Music Trade Review
Issue: 1930 Vol. 89 N. 5 - Page 3
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
Published Monthly
FEDERATED BUSINESS PUBLICATIONS, INC.
420 Lexington Ave.
New York
Serving
the Entire
Vol. 89
ade Review
Music
Industry
May, 1930
No. 5
The
Single Copies
Twenty Cents
Annual Subscription
Two Dollars
OSt of
xyeturned Goods
CCORDING to a recent survey made by
the National Retail Dry Goods Associa-
tion, and confined to department stores,
the return goods evil has reached a point
where it adds considerably more than 100 per
cent to the cost of selling, and it is certain that
a proportionate cost is faced by the retail spe-
cialist who encourages or accepts returns with-
out quibble.
From the angle of the music trade, an impor-
tant fact is that pianos head the list of returns,
with 28.3 per cent. Radios show 23.1 per cent,
talking machines and records 20.9, and musical
instruments and sheet music 15.2. The only
line that approached pianos was oriental rugs,
with 24.7 per cent, and it is significant that
women's dresses, where wrong size figures so
prominently as the cause of returns, reported
only 14.9 to 19.1 per cent.
The figures compiled by the Association were
unbiased and covered practically every line
handled in a department store, but the fact that
over twenty-eight per cent of pianos were re-
ported returned seems somewhat out of propor-
tion. The Review took occasion to investigate
the matter to a considerable extent and found
that so far as managers of piano sections in
department stores will admit returns are not
over ten per cent even under unusual sales con-
ditions. In fact, one manager declared that last
year actual returns of pianos represented
only a trifle over one per cent of the sales as
compared to less than half a per cent during
better business years. Another manager admit-
ted two per cent of returns, declaring that he
had cut the returns in about half through a re-
vised selling system.
It is to be admitted that at -least one depart-
ment store had some serious trouble with the
returns last year which may have put the aver-
age up, but hardly to the point indicated in the
survey. The head of one department expressed
the opinion that trade-ins taken in exchange
were also counted as returns, although, if that
were so, the percentage would be even higher.
Individual dealers, on the other hand, declare
that ten per cent would be an unusually high
average of returns. One dealer gave five per
A
cent as his average for 1929, another gave six
and a half per cent for the year and explained
that that was unusually high due to a wave of
unemployment that moved people to give up
their instruments. One trade member declared
that the department store figures would not re-
flect the general trade situation because the de-
partment store was inclined to take back any-
thing without argument, whereas the individual
dealer would put forth unusual efforts to keep
the instrument sold. This would be logical but
for the fact that in most department stores the
piano department is handled much like the indi-
SURVEY of the re-
turn goods evil which
proves the value of sound
selling methods that keep
merchandise sold. Every
article returned to the store
doubles the sales cost.
vidual business with the same sales efforts be-
hind it.
It would seem that the percentage for radio
returns, 23.1 per cent, is nearer a correct figure
due to the fact that, with home demonstrations
so prevalent, there are bound to come back to
the store numerous unsold instruments, yet in-
vestigation indicates that even that percentage
is high. Although many department stores do
not emphasize home demonstrations, the buy-
ing public nevertheless accepts the store's policy
of accepting the return of unwanted goods, as a
tentative acquiescence to the home demonstra-
tion idea. Several radio dealers interviewed were
much impressed with the high percentage of
returns and held that it was an impressive ar-
gument for the controlled demonstration as
against the free-for-all practice. In other words,
if customers are called upon to make a deposit
and sign a contract before the radio is placed
in the home, with the assurance that the money
will be refunded if, for any reason, the receiver
proves unsatisfactory, the customer's attitude
changes and returns are cut down.
Another dealer pointed to the fact that Ori-
ental rugs were second on the list of returns,
which shows the fickleness of the public, yet
rug returns, as a rule, do not represent a seri-
ous abuse. An Oriental rug runs into money
and it is quite the common thing to have sev-
eral rugs sent home on approval in order that
one may be chosen of a color to harmonize
with other furnishings. Perhaps radios and
pianos are sometimes bought on trial on the
same principle, but it cannot, in any sense, be
termed a common practice, the decision as to
style in such case being as to the design rather
than the more delicate question of color.
Talking machines and records would prove
a mighty unprofitable line for the dealer if a
fifth of all machines and records came back,
yet the survey says 20.9 per cent do. This is
in face of the fact that the return of records is
strictly taboo in the majority of dealers. The
same may be said of musical instruments and
sheet music, of which the survey says 15.2 per
cent are returned. Sheet music may be practi-
cally eliminated, which makes it even more un-
likely that fifteen per cent of other instruments
prove unsatisfactory to the buyer.
A well-known merchandising man sought to
explain the high percentages of the survey by
pointing out that the figures probably covered
the situation a couple of years ago when cer-
tain department stores were running elaborate
sales of cheap grands and player-pianos and
when, at times, it took almost as many trucks
to bring back the instruments as were required
to make original deliveries. The radio figures,
too, may have covered a period when price
fluctuations moved buyers to return instruments
bought at the peak and sacrifice the deposit and
the first few payments in order to buy a sinii-
(Please turn to page 14)
Published Monthly
FEDERATED BUSINESS PUBLICATIONS, INC.
