Music Trade Review
Issue: 1920 Vol. 71 N. 3 - Page 3
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
THE
MU JIC TIRADE
VOL. LXXI. No. 3
I
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York.
July 17, 1920
8lngl e
o
f 2 .S> per
Year Cent "
.N discussing" the problems of reconstruction and of resuming normal business methods, Horace Greeley is
credited with having declared that the way to resume is to resume, in other words, action, rather than
discussion, is what is needed. In these days when certain elements among music dealers seem to be
inclined to stand pat, or rather to hold back, waiting for a change in prices and manufacturing conditions
whereby they may benefit, there is much talk as to the advisability, or rather necessity, of going ahead and
planning for the future.
In this connection it might be well to paraphrase a bit and to say that the way to keep going is to keep
going. Dealers who are inclined to hold off buying until Fall demands make immediate buying necessary, in
the hope that there will be some radical reduction in piano prices, or that they may be offered the advantage of
longer terms, are laboring under a delusion. It is more than probable that there will, some time in the future,
be a reduction in piano manufacturing costs, just as there will be a readjustment of general manufacturing and
living conditions, but that change is not going to come this year. As a matter of fact, there is a tendency towards
increasing present prices. Those who order pianos within the next month or so are very likely to be forced to
pay a higher price than were they ordered this month or last, not because the manufacturer will demand a
higher price, but because there is going to be a substantial increase in freight rates. A 25 per cent jump in
freight rates means a very appreciable increase in the cost of the piano when placed in the dealer's store.
There is no sense in the dealer turning all his financial resources and becoming overloaded with stock
in anticipation of a rising market, but he is only following the course of wisdom in protecting himself in the
matter of stock so that he will have it on hand regardless of what may develop. There is a certain volume of
trade that the average retailer can rely upon. He knows that, bar the unexpected, he should do a certain mini-
mum volume of business between September 1 and January 1, and he has the experience of previous years on
which to base his calculations. To offset his business plans, to wait until the last minute before ordering
and then ordering only from hand to mouth, is placing him in a position where he is going to suffer severely
by any sudden tie-up of freight transportation or any sudden drop in factory production.
.The average music dealer has made substantial investments in his business and expects to be in the
trade next year, the year after, and for years to come. The fact that he has prospered up to the present time
proves that he has been able to look ahead to a certain degree and build for the future. If at the first sign
of a lull since the war he is content to rest on his oars, and let his business lie dormant until there is some change
one way or the other in conditions, he is placing himself in a distinctly dangerous position.
There have been some reports of the cancelling of orders by dealers, especially for medium grade lines
of instruments. Some of these cancellations may be on surplus orders placed'by the dealer in an effort to
insure his obtaining a fair stock even though only a portion of the orders are filled. Many of the cancella-
tions, however, unquestionably indicate that some retailers are in a state of uncertainty and rather than en
deavor, by a little extra effort, to keep things running normally, are inclined to slow down their business and be
over-conservative.
If manufacturing and transportation conditions were approximately normal, the retailer might be
reasonably safe in taking a chance in the ordering and securing of his future stocks of instruments, but man
ufacturing and transportation conditions are distinctly uncertain. They have changed, and may be expected to
change over night and in many instances for the worst. With a fair stock on his floor, or in his warehouse, the
dealer may have a few financial worries to face, but he will not have to be bothered about the problem of get-
ting goods, and his freedom in this connection may mean much to him if the Pall brings the volume of business
that is to be expected even under normal.conditions.
THE
MU JIC TIRADE
VOL. LXXI. No. 3
I
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York.
July 17, 1920
8lngl e
o
f 2 .S> per
Year Cent "
.N discussing" the problems of reconstruction and of resuming normal business methods, Horace Greeley is
credited with having declared that the way to resume is to resume, in other words, action, rather than
discussion, is what is needed. In these days when certain elements among music dealers seem to be
inclined to stand pat, or rather to hold back, waiting for a change in prices and manufacturing conditions
whereby they may benefit, there is much talk as to the advisability, or rather necessity, of going ahead and
planning for the future.
In this connection it might be well to paraphrase a bit and to say that the way to keep going is to keep
going. Dealers who are inclined to hold off buying until Fall demands make immediate buying necessary, in
the hope that there will be some radical reduction in piano prices, or that they may be offered the advantage of
longer terms, are laboring under a delusion. It is more than probable that there will, some time in the future,
be a reduction in piano manufacturing costs, just as there will be a readjustment of general manufacturing and
living conditions, but that change is not going to come this year. As a matter of fact, there is a tendency towards
increasing present prices. Those who order pianos within the next month or so are very likely to be forced to
pay a higher price than were they ordered this month or last, not because the manufacturer will demand a
higher price, but because there is going to be a substantial increase in freight rates. A 25 per cent jump in
freight rates means a very appreciable increase in the cost of the piano when placed in the dealer's store.
There is no sense in the dealer turning all his financial resources and becoming overloaded with stock
in anticipation of a rising market, but he is only following the course of wisdom in protecting himself in the
matter of stock so that he will have it on hand regardless of what may develop. There is a certain volume of
trade that the average retailer can rely upon. He knows that, bar the unexpected, he should do a certain mini-
mum volume of business between September 1 and January 1, and he has the experience of previous years on
which to base his calculations. To offset his business plans, to wait until the last minute before ordering
and then ordering only from hand to mouth, is placing him in a position where he is going to suffer severely
by any sudden tie-up of freight transportation or any sudden drop in factory production.
.The average music dealer has made substantial investments in his business and expects to be in the
trade next year, the year after, and for years to come. The fact that he has prospered up to the present time
proves that he has been able to look ahead to a certain degree and build for the future. If at the first sign
of a lull since the war he is content to rest on his oars, and let his business lie dormant until there is some change
one way or the other in conditions, he is placing himself in a distinctly dangerous position.
There have been some reports of the cancelling of orders by dealers, especially for medium grade lines
of instruments. Some of these cancellations may be on surplus orders placed'by the dealer in an effort to
insure his obtaining a fair stock even though only a portion of the orders are filled. Many of the cancella-
tions, however, unquestionably indicate that some retailers are in a state of uncertainty and rather than en
deavor, by a little extra effort, to keep things running normally, are inclined to slow down their business and be
over-conservative.
If manufacturing and transportation conditions were approximately normal, the retailer might be
reasonably safe in taking a chance in the ordering and securing of his future stocks of instruments, but man
ufacturing and transportation conditions are distinctly uncertain. They have changed, and may be expected to
change over night and in many instances for the worst. With a fair stock on his floor, or in his warehouse, the
dealer may have a few financial worries to face, but he will not have to be bothered about the problem of get-
ting goods, and his freedom in this connection may mean much to him if the Pall brings the volume of business
that is to be expected even under normal.conditions.
Future scanning projects are planned by the International Arcade Museum Library (IAML).