Music Trade Review

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"At the manufacturers level you permit variations in posed of new members, made up fiom a drifting labor
price depending upon their operating experience. It is population which is becoming readjusted to peacetime
unthinkable that the piano merchant in Chicago can op- endeavors and which is far from becoming stabilized. And,
above all before there can be anywhere near a normal
erate at the same margin as one in Borea, Kentucky."
After going into a brief history of piano pricing begin- production the piano plate problem must be solved. All
ning early in 1944 and pointing out that "The traditional of which lead up to the point—that dealers had better
mark on previously reduced to 44% under order 2525 fortify themselves with reconditioned pianos, enough for
was reduced to 34%, according to our estimate, at least at least the next six or eight months.
8% below the average cost of doing business." he continued;
'"Twenty-two months have elapsed and there is still no
Tuners Should Boost the Spinet Piano
final price policy with respect to pianos. If it takes that
~V"0W that we are entering a new era for the piano.
long to re-establish a $20,000,000 industry I shudder to
^ the tuner can be invaluable to increased sales pro-
think what will happen to such complex industries as
^ viding he will develop the proper attitude toward
radios, automobiles and some of the other very large con- ^
the spinet type piano. We could never understand why
sumer durable goods items.
"Mr. Jacob, I have just carefully re-read Revised Order tuners have not realized that this modern type of piano
2525, issued on Februarv 26, apparently the studv you is the one that put them back on their feet again, after
refer to in your letter of November 25. The table published the piano depression. The spinet piano is here to stay.
in the opinion accompanying Revised Order 2525 gives In fact it will constitute over 80% of the post war piano
the result of your survey for the year 1939, 1941 and 1943. business for sometime to come. Therefor isn't it time that
We have been making our studies on the basis of 1941 tuners wake up to this fact and adapt themselves to a
operations because all of OPA's pricing policies are based situation which will prevail and put extra money in their
upon maintaining 1941-42 price levels. That is the last pockets. To "kill the goose that laid the golden egg," seems
full year in which music stores had available adequate to be a poor policy. If the tuning and repairing of a
spinet piano takes more time and effort then tuners should
supplies of new pianos.
charge
accordingly. But, by all means, don't "knock"
"The 1943 operation, as you know, was not typical. For
because
you are not going to hurt spinet production as
the most part it represented sales of used merchandise,
much
as
you are yourself. One dealer who has written
much of which had been taken in trade at substantially
us
believes
dealers can help the situation by having heart
lower prices than the same merchandise is now available
to
heart
talks
with their tuners and that if they cannot
on the current market. It represented sales costs and pro-
"see
the
light,"
start a campaign for new blood in the
motional exoense far below normal operating costs be-
service
end
of
the
business. A word to the wise should
cause promotional merchandise was not available. I am
be
sufficient.
sure that you will not deny that the availability of new
pianos will require a reinstatement immediately of all
traditional retail operations including store promotion. Yet
Teachers Might Take Heed Also
on the basis of your own figures, which we do not recog-
HERE has also been a tendency on the part of
nize as representing a typical store operation (we protested
piano teachers to "knock" the spinet type piano,
from the very beginning that they were not representative
yet it was the spinet piano which brought back
figures for 1943). net income, before taxes, of only 17.7%.
\owhere in the report do I find any reference to 20%. their livelihood. We have heard of instances where teachers
Twenty percent before taxes is quite different from the net who have been called upon by a prospect to pass on a
realized profit of an operating merchant. No Mr. Jacob, piano the latter was planning to purchase, have deliberately
killed the sale. Although teachers may prove of some assis-
this does not answer our question."
tance, we believe that the National Piano Manufacturers
Association could do no better than to inaugurate an
Delays Are Bound to be Numerous
educational campaign both for the public and teacher's
the above it should be realized by dealers that benefit pointing out that the spinet type piano is here to
piano production cannot be speeded up to any great stay and exploiting its many advantages which outnumber
extent. This is only one example of delay and un- by far any disadvantages a "knocking" piano teacher
less pianos should be suddenly taken off the controlled list or tuner can conjure up.
progress will be slow. A well-known columnist in a large
metrolopitan newspaper has predicted all controls by OPA
will be off by June of next year. Let us hope that is true
and also that now OPA admits it used the piano industry
as a "guinea pig" for pricing, that it will do the same by
eliminating pianos from the controlled list first. But
should this happen the speed of production will still be
retarded in many factories due to the uncertainty of an
adequate factory force which in many cases must be com-
THE MUSK: TRADE REVIEW. OCTOBER, 1945
EDITOR
II