Music Trade Review
Issue: 1925 Vol. 81 N. 23 - Page 3
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REVIEW
THE
VOL. LXXXI. No. 33
Published Every Saturday. Edward Lyman Bill, Inc., 383 Madison Ave., New York, N. Y. Dec. 5,1925
• ln| gJS - g2
?J? nU
"Pullman Jump" Selling by Travelers
Leads to Lower Sales Volume
Piano Manufacturers Who Have Big Volume Outputs at the Present Day Are Those Whose Salesmen
Work the Small Towns as Well as the Large Cities—Neglect of Small Dealer By Many Makers
of Medium and Low-Priced Instruments a Factor in Lowering Such Makers' Production
VERY once in so often there is brought
to light the fact that, while various prom-
inent industries in the country show
marked increases in .production, the output of
pianos, which term may be held to include play-
ers and reproducers, is somewhat smaller to-day
than it was twelve or thirteen years ago.
Low production figures fortunately do not
in any sense spell disaster to the trade for the
reason that, within the past decade or two,
there has been considerable concentration of
manufacturing resources and at the same time
the unit value of instruments of the piano class
has increased considerably over the average
amount realized on sales some years ago before
the reproducing grand, selling from $2,000 to
$4,000 or thereabouts, became a more or less
common product. In short, while the turnover
of instruments has not been so large, the gross
amounts realized in sales, and, logically, in
profits, have been larger.
As a means for gauging the progress of the
industry, however, it is well to give thought to
production figures, for if only as many pianos
are sold in 1925 as were sold in 1913 then the
industry has not kept pace with the maximum
growth of the market, inasmuch as an increase
in population, representing many millions,
should mean a logical increase in market pos-
sibilities, a fact figured carefully by merchan-
disers in practically every line.
The Distribution Factor
The difficulty it is agreed appears to lie in
limited distribution facilities. This limit is set
in a great measure by the manufacturers them-
selves through the practice of granting restricted
territories to the merchants handling their lines.
Restricted territories naturally have their ad-
vantages and, in the case of many manufacturers
whose output is generally somewhat below de-
mand, meet the situation admirably, particularly
when the retailers are required to meet certain
obligations in order to retain territorial priv-
ileges.
It is found in all too many cases, however,
that the requirements of manufacturers in grant-
ing exclusive territories are distinctly lenient
and strongly in favor of the dealers who are
given a number of counties and sometimes an
entire State in which to operate without fear of
interference from outside interests. This means
that, taken from any angle, the amount of busi-
ness possible in that given territory is limited
by the dealer's ability to maintain his quota.
E
offered the opinion that the growth of the in-
dustry was hampered primarily by improper
wholesale selling. After a careful study he
found, so he said, that the tendency of too many
manufacturers was to concentrate on the lead-
ing dealers in the larger cities and pay scant
attention to the little fellow in "the sticks." In
short, all the play, or the bulk of it, is for the
big game, and the smaller merchant is not sold
HE piano manufacturer whose product strongly through personal contact, but is al-
is in the low-priced or medium grade lowed to buy according to the dictates of his
class and whose traveling force only covers own business sense.
Piano manufacturers who have discussed this
the bigger centers of distribution is neglect- phase of the problem declare frankly that the
ing one of the big outlets for his instru- cost of traveling a man out of New York, Chi-
ments. There are striking examples in the cago, Boston or any other large center is too
piano industry of firms which cover every heavy to permit of his combing the country
section of the country through resident trav- thoroughly, to develop and maintain contact
with the dealer who orders one or two instru-
elers and who, as a result, rank among the. ments at a time, and that the increase in this
leaders in output. They do it because they small business that might possibly be developed
cultivate the small dealer as well as the by intensive sales contact would hardly repay
its cost.
large one and miss no opportunity.
