Music Trade Review
Issue: 1917 Vol. 64 N. 6 - Page 7
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE MUSIC TRADE REVIEW
WHY NOT SELL ONJIIGHER TERMS NOW?
By HOWARD PEMBERTON, Advertising Manager, Ludwig & Co., New York
When is the piano dealer going to get good
terms if he doesn't get them now? The country
is overflowing with money, every man is em-
ployed who will work—and at good wages. And
yet the $5 down sales go merrily on.
There is many a $5 down payment that could
have been made $50 if the salesman had only
asked for it. People" can't buy Fords on a $5
down payment—but they are buying Fords.
They cheerfully pay cash for $15, $25, $50, $75
and even $100 Victrolas. Then it certainly can-
not be necessary to s_eH them a $275 piano or
a $395 player-piano on a $5 first payment. But
some houses are doing it.
The $5 down, $5 a month dealers .can hardly
realize how long it takes to collect on even a
$225 piano at the $5 rate. The figures would
indicate forty-five months, but in this case, the
figures lie—lie like blazes. The time would be
forty-five months or nearly four years if the
buyer met each payment when due. But it's a
pretty safe bet that six years will be required
to close that contract.
The Man Who Invented Interest
It is well known to all with experience in re-
tail selling that there are very few piano buyers
who do not fall behind in their payments. Espe-
cially is this the case where no interest is
charged. There is no penalty attached to fall-
ing behind.
Speaking of interest brings to mind an inci-
dent. A certain prominent Eastern retail piano
man had long and loudly proclaimed that no
one had to pay interest at his store. "No
interest, no extras"—you all know the dope.
And the dealer's advertising agent naturally
played the no interest idea up strong in all the
dealer's copy.
One day the dealer saw the light—he sent
for the agent and told him a story as follows:
"At a certain banquet, each speaker had in turn
extolled the virtues of some great man. One
had praised Napoleon, another Shakespeare, still
another enthused over Washington, and so on
until it came the turn of the last speaker to
eulogize someone. He arose and said: 'Gen-
tlemen, I agree with all that has been said
by the preceding speakers about the distin-
guished persons praised by them, but so far as
I am concerned I wish to say that the guy who
invented interest was no slob.' "
Charging interest on leases will pay the over-
head of the average business. But many deal-
ers are convinced that "it can't be done." But
it is being done by some of the most success-
ful houses in the trade. There is one concern,
for instance, whose total interest charges run
into five figures each year. And there is an
ironclad rule for salesmen in that house—"don't
ask the manager to remit interest on any
lease."
What "No Interest" Means
Getting interest is a question of salesman-
ship; as much so as selling the buyer a good
piano, when in competition with a lot of cheap
makes. A piano buyer cannot borrow $300 for
two and one-half to five years from a bank with-
out paying interest; reasonable people will ap-
preciate this fact if it is properly explained to
them. The buyer or the dealer must pay the
interest, and if the dealer pays it his profits are
reduced to the vanishing point.
The buyer who pays interest is more apt to
keep up his payments, for as he falls behind
his interest charges increase—his piano costs
more. There is an incentive for him to pay—a
penalty if he does not pay.
Charging interest encourages larger first pay-
ments—the more the buyer pays down the
smaller is the amount of the deferred payments,
which reduces the amount of interest. For the
same reason the monthly payments are likely
to be larger. Interest makes the buyer anxious
to have his piano paid for—to save the interest
charges.
These arguments will perhaps seem elemental
—everybody with piano selling experience knows
all about them. But do we take advantage of
our experience in these matters—have we the
courage to demand interest and the salesman-
ship to get it?
Concentrate on Larger Down Payments
If every member of the selling force from the
sales manager down will determine that he is
going to get every possible dollar that the buyer
can afford to pay—as a first payment—the in-
creased amount of cash that will come in will
be surprising.
A salesman in a New York piano store in-
troduced a buyer to the manager—after closing
a sale for a player, on a first payment of $25.
The manager thought he would try to boost
that first payment, so he asked the buyer,
"Could you afford to pay $50 down?"
The buyer answered promptly in the affirma-
tive.
It came so easy that the manager
thought he would try another boost, so he in-
quired, "Could you afford to pay $100 down?"
Yes, the buyer could and did. Here was a first
payment raised from $25 to $100 just by exercis-
ing a little nerve.
