17
PRESTO
June 21, 1924.
ARGUMENTS FOR
FISCALJEAR PLAN
Mr. Freistedt has some interesting things to say about
the Great God Turnover:
"The majority of business men carry turnover to
extremes, overdo business systems and economics,
losing sight of the basic influence that seasons have
on all business of a certain character. Business is
rife with the fanaticism of the principles of turnover,
which demands that everything be converted into
cash at an arbitrary calendar period. To accomplish
this, the flow of supplies is arrested, and the tide of
sales.
"I conceived the idea of changing the business year
of our own company from the calendar to the fiscal
basis about five years ago, when it struck me as
highly inconsistent to try and take care of our peak
volume of trade in December and take the inventory
too," said Mr. Freistedt. "Consulting our auditor
about the possibility of securing relief, I learned that
we could close our business year at the end of any
other month we chose, without interference with In-
ternal Revenue laws. It is an interesting circum-
stance that our auditor, though he had had many
years' contact with our business, and knew intimately
its operation and problems, had not thought of calling
our attention to this option we had of being relieved
from the trying ordeal of taking inventory and doing
peak business at the same time. We chose June 30
because it is identical with the fiscal year of the
United States Government, took inventory as of that
date, accounted to the Internal Revenue department
for the six months' span from December 31, made
our return within two and a half months, or by Sep-
tember 15, and have ever since closed our year on
June 30.
By adopting the fiscal year, we are able to devote
all our energy to our customers during the peak
period of the year, and take inventory so quietly and
easily that a good many of our employees do not
know about it, much less our customers."
Retailer Benefits.
For the 'retailer, fiscal-year inventory should in-
crease December-January sales—or rather keep them
up where they should be. That means bigger gross
business for the year, a reduction in overhead per-
centage, an increase in net profits.
For the manufacturer, fiscal-year inventory means
ability to take care of all business that comes during
the peak of the year, with a margin for doing more
business with the same equipment and the same
number of employees. His gross sales and net profit
for the year will likewise be increased, and his over-
head cut down.
Worker Too.
For the worker, the fiscal-year inventory will make
more work. Where inventory is taken in January, the
curtailment of purchasing during December and the
first two weeks of the year often makes i't necessary
for the manufacturer to lay off employees. This would
not be necessary if there were no December-January
interruption of retail selling. With the work of in-
ventory transferred to July, it would be possible to
keep on the payroll employees who must otherwise
be laid off on account of "summer dullness." Palp-
ably, the manufacturer cannot do more business with-
out stabilizing and fattening the payrolL
(Continued from page 15.)
and Means Committee Council of the Chicago Asso-
ciation of Commerce to explain its workings, and
•after the talk he was given a unanimous vote of
thanks by the gathering for a genuinely constructive
idea. One of the most interesting phases of the
change from calendar to fiscal inventory is that few
business men know how to do it—the majority be-
lieve that it cannot be done.
The Law of It.
"I was amazed after speaking to the Chicago asso-
ciation," said Mr. Friestedt, "when several members
frankly stated that they were in ignorance of the
flexibility of the United States Internal Revenue law
in this respect. Two gentlemen in particular ad-
mitted after the meeting that they had formerly used
the fiscal year, but changed to the calendar year when
the Internal Revenue act was passed, believing that
its regulations required the December 31 inventory
and return.
"Uncle Sam not only permits closing your business
year at the end of any month you yourself may
choose, but some of the warmest support of this fiscal
year inventory has come from Internal Revenue offi-
cials.
How Change Is Made.
"Changing your tax year is a simple matter. The
business man who wishes to do it simply secures from
the Internal Revenue collector in his district Form
1128, known as the 'Application for Change in Ac-
counting Period,' answers twelve or fifteen simple
questions about the date of opening and closing his
books the past five years, and files it with his collec-
tor. Uncle Sam asks him to do this at least thirty
days before the close of the new fiscal year he wishes
to adopt. A fiscal year means, officially, 'an account-
ing period of twelve months ending on the last day
of any month other than December.' "
The Incident.
A hypothetical incident illustrates the silliness of
the old plan.
The first week in January, a woman steps into
Blank's Emporium and asks for several music rolls
or talking-machine records by name or number. Only
one of the lot happens to be in stock, because Blank's
is taking inventory. So one roll or record is sold in-
stead of several. That might happen pretty much
through December, because the buyer in that depart-
ment, with the ghastly ordeal of the annual inventory
hanging over his head, is cutting down stock as much
as possible, and buying almost nothing.
But suppose Blank's took inventory in July, when
this woman is in the country. In that event, she
the seasonal average and be able to get every record
or roll on her list. More than that, she could prob-
ably be led to purchase several in addition.
