Music Trade Review

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JANUARY 20, 1923
THE
MUSIC TRADE REVIEW
Canadian View of the One-price System
C. W. Lindsay, One of the Best Known of Retail Piano Merchants in the Dominion, Points Out That the Basis of Successful
Retail Piano Merchandising Is the Same Price to All Under All Circumstances—Its Universal
Adoption the Greatest Factor in the Uplift of the Piano Trade
[The following article written by one of the best known
of Canada's retail piano dealers, gives the Canadian view-
point on the question of the one price, and its allied
policy, price maintenance by manufacturers. It should
be remembered, in reading this article, that the Canadian
laws covering the latter practice differ considerably from
those in the United States.—EDITOR.]
If you point to six leading retail business
houses, I am safe in saying you will point to
six one-price houses, though their systems may
differ one from another. For example, take OUT
leading jewelers, with stores throughout the
Dominion, and their policy is 10 per cent, thirty
days, but if the account runs over thirty days
there is no discount and they are satisfied to
give their customers time on these conditions.
Our leading departmental store in Montreal
gives no discount for cash and charges 6 per
cent after thirty days. I consider both of these
one-price houses with different systems.
I find some in the trade give a discount of
$25 for cash on upright pianos and $50 for cash
on grand and player-pianos. Others make a
much larger discount for cash, and some quote
the cash price only without any discount, and
add 7 per cent on time sales and there are
many other different plans different makers and
dealers work on.
Among the suggestions offered, one is to
quote the price with an understanding that the
salesmen have the right to take off $25 in cases
where they are obliged to. Another suggestion
is to quote the price and make a discount of
$25 on an upright and $50 on a grand or player-
piano for cash. The third suggestion is to
quote the cash price, which is the one and only
price, with interest at 7 per cent on the instal-
ment plan. The latter is the plan we have
adopted at our head office and all our branches
and we believe it is the best system for the
retail dealer, after everything is taken into con-
sideration.
Satisfying Both Cash and Time Buyers
The majority of customers buy pianos on the
instalment plan and many of them want to feel
that they are not paying much more than the
cash customer. When we point to them the
cards in our various salesrooms which state,
"One price only. Interest a.t 7 per cent on time
sales," it helps in many cases to close the sale.
If there were a cash discount it would interfere
with closing the sale,.and again, if it is a cash
customer, and he sees the sign "One price
only," it also helps to close the sale at the one
price.
We were doubtful at first if we would lose
any business in adopting this policy, but are
now convinced we lose less in standing for one
price only than in any other way, and at the
same time we add to the dignity and reputation
of the business and company.
The Talking Machine Trade Method
The makers of talking machines, like those of
automobiles and pianos, have many different
styles and prices. But they put a price on each
of their various styles and have an understand-
ing with their representatives that all must sell
their goods at the same price and one price
only. The question of interest on time sales is
left to the discretion of their representatives.
The penalty sometimes means the loss of the
agency if the representative reduces the price.
Would it not be a fine thing if the piano makers
and dealers had an understanding like this?
Putting One Price Into the Contract
It has been suggested by some that if an
understanding is arrived at between the piano
makers and dealers to sell the different makes
they represent at one price a penalty should
form part of the agreement in cases where there
was a breach of contract. This might keep
some from entering into such an agreement.
The talking machine people would withdraw
the agency.
No doubt, there would be some exceptions
to the one price. It takes the exception to
prove the rule and a man might be disposed
to sell one of his relations or one of the staff
an instrument at a reduced price. The same
thing might apply to any first-class house doing
business on the one-price basis, but this would
be an exception, and might justly be tolerated.
It would not be a matter of competition, be-
cause in such cases the sale would go to the
dealer who wished to make a concession to
his relation, or a man might be disposed to
makers will agree with me, because I believe
it is the makers who should advise and suggest
to their dealers the advantages to be gained by
putting in force the one-price system. But
unless they endorse the one-price system with-
out any discount, the dealers will not hold to
it in the same way and get the best results.
