Music Trade Review
Issue: 1911 Vol. 53 N. 9 - Page 5
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TRADE
REVIEW
Business—and Piano Selling Terms
The Outlook for Fall Business Is Good and Reports From Commercial Centers Show That Liberal
Buying Is Now in Order—The Time to Revise the Terms on Which Pianos Are Sold—
The Credits Are Too Liberal and Encourage Indifference on the Part of Merchants-
Shortening of Time Would Work Out Advantageously All Along the Line.
STUDY of the trade in various sections of the Union shows
a growing confidence on the part of .all lines of manufacturers
and merchants. •
It is a positive pleasure to note the good feeling and the daily
developments all in the line of progress and to watch the increasing
confidence among buyers who are now visiting the larger cities in
great numbers.
Pessimists are about as scarce as the dinosaur. Xot that the
visitors are enormous buyers—they are not; but they buy fairly
liberally, for most business men consider that delays are dangerous
and that buying for seasons should be as regular as clockwork.
So fall buying is progressing rapidly, and thus far in many
trades the total sales up to the present time averages 10 per cent,
greater than last year.
Of course there is no scarcity of merchandise, but the outlook
is for a good fall business; and there is no time like the present
to get in shape to make the most of trade conditions.
This applies to every line of business.
Fundamentally, the business is healthy and manufacturing and
farming conditions through the United States show the future as
one of growing promise.
In some cities wholesaling and retailing trade is reported active
right now, while, of course, in certain sections local dulness exists
on account of heat.
All, however, see the coming autumn and winter as times of
prosperity.
Special reports from Chicago show that current business condi-
tions in that city and vicinity, although not entirely satisfactory,
are considered fundamentally healthy, and the outlook gives reason
for encouragement, according to the views of local bankers and
business men.
There is a disposition to place much confidence on the later
crop reports, which puts a cheerful view on the crop situation.
The banking reports, which are based on conservative estimates
by bankers, railroad officials, businessmen and farmers, estimate the
total wheat yield at 642,000,000 bushels, as compared with about
600,000,000 based on the Government returns.
Chicago bank clearings are approximately those of a year ago.
This is taken as evidence of a strengthening business condition.
The weekly reports of the department stores indicate a freer
hand in country purchases.
The merchants are looking forward to a good autumn business.
The steel interests show an increase in orders.
In the South there is the best cotton and cereal report that that
part of the country has ever known.
In the Xorthwest the tone of business is excellent.
In fact, from all over the country come optimistic statements
.vhich should clear away the fog of despondency which has settled
lown in certain quarters.
The piano merchants of the country should show their faith
in the business situation by placing orders early.
The manufacturers will then be enabled to make their plans
iccordingly: and right now is the opportunity for reformation in
;ertain quarters regarding selling terms.
There has been a great tendency on the part of piano manufac-
turers to sell pianos on too long time.
The terms of sale have been constantly expanding to such ar.
extent that to-day they have gone beyond the reasonable limit line;
and there should be a shortening of time so that pianos will be sold
on terms which conform with the credits granted in other lines of
A
trade.
1 here has been a disposition on the part of some to reach a
ridiculous point.
In this way lhe\ have encouraged dealers to sell pianos on
absurd terms; and in this particular line there should be a speedy
trade reformation.
It can be worked out right and without injustice to any indi-
vidual, and there is no time better than the present to adjust this
important matter.
Everyone knows that the sales terms have been steadily expand-
ing in this trade, and while there are some who hold uiideviatingly
to good mercantile rules in the conduct of their business, there are
others who have thrust them aside and have created new rules in
granting credit terms.
The reckless extension of credit reacts; while admitting that
this is a credit world and a credit age, the rules governing credits
are too lax.
>
To much credit is bad for the retailer unless he happens to be
a very level-headed business man.
Unlimited credit and frequent extensions lead him to become
careless in his own collections and when the pinch comes he is
usually caught; but it does not end with him, for the man who is
carrying his paper is caught and caught badly.
It should be understood that the piano trade is not the only line
of business that suffers at times from careless or too generous
credit; but we all recognize the fact that we can draw in on the
credit line with excellent results.
It would decrease losses from failure very materially—hence,
buying too easily does not pay!
Cut down the terms granted in piano selling.
I
A great many men fool themselves by believing that a big
business constitutes success; and, there are many houses that go
down simply through doing business on paper.
1
' .
Xow, the percentage of losses from failure would be infinitesir
mal if more business intelligence were displayed in the passing
upon credits.
()f course, the piano trade is not the only line of business that
suffers from carelessness or too generous credit.
Other trades have their own troubles; but, we are not directly
interested in what surrounds any other line of trade but the piano
industry, for that is close to us at all times.
We have pointed out at various times the danger of too liberal
selling terms, and then in some cases the giving of notes does not
mean an obligation to pay at the time indicated on the documents,
but it may mean any indefinite time away off in the shadowy
future.
A business to be profitable should be conducted on systematic,
careful lines, and there is no better time than the present to remodel
the whole credit system.
Make it so reliable that the structure will stand strain and
stress of any kind of weather which may be encountered. Make
it bomb-proof, even.
I Jut, it should be understood that long selling terms are not
an indication of good business stability.
They are on the other hand an indication of weakness, and these
are not the times to show weakness. There are plenty of evils
which creep into any industry, but there is nothing which affects a
business in a more vital manner than that of credit.
It affects the manufacturer and the retailer—in fact, the whole
svstem.
