Music Trade Review
Issue: 1924 Vol. 79 N. 18 - Page 9
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
NOVEMBER 1, 1924
THE MUSIC TRADE REVIEW
9
Retail Dealers' Commission Problems
Calvin T. Purdy, Retail Manager of Hardman, Peck & Co., New York, Sums Up the Vexed Question of the
Retail Dealer's Relations With the Music Teacher in Sale of Pianos—Checking the Work of
the "Commission Hound" Without Losing Good Will and Ultimately Sales
N A period, such as the present, when the
retail piano industry is endeavoring to
register its progressiveness at every turn
with movements for cleaner advertising, cleaner
selling and a more efficient management of ac-
counts, it seems entirely fitting to consider an-
other important item, which cuts into the mer-
chant's profit: viz., the payment of unneces-
sary commissions. The evil of paying rebates
to piano teachers and professional musicians for
"introducing" to the piano dealer prospects who
would have doubtless found their way to his
store eventually probably began with the open-
ing of the first piano store, wherever it was.
The annual loss to the dealer under this custom
has been considerable.
To many of the large houses such a practice
is no longer an evil. They have seen fit to
organize themselves to meet the proposition
consistently and have stood their ground. Such
houses have recognized the fact that there is
such a thing as a just recompense for the per-
son who works for their establishment exclu-
sively, but they have closed their doors on the
nomadic lead-getter who shops everywhere with
the customer only to anchor where the sale,
which means his own commission, is the most
satisfactory.
It is obvious that the music teacher or musi-
cian who visits piano stores indiscriminately
with a prospect is performing no economic value
to the house by his presence or introduction.
He is a mere spectator of the transaction, and
can by no twist of logic make it clear that he
is entitled to any of the money which the quality
of the piano and the arguments of the floor
salesman have secured.
An extreme case was cited recently by Calvin
T. Purdy, manager of the Fifth avenue ware-
rooms of Hardman, Peck & Co., New York,
in which a piano teacher claimed her commis-
sion a week or two after the sale had been
made, without any previous communication.
The teacher had simply advised her pupil to
call at the Hardman establishment. The floor
salesman waiting on the customer had no diffi-
culty finding the exact piano to suit her and
the deal was made.
Mr. Purdy, meeting the music teacher in the
store some time after the piano had been deliv-
ered, explained that the young woman had made
no reference to being directed to the Hardman
store. He further stated that he had no record
of any agreement with the music teacher to indi-
cate that she was entitled to a commission. For
this reason, on behalf of a strict policy of the
Hardman house, he refused to allow any com-
mission on the sale.
The music teacher then began to get in a few
"licks" and advised the customer to return the
piano, as it was not, in her opinion, in a satis-
factory condition. A special repairman was sent
to the customer's home, which happened to be
an hour's ride from the store, and he consumed
half a day in determining that the piano was
in the same perfect condition it had been when
leaving the store and did not even need tuning.
The music teacher, who had doubtless counted
on a new hat with the commission she was so
sure of getting, was not of this opinion, and
within another month the customer was request-
ing a piano of different case design. The matter
was finally adjusted and no commission was
paid to the teacher, but not without much in-
convenience and expense.
"Hardman, Peck & Co. are by no means an-
tagonistic to music teachers who consistently
work for the Hardman piano and for it alone,"
said Mr. Purdy. "For years we have had satis-
I
factory relationships with many music teachers
in Greater New York who are influential in
bringing prospects into our store. These indi-
viduals generally have Hardman grands in their
studios and their admiration for our instruments
has a distinct influence on the pupil intending
to buy. When such influence paves the way to
a sale, it is only fair that the teacher be re-
warded."
This attitude represents the practice of most
of the large piano houses in the larger cities.
Frequently it is extended to grant a commission
to any employe of the establishment, whether
bookkeeper, stenographer or elevator operator,
when their personal friends are brought into the
store to buy and are sold. Department stores
with piano departments,'such as the John Wana-
maker Store in New York, have a working ar-
rangement with the entire personnel of the
establishment for such a service.
This practice is a commendable one, as is any
practice which widens the contact of a business
house. The house of John Wanamaker with its
3,000 employes has a connecting link, through
their families with practically every neighborhood
of the five boroughs of Greater New York and its
suburbs. If each employe were to bring in
one real piano prospect per year, one can imagine
the great benefit to be gained by the piano de-
partment. This is, of course, more than can
be expected, but there is no doubt that much
good business is obtained by this arrangement.
The house of Hardman, Peck & Co. goes still
further in the matter of allowing commissions
to employes for new business brought into the
store, extending the practice to include its re-
pair business. No direct commissions are paid
to the individual securing the repair work, but
a small percentage of the cost of the job is set
Court Refuses to Restrain
Prosecution of Suits
aside on all new service jobs amounting to more
than $30. Every three months the commission-
money thus accumulated is divided equally
among the twenty or twenty-five members of
the repair staff. The plan operates like a bonus
system, and serves well as an incentive to secur-
ing new business.
