Music Trade Review
Issue: 1926 Vol. 83 N. 2 - Page 3
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
REVIEW
THE
VOL. LXXXIII. No. 2
Published Every Satarday. Edward Lyman Bill, Inc., 383 Madison Ave., New York, N. Y., July 10, 1926
sln<
fe
With Retail Music Dealers
Average With 100 of the Leading Retail Music Houses of the Country Is 5.8 Per Cent—The Relation of
the Advertising Appropriation to the Gross Sales—General Music Houses Place Most of
Their Appropriations Behind the Piano—Institutional and Sales Copy
I
N view of the extensive plans now under
ducted by The Review a short time ago showed
way by the National Piano Manufacturers' a total decrease of 27.8 per cent in musical in-
Association for a national campaign devoted
strument lineage from 1924 to 1925 in twenty-
to the promotion of the piano with the general
seven of the leading cities throughout the coun-
buying public, the retail music merchants' ad- try. This shrinkage was found in all sections
vertising, which constitutes the bulk of the ad-
of the country and in practically every city that
vertising expenditure of the music industries,
reported. As was pointed out at the time when
the amount invested in it, its efficiency in cre- the results of this investigation were first pub-
ating sales volume, and the type of copy which
has brought the best results becomes a more
important problem than ever before.
N view of the fact that the National
For, whatever the piano manufacturers may / Piano
Manufacturers'
Association
is
do in national piano promotion, the work of
about
to
undertake
a
campaign
of
national
the individual merchant in the advertising me-
dia that he uses in the territory from which he promotion for the piano, the retail mer-
draws his sales becomes just so much the more chants' advertising methods and expendi-
important. If the national campaign is to suc- tures become more vitally important than
ceed in its aims, there must be close co-opera-
ever before. For it depends upon the co-
tion between the two, for when all is said and
done, it is the merchant's advertising that will operation which exists between these two
turn the new appreciation of the piano, which factors as to the relative success of each.
it is hoped the national campaign will create, The national campaign will create the de-
into actual, concrete sales.
sire to own a piano; the dealers' advertising
Improvement in Retail Advertising
will turn that desire into a concrete sale.
High standards have been set in the retail
Therefore
the information which is con-
music merchant's advertising during the past few
years, as witness the advertising exhibits which tained in this article.—Editor.
have been a feature of the last several national
conventions. But, despite this advance, there
is still too much advertising of the "bait" type,
lished, two aspects of this condition must be
too much publicity which stresses so-called val- taken into consideration. The first is whether
ues to the exclusion of the real selling factors or not retail advertising of musical instruments
the piano possesses, too much emphasis upon
has lost its power to create prospects for the
terms to the neglect of the musical capabilities
retail music merchant with the result that he
of the instrument. The piano merchant who
has decreased his appropriation and is using
sins in this direction is still too numerous, al-
other means to make sales. The second is that
though he has received a striking lesson that
retail music merchants have decreased their ad-
in the long run such tactics are rarely profit- vertising appropriations in the face of a lower
able.
demand in an effort to cut sales overhead.
Witness the complete change in the policy of
Which of these two factors has created
Gimbel Bros., of New York and Philadelphia, the situation outlined above The Review has
only a few months ago. That was perhaps the endeavored to ascertain through a question-
greatest victory that constructive piano adver-
naire recently sent out to 100 of the leading
tising has ever achieved and the most concrete
general music houses in the country. The ques-
example that the trade has ever been giv'en of
tions asked them covered the percentage of
the factors which eventually create a steadily their advertising to their gross sales, the division
increasing piano business.
of their advertising appropriation among the
various departments in their stores, the results
Shrinkage in Lineage
from each type of advertising which they used,
The first thing definitely known in regard to
and finally the use of institutional and special
retail music merchants' advertising is that it is
sales copy and the actual results from each type.
shrinking in quantity. An investigation con-
Here The Review takes the opportunity to
thank the large percentage of the music mer-
chants who answered the questionnaire for their
co-operation in arriving at definite conclusions
on these questions.
Advertising in the Overhead
It was found that the average ratio of the
advertising appropriation to the gross sales of
the houses replying was 5.8 per cent, 5.098 per
cent being spent in the newspapers, and .702
per cent being spent for direct mail work.
Most of the merchants replying stated that the
basis of their advertising appropriation was a
certain set percentage of their gross sales, this
being largely a constant item of overhead with
but very little general fluctuation. Hence it is
possible to assume that, given a year when the
gross sales of a music house show a decrease,
the advertising appropriation will also show a
similar decrease, a condition which probably
existed to some extent during 1925 and which
was reflected in the decrease shown in lineage
used by merchants in that year as compared to
the previous one.
The Wisdom of This Rule
The wisdom of this rule is questionable, of
course. A decrease in demand naturally calls
for more intensive sales work of all kinds, in-
cluding advertising. When, through some cause
or other, sales decrease, the advertising appro-
priation should at least be held at a constant
figure, even though this, to some extent, may
increase the overhead percentage. A relaxation
in sales effort before an increase in selling re-
sistant simply tends to accentuate a condition
that is already serious. The retail music mer-
chant who follows such a course of procedure,
unconsciously it is true in most cases, depends
for his volume of sales directly upon general
industrial conditions in his territory with the
result that they fluctuate accordingly.
