Music Trade Review

Issue: 1925 Vol. 80 N. 21

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
However, let me repeat, the future success of
the music industry in Texas or in any other
State is going to depend upon the efforts made
to foster the study of music through advertis-
ing, music memory contests and in various other
ways. Remember that the music teachers, by
their influence in creating a greater apprecia-
tion of music, are selling our pianos for us.
They stimulate the natural desire for music
that is born in all of us.
A Piano-Playing Contest
Far better than music memory contests,
which are wondrously beneficial, would be a
national competition in piano-playing, with re-
cital contests to be held in every town and city
for children from eight years and up, and na-
tional prizes to be awarded by the President
of the United States to the pupils and their mu-
sic teachers. On behalf of the Steger & Sons
Piano Mfg. Co., which I have the honor to rep-
resent, I am authorized to announce that it is
willing to donate the sum of $5,000, to be used
in promoting a National Piano Playing Contest
for children and their teachers, to be held under
the supervision of the Music Industries Cham-
ber of Commerce, provided that twenty-five
other piano manufacturers will each contribute
a similar amount in order to make it a success.
Instead of so much price advertising, it would
be better if we gave a thought to music. "Make
America Musical" is the excellent slogan of the
Music Industries Chamber of Commerce, but I
only wish it were more complete. America
needs music. Every American child needs mu-
sic. Let us "Make every American child mu-
sical," but it is going to require more than a
slogan—plenty of hard intensive work to
achieve that lofty purpose, and the first place
to begin is in your newspaper advertising.
The orator who is not sincere will not have
the respect of his audience. The advertiser who
relies upon dishonest publicity will not remain
in business long. There should be no place in
the music industry for a fakir or dishonest ad-
vertising—because that which undermines the
confidence of the public injures the entire trade.
Some years ago, many dealers decided to get
away from price advertising and featured only
quality announcements. The growing pressure
of price advertising, however, forced them to
return to it. But it is my belief that if the en-
tire piano industry would feature only pianos
and music in its advertising and eliminate all
reference to prices for a period of a year the
trade would not only enjoy greater respect on
the part of the public, but be more profitable.
Player-Piano Education
We desire to sell more player-pianos, but in
order to do so we must make it possible for
those who purchase player-pianos to get the
utmost satisfaction from their instruments. In
other words, we must teach our player-piano
customers how to play the player-piano correct-
ly.
Although good work has been done by many
music merchants in that direction there is still
room for improvement. It is quite likely that
not over 50 per cent of all player-piano owners
know how to play with expression. If every
piano salesman would adhere strictly to the rule
of instructing his player customers concerning
the proper method of playing the player-piano,
there is no doubt but that more player-pianos
would be sold, because every such customer
eventually would become an enthusiastic sales-
man. The man who buys a player-piano and
whose only idea in using it is to play it loudly
and monotonously will not make friends for
the industry, and will ultimately become dis-
satisfied. Just a few moments of instruction
might be sufficient to convert him into a dis-
criminating music-lover, whose playing on a
player-piano would be a source of delight to
every one concerned.
Every dealer should have a player-piano
Highest
Quality
MUSIC TRADE
REVIEW
school. For example: Our company has an-
nounced to its retail customers in Chicago that
it is conducting a player-piano school, where
anyone, who desires to learn how to play that
instrument correctly and with expression, may
receive instruction free. There is no better way
for you to keep your salesmen busy giving
service and making friends, and it is sure to
lead to many player-piano prospects and sales.
If you advertise be sure that you believe in
the product you advertise. If you sell, endeavor
to make your customer a satisfied customer, be-
cause then he will be a potential salesman for
your store.
The Reproducing Piano
What is the future of the reproducing piano,
the supreme achievement of the art of piano-
making? When you consider that this is an
electrical age and that the reproducing piano
brings all of the world's greatest artists, the
labor and genius of centuries to the home, when
you reflect on the fact that more than a billion
dollars is spent annually in the United States
for public educational purposes but that, ac-
cording to the Federal Commissioner of Educa-
tion, twenty-two billion are expended yearly for
luxuries, it is not unreasonable to state there
are a million homes that ought to have repro-
ducing pianos to-day and are able to pay a price
of $3,500 or more.
