Music Trade Review

Issue: 1923 Vol. 77 N. 20

THE
4
J\{USICTRADE
THE
f1USlC !'\AD"

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Vol. LXXVI[
NEW YORK, NOVEMBER 17, 1923
No. 20
TRAINING THE RETAIL MUSIC SALESMAN
H E announcement that the Music Industries Chamber of Com­
merce is about to undertake the compilation of a corre­
spondence course in salesmanship for the retail music salesman is
interesting in that it indicates the seriousness with which the prob­
lem of the trained retail salesman is oeing taken by the organized
music industries. However, no matter how thorough and compre­
hensive such a course may be, little can be accomplished by it
l!nless the action of the Chamber is backed by the . co-operation of
the individual music merchant.
The trade, as a whole, has long been aware of the scarcity of
req.lly trained men among those who come in direct contact with
the ultimate purchasers of musical instruments. Spasmodic effort~
have been made at times to overcome this deficiency, but in every
case they have been checked and hindered by the merchant himself.
the man who it might be th ought would be most willing to give hi5
full co-operation and spare no efforts in making them a ~ ucce ss.
An instance of this was th e sales manship school conducted more
than a year by th<.: K ew York Music Merchants' Association, which,
while it was a success so fa r as organization and curriculum wen'
concerned, failed to achieve its object primarily because compara
tively few of the retail music merchants in the metropolitan dis ­
trict bestirred themselves to have their men attend the courses.
The retail music trade to-day suffers continually because of a
lack of trained salesm<.:n. Th e man who sells musical instruments
at retail necessarily requires a more thorough understanding of hi s
merchandise and what it represents in the ultimate pleasure and
education that it gives to the owners than is the case with most
lines of retail selling. L a ck of this knowledge essentially means
lost sales. The ultimate solution of the problem lies in the hands of
each individual merchant.
T
THE PROGRESS OF THIRTY-FIVE YEARS
I
T is only when some distinctive anniversary occurs that the rapid
flight of time can be adequately measured in connection with
the advance of any industry. T o-day, in the piano industry, self­
playing instruments are still regarded to some extent as a recent
REVIEW
]\/OVEMBER
17, 1923
advan ce and retain to some degre e, at lea st, an eleme nt of nowlty ,
especially to those men who have been connected with the industry
since this type of instrument's inception.
Yet, the self-playing instrument ha s surely gone far past its
majority, a con<4ition which is the more strikingly apparent when
such an announcement as that recently sent out by C. ]. Heppe &
Son, of Ph iladelphi a, comes to hand . Thi s well-known Quaker
City house is now conducting a se ries of eleven concerts which
mark the thirty-fifth an niversa ry of the introduction of self-playing
instruments in Philad elphia in 1888 by that hou se.
No more fitting celebration cou ld be g iv<.:n . The advance that
has been made in the self-playing instrument during the past thirty­
five years is remarkably demonstrated in these concerts by the use
of the Duo-Art, a ty pical example of the remarkable mechanical and
technical advance which has marked these years of steady progress.
It is perhaps too bad that one of those first crude self-playing in­
struments, which in their day were a marv('\ o f the indu stry, could
not be h eard in conj unction with thi s latest of the developments
that have sprung from it ·the modern reproducing piano. For then
only could the inventive genius, which has steadily contributed to­
ward s the dev elopment of thi s la tter in strument, be measured and
the great advance that has beE'u mad e be adequately perceived.
Yet, when it is considered. that in these conce rts the personal
interpretations of such world-famous pianists as Bauer , Paderewski
and Friedman will be heard with every exact detail of their s ~~'le s,
then we can see what the industry ha s achieved during thi s genera­
tion and see far more vividly than is usually the case the contribu­
tion which it ha s made to the musical dev elopment of the country.
C. J. Heppe & Son are to be congratulat<.:d on thu s distinctly mark­
ing an anniversary that is of inter es t not on ly to evrry man within
the industry but to all \ovho ar~ intC'l"esterl in '\merica's musical
advance.
NEITHER ~_HE AGE NOR THE
T
TI~_~-_- __
I
H E failure of a certain Brook lyn piano dealer see ms to have
aroused wide comm ent in the metropolitan press. In fact,
these papers have taken such a n inter est in thi s event that the
New York 'W orld went <;0 far as to devote a good deal of space
to it upon its editorial page. But the gem of all comment was an
article which appeared in the ne\o\(s column s of the Kew York
Herald, which seized this opportunity to devriop, as it said , "the
hopelessness of the struggle against an era of jazz and speed and
joys less subtle than those which it (the piano firm) enoe provide_"
Of course, th<.:re is always an elem<.:nt o f pathos in the failure
of any old-established business firm a nd thi s particular Brooklyn
piano merchant was truly a pioneer in his fidd . But there is proba­
bly more behinrl the failure than th e newspaper commentators
could discover. To blame the tim e~ and th e age is usually a generic
method of covering <1.n in<1.de!,]urlte kn ow le<4gE' 111 rf'Jation t () th e
(vent that is being analyzed.
Vie may live in a period whm life goes faster than it did in
the sixties, but w e also liv<.: in a period when the piano, with all
its " subtle joys," has a widn a nd morC' powerful grasp on th e
public than was the c:\sC' in those days. Commercial death comes
to-day largely becau se of a failure to adopt methods to changing
conditions, and, no doubt, if this Brooklyn f'Vf' nt were carefu ll y
analyzed, something of thi~ would be found behind it.
\ Vhile thi s one failure arou sed th e interest of the \few York
Eewspapers, there have been, within the past fevv weeks, a number
of anniversary celebrations by de:\] er s whu sell pianos. These have
ranged through the thirtieth, forti eth and Ul-' to the seventieth year,
and everyone of these hou se'S is to-day greater, bigger a nd
better than it has been at any time in it s history, long as it
may be.
The failure of one piano merchant c1 0C3 not mean that the piano
is suffering in competition with the other pleas ures of the times and
it becomes in significant as an index of conditions when it is taken
in relation to thousands of those dea lers who to-day are flouri shing
like the traditional green bay tree .
The fact that the Music Indu stries Chamoer of Commerce took
this matter up immediately w ith the va riou s n ewspapers is a matter
for congratulation. Experience ha::. proven that stories inimical to
the industry are written not from malice but from ignorance of
the facts.
:--JOVEMBER
17, 1923
THE
MUSIC
TRADE
REVIEW
5
Finding the Salesman's Real Value
The Man With the Large Volume of Sales Is Not Always as Profitable to the House as the Man With a
Smaller Volume but Who Concentrates on Making Better and More Profitable Sales-One Mer­
chant's Method of Seeing That the Latter Type Receives His Proper Reward

