Music Trade Review
Issue: 1914 Vol. 58 N. 4 - Page 5
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
REGARDING THE DISTRIBUTION OF PROFITS.
(Continued from page 3.)
Of course these are extreme views, and most men believe in just labor compensation laws, but,
it is true, hasty legislation usually works out detrimentally in many ways not anticipated by its
projectors.
There is a desire, which is world-wide, to adjust conditions so that there will be more satisfac-
tory relations existing between capital and labor, but legislation rushed through without proper
consideration may work much injury many ways, such as hasty action on the part of well-disposed
employers sometimes brings about a condition infinitely worse than that which existed before.
It may be a good plan, now that we are having commissions of all kinds, to appoint a national
commission to work out some favorable plan, so that men whose hearts are warming up towards
humanitv might have reasonable suggestions made to them for action ^_—^
^_
*
along lines of economic soundness. Then they would be able to work
off their surplus of money and show their devotion to the cause of
humanity without going off at half-cock and upsetting things generally.
wvusvu
Less Business, but Safe Business
T UDGING from the price-baiting advertisements put forth in the
I great metropolitan dailies throughout the land, one would be
led to believe that regular prices in mercantile offerings had
ceased, and that practically all of the merchants in every line were
disposing of their products at rates varying anywhere from 25 per
cent, to 50 per cent. off.
It would seem to show that the American people have been
fed so long on bargains that they like that sort of food, and would
be satisfied with nothing else, but this price-slaughter advertising
really has succeeded in creating an unsatisfactory condition in most
trades.
Price-cutting in the exploitation of merchandise has been con-
tinued for such a long period that it seems that nothing else but an
abnormally great price slaughter attracts people, and we have gone
the limit.
Cut-rate advertising seems to be sort of a national disease.
They have it even in the talking machine trade, which is an im-
portant industry controlled practically by three houses. Along
these lines, the following was taken from the last issue of The
Talking Machine World:
"Every man in the talking machine trade has had the advantage
of nationally advertised products and has had a price protection
which has been of infinite value. A condition of price cutting and
business disturbances have thus been happily and wisely avoided.
And yet notwithstanding these unusual conditions of strength and
stability there are retailers who, by their public exploitation, are
doing things which would seem to us are not warranted by the con-
ditions which surround the talking machine industry.
"Take, for instance, a public exploitation in which talking ma-
chines are offered on terms which are not in accordance with sound
business methods, and which seem to us to be superfluous and un-
called for.
"According to the advertising announcements of a department
store, one dollar will place a $15 machine and $9 worth of records
in the homes of purchasers. Future payments can be made at the
rate of fifty cents.
"A. $5 payment will place a $100 machine and $10 worth of
records in the home of the user, and a $10 note puts a $200 ma-
chine and $10 worth of records in the same place, and that may be
given back if the machine is returned.
"Do not merchants who sell on such a basis strike a blow at
the stability of the business everywhere? Why pay cash, even if
you have it, when such terms are thrust at you?
"We should bear in mind, too, the fact that such offerings affect
the entire trade. They establish a standard of selling terms which
is liable to be put up to talking machine men in every city and every
hamlet throughout the land.
"What in the name of common sense, when there are not
enough goods to go around, is the use of offering a man a machine
worth $200 and $10 worth of records for a ten dollar note?
"The buyer can use the machine a month with the records and
then return it, and get his money back. The returned machine is
sold again as new. Is this right?
"What is the machine but a used product, and how much are the
records depreciated?
"Furthermore, does anyone believe for a moment that there are
not many people who would take advantage of such terms who do
not, at the time they order the machine, expect to keep it beyond a
very limited time?
"Again the advertisers deliberately turn a cash business from
their own establishments by such offerings.
"Why should a man pay cash for a talking machine when he
can get one for a few dollars per month? Why not run over a
period of a couple of years in his payments when it costs him no
more?
"Such advertising hurts in more ways than one, for it creates
a long time small payment credit business out of what otherwise
might prove a near cash transaction, and it tells the man who has
the cash that he need not pay it save in homeopathic doses over a
long period. Is that good business?
"What is the advantage of offering a hundred dollar machine
for $5 a month and a bunch of records included?
"Under those conditions the purchaser who desired to have a
talking machine in his home during the holidays could secure a good
machine and a few records before Christmas, and after a month's
use decide that he does not desire the machine, return it with the
records, and get his money back. Can you beat it? Not very
well—machine, records, music for a month at no cost."
Price cutting exists in all trades, but it would seem from some
of the advertising matter put forth by various piano houses that
instruments are offered at prices and terms far beyond the limit of
business reason.
Now, piano merchants could not make such terms unless they
were supported by manufacturers, and it has always been a con-
siderable source of wonder why a man who could not get credit
for a suit of clothes in his home town could, through some plausible
story, obtain credit from piano manufacturers to the extent of many
thousands.
The business itself is made up of large individual sales, so
that a dealer who is disposing of many pianos runs his debts into
big figures before the manufacturer realizes it.
Because some have set the pace others have followed in line,
and as a result unbusinesslike methods have been permitted to grow.
There is a disposition on the part of manufacturers to get to-
gether and handle trade problems in a common sense and business-
like manner. This has been particularly emphasized in some of
the recent instances where dealers owing very large sums have had
(Continued on page 6.)
