Classic Mode

Presto

Issue: 1925 2024

12
May 9. 1925.
PRESTO
MUSIC TRADE NOTES
FROM CLEVELAND, 0 .
Committee of Music Merchants' Association
of Ohio to Organize Special Golf Asso-
ciation for Convention—Other Events.
The Music Merchants' Association of Ohio has
named a committee for the formation of the golf
association in connection with the Cincinnati conven-
tion to be held in September as follows: Henry
Dreher, chairman; Wm. R. Graul, Cincinnati; Chas.
Yahrling, Youngstown, and F. Jos. Volz, Cincinnati.
The Buescher Music Co., Cleveland, is offering a
six-dollar crystal set free with a purchase of twenty-
five dollars. This purchase may be records or a
down payment toward any instrument.
The store of Mat F. Broz, 13920 Union avenue,
houses Cleveland's newest radio broadcasting station.
The formal opening occurred last week with Stanley
J. Broz, son of Mat Broz. as director and manager.
George T. Jones is announcer. The station is known
as WBDH and operates on 227 meters wfth 100 watts
power. The antenna and counterpoise are suspended
above the roof of the store building. Part of the
second floor of the store has been converted into a
studio, reception and operating room. The Broz
store is near the intersection of Kinsman road and
Union avenue, and has a large musical department.
It is one of the most popular stores in its section of
the city.
The Calendar Radio Co. has been incroporated for
$50,000 to do a general radio business. The incor-
porators are M. Staab, N. Gootschalt, S. Graham,
R. H. Davis, C. Vrooman.
The opening of the Metropolitan Opera Co.'s
KREITER
The Leading and Most Popular
Pianos and Players
Grands, Players, Uprights and
Reproducing Pianos
The Results of Over Forty Years*
of Experience.
Kreiter Pianos Cover the Entire Line
and no Piano Dealer who tries these in-
struments would supplant them by any
others. A trial will convince.
Kreiter Mfg. Co., Inc.
310-312 W. Water St., Milwaukee, Wis.
Factory: Marinette, Wis.
There's Money
for the Dealer in
Automatic Pianos
Fine Electric Self-Players of eye-
catching design and perfect perform-
ance. Also
spring festival brought crowds of music lovers to
Cleveland from all parts of the country. The Dreher
Piano Co., which has had the sale of tickets, has been
kept busy and the trade in general feels that busi-
ness will be stimulated by the large influx of music
loving visitors.
USING FINANCIAL
AIDS PROFITABLY
BOOKLET TELLS SCOPE
OF TUNERS' ASSOCIATION
Where Needs for Additional Capital Are Im-
perative in a Healthily Growing Business
There Are Certain Safe Ways of Ac-
quiring the Necessary Amounts.
Lester Singer, President of Chicago Division
of National Body, Clearly and Convincingly
Explains Purposes of Organization.
PROCESSES ARE SIMPLE
Lester Singer, president of the Chicago division of
the National Association of Piano Tuners, Inc., has
written a message to the tuners outside of the na-
tional body, telling what the association stands for.
"Every piano dealer and salesman should know
what the National Association of Piano Tuners
stands for. It is to their interest to understand the
relation that this organization bears to the trade,"
writes Mr. Singer. "The association after some fif-
teen years of struggle for recognition has no*w
reached the point where its work is understood and
appreciated by the largest interests in the piano trade.
It is fast becoming one of the strongest factors in the
industry."
The platform of the association given by Mr.
Singer is to establish and maintain the highest tech-
nical and moral standards in the profession of piano
tuning. To educate the public on the nature and care
of the piano. To eliminate free tuning, or the prom-
ise of free tuning. The adoption by the manufac-
turers and merchants of a uniform warranty defining
'"proper care and usage," and the abolition of the
practice of charging the tuning department with serv-
ices rendered the sales, advertising and renting de-
partments.
The folder points out that the association was or-
ganized to establish a standard of efficiency in the
art of piano tuning, tone and action regulating; to
acquire knowledge and experience in player work;
to e!evate the profession; improve conditions; create
more business; eliminate the faker, and to correct
the misconception or misunderstanding held by so
large a majority of the piano owning public concern-
ing the piano and the piano tuner's work.
The independent character of the association is
shown in Article II of the constitution which states:
"The association shall not take cognizance of diffi-
culties arising between employer and employe."
HOTEL ACCOMMODATIONS
DURING ANNUAL CONVENTION
Long List of Chicago Hotels Available for Visitors
Prepared by Hotel Committee.