Piano player rolls are semi-luxuries in the sense
that people can get along without them—if not ob-
tainable, life isn't interrupted. By the same token,
William P. Van Wickle, president of the bank-
the sales of player piano rolls are elastic, because rupt Van Wickle Piano Co., Washington, D. C., has
people buy them with surplus money over what is confessed judgment for $13,098.51, in favor of the
needed for necessities, and can in most cases be per- District National Bank.
suaded to buy more than they intended to purchase
if sales people demonstrate interesting new compo-
sitions.
When it comes to the individual merchant, dealing
in music rolls and musical instruments as a business,
Schumann
PIANOS and PLAYER PIANOS
GRANDS and UPRIGHTS
Have no superiors in appearance, tone
power or other essentials of strictly
leaders in the trade.
Warning to Infringers
This Trade Mark Is caat
In the plate and also ap-
pears upon the fall board
of all genuine Schumann
Pianos, and all Infringers
will be prosecuted. Beware
of Imitations such as Schu-
mann & Company, Schu-
mann & Son, and also
Shuman,
as
all
stencil
shops, dealers and users of
pianos bearing: a name in
imitation
of
the
name
Schumann with the inten-
tion of deceiving the public
will be prosecuted to the
fullest extent of the law.
New Catalogue on Bequest.
For a
Bigger and Better
Business
There is nothing to compare
with the complete line of
M. SCHULZ CO.
The Players are RIGHT in
everything t h a t means
money to the dealers and
satisfaction to the public
You will never do anything better •
than when you get in touch with
M. SCHULZ CO.
W. N. VAN MATRE, President
711 Milwaukee Avenue
CHICAGO
Rockford, 111.
OUTHRRN BRANCH: 730 Candler BIdg., ATLANTA, GA
Schumann Piano Co,
INFLUENCE OF STARR
TRADEMARK ON SALES
Widely Known Emblem Stands for Important Fac-
tors in Making and Distributing Instruments.
Starr Piano Co.'s representatives continually im-
press prospective buyers with the meaning of the
"Mark of Quality," the emblem which exemplifies an
ideal. The Starr "Mark of Quality" is familiar to
every owner of a Starr piano or phonograph and is
pointed out as the protection of the prospective
buyer of any Starr product. The emblem provides
for salesmen a text for a ^ales talk.
The prospective buyers of a Starr instrument is
assured that everything bought under this trade-
mark possesses a value unquestioned. It incites com-
plete confidence in the' musical worth of the Starr
piano or player. It is a trade-mark w T hich represents
the Starr piano or player as standard and guarantees
satisfaction far into the years to come.
The Starr trade-mark involves the telling of inter-
esting facts about the instruments and the manner of
their making. The excellence of Starr instruments is
attributed to the high standard of construction, to
the high grade of materials used and in addition to
expert workmanship. Only real craftsmen who feel
pride and delight in the work make the Starr instru-
ments. They are the conscientious kind which is
satisfied with nothing but the perfect job. These
craftsmen who build pianos to endure have a close
relation to the meaning of the Starr trade-mark.
IN LYON & HEALY WHOLESALE.
The out-of-to\Yn buyers seen in the wholesale de-
partment of Lyon & Healy, Chicago, this week in-
cluded J. J. Brewer, Rochelle. 111.; Mrs. Carrie B.
Glass, Coshocton, Ohio; Mr. Hosak, Angola, Ind.;
Mr. Williams, Birmingham, Ala.; William Kuelman,
Antioch, 111.; W. R. Williams, Williams Piano Co.,
Vancouver; Mr. Berkhart, Berkhart Brothers, St.
Joseph, Mich.; F. W. Krigdon. Collon, 111., and Mr.
Ferrar, Portsmouth, Ohio.
QUALITY
in Name and in Fact
TONE, MATERIALS, CONSTRUCTION,
WORKMANSHIP, DESIGN—all in ac-
cord with the broadest experience—are
the elements which give character to
Bush & Lane Products.
BUSH&LANE PIANOS
BUSH & LANE CECILIAN PLAYER PIANOS
take high place, therefore, in any com-
parison of high grade pianos because of
the individuality of character which dis-
tinguishes them in all essentials of merit
and value.
BUSH ft LANE PIANO CO.
Holland, Mich.
ESTABLISHED 1154
THE
BRADBURY PIANO
FOR ITS
ARTISTIC EXCELLENCE
FOR ITS
INESTIMABLE AGENCY VALUE
THE CHOICE OF
Representative Dealers the World Over
Now Produced in Several
New Models
WRITE FOR TERRITORY
Factory
Leomintter,
Matt.
Executive Office*
138th St. and Walton Ave.
New York
Dintion W. P. HAINES & CO., Inc.
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