Music Trade Review

Issue: 1926 Vol. 83 N. 5

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
How the Trade Is Reaping the Fruit
of 25 Years of False Talk
Only the Innate Selling Vitality of the Player-piano Has Made It Able to Withstand the Injury Done It by
the Constant Claim That "Anyone Can Play the Player"—An Honest Effort to Teach People
to Play It Properly Will Set Its Merchandising on New and Better Basis
N a recent article some attention was paid
to the important question of the position to
be occupied by the reproducing piano and
the player-piano in the new alignment of the
industry caused by the adoption of the scheme
for national piano promotion. It is evident that
if any good is really to result from all this plan-
ning, each aspect of the situation must be
thoroughly canvassed and as thoroughly treated,
for there are many aspects to the problem
which is before us and it is hard to say that any
one of them is more important than any other.
Of course the piano is the basic musical in-
strument, and being so, that which first takes
our notice is what may be called its manual as-
pect. It is evident from the start that the
proper way to promote piano sales is to pro-
mote piano playing among the children and
adults of the land. But with all this granted, one
simply cannot wish away the player-piano or the
reproducing piano. Here they are, strongly in-
trenched and with a record of such usefulness
to the industry as to entitle them almost to first
place in strength and selling value. These in-
struments cannot be treated as if a campaign
could go along without them. In a word, they
must be considered, and considered with very
great, and even meticulous, care. For if they
are neglected it is quite probable that they will
succeed in wrecking the whole scheme of propa-
ganda, not through inborn malice on their in-
animate part or on the deliberate part of their
makers and sellers, but because of their own
natural strength, influence and hold upon pub-
lic affection. To ignore them would simply be,
in a word, to invite disaster.
The Pedal Player Especially
For the present moment let us consider the
single case of the player-piano properly so-
called, that is, the instrument which consists of
a piano, grand or upright, fitted with a
mechanism which plays the piano when oper-
ated and controlled by human brain and body.
Let us for the moment put aside altogether
the reproducing piano, which indeed deserves
separate treatment, and consider this one large
and extremely interesting factor in our problem.
What is to be its position? Where does it come
in with respect to a campaign for promotion of
piano sales conducted on a national scale?
Ever since the player-piano came on to the
market more than twenty-five years ago it has
been a sort of step-child in respect of its treat-
ment by those who should have nourished and
cherished it. Its own enormous power has en-
abled it to strike pretty deeply, despite neglect
and stupidity, but it has never become what its
first promoters were justified in believing il
would speedily come to be. It has, in fact,
been never sold at all, in the strict sense of
the word. To this day millions, literally
millions of excellent men and women who have
some liking for music and probably some de-
sire (it is a normal desire) to express them-
selves therein, have not the least idea that the
player-piano is what they really want, have not
the remotest notion of what can be done with
it, by one who learns to play it. The brilliant
advertising which the Gulbransen Co. has been
doing for so long has always to fight against
this ignorance, which is so deep-seated that
only the strongest language repeated a score of
thousand times can ever be expected to modify
it. And how has all this come about? Simply
enough. It is the fruit of a quarter century of
I
the talk about no skill being needed and about
a child playing as well as an adult. Plainly, so
long as this is the prevailing belief among mil-
lions, the player-piano will positively not par-
ticipate in any benefit from a campaign based
upon music. A promotion campaign calculated
to benefit sale of player-pianos, when such sales
are made on the principle of misrepresentation,
will have to be based upon something quite
far away from music.
Up to Retailers
In other words, it is entirely a matter to be
decided by the merchants and their salesmen,
whether the sales of player-pianos shall be in-
creased through the operation of the forthcom-
ing national campaign of piano promotion. As
a matter of fact, if the salesmen and the mer-
chants would, from this time onward, make up
their minds to begin selling player-pianos upon
the principle of telling the truth about them
and learning how to play them well and demon-
strate that playing to their prospects, nothing
more would be needed to create an imme-
diate upturn in the sales account. For, as was
said before, the player-piano has never yet been
sold, rightly speaking. To the vast majority of
those who ought to possess and play player-
pianos, these instruments are to all intents and
purposes quite unknown. It is still virgin terri-
tory, this of the player-piano market. That is
to say, the proper territory, the territory which
should have been combed over from the first, is
still almost untouched. The intelligent people
have been utterly neglected where they have
not been frightened away, and why? Simply
because merchants have clung to the absurd
belief that the way to sell a musical instrument
is to make it as unmusical as possible, to per-
mit it to give out sounds which would disgrace
a street piano, and then to say that this is "giv-
ing the people what they want." That is why
the only natural and proper market for the
player-piano has been to this day left untilled.
