Racine, Wis.; J. W. Kilcran, assistant manager
of the Palm-Olive Soap Co., Milwaukee; Theo-
dore School, general manager of the Weinbren-
ner Shoe Co.; Joe Goldman, Mitchell street,
jeweler; W. J. Fitzgerald, Great Lakes vessel
broker; Price M. Davis, general manager and
vice-president of the Shadbolt & 1'oyd Iron Co.;
George McKowen, secretary of the Hummel &
Downing Paper Box Co.; Isaac Strauss, retired
capitalist.
Included in the sales of Duo-Art reproducing
grands in the Steinway, Weber, Steck and other
makes in this group were the following well-
known Milwaukee families: August J. Luedke,
secretary of the Milwaukee Corrugating Co.;
Roy L. Stone, vice-president of the American
Exchange Bank; Nathanael Greene, wealthy real
estate operator; B. C. Mott, manager of the
JANUARY 6,
1923
Milwaukee branch of the Packard Motor Car
Co.; William S. Harley, vice-president and chief
engineer of the great Harlcy-Davidson motor-
cycle works; R. L. Bienenstock, vice-president
and manager of Waldheim's and vice-president
of the Milwaukee Tank Works; Aubrey G.
Maguire, head of the Bartlcs-Maguire gasoline
and oil properties; Mrs. Louis Auer, widow of
General Louis Auer, millionaire real estate man;
Gordon B. Reese, realtor, and Mrs. Caroline
Rheins, widow of Arthur C. Rheins, also a
prominent real estate man and many other
equally important sales.
In the interior of Wisconsin business also was
of a high order, with the rural districts coming
in more strongly than at any time since the
exceptional Fall of 1919. The Wilson Music Co.,
of Oshkosh, Wis., one of the principal up-State
dealers, also conducting a large branch at
Stevens Point, Wis., established the highest
record in its history. One of the results is that
on January 1 the capital stock of the corpora-
tion was doubled, being now $100,000. Ralph
E. Wilson is secretary and manager.
The appointment of Col. Peter F. Piasccki,
of Milwaukee, to be postmaster is gratifying
to the music trade because he has been a promi-
nent factor in it for many years. Col. Piasecki
is proprietor of a store at 441 Mitchell street,
which, during his service in France, was man-
aged by Mrs. Piasecki, who has participated in
the direction of store affairs since the business
was opened. He joined the Wisconsin National
Guard about twenty-five years ago and when
the war opened was colonel of a Milwaukee
Polish regiment, which was assigned to the
Thirty-second Division. This unit earned the
sobriquet of "Les Terribles" in France and is
further known as the Red Arrow Division. The
appointment, recommended by Postmaster Gen-
eral Hubert Work, is in the hands of President
Harding and while it may meet some opposition
from Wisconsin Congressmen and Senators, it
is believed likely that the nomination will be
approved by Congress.
YEAR-END LUNCHEON OF^JTH^NEW YORK PIANO TRADE
Richard W. Lawrence, President of Music Industries Chamber of Commerce, Makes Principal
Address at Enjoyable Year-end Luncheon Which Brought Out a Large Gathering of Piano Men
The spirit of satisfaction and confidence that
exists in the piano trade as a result of the re-
turn of good business during the last half of
1922 was well exemplified on Thursday of last
week at the Year-end Luncheon of the New
York piano trade, which brought out the larg-
est gathering ever registered at one of these
annual affairs.
The arrangements for the luncheon were in
the hands of a committee made up of Ben H.
Janssen, A. Dalrymple and Albert Bchning, the
latter as usual looking after most of the details.
During the luncheon the piano men were en-
tertained by a number of professional singers
and displayed their appreciation of the cam-
paign for better music by showing great en-
thusiasm over the jazz offerings of the pianist
and vocalists.
At the conclusion of the luncheon proper Mr.
Behning asked for a silent toast to the memory
of the two members of the local trade who had
passed away during the year, namely, George
Holz and George Reichmann, after which the
chairman introduced as the principal speaker
Richard W. Lawrence, president of the Music
Industries Chamber of Commerce.
In a brief address Mr. Lawrence told the
piano men they were to be congratulated upon
the change in the business that had come about
since the last luncheon and of their ability to
enjoy a more peaceful frame of mind. He
sounded an optimistic note when he declared
that every prospect pointed to a prosperous
year with few, if any, labor troubles, stabilized
and perhaps advanced prices for pianos and a
steadily growing appreciation of good music on
the part of the public which will make for more
business.
At the conclusion of Mr. Lawrence's talk the
session was adjourned, marking the passing of
another year in local piano trade history.
VIEWING 1923 WITH OPTIMISM
Schaff Bros. Co. Entering the New Year With
Many Unfilled Orders on Its Books
Schaff Bros. Co., Huntington, Ind., report
that they are entering the New Year with a
number of unfilled orders on their books and
are well satisfied with the general business
prospects. In discussing the situation Curtis S.
Miller, vice-president of the company, said in
part:
"As to the outlook for 1923, will say that we
feel very optimistic over the possibilities for a
better year than the one just passed, and it
might be interesting to the trade to know that
we are making preparations to speed up our
production with a hope that we may be better
able to serve . our trade during the present
year."
