Music Trade Review

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THE
MUSIC TRADE
REVIEW
Seeking A Solution of the Trade-in Problem.
UDGING from the number of letters received this week from
dealers throughout the country, great interest continues to
be manifested in the trade-in problem, which has been discussed
recently at length in various editorials in The Review. There
is naturally a diversity of opinions as to the best means of arriv-
ing at some basis of understanding anent the adoption of a plan
whereby the values of pianos traded-in in exchange for player-
pianos and other instruments, might be fixed absolutely.
This, of course, is to be expected, for it is a question of
supreme importance, and the elucidation of which interests every
retail piano man in the country.
A discussion of the best plan of solving this problem is espe-
cially pertinent and timely, preceding as it does the annual con-
vention of the National Piano Merchants' Association in June,
when, as suggested by The Review, the matter should come up
for consideration as one of the "live" questions of the day.
Writing on the subject, A. L. Jewett, vice-president and
general sales manager of the National Piano Co., of Boston,
Mass., says:
"Your recent articles concerning trade-ins, and your invita-
tion to everyone to enter the discussion, could not come at a
more opportune time than now, when there seems to be so much
variance in the treatment of these transactions.
"If there is any one thing important for the dealer to know
accurately it is how much can he afford to allow for instruments
that he must take in exchange, for this is nothing more nor less
than an investment on his part that he is compelled in some way
to make a profit or loss on.
"The general conditions when organs and squares were
coming back in exchange for uprights were about the same as
now, and in this age, which might be called the "player epoch"
in the musical instrument business, it is more vital than ever that
the basis of exchange be right.
"It would be a good thing to bring this question before the
National Piano Dealers' Association, but that would likely result
in no more than securing the "sense" of that body, yet the dis-
cussion would be interesting and instructive, and would likely
serve to set more dealers in the right path.
"A few dealers have always handled the trade-in matters
right. Many others have, perhaps, done it with fair profit, al-
though not on the right basis, and in competition it has been
especially hard for the one-price dealers, because the other
dealers of elastic-price tendencies, especially such as put a fic-
titious price on low-grade pianos, usually offer for the old instru-
ments much more than they are worth, frequently more than
they can be retailed for.
"One great big point many dealers and salesmen seem to
forget is that when there is an old instrument for exchange two
sales, with the attendant costs of both, have to be made to realize
the proper profit, and therefore the trade-in is worth no more
than another insrument of like value at wholesale costs.
"If every dealer would sell an instrument for a fair price,
and allow no more, regardless of competition, than the trade-in
is worth to him and every dealer who has the elements for suc-
cess can readily determine this, there would be but very little
trouble.
J
"It is doubted if pianos can be graded according to standard
and age to make a fixed rule that any number of dealers could
go by, because after a few years the value of any pianos of the
same name will vary largely, according to the treatment they
have received in the meantime, and even if this condition did not
exist, as someone has aptly said, 'In competition it would be
absolutely impossible to hold any large number of dealers to fixed
allowances.'
"The most help on this important subject will.follow by
everybody using so far as possible his individual influence that
retail prices of new pianos will be fairly fixed, and this will almost
compel the right allowance for old instruments in exchange.
"The majority of the trade that is successful has been
handling this matter about right, and since handling it right
means the best success, others will gradually be brought around
to the right way of looking at it."
In the symposium of opinions expressed by the piano mer-
chants of Detroit on the trade-in problem set forth in The
Review last week an interesting suggestion was made by
Leonard Davis, the local representative of the Melville Clark
Piano Co., who said:
"Now, why couldn't we establish a sort of clearing house,
rent a store somewhere which should be known as the central
second-hand piano store of the city? We could put a couple of
men in charge who were not affiliated with any of the regular
stores.
"When it came to taking a piano in trade, let one of the
men in charge of that store view it and fix a value upon it, with-
out taking into consideration the value of the instrument it was
to be traded for. Such a valuation would be an intrinsic one,
based upon the price for which the piano could be sold. Then,
instead of having the instrument sent to the dealer's store, have
it sent to the second-hand store, to be sold there and the amount
credited to the dealer's account. The dealers could combine, or
form a sort of corporation for the conduct of the second-hand
store.
"It wouldn't have to be advertised. Being the only one in
town it would soon become known as an institution, just as a
public market is. It could be in a side street, and thus the ex-
pense would be small. Under this plan, no matter to what store
a man applied for a chance to trade-in his piano, he would be met
with the same valuation. This would save a lot of time now
lost in dickering, and would result in the prospect buying the
piano he really liked best, instead of being influenced by the price
offered for his old one."
This is only one of several timely suggestions put forth by
Detroit piano men, and we shall be glad to hear from others on
this subject, because there is nothing that can be taken up for
consideration that operates more effectively to the advancement
of the trade than a discussion of this question of a standard valua-
tion for trade-ins.
The old saying has it, that in a multitude of counsellors there
is wisdom, and it is certain that a discussion of this topic by the •
multitude of piano merchants will result in a better understand-
ing of the conditions and the adoption of working plans that will
result in direct benefit to the industry as a whole.
fight, and has set another precedent by which piano dealers may
be guided in similar cases. Despite the importance of the case
to the trade at large, however, the Ludwig company received no
co-operation from,other piano houses in the city, but had to bear
the entire burden itself.
In this connection there arises the question of co-operation
between piano dealers in handling matters that are of vital in-
terest to them all. Had the case been decided against the piano
company every dealer in the city would have faced the possi-
bility of losing pianos through the purchasers becoming bank-
rupt, and yet, though there is an association in the Philadelphia
trade, no apparent effort was made by the other dealers to sup-
port the Ludwig company in its fight.
In times of trouble there should be strong co-operation
among the members of a trade, for the action and protest of the
many is practically always more effective than the efforts of the
individual.
A few dollars spent by the dealer in helping a com-,
petitor carry on a fight against a danger that threatens all may
result in the winning of the fight and save the contributing
dealer a much larger sum if he had to fight the same case over
again on his own account.
Even such strong competitors as New York music pub-
lishers, in whose ranks jealousy finds a stronghold, join together
with a rush when song pirates or adverse legislation threaten. In
cities where there exist associations of piano men there should
exist special funds for legal defense and offense in cases where
the welfare of the trade as a whole is threatened.