Everybody knows—but often forgets—that a
good sized first payment lessens the chances of
repossession. A substantial equity in a piano
or player gives a sense of ownership that makes
the buyer hate to let go without making every
effort to pay. But it takes a good many $5 pay-
ments added to a $5 first payment to make the
buyer care whether he loses the instrument or
not; $5 a month is only rent anyway.
It should not be necessary to sell terms in
these plentiful times. If we don't get a good
down payment in these fat years, what are we
going to do when the lean ones come—as they
always do? A good salesman will regard the
cash end of the sale as of quite as much im-
portance as the sale itself.
A salesman who keeps himself keyed up to a
high first payment and high monthly payment
pitch, is going to beat out his fellow salesmen
by miles, both on payments and on cash sales—
people can be talked into paying all cash, too.
And the salesman who is always trying to get
big payments will turn up many an unexpected
cash sale.
Big First Payments Indicate Quality Buyer
There is many a person who buys a piano or
player-piano on very low first payment and
terms, who has no right to have a piano at all.
Ii is a question whether a person who cannot
pay at least $25 cash should be permitted to
assume an indebtedness of several hundred dol-
lars.
On the other hand, the buyer who makes a
good stiff first payment is the kind who realizes
his responsibility and intends to make good.
He wants a piano and will pay for it—more-
over, the sooner he gets it paid for, the better
it will suit him. There are some piano dealers
who confine their efforts to trade of this char-
acter, and they are the dealers whose profits
are represented in real money—not paper. It
is conceded that every dealer finds it advisable
to sell on lower terms occasionally to persons
whose reliability is unquestioned, but to make a
regular thing of low terms surely spells dis-
aster.
At the present time the papers are full of
bonuses being given to employes in all parts
of the country. In addition to this, wages are
good, and every man who wants a job can
have it. There never was so much money in
the country. Let us demand our share of all
this cash. Let us quit selling terms and sell
pianos and player-pianos, and let us not be
afraid to ask for cash—good down. payments
and monthly payments.
H. S. LEETE RETURNS FROM TRIP
BIG DEMAND FOR PIANO SALESMAN
Reports Prosperity in the South, and Great
Demand for Lester Line
Shortage of Suitable Material Evident When
Plans Are Made to Increase Sales Staffs
PHILADELPHIA, PA., February 5.—H. S. Leete, of
the Lester Piano Co., returned to this city Sat-
urday after having spent several weeks covering
the Southern trade. He started on the Eastern
Coast and worked his way well into Texas. In
speaking of the trip Mr. Leete said: "I find the
people of the South- feeling the good results of
the cotton prosperity. The music business was
not only good, but is good." Mr. Leete neatly
phrased the heavy demand which he found for
Lester instruments, by saying: "Either the Les-
ter Co. has got to make a lot more of pianos
or else they've got to quit making them alto-
gether. And it's just the same with uprights,
grands, and players."
From general indications there is no reason
for a man to be out of a job in New York if he
can sell pianos, and is willing to work hard at
it The Review is in touch with one manager
alone who is not only willing but anxious to
add from twenty-five to thirty men to his out-
side force. This particular manager has a new
system of remuneration under which the sales-
man's income is limited only by the amount of
business he can do above a fixed minimum. The
Review will be glad to put salesmen in touch
with this opportunity upon request. There are
also openings for salesmen with a number of
other houses.
NINTH STORE FOR ORTON BROS.
NEW STORE FOR JENKINS CO.
HELENA, MONT., February 5.—Orton Bros., promi-
DOUGLAS, ARIZ., February 5.—The Jenkins nent music dealers of this state, recently opened
Piano Co. is preparing to move into the new their ninth branch store in this city at 12 South
Scheerer Building, which is rapidly nearing com- Main street. The new store is in charge of R.
pletion. Better accommodations will be af- E. Russell, formerly of Missoula, who has had
forded the concern for the display of musical a number of years experience in the piano busi-
instruments and a much larger stock of pianos ness. The firm of Orton Bros, is the oldest es-
and players than hitherto. The new store will tablished exclusive music house in Montana,
be under the management of John P. Hardman. the business having been started in 1887.
F. G. Morehouse, formerly of Crawfords-
ville, Ind., where he was in charge of the Starr
PEORIA, I I I . , February 5.—Gilbert Coutant, of 308 branch, is now in charge of the Evansville,
Second avenue, an organ builder, died last week. Ind., branch of the same concern, located at
He was fifty-nine years of age.
208 Main street.
GILBERT COUTATW PASSES AWAY
WINTER & CO.
