Classic Mode

Music Trade Review

Issue: 1931 Vol. 90 N. 3

Page 8 Text:

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
EDITORIALLY
DEALERS AGAIN SHOWING
INTEREST IN NEW PIANOS
\.
;
I
F the interest of the dealers means anything, then the piano
business is in for a marked improvement within the very
near future, for in both the New York and Chicago mar-
kets there have been reported an increasing number of retail
dealers looking over lines of instruments, and generally mak-
ing arrangements for future deliveries. The orders have not
been large, and there is little evidence of carloads shipments,
but nevertheless orders have been and are being placed, and
that in itself is a good sign that the retail end of the business
is looking up.
In addition to the dealers who are calling on manufactur-
ers, there is reported an increasing number of inquiries re-
garding this line or that, and in a substantial number of cases
these inquiries are followed by orders. Not only are the
cheaper instruments receiving consideration, but the higher
grade products are likewise getting their share of attention.
It is generally reported that supplies of used instruments
are now pretty well thinned out, which fact alone is a matter
of general congratulation. There are still some dealers who
are looking for used instruments, but apparently with little
success, which will probably mean that they must resume the
selling of new products. It may not mean an overnight re-
covery in piano sales, but the sentiment is distinctly better and
the outlook generally much improved.
ALL SLAMS AT THE PIANO
ARE NOT OUTSIDE THE TRADE
E
VERY time the daily newspaper publishes an article that
reflects on the piano or makes fun of it, the members
of the trade rise up in indignation, write letters to the
editors and demand that the true facts be set forth. In fact
in many instances it seems that some piano men give much
time that might better be devoted to other purposes in looking
for attacks on their industry. This defensive attitude is all
very well if it is not carried to too great extremes, for the
inclination is often to exaggerate the importance of the
derogatory article.
While the piano man is quick to defend his industry against
outside comments, it is a remarkable fact that all too many
members of the trade do not hesitate to make equally
derogatory remarks within the confines of their own industry.
Just now, as always, the scandal-mongers are busy, and one
has but to travel around the trade to hear comments and
conjectures regarding the financial stability of this or that
concern, of how this or that manufacturer is losing business,
of the changes and possible changes in personnel, and so
forth. Then, too, we find the men still in business who talk
of it with all the enthusiasm of a man who has just been ad-
vised by his doctor that he has three months to live.
It is to be granted that the business situation is not, and
has not been for some time, of a character to arouse great en-
thusiasm, but the members of the trade must remember
that if they themselves feel free to disparage piano business,
they are in no position to resent similar comments on the part
of the daily press. We have all heard of the families who,
8
while always fighting among themselves, never fail to unite
on common ground against outside interference. The unity
at a critical stage may be admirable, but it doesn't save the
family's reputation for being disorderly.
The same rule
applies in business.
THE AMERICAN PIANO CO.
CREDITORS PAID IN FULL
L
AST month the creditors of the American Piano Co.
were sent by the receiver, the Irving Trust Co., final
checks in full settlement of their claims against the com-
pany, and it was stated that after this full settlement was
made there were still some assets left for distribution among
the stockholders. This was good news not alone to the men
involved with the company, but to the trade at large, for it
reflected the stability of the piano business when properly
handled. The Irving Trust Co. takes particular pride in
its record in this particular case because it is the first instance
since this bank has been acting as receiver that creditors have
been paid in full, and certainly in the music trade such a
culmination of a receivership is a rarity. Perhaps our memory
fails us, but it seems as though the last corresponding incident
was some score of years ago when the Detroit Trust Co. made
a similar record in the Karrand case.
When the American Piano Co. was placed under receiver-
ship it was stated that assets were considerably in excess of
liabilities, but were so frozen that cash w T as not available for
carrying on the business. The same claim has been made in
many other cases but not always so well substantiated.
The cleaning up of the company's affairs is a matter for
general congratulation. Given proper publicity it reflects
to the credit of the trade as a whole, and moreover will make
the road much easier for those who had the courage to take
over the company's affairs and organize the American Piano
Corp. It proves that the piano business is still a business.
WHAT IS THE DEALER DOING
ABOUT RADIO PIANO LESSONS?
y
OU piano dealers in cities of 25,000 population and
larger and in the smaller communities too, what are
you doing and what are you going to do to tie up with
the national broadcasting of piano lessons, the introductory
programs of which have been under way for several weeks
with the actual lessons to begin in April? The Music In-
dustries Chamber of Commerce, the National Association of
Music Merchants and other organizations in the trade are
working hard to develop a program that will be practical for
the average dealer and within a moderate price range, but all
that preparation will be of no value unless the individual
music merchant builds up the proper background in his own
community.
The broadcasting of piano lessons on a countrywide basis
is either going to be the greatest success or the greatest failure
ever experienced by the trade. The opportunity is there.
The broadcasting company is doing its work. The trade
organizations are cooperating, and it is up to the dealer him-
self whether, through his efforts in his own community, he is
THE
MUSIC
TRADE
REVIEW,
March, 1931