All information about hotel accommodation in Chi-
cago during the convention may be procured from
Henry W. Hewitt, chairman of the Hotel Commit-
tee, who announces that it has compiled a list of
hotel and rate information. Complete information
regarding prices, location, accommodations, etc., has
been secured by the Hotel Committee from a list of
residential hotels adjacent or very convenient to the
Drake, as well as the popular hotels within the loop
district.
Those desiring to make reservations for any of
these hotels for the four days of Convention Week.
June 8 to 11, are urged to act now, either by writing
the hotel, addressing letter to the party mentioned as
in charge or to Henry W. Hewitt, chairman of the
Hotel Committee, care of M. Schulz Co.. 711 Mil-
waukee avenue, Chicago.
COIN OPERATED
for places of entertainment, Theatres,
Movies, Ice Cream Parlors, Etc., Etc.
The best line including the famous
"PIAN-O-GRAND"
"BANJ-O-GRAND"
and "HARP-O-GRAND"
Wide-awake Piano D e a l e r s find
them easy sellers in every community.
Send for illustrated
descriptive circulars.
Nelson-Wiggen Piano Co.
1731 Belmont Ave.,
CHICAGO
THE LATE FRANK HOLTZMAN.
E. V. Galloway, general western manager of the
Henry Holtzman & Sons, with headquarters in Chi-
cago, piano stool and bench business of Columbus,
was in the Ohio city last week to attend the funeral
of President Frank B. Holtzman, senior member of
the Holtzman industry. The deceased was the eldest
son of the late Henry Holtzman, founder of the busi-
ness. He was sixty-three years of age. There are
now two brothers remaining in the business.
ILLINOIS DEALERS' CONVENTION.
Plans for the most successful convention in its his-
tory are being made by the Illinois Music Merchants'
Association and the program for the June gathering
to be held in Rockford will be published soon. The
association is supporting the measure introduced in
the State Legislature to curb "bait" advertising and
other questionable publicity methods, according to
James P. Lacy, the Peoria music merchant, who is
president of the active state association.
But Selection of the Way Leading to Profitable
Results Is Problem of Shrewd Music
Dealer.
By K. N. FRELIGH.
Assistant Vice-President, Bankers' Commercial Se-
curity Co., Inc.
(Mr. Freligh's interesting and highly instructive
address was delivered before the convention of the
Texas Music Merchants' Association, May 8, at
Austin, Texas.)
Because of the constantly increasing demand of
the buying public for the deferred payment plan of
purchase, the music merchant, along with his
brothers in other retail lines, must, in order to handle
each year an ever increasing volume of business,
provide new capital for the financing of his install-
ment sales.
For every result there must be a cause. Let us
then inquire into the determining factors, the sign
posts that point the way; the causes that decide in the
merchant's mind the need for increased capital in his
business. These are:
First: Too little capital to properly swing his
present volume, resulting in financial worry;
the spending of too much time in arranging for
renewals with his local banks and with his manu-
lacturers, thus seriously impairing his efficiency
in selling and collecting.
Second: The possibility of buying new mer-
chandise for enough less for spot cash so as to
show a profit over financing expense.
Third: The chance to develop a much larger
volume of .good sound business, due possibly to
his own selling initiative or to the growth of his
city or town, coupled with inability to handle the
increased volume with present capital.
If any or all of these factors are present the answer
is self evident. The need of additional capital is
imperative and this can lie secured, by a healthily
growing business, in three ways.
First: If the business is incorporated, the
capital stock can be increased and sold to perma-
nent investors, we will quite naturally expect
dividends regularly as long as the stock remains
outstanding.
Second: If the business is not incorporated
additional partners can be taken in and they
will expect and receive their share of the profits
earned, as long as the business continues.
Third: Credit relations can be established
with a responsible finance company and a cer-
tain amount of the merchant's installment paper
can be financed at a discount.
Building Wrong.
1 have disregarded the possibility of largely in-
creasing the dealer's local bank borrowings for the
reason that any dealer who builds an increased vol-
ume of thirty month sales on the foundation of ninety
to one hundred and twenty day bank loans, is build-
ing up a liability that is not self-liquidating and which
is liable to tumble about his ears during the first
business depression.
If the first or second methods are used, the mer-
chant has engaged to share his profits with others
forever. He has created an obligation that will be a
constant drain upon his earnings and in the ultimate
analysis will discover that the price paid for this addi-
tional capital has been very high. It may also happen
that instead of being the final authority in directing
the policies of his company he will find he is subject
to the whims of his partners or stockholders.