When to Pay
The question of when to pay and when not
to pay commissions for new business in con-
ducting a music store ought to solve itself most
of the time. The problem involved is to main-
tain the dignity of the house and to make
money, and paying fair rewards for service is
entirely within the bounds of these ideas. The
modern music merchant ought to be enterpris-
ing enough, however, to make the major part
of his sales unassisted from the outside. It is
a loss of both dignity and money to be com-
pelled to chop off a percentage of his list price
on every transaction.
Perhaps the most dignified thing about the
insurance business is the unflinching refusal of
solicitors and agents to grant rebates to their
friends for securing new business for them. A
statute has even been provided in the insurance
laws making granting such rebates a misde-
meanor. One would hate to see a similar law
passed with reference to the piano business, but
nevertheless it would be gratifying to see piano
merchants make a few strict rules of their own.
The easiest way to establish the fixed-price idea
in the piano business is to try to eliminate most
of the exceptions.
LAUTER
HUMANA
Player Piano
Federal Judge Winslow Denies Injunction
Asked by Westinghouse Electric Mfg. Co.
Against the De Forest Radio Co.
Judge Winslow in the United States District
Court last week denied an injunction sought by
the Westinghouse Electric Mfg. Co. to restrain
the De Forest Radio Co. from prosecuting filed
suits to cancel patents on the alleged infring-
ing Armstrong circuit controlled and manufac-
tured by the plaintiff corporation.
The District of Columbia Court of Appeals
recently held that the De Forest regenerative
transmitter was the original invention of this
device, reversing the Commissioner of Patents in
his contention that the Armstrong patent held
priority. As a result, actions were later filed
by the De Forest Co. against the Westinghouse
interests for cancellation of their Armstrong
patents and will be shortly tried in the Federal
Court, Eastern Pennsylvania District. A num-
ber of other suits are also pending.
If you are going after the
best business in town, you
need the Lauter-Humana.
A dozen distinctive fea-
tures make it different
from any other player
piano.
Buys Out Merz Music Store
MARYSVILLE, O., October 27.—The entire music
stock of the Merz Music Store has been pur-
chased by the Holycross Music Store and has
been transferred to the warerooms of the latter
concern. Harry Merz, who owned the Merz
Music Store, purchased the Penhorwood store
some time ago and operated it under the
changed name in addition to his music store in
Columbus.
LAUTER GO.
Newark, N. J.
62nd Year
NOVEMBER 1, 1924
THE MUSIC TRADE REVIEW
9
Retail Dealers' Commission Problems
Calvin T. Purdy, Retail Manager of Hardman, Peck & Co., New York, Sums Up the Vexed Question of the
Retail Dealer's Relations With the Music Teacher in Sale of Pianos—Checking the Work of
the "Commission Hound" Without Losing Good Will and Ultimately Sales
N A period, such as the present, when the
retail piano industry is endeavoring to
register its progressiveness at every turn
with movements for cleaner advertising, cleaner
selling and a more efficient management of ac-
counts, it seems entirely fitting to consider an-
other important item, which cuts into the mer-
chant's profit: viz., the payment of unneces-
sary commissions. The evil of paying rebates
to piano teachers and professional musicians for
"introducing" to the piano dealer prospects who
would have doubtless found their way to his
store eventually probably began with the open-
ing of the first piano store, wherever it was.
The annual loss to the dealer under this custom
has been considerable.
To many of the large houses such a practice
is no longer an evil. They have seen fit to
organize themselves to meet the proposition
consistently and have stood their ground. Such
houses have recognized the fact that there is
such a thing as a just recompense for the per-
son who works for their establishment exclu-
sively, but they have closed their doors on the
nomadic lead-getter who shops everywhere with
the customer only to anchor where the sale,
which means his own commission, is the most
satisfactory.
It is obvious that the music teacher or musi-
cian who visits piano stores indiscriminately
with a prospect is performing no economic value
to the house by his presence or introduction.
He is a mere spectator of the transaction, and
can by no twist of logic make it clear that he
is entitled to any of the money which the quality
of the piano and the arguments of the floor
salesman have secured.
An extreme case was cited recently by Calvin
T. Purdy, manager of the Fifth avenue ware-
rooms of Hardman, Peck & Co., New York,
in which a piano teacher claimed her commis-
sion a week or two after the sale had been
made, without any previous communication.
The teacher had simply advised her pupil to
call at the Hardman establishment. The floor
salesman waiting on the customer had no diffi-
culty finding the exact piano to suit her and
the deal was made.
Mr. Purdy, meeting the music teacher in the
store some time after the piano had been deliv-
ered, explained that the young woman had made
no reference to being directed to the Hardman
store. He further stated that he had no record
of any agreement with the music teacher to indi-
cate that she was entitled to a commission. For
this reason, on behalf of a strict policy of the
Hardman house, he refused to allow any com-
mission on the sale.
