Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
REVIEW
MAY
2, 1925
Effect of Trade-ins on Net Profit—(Continued from page 5) Piano Trade Employment
Maintaining Good Average
big thing in the eyes of every salesman is the has always been the inherent fault in all those
ultimate sale. That is the basis of his income.
Confronted with a sale wherein a trade-in is
involved, it is perfectly natural that he will
endeavor to get the highest figure possible for
the prospect in order to safeguard the possi-
bility of making the sale. The salesman
naturally is not to be blamed for this state of
mind. Even when he is controlled by the
house, it is usually finally upon his figure that
the allowance is made since the manager has
no control over the facts and tends to accept
his unsupported statement. The tendency with
such houses is inevitably to set allowances at
a higher figure than the resale price of the in-
strument warrants.
When the Manager Controls
The system used by most houses, that of the
manager setting the allowance figure on the
basis of a report made by the salesman re-
garding the condition, age and make of the
instrument, also has a tendency in the same
direction. The salesman is naturally optimistic.
Secondly, he is interested. Thirdly, he in
many cases, and a good many more than is
generally thought, has neither sufficient knowl-
edge nor ability to judge adequately the cost
of the materials and labor that will be necessary
to put the old instrument in a proper condi-
tion for re-sale. As a result the house usually
sets the allowance on inadequate knowledge
and makes a mistake to its own disadvantage.
The only real guide it has is the age of the
instrument, which in most cases can be checked,
but that guide is entirely too inflexible, since
two instruments of the same name and age
may have entirely different re-sale values. This
plans which have proposed trade-in schedules
based primarily on age. An inflexible plan
such as this leads to many sales unnecessarily
lost and is inadequate to meet the situation.
The Appraiser
A few retail piano merchants have worked
out what they consider an adequate plan which
solves the question of setting allowances in
the proper manner, on a basis that is fair to
the house, the salesman and the customer, or
in other words to the three interested parties.
This is to appraise the instrument offered as
a trade-in by a person other than the salesman
and in the employ of the house, who has suf-
ficient knowledge to estimate upon the re-
quired work to put the instrument in re-sale
condition and who is familiar enough with
pianos to know values. Those who use this
plan have found that it works thoroughly well
and that it operates to keep allowances to a
proper ratio with the ultimate price which may
be expected for the instrument.
The Nub of the Situation
The control of the allowance is the nub of
the trade-in problem. Right there it is decided
whether or not the house is going to make a
profit on its trade-ins or whether it is going
to make a loss. The house, the management
of which does not hold that power completely
within its hands, is almost without exception
in the latter class. The Review's survey has
shown that completely and beyond the shadow
of a doubt. Making an allowance is exactly
the same as paying actual cash out and should
be surrounded, in every case, with similar safe-
guards.
J. G. Phelps Opens Own
Music Store in Dallas
Crawford, soprano, Miss Manna Louise Sauter,
pianist, A. A. DeMoud, 'cello, Miss Florabelle
Nevitt, violin, Miss Katherine Thacher, pianist
and the Packard reproducing grand.
Special visitors for the opening of the beauti-
ful new store were Alexis A. Mahan, sales
manager of the Packard Piano Co., Fort
Wayne, Ind., and Elmon Armstrong, general
representative of the H. P. Johnson Piano Co.,
Bellevue, 111.
In Mr. Phelps' new store the Packard piano
has a special department of its own where a
Veteran Music Man of Texas and Southwest
Has Very Attractive Retail Establishment on
Main Street, Dallas
DALLAS, TEX., April 22.—J. C. Phelps, promi-
nent in the music trade of Texas and the South-
west, and who, for over twenty years, was gen-
eral manager of one of the largest piano houses
Employment Situation in Factories During
March Approximately That Which Prevailed
During the Preceding Month
WASHINGTON, D. C, April 28.—Employment in
the piano and organ industry fell ofT slightly
in March, there being four-tenths of one per
cent fewer persons at work than in the preced-
ing month, according to figures compiled by the
Bureau of Labor Statistics. The aggregate pay
roll, however, was two per cent greater than
in February.