The time will come when he reaches his "peak of
sales" and ceases to need this additional capital. Can
he then stop sharing his profits? No, he can not.
Even if he can induce his partners or stockholders
to sell their interests to him, it will doubtless be at a
premium. It is very expensive financing in the long
run.
On the other hand, the merchant elects to discount
a certain amount of his "frozen capital," by this I
mean his long time installment paper, and secures the
additional financing needed, on the basis of paying
for his goods on the same time that he is buying them
on—a self-liquidating basis. He can realize the bene-
fits of this capital during the period of his growth
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/
Mav 9, 1925.
13
PRESTO
and when the time arrives that he ceases to need
outside financing he can gradually eliminate this
expense by simply selling no more paper.
The Profitable Way.
Having decided to use the facilities of a finance
company the next question that presents itself is,
how can these facilities be used most profitably? The
first thing to do is to stop buying on note settle-
ments. There are few manufacturers who will not
sell at a considerably better price, when orders of any
size are regularly accompanied by a certified check,
than on a 4-8-12 months or longer note settlement
basis and the price difference in many instances will
be greater than the usual 2% to 5% cash discount
mentioned on the invoices.
Having determined, by a careful survey of his
anticipated volume of business, his stock on hand,
local conditions, etc., just what goods need be
ordered, an amount of installment paper should first
be sold the finance company to produce cash suffi-
cient to pay for the goods.
The company with which 1 am associated and
which has specialized in the financing of the music
industry for over 18 years past, offers the music mer-
chant its facilities in a variety of ways in order to
serve the needs of the individual merchant. Chief
among these various forms of financing is their so-
called Merchandise Plan which is offered the piano
dealer in co-operation with over forty of the leading
piano manufacturers of the country.
Under this plan all cost of financing is paid by the
manufacturer to the finance company and the Mer-
chandise Plan price of the piano is so computed as to
insure the dealer's getting, in every instance, the ad-
vantage of at least the manufacturer's regular cash
discount. Some manufacturers, who are using the
plan on a scale sufficiently large to secure substantial
benefits from it, have made still further centribution
to the cost of financing so that'the cost to the dealer
is almost negligible.
An Important Consideration.
Rut the important thing to remember is that a
music merchant should never buy on note settlement
and later sell his installment paper to a finance com-
pany to meet the notes. Why? Because when he
does this he pays a long price for his goods in the
llrst place and then pays a brokerage to obtain
funds to pay his notes. If the paper is sold first and
the cash used to pay for merchandise ordered then
the very least the merchant can save as an offset to
the financing expense will be the 2% to S'% cash
discount and in many instances a still better price
will eliminate the balance of the charge.
An operating element inseparable from the proper
Grand and
Reproducing
Grand Pianos
are the last word
musical perfection.
Lester Piano Co.
1806 Chestnut St.
Philadelphia
use of a financing service is turnover. Often times a
dealer has been persuaded by a manufacturer to place
a large order for goods, such of which is not actually
needed until months later, by the offer of very tempt-
ing settlement terms. Such a merchant has forgot-
ten that the very essence of profits is turnover and
the greatest enemy of turnover is heavy inventory.
The merchant with an established line of credit
with a responsible finance company never has to
succumb to the temptation of over ordering as he
has the ready means to pay for his merchandise as
and when needed.
The benefit the merchant receives from installment
paper in his safe is the collections. But when he
uses a certain amount of this frozen capital to settle
for current purchases he has taken the first step in
capital turnover and has placed upon his wareroom
floor new merchandise that, when sold, creates addi-
tional cash and installment paper.
The Process Described.
Under the Merchandise Plan I have already re-
ferred to, you can take ten thousand dollars worth
of thirty months installment piano paper and turn it
into eight thousand dollars' worth of new pianos and
two thousand dollars' worth of the finance company's
interest earning obligations.
Suppose a merchant takes $10,000 worth of his
installment paper and on the basis of the foregoing
illustration turns his investment five times in a year.
His total volume of sales would be $80,000. Suppose
his net profit on this volume was only 6*4% or $5,000.
This would equal a 50% profit on his initial invest-
ment of $10,000, and 50% is a nice profit. And this
is made possible by the proper use of the finance
company's facilities.
And what, may you ask, is meant by the proper
use of the finance company's facilities? Sell your
installment paper only to settle for new merchandise.