On the face of it, this explanation might seem
—EDITOR.
logical were it not for the fact that very suc-
cessful piano manufacturers are building up
most substantial and profitable distribution by
imately 1,200 dealers, some of them with branch that very system of combing the territory and
stores that increase materially the total number sidetracking the policy of handling only such
of outlets and all these dealers operate on a trade as can be covered by so-called "Pullman
basis that provide suitable rewards in sales and jumps." That this course is proper is indicated
profits for the energy expended. This shows a by the fact that one Western concern will have
careful combing of all possible markets to a shipped by the end of the year some 26,000
degree that has developed one of the largest, instruments. Another will have an output this
if not the largest, piano manufacturing institu- year of considerably over 30,000 instruments,
tions in t,he country and one of the most profit- and still another will be in the 25,000 class. If
these concerns had to depend upon the dealers
able as well.
in the big cities, these figures would not have
Wholesale Selling Methods
Piano men themselves, at least those who been possible.
Their Reformation
give serious consideration to trade problems,
The modern policy in wholesale piano selling
realize the fact that larger and more intensive
distribution will prove the real basis for in- for those concerns that seek quantity produc-
creased production and turnover in the industry. tion on medium-priced lines appears to be to
But they find some difficulty in developing a place in charge of a competent salesman a single
remedy and are thus largely sticking to prece- State or -in thinly populated districts two or
dent. It remains, therefore, for some one out- three States, and to demand of him that he
side the field with his perspective unmarred by develop distribution in those States to a high
too close association with the problem to con- degree and keep it there. This means that the
sider the situation and its remedy from a cold- salesman has the time and, what is just as im-
portant, the inclination to visit the crossroads
blooded merchandising angle.
Only recently an individual who had come in dealer who has been buying one piano at a time
contact with the piano trade, though still a big and, by personal contact, persuade him to in-
factor in an industry that has enjoyed distribu- crease his order to two or three. By this direct
(Continued on page 11)
tion through practically every corner drug store,
Some years ago the alteration of the exclu-
sive territory idea, with a view to basing such
territory on the population and potential market
rather than upon area, was put into effect by
a Western concern with such good results that
it has on its books at, the present time approx-
r
REVIEW
THE
VOL. LXXXI. No. 33
Published Every Saturday. Edward Lyman Bill, Inc., 383 Madison Ave., New York, N. Y. Dec. 5,1925
• ln| gJS - g2
?J? nU
"Pullman Jump" Selling by Travelers
Leads to Lower Sales Volume
Piano Manufacturers Who Have Big Volume Outputs at the Present Day Are Those Whose Salesmen
Work the Small Towns as Well as the Large Cities—Neglect of Small Dealer By Many Makers
of Medium and Low-Priced Instruments a Factor in Lowering Such Makers' Production
VERY once in so often there is brought
to light the fact that, while various prom-
inent industries in the country show
marked increases in .production, the output of
pianos, which term may be held to include play-
ers and reproducers, is somewhat smaller to-day
than it was twelve or thirteen years ago.
Low production figures fortunately do not
in any sense spell disaster to the trade for the
reason that, within the past decade or two,
there has been considerable concentration of
manufacturing resources and at the same time
the unit value of instruments of the piano class
has increased considerably over the average
amount realized on sales some years ago before
the reproducing grand, selling from $2,000 to
$4,000 or thereabouts, became a more or less
common product. In short, while the turnover
of instruments has not been so large, the gross
amounts realized in sales, and, logically, in
profits, have been larger.
As a means for gauging the progress of the
industry, however, it is well to give thought to
production figures, for if only as many pianos
are sold in 1925 as were sold in 1913 then the
industry has not kept pace with the maximum
growth of the market, inasmuch as an increase
in population, representing many millions,
should mean a logical increase in market pos-
sibilities, a fact figured carefully by merchan-
disers in practically every line.
The Distribution Factor
The difficulty it is agreed appears to lie in
limited distribution facilities. This limit is set
in a great measure by the manufacturers them-
selves through the practice of granting restricted
territories to the merchants handling their lines.
