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VOL. LXXVI. No. 9 Published Every SaUrday by Edward Lyman Bill, Inc., 373 4th Ave., New York, N. Y.
Mar. 3, 1923
Single Copies 10 Cents
92.00 Per Year
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Co-operation in Compiling Depreciation Schedule
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ACK of accurate knowledge regarding the age of instruments offered in exchange as part payment on
new pianos has cost the piano merchants of this country hundreds of thousands of dollars through in-
ducing them to make allowances more or less in the dark and consequently considerably in excess of
actual values.
It happens frequently that the dealer himself makes an earnest effort at least to break even on the ex-
change and, while giving the customer what he believes to be an honest valuation, at the same time seeks to
protect his own interests. Unless, however, the dealer can personally inspect each piano offered in exchange
through his salesman and have some accurate knowledge of its age and standing, he is almost sure to get
into frequent difficulties.
It is with a view to giving the retailer some fairly accurate guide on used piano values that the Music
Industries Chamber of Commerce, through a capable committee of which C. Alfred Wagner is chairman, is
working on the compilation of a depreciation schedule of used piano values. At the present time the Com-
mittee is seeking the co-operation of both manufacturers and dealers in an effort to develop a schedule that will
be of genuine value.
Of particular interest is the plan for collecting the serial numbers of as many makes of pianos as pos-
sible for each year since 1890, and the co-operation of the manufacturers as already manifested practically in-
sures obtaining much authentic information along that line. This list of serial numbers is expected to prove
of great value, for it will give to the dealer a direct means of checking up on the age of instruments upon
which salesmen have passed first judgment. It will mean that instruments which in many cases are valued
by the salesmen at $225 to $250 on a basis of appearance and anxiety to close the sale will prove through the
serial number to be of an age that will warrant only an allowance of $150, or less. It is realized, of course,
that no hard and fast schedule of allowances applicable to all situations is possible, but it is likewise realized
that it is very possible to gather together information that will serve as a rule and guide to the dealer without
binding him to follow out rigidly the figures given in the schedule.
Another important feature of the proposed schedule is that providing for the listing of retail prices of
practically all makes of pianos as of February 1. 1923, in order that the retailer may have some guide in deter-
mining the price actually paid by the customer for the used instrument when it was bought originally. This-
is the most important factor in enabling the retailer and his salesmen to place a fair value on the piano offered
in exchange. There have been cases known where prospects have been inclined to exaggerate to a greater or
less degree when proclaiming the original cost of the piano offered in exchange.
There have been allowance schedules on used pianos prepared by local and national organizations at
various times, and several of them have worked out very successfully. I-Hit this is the first time that a really
serious effort has been made to draft a schedule, national in scope both as to the information offered therein
and its sphere of usefulness.
Piano manufacturers, merchants, travelers and, in fact, all those engaged in the various branches of
the industry are being approached by the committee, through the medium of questionnaires, in an effort to
gather from all sources as much information as possible on the value and standing of used instruments, with
a view to making this new schedule authentic and practical. The movement is deserving of the support of all
members of the trade who have appreciated the tremendous losses occasioned through over-allowances and
who will see in the new schedule a means, to a certain degree, at least, for overcoming the problem.
It cannot be expected,'however, that any schedule or any budget of information will act as a panacea
for all evils associated with trade-ins. Over-allowances will continue to be made by retailers who gauge their
business success by volume rather than by profit and who meet competition with price-cutting and concessions.