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The Music Trade Review
SEPTEMBER 22, 1928
Illinois Convention
(Continued from page 3)
course, the percentage would be considerably
higher. Surely a factor involving that portion
of our business should have a very serious con-
sideration.
"Take, for instance, a business doing a vol-
ume of about $500,000 taking in exchanges
about 15 per cent or $75,000. Now, supposing
you could cut your allowances only one-fifth,
in other words, instead of allowing $200 for a
piano, you allow $160—20 per cent less—you
would be making a saving in that year of $15,-
000 on that small reduction of allowances on
$75,000 worth of trade-ins. That would add 3
per cent in to the net profits of a business doing
a volume of $500,000. This can be done if the
dealers will co-operate and quit taking money
out of each other's pockets and throwing it
away through over allowances. How much bet-
ter and how much more profitable it would be
to spend money for publicity, association work,
group instruction and other constructive propa-
ganda than to throw it away in over allowances.
"Another bad situation caused by over allow-
ances is the fact that it causes many dealers
to quote fictitious prices. This is done for only
one purpose and that is to give them leeway
in making large allowances on the old piano.
This cannot but destroy the public's confidence
in piano values because the same dealers, when
a cash buyer comes along, will make a very
substantial cut in price. These things also have
a bad effect on sales organizations, and when
your sales organization loses confidence in
piano values they certainly cannot gain the
confidence of the customer in your prices.
"If a customer calls at your store and tells
you that the other fellow has offered him or
her $300 for an upright piano, that you know
is worth only $50, don't try to outbid him but
call him on the telephone. Just think how much
more attractive, interesting and profitable we
could make our business if we had more con-
fidence and co-operation.
The Carrying Charge
"There is one more topic that I should like
to bring to your attention and that is the carry-
ing charge. I believe the piano industry was
probably the only industry years ago that sold
on the instalment plan. If my memory serves
me correctly, years ago we used to have a time
price and a cash price on pianos. From that
plan we developed an interest-bearing contract.
Many of the more prominent houses establish-
ing a net cash price which was quoted for the
piano and when sold on time a mere charge
of 6 per cent on the unpaid balance was made.
"It is needless for me to say that every piano
and music dealer in the United States needs
the carrying charge and should adopt it at
once. I really believe that we to-day are the
only industry that sells on the instalment plan,
and I believe that you can buy practically any
commodity on that plan to-day, that does not
use the carrying charge as a method of financ-
ing instalment sales. I am speaking of the in-
dustry as a whole. Many of the more promi-
nent dealers in the country have been using the
carrying charge plan for several years, and I
think the number of dealers using this plan
is increasing very rapidly, but I sincerely hope
ESTABLISHED 1862
that by the first of the year every piano dealer
Although considerably improved, Mr. Grin-
will adopt this carrying charge for deferred nell informed the gathering that the advertis-
payment-plan sales.
ing of their field of business still needs con-
"In closing may I again urge closer co- siderable correction. The price appeal is still
operation for the betterment of the industry, used to an excess which is distinctly detri-
and that you endeavor in the future to carry mental to the advertiser when the customer
finds that there is little or no foundation for
out the following suggestions:
"1—Have group instruction in the schools of the so-called "values'' and former prices used
in the advertisements.
your community.
"2—Put on piano-playing tournaments.
Although the Better Business Bureau main-
tains an impartial attitude toward both the
"3—Do high-grade advertising.
large and small dealers, it has been consider-
"4—Do high-grade selling.
ably hampered recently by the continuance of
"5—Cut down allowances on old pianos.
the unethical practices on the part of many
"6—Adopt the carrying charge."
Following Mr. Fleer's talk the various sub- large dealers; the small neighborhood dealers
jects broached by him were discussed by the whose sales and advertising methods have been
noticeably improved look to the larger ones
dealers present.
