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How Dealers Encourage Salesmen to
Increase Gash Payments
Fourth of a Series of Articles, Covering the Leading Cities of the Country, on the Ways and Means That
Retail Piano Merchants Successfully Use to Raise the Average of Cash Payments Made on Instal-
ment Sales—Making It Worth the While of the Salesman to Get the Cash
OST of the piano dealers in Minne-
apolis use the bonus system in one
form or another to encourage salesmen
to obtain larger down payments and shorter
contracts, and find that the method works out
most satisfactorily not only in clearing up ac-
counts rapidly but in reducing the number of
repossessions.
M
J. E. Frank
J. E. Frank, who is a veteran piano man, re-
quires a minimum down payment and gives a
onus in proportion to the amount paid above
that. The length of contract does not affect the
bonus.
Hanley Piano Co.
P. J. Hanley, of the piano firm of that name,
pays no bonus at all. The men are on com-
mission and in some cases salary and coin-
mission and the better terms the salesman
makes the better, he feels, are his chances of
advancement.
Metropolitan Music Co.
E. R. Dyer, president of the Metropolitan
Music Co., states that his firm gives no bonus,
that the salesmen are provided with instructions
as to minimum first payments and length of
contract. Salary is the only inducement.
Cammock Co.
Eugene H. Anderson, who has joined the
Cammock Co. the past two months as manager,
says that he approves of the bonus system but
has not worked out plans for the Cammock
salesmen, as yet.
Foster & Waldo
Foster & Waldo pay a bonus but not a set
amount and believe that it inspires greater effort
on the part of the salesman in shortening terms
and increasing cash.
Special Inducements Offered by the
Cleveland Merchants for More Cash
n p H E representative piano houses in the
•*• Cleveland territory for the most part have a
fixed schedule of terms and will not sell pianos
unless at least 10 per cent or more of the pur-
chase price is paid down at the outset. Several
of the concerns offer special rewards in one
form or another to salesmen who bring in the
greatest number of cash sales or who do well
in getting substantial first payments.
Rudolph Wurlitzer Co.
The Wurlitzer Co. salesmen have an incen-
tive to make them get as large down payments
as possible as the company pays a bonus of 10
per cent for each month that the contract aver-
ages under thirty months, which is the maxi-
mum time it is allowed to run. It is therefore
the endeavor of salesmen to reduce the time as
much as possible and this is accomplished
through large down payments and maximum
monthly payments.
Dreher Piano Co.
The Dreher Piano Co. has a system of pay-
ments to which their sales force must adhere
and this includes a maximum down payment.
Salesmen are paid a salary and are encouraged
by payment of a bonus.
Muehlhauser Bros. Co.
With the Muehlhauser Bros. Co. the mini-
mum down payment on any instrument is 10 per
cent and the longest time the contract is al-
lowed to run is thirty months. Salesmen are
instructed to point out to purchasers that, by
making a larger down payment than 10 per
cent they automatically decrease their monthly
payments. In the case of responsible people
who have other obligations maturing at the
time of the purchase of the piano, the company
sometimes deviates from its established terms,
but always arranges to secure a substantial pay-
ment in sixty or ninety days when the other
obligations have bean met. Salesmen are given
a bonus at the end of the year, the amount
depending on the amount of cash with each
sale.
George Ott, of the Ott Piano Co., says he
has found it just as easy to demand a good
down payment as l o follow the way of least
resistance and let customers dictate what they
want to pay down. Mr. Ott has a fixed policy
as to payments and co-operates with his sales
force, giving them to understand that in the case
of a salaried man, he has a better chance of
getting a raise, and if a commission man, he
can get his commission that much sooner if a
large cash down payment is secured originally
from the customer.
Bonus System for Cash Payments Used
by Some Music Merchants in Buffalo
D U F F A L O piano houses are divided on the
question of paying extra commissions or
bonuses to salesmen for securing particularly
large down payments that are well in excess
of minimum terms. Despite the fact that some
houses make a practice of sending instruments
out without a down payment, the majority insist
upon getting a minimum initial payment of 10
per cent and in some cases reward the salesman
who can talk the customer into making a larger
payment and agreeing to shorter terms.
Hoffman Piano Co.
William Reily, sales manager of Hoffman
Piano Co., said: "We allow a minimum time
on all piano purchases. The salesman closing
the deal is responsible for the instrument until
10 per cent has been paid, and until the 10 per
cent is paid we do not consider the sale closed,
regardless of trade-ins. We give our salesmen
a 1 per cent bonus on all cash sales."
Goold Bros.
George Goold, of Goold Bros., Inc., said: "We
try to get a 10 per cent down payment on all
purchases of instruments. We do not let an
instrument go out with a smaller down pay-
ment unless the purchaser has a very good
credit standing. We do not encourage our sales-
men to secure larger down payments through
any special inducements."
Adam, Meldrum & Anderson Co.
Loretta C. Spring, manager music depart-
ment of Adam, Meldrum & Anderson Co., said:
"We will lose a sale rather than let a piano go
out with a down payment under 10 per cent
of the purchase price. We very rarely lose a
sale because of this rule, but it is steadfast.
During the past few months we have had any
number of cash sales. I believe there is plenty
of room for the dealer who insists upon the
10 per cent down payment. Our salesmen are
paid a straight salary and bonus."
Erion Piano Co.
Arthur \V. Erion, president, Erion Piano Co.,
said: "We always get a 10 per cent down pay-
ment on pianos leaving our warerooms and do
not find it difficult to adhere to this rule. We
do not encourage larger down payments, but
find it more satisfactory to hold to the one rule,
and encourage our patrons to visit our store
at least once a month when they make
their instalment payments. These visits nearly
always result in another sale or lead to a pro-
spective buyer."
Neal, Clark & Neal
J. W. Foster, sales manager Neal, Clark &
Neal Co., said: "We do not allow our sales-
men special inducements to secure larger down
payments, although we endeavor to get at least
10 per cent on all sales."
Unusual Piano Program
for MacDowell Foundation
Olin Downes, of the New York Times; John
Erskine, of Columbia University, and Ernest
Urchs, of Steinway & Sons, to Present Three-
Piano Program
Music lovers of New York will be privileged
to hear two concerts of exceptional interest on
Friday afternoon, January 21, and Saturday
evening, January 22, when three artists who con-
fine their activities to lines other than concert
work will present programs of ensemble piano
music.
One of the three artists will be Ernest Urchs,
manager of the wholesale and artists' depart-
ments of Steinway & Sons, whose ability as a
pianist has long been recognized by his asso-
ciates in the industry; another will be John
Erskine, a professor at Columbia University,
and a musician of exceptional talent, who has
won a wide reputation recently as the author
of the books "Private Life of Helen of Troy"
and "Galahad," the latter the best seller of the
year; and the third Olin Downes, music critic
of the New York Times, who also enjoys a
wide reputation as a pianist.
The program includes Brahms variations on
a theme by Haydn for two pianos to be played
by Mr. Downes and Mr. Erskine; a Mozart
Concerto in D. major, by Mr. Erskine; and a
Bach Concerto in D major for three pianos,
with string orchestra accompaniment, to be
played by the three pianists. The proceeds of
the concert will go to the MacDowell Founda-
tion at Peterboro, N. H., and the affair is under
the auspices of Mrs. Ernest Hutcheson.
Forced to Enlarge Quarters
DES MOINES, IA., December 24.—The Baldwin
Piano Store, located at 922-924 Walnut street,
has found it necessary to procure extra space
for offices in the adjoining building at 920 Wal-
nut street. R. Howard is manager of the store.