Music Trade Review
Issue: 1918 Vol. 66 N. 15 - Page 3
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MUSIC TIRADE
VOL.
LXVI. No. 15
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Avc, New York.
April 13, 1918
Single Copies 10 Cents
$2.00 Per Year
Business According to Conditions
B
USINESS men of all classes in the United States have learned, as they did in England, that the
cheerful slogan "Business as usual" used so generally at the beginning of the war, is nothing more
than a slogan. They have come to a stern realization that under war conditions business cannot be
conducted "as usual." Few industries in the United States just now can be said to be on a pre-war
basis. The makers of war supplies are, of course, enjoying unprecedented activity—an activity that will last
until peace comes. Those engaged in manufacturing articles of peace find themselves handicapped in the matter
of supplies, labor and transportation to a degree that is bound to cut down production. The retailers—the
sellers of merchandise—can be lined up in the same way, with this difference, that in both cases there is a
shortage of goods, although the available supply favors the man who caters to military needs.
It is a waste of space here to review the conditions that have existed in the piano trade during the last
few months, for the shortage of goods has been real and so have the financial problems. These conditions are
extraordinary and cannot be met in the usual way. New methods and new policies must be adopted to meet
the situation, and the concern that hesitates is liable to find the delay a costly one.
.. ..
The big problem of the day is to maintain the financial stability of the industry—not that the trade as a
whole is on an unhealthy basis—but the attention given to financial matters in years past, a more or less casual
attention in many cases, is not going to prove satisfactory now. Cash, and assets that can be quickly con-
verted into cash, command respect nowadays. That means short time paper and paper that is non-renewable.
The demand for stable methods of financing between manufacturer and merchant has caused the spotlight
to be turned on the trade acceptance. In peace times the trade acceptance was advocated strongly by those
who appreciated its real value as the basis for sound business dealing, but it was regarded by business men—
those in the piano trade at least—as something desirable, but at the same time something that could be con-
sidered at leisure without demanding immediate action. Under existing conditions, however, the trade
acceptance has taken on a new importance. It has been grasped as the salvation of business, and a number of
piano manufacturers have joined the ranks of those who have adopted the trade acceptance in their business.
The dealers, of course, have had to watch their finances more closely. Many have been brought for the
first time to a realization of the fact that books full of open accounts with customers, backed by long-time
instalment paper, do not represent assets that are calculated to impress either the banker or the manufacturer
whose orders are in excess of his ability to produce. It has been a rude awakening in some cases, perhaps, but
if the retail credit system can be remodeled and placed on a safe, sane and conservative basis—on a basis
that can be really called liquid—then war has had at least one helpful influence. The retailer must also look
after his buying and be prepared to make terms with the manufacturer whereby he will be able to secure a
maximum supply of instruments when available. The more available cash he has, the better will he be able to
command the attention and consideration of those upon whom he depends for his stock in trade.
The main thing to remember, however, is that no fixed rule can be offered or adopted for conducting a
piano business or any other business at this time. Each manufacturer and merchant must work out his own
salvation, though by co-operating with his fellows in the trade the problem can be solved more easily.
The first thing is to realize that the "Business as usual" idea is a fallacy and that constant watchfulness
is the only sure means for surviving any untoward situation that may develop. To rely on old, easy going
methods is to court disaster. Clean house and clean it now. Facing the music may prove somewhat expensive
at the outset, but if by such an expenditure a piano house is enabled to weather the storm of war and come
through staunch and prepared to develop when peace comes,, the temporary sacrifice will be well worth while.
Eet us substitute for "Business as usual" the more sensible slogan, "Business according to conditions.''
THE
MUSIC TIRADE
VOL.
LXVI. No. 15
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Avc, New York.
April 13, 1918
Single Copies 10 Cents
$2.00 Per Year
Business According to Conditions
B
USINESS men of all classes in the United States have learned, as they did in England, that the
cheerful slogan "Business as usual" used so generally at the beginning of the war, is nothing more
than a slogan. They have come to a stern realization that under war conditions business cannot be
conducted "as usual." Few industries in the United States just now can be said to be on a pre-war
basis. The makers of war supplies are, of course, enjoying unprecedented activity—an activity that will last
until peace comes. Those engaged in manufacturing articles of peace find themselves handicapped in the matter
of supplies, labor and transportation to a degree that is bound to cut down production. The retailers—the
sellers of merchandise—can be lined up in the same way, with this difference, that in both cases there is a
shortage of goods, although the available supply favors the man who caters to military needs.
It is a waste of space here to review the conditions that have existed in the piano trade during the last
few months, for the shortage of goods has been real and so have the financial problems. These conditions are
extraordinary and cannot be met in the usual way. New methods and new policies must be adopted to meet
the situation, and the concern that hesitates is liable to find the delay a costly one.
.. ..
The big problem of the day is to maintain the financial stability of the industry—not that the trade as a
whole is on an unhealthy basis—but the attention given to financial matters in years past, a more or less casual
attention in many cases, is not going to prove satisfactory now. Cash, and assets that can be quickly con-
verted into cash, command respect nowadays. That means short time paper and paper that is non-renewable.
The demand for stable methods of financing between manufacturer and merchant has caused the spotlight
to be turned on the trade acceptance. In peace times the trade acceptance was advocated strongly by those
who appreciated its real value as the basis for sound business dealing, but it was regarded by business men—
those in the piano trade at least—as something desirable, but at the same time something that could be con-
sidered at leisure without demanding immediate action. Under existing conditions, however, the trade
acceptance has taken on a new importance. It has been grasped as the salvation of business, and a number of
piano manufacturers have joined the ranks of those who have adopted the trade acceptance in their business.
The dealers, of course, have had to watch their finances more closely. Many have been brought for the
first time to a realization of the fact that books full of open accounts with customers, backed by long-time
instalment paper, do not represent assets that are calculated to impress either the banker or the manufacturer
whose orders are in excess of his ability to produce. It has been a rude awakening in some cases, perhaps, but
if the retail credit system can be remodeled and placed on a safe, sane and conservative basis—on a basis
that can be really called liquid—then war has had at least one helpful influence. The retailer must also look
after his buying and be prepared to make terms with the manufacturer whereby he will be able to secure a
maximum supply of instruments when available. The more available cash he has, the better will he be able to
command the attention and consideration of those upon whom he depends for his stock in trade.
The main thing to remember, however, is that no fixed rule can be offered or adopted for conducting a
piano business or any other business at this time. Each manufacturer and merchant must work out his own
salvation, though by co-operating with his fellows in the trade the problem can be solved more easily.
The first thing is to realize that the "Business as usual" idea is a fallacy and that constant watchfulness
is the only sure means for surviving any untoward situation that may develop. To rely on old, easy going
methods is to court disaster. Clean house and clean it now. Facing the music may prove somewhat expensive
at the outset, but if by such an expenditure a piano house is enabled to weather the storm of war and come
through staunch and prepared to develop when peace comes,, the temporary sacrifice will be well worth while.
Eet us substitute for "Business as usual" the more sensible slogan, "Business according to conditions.''
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