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THE
MARCH 28, 1925
MUSIC TRADE
REVIEW
The Question of Restricted Territory
Its Application to the Question of National Distribution of the Player-piano—Restrictions Carrying With
Them Definite Sales Quotas Lead to Mutual Responsibility on the Part of
Both Manufacturer and Dealer—The Weakest Link in Selling
N a recent article Tlic Review stated that,
scattered all .over a vast extent of country it is
in its opinion, the practice of granting ex-
to be expected that a goodly number of these
clusive territorial rights to a dealer without
will not possess high selling talents. The natu-
exacting the condition of a quota of sales pro-
ral result will be poor distribution.
portioned to the importance and fertility of the
All of which leads to the conclusion that, in
territory is in essence wrong and should be dis- the case of the player-piano, large-scale dis-
continued.
tribution cannot be achieved at any reasonable
It would be difficult to name a state of af- margin of net profit, unless and until the retail
end of the chain has been very much strength-
fairs in any industry less fruitful of results than
ened. It is more and more becoming apparent
this which we have so come to take for granted
that manufacturers must supply a great deal of
in the music trades—the state of affairs, that is
the sales energy if they wish to achieve large-
to say, whereby a dealer is permitted to claim
sole right to the profits upon a line of instru- scale distribution, simply because the rank and
file of the dealers cannot be relied on to supply
ments within a definite territory, while he is not
this for themselves. On the other hand, it is
required to guarantee as a condition precedent
equally certain that the practice of allotting ex-
that any certain number or total amount of
sales shall be made in that territory. To say to clusive territory unconditionally involves a con-
a man: "take this territory," without also say- fession of weakness in itself, and indicates that
ing: "this territory is valuable enough for us manufacturers have not yet come generally to
see either that their output has a sales value
to insist that you guarantee certain results from
it, to wit, thus and so," is to conclude a one- commensurate with the trouble of producing it,
sided bargain, which never helps either party or that retail selling can be reformed and put
to it. This should seem to be elementary and upon a basis of self-reliance and strength com-
obvious; yet it appears not generally to be so parable with the conditions which exist in other
considered in our industry, since the practice and better-organized lines.
of manufacturers in dealing with retailers has
Plenty of Sales Power
constantly violated the principle it involves.
It all comes to the final question whether the
From Kettles to Kettle-Drums
player-piano and its attendant music-roll pos-
If the object of business is profit, then the sess of themselves a sales power which can
means of business arc sales. It has been said, carry them into the homes of America, even if
the retail sales work is weak. That question
and quite truly, that a dealer cares little or
may be answered by saying that whenever
nothing in most cases about merchandise, but
a very great deal about sales; so that he would manufacturers deliberately set out to control
usually as soon sell one thing as another, see- retail methods and policies they find their sales
ing that it is the sales, and not the particular increase in proportion with their efforts. That
is the history of the Gulbransen, of the Ampico
properties of the thing sold, which bring him
to his objective, which is profit. This, of course, and of other sales policies. The player-piano
is true; but it is also true that a retail dealer in any of its forms has plenty of sales appeal
cannot jump from soap to silks or from kettles and plenty of sales power; it only remains to
to kettle-drums every twenty-four hours. The make use of these after some systematic and
technique of selling is sufficiently varied to re- definite fashion.
quire for each line a certain training, and a man
It is probable that the ideal of linking up the
who once begins to sell a certain kind of arti- grant of territorial rights with insistence upon
cle usually finds it best to continue selling it. a quota of sales cannot be realized until manu-
Our piano merchant then may be depended up- facturers and dealers have drawn much more
on in most cases to continue to want to sell closely together in respect of selling methods.
pianos and player-pianos; and it is therefore At present, it is up to the dealer to say, not
up to manufacturers to tell him without hesita- without justice, that when an expensive article
tion when he is wrong in his conception of his like the player-piano is loaded on to him he
position in the sales chain; and what to do must either obtain from the manufacturer some
about his error.
