Music Trade Review

Issue: 1926 Vol. 83 N. 2

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
REVIEW
THE
VOL. LXXXIII. No. 2
Published Every Satarday. Edward Lyman Bill, Inc., 383 Madison Ave., New York, N. Y., July 10, 1926
sln<
fe The Ratio of Advertising to Sales
With Retail Music Dealers
Average With 100 of the Leading Retail Music Houses of the Country Is 5.8 Per Cent—The Relation of
the Advertising Appropriation to the Gross Sales—General Music Houses Place Most of
Their Appropriations Behind the Piano—Institutional and Sales Copy
I
N view of the extensive plans now under
ducted by The Review a short time ago showed
way by the National Piano Manufacturers' a total decrease of 27.8 per cent in musical in-
Association for a national campaign devoted
strument lineage from 1924 to 1925 in twenty-
to the promotion of the piano with the general
seven of the leading cities throughout the coun-
buying public, the retail music merchants' ad- try. This shrinkage was found in all sections
vertising, which constitutes the bulk of the ad-
of the country and in practically every city that
vertising expenditure of the music industries,
reported. As was pointed out at the time when
the amount invested in it, its efficiency in cre- the results of this investigation were first pub-
ating sales volume, and the type of copy which
has brought the best results becomes a more
important problem than ever before.
N view of the fact that the National
For, whatever the piano manufacturers may / Piano
Manufacturers'
Association
is
do in national piano promotion, the work of
about
to
undertake
a
campaign
of
national
the individual merchant in the advertising me-
dia that he uses in the territory from which he promotion for the piano, the retail mer-
draws his sales becomes just so much the more chants' advertising methods and expendi-
important. If the national campaign is to suc- tures become more vitally important than
ceed in its aims, there must be close co-opera-
ever before. For it depends upon the co-
tion between the two, for when all is said and
done, it is the merchant's advertising that will operation which exists between these two
turn the new appreciation of the piano, which factors as to the relative success of each.
it is hoped the national campaign will create, The national campaign will create the de-
into actual, concrete sales.
sire to own a piano; the dealers' advertising
Improvement in Retail Advertising
will turn that desire into a concrete sale.
High standards have been set in the retail
Therefore
the information which is con-
music merchant's advertising during the past few
years, as witness the advertising exhibits which tained in this article.—Editor.
have been a feature of the last several national
conventions. But, despite this advance, there
is still too much advertising of the "bait" type,
lished, two aspects of this condition must be
too much publicity which stresses so-called val- taken into consideration. The first is whether
ues to the exclusion of the real selling factors or not retail advertising of musical instruments
the piano possesses, too much emphasis upon
has lost its power to create prospects for the
terms to the neglect of the musical capabilities
retail music merchant with the result that he
of the instrument. The piano merchant who
has decreased his appropriation and is using
sins in this direction is still too numerous, al-
other means to make sales. The second is that
though he has received a striking lesson that
retail music merchants have decreased their ad-
in the long run such tactics are rarely profit- vertising appropriations in the face of a lower
able.
demand in an effort to cut sales overhead.
Witness the complete change in the policy of
Which of these two factors has created
Gimbel Bros., of New York and Philadelphia, the situation outlined above The Review has
only a few months ago. That was perhaps the endeavored to ascertain through a question-
greatest victory that constructive piano adver-
naire recently sent out to 100 of the leading
tising has ever achieved and the most concrete
general music houses in the country. The ques-
example that the trade has ever been giv'en of
tions asked them covered the percentage of
the factors which eventually create a steadily their advertising to their gross sales, the division
increasing piano business.
of their advertising appropriation among the
various departments in their stores, the results
Shrinkage in Lineage
from each type of advertising which they used,
The first thing definitely known in regard to
and finally the use of institutional and special
retail music merchants' advertising is that it is
sales copy and the actual results from each type.
shrinking in quantity. An investigation con-
Here The Review takes the opportunity to
thank the large percentage of the music mer-
chants who answered the questionnaire for their
co-operation in arriving at definite conclusions
on these questions.
Advertising in the Overhead
It was found that the average ratio of the
advertising appropriation to the gross sales of
the houses replying was 5.8 per cent, 5.098 per
cent being spent in the newspapers, and .702
per cent being spent for direct mail work.
Most of the merchants replying stated that the
basis of their advertising appropriation was a
certain set percentage of their gross sales, this
being largely a constant item of overhead with
but very little general fluctuation. Hence it is
possible to assume that, given a year when the
gross sales of a music house show a decrease,
the advertising appropriation will also show a
similar decrease, a condition which probably
existed to some extent during 1925 and which
was reflected in the decrease shown in lineage
used by merchants in that year as compared to
the previous one.
