13
PRESTO
July i, 1925.
FRIESTEDT FISCAL
YEAR PLAN DISCUSSED
through the media of their respective sales organiza-
tions. It is the retail trade of the country we are
striving so hard to have make their annual accounting
in accordance with the seasons, or natural laws, in-
stead of on a calendar year basis."
Advantages of the Change Proposed by Chi-
cago Roll Manufacturer Explained Effec-
tively in Article in Collier's Magazine.
SCOTCH DEALERS PROTEST
ILLEGAL AGREEMENT
"Shall We End the Year on June 30," is the title
of an article by James H. Collins in Collier's of June
20, in which the merits of the Fiscal Plan of Arthur
A. Friestedt, president of the United States Music
Co., is explained and its merits made clear. This is
said:
What is your busiest season? Does it come around
Christmas? Most people are busiest then.
And do you stop making or selling goods right in
the middle of it, and tackle the no-profit job of sacri-
ficing paying business to the Great God Inventory?
Arthur A. Friestedt is a Chicago manufacturer. His
business is making playerpiano rolls. When he asked
a young saleswoman in the player roll department of
a big store how many were carried in stock she said
about four thousand.
"How many did you have when you took inventory
in January?"
"About one hundred and fifty."
"You must have lost a good many sales by not
having what customers asked for."
"I'll tell the world we did!"
Worse than that was the experience of a radio fan
who wanted a couple of five-dollar tubes during in-
ventory. The clerk said they were out of stock. The
customer pointed to a pair of these identical tubes on
the shelf.
"We can't sell those now," said the clerk, "because
we're taking inventory—come in next week."
All through December, merchants cut down orders
because they want as little merchandise as possible
on hand when taking inventory. That backs up on
the manufacturer, who cuts down his own purchase
of materials and makes as little stuff as possible, to
lighten the inventory job. Yet the public is in a
spending mood at that season of the year, so that
January inventory amounts to refusing money that
people want to hand you.
After five years' experience with the fiscal year in
his own business, Mr. Friestedt thought he had found
something worth sharing with the music industry and
the business world generally. So he devoted his
advertising space in music-trade journals to advocat-
ing the fiscal as against the calendar year, and also
began speaking about it at business gatherings.
In most lines of business the July inventory falls
in a slack season, and therefore does not interrupt
productive business. You can decide whether that is
true of your own business.
"But will the government let us change our year?"
a good many business men ask. "Wouldn't that vio-
late the income-tax law?"
The answer is that Uncle Sam closes his own year
June 30th, and a general adoption of the idea in busi-
ness would probably lighten his tax peak-load. Any-
body who wants to switch can fill out Internal Reve-
nue Form 1128, "Application for Change in Account-
ing Period," obtainable from the local collectors, and
the thing's done. If your slack period falls at some
other season, you can switch to that.
The business New Year in July! It strikes me as
a mighty sensible idea. Friedstedt says it's a line
making the shortest distance between two points.
"The Fiscal Year Plan will also be dealt with in an
early edition of Sales Management Magazine, whose
managing editor, Mr. Whitmore, is particularly inter-
ested in presenting this subject for the consideration
of sales executives who are more or less adversely
influenced by the common fallacy that the annual
accounting should be on a calendar year basis," said
Mr. Friestedt this week.
"Mr. Whitmore proposes to put this plan over
through interesting sales managers to the extent of
having them influence their jobbers and dealers
Proposal at Recent Scottish Convention Found Un-
acceptable to Majority of Members.
The following trade agreement between the Scot-
tish Music Merchants' Association on the one hand,
and the Pianomakers' Association and the British
Associated Pianomakers on the other hand, proposed
at the recent convention of Scottish Music Mer-
chants' Association held recently was not accepted
on grounds that it was illegal and unnecessary and
in restraint of trade:
"That dealers who are members of the S. M. M. A.
agree to confine their purchase of British pianos to
those manufacturers who are at the date of such pur-
chases, members of either the P. M. A. or the
B. A. P.
"The manufacturers who are members of either the
P. M. A. or the B. A. P. agree to sell no pianos in
Scotland except to members of the S. M. M. A.
An announcement signed by representative Scotch
houses said:
"While we are of opinion that it would be a desir-
able thing that all manufacturers and dealers should
be members of their respective associations, we con-
sider that it is no part of our duty to coerce them
into membership, and it is our opinion that this agree-
ment will be disruptive.
"We wish it understood that we are wholeheartedly
out for clean trading, and it is because we believe
this agreement would have the opposite effect that
we are unitedly opposed to it, and if passed by the
Council of the S. M. M. A. we will never be subject
to it, even in principle."
TRADE-MARKS ABROAD.
Among American firms selling in the markets of
Latin America the custom of substituting a Spanish
or Portuguese equivalent for their word marks, or
else of adopting special trade-marks suited to the
market, is becoming more common.
Whichever
course is adopted, the reaction of the customer in
Latin America should guide the choice. "What does
my trade-mark mean?" the exporter may well ask
himself. Does it suggest the quality of the goods,
their origin, their durability, their comfort, their
economy? Does it command attention? Does it
favorably distinguish the product from competing
goods?
NEW STORE OPENED IN BELLAIRE, O.
A new piano store of the Davis, Burkham and
Tyler Co., of Wheeling, W. Va., was opened at 334
Thirty-second street, Bellaire, O., last week. This
organization operates a chain of stores. The name
of the company is familiar to residents of Bellaire and
adjoining territory. W. P. Hare of the sales organ-
ization stated that he believes the scope in the terri-
tory for an organization such as he represents is
enough to insure success to the new establishment.
CARL JONES, MANAGER.
Carl Jones, the new manager of the piano depart-
ment of the Hyatt Music Co., Portland, Ore., has had
a long experience in that section. He was formerly
district manager for the Columbia Phonograph Co.,
with headquarters in Portland. The Baldwin and
Kohler & Campbell pianos are carried by the Hyatt
Music Co.
are the last word In
musical perfection.
Lester Piano Co.
1806 Chestnut St.
Philadelphia
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.
711 Milwaukee Avenue
CHICAGO
OOTHERN BRANCH: 730 Gandkr Bid*.. ATLANTA, GA
The True Test
Newman Bros.
Compare the new Jesse French & Sons Piano
Grands and Uprights
with any other strictly high grade piano in tone,
touch and general construction, and you will be
convinced at once that t h e y offer the most
exceptional v a l u e s to be found anywhere.
Jesse French & Sons Style BB
Grand and
Reproducing
Grand Pianos
Write today fa catalog and prices
"They are the one best buy on the market"
JESSE FRENCH & SONS PIANO CO.
NEWCASTIF,
INDIANA
Guarantee
Quality, Profit and
Satisfaction
Newman Bros. Co.
816 Dix St.
Est. 1879
CHICAGO
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