Music Trade Review

Issue: 1923 Vol. 76 N. 8

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
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(.Kcgisicred in tne U. a. faieni UfficeJ
PUBLISHED BY EDWARD LYMAN BILL, Inc.
President and Treasurer, C. L. Bill, 373 Fourth Ave., New York; Vice-President,
J. 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, Win. A. Low.
J. B. SPILLANE, Editor
RAY BILL, B. B. WILSON, BRAID WHITE, Associate Editors
WM. H. McCLEARY, Managing Editor
CARLETON CHACE, Business Manager
L. E. BOWERS, Circulation Manager
Executive and Reportorial Staif
£ . B. MUWCH, ARTHUR NEALY, V. D. WALSH, EDWAKD VAN HARLINGEN, LKK ROBINSON,
Jos. A. MULDOON, THOS. A. liRESNAHAN, E. J. NEALY, C. R. TIGHE, A. J. NICKLIN
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Vol. LXXVI
NEW YORK, FEBRUARY 24, 1923
No. 8
THE FINANCING PROBLEMS OF THE RETAILER
BUSINESS in which "frozen credit" exists is likely to be in
bad condition, for, although fundamentally sound, it faces a
situation that precludes its development along normal lines. In any
industry where the bulk of the selling is done on an instalment
basis, as in the music industry, this danger of "frozen credit" is con-
tinually existent, and unless there is a thorough understanding of
financing methods that will free capital and permit of steady pur-
chases and rapid turnover business is likely to become stagnant.
There are a large number of successful dealers who have for
years understood properly the science of financing their businesses
in a way to keep their capital, sometimes rather limited, functioning
steadily. They have learned that no matter how good piano or talk-
ing machine paper may be it is likely to prove a millstone around
their necks if held in the safe, and even in the hands of ordinary
bankers it is accepted as collateral for loans so small that they are
out of all proportion to the security's value.
There are several sound ways of financing a business where
instalment accounts are in the majority—ways that provide the
dealer with cash for his paper and keep his capital comparatively
free for purposes of business development and expansion.
In The Review this week there appears the first of a series of
articles on financing the retail music business that are calculated to
show the way to the retailer who is suffering from "frozen credit."
The articles are authoritative and are based on the actual experience
of concerns in and out of the music industry which have success-
fully financed themselves and their dealers through the proper use
of instalment paper as a means for getting cash. There is no magic
to it, but simply sound business logic.
The dealer who finds his capital tied up and his business expan-
sion hindered as a result will find much material for careful thought
in the series of articles. An analysis of business successes in this
and other lines of industry will show that such success has been due
in no small measure to proper, intelligent and safe financing.
A
THE AGE OF THOSE WHO BUY PIANOS
' I ' H E piano is an instrument favored by those of mature years,
A while talking machines, records and band instruments appeal
most particularly to those on the sunny side of thirty. These facts
FEBRUARY 24, 1923
have been brought out as the result of an extensive survey made
under the direction of and published by the Photoplay Magazine to
determine the age factor in selling and advertising. Only 2 per cent
of piano purchasers are under eighteen years old, while, due prob-
ably to the popularity of the jazz band, 26 per cent of the purchasers
of wind instruments are under that age limit. On the other hand,
only 8 per cent of wind instrument purchasers are over forty-five
years old, whether due to lack of interest or lack of wind is not
stated. The Review, with the permission of the Photoplay Maga-
zine, presents the salient points of the survey elsewhere in this issue.
It is sufficiently authoritative to be of distinct interest and value to
those who have a penchant for classifying their customers.
IS THE INDUSTRY A REPLACEMENT BUSINESS?
WESTERN dealer declared not long ago that after making
A
a survey of his business last year, and taken as a whole
it was a good volume, he found close to 75 per cent of
his profits were tied up in his warerooms and in his ware-
house in the form of used pianos taken in exchange. In other
words, his business for the entire year has been chiefly one of
replacements rather than of outright sales, and the result was
that he worked for twelve months for approximately 25 per
cent of the profits that should have been his, judging from the
gross volume of the business.
This problem of the used piano is a very real one in the
industry and is growing rather than diminishing. In fact, it is
serious enough to demand the attention of those big minds of
the trade who see in discussions and conferences means of
getting at the root of the problems that keep the industry from
expanding as rapidly as it should.
This seriousness of the situation is realized when it is
understood that the bulk of these existent stocks of used pianos
have been brought into the warerooms and warehouses within
the past three, or at most four, years. During the late months
of the war when piano production was at low ebb, there were
sections of the country where anything that remotely resembled
or sounded like a piano was salable, and several concerns made
very substantial incomes by buying up used instruments, recon-
ditioning them and in turn selling them to dealers.
It might be well for local associations of piano dealers to
give thought to this matter, and it is even worthy of the con-
sideration of the National Association at its June conventions
in Chicago, if not before. If it is possible to decrease the num-
ber of replacements and increase the proportion of direct out-
and-out sales so much the better. If not, it will be well to
develop a definite plan for decreasing allowances on used pianos
to a point where it does not seriously matter whether they are
sold or given away. In short, if it is to continue to be primarily
a replacement business, let the margin of profit on such replace-
ments be sufficient to warrant the effort and expense.