THE MUSIC TRADE REVIEW
REGARDING THE DISTRIBUTION OF PROFITS.
(Continued from page 3.)
Of course these are extreme views, and most men believe in just labor compensation laws, but,
it is true, hasty legislation usually works out detrimentally in many ways not anticipated by its
projectors.
There is a desire, which is world-wide, to adjust conditions so that there will be more satisfac-
tory relations existing between capital and labor, but legislation rushed through without proper
consideration may work much injury many ways, such as hasty action on the part of well-disposed
employers sometimes brings about a condition infinitely worse than that which existed before.
It may be a good plan, now that we are having commissions of all kinds, to appoint a national
commission to work out some favorable plan, so that men whose hearts are warming up towards
humanitv might have reasonable suggestions made to them for action ^_—^
^_
*
along lines of economic soundness. Then they would be able to work
off their surplus of money and show their devotion to the cause of
humanity without going off at half-cock and upsetting things generally.
wvusvu
Less Business, but Safe Business
T UDGING from the price-baiting advertisements put forth in the
I great metropolitan dailies throughout the land, one would be
led to believe that regular prices in mercantile offerings had
ceased, and that practically all of the merchants in every line were
disposing of their products at rates varying anywhere from 25 per
cent, to 50 per cent. off.
It would seem to show that the American people have been
fed so long on bargains that they like that sort of food, and would
be satisfied with nothing else, but this price-slaughter advertising
really has succeeded in creating an unsatisfactory condition in most
trades.
Price-cutting in the exploitation of merchandise has been con-
tinued for such a long period that it seems that nothing else but an
abnormally great price slaughter attracts people, and we have gone
the limit.
Cut-rate advertising seems to be sort of a national disease.
They have it even in the talking machine trade, which is an im-
portant industry controlled practically by three houses. Along
these lines, the following was taken from the last issue of The
Talking Machine World:
"Every man in the talking machine trade has had the advantage
of nationally advertised products and has had a price protection
which has been of infinite value. A condition of price cutting and
business disturbances have thus been happily and wisely avoided.
And yet notwithstanding these unusual conditions of strength and
stability there are retailers who, by their public exploitation, are
doing things which would seem to us are not warranted by the con-
ditions which surround the talking machine industry.
"Take, for instance, a public exploitation in which talking ma-
chines are offered on terms which are not in accordance with sound
business methods, and which seem to us to be superfluous and un-
called for.
"According to the advertising announcements of a department
store, one dollar will place a $15 machine and $9 worth of records
in the homes of purchasers. Future payments can be made at the
rate of fifty cents.
"A. $5 payment will place a $100 machine and $10 worth of
records in the home of the user, and a $10 note puts a $200 ma-
chine and $10 worth of records in the same place, and that may be
given back if the machine is returned.
"Do not merchants who sell on such a basis strike a blow at
the stability of the business everywhere? Why pay cash, even if
you have it, when such terms are thrust at you?
"We should bear in mind, too, the fact that such offerings affect
the entire trade. They establish a standard of selling terms which
is liable to be put up to talking machine men in every city and every
hamlet throughout the land.
"What in the name of common sense, when there are not
enough goods to go around, is the use of offering a man a machine
worth $200 and $10 worth of records for a ten dollar note?
"The buyer can use the machine a month with the records and
then return it, and get his money back. The returned machine is
sold again as new. Is this right?
"What is the machine but a used product, and how much are the
records depreciated?
"Furthermore, does anyone believe for a moment that there are
not many people who would take advantage of such terms who do
not, at the time they order the machine, expect to keep it beyond a
very limited time?
"Again the advertisers deliberately turn a cash business from
their own establishments by such offerings.
"Why should a man pay cash for a talking machine when he
can get one for a few dollars per month? Why not run over a
period of a couple of years in his payments when it costs him no
more?
"Such advertising hurts in more ways than one, for it creates
a long time small payment credit business out of what otherwise
might prove a near cash transaction, and it tells the man who has
the cash that he need not pay it save in homeopathic doses over a
long period. Is that good business?
"What is the advantage of offering a hundred dollar machine
for $5 a month and a bunch of records included?
"Under those conditions the purchaser who desired to have a
talking machine in his home during the holidays could secure a good
machine and a few records before Christmas, and after a month's
use decide that he does not desire the machine, return it with the
records, and get his money back. Can you beat it? Not very
well—machine, records, music for a month at no cost."
Price cutting exists in all trades, but it would seem from some
of the advertising matter put forth by various piano houses that
instruments are offered at prices and terms far beyond the limit of
business reason.
Now, piano merchants could not make such terms unless they
were supported by manufacturers, and it has always been a con-
siderable source of wonder why a man who could not get credit
for a suit of clothes in his home town could, through some plausible
story, obtain credit from piano manufacturers to the extent of many
thousands.
The business itself is made up of large individual sales, so
that a dealer who is disposing of many pianos runs his debts into
big figures before the manufacturer realizes it.
Because some have set the pace others have followed in line,
and as a result unbusinesslike methods have been permitted to grow.
There is a disposition on the part of manufacturers to get to-
gether and handle trade problems in a common sense and business-
like manner. This has been particularly emphasized in some of
the recent instances where dealers owing very large sums have had
(Continued on page 6.)
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