Music Trade Review

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APRIL 13, 1918
THE MUSIC TRADE REVIEW
9
Conducting a Retail Piano
Business in War Time
The Second Instalment of Opinions From Prominent Piano Retailers Throughout the Country Concerning
Proper Methods to Be Employed in Conducting a Retail Piano Business During War Time,
Which Will Prove of Real Interest and Benefit to Piano Dealers Everywhere
The first instalment of interviews with piano merchants on wartime) business methods, which appeared in The Review last
week, has created wide comment, inasmuch as the message came from all sections of the country, and the opinions were based on
conditions as they actually existed in those sections, i,
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While no one piano merchant, no matter how progressive or successful, can have the full vision of a prophet, yet the experience
of each one in less serious crises enables him to suggest means for placing the piano business as a whole on a basis that will render
it less liable to sudden shock. In other words/'to use military parlance, the piano merchant can, from experience/judge how best
to consolidate his position in order to withstand an offensive. Having taken full protective measures, he can await the future
with more than ordinary confidence.
In this second instalment of opinions, as was the case in the first, the point that stands out in the forefront is the advice to
order as early and as liberally as possible, shorten terms and watch retail credits generally, keep on advertising even more liberally
than usual, and put the business house in order.
P. E. Conroy Advises Early and Liberal Orders
ST. LOUIS, MO., April 8.—P. E. Conroy, presi-
dent of the Conroy Piano Co., and chairman of
the Better Business Bureau of the National As-
sociation of Piano Merchants, declares that for
their own protection piano merchants must not
only order as early and as liberally as possible,
but must be prepared to pay increased prices
for instruments. In discussing the situation Mr.
Conroy said:
"First, on account of so many embargoes and
delays in transportation, I believe it a good
idea for all merchants, when placing orders with
for food, raiment and shelter, regardless of the
price, in order to live, but they can get along
very nicely without pianos.
"During these times, I believe dealers should
be very careful of their credits, and not try to
see how much business they can do, while on
the other hand they should not get inoculated
with the 'war scare,' and see how little business
they can do in order to pay expenses.
"The war I am afraid is going to make it
hard for the consignment dealer, and the one
who buys his goods on long time. It stands
to reason that the manufacturers when they
are oversold will select only cash houses, or
houses who take very little time in settling their
accounts, 'trade acceptance* will make piano
paper a little better, as it needs to be bolstered
up very badly.
"The trading in of old pianos to apply to-
ward the purchase of new instruments has
helped to ruin many piano dealers, which is
caused by making too big an allowance for them
and then being unable to dispose of them at any
kind of a reasonable price. The player-piano
has taken the place of the upright instrument,
and the demand for uprights has decreased ac-
cordingly, which makes it all the harder to sell
second-hand pianos. Dealers should be very
careful and not sell men of draft age, because
the recent ruling of the Government makes
them a rather precarious risk, should they be
disposed at any time during the war to discon-
tinue paying, provided they enter the service.
"On account of the advance on all instruments
it behooves every dealer to insist on getting
better payments and shorten the time as much
as possible, because manufacturers will prob-
ably curtail their credits arso.
"Every dealer should jojn the National Asso-
ciation of Piano Merchants of America and the
Music Industries Chamber of Commerce. The
dues in both of these associations is so small
that I do not understand "why any one who is
connected with the music trade industry is not
a member of both associations. The work ac-
complished by our associations at Washington
has saved every piano merchant hundreds of
dollars and has saved the large dealers several
thousands.
"It is about time that the entire music trade
awoke to the fact that now is the time to make
the United States a great world center of music.
This war will help to pauperize the countries
of Europe, and the United States with its wealth
will be in a position to control all the leading
musicians and teachers of the world. The Bu-
reau for the Advancement of Music in the Home,
which is under the auspices of the Music In-
dustries Chamber of Commerce, has done won-
derful work during the past year to advance
the cause of music in all directions, and has
strongly recommended a National Conservatory
of Music, supported by the Government, -which
would be a big step in making this country an
international musical center.
These are the
kind of movements which deserve the support
of every piano dealer, as by so doing they will
reap their reward by increased sales of pianos
in the future."
Hamilton Tells of the Need for Better Terms
P. E. Conroy
manufacturers with whom they do a volume of
business, to order their instruments in carload
lots, as in this way they are liable to receive
them much sooner, for if there is any delay in
the shipment it is much easier to trace through
a car than if goods were shipped otherwise.
By following this rule when possible, I have
found less delay-in getting goods, although all
railroads are very much congested at present.
"Owing to the scarcity of labor and material,
it is but natural that the cost of manufacturing
has greatly increased, and dealers must expect
to pay more for their instruments. I believe,
however, the manufacturer who makes the least
advance on his prices during the war will be
repaid in the future when the war is over and
things resume more of their normal state. It
is all very well for the manufacturer to tell
the merchant he must advance the prices on his
pianos, but sometimes the prices they should
get are almost prohibitive. People have to pay
E. Paul Hamilton, president of the New York
Piano Merchants' Association and manager of
the piano department of Loeser & Co., Brook-
lyn, where he has managed to keep war time busi-
ness pretty close to the figure registered dur-
ing normal conditions, has some interesting
views regarding what the piano merchant must
do to keep his" balance in the face of the ex-
isting situation.
"First of all," declares Mr.
Hamilton, "it seems to me that if it is necessary
for any dealer to extensively change his modus
operandi because of the fact that we are at war,
it is a proof that he has not been conducting
his business in a proper manner in time of peace.
What has actually happened for the past few
months is, that dealers who have been selling
pianos on unreasonably long terms, taking un-
necessarily low first payments, giving ridicu-
lously large allowances, have awakened to the
fact that they were not conducting their busi-
ness on a profitable basis.
"High cost of living-, high cost of help, extra
taxation has been responsible for some piano
dealers beginning to look over their figures, and
no doubt some of them have been startled be-
cause of the difference between their gross
profits and actual net profits and the trade,
therefore, has good reasons to believe to-day
that the war may eventually be responsible for
a saner and safer method of piano merchan-
dising throughout the country.
"To conduct a retail piano business on a
profitable basis at, all times, it seems to me that
it is necessary, first of all, to decide what per-
centage of gross profit is needed to cover all
selling expense and to leave a fair margin of
net profit. The next step is to determine the
correct percentage for the various items of the
expense necessary in selling pianos at retail,
and, as it is entirely a matter of percentage, I
fail to see why the fact that we are at war
should have any bearing on a piano dealer's
method of doing business. The method should
(Continued on page 11)