Music Trade Review

Issue: 1933 Vol. 92 N. 1

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
EDITORIALLY SPEAKING
MANUFACTURING TRADE ADJUSTS
ITS AFFAIRS TO CURRENT CONDITIONS
W
H A T are the manufacturers in the industry do-
ing to meet the business situation as it exists and
promises to develop during the present year ? The
majority are not predicting anything; they have
gotten well beyond that point and are devoting their energies
to a continued adjustment of their affairs in order to meet
any new problems that may come before them. The situation
is particularly well summed up by one manufacturer who says:
"We have stopped looking for the return of a 'normal' year
and have gotten ourselves on a basis of expense both in manu-
facturing and selling where a comparatively slight improve-
ment over 1932 will give us a very much brighter outlook."
This seems to be the consensus of opinion among a majority
of the manufacturers. They have sailed into the new year
close hauled and ready for a continuance of stormy weather
but are quite prepared to take advantage of any general im-
provement. In most cases they are working with skeleton
staffs in order to cut overhead down as much as possible and
thus produce instruments at a unit cost in keeping with today's
price requirements.
It is significant that the couple of manufacturers who last
year showed sufficient courage to revamp their lines and
introduce new and economical manufacturing methods have
been rewarded with a sufficiently large share of existing busi-
ness to compensate them in some measure at least for their
foresight. It is proven that although marking time may pre-
serve assets to a certain extent a careful investment in new
equipment and new products has the added advantage of
increasing sales and keeping the manufacturer well in the
forefront.
NEW MERCHANTS ASSOCIATION
CAMPAIGN HAS REAL TEETH
F
OR several years now there has been considerable agi-
tation against those manufacturers and wholesalers of
band and orchestra instruments who make a practice of
selling to schools and other institutions in competition
with the local dealer and at discounts with which he is unable
to compete. The majority of the manufacturers and whole-
salers have disclaimed responsibility and have placed the
burden on the dealer, claiming that he refused to carry an
adequate stock of merchandise to take care of the normal
requirements of his territory. That is the excuse for the direct
competition, yet in a goodly number oi cases it is found that
dealers who are well stocked and competent to furnish first
class service find the business taken from them by the manu-
facturer or wholesaler who is greedy for all the profit.
The problem has been threshed out repeatedly in conven-
tions and at other trade gatherings but evidently these vari-
ous discussions have had no serious effect in remedying the
condition. Now comes the National Association of Music
Merchants in an effort to protect the dealer against the direct
selling of the manufacturer and wholesaler. The preliminary
gun was fired in T H E REVIEW last month but the article
presented only the highlights. The Association officials are
distinctly in earnest. They have gathered facts and figures
and have come before the manufacturers and wholesalers with
definite charges that will prove hard to deny. An effort is
being made to place the manufacturers on record as op-
posed to the direct selling practice, and it is significant that
in most cases those who protest most bitterly about the asso-
ciation activities have been found to be those concerns most
complained about by dealers.
The campaign launched by the Music Merchants' Asso-
ciation is not simply a gesture, for, although earnest attempts
are being made to meet the situation through friendly con-
ferences, steps have also been taken to enlist the assistance
of the authorities in Washington if other means fail. With
business conditions as they are today in the music trade and
with the importance of adequate retail outlets more strongly
emphasized than ever before there should be no effort made
to force final action and the consequent publicity, till all other
measures have been tried. However, the outcome of the
whole matter will be watched with much interest from all
sides, the dealers being particularly energetic in the support
of the association's activities.
It is unfortunate that the movement is necessary, but a
final decision must be made some time, so why not now? Is
the dealer going to do the bulk of the business in his territory
or are the plums to be grabbed by the manufacturer and
wholesaler? The decision has an important bearing on the
future distributing activities of the trade.
GREAT BRITAIN SHOWS THE WAY
IN KEEPING UP PIANO BUSINESS
A
CCORDING to the best available figures regarding
piano production in the United States and Great
Britain for the year 1932 this country has little
to be proud of. With a population of considerably
less than half that of the United States to offer a market,
the actual production of pianos, including a goodly number
of players, was approximately twice as great in England as
in this country.
It might be well for piano men still interested in the indus-
try and its future to study the situation with a view of deter-
mining the reason for the difference. Certainly Great Britain
is not prosperous, having been on the dole for some years
before 1929 when the cyclone hit this country. Taxes in
England are higher and money not so plentiful, as a rule,
yet her new piano figures for the past year top ours by two
to one.
If every rated piano dealer in the United States sold one
more new piano each month in 1933 than in 1932 the result
would mean a practical doubling of last year's factory out-
put, which was exceeded some years ago, as a matter of fact,
by the production of each of several individual factories. An
average of one new piano for a thousand homes in the nation
during a year is certainly not a very high record. This, of
course, does not take into consideration the sale of many
thousands of used pianos, either repossessed or purchased out-