Restricted territories naturally have their ad-
vantages and, in the case of many manufacturers
whose output is generally somewhat below de-
mand, meet the situation admirably, particularly
when the retailers are required to meet certain
obligations in order to retain territorial priv-
ileges.
It is found in all too many cases, however,
that the requirements of manufacturers in grant-
ing exclusive territories are distinctly lenient
and strongly in favor of the dealers who are
given a number of counties and sometimes an
entire State in which to operate without fear of
interference from outside interests. This means
that, taken from any angle, the amount of busi-
ness possible in that given territory is limited
by the dealer's ability to maintain his quota.
E
offered the opinion that the growth of the in-
dustry was hampered primarily by improper
wholesale selling. After a careful study he
found, so he said, that the tendency of too many
manufacturers was to concentrate on the lead-
ing dealers in the larger cities and pay scant
attention to the little fellow in "the sticks." In
short, all the play, or the bulk of it, is for the
big game, and the smaller merchant is not sold
HE piano manufacturer whose product strongly through personal contact, but is al-
is in the low-priced or medium grade lowed to buy according to the dictates of his
class and whose traveling force only covers own business sense.
Piano manufacturers who have discussed this
the bigger centers of distribution is neglect- phase of the problem declare frankly that the
ing one of the big outlets for his instru- cost of traveling a man out of New York, Chi-
ments. There are striking examples in the cago, Boston or any other large center is too
piano industry of firms which cover every heavy to permit of his combing the country
section of the country through resident trav- thoroughly, to develop and maintain contact
with the dealer who orders one or two instru-
elers and who, as a result, rank among the. ments at a time, and that the increase in this
leaders in output. They do it because they small business that might possibly be developed
cultivate the small dealer as well as the by intensive sales contact would hardly repay
its cost.
large one and miss no opportunity.
On the face of it, this explanation might seem
—EDITOR.
logical were it not for the fact that very suc-
cessful piano manufacturers are building up
most substantial and profitable distribution by
imately 1,200 dealers, some of them with branch that very system of combing the territory and
stores that increase materially the total number sidetracking the policy of handling only such
of outlets and all these dealers operate on a trade as can be covered by so-called "Pullman
basis that provide suitable rewards in sales and jumps." That this course is proper is indicated
profits for the energy expended. This shows a by the fact that one Western concern will have
careful combing of all possible markets to a shipped by the end of the year some 26,000
degree that has developed one of the largest, instruments. Another will have an output this
if not the largest, piano manufacturing institu- year of considerably over 30,000 instruments,
tions in t,he country and one of the most profit- and still another will be in the 25,000 class. If
these concerns had to depend upon the dealers
able as well.
in the big cities, these figures would not have
Wholesale Selling Methods
Piano men themselves, at least those who been possible.
Their Reformation
give serious consideration to trade problems,
The modern policy in wholesale piano selling
realize the fact that larger and more intensive
distribution will prove the real basis for in- for those concerns that seek quantity produc-
creased production and turnover in the industry. tion on medium-priced lines appears to be to
But they find some difficulty in developing a place in charge of a competent salesman a single
remedy and are thus largely sticking to prece- State or -in thinly populated districts two or
dent. It remains, therefore, for some one out- three States, and to demand of him that he
side the field with his perspective unmarred by develop distribution in those States to a high
too close association with the problem to con- degree and keep it there. This means that the
sider the situation and its remedy from a cold- salesman has the time and, what is just as im-
portant, the inclination to visit the crossroads
blooded merchandising angle.
Only recently an individual who had come in dealer who has been buying one piano at a time
contact with the piano trade, though still a big and, by personal contact, persuade him to in-
factor in an industry that has enjoyed distribu- crease his order to two or three. By this direct
(Continued on page 11)
tion through practically every corner drug store,
Some years ago the alteration of the exclu-
sive territory idea, with a view to basing such
territory on the population and potential market
rather than upon area, was put into effect by
a Western concern with such good results that
it has on its books at, the present time approx-
r
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