Page 9 Text:

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
SPEAKING
able to capitalize this vast amount of publicity. One lone
pair, Amos 'n' Andy, have been able to influence millions of
people to buy tooth paste, brush their teeth, and run to den-
tists. Ask your own dentist about this. If several thousand
music merchants cannot get at least comparable results from
a year's broadcasting of piano lessons, then the pessimists in
the industry have something to laugh about.
THE LOW-PRICED PIANO
MEANS A SPECIAL PRODUCT
T
HERE is only one legitimate excuse for producing low-
priced pianos and that hinges on the possibility of creat-
ing so large a demand for the instrument that production
can be increased materially while the overhead remains prac-
tically stationary. To shave wholesale prices to the bone with-
out getting volume is in most cases just a forward step
toward a receivership, or at least a liquidation.
There are those who insist that many of the troubles of the
piano men hinge on the fact that the public hesitates to pay
the prices demanded for instruments. It might better be said
that the mass market is not receptive, for even in these lean
times those with a proper appreciation of piano quality and
who are financially able to do so are buying higher-priced
instruments. Undoubtedly such buying will increase as the
situation improves. It must be remembered at the outset that
the piano business for the most part did not participate in
the post-war inflation and is therefore not in a position to
stand any great deflation, such as occurred in other lines of
business in a position to keep going on good times surpluses.
We recently saw some figures regarding the industry that
were most illuminating. Despite the material reduction in
the production of pianos in 1930, for instance, the unit value
was lower than for any year since 1923, at which time the
volume was sufficient to justify small unit prices. It is
significant, too, that although the output during the eight
years dropped practically two-thirds there was a shrinkage of
only one-third in the capital tied up in piano manufacturing.
In other words, the piano has to work twice as hard to bring
a proper return on the capital invested, and that certainly
cannot be done by reckless price cutting.
There are individual concerns and organizations in the in-
dustry with the facilities that enable them to produce in quan-
tities that keep unit costs down, but they are few and far be-
tween and smaller manufacturers who attempt to meet these
quantity production figures on a limited production basis are
simply turning themselves into good customers for red ink.
We hear frequently that the bulk of the "decrease in piano
volume is due to the decline of the player-piano. It has,
actually, meant a falling off of over 125,000 instruments dur-
ing a comparatively few years, but that is not the whole
story. Each of those player-pianos had a higher unit value
than the straight instrument of the corresponding grade, and
offered a profit both on the piano itself and the player action.
In terms of straight pianos that 125,000 loss increases heavily
from the dollar and cents standpoint, yet the straight piano
must be depended on to pay dividends on capitalization that
formerly took care of player production. That cannot be ac-
complished by shaving the unit price to a dangerous point.
THE
MUSIC
TRADE
REVIEW,
M a r c h , 1931
There is no question that there is, or shortly will be, a field
for pianos marketed on a mass production basis—for grand
pianos that have a quality standing and can yet be sold cheap
enough to appeal to the market that in years past confined
itself to the purchase of uprights.
These instruments,
however, must be produced with that point in view, for the
situation cannot be met by offering high-grade units at profit-
less prices.
GROWTH OF MUSIC APPRECIATION
HAS DEVELOPED DESIRE TO PERFORM
W
I T H I N the next couple of months—from May 3
to 9, inclusive—there will be held the eighth an-
nual observance of National Music Week, which
event, from a small beginning that was regarded in some
quarters as a fanciful dream on the part of the originator,
has developed to a point where it has come to be regarded
as an annual institution.
In connection with the Music Week observance, as well
as both before and after it, there will be held in various
sections of the country and in almost every State numerous
school band and piano-playing contests and other events of
like character, in fact, the school band contests have grown
in popular favor to such an extent that close to a thousand
bands participate annually in the National contest in one
way or another.
The Music Week celebration and these contests of various
sorts offer a fitting answer to those who question the prac-
ticability of the present great interest in music in America,
measured in terms of potential markets for instrument sales.
They are inclined to criticize the commercial value of music
appreciation, but fail to take into consideration the fact that
this appreciation, particularly in the case of the younger
generation, is taking the form of the strong desire to play
musical instruments.
Although Music Week takes up only a small part of the
year, it serves to crystallize its musical interest in a manner
that is bound to impress the public. We find, for instance,
that President Hoover has again consented to lend his name
to the Music Week celebration as honorary chairman, and
that eight new State Governors have joined the ranks of the
majority of State executives on the honorary committee of
Governors, while musical organizations, business men's clubs
and community groups are already arranging local programs.
What an opportunity this offers the music merchant to
tie-up with the musical people of his community both young
and old under most favorable conditions. The success of
that tie-up depends chiefly upon his willingness to become a
leader in the Music Week celebration and other similar
events. It will require the expenditure of considerable time,
money and earnest effort, but the returns in the nature
of prestige and actual business should more than compensate
him for his sacrifice.

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