Music Trade Review

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THE
MUSIC TRADE
RE™
EDWARD LYMAN BILL, - Editor and Proprietor
J. B. SPILLANE, Managing Editor
Executive and Reportorial Staff:
GEO. B. KELLER.
L. E. BOWERS.
W. N. TILER.
WM. B. WHITE.
BOSTON OFFICE:
F. H. THOMPSON.
EMILIE FRANCES BAUER.
L. J. CHAMBEHLIN.
A. J. NICKLIN.
CHICAGO OFFICE:
E. 1'. VAN HARLINGEN, 195-197 Wabash Ave.
TELEPHONES : Central 414 ; Automatic 8643.
PHILADELPHIA OFFICE: MINNEAPOLIS and ST. PAUL: ST. LOUIS OFFICE
ERNEST II. WAITT, 173 Tremont St.
Ii. W. KAIIFKMAN.
E. C. TOKKKY.
CHAS. N. VAN BUREN.
SAN FRANCISCO OFFICE: ALFRED METZGER, 425-427 Front St.
CINCINNATI, O.:
NINA PUGH-SMITH.
Published Every Saturday at 1 Madison Avenue, New York
Entered at the New York Post Office as Second Class Matter.
SUBSCRIPTION, (including postage), United States, Mexico, and Canada, $2.00 per
year ; all other countries, $4.00.
ADVERTISEMENTS, $2.00 per inch, single column, per insertion. On quarterly or
yearly contracts a special discount is allowed. Advertising Pages, $50.00 ; opposite
rending matter, $75.00.
REMITTANCES, in other than currency form, should be made payable to Edward
i-ymun Bill.
Directory ol Piano The directory of piano manufacturing firms and corporations
found on another page will be of great value, as a reference
Manulacturers for dealers and others.
LONG DISTANCE TELEPHONE-NUMBER 1745 GRAMERCY
NEW
YORK,
F E B R U A R Y
17, 1906
EDITORIAL
S
OME of the most important dealers in America have recently
expressed their views to us regarding the present custom of
granting allowances on used pianos to induce the sale of new
instruments.
There can be no doubt but that this subject is one of the most
vital to the retail department of the trade, and it must be con-
ceded at the outset that in no other line of business are there such
price allowances made on used or battered stock as are in most
cases willingly granted by piano dealers.
The question that naturally arises at the present time when
business expenses are increasing, and retail prices diminishing,
should there not be a revision of the general plan adopted in allow-
ances made, for old instruments ?
I
N many parts of the Union old square pianos have reached a
point where their actual worth is very small, and yet liberal
estimates of their value are made by many dealers for these ancient
piano landmarks when taken in exchange.
Does it pay? That is the question.
One prominent dealer in the West while discussing this sub-
ject with The Review remarked: "I had a lady call upon us re-
cently and state that another firm had agreed to allow her twenty
dollars more for her square piano than we had charged her for it
four years ago.
''You can imagine the opinion she had of the piano business
after such an experience. I claim it was not good business, and
the whole system of liberal allowance on old pianos is wrong.
Let us be square with ourselves and adopt new and rigid plans
concerning exchange values."
A NOTHER dealer states: "In my city I know of dealers who
l \ have been allowing from $200 to $250 and even higher for
. old style two pedal upright pianos, which they would gladly have
sold for from $100 to $125." With the adoption of one price such
concessions are beyond all business reason. If the asking price on
the new instrument was made to fit the case the dealer could save
his profit, but if his price was non-elastic he would lose through the
deaL
. .
Such instances are not rare nowadays since the player piano
has become such a factor. Now is it good business to continue
such a course? When we consider that it requires liberal expendi-
REVIEW
tures to repair these old pianos and get them in shape, does such
trading pay? Is it really exchanging one dollar for another?
There are indeed many piano merchants who are heartily sick
of the present liberal trade allowances which are made for old
pianos, and they would like to adopt some general plan to place
the exchange of values on a different basis.
O
NE man says the selling expense of one of these old pianos
is just as great as a new piano, and of course, the profit is
much diminished, if not cut out entirely. Trade is necessary, but
it is obvious that there should be some sort of a reform in the
exchange department. In hundreds of cases, dealers are taking in
the old, used pianos at such prices that when they are resold there
is usually little or no profit when the selling expense is added to the
allowance price.
Obviously there are peculiar conditions which have crept into
the piano trade, and which have been respected as tradition, and if
the officers of the 1'iano Dealers' National Association should deem
it advisable to take up this subject and deal with it in an intelligent
manner, there is no doubt but that they would materially benefit
the entire trade.
It is full of live interest.
CERTAINLY like conditions do not exist in any other industry.
Furniture dealers most assuredly will not take old furniture
and carpets in exchange. They will not concede the slightest allow-
ance on used home furnishings, and no one ever thinks of entering
a furniture establishment and asking what allowance would be made
for some old worn-out furniture in the place of new. It would sim-
ply be absurd to ask for a reduction on account of worn-out stuff.
The owners know full well that in order to dispose of used furni-
ture they must resort to the auction room and would it be a wrong
move to establish piano auction houses in the various cities which
should be general depots for dilapidated and antiquated instru-
ments ?
H
ERE is a problem, a profitable solution of which would mean
a large saving in expense, and would stimulate the sale
of thousands of new pianos.
Every department of the music trade industry has evoluted
during the past few years, and there is no reason to doubt but that
there are many things which have been accepted just because they
have become traditions that are radically wrong and common sense
and good business prudence will establish some kind of a reform
in the exchange department.
A
N illustration showing what may be accomplished through busi-
ness persistence is instanced in the fact that representatives
of the leading talking machine companies have succeeded in bring-
ing about a revision of freight rates on talking machines which
will mean a saving of many thousands of dollars to the dealers in
all sections of the Union.
Through the efforts of the trade representatives, talking
machines and records are reduced from one and one-half first class
to first class in less than carload lots, and to third class in carload
lots. This substantial reduction is the result of effective work on
the part of the men who have the matter directly in charge, and
every talking machine man in this country will benefit through the
operation of this tariff, which goes into effect on April 1st.
A
LARGE Western manufacturer in a recent communication to
The Review stated: "I believe we will have a year of unpre-
cedented business activity unless labor troubles occur to prevent."
Of course, no one can tell with any kind of accuracy what effect
a prolonged coal strike would have upon all of our business inter-
ests, but it does not look as if we stood in much danger of serious
labor troubles. Of course we will always have more or less dis-
turbed conditions. It is not to be expected that everything will
move along without a ruffle on the commercial surface, but there
are business plans made for the year which insure tremendous activ-
ity in all lines. There can be no general stagnation unless the whole
conditions are completely upset.
A recent computation shows that two hundred thousand tons
of structural steel alone will be required for buildings to be erected
in this city the coming season.