14
PRESTO
the piano "saturation point." Their investigations
convinced them that it would arrive in about seven
years and four months.
The piano industry had the biggest year of its his-
tory in 1922!
Financing Problem.
Even that isn't all. Most of us have thought that
finance companies were formed just to finance time
Writer in Journal of the Automobile Trade, sales
of automobiles. They weren't. They were
formed to finance time sales of pianos about the time
Sees Similarities in Its Marketing Ex-
the first gasoline buggies began scaring prancing
periences to Those of the Piano
horses and increasing seriously the runaway hazard.
Industry and Trade.
Finance companies merely added motor cars to
their investments as an experiment. One of the big
ones, operating on a national basis, went into the
automobile business, and tw y o years ago quit it and
POINTS TO LESSON
went back exclusively to its first love—pianos.
"Saturation Point."
Frank Moral of Story Is "Misery Loves Company,'
Some of the piano bogeys which are now afflicting
with Solacing Thought that Gas Wagon Dealers'
the automotive industry were dragged out of their
Problems Are Old in Other Trades.
lairs and slain half a century ago. The "saturation
point" was one of them. There are others, however,
'The piano trade and the automobile business have which never have been captured and it begins to
many problems in common. The chief difference is look as though they never would be.
Everything that's wrong with the automobile busi-
that in the older industry they are ancient enough to ness
is wrong with the piano business—and then
have long, gray whiskers," says a writer in Motor, some. The similarity of the symptoms is really
a paper of the Automotive trade. The article dis- amazing. There are only two points of difference:
cusses the problems of the automobile trade and
Points of Difference.
points to their similarity to those of the piano busi-
1. Manufacturers do not sell to dealers on a sight
ness. "Saturation point," "used cars," "multiplicity
of styles," "commissions" and "time sales" are draft, bill of lading attached, basis. Cash sales are
unknown, either at wholesale or retail.
phrases suggesting problems for the automobile man- practically
Dealers get terms running all the way from three
ufacturer and dealer and which the writer in Motor months
to two years.
points out as equally suggestive phrases to piano
2. Dealer discounts are never less than 60 per cent
men reviewing the past and considering the present from the list and usually are much higher. Makers
in their trade. Continuing, the article in Motor says: do their best to maintain stable retail prices for their
products but they can't control the action of dealers
Sees Similarities.
The only difference between the used piano and in this respect.
The financial structure of the business, so far as
the used automobile is that the piano is about four
times as old or more. Manufacturers and dealers merchandising is concerned, would drive an automo-
have been struggling with it for 80 years and now bile manufacturer or dealer to the mad house in
they're talking about used piano clearing houses to three weeks. When a dealer buys on two years'
which all ^dealers shall send prospects who want to time he usually sells on four. In a majority of cases
exchange old merchandise for new by paying a little he takes a chattel mortgage on the instrument and
carries the burden himself the last half of the way.
something to boot!
The used piano isn't all they've puzzled over either. Only about 80 per cent of automobile sales are on
Back in the days when the veterans of the automotive time and only 75 per cent involve trades, but in
industry were wearing the cute little velvet pants of the piano business the percentages are about 98 and
Civil War days, statisticians were discussing gravely 90, respectively.
Finance to Rescue.
Before the motor car was born, finance companies
came to the rescue of the piano trade which was in
an even worse condition then than it is today. They
operated on much the same basis as they do now in
financing automobile sales but the volume of their
business in this field has been relatively stable for a
good many years. Trade associations are trying to
educate dealers—doesn't that sound familiar?—to the
advisability of financing time sales through some sub-
stantial company, but they are not making much
progress.
As the situation stands, the margin of profit for the
retailer is so wide and his own credit terms so long
that he will accept almost anything from a dollar up
as a down payment and spread the remainder over
periods ranging from twelve months to forty-eight.
The Line That Sells Easily
He is no Shylock when it comes to collections, either,
and Satisfies Always
because the sum involved generally is so small that
he hesitates a long time before he uses his chattel
mortgage to repossess the instrument.
