Music Trade Review

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he wants two or three years in which to pay
for it. Of course good salesmanship can and
does meet the objection in a fair proportion of
cases, but it means more work and there is
always the chance of a lost sale particularly
when competitors advertise either no interest
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With the Discounts for Cash or
Short Terms
Plus the Carrying Charges
Depending on Time
HICH is the easiest way?
dealer is honest and does not tag the instru-
To add carrying charges or inter-
ment with a fictitious price that will cover
est to the advertised price of a musi-
every possible exigency of terms, trade-ins
cal instrument when the customer
and special discounts and still leave a liberal
announces that terms are desired, or to stick F. J. Heppe, Weil-Known and Successful Piano margin of net profit.
Merchant of Philadelphia
to the advertised price and then give a discount
Among the retailers who have sought to
if cash or short terms are offered? Here is
solve the problem of getting a proper return
a question that has long puzzled some music charges or that the interest will be only the for credit accommodation and still avoid dis-
merchants and has been successfully answered flat rate on deferred payments.
couraging the prospect is the house of C. J.
Dealers have tried various plans for over- Heppe & Son, Philadelphia. This company,
by quite a few of them.
One of the great objections to the recom- coming this sales resistance without boosting some time ago, developed a schedule that has
mendation that music merchants adopt the car- prices unduly and without making it necessary worked with complete satisfaction despite the
rying charge on deferred payments in order to to resell the customer on carrying charges after fact that at the outset the salesman regarded
provide a sufficient sum to cover the cost of the deal had been practically closed on a cash it with a certain measure of suspicion. It simply
carrying the account and any financing changes basis. However, it has been found that the calls for pricing the pianos with the carrying-
that might be necessary is that it increases sales average piano prospect, from the middle classes charge over a three-year period included. This
resistance. It has been held that a customer particularly, has been taught, through the is done because the State of Pennsylvania sets
who is quite satisfied with the quoted price and wrong kind of advertising, to expect to buy thirty-six months as the maximum for a bail-
is all set to close the deal is very likely to shy on terms as cheaply as for cash. He is not ment lease. Heppe & Son are a one-price
house and the tags on the
off when he is informed that he
pianos represent the amount
must pay eighteen or twenty
the customer is going to pay if
per cent or more for the privi-
he wants the piano on terms
lege of paying for the instru-
covering three years.
ment on instalments. Of course
it is logical to assume that the
The system may best be de-
TTEREWITH is presented a discussion that should interest every piano
music dealer, just as the auto-
scribed
by an example: we will
LA. dealer. It touches upon the vital subject of discounts. Every piano
mobile dealer and the vacuum
notice on the floor, for instance,
merchant in the land is confronted with the problem of adding carrying charges
or interest to the established price of the piano, or setting a price that all
cleaner dealer, is entitled to
a small frand with the price of
carrying charges and their offering a discount for cash or short terms. In
some return on the money that
$745
on its' tag. This price
the accompanying article the method of one of the best known retail piano
he is actually loaning the cus-
covers
an instalment contract
stores in Americu is described in complete detail. C. J. Heppe & Son, of
tomer in order that the latter
of thirty-six months and on the
Philadelphia, have solved the problem of getting a proper return for credit
accommodation without discouraging the customer. Heppe's is a One-Price
lowest terms acceptable by the
can make the purchase. It is
House, yet nothing is lost by this concern in handling its time sales. It will
house. This means that the cus-
also comparatively easy to ex-
be of worthwhile interest to every dealer to read how Heppe carries out its
tomer can pay as little as $12
plain that the carrying charge
method of handling time payments without giving the customer the impres-
per month and then at the end
covers a period of from thirty
sion that the original price has been expanded before the completion of the
contract.—EDITOR'S NOTK.
of the thirty-six months pay a
to thirty-six months or more
balance of $290 in order to gain
and averages little more than
title of the instrument. On the-
the normal interest of six per
other hand, if he elects to pay
cent annually on the money to
take care of collection and service charges. to be blamed, for hundreds upon hundreds of a larger amount each month, the balance at the
The bulk sum, however, seems large and the advertisements of musical instruments stress end will be smaller; for "instance,'a" monthly
terms and imply that the customer is not real- payment of $19.50 will leave a balance of $27
sales resistance becomes pronounced.
The secret is that the customer does not fig- ly expected to pay cash. When, therefore, the at the end of thirty-six months. The customer
ure in terms of annual percentages but only customer is asked to meet an extra charge for may perhaps say that he can make a larger
visualizes the fact that when he is all set to credit accommodation, he naturally feels that monthly payment and here is where the advan-
{Continued on fagc : 23) ._
buy a $500 piano he is asked to pay $600 if he is being imposed upon, especially wheti the
W
Which Is It?
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