Music Trade Review

Issue: 1945 Vol. 104 N. 3

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The
REVIEW
Established 1879
CARLETON CHACE, Editor
Alexander Hart
N. R. Rapp
Technical Editor
Associate Editor
Bet+y B. Borin
Circulation Manager
Published monthly at 510 RKO Building, Radio
City, 1270 Sixth Avenue, New York 20, N. Y.
Telephones: Cl rcle 7 - 5842 - 5843 - 5844
Vol. 104
MARCH, 1945
No. 3
it was to go into effect on February 27th, the very day it
appeared in the newspapers. This meant that manufacturers
must put price tags on their pianos that day. Naturally
having no warning they had no price tags. The announce-
ment was so vague that dealers all over the country were
thrown into a dither trying to find out where they were at.
We called the OPA in Washington and pointed out what
confusion had been caused by such a summary action
with the result that on February 28th we were advised by
telephone by E. W. Herlimann. head of the OPA pricing
division for musical instruments, that a mistake was made
in issuing the order and that in that part of the order
which read "becomes effective February 27. 1945" it
should have read "becomes effective April 1, 1915." The
telephone companies all over the country profited more
by that mistake than anyone, as dealers were calling manu-
facturers and the trade press from everywhere trying to
find out what it was all about. In view of the fact that
we were advised by the OPA that it would be some time
before the general order would be distributed we mailed
to all REVIEW subscribers a digest of the pricing and a
complete copy of the order.
Business —As We See It
OOKS as if the piano industry has, at least for some
time to come, been forced into operating on a list
price basis. According to the revised order 2525,
MPR 188, issued on February 26 by the OPA, piano
manufacturers must now place retail price tags on all
pianos shipped after April 1st. No more will the same
piano be marked one price in one
store and another price in another
store further up on Main street. No
more, also, will there be opportunity
of one dealer undercutting another
in order to make a sale. We suppose
that there will be those who will not
welcome this system but it has al-
ways seemed to us that it should
have been that way a long time ago.
Now, the opportunity has come to
give it a thorough trial and it may
Corleton Chace
be that after it has been in force some time dealers will
find that it has proved so satisfactory that it should be
continued even after the OPA goes out of existence, if it
ever does. Anyway, dealers and salesmen will now have
to be on their toes. With down payments, terms, and trade-
in problems well under control it all simmers down to
good salesmanship—and may the best man win. It will
be interesting to watch the result.
OPA Mistake Causes Confusion
ALTHOUGH the announcement of the price ceilings
/ = ^ \ on new pianos had been anticipated for several
-^- - ^ - months it came suddenly and was particularly
confusing. It was first announced in a short story in the
daily press on February 27th in which it was stated that
12
A Favorable Reaction in General
ENERALLY speaking the order was accepted
favorably. Those who sell pianos priced in the
higher brackets complained slightly until they had
analyzed the order carefully, then came to the conclusion
that it would not be so bad after all. We heard only one
complaint from a manufacturer who produces instruments
in the lower brackets who said that the new order lopped
off about 10% on two of his models and that he figured
that 99% instead of the 89%' mark-up would have been
fairer. However, this was more of a comment than a com-
plaint. Dealers, however, seem to feel that the pricing is
fair under the present conditons and above all that they
can now proceed to sell new pianos with greater confidence,
when they get them.
G
Be Fair with the
Manufacturers
y ]f NHE last few words of the previous paragraph "when
II they get them" prompts us to write a few words
just about that. Dealers must understand that
manufacturers are doing their best to get to the point
where they can have a steady flow of production. Last fall
it looked as if they might be able to do just that. Today,
however, the picture is different. The supply situation now
is not even as good as it was then. Action plants are again
employed in making gliders and other war materiel, only
one plate manufacturer is able to operate at about 20% of
capacity, steel and copper have again been curtailed for
civilian use and the lumber situation is worse than ever.
We have had it brought to our attention that certain piano
manufacturers don't even answer letters from dealers. This
may seem discourteous, probably is, but when a dealer
THE MUSIC TRADE REVIEW, M A R C H , 1945
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
doesn't hear from a manufacturer it's not because he doesn't
want to do business with a dealer—he just can't. He
hasn't the instruments to sell and can't tell the dealer when
he will have them. Furthermore, those manufacturers who
are making some pianos have made out a list of their
regular dealers and are allocating to them, in proportion
to what they had in 1941 and in proportion to the present
output of the plant, as many instruments as this will
permit. Every manufacturer who is again producing is
trying his utmost to take care of his oJd dealers first. This
is as it should be. The latter have been waiting a long time
and deserve first consideration.