The Wisdom of This Rule
The wisdom of this rule is questionable, of
course. A decrease in demand naturally calls
for more intensive sales work of all kinds, in-
cluding advertising. When, through some cause
or other, sales decrease, the advertising appro-
priation should at least be held at a constant
figure, even though this, to some extent, may
increase the overhead percentage. A relaxation
in sales effort before an increase in selling re-
sistant simply tends to accentuate a condition
that is already serious. The retail music mer-
chant who follows such a course of procedure,
unconsciously it is true in most cases, depends
for his volume of sales directly upon general
industrial conditions in his territory with the
result that they fluctuate accordingly.
Protect the Turnover
That this is a condition which may be over-
come though an intensification of sales effort
that leads to holding the turnover in the store
at a constant figure has been demonstrated time
and again. Greater sales effort may increase
the overhead and lower the net profit on the
individual sale, but it is insurance against a
slower turnover where the greatest loss exists
(Continued on page 4)
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The Music Trade Review
JULY 10, 1926
brisk band and orchestra business. "We have
had a wonderful business in this department,"
he said. "June was the biggest band instru-
ment month we have ever had." The firm
handles the King line now, and has as manager
Several Report Demand Has Been Better Thus Far This Summer Than Has Been the Case in oi the department Jack Don, who has done quite
Several Previous Years—Sharp Daynes With Daynes-Beebe Music Co.
a lot of broadcasting which has given him a
wide and valuable acquaintance.
Mrs. Ethel Olin, manager of the Utah Music
ALT LAKE CITY, UTAH, July 1.—The that are selling best are the portables which can
sheet music and phonograph departments be taken along and used in the canyon tent, Co., is attending the convention in the East and
seem to be enjoying greater prosperity than where everyone who is able to get away may visiting prominent music manufacturing and
sales centers. She has been away about a
other departments in the principal music stores be found just now.
of Salt Lake City at this time. One thing that
Harry O'Loughlin, of O'Loughlin's on month but is expected home next week.
Oscar Olsen, salesman for the Daynes-Beebe
has helped the phonograph business during the South Main street, reports a big demand for
past few days is the extreme heat, the first phonographs at this time, and especially for the Music Co. for many years past, was married
really hot weather of the present Summer. Such Brunswick Panatrope. He said the demand for in the Salt Lake Temple yesterday. The
expressions as "A wonderful phonograph busi- talking machines of all kinds was better than in couple have gone to Yellowstone National
ness" are not at all uncommon here this week the Summertime of other years by a large per- Park for their honeymoon.
in music trade circles. Of course, the machines centage. Mr. O'Loughlin also reported a really
Sharp Daynes, son of president and general
manager Joseph J. Daynes, of the Daynes-
Beebe Music Co., has joined the sales staff of
the company and will be in the phonograph de-
(Continued from page 3)
partment for the present. Mr. Daynes, Jr., re-
that the retail music merchant can experience. poor returns that mail advertising shows, much cently graduated from the University of Utah.
General Manager Royal W. Daynes, of the
Protection of turnover is always more vitally of the material of this nature he sends out is
important than the absolute maintenance of the wasted. Under such conditions it is not likely Consolidated Music Co., is on a business trip in
that the dealer will go to the expense of postage Idaho.
margin of net profit.
Miss Aurora Herrington, sheet music depart-
Retail music merchants devote by far the greater and mailing unless the returns are likely to be
ment of the Consolidated Music Co., is enjoy-
part of their advertising appropriations to the better.
ing a vacation at Fish Haven.
Miss Alice
piano. The Review questionnaire showed that
Special Sales Copy
with the retail music houses reporting, 74.66
Of the retail music houses answering The Re- Campbell, in charge of the Information Desk, is
per cent of their advertising appropriation was view's questionnaire, 63.4 per cent reported that at Yellowstone. Miss Campbell is expected to
devoted to that instrument and 25.44 per cent they used special sales copy and 33.6 per cent be away for two months.
A requisition for $5,000 worth of musical in-
to the other lines handled. One house reported that they did not utilize it in their work. Most
that it divided its advertising appropriation on a of those reporting, however, stated that their struments and $1,500 worth of clothing and
basis of 3 per cent pro rata for each department special sales copy was not regularly used but equipment for the 324 Cavalry band, now at
on the basis of its annual volume of sales, and cnly at long periods. Their statements as to Cedar City, Utah, was sent to Philadelphia this
another used the same system, only setting the the results that this copy produced showed that week by the executive officer of the organiza-
percentage figure at 5 per cent. Another retail it is obviously losing its appeal to the purchas- tion, Colonel Dougherty.
Burglars entered the Consolidated Music Co.'s
music house stated that its advertising appro- ing public. While a few stated that they re-
priation was divided as follows: Piano de- ceived excellent results from it, the generaJ store the other night and carried off $900
partment, 6 per cent of the gross sales; talk- opinion seemed to be summed up in the follow- worth of instruments. Entrance was through
ing machine department, 4 per cent of the gross ing statement from a prominent house, the ad- a rear door. Banjos and a portable phonograph
sales; musical merchandise department, 6 per vertising manager of which stated: "Results were taken.