Advertising is selling—and selling is telling
—but in your advertising you must tell the pub-
lic more about the reproducing piano than just
the price. There are many people who would
like to have reproducing pianos, and who can
well afford to pay for them, but who have never
heard them played. It is your work to get them
acquainted with the reproducing piano either
by inviting them into your store or by giving
public concerts.
Your newspaper is your friend and supporter.
It brings your store to the attention of thou-
sands of music-lovers, whenever you advertise
in it. Use it frequently and make every ad-
vertisement generate greater confidence on the
part of the public in your store. Newspaper
advertising is the central power station of com-
merce and industry—little appreciated but con-
stantly active, influential and constructive.
Another powerful ally is your trade journal.
Its purpose is to instruct, encourage and help
the merchant to sell and to obtain greater
profits.
It is only proper that I should make some
acknowledgment of the wonderful work that
has been accomplished for the entire music
trade, by the distinguished and exceptionally
capable president of the Music Industries
Chamber of Commerce, Richard W. Lawrence.
It is most fortunate that the music profession
is honored by leadership so outstanding.
Advertising Is Selling
Advertising is selling and I want you to re-
member me as a salesman from Chicago, the
center of the continent. Chicago is the central
and acknowledged center of all human activity
of North America. Chicago's wholesale and re-
tail establishments lead the world and are an
inspiration to all. Chicago's public parks, boule-
vards and gardens are a joy to behold. Chicago
is always attractive to convention visitors. Hos-
pitality calls you to Chicago. The Chicago As-
sociation of Commerce invites you to hold your
next Texas Music Merchants Convention in the
center of the continent—Chicago.
You recall those beautiful lines of Arthur
O'Shaughnessy, "we are the music makers, and
are the dreamers of dreams." Living in this
glorious land of liberty and opportunity, ruled
by a great and wise President and music-lover,
Calvin Coolidge, protected by the grandest gov-
ernment of all time and enjoying every bless-
ing of a bountiful Providence, let our hearts
exult and find happiness in song, "let music
swell the breeze and freedom ring!"
MAY
23, 1925
Revised List Prices on
Single Face Red Seals
Victor Co. Announces Plan for Clearing Deal-
ers' Shelves of Slow-Moving Single-Faced
Red Seal Records—Material Price Reductions
In order to assist dealers in moving off their
shelves stocks of single-faced Red Seal records
which have remained since the exchange some
time ago when the double-face Red Seal records
were in use, the Victor Co. has announced a
general list price reduction on the single-face
Red Seal selections. Under the new schedule
10-inch Red Seal records, formerly listed at
$1.25, may be sold at 65 cents; records listed at
$2 will be sold at $1.10; records listed at $3.50
will be sold at $1-60, etc.
In taking care of dealers in the downward
revision of prices the Victor Co. has arranged
a plan whereby the dealer is credited with
$37.50 for every hundred dollars' worth of
single-face Red Seal records at present in stock
at list prices prevailing in July, 1923. This
credit is to be applied to Victrola purchases.
It is believed that the plan will serve to clear
the shelves of slow-moving stock and free the
trade of a burden that has prevailed since the
last Red Seal exchange. The plan was adopted
with the idea that it would be much more suc-
cessful than another straight exchange which
would be simply a record replacement proposi-
tion and call for the destruction of old records
valued at many thousands of dollars.
Springfield Plate Men
Aid in College Fund Drive
A. L. Kelly and Carl Ultes, of the O. S. Kelly
Co., Among Chief Workers in Raising $450,000
for Wittenburg College
SPRINGFIELD, O., May 18.—A. L. Kelly and Carl
Ultes, both of the O. S. Kelly Co., this city,
well-known piano plate manufacturers, were
among the most active factors in a recent suc-
cessful drive to raise $450,000 for Wittenburg
College, their Alma Mater, thereby securing an
additional $230,000 from the Rockefeller Educa-
tional Fund.
Aside from their natural loyalty to their Alma
Mater, both Mr. Kelly and Mr. Ultes, the latter
of whom is also a graduate of the Law De-
partment of the University of Michigan, realized
the importance of the O. S. Kelly Co., and other
Springfield enterprises, as an educational factor
with respect to their own employes.
