December 4, 1920.
ANALYZING COSTS
IN PIANO PLANTS
O. C. Stone in Able Article Gives the Items
and Shows Comparisons Proving How
Prices of Instruments Cannot Be
Reduced.
That cost of labor in piano factories is the real
reason why prices cannot now come down is the
subject of Article No. 3 by O. C. Stone, authorized
by the National Piano Manufacturers' Association:
On the closest analysis, it is found that the present
cost of labor is the one big, outstanding reason why
piano manufacturers cannot yet reduce their whole-
sale prices.
It is a fact well recognized that the cost of all
labor in the piano manufacturing industry in 1920,
over that of 1914, has increased more than 100 per
cent, due to two causes. First, the increase in wages,
and secondly and perhaps most important, the de-
creased production per unit per man, occasioned by
reduced hours and a general slowing up on the part
of labor. In a great many cases this has caused an
increase well over 100 per cent. A study of the
charts involving costs of piano manufacture, from
which the following are taken, shows many such in-
stances.
An idea of the increased cost of labor may be
gained from the figures based upon the cost per op-
eration. In the following items the increased cost
of labor over 1914 is shown: Staining and filling
cases, 2 : /\ times. Varnishing (4 coats), 2Vz times.
Washing off case and varnishing back of frames, 3 r 4
times. Rubbing case and brackets, 2 times. Var-
nishing backs, 3 times. Setting up, 5% times.
Some Comparisons.
The fact must be borne in mind that the percent-
age of increased cost of labor during the war in
other branches of industry was in many instances
greater than that of piano manufacturing. This
caused a tendency on the part of labor to forsake
the piano trade for fields that yielded more money.
To offset this tendency and to fully cope with this
problem necessitated a higher increase of wages on
the part of piano manufacturers in order to retain
the efficient labor that is so necessary to piano
building and to keep their production up to the
maximum. This, with the natural increased de-
mand for labor, owing to abnormal conditions, cur-
tailed considerably the profits which manufacturers
were justified in getting. It therefore followed that
the employment of more labor, at extremely high
wages, was imperative to increase production so
that piano builders might enjoy the more stable po-
sition that marked other lines of industry.
Labor in Readjustment.
Labor is the one outstanding factor in the present
readjustment situation, for two reasons. The first
is because labor is the last to have its wages ad-
justed upward to meet a rising commodity price,
and of necessity is last to come down to meet a
FRE§TO
lowering commodity price. In other words, up-
ward prices must precede a raise in wages, and
downward prices always precede a fall in wages.
Hence it would indeed be a wise man who could
give any intelligent indication when there will be any
appreciable downward adjustment of wages in the
piano trade.
The second reason is because labor plays such
an important part in determining the cost of raw
materials and supplies. Lumber as lumber in the
tree may not cost but little more than it did in 19K.
But to cut the tree, saw it into lumber and put it
through the hundred different hands through which
it must pass before it finally finds itself in the
mill room of a piano factory, costs double and treble
what it cost six years ago. And who is there among
us who can say when these costs will come down?
Vital Questions.
When will the lumberjack, the sawyer, the loader,
the hauler and the planer get less wages for hib
labor? When will the railroads charge less for
transporting these materials? When will interest
rates and taxes be reduced?
When one can answer these questions intelligently,
then one can foretell a downward readjustment of
wages: and when one can experience a downward
readjustment of wages, then the trade will experi-
ence a reduced wholesale price.
LONG ESTABLISHED HOUSE ON
CHICAGO'S NORTHWEST SIDE
W. H. Sajewski's Store the Center of a Live Trade
for Many Years.
15
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711 Milwaukee Avenue
CHICAGO
•OUTHERN BRANCH: 730 Candle* Bldg., ATLANTA, GA.
One of the steadily-going music stores in Chi-
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CLARK ORCHESTRA ROLL CO.
De Kalb, Illinois
ducted business of varied interests and has done it
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He has stuck to it through the years, and his ideas
are original and progressive. His customers are
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him. His establishment on Milwaukee avenue is
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equipped in all its departments.
THE CHRISTMAS SPIRIT.
In featuring the Ampico in the Knabe this week
the J. W. Brown Piano Co., Canton, Ohio, says:
"The charm of distant music! From the music
room comes the tones of a beautiful Christmas
Hymn, played by invisible hands! Each rich chord
as delicately executed as if a great artist were seated
at the piano—this is the miracle of the Ampico,
which reproduces in all its charm the very spirit of
the master pianist's art. The perfect gift for Christ-
mas."
Every want is supplied in the "Christmas Sug-
gestions" of B. S. Porter & Son. Lima, O. The
stock of "The Old Reliable Music House" includes
everything musical.
II
The Grand Is a Revelation
No Skilled Pianist Will Challenge
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450 Fifth Ave., NEW YORK CITY
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