Music Trade Review

Issue: 1927 Vol. 85 N. 16

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
VOL. 85. No. 16
REVIEW
Published Weekly. Federated Business Publications, Inc., 420 Lexington A?e., New York, N. Y., Oct. 15,1927
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Indiana Merchants
Hold Annual Convention
C. R. Moores Elected President, Frank Wilking and Albert
A. Klamer, Vice-Presidents; George Stewart, Secretary;
and T. H. McPheeters Treasurer—Membership Increases
Joel B. Ryde
NDIANAPOLIS, IND., October 11.—The
second annual convention of Indiana Asso-
ciation of Music Merchants opened yester-
day with a luncheon at the Indianapolis
Athletic Club, with President Joel B. Ryde in
the chair.
Dick Miller, president of the Indianapolis
Chamber of Commerce, welcomed the visiting
delegates and gave an interesting talk on the
"Value of Associations," pointing out their ad-
vantages in enabling the merchants to place
their business on a higher plane through the es-
tablishment of better methods.
President Reviews Activities
President Joel B. Ryde then made his annual
report as president, in the course of which he
outlined the activities and accomplishments of
the Association during the year.
The Secretary's Report
George E. Stewart, as secretary of the asso-
ciation and chairman of the membership com-
mittee, followed with his report taking up sev-
eral important subjects such as the phonograph
trade-in situation and the carrying charge which
were discussed later at the meeting. Mr.
Stewart also made a plea for an increase in the
membership of the association. He said:
"This has been a trying year for the music
dealers and all have spent hours trying to de-
termine what is wrong. There are many prob-
lems that need solving. The cost of doing busi-
ness is continually rising and the sales do not
increase in proper proportion. The trade-in
evil becomes daily a greater question.
I
"The once happy phonograph dealer finds
competition keener and he is confronted with
a new situation for him, but one that has been
for years a problem with a piano dealer. He
now must bid against his fellow merchant for
some old, worn-out, obsolete phonograph un-
til finally there is no profit in the deal for any-
one, except possibly the buyer. Hundreds of
thousands of dollars are lost annually by music
dealers in Indiana that could be saved if all
would only stand united on the allowances for
old pianos, phonographs and radios. This alone
would put back the business on its feet as a
profitable enterprise. The problem seems easy
to solve, but will call for a lot of educational
work on the part of our association. Our first
step in the right direction is the folder which
you have just received entitled, 'Phonograph
Trade-Ins.' Read it carefully and put a copy
into the hands of everyone of your sales people.
I want to say here that I have yet to see an
old style phonograph that is worth 10 per cent
of its original retail price to the dealer. They
can be bought nearly every day at any one of
four large auction houses here in this city at
prices ranging from $5.00 to $15.00. One
Thursday, a few weeks ago, I witnessed twelve
of these old style phonographs of the upright
model sold at Shak's Auction House, and the
largest and finest one offered brought $14.00.
On the very next day, a certain Indianapolis
dealer allowed $75.00 for one of the same make,
but a smaller, older and less desirable finish. I
believe sincerely that this association will in
time bring about an improvement of this situa-
tion just as it has in the matter of the larger
interest charges on instalment sales.
Value of the Carrying Charge
"While on this point, I want to call your at-
tention to one great accomplishment of the
year for our association. Two of the larger
Indianapolis music houses have definitely
agreed, having already printed up new con-
tracts, to adopt the carrying charge plan adding
one-half of one per cent per month. This will
increase the revenue of one of these houses by
as much as $50,000 per year. If adopted by
all Indiana music dealers this would put into
their pockets, I estimate, over $1,000,000 ad-
ditional revenue annually. And I am pleased
to report now that at least six more Indian-
apolis dealers will fall in line as soon as the
start is made.
"The carrying charge plan as now contem-
plated by those dealers costs the buyer only
\\^/\ per cent interest per annum, whereas these
same buyers are willingly paying from 18 to 30
per cent for financing their purchases of auto-
mobiles, washing machines, vacuum sweepers,
ice boxes, etc. The dealer that continues to
charge 6 per cent interest is out-of-date and be-
hind the times.
Six per cent will not pay his
cost of collecting, bookkeeping, repossessing
and re-selling, leaving nothing for the interest
on the money. The music dealer to-day oper-
ates within his music store a finance company
and receives no interest on his money."
Mr. Stewart closed his report with a strong
appeal to the members to co-operate whole-
heartedly with the officers in carrying on the
work of the association, declaring that the in-
dividual member only got out of the organiza-
tion in proportion to what he put into it. He
paid high tribute to the work of President Ryde
throughout the year and suggested that a paid
assistant secretary be appointed to travel
throughout the State and endeavor to bring all
music merchants into the association ranks.
The regular officers with their own businesses
to take care of could not be expected to do this
work, he declared.