Reports from thirty-nine establishments show
7,925 persons employed in March, against 7,960
in February, while the aggregate payroll for
one week was $229,609 as compared with $225,-
170. As compared with March, 1924, however,
employment was 8.3 per cent lower and pay-
rolls 7.6 per cent lower in March of this year.
Per capita earnings of workers in the industry
in March, 1925, were 2.4 per cent greater than
in February, but seven-tenths of one per cent
below those of March, 1924.
Instalment Sales Attack
Based on Fallacies
(Continued from page 3)
cash down payments than ever before. If the
average person buying a piano upon instal-'
ments is able to do this, what becomes of the
charge that he is abusing the system, buying
beyond his means, and endangering his financial
stability?
The more closely the attacks on instalment
selling are examined, the more fallacious they
appear. What the object behind them is can-
not be discovered. But the campaign has been
entirely too well conducted not to indicate that
it is a well-organized drive with a definite aim
in view. Those whose businesses are built up on
the instalment basis, such as are the music in-
dustries, must take some means to counteract
this publicity and to show the necessity of their
means of merchandising. It is a subject that is
entirely worthy of the Music Industries Cham-
ber of Commerce, which is charged with the
protection of the industries' vital interests. The
campaign as yet has not done its work; but it
will succeed in accomplishing it, if it be left
unrefuted and allowed to go its own way.
Hardmans in Atlanta
A special shipment of Hardman pianos was
recently sent by Hardman, Peck & Co., New
Vork, to the Carder Piano Co., their represen-
tative in Atlanta, Ga., for the use of artists
of the Metropolitan Opera Co. during their
stay in that city. The pianos were sent direct
to the Carder piano warerooms and distributed
to the Metropolitan stars from that point. The
operas being presented by the opera company
in Atlanta this year include "Gioconda," "Fal-
staff," "La Juive," "Lohengrin," "Mefistofele,"
"Tales of Hoffman," and "La Tosca." A heavy
advance sale was reported.
New Store of J. C. Phelps in Dallas, Tex.
in the Southwest, recently celebrated the open- complete line of grand, upright, player and re-
ing of his own new store in this city—a fitting producer models is well displayed in the beauti-
mark of the progress he has made in the four ful rooms. Mr. Phelps also handles Behr Bros.,
years he has been in business for himself.
Stieff and Julius Bauer pianos.
On April 6, 1925, the official opening of his
The accompanying photograph shows Mr.
new warerooms at 1907 Main street, brought Phelps, his sales force and the out-of-town
hundreds of visitors to witness the realization visitors attending the event. They are, left to
of a unique idea which Mr. Phelps brought right, Herbert Phelps, Miss Edna Bradley, A.
about by his own efforts, the combination of his R. Southerland, Elmon Armstrong, Bellevue,
own handsome piano showrooms, the Sartor III., Alexis A. Mahan, Fort Wayne, Ind., C. J.
Galleries, Inc,, and a new institution for Dallas Seiman, Pete Crawford, J. D. Sartor, J. C.
known as the Associated Arts and Crafts Cen- Phelps, and S. P. Morton. Otto Eyles, one of
ter.
the go-getters of the Phelps sales force, was
A musical program was offered by Hedley absent at the time the picture reproduced here
Cooper, violinist, Miss Elizabeth Frier«on was taken.
New Quarters in Salina
SALINA, KAN., April 18.—A new location for the
piano department of the Chappell Music Co.'s
store here has been chosen recently and will be
over the Wiegner Shop. J. F. Chappell, of the
company, stated that it is planned to operate
the phonograph and radio department separate
from the piano division in the future, and a new
home for the former is being selected. The
piano warerooms, which are being remodeled,
will be ready for occupancy about June 1.
Consult the Universal Want Directory of
The Review. In it advertisements are inserted
free of charge for men who desire positions.