The music teacher then began to get in a few
"licks" and advised the customer to return the
piano, as it was not, in her opinion, in a satis-
factory condition. A special repairman was sent
to the customer's home, which happened to be
an hour's ride from the store, and he consumed
half a day in determining that the piano was
in the same perfect condition it had been when
leaving the store and did not even need tuning.
The music teacher, who had doubtless counted
on a new hat with the commission she was so
sure of getting, was not of this opinion, and
within another month the customer was request-
ing a piano of different case design. The matter
was finally adjusted and no commission was
paid to the teacher, but not without much in-
convenience and expense.
"Hardman, Peck & Co. are by no means an-
tagonistic to music teachers who consistently
work for the Hardman piano and for it alone,"
said Mr. Purdy. "For years we have had satis-
I
factory relationships with many music teachers
in Greater New York who are influential in
bringing prospects into our store. These indi-
viduals generally have Hardman grands in their
studios and their admiration for our instruments
has a distinct influence on the pupil intending
to buy. When such influence paves the way to
a sale, it is only fair that the teacher be re-
warded."
This attitude represents the practice of most
of the large piano houses in the larger cities.
Frequently it is extended to grant a commission
to any employe of the establishment, whether
bookkeeper, stenographer or elevator operator,
when their personal friends are brought into the
store to buy and are sold. Department stores
with piano departments,'such as the John Wana-
maker Store in New York, have a working ar-
rangement with the entire personnel of the
establishment for such a service.
This practice is a commendable one, as is any
practice which widens the contact of a business
house. The house of John Wanamaker with its
3,000 employes has a connecting link, through
their families with practically every neighborhood
of the five boroughs of Greater New York and its
suburbs. If each employe were to bring in
one real piano prospect per year, one can imagine
the great benefit to be gained by the piano de-
partment. This is, of course, more than can
be expected, but there is no doubt that much
good business is obtained by this arrangement.
The house of Hardman, Peck & Co. goes still
further in the matter of allowing commissions
to employes for new business brought into the
store, extending the practice to include its re-
pair business. No direct commissions are paid
to the individual securing the repair work, but
a small percentage of the cost of the job is set
Court Refuses to Restrain
Prosecution of Suits
aside on all new service jobs amounting to more
than $30. Every three months the commission-
money thus accumulated is divided equally
among the twenty or twenty-five members of
the repair staff. The plan operates like a bonus
system, and serves well as an incentive to secur-
ing new business.
When to Pay
The question of when to pay and when not
to pay commissions for new business in con-
ducting a music store ought to solve itself most
of the time. The problem involved is to main-
tain the dignity of the house and to make
money, and paying fair rewards for service is
entirely within the bounds of these ideas. The
modern music merchant ought to be enterpris-
ing enough, however, to make the major part
of his sales unassisted from the outside. It is
a loss of both dignity and money to be com-
pelled to chop off a percentage of his list price
on every transaction.
Perhaps the most dignified thing about the
insurance business is the unflinching refusal of
solicitors and agents to grant rebates to their
friends for securing new business for them. A
statute has even been provided in the insurance
laws making granting such rebates a misde-
meanor. One would hate to see a similar law
passed with reference to the piano business, but
nevertheless it would be gratifying to see piano
merchants make a few strict rules of their own.
The easiest way to establish the fixed-price idea
in the piano business is to try to eliminate most
of the exceptions.
LAUTER
HUMANA
Player Piano
Federal Judge Winslow Denies Injunction
Asked by Westinghouse Electric Mfg. Co.
Against the De Forest Radio Co.
Judge Winslow in the United States District
Court last week denied an injunction sought by
the Westinghouse Electric Mfg. Co. to restrain
the De Forest Radio Co. from prosecuting filed
suits to cancel patents on the alleged infring-
ing Armstrong circuit controlled and manufac-
tured by the plaintiff corporation.
The District of Columbia Court of Appeals
recently held that the De Forest regenerative
transmitter was the original invention of this
device, reversing the Commissioner of Patents in
his contention that the Armstrong patent held
priority. As a result, actions were later filed
by the De Forest Co. against the Westinghouse
interests for cancellation of their Armstrong
patents and will be shortly tried in the Federal
Court, Eastern Pennsylvania District. A num-
ber of other suits are also pending.
If you are going after the
best business in town, you
need the Lauter-Humana.
A dozen distinctive fea-
tures make it different
from any other player
piano.
Buys Out Merz Music Store
MARYSVILLE, O., October 27.—The entire music
stock of the Merz Music Store has been pur-
chased by the Holycross Music Store and has
been transferred to the warerooms of the latter
concern. Harry Merz, who owned the Merz
Music Store, purchased the Penhorwood store
some time ago and operated it under the
changed name in addition to his music store in
Columbus.
LAUTER GO.
Newark, N. J.
62nd Year
Future scanning projects are planned by the International Arcade Museum Library (IAML).