Music Trade Review

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54
THE MUSIC TRADE REVIEW
JANUARY 6, 1923
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PUBLISHERS PLAN PRICE INCREASE TO CHAIN STORES
Larger Publishing Organizations Planning to Place Syndicate Stores on an Equal Price Footing
With Legitimate Dealers—Publishers Who Have Made Concessions Are the Losers
Early in December the S. S. Kresge Co. de-
manded that publishers of popular songs place
their songs at the disposal of that company
at a price that would allow them to sell such
issues at twenty cents retail. This demand, it
was said, was made in order that the S. S.
Kresge stores could compete with the J. G.
McCrory syndicate, which for some months past
has retailed popular prints at that figure.
It is understood that some of the publishers
compromised by allowing the Kresge stores
additional discount in such cities where they
were in competition with stores operated by the
J. G. McCrory Co. On the other hand, some
houses refused to accede to the request and
continued to receive the full wholesale price on
popular prints.
Despite this effort on the part of popular
publishers to meet the requirements of antag-
onists who were after all indulging in a retail
price war, it seems that the concessions given
are not sufficient to appease the demands and
the S. S. Kresge Co. has expressed a desire to
have the reductions affect the purchases of their
stores in every city and not only in those which
feel the sales prices of competitors.
From indications there is evidence that the
publishers who have made the concessions now
feel that they have conceded not only as much
as the situation warrants, but have done so at
a very substantial loss to themselves in profits
on their publications, with little or no additional
volume of business resulting through the lower
prices to compensate.
From this it is generally understood that
several of the larger publishing organizations
will not only refuse to grant reductions to
affect other trade centers, but will shortly
announce an increase in wholesale prices.
Those who have these increases in mind do
not contemplate that they shall affect the
legitimate sheet music dealer who now invari-
ably pays eighteen cents per copy on popular
publications with the exception of initial order
purchases of new issues. The raise in price
will affect the syndicate stores and will, un-
doubtedly, increase the wholesale price of popu-
lar prints to the figure now paid by the legiti-
mate dealer.
According to some expressions heard in pub-
lishing circles there will be little or no effort
made to induce the S. S. Kresge stores or any
other syndicate to continue handling popular
music. These publishers, seemingly, feel that
their efforts to assist the syndicates in their,
price battles have, from every angle, been a dis-
tinct failure. Most of the publishers are no
doubt sorry that they gave any consideration
to the original plea of the S. S. Kresge Co.
With the closing of the publishers' books at
the end of the year it has been found that in
only a few instances have there been any large
profits made. Some others may have ended
the year without loss and there have been pub-
lishers who have suffered distinct losses. Bear-
ing this in mind it is contended that it would
not only be foolhardy to give any encourage-
ment to price reductions, but for the health of
several of the organizations there should be
increases.
The history of the December reductions to
certain syndicates is similar to the experiences
the popular publishes had with the F. W.
Woolworth stores when that organization oper-
ated some 600 sheet music departments and
assumed a dictatorial attitude in its dealings
with numerous sales organizations. In other
words, a concession made on demand from the
syndicates only invites further demands.
That those publishers who have decided to
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refuse further concessions and who probably
will increase prices to syndicates are serious
is hardly to be doubted. It is said that they
shall not only increase prices to the syndicates,
making them compare with those now paid by
legitimate dealers, but that in territory where
syndicates operate and representation is not
.sufficient to do justification to the prints they
will open up stores for the purpose of exploiting
their songs.
There is no agreement on this latter proposal,
but one or two publishing organizations al-
ready operate branch stores and departments
and there is at least one other large organiza-
tion that is giving consideration to the matter
along the lines outlined above.
One of the largest publishing houses in the
country has not and will not give any consider-
ation to requests for price reductions, nor to
any plans for operating retail stores. In fact,
it has gone on record against any price reduc-
tions at this time and against operating, as far
as they are concerned, sheet music departments
or stores at any time.
This is the situation as The Review goes to
press. All'of which will prove favorable to the
legitimate sheet music dealer. He will be in
a better position than ever to not only com-
pete with syndicate stores, but to uphold the
present prices, which are necessary for the
healthy and successful conduct of his business.
He gains added importance to the popular pub-
lishers and will, undoubtedly, profit.
FEATURED IN "THE BOOTLEGGERS"
The song "All Muddled Up," from the catalog
of Leo Feist, Inc., is the exclusive number in
the drama of "The Bootleggers," now playing
at the Thirty-ninth Street Theatre, New York
City. The show has been quite successful and
there are many indications that it will play for
the balance of the season. Therefore, the above
Feist number will come in for some unusual
publicity over a long period.
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