Classic Mode

Music Trade Review

Issue: 1954 Vol. 113 N. 2

Page 10 Text:

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
year since the successful termination of World War
II, and ever since that time there had been a certain
element perdicting a sharp recession. In fact, before
hostilities ended, this was the case. And here we
are, long after the Korean armistice, and no sharp
recession has occurred. Granted, of course, that
during a period of readjustment the sales and prices
soften up and inventories are kept at a minimum,
then one must consider 1953, which might have
been called a phenomenal year in the sales of all
commodities, and at prices which were almost phe-
Established 1879
CARLETON CHACE, Editor
nomenal. An interesting sidelight on just what is
Alex H. Kolbe. Publisher
happening in many industries has been manifested
in a few things that have occurred in the suburban
town where we live. We haven't seen any piano
salesmen yet, but we have been called on by vacuum
Alexander Hart
A. C. Osborne
cleaner, TV, automobile, encyclopedia and other
Technical Editor
Associate Editor
salespersons, something that hasn't happened in the
last three or four years. A very pointed illustration
of this occurred immediately after Henry Ford II
appeared on television stating that his company now
V. T, Costello
Terry Ruffolo
expected dealers to go out and sell Ford cars. He
Production Manager
Circulation Manager
stated very frankly that up to the present time
Published monthly at 510 Americas Building, Radio
City. 1270 Sixth Avenue, New York 20, N . Y.
cars have been bought; "now it is up to the dealer
Telephone: Circle 7-5842-5843-5844
to go out and sell them," he said. Two days after
this,
two in our family received post cards from a
No.
2
FEBRUARY, 1954
Vol. 113
Mercury dealer in a nearby town offering both of
us a tremendously high trade-in value on the cars
which we have if we would buy a new Mercury.
Therefore, in our estimation it is a good time for
Business-As We See It
the retail piano salesman to pull out his prospect
list and start telephoning and calling on some of
HIS is the time of year when many members them.
v
of the industry, both wholesale and retail,
ask us "What Do You Think is Going to
Retail Sales and Other Things
Happen in 1954?" Although we do not pretend to
N accordance with statistics which have been re-
be a prophet, we do know in most instances what
leased by more than one research bureau, retail
will happen in both the wholesale
trade established another sales record in 1953
and the retail piano business will
depend largely on the efforts with a volume of about 173 billion, a gain of ap-
which are maintained in order to proximately 5.4% from the previous high of 164.1
pull in business. It is quite cer- billion gained in 1952. According to estimates, it is
tain that it is not going to 4 walk figured that sales in 1954 should be about 170
in the door' in 1954. However, billion, which will be the second highest level ever
there are many factors which achieved. Now it has been estimated that personal
point to the fact that although income in 1954 will be 280 billion dollars before
at the present time business may taxes, and that disposal income will be 245 billion.
be considerably more quiet than Savings by individuals are believed to have reached
seems healthy, 1954 will probab- a total of 200 billion dollars at the end of 1953,
CARLETON CHACE
ly stack up along with what hap- which is a gain of approximately 7.4 billion during
pened in 1952. Perhaps not quite as good as 1953. that year. According to estimates, these are expected
In spite of those who are endeavoring to create a to rise to a new high of approximately 205 billion
depression, or 'recession' or whatever you want to by the close of 1954. So it would appear that there
call it, for political reasons, there is one thing which is plenty of money to be spent for things that peo-
must be considered. 1953 was the eighth prosperous ple want, but it seems to be up to the salesman now
The Jfusi
REVIEW
T
I
10
THE MUSIC TRADE REVIEW. FEBRUARY. 1954

Page 11 Text:

Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
to go out and make them want pianos and the like
enough so as to use some of this hoarded money.
Factors that Will Promote Business
F
ROM our experience, there has never heen a
depression when the building business was
good. When buildings are being erected and
homes are being built, there is a natural demand for
practically everything that is manufactured. So. it
might be interesting to look over what some of the
statistical bureaus have to say about construction
and building. In 1953 public and private construc-
tion expenditures established another new record
of about 34.6 billion, the seventh successive year
of record-breaking outlay. It is estimated that the
expenditures of this kind will amount to about 33.5
billion in 1954. It is also estimated that outlays
for equipment in plants will reach 26 billion in
1954. It is also estimated that a minium of houses
to be erected will be 950,000 units. There is also
an unsatisfied need for new schools, hospitals, etc.
How many of those new 950,000 homes will have
pianos in them depends largely on the activities of
the dealers in the territories where these homes are
to be built. The only estimated drop in household
furnishings predicted by experts will be felt by the
carpet industry, due to the high average cost of wool.
The demand for other household furnishings, how-
ever, should be maintained in 1954 by the continu-
ued high level of disposable income in residential
construction.
Licensing Music Teachers
W
E have been advised that a bill is being in-
troduced into the New York Legislature re-
quiring persons teaching vocal and instru-
mental music to obtain a license from the Educa-
tion Department. It is understood that the bill will
create a State Board of Music Teachers Examiners,
fixes qualifications for teachers and establishes
causes for revocation of licenses. It is thought that
perhaps this legislation is directed toward the elimi-
nation of studio operations, which of course, would
affect several branches of the industry, including the
studios where organs, pianos and other musical in-
struments are taught under the supervision of deal-
ers. From correspondence which the REVIEW
has received from dealers regarding this, there seems
to be a wholesome opposition to it, the belief being
that if a parent of a pupil is not satisfied with the
teacher, he does not have to continue with that
teacher, and that if the new bill will affect studio
operations it will place a restraint on trade in a very
vital point and one which is a very important bus-
iness-producing factor. We certainly question the
advisability of such a bill which may prove detri-
mental to the business at the same time create addi-
tional taxes. Latest report on this bill, No. 693, is
that it will not be acted on this year but it will be
back next year when it may prove even more
troublesome. So watch it.
Anent Unfair Trade Practices
O
N Page 5 of this issue there appears an article
by William R. Gard, Executive Secretary of
the National Association of Music Merchants,
which in our opinion should be read by every dealer
and mulled over carefully, because it points out how
far the National Association of Music Merchants can
go in endeavoring to correct unfair trade practices,
but at the same time tells the dealer what he can
do to have such practices corrected. We believe Mr.
Gard has prepared a very timely article which he
has used as an address at the Southeastern Confer-
ence of the N.A.M.M. which took place this month
in Atlanta, Ga. We say 'timely' because we have
been confronted within the last few months and
particularly since business has become rather dull,
which many complaints regarding discounting and
other j^actices which should not occur in the piano
business. It is quite natural that everyone should be
hungry for business, but it is regrettable that in
order to secure it, many go to extremes in giving dis-
counts which leave hardly enough margin in the sale
to pay for delivery. In his article, Mr. Gard states
how this can be helped also.
THE MUSIC TRADE REVIEW, FEBRUARY. 1954
EDITOR
II

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