Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
he has noticed considerable shopping people shop around more than usual
around in his city but "the best sales- hoping to find lower prices elsewhere.
"Today's prices are bound to be an
man sells the piano.':' This is inter-
obstacle
to sales if competitive mer-
esting from the standpoint that it was
not long ago that many dealers thought chandise is priced correspondingly
they would not need many salesmen lower. By competitive merchandise I
for many moons. This same dealer mean automobiles, refrigerators, ra-
has no fear of outside competition be- dios, and other articles for which the
cause he feels that prices will seek consumer has been waiting."
their level. His main criticism at the
Consumer Terms Must Be
present time, however, is summed up
Readjusted
in the following words: "Factories
A dealer on the Pacific Coast states
should protect piano dealers and not
that there is some price objection but
appoint new representatives that in-
it does not seem to be as great as in
tend to milk the business while busi-
normal times, even when prices were
ness is good and later drop pianos and
much lower.
musical instruments when the 'goin'
"It is difficult," he says, "to gauge
is tuff.' Too many manufacturers are
the
accumulative customer's resistance
appointing dealers who were never
to
the
new piano prices. We do not
in the piano business before and have
seem
to
feel any effects at present.
no regard for regular dealers. De-
It
is
true
that there is some price ob-
partment stores, sporting goods stores
jection,
but
it does not seem to be as
and anyone who will promise a lot and
great
as
in
normal times, even when
never live up to their promises seem
prices
were
much
lower. We have lost
to be getting a break. The music deal-
a
few
deliveries
on orders taken at
er was good enough when the sledding
the
lower
prices,
on account of the
was rough. But, there will come a
new
prices,
but
to
no serious extent.
time and I hope dealers will not for-
Our
new
orders
are
continuing at the
get."
increased prices to come in much fast-
er than the new deliveries which we
Believes Prices Too High
can make.
Another New England dealer has
"I do not think that people are
experienced customer resistance and
shopping
around and delaying pur-
says: "We feel that the piano prices
chases
hoping
to get lower prices to
are much too high since the OPA
any
greater
extent
than they would
released the music industry from price
in
a
normal
market.
ceilings; there is considerable custom-
"In regard to pianos at the higher
er resistance to the new r prices, and
prices
competing with other commod-
people are shopping around more than
ities,
when
they both become more
usual to get lower prices. We think
plentiful.
I
think that the tendency
it will materially affect the sale of
of
other
commodities
is to rise as
musical instruments, and some pianos
much
as
pianos.
Of
course,
if piano
are now selling higher wholesale than
prices
were
to
greatly
exceed
other
they were retailing before the war."
competing commodities in price rise,
Another dealer believes that any
it would probably react badly.
customer price resistance depends on
"I think that more important than
whether the customer knew what pre-
price,
is the matter of terms, and
war prices were.
where
we
have to compete with other
"You ask." he said, "if we find much
commodities
such as appliances, and
consumer resistance to the new prices
furniture
where
unit sales are lower,
of pianos, organs, etc. This rather de-
piano
sales
will
suffer
unless, we can
pends on whether or not the customer
give
terms
that
will
bring
the monthly
knows the price that pianos were sold
payments
reasonably
within
the fam
for a year and a half or two years ago.
With these customers, there is consid- ily budget."
erable sales resistance, but with the
average floor caller of today, they
don't seem to hesitate to pay present
day prices. We have not found that
Objects to Dealer Price Absorption
Another dealer who says he has not
found much consumer resistance to
new prices principally because there
is a shortage of merchandise does be-
lieve that manufacturers should not
ask dealers to absorb part of the in-
crease.
"One thing that has occurred to us,"
he says, "is that since ceiling prices
have been removed from musical in-
struments some manufacturers have
increased their price to the dealer but
are requesting the dealer to not raise
his in proportion to his increased cost.
In some instances the manufacturer's
list price on his line has increased CO
to 100 per cent with a cut in the deal-
er's discount of from 10 to 15 per
cent. We think if a manufacturer is
going to raise his price to where he
can make money, the dealer should
be permitted to do likewise without
the restraining hand of the manufac-
turer."
Surprised at New Price Levels
Said another Western dealer: "We,
as well as our customers, were quite
surprised to have the prices on mer-
chandise increased as much as they
were. In a majority of cases it has
not affected the desire to purchase a
new 7 spinet or a new Hammond organ.
Folks have been just as anxious to
gain possession of these instruments,
and with the exception of one or two
cancellations of orders for Hammond
organs, there does not seem to be any
marked opposition to the increased
prices.
"Folks are shopping around a little
more than before to compare prices,
quality of merchandise, etc. As yet
we have not experienced any tendency
to hold off the purchase waiting for
a break in prices. Naturally, when
other commodities become more plen-
tiful, we will be up against outside
competition which will in like manner
affect the sale of musical instruments.
This will not be too pronounced at
first but its effect on our business will
depend on our ability in selling our
own products."
$25,000 in Orders Cancelled
In the deep South one dealer has
found considerable consumer resistance
especially when customers had paid a
deposit on a piano to be released later.
"Since OPA was released," he says,
"we have noticed a very definite resist-
ance to the 'new prices'—especially
where customers had paid deposits on
I Turn to page 81
THE MUSIC TRADE REVIEW, MAY, I94S