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Value Trade-ins
So That They Bring You Profit
Robert L. Jones, of the Dreher Piano Co., Cleveland, 0.,
Points Out That the Solution of the Trade-in Problem Is
in Making Allowances Sufficiently Low to Get Proper Price
•
I'.M KM I'.KR when as boys in school we it would be if offered to the public in Detroit. so forth; the condition of the ivories; the con-
used to wrestle with the problems in the Many other angles present themselves in this dition of the strings; the condition of the
sounding board; the condition of the action.
old arithmetic as they were handed to important problem of the trade-in piano.
A careful consideration of these points will
The sane solution of the trade-in problem
us from day to day? How "dead easy" some
of them were to us and how seemingly impos- must rest, therefore, with the individual dealer form the basis for a safe and sane estimate of
and it behooves him to adopt a system of his its value.
sible others appeared to be; but somehow we
managed to solve some of those most bother- own, fixing valuations that will permit him to Without this intelligent appraisal of these
close his books at the end of the year to show points it is evident that unfair and exorbitant
some problems even though it took some
scratching of heads and knitting of brows to a satisfactory balance on the proper side of the allowances must necessarily eat into the profit
get the correct answer and how delighted we ledger. The wise merchant will use every ef- of a deal and one only fools himself if the ap-
praisal is too high. The shrinkage will have to
became when final figures tallied with the an-
come out of the profit somewhere. A hap-
swer printed in the back of the book.
hazard, get-all-you-can policy with exaggerated
Remember the example which, in principle,
ran something like this? A grain broker
HE trade-in is an eternal problem to allowance will, at the end of the year, show
bought a thousand bushels of wheat at 85 cents
the retail piano merchant and is suscep- losses not pleasant to contemplate, while a care-
fully figured and reasonable rule for allowances
a bushel. He sold 500 bushels for $600, and
the remainder at 98 cents a bushel. Did he gain tible of only one solution—viz., making the on trade-ins will appeal to the average buyer
appraisal on ichich the allowance is based and in most cases will be accepted by the pro-
or lose and how much?"
on the condition of the spective purchaser in the spirit of fairness with
The problem would be of easy solution to the fundamentally
business man of to-day and it was not so very piano and not upon competitive
conditions. which it is presented.
My suggestion, therefore, for the solving of
hard for us to figure out then. But if the The article on this page is based on an ad-
the trade-in is simple, sane, reasonable and safe.
broker had taken as part pay for his wheat a
dress made by Mr. Jones at the annual
Make your appraisal sufficiently low so as to
second-hand bicycle with three broken spokes
meeting of the Cleveland Music Trades As- enable you to add to the amount allowed the
in the rear wheel and a punctured front tire,
sociation held in that city last week.
cost of putting the piano in salable condition
methinks it would have taken some head
and offering it for resale at a price which
scratching and not a little "close figgering" to
means a profit, not necessarily large, but never-
arrive at a safe estimate of the actual net profit
theless a profit and not a loss. Every sales-
on his transaction.
Now, it seems to me that the trade-in prob- fort to make that balance of goodly size rather man should be competent to make these ap-
praisals as he comes in contact with them in
lem in the piano trade is not unlike the example than of picayunish proportions.
in the old arithmetic and should not require any
There is only one safe way for insuring this his daily work and if by reason of his inexpe-
more study in solving than was required in the much to be desired result with respect to the rience or from absolute disregard of his firm's
simple example above recalled.
trade-in and that is to compel an appraisal interests he cannot do it, more capable men
I cannot believe that any uniform set of rules value which in the final analysis shows a profit should accompany him prepared to give the
for fixing a valuation on the trade-in piano can on the trade-in. For example, a dealer sells a prospect a prompt, definite, clear and intelli-
be applied. The trade-in value cannot be re- new piano for $1,000. If it is a cash sale, he gent proposition.
When we, as dealers, are willing to get down
duced to a schedule based on the age and make can easily add to the factory cost his freight,
cartage and overhead expense, quickly deter- to this plan, then and then only will our trade-
of the instrument for the very good reason that
a piano might be used less in ten years in mining his actual net profit on the sale. But, in problem be solved, and when we have worked
one home than in two years in another home. if he takes a second-hand piano as part pay in out the solution to our own individual satis-
A piano might receive more abuse in one year the transaction, it would seem reasonable that faction we will not need to worry about the
in a theatre than in five years' use in the aver- his good judgment would dictate a careful ap- methods our competitors are adopting. It is a
age home. So that these varying conditions praisal and an estimate of the cost of over- dead-sure thing that greater allowances will
would surely affect the cost of reconstructing hauling the trade-in as well as a fair and rea- mean smaller profits and eventual loss which in
sonable conception of the resale value of the present-day merchandising is not regarded as
the instrument for subsequent sale.
instrument when it shall again be. offered for good business economics.
There are other phases affecting the value of
Follow these suggestions: Adopt them as
the trade-in. For instance: the profit on some sale. The dealer who cannot appraise a piano
intelligently with this object in view is not ca- your positive and unalterable rules and your
lines of pianos is greater than it is on others.
This permits of a larger allowance for the pable of conducting his own business and trade-in problem will be successfully solved.
should delegate to the task some one who can
trade-in on some deals than on others, still
One of the first visitors to the wholesale
giving the dealer his anticipated average profit. safely estimate the value of the trade-in.
A trade-in piano may bring a better price in
The appraisal should carefully take up these headquarters of W. P. Haines & Co., which are
San Francisco than the same piano should
points: namely, the make of the piano; its se- now located at 396 Fifth avenue at Thirty-sixth
command in New York. It might not be so rial number; the design and finish of the case; street, was John Li/.das, a well-known and pro-
gressive piano merchant from Wilkes-Barre, Pa.
easy to sell that same piano in San Antonio as its age and general condition as to checking and
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