Tt is not sound operating practice to sell paper to
meet overhead and other expenses.
For the music merchant the rapidity of turnover
rests in no small degree upon a properly balanced
inventory. The time is fast passing, in the music
trade, when an enthusiastic factory representative,
by the painting of highly tinted pictures of easy set-
tlement terms and anticipated shortage of goods can
induce the average merchant lo overstock, particu-
larly on slow moving styles.
There has been a great deal of loose thinking,
talking and writing about the excessive profits the
finance companies make. As a matter of fact a
reputable company operating under the requirements
of the banking laws and operating in a safe and prop-
erly conservative manner does not make the profits
on its invested capital that an average successful
manufacturer in any line would be satisfied with.
Competition atone will control the fairness of rates.
With about 600 finance companies in the country,
each striving for its share of business the question of
rates will in the long run take care of itself.
The music merchant can feel assured that a finance
company with long experience in his line of mer-
chandising and filling the above qualifications will
pay him a reasonable price for his installment paper.
To operate at a fair profit whether with or without
a financing service the music merchant must of
course first see that his retail sales are made on not
less than a two for one basis, that his installment
contracts bear interest from date, that allowances
made on trade-ins are not so large that the trade-in
can not be sold at a fair profit after the expense of
reconditioning and a fair amount of overhead expense
are added to the amount of the allowance, and that
his collection department is functioning properly.
Greater net profits will be made when the music mer-
chant follows the example of dealers in other install-
ment lines and adds a financing charge on installment
sales.
In closing I might say that 1 believe that in spite
of the automobile, the vacuum cleaner and other elec-
trical appliances, radio and other lines that are com-
peting for the installment dollar, that an aggressive
music merchant with sound sales and collection poli-
cies and adequate financing arrangements will con-
tinue to make money.
NEW COLUMBIA TRADE-MARK.
A patent for a newly designed trade-mark has been
applied for by the Columbia Phonograph Co., Inc..
Bridgeport, Conn., for use in the sale of its prod-
ucts. The red. white and blue, familiar in Columbia
records, are prominent markings on the new trade-
mark, which will cover phonographs, records, record-
ing devices and accessories.
A QUALITY PRODUCT
FOR OVER
QUARTER OFA CENTURY
POOLE
STEGER ANNOUNCES
NEW SMALL GRAND
Remarkably Attractive Small Grand Present-
ing the Features Most in Dealer's Demand,
Will Be Exhibited at June Convention.
So much interest has been indicated by dealers in
the manufacturing program of Steger & Sons Piano
Manufacturing Company that the news of the crea-
tion of a new Steger Small Grand is certain to
attract widespread attention. It is a beauty in every
respect—another de luxe style in the Steger line-up
with a tone that is rich, resonant and satisfying.
When the travelling representatives of the com-
pany were assembled recently, at the Steger factories,
in Steger, Illinois, they were enthusiastic over the
sales possibilities that this small grand is developing.
Just four feet, ten inches long; offered in satin finish
brown mahogany, it possesses a scale that is funda-
mentally correct from a scientific standpoint and the
design is simple, artistic and refined.
This Small Grand will be featured in the Steger
Exhibit at the Convention next month. It promises
to become a potent factor in extending the prestige
and adding to the good-will enjoyed by the strong
Steger organization. It is in keeping with the pro-
gressive strides that the Steger organization is mak-
ing, to state that Chris Steger, Will Pipenbrink,
Henry Burbach, Ed Duffy, Clark F. Gross, Charles
E. Byrne, Oscar Volkman and Don Steger are direct-
ing every effort to advance the success of Steger
dealers, with well developed plans of dealer co-
operation.
DECKER
U
EST. 1856
& SON
Grand, Upright
and
Welte-Mignon
(Licensee)
Reproducing
(Electric)
Pianos and Players
of Recognized
Artistic Character
Made by a Decker Since 1856
699-703 East 135th Street
New York
ft
Builders or Incomparable
(PIANOS, PLAYER^REPRODUCING PIANOS
THE BALDWIN
CO-OPERATIVE
PLAN
will increase your sales and
solve your financing problems.
Write to the nearest office
for prices.
CINCINNATI
INDIANAPOLIS
LOUISVILLE
INCORPORATED
CHICAGO
DALLAS
ST. LOUIS
DENVER
NEW YORK
SAN FRANCISCO
GRAND AND UPRIGHT PIANOS
AND
PLAYER PIANOS
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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