And that too is why the player-piano impera-
tively is needing, from now on, a revival of mer-
chandising common sense to the end that it
may partake, equally with the piano proper and
the reproducing piano, of that revival of public
interest in piano music which must be the cer-
tain result of the planned national campaign.
To put it in yet another way, the position of
the player-piano in respect of the present situa-
tion is this: It is a musical instrument. It
should, can, and in fact must, henceforth be sold
as a musical instrument, to be learned, played
and enjoyed. Any honest effort to teach people to
play it well will set the whole merchandising
situation on a new and firm basis. Whereafter
the benefits which will accrue to the straight
piano from the planned campaign of promotion,
will equally tend to the use and hehoof of the
player-piano likewise.
A State of Flux
The whole situation is in a state of change.
The position of the player-piano was never so
favorable as it is to-day. Simply the question
is whether the retail trade will take advantage
of the fact and reap the reward.
Hanley Piano Co, Moves to New Store
Giving It Four Times Present Space
Demand in the Twin Cities Fair for Season of the Year With Main Emphasis on High Grade
Instruments—Some Dealers Report July a Splendid Month
OT. PAUL and MINNEAPOLIS, July 24.
^ —Business and the weather may be char-
acterized respectively as "fair and warmer" al-
though that is being a little faint in describing
trade conditions. While merchants, for the
most part, report that things are a little quiet,
there are others who tell of an unlooked-for
acceleration in certain lines.
P. J. Hanley is among the latter and has
quite a few bits of interesting news. First,
July so far is a splendid month and the higher
priced pianos, chiefly the Bauer, have been
moving more than well. Mr. Hanley adds that
the lower priced goods are not moving as fast
but there are no complaints with $1,000 units
of sale on the books. The Hanley Piano Co.
moved on July 22 into its new store a few
doors from the present headquarters. It is at
45 South Eighth street, in the Pomeroy Build-
ing, and the space there is about four times
the present area.
E. R. Dyer, president of the Metropolitan
Music Co., is on a vacation at Pine Camp
above Park Rapids in the Northern Minne-
sota woods. He will be gone, it is stated, un-
til August 1.
July has been a fair month is the report from
the Metropolitan Co.., with all departments
steady.
More than half the 1 Foster & Waldo force
are on vacations. R. O. Foster says that the
phonograph business is wonderful with Pana-
tropes especially going strong. The books
show this department away ahead of the volume
of last year.
Although July is somewhat quieter than
June, the Cammack Co. is very well satis-
fied. Portables are enjoying the seasonable
boom and records maintain a steady average
of sales.
Among the many Minnesota music vaca-
tioners is M. L. McGinnis, of the firm of that
name. He is at Welawiben, near Kimberly,
Minn.
Wurlitzer Plant Reopens
The large plant of the Wurlitzer Grand Piano
Co., DeKalb, 111., reopened on Monday after
the usual two weeks' shut-down, during which
time the staff took their annual vacations. The
plant is now running full force on full time and
orders for grand pianos are pronounced as satis-
factory. The Wurlitzer models now represent
eighteen periods and these types are becoming
particularly popular with the trade and the
public.
The William
street, Laconia,
cently by John
St. Clair Music
H. Avery Music Store, Main
N. H., has been purchased re-
E. St. Clair, proprietor of the
Store.
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The Percentage of Mark-up on Pianos
and the Dealers' Expenses
An Address by James J. Black, Treasurer of the Wiley B. Allen Co., San Francisco, Cal., for the Annual
Convention of the Western Music Trades Association in Seattle—Mark-up, at the Present
Time, Declared to Be Insufficient to Meet the Dealer's Needs
ENTLEMEN: In discussing the ques-
tion as to whether or not the present
mark-up on pianos is too low, and in
order to avoid unnecessary contention and ar-
gument, my remarks do not apply to him of the
five loaves and fishes, that miracle dealer who
always shows a profit in fair weather or foul,
whose collections are always 100 per cent,
whose reversions are next to nothing, and who
never knows at any time whether or not he is
solvent. Neither is it necessary to consume-
precious time in a mass of financial statistics
relative to facts of which all progressive and
thinking dealers are aware. So consequently
it will probably be more harmonious to discuss
the necessity of increased mark-up from this
angle—is the present expense connected with
operating the retail piano business too high in
relation to our retail sales profit, and, if so, is
our mark-up too low?
If our percentage of net profit on retail piano
sales in this day and time is too small in pro-
portion to our invested capital, and we feel that
we are getting our relative share of piano sales
in our respective localities, that our operating
expenses are as low as the present modern
methods of conducting a well-regulated music
business will permit, then our mark-up is too
low. If, however, on the other hand, we music
merchants are conducting our business in a
lavish and extravagant manner far out of pro-
portion to the market for our merchandise,
showing no relative business judgment in our
financial expenditures, then our expenses are too
high and the attendant lack of net profit lies
not so much in the mark-up, but in the proper
regulation of expense to that mark-up.
