Music Trade Review
Issue: 1945 Vol. 104 N. 3 - Page 12
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
The
REVIEW
Established 1879
CARLETON CHACE, Editor
Alexander Hart
N. R. Rapp
Technical Editor
Associate Editor
Bet+y B. Borin
Circulation Manager
Published monthly at 510 RKO Building, Radio
City, 1270 Sixth Avenue, New York 20, N. Y.
Telephones: Cl rcle 7 - 5842 - 5843 - 5844
Vol. 104
MARCH, 1945
No. 3
it was to go into effect on February 27th, the very day it
appeared in the newspapers. This meant that manufacturers
must put price tags on their pianos that day. Naturally
having no warning they had no price tags. The announce-
ment was so vague that dealers all over the country were
thrown into a dither trying to find out where they were at.
We called the OPA in Washington and pointed out what
confusion had been caused by such a summary action
with the result that on February 28th we were advised by
telephone by E. W. Herlimann. head of the OPA pricing
division for musical instruments, that a mistake was made
in issuing the order and that in that part of the order
which read "becomes effective February 27. 1945" it
should have read "becomes effective April 1, 1915." The
telephone companies all over the country profited more
by that mistake than anyone, as dealers were calling manu-
facturers and the trade press from everywhere trying to
find out what it was all about. In view of the fact that
we were advised by the OPA that it would be some time
before the general order would be distributed we mailed
to all REVIEW subscribers a digest of the pricing and a
complete copy of the order.
Business —As We See It
OOKS as if the piano industry has, at least for some
time to come, been forced into operating on a list
price basis. According to the revised order 2525,
MPR 188, issued on February 26 by the OPA, piano
manufacturers must now place retail price tags on all
pianos shipped after April 1st. No more will the same
piano be marked one price in one
store and another price in another
store further up on Main street. No
more, also, will there be opportunity
of one dealer undercutting another
in order to make a sale. We suppose
that there will be those who will not
welcome this system but it has al-
ways seemed to us that it should
have been that way a long time ago.
Now, the opportunity has come to
give it a thorough trial and it may
Corleton Chace
be that after it has been in force some time dealers will
find that it has proved so satisfactory that it should be
continued even after the OPA goes out of existence, if it
ever does. Anyway, dealers and salesmen will now have
to be on their toes. With down payments, terms, and trade-
in problems well under control it all simmers down to
good salesmanship—and may the best man win. It will
be interesting to watch the result.
OPA Mistake Causes Confusion
ALTHOUGH the announcement of the price ceilings
/ = ^ \ on new pianos had been anticipated for several
-^- - ^ - months it came suddenly and was particularly
confusing. It was first announced in a short story in the
daily press on February 27th in which it was stated that
12
A Favorable Reaction in General
ENERALLY speaking the order was accepted
favorably. Those who sell pianos priced in the
higher brackets complained slightly until they had
analyzed the order carefully, then came to the conclusion
that it would not be so bad after all. We heard only one
complaint from a manufacturer who produces instruments
in the lower brackets who said that the new order lopped
off about 10% on two of his models and that he figured
that 99% instead of the 89%' mark-up would have been
fairer. However, this was more of a comment than a com-
plaint. Dealers, however, seem to feel that the pricing is
fair under the present conditons and above all that they
can now proceed to sell new pianos with greater confidence,
when they get them.
G
Be Fair with the
Manufacturers
y ]f NHE last few words of the previous paragraph "when
II they get them" prompts us to write a few words
just about that. Dealers must understand that
manufacturers are doing their best to get to the point
where they can have a steady flow of production. Last fall
it looked as if they might be able to do just that. Today,
however, the picture is different. The supply situation now
is not even as good as it was then. Action plants are again
employed in making gliders and other war materiel, only
one plate manufacturer is able to operate at about 20% of
capacity, steel and copper have again been curtailed for
civilian use and the lumber situation is worse than ever.