The salesman who has to his credit the great­
est gross volume of sales is not always the most
profitable salesman to the house. This, at first
glance, may seem somewhat of a paradox, but
a little analysis will soon show the truth of it.
There are two salesmen employed in certain
retail piano warerooms, one of whom will aver­
age yearly 20 per cent more gross business than
the other. Yet the second man is the more
profitable member of the selling organization.,
and the reason for this is not far to seek once
comparative statements of the business done
by each of them are laid side by side.
The first man is one of those salesmen com­
mon enough in the trade who seem to consider
the maximum period of time and the mlnlmUm
down payment the proper terms on whieh to
make a sale. Almost invariably his contracts
are made upon this basis, with the result that
all of his sales are expensive for the house to
handle.
The Cash Getter
The second salesman is the type who is
known as a cash getter. His down payments
ave rage 40 to 50 per cent higher than those of
the first man, and the average time for which
h.is contracts are written ranges from 10 to 15
per cent lower. Furthermore, the second sales­
man seeks to concentrate on pianos and players
on which the house makes the great cst margin
of profit, devoting most of his time to this
type of goods. He makes fewer sales than the
first man and his volume, as has been pointed
. out previously, is not as great. But the .mer­
chant who employs both of them states that
the net profit made on his business is from' 5
to S per cent greater.
This is sufficient to show that gross volume
of business is not th e sole criterion by which
to judge a salesman' s value. And this is more
emphatically so when conditions are as they
,lre in the retail piano business. The average
duration of sales contracts and average. down
paymen's here are factors of considerable im­
portance and their effect permeates the entire
situation.
One Merchant's Plan
How can a merchant know the individual
value of his salesmen? :\ plan that is used by
one de,lIer has proved highly successful in ob­
taining this information. He has worked upon
a series of points which are given for each sale
on somewhat the following system: If 8 sales­
man sells a player-piano at $700 on thirty
months' time and 10 per cent down, which are
the out~ide terms of this house, he receives the
followinv score: Seven points for the gross
value of the sale, one being awarded for each
$100; no points for time and none for the down
payment. If the salesman were to make this
same sale on tw.enty months' time and receive
" down payment of 20 per cent, the score would
be as follows: Seven points for the gross vol­
ume; ten points for the ten months cut off the
maximum terms of the house and ten points for
the increase in the down payment. In other
words, a point is given for each month cut
from the maximum terms of the house and one
point for each increase of 1 per cent in the
cash payment on the contract. On these two
sales the salesman with the first would be
awarded seven points, while the salesman who
made the second sale would receive twenty­
seven
The awarded points for cutting down the
maximum terms and for increasing the down
payments may seem disproportionate to those
who are awarded for the gross value of the
sale, but the dealer who uses the system states
that this apparent disproportion has 'been made
deliberately in order that stress might be placed
upon the two factors which he considers most
important.
"For instance," he said, in discussing this
matter: "Twenty months' time with a 20 per
cent down payment permits me to discount that
paper at the best rate possible and to allow
me to make a profit by the use of the money
received above the cost of obtaining it. On
the other hand, I have to carry thirty months'
paper myself and this capital is not available
for use in my business. I have always found
that the secret of success in piano selling is
short terms and large down payments, and that
the greatest difficulty in obtaining these is the
tendency the average salesman has to follow
the paths of least resistance and start with the
maximum terms of the house. If on the other
hand, there is some encouragement for him to
endeavor to lower these and to raise the down
payments this is reflected in the profit on his
sales and also in my profit. But it is quite
impossible to bring this about unless an induce­
ment is offered to the salesman to do it. To
do away with the complexities of bookkeeping
that arise from totaling the various ra~ifica­