THE POSITION OF THE SMALL-SIZED UPRIGHT
interest is being evinced in the trade in the progress
M UCH
of the small-sized piano, and the result has been a great
variance of ideas as to the future of that type of instrument,
although the consensus of opinion is that eventually it will go far
to supplant the larger and more cumbersome styles of uprights.
Those who have gone into the production of small pianos
on a consistent basis have found a sufficient demand for the
instruments from schools and also from homes to warrant their
optimism regarding the possibilities, but it is held by some of
the technicians that, in certain cases, the present success is only
temporary because many small piano scales are makeshifts and
represent adaptations of larger scales rather than the creation
of a distinct, new type.
It happens, however, that two or three of the manufacturers
at least have seen fit to build the small piano from the ground
up, as it were, having a scale drawn for the particular pur-
pose of meeting the requirements of the small case, and with
the idea of developing tonal qualities for which no apology need
be made.
Certain it is that the modern home, and particularly the mod-
ern city apartment, is so designed and built that the small piano
fits particularly well into the scheme of things, for space is at
a premium and the small piano requires little space.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
FEBRUARY 24,
1923
THE
MUSIC
TRADE
REVIEW
Co-operation in Marketing the Player
Manufacturers and Dealers Must Unite Intelligently in Meeting the Selling Problems Which the Past Has
Created With This Instrument—Such Action a Fundamental in Permitting This Instrument to
Grow in Demand—Problems Raised by the Advent oi the Reproducing Piano Today
How is it that the application of pneumatics
to the field of tone production has fallen so far
short of the expectations of the pioneers? How
is it that the most strenuous efforts, the most
ingenious advertising and the most costly pro-
motion are devoted to the task of selling the
most complex of forms in which the applica-
tion of pneumatics to music can be conceived,
while, in practice if not in precept, the voice
of the industry declares that the simplest form
is beyond its power to market successfully?
Why, on the other hand, does it appear that
precisely the opposite is also true, and that a
very powerful, very successful and very ag-
gressive interest in the same industry pins its
faith upon the simplest form of player-piano,
discovers ways of marketing it among the re-
tailers and is able to teach the latter how to
sell it with equal success to the people?
Why, that is to say, should there be manu-
facturers who can see nothing but electric auto-
matic pianos, and others who are showing that
it is just as easy, if not easier, to sell the foot-
expression instrument and keep the owners
thereof satisfied and happy?
If the first are right the second are wrong,
and vice-versa. Yet, the facts seem to show
that both are right. There is something very
interesting here, it seems; something which
ought to be investigated, for it is sure to point
to some fact or group of facts which everybody
ought to know and understand.
A Bit of History
For some years past a great deal of ingenious
work has been done to produce and perfect a
pneumatic system which will give reproductions
of the playing of individual pianists. An ad-
mirable success has been reached in these en-
deavors by those who have gone about the
job in the right way; but unfortunately their
success has led to a crop of imitations, some
of which are indeed by no means bad, but others
of which are very poor indeed. There has been
an almost exact parallel in this case with, the
course of events after the first emergence of
the cabinet "piano player" of twenty-five years
ago. A very few instruments of the first class
came out almost simultaneously and for a time
the music industries adopted towards them an
attitude of watchful waiting, determined to do
nothing 'till it should be seen how events would
turn out. Meanwhile, as in all developments of
the kind, various other inventors came forward
until in due course it occurred to more than one
shrewd man that there would be much profit in pro-
ducing a player mechanism which every piano
maker could use in his own instruments. At
once a new era began. The player became uni-
versally available, and its distribution the task
of many rather than of a chosen few. At once
the emphasis of the selling methods began to be
differently placed. Instead of music, price be-
came the keyword. The player-piano was ex-
pected at first, as any one can find out by
looking over the files of the trade papers for
the period 1905-1910, to be the pet of the in-
dustry, which should always be sold for cash
and never allowed to become the plaything of
special sales artists or of long-terms givers. But
the pressure was too great and the player-piano
sank down into a level with the straight upright,
a place which even the coining of the repro-
ducing piano has been unable to change.
To Be Duplicated
Precisely this train of events is apparently
about to be duplicated. Already a crowd of
imitations of the true reproducing piano has
been produced, each of which is boomed-as if
it were the best on earth. In consequence, the
originators of the movement are already con-
strained to make vigorous eflorts to keep tneir
own methods and products separate and in-
dividual. The only imaginable consequence is,
of course, a progressive deterioration of interest
and enthusiasm throughout the industry, ending
in a state of stagnation which will prevail until
something new and revolutionary again emerges.
This obviously is not an ideal state of affairs.
Its existence is sincerely deplored by those who
best understand the facts. Yet, it must be
faced and, if possible, remedied.
