Music Trade Review

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tions, (10) deception in respect of key-
board or number of keys, (11) defama-
tion of competitors or disparagement of
their products, (12) inducing breach of
contract, (13) push money, gratuities,
(14) misuse of word free, (15) selling
below cost, (16) discrimination, (17)
aiding or abetting use of unfair trade
practices. These rules were then pro-
mulgated by the Federal Trade Com-
mission as of that date.
"It may be well here to explain that
the trade practice committee of the Mus-
ical Instrument and Accessories Indus-
try is a separate committee, and that
there is also a National Association of
Music Merchants Trade Practice com-
mittee of which I am the chairman. By
virtue of this chairmanship I represent
the association as a member of the
trade practice committee of the Musical
Instrument and Accessories Industry.
"Since February 2, 1944 the Musical
Instrument and Accessories Industry
trade practice committee has functioned
in a quiet way largely unknown, due to
the fact that the committee agreed to
operate without any publicity.
"The trade practice committee of the
N.A.M.M. in so far as I know held its
first meeting in July of this year during
the convention in Chicago. Last year
there were some thirty-one association
members who asked to serve on this
committee. During the year many letters
of suggestion came in, most of which,
as I have mentioned, having to do with
price cutting problems and teacher
commission problems.
What of the Future
Now, as for what can be done in the
future. First, I would like to suggest
that retail trade practice problems are
affected by the action of three different
groups. (1) The dealer or retail outlet.
(2) The jobbers or distributors who
function between the manufacturer and
the dealer, and (3) the manufacturers.
I believe that with the genuine coopera-
tion of all three of these groups a
remarkable difference can be made in
present day conditions.
As to the dealers, they have given
excellent support to the N.A.M.M. The
association in turn has never before
been responsible for as many upbuild-
ing and wholesome promotions. Promi-
nent key members have been responsi-
ble for promoting a tremendous amount
of good will and good business for the
industry as a whole, through support
not only of association programs, but
through the American Music Confer-
ence and other efforts. The Association
has fostered all manner of Better Deal-
er movements through sales training
material, store management informa-
helps. as well as the establishment of
a trade practice committee.
No Pressure On Price Cutting
"Until we met in Chicago it was not
well understood by these members nor
possibly until we published the fact in
our trade papers a few months ago,
that the Federal Trade Commission pro-
hibits any pressure being brought upon
anyone with reference to price cutting.
"Since July the new committee for
this year has been appointed and in-
cludes some 47 dealers who asked to
serve. Certainly this shows a remark-
able increase of interest and the appar-
ent desire for something to be done
about our trade practice problems.
"As for action, it is taking a great
deal of time to get an understanding of
the problem across to the various deal-
ers. The fact that something is being
done at all should have its influence.
When the committee met in July, it
was then decided that all would do what
they could to bring problems to the at-
tention of the committee through the
chairman who in turn would pass on
the problems to the chairman of the
Musical Instrument and Accessories In-
dustry Trade Practice Committee for
Manufacturer and Jobber
From the position of the dealer and
his interest in trade practice problems,
I believe that it is absolutely imperative
that the manufacturer and jobber or
distributor group show a more effective
interest in helping to solve these prob-
lems.
No matter how well organized and
how well set up to accomplish good
trade practices the dealers may be, the
manufacturer may still upset such work-
ing conditions by his privilege to ap-
point undesirable or unqualified addi-
tional or new dealers. The same story
may be told again and again by the
jobbers or wholesalers organizations
who try to better trade practices, but
who find that the manufacturer may
upset their work by supplying unquali-
fied wholesalers or jobbers.
"If we are thinking of the manufac-
turer as another individual and whether
his aims in trade practice relations
should be higher or lower than others,
then we must be fair to him and con-
sider that after all he is just another
individual or organization made up of
THE MUSIC TRADE REVIEW, APRIL, 1952
possible action. The support of this pro-
gram of course, depends entirely upon
the local dealers everywhere. If they
will make complaints including com-
plete samples of questionable news-
paper advertising or complete informa-
tion about other infractions of the
trade practice rules, something usually
can be done.
just plain ordinary men like the rest
of us. Too often when we mention the
word manufacturer, we think of some-
body off in the distance on a kind of
pedestal.
"Recently I read a letter from one
large manufacturer intimating that he
felt that the trade practice committee
should be supported by the dealers who
benefited thereby and that it was hardly
the business of the manufacturer to
take a part or to be affiliated with the
trade practice committee of the Musical
Instrument and Accessories Industry.
"I disagree with this manufacturer.
Time and time again in discussing trade
practice problems with any group or
meeting or individual and in following
the trail of their source, the finger can
be pointed to the possible good that
could be accomplished with the com-
plete cooperation of the manufacturer.
"Sometime ago in discussing trade
practice problems with a well known
dealer, he mentioned his experience
with a certain piano manufacturer who
had pressed him into using various
shady sales methods and types of ad-
vertising which had in turn caused him
one of the most embarrassing experi-
ences in his business career.
"I have mentioned that I believe that
a large portion of our trade practice
complaints come from the various
forms of price cutting. I believe that
many of these complaints are caused
by the inexperienced ignorance of the
dealers who practice the poor methods
and unbusinesslike procedures.
What Cut Prices Did
"Just recently I talked with a young
man who was looking for a position as
a piano salesman. He told me that he
had spent a few months with a very
able piano dealer where he had im-
mediately enjoyed an excellent success
in retail sales. In fact, his success so
impressed him that he determined to
go into business for himself. The next
step was that with practically no capital
he was able to open a store in a city
of some 20,000 and be given franchises
to sell some very prominent lines of
pianos. He had had no important previ-
ous business experience. He explained
that other dealers in the same city were
operating with cut price methods, that
because they did he thought he had to,
and that within a few months, he was
out of business. I will assume that al-
most everyone here will agree that this
young gentleman never had a chance to
begin with.
"I wonder how much respect for the
piano business this experience has left
in that community. Who will be re-
(To Be Continued)