tions of each sale, I have used this point sys­
tem which, though it is entirely arbitrary, gives
a very clear picture of the results which the
salesman achieves.
The Contest Idea
"When I first began it I used it as a basi s
for a yearly contest among the men, but I soon
found that this was not nearly so good as it
lllight seem at first glance. A contest is all
very well for the first two or three months,
but after that one or two men usually secure
quite a lead on their competitors and the lat­
ter's interest dies out a$ they come to consider
themselves entirely out of it. This to a great
extent defeated the very end for which I was
aiming. So after the first year I informed the
men that hereafter the contest would be done
away with and that the points scored for large
down payments and short terms would be cred­
ited towards a bonus system based on the com­
missions earned on the gross volume of sales for
each individual salesman during the year.
Compensation for Better Terms
"In other ",vords, my men are paid on th e
following basis: A certain commission on their
gross volume of business, plus a bonus every
three months based on the number of points
they score. As gross volume also counts in
these points to a certain extent, it is necessary
for a man to obtain his full income to make
as many sales as he can; but as terms and down
payments count to a much greater degree, he is
always forced to make them on the best basis
it is possible to ~ecure. Since I first began this
system I have found that my average terms on
outstanding leases have diminished by a very
apparent percentage, that my cash intake has
shown a good increase and that my past due in
the collection department has run lower than
it had ever been during the previous twenty
years I have been in business."
As pointed out by this merchant, this system
has all these advantages, but what he did not
lay particular emphasis on and what is one
of it; gr'eatest advantages is that it presents a
clear picture of each salesman's activities at all
times. The star who has the big volume can
no longer consider himself the cock of the ware·
rooms as he is so often prone to do. The sales­
man who makes each sale on the basis of the
best terms and the largest down payment that
he can has an equal chance with him or even
an advantage over him, due to the fact that
these sales in the long run are much more
profitable to the house.
The system outlined above may not be ap­
plicable to all warerooms, but, unquestionably,
it is only fair that the salesman who obtains
good short terms and large down payments
should be given credit not only in appreciation
but for their effect upon his annual income. The
latter is the type of man who is always working
for the house, as well as for himself; while the
former is too often the type that forgets team
play entirely in working for an individual rec­
ord. Such men are not the "stars" that they
think themselves or that a good many retail
music merchants seem to think them.
PROMOTION FOR FRANCIS X. REGAN
Former Sales Manager of Homer L. Kitt Co.,
Washington, D. C., Elected Secretary and
Treasurer of That Company
WASHINGTON, D. C, November 13.-Members of
the music trade in Washington are congratulat­
ing Francis X. Regan, former sales manager of
the Homer L. Kitt Co., 1330 G street, North­
west, on his election into the firm as secretary
and treasurer of the Kitt organization.
Mr. Regan's wide experience in the business
ably fits him for his new position. He was
Francis X. Regan
first introduced to the piano busi ness in Hous­
ton, Tex., where he was associated with his
uncle, the well-known "Judge" W . A. Hogan,
as manager at the store of Thomas Goggan
& Bros. From Texas he came East and joined
the sales force of the former Knabe warerooms
in Washington, then under the ownership of
J. H. Williams. When the Knabe warerooms
were taken over by the present owner, Homer
L. Kitt, some years ago, Mr. Regan took up
work with the new organization as sales man­
ager, a position which he has since retained.
Since the firm changed hands it has been
greatly enlarged, now occupying the entire four­
story building at 1330 G street. Knabe, Fisher
and Franklin Ampicos are carried, and a large
sheet music and music roll department has been
installed. A complete line of Victor talkmg
machines and records and Conn band instru­
ments are stocked. The company has, in addi­
tion, sought to promote better music in Wash­
ington by running a series of free public con­
certs each Winter, at which performances by
local artists with the Ampico are given.

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