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Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
9
THE MUSIC TRADE REVIEW
JANUARY 6, 1923
Where "Overhead" Begins and Ends
Difficulty of Determining Line of Demarcation Between'Expense That Is"Constant^andlFixed and That Which Fluctuates
With the Rise and Fall of Business Volume—The Danger of Cutting Too Heavily Into Overhead—An
Interesting Summary by M. L. Seidman, C. P. A. of Seidman & Seidman, C. P. A.'s
Overhead has been the business man's after- business. Commissions to salesmen may dis-
war bugbear. It has been discussed, feared, appear entirely, salaries of sales force may pos-
molested and operated upon. Its reduction has sibly be cut down to a point where the part
been held out as the only possible means of
time of a single individual is utilized in order to
retaining the life of a business in the light of
maintain business life. Newspaper advertising
post-war conditions. It has been the many- may increase or decrease, depending upon the
legged monster of the merchant and has prob- policy of the merchant under a given set of
ably been the cause of more loss of sleep in conditions.
the last two years than any other element in
Management and office expenses consisting
business. Yet, peculiar as it may seem, there usually as they do of salaries of management,
are very few indeed that have ever stopped to bookkeepers, stenographers, etc., may vary ma-
think about just where "overhead" begins and terially in proportion to volume of business.
ends. I have seen any number of splendid
Fixed charges and upkeep such as rent, light
articles on the analysis of business expenses, on and power, insurance, depreciation and the like,
their classification and their treatment in ac- on the other hand may be almost constant under"
counts. Minute lines of demarcation have been all circumstances. Yet it could not be said
drawn between one kind of an expense and that it is only this group of expenses that rep-
another. The business man has been shown resents the overhead of a business, merely be-
just what is and what is not cost of his goods. cause it consists of items that are little affected
But it is surprising how little light can be ob- by business volume, for even these would
tained on the generally discussed and mis- change to some degree at least in proportion
understood term "overhead."
to business done.
What Overhead Really Means
Various Ideas Regarding Overhead
"Overhead" to the going business, therefore,
Overhead has been usually referred to in the
is that amount of daily expense that would con-
books as the "cost of doing business." Yet, if
one stops to think a moment, it will be found tinue even if sales were suddenly stopped or
that the average business man looks upon over- were very materially and radically decreased.'
When the falling off in business is considered
head as the cost of not doing business. One
constantly hears of the necessity of doing busi- to be only a temporary affair not justifying the
ness in order to cover a certain "overhead." application of a "knife" toward its reduction the
The very word conveys the thought of some- overhead might be permitted to continue almost
thing hanging over the head of a business, in- to the full extent. To reduce overhead, how-
dependent of the volume of business done. It ever, and still continue to do business and
is that thought which I believe the average maintain an organization capable of performing
man has as his conception of "overhead." For efficiently upon the return of business volume,
in any business there is a certain amount and
class of expenses that cannot be dispensed with
if the business is to continue to operate. In
that case overhead expenses consist of all ex-
penses which are not directly chargeable either
to the customer or to particular sales.
The goal of business is profit. In order to
arrive at profit it is first necessary to make
two distinct outlays; first, the cost of goods,
and, second, the cost of conducting business.
The true cost of goods includes not only the
purchase price, but all expenses of transporta-
tion, drayage, etc., necessary to bring the goods
to a salable and deliverable condition. Then
come the costs of doing business—selling and
delivery expenses, administration expenses,
fixed charges, etc. I have always liked to pic-
ture the road to profit by means of steps, as
follows:
there must be a boiling down of each element
of expense to such a point where the manage-
ment considers it safe for prevalent conditions,
but not overlooking the possibility of early im-
provement.
It will be seen, therefore, that overhead is
a "pretty slippery sort of an animal," and in
trying to get at its beginning and its ending
one would almost conclude that it has neither
if applied generally. Yet if applied to a specific
business it certainly represents a definite bur-
den hanging over that business which must be
covered by a specific volume of sales before
profits can even be thought of. It is the "skele-
ton" of operating expenses and I suppose that
when one says that he has cut his expenses to
the bone he really means that he has reached
that skeleton.
Success is the reward belonging to that group
of business men that have learned to cut close
to the bone and yet leave enough recuperating
ability for the overhead skeleton to take on
plenty of flesh in the shortest possible time if
conditions require it.
MARK PIANO SERVICE CHARTERED
The Mark Piano Service Co., Cleveland, O.,
has been chartered in that State, with a capital
of $5,000. Incorporators are A. J. Mack, H. W.
Borgstedt, I L. Nichols, Monroe A. Loeser and
L. Dunmar.
A music store was recently opened in Chis-
holm, Minn., by Peter Grosso.
The Dealer
Who Handles
EST. 1856
| Fixed charges,
j upkeep and
I miscel. expense
Management and
Office expense
| Delivery expenses
| Selling expenses
Buying expenses
| Primary cost of goods
It is the steps between the primary cost of
the goods and the top step of profit that is
quite generally referred to as the cost of doing
business. Overhead lies somewhere between
those two points, but may be a small part only
of the total cost of doing business. Buying ex-
penses, which usually consist of salaries and
wages of buyers, traveling and other expenses
may be increased or decreased in proportion to
volume of business. Selling expenses may in-
clude such items as salaries of sales force,
premiums, commissions, etc. It may also in-
clude advertising of various kinds.
A number of these elements will be readily
seen to vary in proportion to the volume of
BUSINESS FOUNDED IN
EIGHTEEN FIFTY-SIX
51 SON
Pianos and
Player-Pianos
always has the assurance of the highest quality uni-
formly produced—a very comfortable feeling which
inspires the confidence of a prospect and ultimately
results in increased sales.
Let us know your 1923 requirements.
"Made by a Decker Since 1856"
DECKER & SON, Inc.
697-701 East 135th Street
NEW YORK

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