The Chairman of the Membership Committee
read his report and stated that there were now
forty-nine active members and twenty-three as-
sociate members in the association, a gain of
nine active and five associate members since the
association was formed last year. He ex-
pressed the hope that it would be possible to
enroll at least half of the three hundred music
merchants in Indiana in the association ranks.
The next speaker was W. E. Guylee, presi-
(Continucd on page 4)
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The Music Trade Review
OCTOBER 15, 1927
Indiana Merchants Hold Annual Convention
{Continued from page 3)
dent of the National Piano Manufacturers'
Association, and vice-president of The Cable
Company, Chicago. In his talk Mr. Guylee em-
phasized his belief in the stability of the piano
business and declared that the piano depart-
ment was the solid foundation of the retail
music business, the piano being the basic musi-
cal instrument.
Mr. Guylee called attention to the fact that
years ago when people were less able to buy
costly things than to-day, nearly everyone be-
lieved that as soon as a home could afford a
piano one should be bought, yet, to-day with
ten times as many people able to buy, that feel-
ing has not continued. Its restoration is the
main problem of the trade. Of the ten million
pianos in use to-day, at least two million are
obsolete and should be replaced, thus offering a
market in itself. He stated that the country
itself was prosperous, that the public had
money to spend and that the present promotion
campaign was bringing results in the direction
of reviving buying interest in the piano.
The Instalment Situation
Hy. Giessenbier, cashier of the Scruggs, Van-
dervoort & Barney Bank, and president of the
Reserve Discount Co., of St. Louis, next spoke
on instalment selling to-day, and drew a com-
parison between production credit and its for-
mer misapplication, and the present day abuses
of instalment selling, emphasizing that just as
production credit has become dignified, so have
there been great improvements in instalment
selling.
The speaker then stated that the finance com-
panies, working hand-in-hand with the mer-
chants, are eliminating the abuses that have ex-
isted in instalment selling and cause it to be
recognized as a very necessary part of mer-
chandising, in opening up a wider field for in-
creased sales. At the present time, he declared
75 per cent of the business of the country is
done on an instalment basis, and if care is used
in handling such business, there should be no
danger involved. Following Mr. Giessenbier, G.
Ray Hock, of the Bankers Commercial Securi-
ties Co., delivered an address on the carrying
charge as applied to musical instrument sales.
He covered the matter rather exhaustively and
quoted from a booklet on the subject prepared
by W. Lee White.
Trade Problems Discussed
The various talks were followed by a general
discussion of the problems of the music busi-
ness led by various association members. The
subjects included: "Making the Salesman Pay
His Way," by Frank O. Wilking; "Future of
Player-Pianos," by Frank Davis; "Collections,"
by T. H. M. MacPheeters, and other matters of
like interest.
Monday evening was given over to a smoker
and frolic held at the Indianapolis Athletic Club
which lasted to the early hours of the morning.
Tuesday Session
The first speaker was Gordon Laughead,
sales manager of the Wurlitzer Grand Piano
Corp., who discussed in the time allotted him
three important matters, namely, profitable ad-
vertising, do special sales pay, and how and
what to sell in 1928. In his discussion of
advertising Mr. Laughead said, in part: "Ad-
vertising to be effective must be consistent,
and you must be in the paper each week. The
weekly copy need not be large in size, but it
should be attractive, and a thirty-inch adver-
tisement properly gotten up will pay. In each
city the situation is different and attention
should be given to newspaper circulation and
rates. If the dealer gets the bulk of his busi-
ness locally he should not pay for outside
circulation. Select the days for the insertion
of the regular advertisements with care. If you
want your advertisement read closely, Monday
and Tuesday are the best, because the papers
are usually light. If you want to pull some-
thing on a shopping day, Thursday and Friday,
for Friday and Saturday, are best for the purpose.
"The preparation of copy is important. It
is best to use the simplest English language.
Don't Ritz the public, but put the personality
of your store in the advertisement and make
it a picture of yourself. Spend some money
for attractive cuts, and don't use pictures of
pianos that are out of style simply for economy.
Leave plenty of white space. This is 1927,
and we live faster and have less time for the
paper, so leave space in order that the fellow
who looks at the paper on the run can get
your message. Try for a position on the right-
hand page, at the top if possible. A friendly
attitude towards the advertising solicitor will
help. Don't get rough with him. It doesn't
pay.
"The successful advertisers are the firms who
are in the papers with a real message at least
once or twice a week. It is constant pounding
the year around that counts. Recently I had
the pleasure of laying out the advertising pro-
gram for a new store in a town of 100,000. The
year around we run a prestige advertisement
on the •store and its lines of instruments in
the society section each Sunday, and in Sum-
mer reduced the copy from sixty inches to
thirty inches. The answer is that the store
makes a profit."
The Special Sale Has Its Place
After emphasizing the necessity of honesty
in business and the wisdom of service, Mr.
Laughead went into the discussion of special
sales, and said, in part: "The legitimate special
sale has its place. Most first-class department
stores run two or more sales a year.