nVht for resale. It is estimated that between four and five
THE
MUSIC
TRADE
REVIEW,
January,
1933
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC
TRADE
REVIEW,
January,
1933
used pianos were sold in this country during the year for
every new one.
We have no figures regarding the sale of used pianos in
England but as the concern of the moment is new pianos,
those figures do not matter. The question is why can English
manufacturers and dealers sell twice as many pianos in a
poor year to a population of only forty per cent of ours ? The
facts give pause to those who proclaim American business
efficiency.
must rebuild from the bottom up and will be under a distinct
handicap as compared with those who have kept at least some
beacon light of advertising lit constantly. Some excellent com-
ment on this question was recently offered by the Peck Adver-
tising Agency of New York who, under the caption, "Don't
Sell Your Trade-Mark Short," said as follows:
"Dear old Economy . . . what sins are being committed in
thy name! And the amazing thing about it is that the sinners
are otherwise sane, progressive, far-sighted business men. Are
you, too, an unconscious victim of the present-day epidemic
of unsound curtailment? Are you, too, blindly following the
DON'T SELL YOUR TRADE-MARK SHORT
sheep who are acting 'penny wise and pound foolish' to the
BY SKIMPING ON ADVERTISING
eventual downfall of their business? To the manufacturer
D M I T T E D L Y these are days for economy and of a trade-marked product, the lessening of advertising expen-
for watching all types of expenditures very closely, diture may only too clearly point the w r ay to future disaster,
yet there is a wide difference betw r een real and false not merely in an immediate dip in sales, but . . . of greater
economy, the sort that makes the stability of a busi- importance . . . in the permanent loss of consumer acceptance.
ness and the other type that, persisted in, will undermine its As we see it, the trouble lies not with a curtailment, itself,
foundation.
but rather in the manner in which the lesser appropriation is
Take advertising as an example. Many companies have used. Fewer dollars may mean a thinning of advertising
found it wise to curtail which, on a sane basis is a proper step, effectiveness, whereas the same fewer dollars, wisely spent,
but others have become panicky - and eliminated their adver- may do the work of many.''
tising altogether. The result is that they are surely but
not so slowly passing out of the eye and mind of the trade
and public. The reputation and business prestige which they
have developed over a period of years and upon which they
have spent thousand's of dollars in publicity are thrown into
the discard. As a consequence, when conditions change, they
A
WHAT IS THE FUTURE FOR THE PIANO DEALER
SOME GENERAL COMMENTS
N
O T in many years has there appeared in a music trade
paper an article that has aroused such wide interest
as that appearing in last month's REVIEW from the
pen of Walter L. Bond, secretary and treasurer of
the Weaver Piano Co., York, Pa. "What is the Future for
the Piano Retailer?" asked Mr. Bond and then he proceeded
to present his views based on actual and successful experience.
The piano trade, he declared in substance, has not only suf-
fered from the indifference of many of its members but has
also been a victim of attacks from without by representatives
of other industries who saw in piano dealers excellent repre-
sentatives for their own particular products, whether they be
electric refrigerators or other specialties.
Mr. Bond pointed out that many of the present-day troubles
of the piano trade can be laid to the door of indifference on
the part of manufacturers and dealers who saw such quick
profits in player pianos that they neglected almost entirely
the work of encouraging children to take piano instruction.
For years they told the public that the piano could be played
automatically and without training and almost when it was
too late turned about face and devoted themselves to the child
appeal. That the results, in the matter of greatly widened
interest in piano playing, have been as extensive as they are,
even in the face of existing conditions, emphasized the will-
ingness of the public to accept that doctrine at its real value.
So wide has this interest grown that people who sold their
pianos some years ago have been converted and are buying
other pianos to fill the vacant spots in their home equipment.
It is time for the dealer who has faith in the future of the
piano business to take inventory. As Mr. Bond says in closing:
"If the above statements are 'facts' the piano retailer should
muster all of his enthusiasm and ingenuity and integrity, to
sell the maximum number of pianos during the balance of
this depression. Retailers in all lines are fighting for their
commercial existence. T o survive in business seems to require
faith in the future, a love for the business and courage to fight
the battles that are necessary. The faith that is required must
be an enthusiastic expressive faith. The love for the busi-
ness must be founded upon a substantial respect for the benefit
derived by those who study and use the piano. Courage to
carry on must be accompanied by energy directed at the sale
of pianos.
"Is it not, therefore, time to take an inventory of the future
possibilities of the piano and to determine if there are fallacies
in the reasoning contained in this article and to add to this
article any other pertinent facts?"
The many letters received by both Mr. Bond and at T H E
REVIEW office from dealers as well as manufacturers all show
a hearty accord with the sentiments presented. That is as
it should be, but the question now is what is going to be done
about it? Simply to agree that there are genuine possibilities
in the piano business means nothing unless a really earnest
effort is made to capitalize those possibilities. What some of
the members of the trade think of Mr. Bond's views may be
gleaned from the letters reproduced on page 8 of this issue
of T H E REVIEW.

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