Presto

Issue: 1920 1760

PRESTO
PRESTO
PUBLISHED EVERY SATURDAY AT 407 SOUTH DEAR-
BORN STREET, OLD COLONY BUILDING, CHICAGO, ILL.
C A. DANIELL and FRANK D. ABBOTT
Editors
Telephones: Chicago Tel. Co., Harrison 234; Auto. Tel. Co., Automatic 61-70S.
Private Phones to all Departments. Cable Address (Commercial Cable Co.'s Code).
"PRESTO," Chicago.
Entered as second-class matter Jan. 29, 1896, at the Post Office, Chicago. Illinois,
%
under Act of March 3, 1879.
Subscription, $2 a year; 6 months, $1; Foreign, $4. Payable In advance. ; No «xtrm
•uarge in U. 3. Dossessions, Canada, Cuba and Mexico
Address all communications for the editorial or business departments to PRESTO
PUBLISHING CO., Chicago, III.
Advertising Rate«fe»Three dollars per inch (13 ems pica) for single insertions.
Six dollars per inch p*«r month, less twenty-five per cent on yearly contracts. Ths
Presto does not sell Its editorial space. Payment is not accepted for articles of de-
scriptive character or other matter appearing In the news columns. Business notices
will be Indicated by the word "advertisement" in accordance with the Act of August
84, 1912.
Rates for advertising in the Tear Book issue and Export Supplements of The
Presto will be ma.de known upon application. The Presto Year Book and Export
issues have the most extensive circulation of any periodicals devoted to the musical
Instrument trades and industries in all parts of the world, and reach completely and
•ffectually all the houses handling musical instruments of both the Eastern and West-
ern hemispheres.
The Presto Buyeis' Guide is the only reliable index to the American Musical
Instruments; it analyzes all Pianos and Player-Pianos, gives accurate estimates W
their values and contains a directory of their manufacturers.
$ Items of news, photographs and other matter of general interest to the must*
trades are invited and when accepted will be paid for. Address all communications to
Prttto Publishing Co., Chicago, III.
SATURDAY, APRIL 17, 1920.
TO CORRESPONDENTS.
PRESTO IS ALWAYS GLAD TO RECEIVE NEWS OF THE
TRADE—ALL KINDS OF NEWS EXCEPT PERSONAL SLANDER
AND STORIES OF PETTY MISDEEDS BY INDIVIDUALS. PRESTO
WILL PRINT THE NAMES OF CORRESPONDENTS WHO 9END IN
"GOOD STUFF" OR ARE ON THE REGULAR STAFF. DON'T SEND
ANY PRETTY SKETCHES, LITERARY ARTICLES OR "PEN-PIC-
TURES." JUST PLAIN NEWS ABOUT THE TRADE—NOT ABOUT
CONCERTS OR AMATEUR MUSICAL ENTERTAINMENTS, BUT
ABOUT THE MEN WHO MAKE MUSICAL INSTRUMENTS AND
THOSE WHO SELL THEM. REPORTS OF NEW STORES AND
THE MEN WHO MAKE RECORDS AS SALESMEN ARE GOOD. OF-
TEN THE PIANO SALESMEN ARE THE BEST CORRESPONDENTS
BECAUSE THEY KNOW WHAT THEY LIKE TO READ AND HAVE
THE OPPORTUNITIES FOR FINDING OUT WHAT IS "DOING" IN
THE TRADE IN THEIR VICINITY. SEND IN THE N E W S -
ALL YOU CAN GET OF IT—ESPECIALLY ABOUT YOUR OWN
BUSINESS.
PIANO PROFITS
In all the discussion of "profiteering" it is certain that none of
the stigma attaches to the piano business in any of its branches. It
has from the first been a stereotyped statement that piano men do
not often get very rich. There are a few of them, in both the industry
and trade, who may lay claim to an abundance and plenty to spare.
But the multi-millionaires do not swarm in the piano business, and
the average financial statement doesn't at all resemble that of a
national bank.
Profiteering is a species of robbery, wherein the helpless public
foots the bills. It is a species of hold-up on a scale so large that the
law fails to reach up to it. The men whose money, time, skill and
brains are invested in making or selling musical instruments have
had no part in the creation of fortunes by means of unfair profits.
