Music Trade Review

Issue: 1931 Vol. 90 N. 1

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The Music Trade Review
JANUARY, 1931
What Trade Leaders Think of 1931
{Continued from page 5)
dealers' stocks arc running low and they will
soon be compelled to buy merchandise on
a basis of cost and quality if they con-
tinue in business.
There has been apparently a shrinkage of
over 50 per cent in the number of piano
factories in the past three years. This num-
ber may be still smaller by the end of 1931,
but when that time rolls around those who
are still in the business will be doing busi-
ness on a businesslike basis. Meanwhile, we
are catering only to dealers who appreciate
the fact that manufacturers must sell at a
little above cost if they are going to con-
tinue.
You will, no doubt, be interested to know-
that by the end of 1930 there will be a
million dollars' worth of 1930 model Jesse
French radios in the hands of the public,
with improved models for 1931 already
under way.
We honestly expect 1931 to be at least SO
per cent better than 1930 and are banking
on this to the full extent of our resources.
H. E. Capehart, President and General Manager,
The Capehart Corp., Ft. Wayne, Ind.
We hear much discussion nowadays over
what is needed to assist the dealer in the
solution of his problems—problems which
generally have been brought about by a
lowering of unit prices in practically all
radio lines.
I firmly believe in the future of the auto-
matic phonographic and radio combination.
I have had hundreds of dealers tell me that
such an instrument will be one of the solu-
tions to their problems.
With this perfected musical instrument
dealers may look for a return to the days
of higher resale prices. They will further
enjoy the substantial secondary profits
which come from record sales in sets or
groups. Every automatic that is sold im-
mediately sets up a perpetual income from
record sales.
The year of 1931 will find many promi-
nent radio lines containing the Capehart au-
tomatic record changer which plays both
10-inch and 12-inch records. Concentrated
advertising and merchandising programs de-
veloped around these instruments will build
up an increasingly great demand for the per-
fect home instrument appealing to the pop-
ular or mass market.
Now is the time to plan your 1931 sales
program. Study the fundamentals of your
business and then set about to direct the
sales energies of your organization toward
the automatic combination.
When you do this your profit picture
should reveal a more interesting story at the
end of the year. 1931 will be a big year
for the automatic combination.
A. L. Bretzfelder, President, Krakauer Bros.,
New York:
I am of the firm belief that 1931 will show
a modest improvement over 1930 and just as
soon as conditions show the improvement
expected next year, piano merchants will re-
ceive their share of increased piano business.
We are happy to say that we are in the
most liquid position we have ever enjoyed
in the history of our business.
C. Albert Jacob, Jr., Vice-President, Mathushek
Piano Mfg. Co., New York, N. Y.
To prophesy the business outlook for the
year 1931 is a difficult task, but we believe
that the success of any piano manufactur-
ing company during the coming year is
largely dependent on its method of con-
ducting business in the past. Those manu-
facturers who have striven at all times for
production with little thought to quality or
the creation of a financial reserve will find
in the coming year a difficult situation, for
with their production curtailed owing to the
C. Albert Jacob, Jr.
loss of volume market they will be unable
to carry on. After this process of elimina-
tion is over, those manufacturers and dealers
who, through their stability remain active
factors in our industry will be in a most
substantial position and will reap the bene-
fits of their labors during these lean years
just past. 1930 has been "tough sledding"
and we do not look for immediate improve-
ment in general conditions, but we expect
Mathushek during 1931 to continue its steady
advance We believe that the sale of high-
grade grands and uprights will increase ma-
terially, and that those manufacturers who
produce a quality instrument and have the
financial strength to weather the prevailing
depression can look to the future with en-
couragement.
E. G. Clark, President, Clark Orchestra Roll
Co., De Kalb, 111.
Our business is just about as it has been.
We are trying to give service to those who
ask for it, and again we are getting all that
can conveniently be sent our way because
the music industry has been hard hit and
more so through the sense of fear than any-
thing else I believe, and until we get our
bearings again and begin to look to the
right source of supply for confidence we will
still keep on groping in the dark, hoping
to have some relief come from some good
Santa Claus. It just won't come that way.
It must come through individual thinking
and carrying out the good old Golden Rule.
"Do Unto Others as You Would Pie Done
By." I think the selfishness and greed mani-
fest throughout the entire nation or nations
as it might be put, is a great cause for our
condition and won't be changed nor relieved
until we begin to let go of self.