Protect the Turnover
That this is a condition which may be over-
come though an intensification of sales effort
that leads to holding the turnover in the store
at a constant figure has been demonstrated time
and again. Greater sales effort may increase
the overhead and lower the net profit on the
individual sale, but it is insurance against a
slower turnover where the greatest loss exists
(Continued on page 4)
REVIEW
THE
VOL. LXXXIII. No. 2
Published Every Satarday. Edward Lyman Bill, Inc., 383 Madison Ave., New York, N. Y., July 10, 1926
sln<
fe
With Retail Music Dealers
Average With 100 of the Leading Retail Music Houses of the Country Is 5.8 Per Cent—The Relation of
the Advertising Appropriation to the Gross Sales—General Music Houses Place Most of
Their Appropriations Behind the Piano—Institutional and Sales Copy
I
N view of the extensive plans now under
ducted by The Review a short time ago showed
way by the National Piano Manufacturers' a total decrease of 27.8 per cent in musical in-
Association for a national campaign devoted
strument lineage from 1924 to 1925 in twenty-
to the promotion of the piano with the general
seven of the leading cities throughout the coun-
buying public, the retail music merchants' ad- try. This shrinkage was found in all sections
vertising, which constitutes the bulk of the ad-
of the country and in practically every city that
vertising expenditure of the music industries,
reported. As was pointed out at the time when
the amount invested in it, its efficiency in cre- the results of this investigation were first pub-
ating sales volume, and the type of copy which
has brought the best results becomes a more
important problem than ever before.
N view of the fact that the National
For, whatever the piano manufacturers may / Piano
Manufacturers'
Association
is
do in national piano promotion, the work of
about
to
undertake
a
campaign
of
national
the individual merchant in the advertising me-
dia that he uses in the territory from which he promotion for the piano, the retail mer-
draws his sales becomes just so much the more chants' advertising methods and expendi-
important. If the national campaign is to suc- tures become more vitally important than
ceed in its aims, there must be close co-opera-
ever before. For it depends upon the co-
tion between the two, for when all is said and
done, it is the merchant's advertising that will operation which exists between these two
turn the new appreciation of the piano, which factors as to the relative success of each.
it is hoped the national campaign will create, The national campaign will create the de-
into actual, concrete sales.
sire to own a piano; the dealers' advertising
Improvement in Retail Advertising
will turn that desire into a concrete sale.
High standards have been set in the retail
Therefore
the information which is con-
music merchant's advertising during the past few
years, as witness the advertising exhibits which tained in this article.—Editor.
have been a feature of the last several national
conventions. But, despite this advance, there
is still too much advertising of the "bait" type,
lished, two aspects of this condition must be
too much publicity which stresses so-called val- taken into consideration. The first is whether
ues to the exclusion of the real selling factors or not retail advertising of musical instruments
the piano possesses, too much emphasis upon
has lost its power to create prospects for the
terms to the neglect of the musical capabilities
retail music merchant with the result that he
of the instrument. The piano merchant who
has decreased his appropriation and is using
sins in this direction is still too numerous, al-
other means to make sales. The second is that
though he has received a striking lesson that
retail music merchants have decreased their ad-
in the long run such tactics are rarely profit- vertising appropriations in the face of a lower
able.
demand in an effort to cut sales overhead.
Witness the complete change in the policy of
Which of these two factors has created
Gimbel Bros., of New York and Philadelphia, the situation outlined above The Review has
only a few months ago. That was perhaps the endeavored to ascertain through a question-
greatest victory that constructive piano adver-
naire recently sent out to 100 of the leading
tising has ever achieved and the most concrete
general music houses in the country. The ques-
example that the trade has ever been giv'en of
tions asked them covered the percentage of
the factors which eventually create a steadily their advertising to their gross sales, the division
increasing piano business.
of their advertising appropriation among the
various departments in their stores, the results
Shrinkage in Lineage
from each type of advertising which they used,
The first thing definitely known in regard to
and finally the use of institutional and special
retail music merchants' advertising is that it is
sales copy and the actual results from each type.
shrinking in quantity. An investigation con-
Here The Review takes the opportunity to
thank the large percentage of the music mer-
chants who answered the questionnaire for their
co-operation in arriving at definite conclusions
on these questions.
Advertising in the Overhead
It was found that the average ratio of the
advertising appropriation to the gross sales of
the houses replying was 5.8 per cent, 5.098 per
cent being spent in the newspapers, and .702
per cent being spent for direct mail work.
Most of the merchants replying stated that the
basis of their advertising appropriation was a
certain set percentage of their gross sales, this
being largely a constant item of overhead with
but very little general fluctuation. Hence it is
possible to assume that, given a year when the
gross sales of a music house show a decrease,
the advertising appropriation will also show a
similar decrease, a condition which probably
existed to some extent during 1925 and which
was reflected in the decrease shown in lineage
used by merchants in that year as compared to
the previous one.
The Wisdom of This Rule
The wisdom of this rule is questionable, of
course. A decrease in demand naturally calls
for more intensive sales work of all kinds, in-
cluding advertising. When, through some cause
or other, sales decrease, the advertising appro-
priation should at least be held at a constant
figure, even though this, to some extent, may
increase the overhead percentage. A relaxation
in sales effort before an increase in selling re-
sistant simply tends to accentuate a condition
that is already serious. The retail music mer-
chant who follows such a course of procedure,
unconsciously it is true in most cases, depends
for his volume of sales directly upon general
industrial conditions in his territory with the
result that they fluctuate accordingly.
Protect the Turnover
That this is a condition which may be over-
come though an intensification of sales effort
that leads to holding the turnover in the store
at a constant figure has been demonstrated time
and again. Greater sales effort may increase
the overhead and lower the net profit on the
individual sale, but it is insurance against a
slower turnover where the greatest loss exists
(Continued on page 4)
Future scanning projects are planned by the International Arcade Museum Library (IAML).