220 SOUTHERN BOULEVARD, NEW YORK
Manufacturers of
Superior Pianos
and Player Pianos
THE MUSIC TRADE REVIEW
WHY NOT SELL ONJIIGHER TERMS NOW?
By HOWARD PEMBERTON, Advertising Manager, Ludwig & Co., New York
When is the piano dealer going to get good
terms if he doesn't get them now? The country
is overflowing with money, every man is em-
ployed who will work—and at good wages. And
yet the $5 down sales go merrily on.
There is many a $5 down payment that could
have been made $50 if the salesman had only
asked for it. People" can't buy Fords on a $5
down payment—but they are buying Fords.
They cheerfully pay cash for $15, $25, $50, $75
and even $100 Victrolas. Then it certainly can-
not be necessary to s_eH them a $275 piano or
a $395 player-piano on a $5 first payment. But
some houses are doing it.
The $5 down, $5 a month dealers .can hardly
realize how long it takes to collect on even a
$225 piano at the $5 rate. The figures would
indicate forty-five months, but in this case, the
figures lie—lie like blazes. The time would be
forty-five months or nearly four years if the
buyer met each payment when due. But it's a
pretty safe bet that six years will be required
to close that contract.
The Man Who Invented Interest
It is well known to all with experience in re-
tail selling that there are very few piano buyers
who do not fall behind in their payments. Espe-
cially is this the case where no interest is
charged. There is no penalty attached to fall-
ing behind.
Speaking of interest brings to mind an inci-
dent. A certain prominent Eastern retail piano
man had long and loudly proclaimed that no
one had to pay interest at his store. "No
interest, no extras"—you all know the dope.
And the dealer's advertising agent naturally
played the no interest idea up strong in all the
dealer's copy.
One day the dealer saw the light—he sent
for the agent and told him a story as follows:
"At a certain banquet, each speaker had in turn
extolled the virtues of some great man. One
had praised Napoleon, another Shakespeare, still
another enthused over Washington, and so on
until it came the turn of the last speaker to
eulogize someone. He arose and said: 'Gen-
tlemen, I agree with all that has been said
by the preceding speakers about the distin-
guished persons praised by them, but so far as
I am concerned I wish to say that the guy who
invented interest was no slob.' "
Charging interest on leases will pay the over-
head of the average business. But many deal-
ers are convinced that "it can't be done." But
it is being done by some of the most success-
ful houses in the trade. There is one concern,
for instance, whose total interest charges run
into five figures each year. And there is an
ironclad rule for salesmen in that house—"don't
ask the manager to remit interest on any
lease."
What "No Interest" Means
Getting interest is a question of salesman-
ship; as much so as selling the buyer a good
piano, when in competition with a lot of cheap
makes. A piano buyer cannot borrow $300 for
two and one-half to five years from a bank with-
out paying interest; reasonable people will ap-
preciate this fact if it is properly explained to
them. The buyer or the dealer must pay the
interest, and if the dealer pays it his profits are
reduced to the vanishing point.
The buyer who pays interest is more apt to
keep up his payments, for as he falls behind
his interest charges increase—his piano costs
more. There is an incentive for him to pay—a
penalty if he does not pay.
Charging interest encourages larger first pay-
ments—the more the buyer pays down the
smaller is the amount of the deferred payments,
which reduces the amount of interest. For the
same reason the monthly payments are likely
to be larger. Interest makes the buyer anxious
to have his piano paid for—to save the interest
charges.
These arguments will perhaps seem elemental
—everybody with piano selling experience knows
all about them. But do we take advantage of
our experience in these matters—have we the
courage to demand interest and the salesman-
ship to get it?
Concentrate on Larger Down Payments
If every member of the selling force from the
sales manager down will determine that he is
going to get every possible dollar that the buyer
can afford to pay—as a first payment—the in-
creased amount of cash that will come in will
be surprising.
A salesman in a New York piano store in-
troduced a buyer to the manager—after closing
a sale for a player, on a first payment of $25.
The manager thought he would try to boost
that first payment, so he asked the buyer,
"Could you afford to pay $50 down?"
The buyer answered promptly in the affirma-
tive.
It came so easy that the manager
thought he would try another boost, so he in-
quired, "Could you afford to pay $100 down?"
Yes, the buyer could and did. Here was a first
payment raised from $25 to $100 just by exercis-
ing a little nerve.
Everybody knows—but often forgets—that a
good sized first payment lessens the chances of
repossession. A substantial equity in a piano
or player gives a sense of ownership that makes
the buyer hate to let go without making every
effort to pay. But it takes a good many $5 pay-
ments added to a $5 first payment to make the
buyer care whether he loses the instrument or
not; $5 a month is only rent anyway.