THE
MUSIC TRADE
REVIEW
Business—and Piano Selling Terms
The Outlook for Fall Business Is Good and Reports From Commercial Centers Show That Liberal
Buying Is Now in Order—The Time to Revise the Terms on Which Pianos Are Sold—
The Credits Are Too Liberal and Encourage Indifference on the Part of Merchants-
Shortening of Time Would Work Out Advantageously All Along the Line.
STUDY of the trade in various sections of the Union shows
a growing confidence on the part of .all lines of manufacturers
and merchants. •
It is a positive pleasure to note the good feeling and the daily
developments all in the line of progress and to watch the increasing
confidence among buyers who are now visiting the larger cities in
great numbers.
Pessimists are about as scarce as the dinosaur. Xot that the
visitors are enormous buyers—they are not; but they buy fairly
liberally, for most business men consider that delays are dangerous
and that buying for seasons should be as regular as clockwork.
So fall buying is progressing rapidly, and thus far in many
trades the total sales up to the present time averages 10 per cent,
greater than last year.
Of course there is no scarcity of merchandise, but the outlook
is for a good fall business; and there is no time like the present
to get in shape to make the most of trade conditions.
This applies to every line of business.
Fundamentally, the business is healthy and manufacturing and
farming conditions through the United States show the future as
one of growing promise.
In some cities wholesaling and retailing trade is reported active
right now, while, of course, in certain sections local dulness exists
on account of heat.
All, however, see the coming autumn and winter as times of
prosperity.
Special reports from Chicago show that current business condi-
tions in that city and vicinity, although not entirely satisfactory,
are considered fundamentally healthy, and the outlook gives reason
for encouragement, according to the views of local bankers and
business men.
There is a disposition to place much confidence on the later
crop reports, which puts a cheerful view on the crop situation.
The banking reports, which are based on conservative estimates
by bankers, railroad officials, businessmen and farmers, estimate the
total wheat yield at 642,000,000 bushels, as compared with about
600,000,000 based on the Government returns.
Chicago bank clearings are approximately those of a year ago.
This is taken as evidence of a strengthening business condition.
The weekly reports of the department stores indicate a freer
hand in country purchases.
The merchants are looking forward to a good autumn business.
The steel interests show an increase in orders.
In the South there is the best cotton and cereal report that that
part of the country has ever known.
In the Xorthwest the tone of business is excellent.
In fact, from all over the country come optimistic statements
.vhich should clear away the fog of despondency which has settled
lown in certain quarters.
The piano merchants of the country should show their faith
in the business situation by placing orders early.
The manufacturers will then be enabled to make their plans
iccordingly: and right now is the opportunity for reformation in
;ertain quarters regarding selling terms.
There has been a great tendency on the part of piano manufac-
turers to sell pianos on too long time.
The terms of sale have been constantly expanding to such ar.
extent that to-day they have gone beyond the reasonable limit line;
and there should be a shortening of time so that pianos will be sold
on terms which conform with the credits granted in other lines of
A
trade.
1 here has been a disposition on the part of some to reach a
ridiculous point.
In this way lhe\ have encouraged dealers to sell pianos on
absurd terms; and in this particular line there should be a speedy
trade reformation.
It can be worked out right and without injustice to any indi-
vidual, and there is no time better than the present to adjust this
important matter.
Everyone knows that the sales terms have been steadily expand-
ing in this trade, and while there are some who hold uiideviatingly
to good mercantile rules in the conduct of their business, there are
others who have thrust them aside and have created new rules in
granting credit terms.
The reckless extension of credit reacts; while admitting that
this is a credit world and a credit age, the rules governing credits
are too lax.
>
To much credit is bad for the retailer unless he happens to be
a very level-headed business man.
Unlimited credit and frequent extensions lead him to become
careless in his own collections and when the pinch comes he is
usually caught; but it does not end with him, for the man who is
carrying his paper is caught and caught badly.
It should be understood that the piano trade is not the only line
of business that suffers at times from careless or too generous
credit; but we all recognize the fact that we can draw in on the
credit line with excellent results.
It would decrease losses from failure very materially—hence,
buying too easily does not pay!
Cut down the terms granted in piano selling.
I
A great many men fool themselves by believing that a big
business constitutes success; and, there are many houses that go
down simply through doing business on paper.
1
' .
Xow, the percentage of losses from failure would be infinitesir
mal if more business intelligence were displayed in the passing
upon credits.
()f course, the piano trade is not the only line of business that
suffers from carelessness or too generous credit.
Other trades have their own troubles; but, we are not directly
interested in what surrounds any other line of trade but the piano
industry, for that is close to us at all times.
We have pointed out at various times the danger of too liberal
selling terms, and then in some cases the giving of notes does not
mean an obligation to pay at the time indicated on the documents,
but it may mean any indefinite time away off in the shadowy
future.
A business to be profitable should be conducted on systematic,
careful lines, and there is no better time than the present to remodel
the whole credit system.
Make it so reliable that the structure will stand strain and
stress of any kind of weather which may be encountered. Make
it bomb-proof, even.
I Jut, it should be understood that long selling terms are not
an indication of good business stability.
They are on the other hand an indication of weakness, and these
are not the times to show weakness. There are plenty of evils
which creep into any industry, but there is nothing which affects a
business in a more vital manner than that of credit.
It affects the manufacturer and the retailer—in fact, the whole
svstem.
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