Business as it is conducted to-day in this fast
developing country of ours has ceased to be a
hit-and-miss affair and the question of whether
G
or not the proper mark-ups are being main- business when it was piano business and piano
tained in order to show a fair and equitable business alone that gave us our profits, and was
rate of return in proportion to invested capital and is the basic financial fundamental upon
and marketing cost is the dominant subject of which the music business was and is builded.
all progressive trade associations. This problem
Of course, gentlemen, for the sake of argu-
has been solved and is constantly being regu- ment there may be many sides to this question
lated by many of our country's largest in- of lack of net profit in piano sales at this pres-
dustries. Market surveys have been made in ent time. There is some talk of indifference on
order to determine potential sales volume; the part of the public to the piano, which of
financial analyses have been made in order to course if correct would certainly restrict our
accurately determine and average manufacturing market. By some it is said that other industries
and sales costs, and sales mark-up made in pro- have made themselves more attractive. Maybe
portion thereto.
we are too expensively organized as a retail
The retail music business, gentlemen, as we industry, but we do know that the public are
are all well aware, occupies a most prominent paying more proportionately for, and are ab-
position in the nation's business, and as such sorbing more of the manufacturing and retail
has grown proportionately. We have kept pace expense from the manufacturer to the dealer,
with the procession, and as a consequence have on the automobile, radio, vacuum cleaner they
observed our operating costs mount higher and buy, than they are relatively absorbing from
higher, and in the last few years so far out of the manufacturer to the dealer on the pianos
proportion to mark-up that the net rate of sales they buy. The piano should carry more margin
profit return on retail piano sales has just both to manufacturer and dealer. Our expense
barely justified the capital and effort invested, sheets tell ,us this. What is fair to the dealer
so much so that the question of mark-up must is fair to the public. We are entitled to more
profit on our invested capital. Therefore, in
be given serious consideration.
We have but to look over our balance sheets justice and fairness to ourselves as merchants
during this brief period to determine this, and we should make our mark-ups accordingly. An
many of us will be surprised to find—that is if additional $25 per instrument sold during 1925
we have not previously realized it—that the would have brought many a piano dealer across
profit derived from the talking machine business the dead line. So we Coast dealers, on the lines
carried a most substantial bulk of our operating of merchandise whose retail price we control,
are justified in marking them up in proportion
overhead.
Fooling ourselves with the thought of volume, to the expense connected with their sale from
the tendency has been to cut down mark-up and our stores.
increase expense, and now that our piano de-
So let us go quietly back to our desks and
partments, owing to the sudden change in the mark up those of our lines which we control at
talking machine skies, must stand on their own, least $25, and there are many of the lines
we are surprised to find our operating net profits handled so priced that they will stand an addi-
most substantially reduced, so much so that we tional $50, in justice to ourselves and in all fair-
must return to the mark-up that existed in our ness to the piano purchasing public.
Big Attendance at Opening Sessions of Western Music Trades
rapid sketch of its history and development and
stressed the advantages that have come through
the Pacific Coast music trades by the me?
dium which the Association provides for com-
mon endeavor in dealing with the problems that
(Continued from page 3)
confront the trade represented by its members.
G. F. Johnson, of the Johnson Piano Co.,
Portland, was the next speaker, his subject
being "How to Create Desire for Musical In-
struments." He handled his topic convincingly
•Illllllllli:
Mt. Rainier
From the
Northwest
Section of
Rainier
National
Park,
Seattle
and in detail, drawing from his own experiences
methods which have already proven their suc-
cess in the conduct of his own business.
Ellis Marx, of the Marx Music Co., Sacra-
mento, Cal., the last speaker of the morning's
session, talked upon "Should Advertising Fea-
ture Quality or Price Appeal," concluding in
favor of quality as the more efficient sales factor
in the retail sale of the musical instruments.
Luncheon
The first of the convention luncheons was
held at 12 o'clock in the Spanish Ballroom of
the Olympic Hotel under the chairmanship of
E. A. Geissler. The luncheon drew forth a
large attendance with many ladies present to
listen to the speaker of the day, William Gep-
pert, editor of the Musical Courier Extra, and
to the musical program given by the Jackie
Souders Orchestra, which appeared through the
courtesy of the Columbia Phonograph Co.
Second Session
The afternoon session was opened with an
address by Shirley Walker, of Sherman, Clay
& Co., San Francisco, whose topic was "Can
Music Dealers Be Allies Instead of Competi-
tors." Mr. Walker's address is printed in full
in another section of this issue of The Review.
He was followed by W. H. Graham, of the
(Continued on page 16)

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