Music Trade Review

Issue: 1931 Vol. 90 N. 9

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
EDITORIALLY
HAND-TO-MOUTH BUYING
MEANS HAND-TO-MOUTH SELLING
BAND AND ORCHESTRA INSTRUMENTS—
W H O IS TO SELL THEM—AND HOW?
H
T is about time that manufacturers and dealers in band and
orchestra instruments came to some understanding as to
territorial rights and terms, particularly with a new school
season in the offing and the opportunity it presents for the
organization for new instrumental groups. Either the manu-
facturer should sell direct entirely and eliminate the dealer or
he should not sell at all except through the dealer. There is
no middle course—no compromise.
Within the past decade, which has witnessed the greatest
development in school bands and orchestras, the music trade
of the country has lost hundreds of thousands of dollars in
potential profits through the desire to install band equipment
by every possible means and with profit as a secondary con-
sideration. Under existing conditions the amateur market
represents the greatest and livest outlet for band and orchestra
instruments, yet the competition for this market has rested
principally upon the discounts that could be allowed.
Manufacturers declare that the majority of dealers do not
carry sufficiently representative stocks to take care of local
band requirements, yet when the dealer does invest his capital
in a complete wareroom stock he finds the manufacturer or
the jobber, with some few notable exceptions, underbidding
him for the sale wherever possible, often offering a discount
almost as large as that given him as a dealer, although he
must maintain his store with his stock, sales and service de-
partments. We have known cases where dealers lacking a
few instruments desired for a new band have gone to great
lengths to get them surreptitiously for fear that a direct call
to the manufacturer would mean the loss of the sale.
The discount situation has reached a point where school
musical authorities have developed into poker players, the wel-
fare of the youngsters and the quality of the instruments
taking second place. If the band and orchestra instrument
trade are engaged simply in educational work of an altruistic
nature, well and good. If its members are in business for a
profit then get that profit, whether it comes from the school
band or the individual musician. And the time to start is now,
at the beginning of a new school season.
A N D - T O - M O U T H buying may serve the immedi-
ate purpose of cutting down inventory and bills pay-
able but in the long run the evils growing out of the
practice frequently outweigh, by a large margin, any
possible benefits. This is quite evident in the music trade as
well as in practically every other line of business as retailers
persist in carrying as small a stock as possible and keeping
their replacement purchases at the lowest figure.
Retail piano stocks throughout the country have been at
rock bottom for months with many dealers depending upon
used instruments and repossessed stocks for sales. Where they
have managed to sell some new instruments it would appear
that they ordered only one new piano after two had been dis-
posed of at retail. To all intents and purposes they have been
in the second-hand instrument business, and quite content to
remain there.
The fallacy of the practice is evident upon a visit to many
stores—fortunately not the majority. The used instruments
shown on the floor outnumber the new pianos two to one: in
fact in one store visited recently, which advertised several
excellent makes of pianos, there were just two new grands,
three new uprights and at least a dozen used instruments of
various ages. What is there about a showing like that to
stimulate interest in new piano buyers? Does the dealer
really feel that he can sell a new grand, sight unseen, by
demonstrating an old upright or close a deal for a parlor grand
by displaying the tonal qualities of a four-foot-six instrument
even of the same make? If he can, then he is a super-sales-
man; a very rare individual in the trade.
If the dealer really has the desire, and the financial re-
sources, to take the piano business seriously, then he should
carry on .hand a representative stock of new instruments for
display and sale and relegate his used stock to warehouse or
basement where it will be available but not conspicuous. The
more representative and attractive the stock the easier the sale.
It's not good business to ask the customer to wait until the
desired piano can be obtained from the factory, unless it is
designed to special order. Many a sale has been lost by such
tactics.
Hand-to-mouth buying really means that the dealer expects
the manufacturer to carry the stock burden—to make up vari-
ous styles of pianos and have them on hand for rush orders.
When there is a delay in shipment the manufacturer is blamed,
little consideration being given to the fact that if he carried
a representative stock in his factory at 'the call of fifty or a
hundred dealers, the investment would prove ruinous. The
small irregular orders slow up the factory, make economic
schedules impossible and add materially to the production
expense. Yet they talk of lower piano prices.
The dealer who will invest his money in a decent stock of
new pianos is going to be a better and more successful salesman
for he will have the incentive to move that stock and get a
quick return on his capital. Where there is no such incentive
selling lags. Buying only as pianos are sold means drifting
with the tide, and there is too much of it.
I
CONCENTRATE ON HIGHER-PRICED
RADIOS TO MAKE A PROFIT
N
UMEROUS music merchants who have been in the
habit of dealing in comparatively large units, with
average sales running well over a hundred dollars
on new merchandise, have become discouraged with
the present trend of the radio market and the apparent inclina-
tion of radio manufacturers to see how much they can offer
for a minimum price, particularly in midget sets. They
declare, and rightly, that there is no profit to be realized in
stocking, selling, installing and servicing a radio receiver at a
price considerably less than $100 and often on an instalment
basis. Were they simply dealing in such merchandise exclu-
