Music Trade Review

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OPA Announces New Method
Of Figuring Price Increases
A reconverting manufacturer no lon-
^ ^ ger will figure an individual price
increase for his product line on the
basis of the unit cost for his best-sell-
ing item, the Office of Price Adminis-
tration announced on October 11th.
This method of figuring a price in-
crease (Method A of Supplementary
Order 119) is being revoked because its
use has given rise to serious distortions
in some manufacturers' ceiling prices,
OPA explained.
Instead, all manufacturers eligible
for individual price increases on re-
conversion goods will use Method B,
under which ceiling prices are figured
from cost data in the profit and loss
statement for the smallest segment of
the business in which the reconversion
product is made and for which separ-
ate accounts are available.
This change, effective October 16,
1945, will provide a fairer means of
measuring the relief required by recon-
verting manufacturers, and will carry
out more precisely the reconversion
pricing policies of the agency.
The individual adjustment order for
eligible reconverting manufacturers
permits a manufacturer to calculate a
new ceiling based on October 1941
costs, legal advances in materials prices
and basic wage rate schedules since Oc-
tober 1941. plus a profit factor rep-
resenting half of the industry's 1936-39
average percentage margin.
Under Method A, cost adjustments
for an entire product line were based
on the best-selling article in that line.
Recent experience has shown that very
often the best-selling article was a "loss
leader," sold at a loss during the base
month for promotional or good-will
purposes. In other cases, the best-sell-
ing article might be an unusally high-
priced item. Either way, the price in-
crease factor for the rest of the line
is abnormal, and the increase factors
calculated in this way may be substan-
tially higher or lower than the manu-
facturer actually needs.
In addition, very few manufacturers
have the kind of unit cost information
needed to work out prices under Method
A.
Under the circumstances, OPA -has
decided to establish only one method
of adjustment under the order—Method
B.
Where the reconversion product
makes up a relatively small percentage
of the manufacturer's line, calculation
of his materials increase percentage
36
under provisions of Method B, may be
unnecessarily burdensome or not par-
ticularly representative for the recon-
version product.
Under these circumstances, OPA
suggests that the manufacturer get in
touch with his district office, which may
be able to outline a simplified and more
exact procedure. A revision of the in-
dividual adjustment order for recon-
verting manufacturers will be issued
soon, and among other things, it will
change Method B so as to permit more
accurate reflection of the manufactur-
er's own experience product-by-product.
At the same time, it will simplify the
calculations required.
In order to avoid unnecessary in-
convenience to manufacturers who have
already filed applications under Method
A prior to October 16, 1945, OPA
stated that orders covering such cases,
will continue to be issued, provided the
increase factors are found to be in line
with those that would be derived from
the use of Method B. If the increase
factors are not in line, manufacturers
may be requested to furnish such addi-
tional infromation as is necessary to
derive the increase factor under Method
B.
(Amendment 7 to Supplementary
Order 119—Individual Adjustments for
Reconverting Manufacturers—effective
October 16, 1945.)
Federal Reserve Board
Delays Easing of Consumer Credit
The Board of Governors of the
Federal Reserve System amended Reg-
ulation W on September 25, 1945 by
exempting credits for home repairs and
improvements and by lengthening from
12 months to 18 the maturity limitation
on loans which are not for the pur-
pose of purchasing consumers' durable
goods. The amendment became effec-
tive October 15, 1945. In addition the
Board stated:
"Until consumers' goods come on
the market in sufficient supply to meet
demands, the Board believes that the
use of consumer credit should so far
as possible be discouraged. Accordingly,
the Board, after reviewing Regulation
W now that the war is ended, has
concluded that the regulation should
not be substantially amended at the
present time except in the two particu-
lars specified."
Baldwin Piano Co. Gets
Golden Anniversary Award
The Baldwin Piano, was recently
honored when the Baldwin Piano Co.,
Cincinnati, O., received a Golden An-
Lucien Wulsin Receives Golden Anniversary
Award from Brand Names Research Foundation.
niversary Award for continuously
selling this instrument to the American
public since 1862.
Lucien Wulsin, president of com-
pany, received a Golden Anniversary
Award from A. O. Buckingham, vice
chairman of Brand Names Research
Foundation, Inc., at a luncheon at the
Queen City Club, Cincinnati, Ohio.
The Brand Names Research Foun-
dation is honoring American businesses
that have sold their brand name prod-
uct for '50 years or more, in a series
of luncheons and dinners throughout
the country, of which this luncheon is
the first.
Informal attire is explained by the
fact that a heat wave was hiting-
Cincinnati that day.
Lieut. Meyerson Now
Brodwin Sales Manager
Lieut. H. E. Meyerson, son-in-law of
Harry Brodwin head of the Brodwin
Piano Co., New York, has now become
sales manager of that company accord-
rhg to a recent announcement by Mr.
Brodwin.
Lieut Meyerson, was recently dis-
charged from the U.S. Army Air force.
He enlisted early in the war after
attending the City College of New York
and Columbia University. After en-
listment he was sent to the University
of Pittsburgh and later received his
air training at Fort Myer, Fla. Later
he became an instructor at Charleston,
S. C. where he remained for 3 years.
MUSICAL MERCHANDISE MAGAZINE, OCTOBER, 1945