This may sound a little "preachy", but I
don't mean it that way at all. We are trying
to hold our end up here and help the rest
of the universe by good behavior as we
carry on.
A. G. Gulbransen, President, Gulbransen Co.,
Chicago:
As you have asked for my views on the
outlook for business in 1931, it seems to me
that after the long and continued depression
there is, naturally, going to be a change
for the better.
There appears to be a number of funda-
mental reasons for our present depression in
business, and one of them is the mental
attitude of most people, which, however, will
gradually change, and confidence and cour-
age will take the place of fear and pessi-
mism.
It has been asserted on reliable authority
that only twenty per cent of wage earners
and salaried people have been affected by
unemployment or reduction in wages and
salaries.
There has been a decided change in the
manufacturing and distribution of merchan-
dise and this, naturally, has affected the
piano business and, until both the manufac-
turers and distributors of pianos realize fully
that the piano business can only succeed
through the most modern and efficient meth-
ods and the distribution of pianos is put on
a constructive basis, the industry cannot
progress as it should.
The manufacturers, distributors and sup-
ply houses must work hand in hand, and
all have a chance to make a reasonable profit.
This co-operative purpose will aid in attain-
ing the much to be desired goal of success
in the piano industry. The racketeering in
the piano business must be absolutely elimi-
nated, for it is a menace to prosperity.
It is generally understood that the piano
is the basic musical instrument and should
have a place in every home, and this can be
accomplished if the public is properly ap-
proached.
Harry J. Sohmer, Sohmer & Co., New York,
N. Y.
After a year of serious business depres-
sion, I am still of the opinion expressed a
year ago:
The piano, particularly that of the better
type, will continue to be sold, if not in in-
creasing numbers as compared to peak years,
nevertheless in sufficient volume to assure
a nice, profitable business to those dealers
who have always been identified in their
communities as representative music mer-
chants.
In this highly mechanized age there is
still considerable music in the hearts of the
(Please turn to tape 19)
STARR PIANOS
STARR ELECTRIC REFRIGERATORS
CHAMPION and GENNETT RECORDS
ELECTRICAL TRANSCRIPTIONS for RADIO BROADCASTING
THE STARR PIANO COMPANY
Established 1872
RICHMOND, INDIANA
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The Music Trade Review
JANUARY,
REVIEW
(Registered in the U. S. Patent Office)
Published on the First of the Month by
Federated Business Publications, Inc.
at 420 Lexington Avenue, New York
Publishers of Antiquarian, Automotive Electricity, India Rubber World, Materials
Handling & Distribution, Music Trade Review, Novelty News, Rug Profits, Sales Man-
agement, Soda Fountain, Radio Music-Merchant, Tires; and operates in association with
Building Investment, Draperies and Tire Rate-Book.
President, Raymond Bill; Vice-Presidents, J. B. Spillane, Randolph Brown; Secretary
and Treasurer, Edward Lyman Bill; Comptroller, T. J. Kelly; Assistant Treasurer,
Wm. A. Low.
B. BRITTAIN WILSON, Editor
CARLKTON CHACE, Business Manager
F. L. AVERY, Circulation Manager
RAY BILL, Associate Editor
E. B. MUNCH, Eastern Representative
WESTERN DIVISION: FXANK W. KIRK, Manager
333 No. Michigan Ave., Chicago. Telephone: State 1266
Telephone: Lexington 1760-71
Cable: Elbill New York
In order to insure proper attention all communications should
be addressed to the publication and not to individuals.
Vol. 90
B
JANUARY, 1931
Cheapness Is Not the Answer
EFORE too many piano manufacturers and dealers get
the idea that the most direct means for increasing piano
sales is in cheapening products and reducing prices,
rather than in working harder and anticipating the turn in the gen-
eral business tide, let them take a lesson from the book of the
radio manufacturer. In this field the average sale of completely
equipped receivers amounted to from $125 to $175, until some
bright sales manager conceived the idea of placing midget receivers
on the market, of which a large number have been introduced
ranging in price from $37.50 to $80 complete. Now ask any
radio dealer what his average sale amounts to. Here is a case
where the number of sales has decreased and, due to the cheaper
receiver, the average value of the sale has likewise decreased. It
is an undisputed fact that ninety per cent of the buyers of cheap
receivers of the midget type would have bought regular receivers
at higher prices were the cheaper product not available, and un-
questionably the piano men will have the same experience if they
follow along the same path. As it is now, the radio men have
played into their hands by marketing receivers that cease to com-
pete with pianos, for the purchase of a radio at $50 less is not
going to stop the purchase of a piano if one is desired. When radio
prices ran into larger figures, the story was different.