It is doubtful if the wide discounts given the dealer
have made for sound merchandising. It is compara-
tively easy for him to sell for $400 a piano which cost
him only $200 and this tends to promote carelessness
OFFICES, REPUBLIC BLDG.
both in credits and collections.
209 State Street
CHICAGO
Wide discounts also have led to long trading al-
lowances. Considering the total dollar value of the
business, the losses on used pianos are heavier than
on used automobiles. Trade authorities estimate them
at from $8,000,000 to $10,000,000 a year.
Piano merchants have been seeking a panacea for
this ill as long as they can remember but the only
The Good Old
one they ever found is ''Buy 'em right."
The Same Sentiments.
If we changed the word piano to automobile we
should have an exact reproduction of the sentiments
of the most successful motor car dealers on the sub-
ject of trade-ins.
Piano makers, like automobile producers, complain
bitterly because of the low quality of merchandising
ability displayed by their dealers, but both are
about equally responsible for evil practices which
have developed. A long step in advance was taken,
Better than ever, with the same
however, when manufacturers persuaded their deal-
ers to become general music merchants. The piano
"Grand Tone In Upright Case/'
merchant nowadays pays his overhead by selling
every known kind of instrument from the mouth
Grands and Players that every deal-
organ up, as well as talking machines and supplies
of all kinds upon which discounts are very high.
er likes to sell, for Satisfaction and
Most of them also maintain repair or service depart-
ments.
Profit.
But in spite of its troubles the piano industry has
grown and prospered just as the automotive industry
lias and always will.
PIANO BUSINESS
FROM THE OUTSIDE
BRINKERHOFF
Player-Pianos
and Pianos
BRINKERHOFF PIANO CO.
October 11, 1924.
HIS LONGING FOR PIANO
LED INTO TEMPTATION
Clerk in Chicago Post Office Steals Soldier's Bonus
to Buy an Instrument.
M. L. McCabe, a teacher at the Dore School, liv-
ing at the Tau Kappa Epsilon fraternity house at
5612 Kenwood avenue, Chicago, wondered why he
didn't get his soldier's bonus. Last Saturday he
found out. James Daly, 6321 Ingleside avenue, a
mail sorter at the post office, had taken it.
"My wife and I wanted the piano just for the
baby's sake," he said when the police turned him over
last night to the federal authorities.
Daly went to the Witzel Piano Company, 1454
Barry avenue, and put the bonus down as a deposit
on a piano. Sergt. Robert Casey heard about it,
and became a piano salesman long enough to trap
Daly.
M. SCHULZ DEALERS CALL.
At the M. Schulz Co., 711 Milwaukee avenue, Chi-
cago, last week quite a number of music merchants
called and reported success with the M. Schulz line
in their cities. Among the merchants who called at
the Chicago offices last week and reported a live
trade were, Mr. Hardt, of Winona, Minn.; Mr.
Jensen, Jensen Bros., Terre Haute, Ind., and Mr. and
Mrs. Schoenberg of St. Joseph, Mich.
E. Leins Piano Co.
Makers of Pianos and
Player Pianos That Are
Established L e a d e r s .
Correspondence from Reliable
Dealers Invited
Faclory and Offices, 304 W. 42nd St.
NEW YORK
KREITER
Pianos and Players
Have No Competition Where
Beauty of Cases and Tone
Sustain Profit Making Prices.
Everything the Highest but
the Price.
Inspect them Carefully and See.
Kreiter Mfg. Co., Inc.
320-322 W. Water St., Milwaukee, WU.
Factory: Marinetbe, Wi«.
SMITH & NIXON
Pianos and Player Pianos
Smith & Nixon Piano Co.
1229 Miller St., Chicago
The formal opening of the new piano salesrooms
of Affholder Bros., at 802 Main street, Peoria, 111.,
was held recently. The new warerooms are com-
plete in every respect and a high class of merchan-
dise is handled. The Baldwin piano is the leader.
The Lyon & Healy
Reproducing Piano
A moderate priced reproducing piano,
beautiful in design and rich in tone.
Write for our new explanatory Chart,
the most complete and simple treat-
ment of the reproducing action.
Wabash at Jackson - - - Chicago
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