Music Trade Review

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THE MUSIC TRADE REVIEW
THE WEAK LINK IN THE CHAIN.
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tion which would be most distressing. They were fearful of the quality of the piano leases, but
an expert analysis of the entire accounts showed but a trifling difference between the value of
the assets as estimated by the owners and the value estimated by expert accountants. That cer-
tainly showed that the management had the right iclea of its own resources.
Then, again, what was most pleasing, when the character of the leases was placed under the
strongest possible test, and careful analysis was made, every lease was carefully checked, it was
found that payments had been made with such regularity and exactness that the amount of cash
received each month was surprising even to those who had manifested the greatest confidence in
the enterprise at the start. It proved not only the stability of that particular business, but shows
the strength of good leases. When a man makes his estimates of worth upon good leases, he is on
pretty sound ground because piano leases are good property, and I have always contended that
while the piano business is conducted on the deferred payment plan, it is perfectly safe if piano
merchants would only safeguard their own interests with reasonable precaution, and sell their
instruments only to people whose record is found reliable and show responsibility. So long as
those elements exist the piano business is a safe enterprise, and under any kind of stress, no matter
how severe, it will show up splendidly, because the true fundamentals of soundness will stand any
strain that may come.
Sell pianos to people who have responsibility—then there is no weak link in the chain.
And dealers should see to it that they do not cumber up their warerooms with a lot of ancient
and out of date instruments which have been taken as part payment on new player-pianos.
The system whereby exaggerated valuations have been placed upon traded-in stock has been
one of the fundamental weaknesses of the retail trnde. It is a weakness which could be easily reme-
died, provided concerted national action be taken, and it is to be hoped that when the piano men
convene in New York next month that there will be put into effect
strong measures whereby the business situation may be cleared mate-
rially by reason of the adoption of intelligent and businesslike plans
which shall govern all allowances made for trade-ins. Strengthen the
weak link in the trade chain.
Better Terms on Retail Piano Sales
R
ESOLUTIONS passed by trade associations may not be en-
forceable, but to tbe thinking member of the trade the fact
that a gathering of his fellow merchants thought enough to indorse
such resolutions should give them weight and make the subject
matter o'f the resolutions worthy of earnest thought.
Such is the case with the following resolution passed by the
Connecticut Piano Dealers' Association at their annual meeting
held in Waterbury recently.
"Be It Resolved, That the members of the Connecticut Piano
Dealers' Association do all in their power in the conduct of their
several businesses to elevate the terms at which pianos are sold, both
as to initial and monthly payments."
The resolution preceded a long and comprehensive discussion
of the question of terms, and it was strongly suggested that the
minimum terms be fixed at 10 per cent, of the purchase as initial
payment and 4 per cent, monthly on instalment payments.
The question of better terms demands the consideration df
every live piano dealer who expects to remain in business and meet
his financial obligations, especially so since the player-piano, and
its higher price, has become such a strong factor in the trade. If
a resolution, such as that reproduced, will set the piano merchants
of the country thinking it will have accomplished a most desirable
result. The National Association of Piano Merchants at the con-
vention in June might well consider the drafting of a similar reso-
lution for the consideration of piano merchants both in and out of
the association.
The handling of trade-ins and the elimination of misleading
advertising are mighty important subjects, but the consideration
of financial methods and their improvement are also vital.
That is the main foundation of any business and the other ques-
tions, also distinctly important and worth while, are accessories to
the main question—finance.
To Prevent Discrimination in Prices
T
HERE seems to be a growing sentiment throughout the country
in favor of the Stevens Fair Trade Bill which is now before
Congress. This bill, according to its title, aims to prevent discrimi-
nation in prices and to provide for publicity of prices to dealers and
the public. It is especially designed to prevent so-called price-
cutting. If enacted, it will permit the producer or manufacturer of
an article under a trade-mark or special brand to fix the price at
which such article may be resold at wholesale or retail and will
make valid contracts prescribing such uniform price. This would
put an end to cut rates, and also to many kinds of bargain sales.
The bill forbids monopoly or combination, requires the retail
price to be affixed to the article and the filing of trade-marks and
brands with the Bureau o f Corporations, together with a statement
of the wholesale and retail prices, and forbids any discrimination.
At the recent annual convention of the Connecticut Piano
Dealers' Association this bill won unanimous approval and was
highly commended. Again the retail merchants of New York,
including many members of the talking machine industry, held a
public meeting at Aeolian Hall late last week favoring the passage
of this measure, while this week full expression of the views of
the members of the Merchants' Association of New York was
arranged for at a meeting which was held on Wednesday.
Business men everywhere are in favor of this measure, inas-
much as it takes a definite step toward preventing- price cutting
and that elasticity in prices which lead to questionable practices
in merchandising. ^
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