adequate assistance in selling it, or else must be
left to work out his own salvation in his own
Our Weak Link
For, whatever may be the case in other in- way. That is to say, he must either be left
alone entirely, in which case he can be under
dustries, it is certain that in ours the retailer
furnishes the weakest link of the sales chain. no obligation to deliver any definite quantity of
This is not due only, or perhaps even chiefly, sales; or, if he is to be so obligated as to sales,
to any mental defect on the retailer's part. It the manufacturer must adequately and system-
is rather due to the simple fact that selling atically co-operate with him.
pianos and player-pianos is selling articles
Quarrels Help None
which call for the exercise of considerable sales-
As things stand in the piano business, the
manship talent; while on the other hand sales- manufacturer has to depend upon the dealer for
manship talent is not a common one. When
his distribution; and consequently it is useless
we find dealers at one and the same time con- for the two parties to the necessary agreement
tent to take exclusive territory, and unwilling to quarrel with each other. Neither gains from
to guarantee any definite quota of sales from
exchanges of arguments about which one is to
such territory, we simply uncover a fundamen- blame for small and inadequate distribution.
tal fact in the sales problem of our industry. Each may confess truly that he has something
That is, that to sell any sort of goods on a
to learn and with equal truth assert that he has
nation-wide basis is difficult, in proportion as
something to teach.
the sale demands selling talent.
The key to it all is a better recognition of
Now to sell player-pianos does demand sell- the fact that the interests of manufacturers and
ing talent, and this in no small degree. When, dealers in the piano field are essentially identi-
cal. Still more should this be recognized when
therefore, distribution depends upon dealers
I
Highest
Quality
T
ONKRENCH
dealing with the greater complexity of the play-
er-piano. Identity of interest leads to identity
of method, when the identity has been recog-
nized by those whom it affects, and this simply
means that the manufacturer in our industry
must do more to help the dealer sell, and the
dealer must accept the responsibility of quota
when he takes the privilege of territory.
The Ultimate Responsibility
Finally, of course, everything is up to the
manufacturer, from whom must come the posi-
tive action which will lead to every retail store
drawing its inspiration in selling methods from
the makers of the things which are sold. When
every manufacturer not only has something to
sell at wholesale but can show his dealers how
to sell at retail, then the player business will
come into its own.
Brunswick Go. Announces
New Record Exchange Plan
Suggests That Dealers Allow Credit on Return
of Old Records of Standard Make Providing
the Customer Buys Four New Brunswicks
The Brunswick-Balke-Collender Co. has an-
nounced to dealers in Brunswick records a new
plan for increasing record sales through the
exchange of old records on the part of cus-
tomers. Under the plan it is suggested that
dealers accept from customers Victor, Vocalion
and Brunswick records, granting a credit of
seventy-five cents for each four records of
those makes returned provided the customer
applies that credit to the purchase of four new
Brunswick records. The list price of the re-
turned records has no bearing on the maxi-
mum allowance of seventy-five cents for four.
The Brunswick Co. states that the plan was
tried out successfully by the Aeolian Co. last
year and stimulated record demand materially.
In supporting the dealers in carrying out the
plan the Brunswick Co. agrees to credit the
dealer with the wholesale price of the 75c
records for every four old records returned,
provided an order is given to the wholesale
branch for a number of records corresponding
to those returned.
One of the features of the plan is that it
serves to move out of record cabinets old
records that have lost their interest for the
customer and are seldom used, thus leaving
room for the installation of new records bought
at list prices and with profit for the dealer.
Russell & Rigg Expand
ALTOONA, PA., March 23.—Additional space has
been acquired recently by the music store of
Russell & Rigg, at 1006 Chestnut avenue, which
has been extensively remodeled. In the future
the basement will be utilized for the display
and demonstration of phonographs and radio
sets. Access to the basement has been made
possible by a stairway from the first floor.
A petition of involuntary bankruptcy has been
filed in New York against the Fishew & Wald-
man Music Stores, Inc., operating at 312 West
145th street. The petition was signed by a num-
ber of phonograph and cabinet manufacturers.
Highest
Quality