sively they could be callous regarding the customer's good-
will and let him take care of himself after the sale is made,
but as music merchants they are compelled to keep the buyer
THE
MUSIC
TRADE
REVIEW,
September, 1931
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
SPEAKING
in a frame of mind that will encourage him to give them all
his music business.
On the face of it the situation is discouraging, but how
much of the trouble is due to the dealers themselves? Read
the average radio advertisement and what does it say? Most
likely something as follows: "Fine seven-tube radios—screen-
grid and pentode tubes, dynamic speaker, walnut cabinet, only
$39." In short, it is the sort of advertisement that is cal-
culated to establish the price of a fine radio at $39 in the
public mind. Why does not that same dealer—in search of
large unit and profitable sales — advertise the higher-priced
models of the lines he handles, offering the cheaper types to
those who insist on buying them and cannot afford better?
He will argue, perhaps, that his low-priced competitor will
get all the business. Perhaps he will get all the cheaper run,
but if the music merchant is a salesman he should get his
full share, and more, of the sort of sales that count.
Grand pianos at a thousand dollars and more, banjos and
guitars at $250 and up, band and orchestra instruments at
well over $100 each are being sold regularly and in substantial
quantities and yet we know that there are many low-priced
products in all these lines. Why not a concentration on
quality radios in music stores? Let the other fellow get the
cheap trade with little or no profit.
SHEET MUSIC DEPARTMENTS
BRING PROSPECTS AND PROFITS
R
EPORTS from prominent wholesalers of sheet music
are to the effect that the advice given by President
Heaton of the National Association of Music Mer-
chants at the recent convention in Chicago, to the
effect that a sheet music department should be a feature in
every music store, is being widely heeded.
As a matter of cold fact a recent survey made by T H E
REVIEW indicated that approximately sixty-five per cent of
general music merchants—those handling pianos, musical mer-
chandise and other lines—already operate sheet music sections,
and the percentage is steadily on the increase. It has been
demonstrated that those who give proper attention to such
departments, carry representative stocks and provide compe-
tent staffs, find that the sheet music counters not only pro-
vide prospects for other departments in the store but prove
worthy profit producers in their own right.
It is no unusual thing for a sheet music department in a
general store to handle a volume of business amounting to
$40,000 or $50,000 or more annually, but this can be done
only when the department is operated as a business in itself
instead of as a necessary evil. As a means of contacting the
teachers and music students of a community, who are the
chief buyers of musical instruments or have much influence
on sales, the value of a sheet music department equipped to
give intelligent service cannot be denied. The stock, however,
must not simply consist of odds and ends but must be so com-
plete that at least ninety-five per cent of demands for stand-
ard and teaching pieces can be met on the spot. When the
dealer must send to the publisher for the bulk of request
numbers and the purchaser must wait for a lengthy period to
get the material, then failure is in the offing.
THE
MUSIC
TRADE
REVIEW,
The same rule holds good in the matter of popular music.
Certainly there is a great mass of it published, good, bad
and indifferent, but the sheet-music buyer competent to handle
his or her job should be able to select those prints that are
likely to prove most salable. The service rendered by jobbers
makes it possible to stock small quantities of a variety of num-
bers at modest wholesale prices and the turnover is rapid.
The customer who buys a musical instrument in a store
should expect, logically, to be able to purchase music to go
with the instrument at the same store, for one is practically
useless without the other. It is the music that makes the
instruments worth while.
DON'T LET TELEVISION INTERFERE
WITH PRESENT-DAY SALES
T
HE announcement by the Radio Manufacturers' Asso-
ciation that there is no chance of television being seri-
ously considered by the members of that organization as
a commercial factor for at least two years and probably
longer is certainly a step in the right direction, for it should
serve to put an end to the persistent rumors that television
for the home is just around the corner.
There is no question but that great progress has been made
in the new art but it is still far from 'being commercially
feasible and although television receivers have been and are
being offered for the home owner they are chiefly in the
nature of experiments- and are to be considered from that
angle.
The many retailers who, handling radios, have been uncer-
tain of their position, fearing that the sudden introduction
of television sets would make their present receivers obsolete
and cause heavy losses in inventory, should find much satis-
faction in the statement of the radio manufacturers.
REVIEW'S CENSUS INFORMATION
IS HIGHLY COMMENDED
T
HE REVIEW has received a number of messages of com-
mendation on the presentation, last month, of the figures
compiled by the Government in the 1930 Census of
Distribution, as they apply to thirty-one of the leading
cities of the country. Requests for similar figures relating
to cities and towns not included in T H E REVIEW presenta-
tion have come in from various sections of the country and
have been answered by mail as fully as possible.
As was stated in the article on the Census, T H E REVIEW
has on file the figures covering several hundred cities and
towns, as well as a majority of the State figures, and we shall
be glad to forward to readers information regarding such
communities or States as they are particularly interested in.
This is a regular part of REVIEW service, this paper being the
only one to make such information directly available to the
industry.
September, 1931

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