Wittenburg has a very good science course,
and consequently all of its many promising
young men with a good technical education be-
come valuable among manufacturing enter-
prises, like the Kelly piano plant, for example.
McDowell & Gastator Buy
Music Store in Enid, Okla.
Store Just Acquired Will Make the Fourth in
a Chain Now Being Conducted by Concern
With Headquarters in Ponca City
PONCA CITY, OKLA., May 16.—The McDowell &
Castator Music Co. of this city has purchased
the business of the Cantrell-North Music Co.,
of Enid, Okla., which will make the fourth of a
chain of stores conducted by the company in
Pauhuska, Ponca City and Blackwell.
The building in Enid was completely re-
modeled and the company will use three floors
for its business. The store will be in direct
charge of Mr. Castator, and in addition to
pianos and other musical instruments, Bruns-
wick and Columbia phonographs are carried.
Highest
Quality
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
MAY
23, 1925
THE MUSIC TRADE
REVIEW
The Trade-in and Its Effect on the
Net Profit of Piano Dealers
The Fifth of a Series of Articles Based on an Exhaustive Survey Recently Concluded by The Music Trade
Review of the Part Which the Trade-in Plays on the Net Profit of the Retail Piano Merchant
Together With a Study of the Methods Which Will Remedy Its Evil Effects
H E trade-in is an element of competition
in the retail piano trade which plays a
very large part. Retail piano houses
which are conducted apparently on a strictly
one-price basis sometimes forget this policy
entirely in the heat of competition on a sale
involving a trade-in, meeting competitors'
figures in the amount of the valuation on the
used instrument, and in this way making even-
tual price concessions to the customer. As a
matter of fact the chief evil of the entire trade-
in problem takes its source right here, for most
sales with trade-ins, where a loss eventually
occurs, are due to this competitive struggle,
which means, in a majority of cases, that the
prospective customer profits and that the deal-
er who receives the contract loses.
There are many houses in the field who make
it a policy to set a valuation on a used piano
strictly in accordance with its inherent value
and who prefer to lose a sale rather than de-
part from that basis. In a majority of cases
these are the houses which show an eventual
profit on their trade-ins, for they have not per-
mitted themselves to be deceived by an impos-
ing figure of the gross volume of business with
T
PIANO DEALERS R&PORTING 100%
COLD SALE MORE DIFFICULT- 3 9 . 1 -f o
TRADEr-IN 5ALE- MORE- DIFFICULT- 51.
PQUAL DIFFICULTY-9 Ho
Relative Difficulty of Cold Sales and Trade-in
Sales
disregard of ultimate net profit. It is an old
saying in the retail piano trade that at times
the sale the dealer does not make is more prof-
itable than the sale he does make, and nowhere
else than in relation to the trade-in is the truth
of this adage more apparent.
As a matter of fact not so many sales are
lost through undue inflation of trade-in allow-
ances on the part of competitors as it might
be thought. If the salesman has permitted the
sale to be based entirely on the factor of price
and has disregarded all other elements in it,
this would happen generally, but fortunately the
good salesman, and there are many of them in
the retail piano trade, sells on other bases be-
sides this particular one. If he sells the instru-
ment he carries as it should be sold, if he places
in the light every merit that it possesses, the
trade-in allowance can be made to assume a
secondary importance in the customer's ulti-
mate decision. That, of course, requires sales-
manship and naturally makes the sale more
difficult to close; but a sale without a profit is
worth nothing to the house that accepts it and,
in the long run, to the salesman who makes it.
Net profit is the goal that is aimed at, not mere
volume of sales.
Any consideration of the trade-in as a com-
petitive factor must necessarily begin with a
study of the relative difficulty of a cold sale of
a new instrument and one in which a trade-in
is involved. At first glance it might seem that
the latter is far the easier, since such a prospect
is already sold on the idea of the instrument
itself. According to The Review's survey on
which this series of articles is based, such is not,
however, the case. The opinion among the
dealers who reported calls the most difficult
PIANO Dr?ALE-RS REPORTING 100%
' mw//////////////////////////////, III ill
MANY SALE'S LOST- 4 5 . 5 <#>
FEW SALES LOST-
in
ZQAlo
NO 5AL&5 LOST-34 1 °fo
W////M/H/A,
The Inflated Allowance and Its Importance in
Competition
sale the sale with the trade-in, as is shown in
the following table, a summary of these dealers'
opinions:
Cold sale most difficult
Trade-in sale most difficult
Both types equally difficult
39.1%
51.2%
9.7%
According to this table approximately 12 per
cent of the retail piano merchants reporting
consider the sale involving a trade-in the more
difficult of the two types to close. This is prob-
ably largely due to the question of the allow-
ance and to the competitive fight which follows
in its train.