John Elliot Clark and Alvin A. Beesley,
cent of the gross sales; and sheet music depart- from this type of advertising are fair only. It
ment, 3 per cent of the gross sales. Another seems to leave the selling field exhausted, as it prominent local figures in the phonograph and
house stated: "We make an appropriation de- were. Besides, we feel that its frequent use general musical merchandising field respectively,
pending on inventory and previous annual does not create a healthy attitude on the part of have been appointed members of the special
the public towards the house." Several other committee organized by the mayor for celebra-
sales."
In studying these figures it must be remem- firms stated that in their opinion special sales tion of July 4.
bered that the music merchants to whom the copy had lost its pulling power through being
The Consolidated Music Co. has a fine
questionnaires were sent are largely houses overdone in the trade, that it was very difficult portable phonograph window this week. It is
where the piano department constitutes the to obtain results from it, and that it is losing a canyon scene. A man is fishing in a stream
greater part of the business and where it is its power to a great extent.
while a woman is standing at a camp table,
Seventy-six per cent of the retail music mer- presumably ready to prepare for breakfast the
given the most emphasis. But this is also true
in the great majority of the general music chants reporting stated that they used institu- fish that her husband is expected to catch. In
houses who constitute the backbone of the re- tional copy regularly and 24 per cent that they the dainty little tent is a portable phonograph
did not use it at all. Those who did use it were with fhe price, $50.00, attached. Just outside
tail music trade.
generally satisfied with the results it brings, the tent is another machine priced $17.50.
Newspaper Advertising Leads
Newspaper advertising, according to these some of their comments being: "Good all sea-
Harry O'Loughlin, of O'Loughlin's, and
questionnaires, is without question the most son"; "Create an improvement in the class of family have returned from a pleasant trip along
important in results for the retail music mer- trade done by the house"; "Builds confidence the Pacific Coast, which they took by motor.
chant. Sixty per cent of those replying to the and good will"; "It is indirect, but builds pres- Frank Warren of the same company and his
questionnaire stated that the results they tige and good will"; "Increasing its use with in- family are at this writing enjoying a similar
achieved with this type of publicity were good, creasing results." Out of all the music mer- vacation, Mr. Warren having left right after
and 40 per cent, fair. None stated that their chants who stated that they used this type of Mr. O'Loughlin's return.
results were poor. On the other hand, only 7 copy, only one reported that the results ob-
per cent of the merchants reporting stated that tained from it were poor. It is possible to
their returns from mail advertising were good; infer from the general trend of the answers that
21 per cent stated that their results were fair; this type of copy is being used more and more
CHICAGO, III,, June 28.—Walter Gotsch, presi-
and 72 per cent, poor. This condition is ade- every year and that the results obtained from dent of the Musical Instrument and Acces-
quately reflected in the division of the general it are becoming better and better.
sories Manufacturers' Association, and vice-
appropriation between these two types of ad-
president of the Association of Musical Mer-
Automatically Lowering Expenditure
vertising.
From this investigation it is obvious that chandise Manufacturers, Chicago zone, and A. E.
It is obvious, however, from the way in which the reason for the shrinkage in lineage on mu- Hunter, general manager of the Regal Music
these questions were answered that the average sical instruments in the daily press from 1924 Instrument Co., who is also secretary and treas-
music merchant has no direct methods of check- to 1925 is largely due to the fact that a falling urer of the local Association, are spending their
ing up on his advertising. Evidently this con- off in sales volume led to an automatic cutting vacations, together with their wives, touring the
dition has been found to require a remedy since of advertising appropriations. Newspaper ad- East. The party left a week previous to the
several houses stated that they were beginning vertising of musical instruments has not lost convention and attended the National Conven-
to provide space on their salesmen's sheets for its pulling power, except in the case of special tion of the Music Industries during the week
sales copy, according to the statements of these of June 7 in New York, and then continued on
the purpose of checking up such data.
music merchants. But this falling off leads di- their tour, which takes them through New York
Warning to Manufacturers
There is one thing that this poor showing of rectly to a more healthy condition in regard to State and New England.
direct mail advertising should teach the manu- musical instrument retail advertising. It would
facturer. That is, if he devotes any large sum also seem that special sales advertising is kill-
to dealer co-operation, and a good percentage ing itself through its. constant reiteration and
of this is spent on direct mail material, it would the consequent loss of confidence on the part
The Montelius Music Co., of Seattle, Wash.,
be better for him to concentrate on other forms of the public in the statements which it con- has leased the store at 220 Pine street to pro-
of dealer aids, since it is obvious that, with the tains.
vide additional display space for its line.
Talking Machines Leading in Demand
With Music Dealers of Salt Lake City
S
Ratio of Advertising to Sales of Retail Music Dealer
Spending Vacation in East
Leases New Store

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