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THE
MUSIC TRADE
REVIEW
OCTOUKK .*>,
Music Dealers' Instalment Sales and Their Collection Problems—(Continued from page 3)
January. In February there is a decline in col-
lections, to rise again in March, but not as high
as in January. There is another upward trend
in May, after the April decline. The upward
May tendency is absent in the case of instal-
ment collections. The instalment collections
show more or less consistent depression during
the Summer months. The regular charge ac-
count collections do not begin the Summer
slump until June and July. Both the charge
and instalment collections reach the Fall peak
in October, growing several points to Novem-
ber. In 1923 the peak was reached in January,
while in 1924 December collections slumped
somewhat. On the other hand, during the same
year the instalment collections slumped in
November and reached the high point in Decem-
ber.
Now compare the collections of the music
store with those reported by the sixteen retail
stores in the same city. You will notice a
remarkabe similarity of trend. January is a big
collection month for all retail stores, including
the music store. February, March and April are
the low months for the sixteen retail stores,
but March is a uniformly high month for
the music store's collections. May is a good
collection month for all types of stores, and so
is July. August sees a depression everywhere;
it is the vacation month. September marks the
beginning of the Fall rise, and October is the
high month for all stores, both the retail and
music stores. However, in December there is
less uniformity. The sixteen retail stores main-
tain similar collection turnover in January and
December. The music store reports December
collections anywhere from 4 to 13 points.
Music Collections Compared With Other Stores
Study of the collection percentages reported
by the sixteen Denver retail stores reveals the
the following: The six department stores re-
port an average monthly collection of 39.17 per
cent. The music store's monthly average during
1923 was 40.6 per cent during 1924, an average
of 38.9 per cent. The five clothing stores re-
ported a monthly average of 44.1 per cent,
while the ready-to-wear store reported a
monthly average of 44 per cent. Two shoe
stores reported a monthly average of 52.25 per
cent, and the jewelry store, 60.22 per cent. Thus,
you see, the music store's charge account col-
lections rank pretty close to the department
store collections. The reason for the high aver-
age in case of the shoe stores is self-evident:
the comparatively small amounts charged on
shoe purchases and the lack of repeat business,
as compared with other classes of stores. The
jewelry store reports the highest collection per-
centages, because all of its business is done on
the thirty-day and cash basis, the less desirable
jewelry customers purchasing at the regular in-
stalment houses. In the case of the music house,
its charge business on the thirty-day basis is
only a small percentage, as compared to the
long-time instalment payments.
Music Instalment Collections
Note the monthly collections of instalment
sales. The average reported by this music house
is 6.9 per cent a month. This is representative
of long-time payments characteristic of music
instalment sales. The writer has had access to
figures on instalment sale collections reported
by furniture instalment houses, these showing
higher averages than that reported by this music
house. But they forget to mention that their
terms are much shorter than those extended by
the music house. Furthermore, they are in the
habit of figuring cash received on conditional
sales, while this music house never takes into
consideration conditional sales when computing
the collection turnover.
There is only one basis for estimating
whether you are getting the right sort of collec-
tions on instalment sales, and that is to take
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into consideration the terms of sale. Thus, if
an account runs twelve months, you can readily
see that the monthly payment of the account
will be 8.33 per cent of the total amount; if it
runs only six months, the monthly collection
will be 16.66 per cent. But, of course, some
people will not pay on time, delaying payments
one or more months, while others will pay up
their accounts ahead of time.
H. O. Wrenn, credit manager of the Union
Outfitting Co., of Omaha, Neb., an instalment
house, is a good authority on this subject. Mr.
Wrenn is a director of the Retail Credit Men's
National Association, and his concern sells
radios and other musical instruments on the in-
stalment basis. Recently Mr. Wrenn gave the
writer the following table of collection expecta-
tions on instalment accounts:
Collections Vary With Instalment Terms
On instalment accounts running between five
and six months, Mr. Wrenn said, you can expect
between 22 per cent and 26 per cent monthly
collections.
On straight six months' accounts you can ex-
pect 25 per cent.
On instalment accounts running one year, an-
ticipate 12 per cent.
On instalment accounts running a year and ;i
half, expect between 9 per cent and 10 per cent.
On instalment accounts running over the year
and a half period, expect 8 per cent collections.
