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American production has been the
marvel of the world because we have
been producing for war. In order to
produce for peace. American pro-
ducers and distributors must be able
to pay out of the price it receives
from the customer, all of its costs —
costs of material, wages, depreciation
and obsolescence, taxes and the ren-
tal of capital.
Price regulation which makes man-
agement unable to pay the rental of
capital will decrease employment by
discouraging investment. For the in-
vestor in production and distribution
is just as free to decide whether or
not to invest as is the customer
whether or not to buy.
New Times, New Markets
For practically all types of manu-
facture, the war has introduced dis-
turbing influences which will make
the study of markets, sales potentials
and distribution methods fare more
difficult than even before, but at the
same time even more imperative.
Industrial and population shifts;
changes in income markets and the
number of families in the conven-
tional
income
groups;
possible
changes in consumption habits; dis-
integration of selling organizations
and loss of dealer contacts; develop-
ments in the field of transportation
and communication; new materials,
new technologies, and scientific dis-
coveries; war product developments
applicable to civilian uses, all these
and many other factors are disrup-
tive elements which will make it dan-
gerous for manufacturers in many in-
dustries to proceed on the basis of pre-
war experience without careful study.
During this critical period of tran-
sition, when so very much depends
upon an accurate knowledge of mar-
keting facts and an accurate analysis
of the problems involved in the sale
and transfer of goods and services, it
is doubly important that the matter
be approached with a scientific at-
titude. There must be more depen-
dence upon testing, measurement,
methodical
analysis;
less
upon
hunches and intuition.
And if any distinction can be
drawn between the larger and smaller
manufacturers in respect to the im-
portance of this factual, analytical
approach, we must conclude that it
is the smaller producer who can least
afford to chart his course by guess.
He simply cannot afford the high per-
centage of error that is certain to
result, particularly under the dis-
turbed and highly competitive con*
ditions which may be expected' in
most industries in the immediate post-
war period.
One New Gulbransen Postwar Model
Now in Work; Another to Come Later
being manufactured at present this
piano which has an overstrung scale
with tuning: pins in front and a
Herewith are shown two new Gul-
bransen Pianos. At the left is the
"Fashionette" 37" high in Colonial Style
which will be followed by a Louis XV
standard type action, is one of the
new creations that Gulbrausen has in
mind for its dealers. The case has a
folding top and sliding, music desk.
34
Facts Not Hunches
Most manufacturers have sound
factual information in regard to their
potential productive capacity. Time
and money have been spent in the
development of production plans, en-
gineering plans, product design. For
these purposes they have turned to
experienced men. You don't go by
hunches here.
Having completed the engineering
or scientific and factual phase in
these directions, you are still faced
thus achieve a lowered price policy
that is close to that of the department
store, they will find their sales are
stepped up in proportion. A recent
survey conducted by John Meek In-
dustries revealed that 25 per cent of
the population pain to buy their post-
war radios from radio dealers in any
case, and 64 per cent were uncertain
where they would make the purchase.
It is this majority that the radio
dealer must appeal to in order to
come out ahead in the postwar sales
picture, and from the overall view of
retailing today merging may well be
his best solution.
and an early American in same size
and scale. At the right is the new
Gulbrausen "Square Grand" 39" high
38" deep and 60^>" wide. Although not
THE MUSIC TRADE REVIEW, OCTOBER, 1945