Music Trade Review
Issue: 1921 Vol. 72 N. 14 - Page 3
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
RMffl
THE
VOL. LXXII. No. 14
M
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York. April 2, 1921
Single Copies 10 Cents
$2.00 Per Tear
ANY speakers and writers on trade subjects are prone to make reference to the "pendulum" of busi-
ness, which, in accordance with the fixed laws of nature, swings back and forth—the backward
movement in every instance equaling the forward movement. If the simile were absolutely true
business would be, for decades, in a most uncertain condition, for a pendulum describes an amaz-
ing number of arcs, forward and backward, before finally coming to rest, while in business some period of
quietude is expected.
That the use of the pendulum as an illustration is rather far-fetched dpes not in any sense contradict
the fact that business always obeys natural laws, in-the sense that every action is followed by reaction. And
it is the reaction that most interests us in the music industry right now.
The past few years have seen wondrous changes in trade methods. The manufacturer who formerly
had his safe filled with long-time notes from dealers has enjoyed a thorough housecleaning and has found
his cash-box his chief asset. With more orders than there were pianos, the instruments naturally went to
those who paid cash, or who paid on terms closely approximating cash. Long-standing accounts were cleared
up, to the advantage not only of the manufacturer but of the dealer, and the consignment business, which in
more than one case proved detrimental to various trade interests, practically went by the board. All this was
in the nature of a positive reaction, with the trade swinging upward through prosperity.
Now comes the negative reaction, and it is to be hoped that instead of swinging back to old standards
an endeavor will be made to check the swing and keep business on the sound and better basis that came into
being during the past four years.
The long-time selling and consignment business unquestionably aided quite a few dealers in getting
into business and developing trade, but it has also caused other dealers, who did not rank as good business
men, to get tied up in a way that made their success impossible. Manufacturers, too, in many cases, reached
a point where outstanding accounts—open book or consignment—proved distinctly embarrassing in volume.
The story is told of a representative of one manufacturer who, in cleaning up consignment accounts,
found cases where instruments had been in the dealer's hands and on the manufacturer's books for many years.
In one particular case he found that a certain piano had been in possession of a dealer, on consignment, for nine
years, and that the interest alone had run up into a couple of hundred dollars. The representative finally
boxed the piano and shipped it back to the factory, and as he was leaving the house the dealer's wife re-
marked, "I am sorry to lose that piano. I used it for teaching for nine years, and it had a wonderful tone."
It would be interesting to learn just how many other consignment pianos were supplied for the free use of
teachers under similar conditions.
In order to stimulate business, manufacturers and their representatives are naturally inclined, in many
cases, to offer terms and conditions calculated to prove a little more favorable than those of competitors. In
an effort to keep their houses in order, however, it would seem the height of folly to make terms and condi-
tions of the sort that prevailed some few years ago, and thus throw away an opportunity such as comes once
in a generation or more, and it would be mighty hard for manufacturers—and dealers, for that matter—who
have been enjoying the sensation of working on a cash basis again to become used to handling long-time paper
instead.
The retailer who has been conducting his business properly during the past couple of years should not
be tied up with a lot of instalment paper of a kind to force him to seek long accommodations from manufac-
turers. If he has such paper he has taken it with open eyes and has only himself to blame for it, for trade
conditions, up to a few months ago, have not been of the sort to encourage long instalment terms.
RMffl
THE
VOL. LXXII. No. 14
M
Published Every Saturday by Edward Lyman Bill, Inc., at 373 4th Ave., New York. April 2, 1921
Single Copies 10 Cents
$2.00 Per Tear
ANY speakers and writers on trade subjects are prone to make reference to the "pendulum" of busi-
ness, which, in accordance with the fixed laws of nature, swings back and forth—the backward
movement in every instance equaling the forward movement. If the simile were absolutely true
business would be, for decades, in a most uncertain condition, for a pendulum describes an amaz-
ing number of arcs, forward and backward, before finally coming to rest, while in business some period of
quietude is expected.
That the use of the pendulum as an illustration is rather far-fetched dpes not in any sense contradict
the fact that business always obeys natural laws, in-the sense that every action is followed by reaction. And
it is the reaction that most interests us in the music industry right now.
The past few years have seen wondrous changes in trade methods. The manufacturer who formerly
had his safe filled with long-time notes from dealers has enjoyed a thorough housecleaning and has found
his cash-box his chief asset. With more orders than there were pianos, the instruments naturally went to
those who paid cash, or who paid on terms closely approximating cash. Long-standing accounts were cleared
up, to the advantage not only of the manufacturer but of the dealer, and the consignment business, which in
more than one case proved detrimental to various trade interests, practically went by the board. All this was
in the nature of a positive reaction, with the trade swinging upward through prosperity.
Now comes the negative reaction, and it is to be hoped that instead of swinging back to old standards
an endeavor will be made to check the swing and keep business on the sound and better basis that came into
being during the past four years.
The long-time selling and consignment business unquestionably aided quite a few dealers in getting
into business and developing trade, but it has also caused other dealers, who did not rank as good business
men, to get tied up in a way that made their success impossible. Manufacturers, too, in many cases, reached
a point where outstanding accounts—open book or consignment—proved distinctly embarrassing in volume.
The story is told of a representative of one manufacturer who, in cleaning up consignment accounts,
found cases where instruments had been in the dealer's hands and on the manufacturer's books for many years.
In one particular case he found that a certain piano had been in possession of a dealer, on consignment, for nine
years, and that the interest alone had run up into a couple of hundred dollars. The representative finally
boxed the piano and shipped it back to the factory, and as he was leaving the house the dealer's wife re-
marked, "I am sorry to lose that piano. I used it for teaching for nine years, and it had a wonderful tone."
It would be interesting to learn just how many other consignment pianos were supplied for the free use of
teachers under similar conditions.
In order to stimulate business, manufacturers and their representatives are naturally inclined, in many
cases, to offer terms and conditions calculated to prove a little more favorable than those of competitors. In
an effort to keep their houses in order, however, it would seem the height of folly to make terms and condi-
tions of the sort that prevailed some few years ago, and thus throw away an opportunity such as comes once
in a generation or more, and it would be mighty hard for manufacturers—and dealers, for that matter—who
have been enjoying the sensation of working on a cash basis again to become used to handling long-time paper
instead.
The retailer who has been conducting his business properly during the past couple of years should not
be tied up with a lot of instalment paper of a kind to force him to seek long accommodations from manufac-
turers. If he has such paper he has taken it with open eyes and has only himself to blame for it, for trade
conditions, up to a few months ago, have not been of the sort to encourage long instalment terms.
Future scanning projects are planned by the International Arcade Museum Library (IAML).