During the time when the new millionaires projected themselves into
the world of industry, by making things the war department wanted,
or seemed to want, the manufacturers of musical instruments were
cutting down their activities and making the sacrifices demanded of
all patriotic citizens. Very few of them realized a dollar by the route
of the profiteer, and then the net returns were not beyond those of a
moderate income.
And now that conditions have made it absolutely necessary that
the prices of pianos, and other things musical, go up, the manufac-
turers are adding to the old figures just about enough to cover their
increased cost of production. Within a week three piano manufactur-
ers, of considerable importance, have been asked what the average
profit of their instruments was. One replied that he was making a
profit of $40 on every instrument. Another said that his profit on
a playerpiano is $50; and the third said that he aimed at a margin
of $65. In days of long ago—as it now seems—it was common to hear
piano manufacturers tell that they were satisfied with a profit of $10,
or even $5, per piano. It was at the time when the industry lacked
April 17, 1920.
stability and was threatened with a riot of the kind of recklessness
that stampedes credits and scares the banks and other sources of
financial co-operation. Today it is not the same industry, and the
men engaged in it are of a different kind. The piano industry was
never so stable as now. The investment was never so large and the
foundations of the source of production were never so substantial.
But even now, the average profit in the piano industry is still too
small. It requires so much greater investment to produce, it demands
so much more skill, and exacts so much greater application than ever
before, and the character of the instruments has changed so greatly
that the margin is, as a rule, too small. The same condition applies
to the dealers, and perhaps with greater emphasis. It is no longer
customary for the dealers to induce sales by offering sacrifices which
once meant ultimate ruin—in many instances. The old systems of
selling have faded out. The average piano merchant is now doing
business on business lines. And yet there are too many retailers who
do not seem to realize that selling pianos is a business in which every
transaction is a closed incident as soon as the sale is made. There
will be very few "repeat" orders. The profit of each sale is all the
gain that comes from that transaction and, unless the profit is ade-
quate, the sale may represent a liability instead of a gain.
When a piano dealer sells an instrument to a well-to-do citizen,
he may be delivering his goods to one of the fat-walleted "profiteers"
whose wealth has been so inflated that the piano's price is inconse-
quential. Should the hard-working piano man feel any obligation to
throw away his own modest profits so that his neighbor may be again
the gainer? In any event, the dealer knows that the factory from
which he secures his stock is pushed to fill orders. He knows that
every instrument that is sold without adequate profit will be hard to
replace. Isn't it the place of common sense to keep the instrument,
unless the selling-price be such as to justify its proportion of the ex-
pense of doing business, and then a little more? We think so. And
we don't like to hear piano dealers talk as if they were rolling in pros-
perity because they find sales easily and are realizing profits which
might do in some other line, where the customers come back for more
every month, every week or every day.
There is no danger of any profiteering in the piano business.
There is no piano manufacturer getting ready to retire because of
overburdened wealth, and the piano merchants are not winning wealth
in sufficient quantities to pay the public debt by their surplus profit
taxes. Now that the exigencies of the times have forced the piano busi-
ness into something like a plane of prices within reason, why not hold
it there? And when the change comes, by which all business will
return to normal conditions, this one of piano selling will be where
it should have been a quarter-century ago.
ANOTHER SELLING SYSTEM
Nothing in the trade could be more interesting than the changes
which at long intervals take place in the system of piano selling. In
the early days it was the "three years' system." Pianos were sold
on installments that gave an aggregate of three years in which pur-
chasers could complete their payments. Later came the weekly,
monthly or quarterly payments. Meantime there was the plan of
renting the instrument and permitting a fixed portion of the rent-
money to apply on the purchase price. And finally came the dollar-
down-and-same-now-and-then plan, which endded in "youu pay the
cartage and nothing down!" Of course chaos followed and the piano
business threatened to bankrupt all who ventured into it.
Today there appears still another system. Happily it is advocated
by a class of piano houses whose standing gives all the assurance
necessary that the system is good for both the public and the trade.
It is announced in Chicago by the two great houses of The Cable
Company and Lyon & Healy. The proposition of the latter fine old
establishment, as set forth in the daily newspapers, is as follows:
Don't move your old piano. Let us give you a due bill for it, applicable
at any time toward the purchase of a new instrument. We will come and
get your old instrument.
Of course the idea is for the owner of the old piano to sell the
instrument to the music house and select the new one at any time
later. It saves the expense of moving the piano, and it insures to the
householder a good price for the perhaps useless upright—the "dead
piano"—for which a player-piano may be had in exchange. The two
great Chicago houses advertised the plan simultaneously last Tues-
day, and the common sense of the proposition must appeal to people
who approach May 1st and its exodus with nomadic uneasiness.
