Music Trade Review

Issue: 1951 Vol. 110 N. 5

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The Jfusk jf/iade
Established 1879
VOL. 110-No. 5
THE
PIONEER
REVIEW
PUBLICATION
May, 1951
2,854th Issue
O F T H E MUSIC
I N D U S T R Y
Music Merchants Offer a Variety
Of Opinions on Piano Business
T
HE REVIEW recently made a sur-
vey on the state of the piano busi-
ness throughout the nation for the
first three months of this year, and from
the information received, there seems to
be no staple pattern surrounding the
business which was done in various sec-
tions of the country. Although some
spots in New England held their own,
on the whole the piano business in that
section of the country did not seem to
average up to what it was in some other
sections.
A well-known dealer in a city where
money is usually plentiful and the piano
business is usually on a par if not a
little better than some other sections of
the country, put it this way: "I am sorry
to advise that the first three months of
1951 fell far short of the first three
months of 1950. We attribute the let-
down in sales to several factors—people
are confused and hesitate to buy be-
cause our national leadership is con-
stantly fumbling and bungling in na-
tional affairs which affects the man on
the street. Wage and price laws are con-
fusing, and are not working; high prices
all holding up sales; cost of living cuts
too deeply into the pay envelope; too
much scare news out of Washington;
confusion causes hesitation and hinders
sales; Korean war bungling by the ad-
ministration ; listening too much to Eng-
land's aches and pains through Acheson,
Marshall and Truman appeasements;
complete distrust by the people on the
street of where the brass in Washington
are leading the U. S. A.*'
Public Not Shortage Concious
Another thought has been injected
THE MUSIC TRADE REVIEW, MAY, 1951
into this belief, such as, "People do not
believe there will be a shortage in what
they may want to buy for the next four
to six months. Distress sales are appear-
ing and Mr. Public is awaiting cut prices.
I am of the opinion, however, that the
piano business will be better in the late
summer and fall. Sales should be better
than average when people realize they
are really facing a shortage."
This dealer, similar to dealers in other
sections of the country, had a stock of
instruments 25 per cent in excess of what
he had last year. Many dealers report
that their stock is even greater in ex-
cess than that, and there is no doubt that
the large dealers throughout the country
are well-stocked with pianos, especially
those who have warehouse facilities
where they can keep an adequate stock
for some time to come.
New York
Coming out of New England and down
the coast into New York State, New Jer-
sey and down the east coast, the survey
shows that the piano business also was
spotty. New York seems to have been
favored with much better business than
some of the other locations, and New
York City had a very successful first
three months. The business in April has
been perhaps more of an ordinary char-
acter with one exception, and that is
that all the dealers in New York City-
have been experiencing sales of the
higher priced instruments, mostly grands
which run anywhere from SI 100 up. This
has been the character of business which
has been manifested since the first three
months; whereas the first three months'
business showed an increase and was of
more or less the usual character showing
that the masses were purchasing mer-
chandise at that time, which they do
not seem to be doing at present.
New Jersey
Down in New Jersey, the REVIEW
got the following from a well-known
dealer: "We have had a barely percep-
tible decline over the past several
months, but a steady one, nevertheless.
We increased our efforts to offset it, but
the decline continued; then last March
the drop in volume from the previous
March, 1950 was so large that we
thought we were back in the depression,
and all this in spite of our increased
efforts to stem the steady decline. We are
optimistic and believe that it will level
off and, in fact, should get very much
better again. I could give you a long
story about the time involved in pro-
tecting ourselves from the inroads of
taxes, government regulations, etc., time
that we used to give solely for the
achievement and development of our
business."
Pennsylvania
From Pennsylvania came the report
from a well-known music merchant that,
"In spite of the fact that there has been
a slump for about three weeks, we are
about 20 per cent ahead of last year.
This week has shown considerable ac-
tivity and we predict normal business
for the next three months, and we believe
it may continue through the summer as
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
it did last year. Our inventory is consid-
erably larger than at this time last year;
in fact, we have a splendid stock of
pianos on hand."
Another state on the Atlantic seaboard
in which the piano business was very
good and showed a perceptible increase
in the first three months was West Vir-
ginia. "Our piano sales for the past three
months of the year," this prominent
dealer stated "is 131/ 2 per cent above last
year and our inventory is 16 per cent
above last year. Our overall business,
including all departments, is ll 1 /^ P e r
cent above last year."
"I believe the prospects for the next
three to six months are about the same
as last year. I can see no reason for a
great decline in business although we
are running into the summer, which
usually is not good for the piano busi-'
ness. But, due to the fact that there is a
lot of employment in this area at the
present time we believe business will be
good for the next three to six months.
We are frank to say that we have done
very little promotion in our depart-
ments in the past three months as our
fiscal year ends June 30th, and realizing
the heavy tax burden facing us, we have
not made much of an effort to promote
sales in the past three months."
»
In Alabama, it is evident that business
has held up very nicely, and one dealer