Spinet Pianos — 40 Inches or Less?
E HAD so many letters from dealers after we
wrote a few lines, a couple of months ago, stat-
ing that a piano manufacturer had said that he
would not make a spinet piano under 40" high, that we
thought it would be a good idea to find out what other
dealers thought about it. In this issue we have reprinted
many of the replies we have received to the question
"Should postwar Spinet pianos be over 40" high?" It
is interesting to note that the great majority of dealers
believe that they should be. There are some, however, who>
feel that lower pianos have considerable merit and they
give their reasons. Undoubtedly manufacturers hear con-
siderable about this subject in private conversations but the
controlling factor of anything of this character is the de-
mand. If a manufacturer produces models of spinets of
more and less than 40" in height, and he finds that those
above 40" have the greatest demand it seems as if that
would be the instrument he would manufacture the most
of. -However, if there are spinets less than 40" and the
public demands them, then there must always be instru-
ments less than 40". On the other hand, if no spinets are
made less than 40" high and the public can't buy one. will
they buy just the same? You answer it.
Dealer Pays Freight to Railroad—
ISot to Manufacturer
NE of our readers was I kind enough to call us on
the long distance 'phon<
me the other day and point
out that we made a slijjl 'fit mistake in setting down,
on the Special Bulletin we sent our readers, the OPA
formula for ceiling prices on new pianos. He stated that
he had been to Washington and that OPA Officials there
said we were wrong but before we distributed the bulletin
the OPA officials in New York said we were right. We
think, however, that our designation of "The dealer pays
the manufacturer" should have been opposite the amount
before that to which the freight had been added as the
dealer usually pays the freight to the railroad and not to
the manufacturer. Probably would have been clearer if
we had quoted the follow ing from MPR 188:
O
THE MUSIC TRADE REVIEW, MARCH, 1945
Example: Calculation of maximum retail price for a new
piano. Spinet model piano shipped from New York City to
a state within Zone I.
(a) Manufacturer's March 1942 highest maximum
price to retailers exclusive of Federal excise tax
tax and freight
$175.00
(b) 13',< increase granted to manufacturers under
paragi'aph (b) or (c)
22.75
(c) Manufacturer's new highest maximum price to
retailers exclusive of Federal excise tax and
freight
$197.75
To this price is added the following:
(d) Percentage mark-up for piano under $225.00
(89'; of c)
176.00
(e) Manufacturer's Federal excise tax (10 r /v of c) 19.78
(f) Freight allowance for upright piano shipped in
Zone I
7.50
(g) Maximum retail price (Total of c, d, e, and f) . 401.03
(h) Maximum retail price appearing on tag. (Ad-
justed downward to the nearest dollar)
401.00
(1) Determination of mark-up to be included in the maxi-
mum retail price. If the manufacturer's highest maximum
price to retailers (exclusive of freight and Federal excise
tax), is:
(i) Not more than $225.CO, add 89'v of such maximum
price.
(ii) Between $225.01 and $338.00, add 8b r /< of such maxi-
mum price or $200.25, whichever is greater.
(iii) Between $338.01 and $564.00, add 79V. of such maxi-
mum price or $287.30, whichever is greater.
(iv) Over $564.01, add 757; of such maximum price or
$445.56, whichever is greater.
Record Promotion
for Music Week
V If "^ HE idea of promoting records during National
I Music Week appeals to us as being a smart one.
-^- In many instances it has been records and sheet
music which have kept a dealer in business. He hasn't
had many, if any. musical instruments to sell including
pianos, and experience has shown that he has not had much
success with lines foreign to his general run of business.
But fortunately the record business has prospered and
steadily grown. There was a time that musical instrument
manufacturers feared both the radio and records. That,
however, is long past. Statistics will show that both these
purveyors of music have helped tremendously the sale
of musical instruments and the contemplated promotion is
well timed.
Don't Forget to Send Your Answer —
E HAD planned to answer, in this issue, the
article written by Harry A. Glasser entitled "The
Piano Industry—Has it a Future or only a Past"
which was reprinted in THE REVIEW last month but, on
second thought, we feel it more advisable to withhold our
views until those who are writing answers have had a
chance to express their viewpoints. We have some interest-
ing answers already and hope for more. There's a
W T ar Bond at stake you know—so send in your answer.
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