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ADVANCES A NEW PLAN
FOR THE
CONTROL of PIANO STOCK
An Interview With
S. A. REARDIN
Manager, Piano Department, Strawbridge & Clothier, Philadelphia
S
A. REARDIN, manager of the piano department of
time he purchased it, he will have his percentage of mark-
Strawbridge & Clothier, Philadelphia, and who has downs on his sales.
made a remarkable success in that department, is
If the dealer is interested enough to give this retail control
" possessed of some modern ideas on stock control that system a chance to operate in his store, he will be surprised at
are as interesting as they are unusual but at the same time the simplicity of the plan, and the warnings that this method
having proven their practicability in actual practice. Whereas will give him will more than repay the amount of time that
the average dealer inventories his stock at wholesale cost and it takes. It is very simple if the dealer would start out the
figures on that basis, Mr. Reardin's plan calls for the charging first of the month on a retail merchandising method as follows:
of stock on a retail selling price basis that includes all costs
First: If he will go through his entire stock of new pianos
connected with the instrument until it is actually placed on and place a price on them at retail, that would give him the
the wareroom floor.
amount of dollars that his stock represents.
In an interview with T H E REVIEW, Mr. Reardin outlined
Second: He will have before him the figures of the past two
his advanced ideas on stock control somewhat as follows:
years that he can compare to in the way of stock and the way
The proper control of stock is something to which the aver- of sales for each month that will enable him to set up a plan
age piano dealer does not give much thought so consequently for his purchases and sales six months in advance. If he cannot
he does not get the proper turnover on his investment. The operate with the following mechanics, there is nothing wrong
following brief outline will give the dealer, who is interested with the piano business, I would say it was his methods.
enough in facing the facts, a picture of his business, and the
Merchants should make 50 per cent mark-up, which should
majority using the old-time methods will be surprised if they include the freight, bench and the cartage to his floor, which
will take the time to analyze their business as outlined.
is all cost to merchandise. He should not exceed 10 per cent
A successful piano dealer's stock should
mark-down on his retail sales, which gives
be handled from a retail selling price basis
him a 45 per cent gross profit. If he will
instead of wholesale as is customary in the
anticipate a 10 per cent mark-down on
piano trade. If the dealer will take his
every retail sale, this will enable him to
business at retail for the months which
destroy two-thirds of the old pianos taken
constitute his fiscal year, say January to
in exchange, also it will allow him an
December 31, for the year of 1929 and
anticipated amount for the trade-in. The
set down the amount of stock at retail
dealer should turn his stock at least three
that he had on hand at the end of each
times at retail.
month for the year 1929, then he can ar-
These figures might sound complicated
rive at the average stock that has been
but until the piano dealer quits buying
necessary for him to carry to do the
pianos at $300, forgetting to add the
amount of business that he did in 1929.
freight and the bench to the cost price
For comparative figure if he will set
and then selling this piano at $450, figur-
down the same figures for 1930, he can
ing he has made $150, our piano business
check these two years against the other.
will continue in the eyes of merchants and
Next, if he will have his bookkeeper, after
banks as a disease instead of a business.
they have the stock at retail, supply him
Most of our dealers are really in the
with the sales for each month at retail for
second-hand business and do not know it.
these two years, he will get another com-
They have taken in, at a fabulous price,
parative viewpoint, that will be surprising.
old pianos without any anticipated mark-
Next, if he will have the figures sup-
down or have made no plans in advance
plied to him broken down into each month
as to what they are going to buy and sell.
for two years to show him the difference
The majority are still invoicing as an asset
between what he sold this merchandise
a bunch of old pianos that a lot of people
would not take as gifts.
for, less than he expected to sell it at the
s. A. REARDIN
THE
MUSIC
TRADE
REVIEW,
December,
1931