It is a new piano selling system that seems to have peculiar
possibilities because it is possible only to houses of the utmost re-
sponsibility and widely-known integrity. It is a plan impossible to
the "was-and-now" kind of piano houses. The cut price and slaughter
Enhanced content © 2008-2009 and presented by MBSI - The Musical Box Society International (www.mbsi.org) and the International Arcade Museum (www.arcade-museum.com).
All Rights Reserved. Digitized from the archives of the MBSI with support from NAMM - The International Music Products Association (www.namm.org).
Additional enhancement, optimization, and distribution by the International Arcade Museum. An extensive collection of Presto can be found online at http://www.arcade-museum.com/library/
PRESTO
April 17, 1920.
sale dealer can not safely invite the owners of old instruments to
come in and arrange to have them taken away free of expense, with
a view to selecting a beautiful new piano later along.
In that sense the plan suggests the kind of thing the Better
Business Bureaus are striving for. We like the plan, and we believe
that in other cities and towns where thoroughly reliable piano houses
exist it is a system of selling that will be more and more popular.
At least until the production of pianos becomes normal once more,
and deliveries can be made as fast as the sales can be closed.
LABOR'S DICTATION
The present strike of the Chicago piano movers is causing some
caustic comment on the part of inconvenienced employers.
One complaint is made concerning the unreasonableness of com-
pelling an employer to continue a mover as a particular factory's
moving man, even after that mover has failed to give satisfaction. An
instance is cited of a case of compulsion of this sort on the part of
the "boss" of the movers' union in Chicago last winter. The employer
had complained that a $1,200 instrument had been taken from the
factory by the mover at 10 a. m. on a bitter winter day and had not
been delivered until after 5 p. m. that day. It had remained on the
truck in the winter blasts all that time, and might have checked, but
fortunately did not. The only excuse the mover had given was that he
had to wait for a full load before starting for the piano's destination.
The factory employer took the matter up with the "boss" of the
movers, and was told that he would have to continue to employ the
man, as he had always done their moving before. He could not send
him another mover without taking the matter up with the heads of
the whole organization of movers, and that would be a very trouble-
some matter.
"It seems to me," said the manufacturer-employer to a Presto
representative on Saturday, "that I ought to be able to hire the services
of another mover when the man who had always done our moving
failed to do the work satisfactorily; but it seems that labor is boss,
arid has the final dictum even in my case." That is the experience
also of employers in all other lines of industry. The autocracy of labor
has become unbearable and the unions are breaking their own backs.
It isn't strange that rebellion appears in the ranks, or that signs of
the beginning of the end begin to appear. Labor is entitled to a larger
share than it has been given in the years past. And with reason it will
get it. But nowhere does the fable of the goose that laid the golden
eggs apply with greater force than to the labor unions as now oper-
ated.
AN INDIVIDUAL MATTER
Perhaps it is because we are not familiar with the collateral af-
fairs of other lines of business that we feel the piano trade is, in some
respects, peculiarly favored. We have in mind the association idea, as
now applied to the piano industry and trade in the broad, if not com-
plex, administration of the various organizations, bureaus and special
purposes of the National Associations. For if there is any other de-
partment of industry and trade that is being promoted, in its ethical,
social and psychic phases with more avidity than that of the music
industry, we have failed to notice it.
We have today a central organization, due largely to the initiative
of Mr. Paul B. Klugh, from which radiate a series of auxiliary com-
mittees, controlled by strong men and sustained by a liberality which,
a few years back, would have seemed impossible. There is now, in
New York, a perfectly equipped headquarters, working with the order
and intensity of a big bank, the purposes of which are to still further
spread the popular love of music and to stimulate the retail piano
trade to higher views of their calling, and better results of their work.
The same head-center sustains a systematized effort to control the
musical columns of the newspapers and to place before the people the
kind of intellectual stimuli that fosters the desire for more music
and more pianos. And the same organization has a special department
the purpose of which is to regulate the kind of advertising done by
the retail piano merchants and to put a stop to unfair methods in the
trade.
