March 3, 1928
PRESTO-TIMES
HOW TO KILL THE
PUZZLE AD EVIL
Cooperation of Individuals and Associations
in the Music Trade Can Successfully
Combat an Evil Which Calls for
General and United Action.
By C. J. ROBERTS,
I'resident, National Association of Music Merchants.
The crooked puzzle scheme advertising in the piano
trade can be broken up. It can be done, however,
only if the merchants in the territories in which these
schemes are worked go after the operators intelli-
gently and aggressively. Our association's execu-
tives have opposed puzzle scheme advertising and
have done what it has been possible for them to do
to check it and render it unprofitable and dangerous.
Our executives have frequently been in communi-
cation with the Fost Office Department, and more
than one personal interview has occurred with the
officials. I have sometimes suspected that the post
office officials have regarded some of our complaints
as reflecting the individual views of disgruntled mer-
chants who have envied the successful puzzle scheme
operators, hut upon investigation T am now obliged
to say that I believe the department officials will co-
operate with us whenever we put up the right sort
of fight.
Local Dealers' Part.
The National Association executives cannot go
about the country personally and do what is neces-
sary to bring these crooked operators to justice. As
I have said, this has to be done by the local dealers
themselves. Sometimes well organized and directed
Better Business Bureaus have succeeded in breaking
up the operations of these crooked dealers, but not
always.
The Jail Cure.
We have had a number of cases up during the past
few months. The only way that I know how to
break up this crooked advertising is to get the adver-
tisers in jail. This can only be done by securing the
proof that the operator has advertised a certain
instrument at a certain price, in part payment of
which he has accepted a coupon and a duplicate of
which instrument he has sold and will sell at a price
lower than the advertised price without the value of
the coupon figuring in the transaction. That is what
was done here in Baltimore and the dealer in ques-
tion spent a couple of years in Atlanta as a result.
I do not recall that the scheme has since been oper-
ated here.
The Difficulty.
There could be no objection raised to a legitimate
merchant employing a puzzle or any other curiosity
11
attracting scheme designed to secure prospects. The
only trouble about this is that unless the customer
thinks he or she is getting something for nothing
the prospects are not secured.
To my mind any scheme of advertising which will
induce a customer to reply to an advertisement, and
in return receive a coupon or bond, the face value
of which can be allowed toward the purchase of a
piano, is crooked if the same piano can be pur-
chased for less than its advertised price without the
coupon or bond.
The general objection to the use of puzzle scheme
advertising is that it has always been crooked. I have
never known of a case that was successful and at
the same time honest. If such a scheme could be
worked out that would while being honest, secure
results, then there ought to be no objection to it on
the part of any sane merchant. Personally, I do not
think that is possible.
KEEPING MERCHANTS
IN PIANO TRADE
Comment on Letter from Elmon Armstrong
Printed February 18 Upholds the "10-8"
Commission Plan of Paying Salesmen,
and Other Suggestions.
In Presto-Times, February 18, Elmon Armstrong
adversely criticized some of the "Suggestions to Help
the Trade" of an anonymous correspondent, printed
January 14. The latter prescribed limits in trade-in
allowances on nationally priced instruments and said
dealers cannot afford to pay over 10 per cent com-
mission on pianos or over 8 per cent on phonographs
or radios for first-class or par sales. These commis-
sions including expenses and teachers' commissions.
The writer also said "the weekly drawing account
should not exceed one-half to two-thirds of the sales-
man's probable earning capacity because surplus
earnings should always be payable the 10th of the
month." In reply to Mr. Armstrong, the anonymous
President of R. L. Jones Music Co., Sandpoint, Re- author of the "Suggestions" comes back this week
with the following counterblast:
cently Named in Involuntary Bankruptcy.
ANSWERS MR. ARMSTRONG.
Following closely upon the announcements that
This
communication
you might very properly head
involuntary bankruptcy proceedings had been filed
in federal court, and that a warrant had been issued '"Keeping Merchants in the Piano Trade." The
for his arrest at Wallace, Ida., R. L. Jones, Sandpoint, writer of the article of February 18 is an old-timer
Ida., has been named as defendant in two suits for living in the past. Piano profits that "were" are,
mortgage foreclosures brought in district court in "never more." Mark up has decreased, overhead has
Sandpoint. One suit was filed by the First National increased. Musical instrument merchants are being
Bank, and the other by the Bonner County National ground between the upper and nether millstones.
The trade urgently needs a sifter that will separate
Bank. Both banks seek to recover sums of money
alleged to be due on promissory notes executed by the chaff (clerks) from the wheat (salesmen). The
Jones as president and treasurer of the R. L. Jones ten-eight plan is the modern, practical sifter. It
works like a charm, and is as close to fifty-fifty in
Music Company.
The Bonner County National Bank is asking a fairness to all three angles of piano, phonograph or
judgment for $2,370.83, interest, attorney's fees and radio sales (customer, salesman and merchant) as
costs. The First National Bank is asking for a judg- human intelligence can devise a plan under existing
ment of $1,196.50 with interest, attorney's fees and circumstances and the probable future trend of this
industry.
costs.
Spoke from Experience.
The Jones company was recently named in an
action for involuntary bankruptcy filed in United
The originator of the ten-eight plan has probably
States district court by Sandpoint creditors. Monday, peddled organs and pianos in the country districts,
a warrant was issued for Mr. Jones' arrest at Wal- pounded pavements and pulled and pushed doorbells
lace upon complaint of W. *O. Straight, vice-presi- in the city, closed 'em on the floor, and therefore
dent of the First State Bank of Kellogg, who alleges knows his piano business thoroughly. He employs
that Jones made false statements in obtaining a loan. several splendid accountants, but checks their work
every three months with specially hired certified pub-
lic accountants. No guess work, or hit-and-miss
LEASES PART OF FACTORY.
The Playtime Equipment Company, manufacturers schemes in his system.
Knowing the approximate and exact gross per-
of playground equipment of various kinds at Hunting-
ton, Ind., has completed negotiations for a lease of centage of profit, he can make on nationally known,
a portion of the Schaff Bros, piano factory building nationally priced instruments, also the itemized costs
and movement of the leasee's machinery and stock of operation, he knows that 10 per cent on pianos
and 8 per cent on phonographs and radios are the
was started last week.
highest percentages any well-managed, reliable firm
James Kitchen is successor to James Dayton at can afford to pay a salesman working on and off
the floor in order that he may net a reasonable per-
BlufTton, Ind.
centage of profit on his investment. And, we will
consider up to 10 per cent or even 12 per cent net is
a reasonable percentage for a musical instrument
merchant to earn on his investment with its risks
and worries.
Possibly the author of the February 18 article did
not take into consideration the fact that the firm
using this ten-eight plan was one of the best in the
U. S. A., located in a center of large population and
diversified industries, has an excellent line of well
known agencies, is a liberal advertiser, uses broad
gauge methods and gives the salesmen a regular turn
on the floor, also all the privileges of floor or store
selling in addition to a regular "turn" and pays the
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