How many sales are lost because of competi-
tive inflation of trade-in allowances beyond the
real value of the used instrument involved in
ihe sale? Figures compiled by The Review in
its survey on this point appear in the following
table:
Many sales lost
Few sales lost
No sales lost
45.5%
20.4%
34.1%
In other words 54.5 per cent of the retail
piano merchants reporting consider that sales
lost through trade-in valuations are a relatively
unimportant number of the gross total of sales
made. The question here is evidently one of
salesmanship. A study of the reports of those
PIANO DE-ALtRS REPORTING 100%
INCREASE- VALUATIONS- 11.9%
DO NOT INCREASE: VALUATIONS - 4 7 (ofo
RARELY INCREASE- VALUATIONS - 4 0 5 #>
////////,.
Percentages of Dealers' Methods in Meeting In-
flated Allowances
merchants who state that they lose a good
many sales because of this factor shows that
in a majority of cases they are the type who
have not as yet thoroughly organized their busi-
nesses, and hence have not their selling organ-
izations going at full efficiency. A good selling
organization it would appear loses few sales be-
cause of this factor; a poor selling organization,
on the contrary, suffers considerably.
A small percentage of the dealers reporting
losing many sales* because of inflated trade-in
allowances stated that this condition was tem-
porary. One dealer in particular stated that in
his territory business was not good and that,
as a result, sales were difficult to close. He
went on to say that several dealers, in an effort
to sell pianos, were raising considerably the
amount of the trade-in valuations they were
offering prospects and that this, naturally, was
reflected in his own sales. Evidently these deal-
ers in an effort to stimulate sales are using the
trade-in as a means of hidden price-cutting, a
departure from the one-price system which was
mentioned earlier in this article. This is in line
with the lengthening of terms and with the
prevalence of "bait" advertising which has been
noticeable in the retail piano trade during the
past several months. The dealer in question
stated that he intended to stick to his own
policy of establishing trade-in valuations on the
basis of the intrinsic worth of the instruments
offered as such, as he felt that pianos he had in
stock were worth more to him on his wareroom
floors than were they placed out at a reduced
price which would compel him to sacrifice his
net profit on their sale. Several other dealers
reporting outlined the same conditions.
Competition involving inflation of trade-in
PIANO DEAlfrRS REPORTING lOOfo
'/i
PROFITABLE TO INCREASE- VALUATIONS ~ 3 UNPROFITABLE- TO INCREASE VALUATIONS - 6 4 %
The Results of Meeting Competition Based on
Inflated Allowances
values is met in various ways. It is good to see
from the following table that most retail piano
merchants have adopted the policy of not meet-
ing the figure offered by a competitor and that
a smaller group do it only in exceptional cases.
The Review's survey on this topic shows the
following results:
Increase valuations
Do not increase valuations
Rarely increase valuations
11.9%
47.6%
40.5%
It must be admitted that there is nothing
conclusive about these particular figures, as in
many retail houses, each individual case is con-
sidered on its own particular merits. Yet un-
questionably from the reports returned to The
Review, a big majority of retail piano mer-
chants consider increasing valuations in the
face of competition a bad business policy. That
they indulge in it occasionally is true; but it is
equally true that those who make it a regular
policy are in a small minority of those who re-
plied to The Review's questionnaire.
Increasing valuations on trade-ins in a com-
petitive fight for a sale means simply that two
dealers are bidding one against the other for
the purchase of a used piano. Such a policy
puts the prospective customer in a most ad-
vantageous position and naturally he uses it to
the fullest extent. A dealer who refuses to meet
a competitive bid, on the other hand, retains
the advantage of not diminishing the value of
the instrument which he is offering. This he
may consider small compensation, but properly
used by a good salesman it can be made to do
(Continued on page 9)

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