Letters From Makers
I have received a number of letters from
some of the leading makers on the subject of
the one price, and I may say they are all unani-
mous in advocating the one-price system with-
out any discounts. I have referred the matter
to all of our different managers and the ma-
jority of them are in favor of the one price
without any discount. One of the latter re-
marks that "Right is might."
I have no hesitation in recommending all the
above for your serious consideration and highly
appreciate the opportunity you have afforded
me in bringing this matter to your attention,
and trust the leading makers and all others in
the trade will see their way to adopt the one-
price system.
EILERS RECEIVER FILES REPORT
Declares in Statement to Court That It Is
Impossible to Mike an Accurate Audit of
the Affairs of the Bankrupt Concern
C. W. Lindsay
give his goods free or at a reduced price to a
philanthropic institution.
Some time ago I had the opportunity of
hearing Sir Thomas White, ex-Finance Min-
ister for Canada, in an address. His text was:
"Self-sacrifice and Self-denial and Increased
Production and Economy." His remarks sug-
gested to me that it might be advisable, con-
sidering existing conditions, to allow our retail
prices to remain as they are if the one-price
system is adopted in spite of all the increases
that have taken place in the wholesale cost of
pianos. This would be sacrifice. We do not
wish to give the public, nor the press, nor the
Government, any reason for taking any excep-
tion to the prices we are selling our goods at,
or the way we are conducting our business.
Advertising the One-price Policy
Again, if the one-price system is adopted,
would it not be advisable to advertise it
throughout the country and advise all who are
selling pianos to have cards printed and placed
in their various salesrooms, "One price only and
interest at 7 per cent on time sales," and have
price placed on each instrument? If this were
done I think the piano trade would soon forget
that they had anything but one price and fall
in line with the automobile and talking machine
makers. It would, no doubt, take a little time
to get everyone to think the same way, but
cutting out the drape, free cartage, extraordi-
nary allowances on old instruments offered in
exchange, and the 7 per cent interest we are
now getting which we never used to have on
time sales, are some of the reforms that have
taken place in connection with the piano busi-
ness. But I think the one price will do more to
uplift the piano business than anything else.
In offering the above suggestions, I am talk-
ing from a dealer's standpoint, but trust the
PORTLAND, OKE., January 14.—The report of the
receiver for the Oregon Eilers Music House,
bankrupt, has been filed in the Federal Court
and states that it is absolutely impossible to
make an accurate report of the affairs of the
concern. According to the report of the audi-
tor to the receiver, the liabilities of the firm
are given as approximately $128,488.12 and the
assets as $102,913.20, but it is stated that this
is only a tentative finding.
"The books are in very bad condition," says
the report; "no postings have been made since
September and the accounts of creditors have
been ignored since August. The papers are in
confused masses in different parts of the offices
and some of the books have not yet been
located."
The report states that no record of the lease
contracts have been kept since November and
many entries were found that had no supporting
notes or papers.
The unsecured claims against the firm range
all the way from a few cents to thousands of
dollars.
"A balance of $63,908.42 in Spokane is the one
large account," says the auditor, "that may have
a definite value as an asset. It is impossible
to make an approximately correct schedule of
the assets.-"
A. STEINERT 0N_LEGAL COMMITTEE
Alexander Steinert Named to Succeed the Late
Kirkland H. Gibson on Legal Committee of
Music Industries Chamber of Commerce
The Music Industries Chamber of Commerce
has announced the appointment of Alexander
Steinert, of M. Steinert & Sons, Boston, Mass.,
as a member of the Chamber's Legal Committee
to succeed the late Kirkland H. Gibson. Mr.
Steinert has accepted the appointment.
GEWEHR PIANO CO. CHARTERED
WILMINGTON, DEL., January 16.—The Gewehr
Piano Co., of this city, has been incorporated
with a capital of $100,000 to manufacture pianos.