420 Lexington Ave.
New York
Serving
the Entire
Vol. 89
ade Review
Music
Industry
May, 1930
No. 5
The
Single Copies
Twenty Cents
Annual Subscription
Two Dollars
OSt of
xyeturned Goods
CCORDING to a recent survey made by
the National Retail Dry Goods Associa-
tion, and confined to department stores,
the return goods evil has reached a point
where it adds considerably more than 100 per
cent to the cost of selling, and it is certain that
a proportionate cost is faced by the retail spe-
cialist who encourages or accepts returns with-
out quibble.
From the angle of the music trade, an impor-
tant fact is that pianos head the list of returns,
with 28.3 per cent. Radios show 23.1 per cent,
talking machines and records 20.9, and musical
instruments and sheet music 15.2. The only
line that approached pianos was oriental rugs,
with 24.7 per cent, and it is significant that
women's dresses, where wrong size figures so
prominently as the cause of returns, reported
only 14.9 to 19.1 per cent.
The figures compiled by the Association were
unbiased and covered practically every line
handled in a department store, but the fact that
over twenty-eight per cent of pianos were re-
ported returned seems somewhat out of propor-
tion. The Review took occasion to investigate
the matter to a considerable extent and found
that so far as managers of piano sections in
department stores will admit returns are not
over ten per cent even under unusual sales con-
ditions. In fact, one manager declared that last
year actual returns of pianos represented
only a trifle over one per cent of the sales as
compared to less than half a per cent during
better business years. Another manager admit-
ted two per cent of returns, declaring that he
had cut the returns in about half through a re-
vised selling system.
It is to be admitted that at -least one depart-
ment store had some serious trouble with the
returns last year which may have put the aver-
age up, but hardly to the point indicated in the
survey. The head of one department expressed
the opinion that trade-ins taken in exchange
were also counted as returns, although, if that
were so, the percentage would be even higher.
Individual dealers, on the other hand, declare
that ten per cent would be an unusually high
average of returns. One dealer gave five per
A
cent as his average for 1929, another gave six
and a half per cent for the year and explained
that that was unusually high due to a wave of
unemployment that moved people to give up
their instruments. One trade member declared
that the department store figures would not re-
flect the general trade situation because the de-
partment store was inclined to take back any-
thing without argument, whereas the individual
dealer would put forth unusual efforts to keep
the instrument sold. This would be logical but
for the fact that in most department stores the
piano department is handled much like the indi-
SURVEY of the re-
turn goods evil which
proves the value of sound
selling methods that keep
merchandise sold. Every
article returned to the store
doubles the sales cost.
vidual business with the same sales efforts be-
hind it.
It would seem that the percentage for radio
returns, 23.1 per cent, is nearer a correct figure
due to the fact that, with home demonstrations
so prevalent, there are bound to come back to
the store numerous unsold instruments, yet in-
vestigation indicates that even that percentage
is high. Although many department stores do
not emphasize home demonstrations, the buy-
ing public nevertheless accepts the store's policy
of accepting the return of unwanted goods, as a
tentative acquiescence to the home demonstra-
tion idea. Several radio dealers interviewed were
much impressed with the high percentage of
returns and held that it was an impressive ar-
gument for the controlled demonstration as
against the free-for-all practice. In other words,
if customers are called upon to make a deposit
and sign a contract before the radio is placed
in the home, with the assurance that the money
will be refunded if, for any reason, the receiver
proves unsatisfactory, the customer's attitude
changes and returns are cut down.
Another dealer pointed to the fact that Ori-
ental rugs were second on the list of returns,
which shows the fickleness of the public, yet
rug returns, as a rule, do not represent a seri-
ous abuse. An Oriental rug runs into money
and it is quite the common thing to have sev-
eral rugs sent home on approval in order that
one may be chosen of a color to harmonize
with other furnishings. Perhaps radios and
pianos are sometimes bought on trial on the
same principle, but it cannot, in any sense, be
termed a common practice, the decision as to
style in such case being as to the design rather
than the more delicate question of color.
Talking machines and records would prove
a mighty unprofitable line for the dealer if a
fifth of all machines and records came back,
yet the survey says 20.9 per cent do. This is
in face of the fact that the return of records is
strictly taboo in the majority of dealers. The
same may be said of musical instruments and
sheet music, of which the survey says 15.2 per
cent are returned. Sheet music may be practi-
cally eliminated, which makes it even more un-
likely that fifteen per cent of other instruments
prove unsatisfactory to the buyer.
A well-known merchandising man sought to
explain the high percentages of the survey by
pointing out that the figures probably covered
the situation a couple of years ago when cer-
tain department stores were running elaborate
sales of cheap grands and player-pianos and
when, at times, it took almost as many trucks
to bring back the instruments as were required
to make original deliveries. The radio figures,
too, may have covered a period when price
fluctuations moved buyers to return instruments
bought at the peak and sacrifice the deposit and
the first few payments in order to buy a sinii-
(Please turn to page 14)
Future scanning projects are planned by the International Arcade Museum Library (IAML).