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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.