For certainly if it is not remedied all the
ingenuity, all the faith and all the labor which
have gone into the development of the repro-
ducing piano will sooner or later be brought
to nought. It is impossible for any manufac-
turer to carry out even the best-laid plan if he
is unable to secure the intelligent co-operation
of dealers throughout the country. With such
co-operation anything can be done. Without it
nothing can be accomplished.
Co-operation the Secret
Because they secured in the earliest days the
intelligent co-operation of high-grade men, the
originators of the player business have been
able, through good and bad times alike, to grow
and prosper. Because on the contrary, from
the moment when the player was first exposed
to the cheapening process, individual pride in
individual achievement became more and more
difficult to maintain the intelligent co-operation
of dealer with manufacturer became more and
more difficult. It has in effect ceased long ago
to exist. A parallel degeneration will overtake
the new movement unless the evils which now
threaten it are envisaged and remedied.
For the greatest problem which calls for
solution at this time in all our industry is the
problem of securing an understanding between
manufacturer and dealer as to the things which
each is to do in their common task and as to
the relations which are to subsist between them
during its performance. As it appears just now,
the task is double. On the one hand, it is neces-
sary to bring the people to an intelligent com-
prehension of the remarkable possibilities of
the reproducing piano, in its genuine and ef-
fective form. On the other hand, it is equally
necessary to reorganize the sales methods now
applied to the foot-pedal player-piano and espe-
cially to apply in them some intelligent thought.
Only by doing both these things can we expect
to save the reproducing piano from ultimate
and not long delayed recession to the rank of
a mere incident in the music industry's equip-
ment.
The Place of Compromise
It is, perhaps, too much to hope that the
retail branch of the industry will wake itself
into action and insist that the player business
be rightly divided between the true reproducing
piano and the true personal-control player. Yet
that way lies the solution. There will, no doubt,
be a place always for electric-driven players of
lower rank than the true reproducers; but the
point is that the emphasis ought not to be put
on these compromise instruments. They ought
to be regarded as what they are, compromises
between two equally valuable ideas. In other
words, the danger lies in the fact that if we
insist upon boosting a more or less plausible
imitation as the real true reproducing piano,
we shall do for the real thing what was once
done for the straight player-pianos of the origi-
nal high-grade makes. We shall, in fact, drag
down the high-grade articles without lifting up
the low-grade products.
This is the situation that ought to be faced
and it is time for the manufacturers to take a
strong stand. Those of them who have already
taken such a stand (and the most successful
are they) find that they can in effect obtain
dealers' "consent to intelligent co-operation on
both reproducing and foot-pedal player-pianos,
as a condition of agency. There is no need to
mention names. One only has to think of the
busiest and most successful manufacturers in
the two branches of the player industry to know
exactly what we mean.
Let the manufacturers say in effect: "We will
not have the reproducing piano degraded or the
foot-pedal player killed. There is a place for
each and we insist on keeping each in its place,
without imitations or compromises. So far as
compromises are necessary, we will supply
them; but we will not have them called any-
thing but what they are."
Then, perhaps, we shall find ourselves getting
somewhere! For, after all, dealers are usually
willing to work with any one who can show
them how to sell players. The manufacturers
can do this and some of them are doing it.
These last know that they can secure whatever
conditions they choose to impose.
FORM MUSIC WEEK ASSOCIATION
Observance of New York Music Week to Be in
Hands of New York Music Week Association
The observance of Music Week in New York
hereafter will be in the hands of a newly in-
corporated organization known as the New
York Music Week Association, it was an-
nounced last week at the new headquarters, 299
Madison avenue. Otto H. Kahn, honorary pres-
ident, is among the large contributors. Felix
Warburg and the Jtilliard Musical Foundation
also have contributed.
In addition to observing Music Week by
arranging concerts and events, the Association
will conduct contests in the public schools,
offering prizes which range from medals to a
year's study abroad. By its continued activity
the Association hopes to bring back music,
especially vocal, to the homes, because it feels
that only by competitions and festivals such as
those held in England and Canada can the
standard be raised.
The incorporators are Felix Warburg, Morgan
J. O'Brien, Jr., Miss Isabel Lowden, Ray
Palmer, Thomas L. Lemming, Albert Goldman
and George Cromwell. The educational pro-
gram is being arranged by a committee of
which Ignace Jan Paderewski is the honorary
chairman; T. Tertius Noble, chairman, and
George H. Gartlan, vice-chairman.
PROTECT "THE ROLL OF HONOR"
United States Music Co. Registers Its Well-
known Trade-mark in Washington
CHICAGO, I I I . , February 19.—The United States
Music Co. announces that the company's slogan,
"The Roll of Honor," used on all its products
has been duly registered as a trade-mark under
the United States laws. Application for registra-
tion was filed on April 7, 1922, and protection
was granted on February 13 of this year.
STEMM MOVES TO NEW WAREROOMS
ZANESVILLE, O., February 19.—Henry Stemm
has moved his warerooms from North Fourth
street to 330 Main street, this city.

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