The next speaker was C. R. Moores, presi- for guidance, and when they fail to see a good
dent of the Indiana Music Merchants' Associa- example set by the large dealers the neighbor-
tion, who outlined what that body was doing in ing merchant is justly indignant.
promoting group piano instruction classes.
"Stenciled" pianos and players came in for
A Message From President Roberts
some attention in Mr. Grinnell's message. He
A message from President C. J. Roberts, of pointed to the accomplishments of the St. Louis
the National Association of Music Merchants, Bureau in this field and expressed his desire
praising the Chicago trade for its work in secur- that the Chicago merchants and especially the
ing group instruction in Chicago schools, and manufacturers co-operate to the greatest pos-
emphasizing the promotion work that can be sible extent in the elimination of the stencil
done by merchants through piano-playing tour- evil. "The hoax of the stenciled piano has long
naments, group instruction and municipal mu- been used by the manufacturer in his effort to
increase the market for his product," he said.
sic, .was next read.
"While no objection can be made to this prac-
Luncheon at Piano Club
Following the morning session, those attend- tice alone the evil lies in the fact that sale ex-
ing the convention were the guests at luncheon aggerations and in many cases actual misrep-
of the Chicago Piano Club with Harry Bibb, resentations must be indulged in by those deal-
president of the club, presiding. Following the ers whose job it is to obtain 50 per cent more
luncheon there was a program of entertainment for an instrument because of its stenciled name
featuring Ambrose Wyrick, tenor, Jerry Cur- than the same instrument would cost when a
different name was used. This condition can
tiss, radio artist, and others.
be effectively combated only by the large deal-
Afternoon Session
The afternoon session opened with an ad- ers a.nd manufacturers who are in a position to
dress by Corley Gibson, president of the Auto- limit the output of stenciled pianos and other-
piano Co., on the player-piano and its possibili- wise correct these abuses."
ties. He declared that the same methods could
Tells of Instruction Work
be used to re-arouse interest in player-pianos as
The next speaker was Charles G. Byrne, of
are followed in interesting children in manual Steger & Sons, who spoke on piano instruction
piano playing. What is needed, he declared, is work and what Chicago has accomplished
the educating of the public to the musical possi- through the co-operation of the local trade.
bilities of the player, and declared that it would
All Officers Re-elected
prove possible to develop a, school of player-
The Nominating Committee returned the
piano instructors for that purpose. He held names of all its present officers for re-election,
that the salesman should study player demon- with the recommendation that the president
stration and urged the buyer to take instruction appoint nine members as directors to assist in
in the playing of the instrument, and that prop- carrying out a larger program during the com-
erly handled the player-piano had greater possi- ing year. The officers re-elected for another
bilities than ever before.
year are: President, H. H. Fleer, Chicago; first
Better Business Bureau Head Talks
vice-president, Charles W. Wiler, Quincy;
The next speaker was Flint Grinnell, man- second vice-president, A. L. Bruner, Rock
ager of the Chicago Better Business Bureau, Island; secretary, George Wiswell, Joliet, and
who declared "that many of the largest music treasurer, Lloyd Parker, Harrisburg.
and piano dealers still fail to recognize their
Following the election it was voted to make
responsibility to the buying public as is evident a strong drive for a larger association member-
by the continued complaint received by Better ship, to take in band instruments, phonograph
Business Bureaus from dissatisfied customers." and radio merchants. The annual dues were
Mr. Grinnell's indictment of these companies is fixed at $5.
based principally on the contact which the Bu-
Next Convention in Chicago
reau maintains with the consuming public
It was voted to hold the 1929 convention also
through the complaint system, and he said: in Chicago, but at an earlier date, and the idea
"The situation is constantly aggravated by the of a one-day convention was heartily endorsed.
fact that some dealers who were the first to It is likely that the meeting will be held at the
pledge their organization to ethical business time of the national conventions in June.
practices are the same ones who very often
close their eyes to the manner in which their
Consult the Universal Want Directory of
own companies obtain new business."
The Review.
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