The writer has had the opportunity to study
the collection figures of many retail stores and
he has come to conclude these two important
principles:
1. If you concentrate on collections before the
Summer you will not only increase your collec-
tions then, but the Summer collections will also
show an increase.
2. A newly established retail store is apt to
report higher collection percentages, because
new customers are generally prompt with their
payments. But as the store grows old'jr, and it
has on its books customers who have dealt with
it for some time, the tendency will be for lower
collections. The old customer is the one who
takes every advantage to delay payment, and
the older store shows a tendency to overlook
such delinquencies on the part of the customer.
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Lechner & Schoenberger Co. Makes
Special Exhibit and Drive on Grands
Large Line of Well-known Instruments Shown by Pittsburgh House—W. F. Frederick Co. Form-
ing Amateur Orchestra—Ambridge, Pa., Music Store Purchased by Wm, E. Mathies
PITTSBURGH, PA., September 28.—The
Lechner & Schoenberger Co. featured a
special exhibit and sale of grand pianos "for the
October brides and Christmas time." In the dis-
play rooms of the firm the following instru-
ments were on display: Chickering, Kranich &
Bach, Conover, Cable, Brewster and Premier.
The display was in keeping with the high stand-
ard always maintained by the firm and was
visited by a large number of prospective pur-
chasers.
At Kaufmann's (The Big Store) a special dis-
play of the Mehlin pianos was made in the piano
department of the firm. Sales, it was stated,
were showing quite an improvement.
The W. F. Frederick Piano Co. is forming
a new amateur orchestra, the first unit of which
is rapidly filling. Boys and girls between the
ages of 8 and 21 years are eligible for member-
ship in the orchestra. Members can use their
own instruments and beginners who have no
instruments will be furnished the same free of
charge for use in practice by the firm.
W. J. Mullan, who for a number of years has
conducted a music store at 576 Merchant street,
Ambridge, Pa., has sold the business to Wm. E.
Mathies, who took possession on Monday last.
Mr. Mullan will continue to operate his store in
Sewickley.
A Duo-Art Recital was given in the Penn
Harris Hotel, Altoona, Pa., through the cour-
tesy of F. A. Winter & Son, Steinway dealers.
The recital was under the auspices of the Al-
toona Music Club and attracted a large number
of music lovers, who were highly pleased at the
notable program rendered by means of the Duo-
Art.
Sunday, October 4, will mark the beginning of
the thirty-seventh season of free organ recitals
in Carnegie Hall, Northside. For Dr. Caspar P.
Koch, the city organist, it will be the twenty-
second season. The series sets a record for free
municipal organ recitals in America. As has
been the custom heretofore, the organist will be
assisted by vocal and instrumental soloists, to
widen the scope of the programs. With the
splendid new organ, it will now be possible to
present many large works that could not be
given on the old instrument. Among these will
be a number of compositions transcribed by Dr.
Koch for the new organ, of which much is
expected.
Fred'k T. Steinway Returns
From Visit to Alaska
visited a number of times, Mr. Steinway, who
was accompanied by Mrs. Steinway, their
daughter, and Mrs. Steinway's brother, Dr.
Cassabeer, stopped off at the various large cen-
ters where he called upon his friends among the
Steinway representatives in those sections of the
country.
The return trip was made by way of the
Canadian Rockies, visiting Lake Louise and
Banff, where the party spent two weeks. Mr.
Steinway declared that he received much physi-
cal benefit from the tour which covered a period
of three months.
President of Steinway & Sons With His Family
and Doctor Cassabeer Enjoy a Three Months'
Vacation Tour
Frederick T. Steinway, president of Steinway
& Sons, returned on Monday of this week from
an extended vacation trip which took him to
Alaska and into the interior of that country as
far as White Pass. It was Mr. Steinway's first
trip to Alaska, and although he was interested
in the country he said that conditions were such
that it would probably be at least 50 years be-
fore it could be regarded seriously from a busi-
ness angle. Some few pianos were on displays
in the stores, but local merchants make a prac-
tice of acting more or less as brokers, securing
the instruments from the United States on
special order.
On the way to the Pacific Coast, which he has
To Use The Steinway
Among the artists who will be beard on the
concert recital stage next season through the
medium of the Steinway piano will be Irene
Scharrer, the pianist, and Ottoirno Respighi,
the pianist, composer and conductor, both of
whom will arrive in the United States some
time in January.
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