An
honest music dealer can stimulate his business
once or twice a year, cleaning out slow-selling
merchandise, shopworn instruments, second-
hands and trade-ins, or good merchandise pur-
chased at below the market value. No one
ever accused the Victor Co. of being a 'gyp'
concern and still they honestly advised their
dealers to clean house a few years ago in an-
ticipation of the new Orthophonic.
"In the past three years I have encouraged
our dealers to run over 250 special sales, help-
ing them with copy to clean their floors. These
have all been honestly run and have done much
good. Some of my friends, noting the splendid
results of a sale once or twice a year, have
tried to take the short cut by running sale
copy all of the time. In every instance it has
played out—it won't stand up day after day.
Don't run a special sale store 365 days a year.
The combination, however, of weekly high-
grade prestige advertisements with an occa-
sional sale should pull business for you."
What to Do About 1928
Regarding how and what to sell in 1928,
Mr. Laughead said: "Confidence in our busi-
ness is essential. If you believe the washing
machine business or the automobile business
is better than our business, don't waste time
here but liquidate and go into the thing you
believe in. This is the day of competition, not
with the other piano merchant, but with the
washing machine dealer, the oil burner dealer
and the hundred other aggressive instalment
dealers. The piano business is one of the
oldest instalment businesses, and the question
is whether the dealer is going to cry because
the other fellow has invaded his field, or
whether he is going to fight.
"If the dealer is going to fight he must first
check up on his lines, so that he will have
the right merchandise and not too many lines
for 1927 and 1928. The sales force must be
trained according to new methods, and it must
be remembered that this is the day of outside
selling, and the outside man should see at least
fifteen people a day. On that basis the law
of averages will work out in the matter of
sales.
"Train your floor man. My pet aversion is
a lazy floor salesman, one who parks his feet
on a desk, has a spittoon close—ducks a
cigarette when you come in, and who wouldn't
move fast if you exploded a bomb. Get rid
of that guy and put your new floorman to work
—see that he knows the stock—that he can
talk intelligently—that he helps the outside
man—that he is kindly and courteous and that
he telephones at least ten prospects a day.
Put him to work."
Group Piano Instruction
Next came George Cain, of the Miessner In-
stitute, Milwaukee, who gave a lengthy talk on
the Melody Way System of Group Piano In-
struction, and told how the idea has spread
throughout the country and met with particular
success in those cities where the dealers had
co-operated with the newspapers in putting it
over. At the present time, he said, thirty-two
newspapers throughout this country and
Canada were engaged in giving publicity to the
Melody Way Plan which has reverted to the
benefit of the trade as a whole. G. Klamer, of
Evansville, followed Mr. Cain with an explana-
tion of how the Melody Way Club had oper-
ated in his city and of the benefit derived.
Music in Public Schools
Ernest G. Hcsscr, Supervisor of Music, of the
Indianapolis Public Schools, spoke next and de-
clared that if the public was to become truly
musical it must be as a result of the work of
the public schools during the impressionable
days of the boys and girls. "Our working
hours are becoming shorter," he said, "and the
people are finding themselves with leisure and
money to spend. How this leisure and money
will be spent depends in no small measure on
the habits formed during school days." Mr.
Hesser outlined the status of music in the pub-
lic school system, and pointed out some of the
things that are being done to stimulate musical
interest, through the teaching of sight singing
and instruction in the playing of various musi-
cal instruments. He paid tribute to the repro-
ducing piano and the phonograph as media
for encouraging a better understanding of good
music.
The next speaker was Joseph C. Maddy,
who, in discussing the subject, "A Musical
Nation in the Making," outlined the tremendous
progress that had been made during the past
few years in the development of school bands
throughout the country. It was only a few
years ago, he said, that the average town de-
pended for its music upon a band of indifferent
musicians led by the local barber. Then school
authorities here and there were interested in
the proposition of organizing bands in the
schools. The idea was immediately successful
and spread rapidly until there are now literally
hundreds of school bands who hold regional
and national contests each year. At the 1927
National School Band Contest, held in Council
Bluffs, la., there were twenty-three bands total-
ing 1,500 players, and in the National Orchestra
assembled in Dallas to play before the Na-
tional Educational Association last March there
were 266 picked players, representing schools in
thirty-nine States. This band movement is one
of the greatest in the country designed to pro-
mote musical interest.
The Inspirational Luncheon
At the "Inspirational Luncheon" which fol-
lowed the morning session, Merle Sidencr held
the interest of the delegates with an address on
"Cash Drawer Value of Good-Will," stressing
the importance of competence and good-will as
a profit producer, and defining good-will as the
impression created in the mind of the customer
which makes him inclined to return again to the
business house where he was well treated.
Music during the luncheon was furnished by
the Claypool Trio.
National Promotion Work
The final session on Tuesday afternoon opened
with a talk by C. A. Dennis, executive secretary
{Continued on page 5)

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