I
More Good Retail Outlets Needed
N declaring that from his personal observation what is need-
ed in the piano trade mostly is a stronger retail organiza-
tion, both in numbers and capacity, to maintain contact with
the public and carry on the work for piano promotion, President
Heaton of the National Association of Music Merchants is simply
lending emphasis to the statements made by other prominent mem-
bers of the industry. It has developed, through surveys, that in
most sections of the country there are far too few good dealers
to carry on piano promotion and sales work in a manner that will
be effective under the present competitive conditions. This does
not mean that simply adding individual names to the dealer list
will help the situation, but it does mean that there should be added
to that list men who are financially stable, have ability and with
it the vision to devote themselves to piano promotion and sales
with the same earnestness that they would tackle any other sales
problem. If there is any doubt of this in the minds of the average
1931
retailer, let him talk to a manufacturer of experience and find out
how comparatively few is the number of piano dealers offering satis-
factory outlets for worth-while instruments.
Whether the answer lies in the development of attractive plans
that will attract new capital and energy to the retail division of
the industry, or whether the manufacturers must finally build up
such outlets remains to be seen. That there are opportunities in
the field is evident by the substantial success achieved by a large
number of outstanding retail concerns who, despite adverse con-
ditions, have continued to make some sort of progress. The diffi-
culty is that there are not enough of them. It is not a question
of whether there is one piano outlet to every 10,000 or 15,000 of
the population, but rather a question as to the activity of that out-
let.
1
^
A Declaration of Confidence
HE truism that it is the function of "a leader to lead" is
particularly well illustrated in a message to the entire
trade, presented as an advertisement by the W. W.
Kimball Co. in this issue of The Review. And this message de-
serves emulation by other manufacturers. It can well form the
credo of this eminent house, which, after seventy-three years of
steadily increasing success, displays the courage, faith and vision
which has made it one of the international leaders in this line of
trade.
\ • '**• ;
The summary of Kimball resources in men, equipment, and
money is tremendously impressive and inspires corresponding con-
fidence in every one connected with it, whether dealer or employe,
but even more valuable to the trade is the evidence that the Kim-
ball policy in the future as in the past will continue to develop an
enduring business profitable alike to its owners and its dealers.
It is a positive and inspiring answer to the pessimists who have
wondered whether the piano business is going to continue and
should renew the faith and energy of the men who were perhaps
shaken by the cries of pessimists, of which there are far too
many in the trade.
1
The High School Market Is Real
HE high school boy, with his polo cap or beret on
one ear, and the fair co-ed with all her tricks, pro-
vide excellent material for the comic artists and the
jokesters in the snappy magazines, but as a matter of fact these
same boys and girls must be taken seriously when their large num-
bers are considered in terms of purchasing power. The University
of Southern California recently conducted an extensive survey
covering the per capita buying factors of the high school student
and brought to light the fact that the annual per capita expendi-
tures in musical instruments, alone, were by the girls $6.20, and
by the men $14.47. Multiply these figures by several million and
you have the high school market. It is something for live dealers
to shoot at.
It is interesting to note that outside of clothing, the high
school boy spends more for musical instruments than for any
single item of entertainment or amusement, sporting goods being
second to musical instruments with a per capita average of $12.61.
Girls on the contrary, spend over $11 for hair cuts and shampoos,
over $10 for candy, more than $10 for toilet preparations, and some
$13 for jewelry each year. Probably that is why there is only
$6.20 left for musical instruments and $4.61 for sporting goods.
Probably, too, the fair co-eds depend upon the boys to supply the
saxophones, the ukes, the guitars and what have you.
A
Central Libraries of Music
SUGGESTION of great importance to publishers of
teaching music was that advanced recently at a din-
ner of the Boston Music Publishers' Association by
Mrs. Jane R. Colpitts, president of the Boston Piano Teachers' As-
sociation, to the effect that comprehensive libraries of teaching
music must be established at central points where teachers might
go and examine the pieces, hear them played and receive proper
advice as to their suitability.
As the matter stands now, a large proportion of music teach-

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