It should not be necessary to sell terms in
these plentiful times. If we don't get a good
down payment in these fat years, what are we
going to do when the lean ones come—as they
always do? A good salesman will regard the
cash end of the sale as of quite as much im-
portance as the sale itself.
A salesman who keeps himself keyed up to a
high first payment and high monthly payment
pitch, is going to beat out his fellow salesmen
by miles, both on payments and on cash sales—
people can be talked into paying all cash, too.
And the salesman who is always trying to get
big payments will turn up many an unexpected
cash sale.
Big First Payments Indicate Quality Buyer
There is many a person who buys a piano or
player-piano on very low first payment and
terms, who has no right to have a piano at all.
Ii is a question whether a person who cannot
pay at least $25 cash should be permitted to
assume an indebtedness of several hundred dol-
lars.
On the other hand, the buyer who makes a
good stiff first payment is the kind who realizes
his responsibility and intends to make good.
He wants a piano and will pay for it—more-
over, the sooner he gets it paid for, the better
it will suit him. There are some piano dealers
who confine their efforts to trade of this char-
acter, and they are the dealers whose profits
are represented in real money—not paper. It
is conceded that every dealer finds it advisable
to sell on lower terms occasionally to persons
whose reliability is unquestioned, but to make a
regular thing of low terms surely spells dis-
aster.
At the present time the papers are full of
bonuses being given to employes in all parts
of the country. In addition to this, wages are
good, and every man who wants a job can
have it. There never was so much money in
the country. Let us demand our share of all
this cash. Let us quit selling terms and sell
pianos and player-pianos, and let us not be
afraid to ask for cash—good down. payments
and monthly payments.
H. S. LEETE RETURNS FROM TRIP
BIG DEMAND FOR PIANO SALESMAN
Reports Prosperity in the South, and Great
Demand for Lester Line
Shortage of Suitable Material Evident When
Plans Are Made to Increase Sales Staffs
PHILADELPHIA, PA., February 5.—H. S. Leete, of
the Lester Piano Co., returned to this city Sat-
urday after having spent several weeks covering
the Southern trade. He started on the Eastern
Coast and worked his way well into Texas. In
speaking of the trip Mr. Leete said: "I find the
people of the South- feeling the good results of
the cotton prosperity. The music business was
not only good, but is good." Mr. Leete neatly
phrased the heavy demand which he found for
Lester instruments, by saying: "Either the Les-
ter Co. has got to make a lot more of pianos
or else they've got to quit making them alto-
gether. And it's just the same with uprights,
grands, and players."
From general indications there is no reason
for a man to be out of a job in New York if he
can sell pianos, and is willing to work hard at
it The Review is in touch with one manager
alone who is not only willing but anxious to
add from twenty-five to thirty men to his out-
side force. This particular manager has a new
system of remuneration under which the sales-
man's income is limited only by the amount of
business he can do above a fixed minimum. The
Review will be glad to put salesmen in touch
with this opportunity upon request. There are
also openings for salesmen with a number of
other houses.
NINTH STORE FOR ORTON BROS.
NEW STORE FOR JENKINS CO.
HELENA, MONT., February 5.—Orton Bros., promi-
DOUGLAS, ARIZ., February 5.—The Jenkins nent music dealers of this state, recently opened
Piano Co. is preparing to move into the new their ninth branch store in this city at 12 South
Scheerer Building, which is rapidly nearing com- Main street. The new store is in charge of R.
pletion. Better accommodations will be af- E. Russell, formerly of Missoula, who has had
forded the concern for the display of musical a number of years experience in the piano busi-
instruments and a much larger stock of pianos ness. The firm of Orton Bros, is the oldest es-
and players than hitherto. The new store will tablished exclusive music house in Montana,
be under the management of John P. Hardman. the business having been started in 1887.
F. G. Morehouse, formerly of Crawfords-
ville, Ind., where he was in charge of the Starr
PEORIA, I I I . , February 5.—Gilbert Coutant, of 308 branch, is now in charge of the Evansville,
Second avenue, an organ builder, died last week. Ind., branch of the same concern, located at
He was fifty-nine years of age.
208 Main street.
GILBERT COUTATW PASSES AWAY
WINTER & CO.
220 SOUTHERN BOULEVARD, NEW YORK
Manufacturers of
Superior Pianos
and Player Pianos
Future scanning projects are planned by the International Arcade Museum Library (IAML).