THE
VOL. LXXVII. No. 12. P.blished Every Sahlrday. Edward Lyman Bill, Inc., at 383 Madison Ave., New York, N.Y. Sept. 22. 1923
Single Copies 10 Cents
$2.00 Per l'ear
1:IIIXIIIXIlIKlllgIIIXIIIXIlI=CIII=ClllgIIlHllIgllIgl"glllglll~"IKIlIglll~III~IIIHIIIHlIlgIIIXIIIIXI/lgIlIXIIIXllIglIl~IIIHII
iiiiifiiJhiiiiiiiilhiiiiiil,.'lJIliiJ" .. iii'ilill", .. 'ii!ii,i.ijjj,,,i"liiij"iiiilili .. i"i"ial"""iiiiii"i'j.",,,.hiiJ""I .. ,jiii"iii(i(l'J,C'""j,jiiii"ijiillj"IiIl"iiiiJiiiiiiiii ij ',j'iillii'''iliilil''''
Investigating the Waste in Retail Selling
IIXIII~III:ClllgIlIKIII~III=CllIgIIIXIIlXIIIXIII~III~III~III=IlIX"I;;11 1311IXHlXIIIXIlIXIIIXIIIXlU:CIll=eIllXIIIXIlIXIII,,'
N E of the most interesting developments in association activities for many months has been the appoint
ment by Robert l\. \A,-'atkin, President of the ~ational Association of Music Merchants, of a commit
tee headed by F. B. T. Hollenberg, of Little Rock, and including a dozen men of standing in the
retail trade, to study \·vays and means for the elimination of waste it) the retailing of pianos, players
and phonographs. It may be said at the outset that the committee has before it a task of no mean proportions
and earnest work and that the co-operation of the trade will be required if a comprehensive report on the sub
ject is ready for presentation at the next annual association convention in New York.
The elimination of waste in retailing is, or should be, an actual sequence to the determination by the
merchant of the actual cost of handling his business. The knowledge of accurate costs of retailing in the
mllsic field has been urged time and again by The Review. In fact, there is now in preparation a series of
articles on that subject which promises to be illuminating- to the trade at large, founded as they will be upon
practical information gleaned from thoroughly authoritative sources.
There are various channels of waste that have existed particularly in the retail piano trade almost from
time immemorable. The old practice of giving away scarfs and the modern habit of advertising free benches,
rolls, cabinets, and even lamps and rugs with piano and player sales have been recognized as representing direct
waste, which, in such instances, is so obvious that the committee can doubtless present and emphasize them
without any investigation whatever.
Other sources of waste that should be and probably will be brought to li ght are not so obvious as the
throw-ins. They are to be found in the excessive costs created in handling various departments and phases of
the retail music business. The inefficient laying out of departments, the improper handling of credits, inaccur
ate mailing lists, poor ordering systems, the lack of informative stock records and a hundred and one other
factors that eat into the profits of a business are all to be considered under the heading of waste, and to ferret
them out in a way that would be understandable to music merchants in a body will represent a task of no mean
proportions.
It is a noteworthy fact that the retail music houses which are recognized as successful know without ex
ception just what their overhead is in the various departments of the stores. Where the figures are too high,
they are in a position to check up on the various items and make corrections that will reduce costs. That is
the chief basis · on which the music merchant himself_ can analyze his business and check waste where it is
shown to exist.
In taking up such work as this for the purpose of making the average retailer a more efficient merchant,
the National Association of Music Merchants and other trade organizations are rendering a service that makes
such bodies worth while.
The benefits that are realized fr om such investigations as that concerning waste in the trade do not by
any means fall entirely to dealers who have occasion to take advantage of the advice offered, but prove of
benefit to the retail music trade as a whole, through eliminating in a considerable measure competition that is
harmful because it is based upon a misunderstanding of retailing costs and business losses.
/\ny collection of information that will enable the retailer to put his business house in order increases his
efficiency and a better understanding of the details of his business is going to make for improved retail condi
tions as a whole. There is no meaner competition than that which emanates from
retailer who sells at
dange rously low prices or ridiculously low terms which mean a direct loss to him.
The importance of the problem of eliminatIng waste in the distribution of various products has . been
recognized by the Department of Commerce itself with the result that conferences of officials and business men
on that subject have already been held in Washington.
O
a