Music Trade Review

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ASTOR,
TiUDEN FOi
THE MUSIC TRADE REVIEW
The Trade-In Problem and Its Solution Discussed by Five Members of the
Piano Trade in a Most Interesting Way — Varied Views on Valuation
and Best Means for Overcoming the Present Disturbing Conditions.
Is there a single issue upon which the sentiment of the entire piano trade may perhaps be united? Is there,
in fact, one single question on which it may be reasonable to suppose piano and player men of all grades, ranks
and shades of opinion may be expected to agree? We believe that there is one, but only one.
That unifying principle we believe to be comprised in the delicate and difficult questions involved in the
acceptance of used straight pianos as part payment for new player-pianos. We may aptly assign to it the com-
prehensive title of "The Trade-in Problem," given by the Editor-in-Chief of The Review in his various discussions
of this important question.
The terms of the problem are simple. There is no standard of valuation for the traded-in piano. Every
dealer is a law unto himself. Valuations are made to fit each individual case. In many, many instances the
allowances made for old pianos are gross exaggerations of fair figures. The result is demoralizing. In only
too many cases it means that the paper profit on player sales is eliminated in the very act of selling. No
healthy retail trade can exist in this condition.
We have obtained the views of several men eminent in the player trade and thoroughly competent to express
a weighty and measured opinion on what is a topic of vital concern to the whole trade.
No one will question the gravity or the sincerity of these men. It is to be hoped that due attention will
be directed towards their words.
In general terms, these gentlemen were asked to base an opinion on the ideas deducible from the follow-
ing questions:
(1) IS IT NOT ADVISABLE FOR THE TRADE TO CONSIDER TAKING SOME ACTION TO SECURE UNIFORM TREATMENT
OF TRADED-IN PIANOS?
(2) COULD SOME BASIS OF VALUATION FOR TRADED-IN PIANOS BE ARRIVED AT BY THE TRADE ASSOCIATIONS
WORKING TOGETHER?
(3) WHAT GENERAL OBSERVATIONS, OTHER THAN THE ABOVE, DO YOU CARE TO MAKE ON THE SUBJECT?
By O. A. FIELD, St. Louis,
President National Association of Piano
Dealers of America.
By FREDERICK A. LUHNOW,
Secretary and Treasurer, the M. Schulz Co.,
Chicago III.
It is my personal opinion that allowances on
"trade-ins" can never be standardized until the
prices on pianos are standardized throughout the
country.
The quickest relief from the present custom of
excessive allowances which we are sometimes
forced to make in trading in second-hand pianos
for player-pianos would be the absolute elimina-
tion of trade-ins; in other words, to refuse to take
in trade any piano or organ for a player-piano.
I do not believe that our association, working
together, could arrive at any solution of this ques-
tion, as our membership does not include any of
the manufacturers and not all of the merchants,
and so long as certain piano houses, both manufac-
turers and merchants, place fictitious valutions on
their player-pianos, so as to secure the advantage
over their competitors on this question of "trade-
ins" as mentioned, we can never eliminate this evil
entirely.
As stated above, the only solution is to refuse
to trade in anything at all on player-pianos, but, in
my opinion, it will take years to accomplish this.
Without a doubt the trade-in problem is ex-
ceedingly important, and exceedingly badly han-
dled by the trade at large. When you take a
straight piano in on trade as part payment for a
new player-piano you are really undertaking two
transactions. You are selling a player-piano to a
person and buying a used straight piano from him.
Unless a profit can be made on both transactions
there is no profit on either one. The piano taken
in trade must be put into good condition and re-
sold, and until it is sold again the original player
sale is not completed. That is big fact No. 1.
Now, the second big fact is that nobody in the
trade is being benefited by a lax method of allow-
ance valuing. On the contrary, everybody is being
hurt, the trade is being demoralized and untold
harm is being done. The public is being educated
in the wrong way, and the results of this wrong
education are incalculable.
I do not believe it can be done, at present any-
way, but the solution can only he found in con-
certed action by the piano manufacturers. I wish
that some of the big men would get together at the
next convention and thrash this thing out. I be-
lieve that a scale of valuations can be worked out,
based on the age and make of traded-in pianos, and
that if the bigger houses would adopt it the solu-
tion would be in sight.
What we want is a system covering all cases of
allowance for pianos given as part payment for
new player-pianos. We can get such a standard,
and here is the way to get it: Let each big manu-
facturer be invited to publish a list showing the
values he will allow or authorize his dealers to al-
low on straight pianos of his own make when
traded in as part payment for new player-pianos
of the same make.
By T. M. PLETCHER,
Vice-President, the Melville Clark Piano
Co., Chicago.
All of the things you suggest in regard to fixing
some valuation on trade-in pianos are very fine
indeed, except for the fact that in the writer's
opinion nothing can be done; and to be perfectly
frank, we are so busy trying to do the best we
know how that I don't believe we would want to
attempt (in view of past experiences) to enter
into any arrangements with the intention of cor-
recting crazy evils along the lines suggested.
That may not sink in at once. It is a big sub-
ject and the solution I have suggested may not
appear in all its beauty immediately. But think it
over and it will soon be apparent.
By W. H. COLLINS,
Principal Retail Piano Salesman, the
Rudolph Wurlitzer Co., Chicago.
There is no doubt whatever in my mind that the
problem of traded-in pianos is one that ought to
engage the careful attention of every player man.
If every retail house had not only the wide experi-
ence necessary to arrive at just valuations and the,
prestige to convince the average customer that the
figures offered are always fair, but also possessed
an outlet for the ready disposal of such goods, then
all would be well. But this happy condition does
not exist everywhere, by any means.
When I sell a player-piano and take a straight
piano, used, in trade as partial payment for the
player, I am undertaking two transactions. I am
selling a player-piano and also buying a second-
hand straight piano. Plainly, then, until the
second-hand piano which I have bought has been
sold again, and at a profit, there is no complete
sale. If anybody makes such sales, supposing that
they are finished when the down payment on the
player has been made, he is fooling himself. The
traded-in piano must be re-sold before the transac-
tion has been completed, and at a profit.
Our own practice is simple. In the first place we
have long retail experience and are able to judge
the value of a piano offered as part payment quite
accurately. No such piano is ever figured on
until it has been examined by our expert men,
who report to us on its condition. This report
forms the basis of our figures. But even that is
not enough, for the moment that piano is received
a definite and large percentage of the allowed valu-
ation is charged off and the instrument inventoried
(Continued on page 7.)