It is a notable staff of men, of special fitness for their work, that
occupies the desks in the New York headquarters of the Musical
Industries Chamber of Commerce. As we have said, so far as our in-
formation goes, no other industry or business can make such a show-
ing. Nowhere else is there a special adviser and legal counsellor that
can surpass, in learning or experience, Mr. George W. Pound; nor is
there anywhere a more capable promoter of the higher things in any
trade than Mr. C. W. Tremaine; nor is there anywhere a more compe-
tent critic of good or bad advertising than Mr. C. L. Dennis. And
these gentlemen are but the heads of their several departments in
which a small army works in the interests of piano trade expansion,
betterment, safety and progress.
Of course the main idea of this article is to impress upon the
trade the importance of their calling, as so largely enhanced by the
enterprise of the Musical Instrument Chamber of Commerce and the
subsidiary organizations, the various associations of the music trade.
It takes money, and a great deal of it, to sustain so large a work. The
kind of men that can successfully plan and carry forward the special
work could realize a much greater personal return for their efforts
elsewhere. But they prefer the work that promises something more
than money. They have created the ways and means by which they
produce results—results of value to every member of the industry
and trade.
We know that the retailers are appreciative of the good work
of the organizations to which reference has been made. But what pro-
portion of the retail piano trade show their understanding of what
the organizations are doing for them as individuals? What propor-
tion of the retailers are members of the associations that are working
in their interests? What proportion of the so-called "small dealers"
know much about the work that is being done at, and from, 105 W.
40th street, New York, where the enthusiastic gentlemen whose names
1 ave been mentioned have their places of steadily growing responsi-
bility? Presto is read by the retailers all over the land. We want
every one of them to consider this matter. It is their matter. It is of
greater importance to them as individuals than most other matters
into which they put more time and money than is expected of them
in connection with the national associations. Make it your individual
concern and tell us how you feel about it.
It is not necessary to draw special attention to the displayed
advertising of great industries in this issue of Presto. Everyone of
the special pages is strongly suggestive of the kind of publicity genius
that wins results, not only for the advertiser but as much, also, for
the retailers who handle the lines promoted. Every page is artistic,'
in keeping with the character of the goods advertised. The piano in-
dustry has at last found its place among the enterprises that know,
by actual experience, the full power of printer's ink.
* * *
Until recent years the piano industry has not explored the adver-
tising field with the force and assurance of a great business. The
example of the Kohler Industries, the American Piano Co., the Q R S
Company, the Gulbransen-Dickinson Co., the Steger & Sons Piano
Co., the Hallet & Davis Company, and a few others, has lifted the
trade forward a half-century in less than five years. Pianos and
printer's ink have become acquainted, and a new life has been injected
into the business of selling instruments of the artistic kind.
* * *
Sixty per cent of a representative group of one hundred well-
known men in the New York financial district were born in other
states than New York, says the Commerce Monthly. Twenty-eight
of the one hundred came from towns with less than 5,000 inhabitants;
twenty-eight from cities of 1,000,000 or over. And we know some
mighty good piano men among them.
*
•',-
*
s~
.
The reason that several profitable piano factories are ready to
sell just now is that business is so good that sales are easy. And be-
cause business is good, also buyers of going factories know that their
investments will yield large returns quickly and surely. When it is
a good time to buy is a good time to sell, or vice versa—it's all the
same.
* * *
Labor strikes, wage demands, lack of supplies and clamorous calls
from the dealers for more pianos, keep the manufacturers on the
jump. There are many prophecies as to how it is all going to end.
But, fortunately, there is no cause for alarm where business is done
upon good business principles.
* * *
. .
Everybody in the trade, large and small, will be glad to know
that Col. Harger, of the Chicago Musical Times, is steadily improving
in health. He expects to be back on the job before very long.
* * *
With few pianos to deliver and the movers refusing to deliver
any at all, the city dealers are fairly certain that deliveries will be
light for a brief period.
*
-!- *
The bargain sale piano houses are beginning to shout again their
"was and now" prices in the newspapers. That looks like a return to
old-time conditions, notwithstanding the shortage in supplies.
Enhanced content © 2008-2009 and presented by MBSI - The Musical Box Society International (www.mbsi.org) and the International Arcade Museum (www.arcade-museum.com).
All Rights Reserved. Digitized from the archives of the MBSI with support from NAMM - The International Music Products Association (www.namm.org).
Additional enhancement, optimization, and distribution by the International Arcade Museum. An extensive collection of Presto can be found online at http://www.arcade-museum.com/library/

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