We have had it brought to our attention that certain piano
manufacturers don't even answer letters from dealers. This
may seem discourteous, probably is, but when a dealer
THE MUSIC TRADE REVIEW, M A R C H , 1945
The
REVIEW
Established 1879
CARLETON CHACE, Editor
Alexander Hart
N. R. Rapp
Technical Editor
Associate Editor
Bet+y B. Borin
Circulation Manager
Published monthly at 510 RKO Building, Radio
City, 1270 Sixth Avenue, New York 20, N. Y.
Telephones: Cl rcle 7 - 5842 - 5843 - 5844
Vol. 104
MARCH, 1945
No. 3
it was to go into effect on February 27th, the very day it
appeared in the newspapers. This meant that manufacturers
must put price tags on their pianos that day. Naturally
having no warning they had no price tags. The announce-
ment was so vague that dealers all over the country were
thrown into a dither trying to find out where they were at.
We called the OPA in Washington and pointed out what
confusion had been caused by such a summary action
with the result that on February 28th we were advised by
telephone by E. W. Herlimann. head of the OPA pricing
division for musical instruments, that a mistake was made
in issuing the order and that in that part of the order
which read "becomes effective February 27. 1945" it
should have read "becomes effective April 1, 1915." The
telephone companies all over the country profited more
by that mistake than anyone, as dealers were calling manu-
facturers and the trade press from everywhere trying to
find out what it was all about. In view of the fact that
we were advised by the OPA that it would be some time
before the general order would be distributed we mailed
to all REVIEW subscribers a digest of the pricing and a
complete copy of the order.
Business —As We See It
OOKS as if the piano industry has, at least for some
time to come, been forced into operating on a list
price basis. According to the revised order 2525,
MPR 188, issued on February 26 by the OPA, piano
manufacturers must now place retail price tags on all
pianos shipped after April 1st. No more will the same
piano be marked one price in one
store and another price in another
store further up on Main street. No
more, also, will there be opportunity
of one dealer undercutting another
in order to make a sale. We suppose
that there will be those who will not
welcome this system but it has al-
ways seemed to us that it should
have been that way a long time ago.
Now, the opportunity has come to
give it a thorough trial and it may
Corleton Chace
be that after it has been in force some time dealers will
find that it has proved so satisfactory that it should be
continued even after the OPA goes out of existence, if it
ever does. Anyway, dealers and salesmen will now have
to be on their toes. With down payments, terms, and trade-
in problems well under control it all simmers down to
good salesmanship—and may the best man win. It will
be interesting to watch the result.
OPA Mistake Causes Confusion
ALTHOUGH the announcement of the price ceilings
/ = ^ \ on new pianos had been anticipated for several
-^- - ^ - months it came suddenly and was particularly
confusing. It was first announced in a short story in the
daily press on February 27th in which it was stated that
12
A Favorable Reaction in General
ENERALLY speaking the order was accepted
favorably. Those who sell pianos priced in the
higher brackets complained slightly until they had
analyzed the order carefully, then came to the conclusion
that it would not be so bad after all. We heard only one
complaint from a manufacturer who produces instruments
in the lower brackets who said that the new order lopped
off about 10% on two of his models and that he figured
that 99% instead of the 89%' mark-up would have been
fairer. However, this was more of a comment than a com-
plaint. Dealers, however, seem to feel that the pricing is
fair under the present conditons and above all that they
can now proceed to sell new pianos with greater confidence,
when they get them.
G
Be Fair with the
Manufacturers
y ]f NHE last few words of the previous paragraph "when
II they get them" prompts us to write a few words
just about that. Dealers must understand that
manufacturers are doing their best to get to the point
where they can have a steady flow of production. Last fall
it looked as if they might be able to do just that. Today,
however, the picture is different. The supply situation now
is not even as good as it was then. Action plants are again
employed in making gliders and other war materiel, only
one plate manufacturer is able to operate at about 20% of
capacity, steel and copper have again been curtailed for
civilian use and the lumber situation is worse than ever.
We have had it brought to our attention that certain piano
manufacturers don't even answer letters from dealers. This
may seem discourteous, probably is, but when a dealer
THE MUSIC TRADE REVIEW, M A R C H , 1945
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