stated that, although this was the case,
they must accept smaller down payments
than they used to. Some sections have
been affected by strikes, said this dealer,
but "our stock is above average. We
really ordered too much merchandise
as I was afraid it would get serious and
there would be a shortage. The banks
are cutting down on credits also."
Texas
Getting over into the southwest, Texas
seems to have had its share of the busi-
ness, although one prominent dealer
stated that in the first quarter of 1951
his business was just a little better, both
in dollars and units, than in the first
quarter of 1950. This dealer also ex-
pects a decline in the next three months,
but does not anticipate the desirability
or necessity of sacrificing good merchan-
dise.
"In our opinion," he said, "the chief
causes of the increase in our sales is
general business activity, the increase in
population here, and the spread of music
lessons in our schools. Scare buying has
not been in evidence in any noticeable
extent since last August and September."
"The good effects of national promo-
tion cannot be definitely ascertained, but
we believe it has materially helped. We
are looking forward to a reasonably
good and well-balanced business so long
as installment terms and the supply of
instruments are not materially restricted.
"Although many present inflationary
factors have not yet spent their force
and others are yet to come, we now be-
lieve that the present adequate inven-
tories, plus higher taxes and the new
combined policies of Td, FRB and ABA.
will halt any further increase in prices
for the short term. Controls may be
given the credit, but they will not do
the job."
Where Television is New
It is quite evident that wherever tele-
vision has been introduced for the first
time, the piano business has been hit,
the same as it was when it was intro-
duced in other localities. This was mani-
fested in a letter from a dealer in Ken-
tucky, who stated: "We kept in business
for the first quarter of this year up to
the same period a year ago only by a
supreme effort. Without such effort, there
are two factors that would have swamped
us. First and foremost, of course, is tele-
vision and the best information I can get
on the effect of television on the piano
business is that the slump comes during
the first one or two years that a cable
brings nationwide television to a city,
and I am told by dealers in other cities
that after that novelty wears off, piano
business starts to pick up.
"It would be ridiculous to try to
minimize the terrific impact of television
on thhe piano business. I like to call the
attention of the optimists to the fact
that today we have people coming in
who purchased new pianos months ago
and asking us if it would be possible
to return the piano and have what they
have paid allowed on television, and I
use that as one of the main arguments
in my summary of the drastic effects
television has on the piano business.
'"Our second obstacle to business this
year was an unprecedented snowstorm
which blocked the city completely for
nearly two weeks.
"As to inventories, I believe we were
justified in carrying a heavier inventory
than any time in the past few years and
I would deem it very unwise, consider-
ing conditions, if it were not for the
fact that a piano is one product that
does not depreciate to any marked de-
gree. As to the future, we can only hope
that the great number of children who
are becoming increasingly interested in
music, will prevail upon their parents,
who are naturally tortured mentally and
confused by worldwide conditions, to
purchase a piano for them. Therefore,
because the piano has always withstood
the impact of war, depression and new
competing instruments, it is still my first
choice of a business to be in."
The above is very typical of what has
happened in other localities, when tele-
vision became introduced and took the
attention of people away from other
forms of amusement. This happened in
New York and other large cities but
there have been many instances where,
after the television has been purchased
and paid for, the people who were fol-
lowed up by the salesman in the piano
department became piano purchasers.
Ohio Report Good
From Ohio comes the report that the
sales were up 50 per cent for the first
quarter, and one dealer stated that Jan.
was the best they had in a number of
years. "Feb.," he continued, "was a little
more normal and March was very good;
making our first quarter this year a new
high. The outlook for the next six months
is very promising here. As long as our
suppliers can deliver the goods, we be-
lieve that this year can be a record year
for us. Our stock is being held about
normal to 15 per cent above. We believe
that our volume is fairly high right now
due to the high rate of employment in
this section. There are many cases where
Mr. and Mrs. are both working. This of
course is primarily due to war work in
this area. A fair estimate as to what we
intend to do for the year indicates at
least a 33 per cent increase over 1950
unless there is a drastic change in supply,
which may happen.'"
There is a different slant entirely, this
coming from a section where a great
many people are now being employed in
war work and making considerably ex-
tra money. It manifests clearly how di-
versified the business can be in various
sections of the country.
Increase in Missouri
Missouri seems to be another state in
which the piano business has been par-
ticularly good. Two reports from there
show that the piano and organ business
has increased on an average of over 22
per cent. As one dealer put it, "We were
particularly pleased with our piano busi-
ness for the first quarter of 1951. Our
piano business increased 12 per cent in
units and 21.7 per cent in dollar vol-
ume. We are optimistic over the possi-
bilities for the next three to six months
because we have a hard-hitting piano
sales organization backed by several
(Turn to I'liirc I 1)
THE MUSIC TRADE REVIEW, MAY
1951

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