Music Trade Review
Issue: 1946 Vol. 105 N. 5 - Page 8
Music Trade Review -- © mbsi.org, arcade-museum.com -- digitized with support from namm.org
ABOUT NEW PRICES
(Continued from page 6/
orders for pianos as long as one year
ago, and expected to get delivery ot the
'old price.' We have refunded $100
cash deposits to about 50 customers for
this reason—a cancellation of approxi-
mately $25,000 worth of business. These
people want pianos, but feel that pres-
ent prices will drop with the increase
of production and natural competition
between manufacturers.
"The question regarding these can-
celled deals is whether or not these
same people will purchase 'lower priced'
pianos later on, or if they will spend
this money on some other desired mer-
chandise such as—a new car, refrig-
erator, etc.
"I do not think that present prices
for pianos and musical instruments
will be maintained when the factories
regain their normal production sched-
ules and their raw materials are back
to pre-war levels—American business
competition will adjust the price sched-
ules when the supply equals and tends
to exceed the demand."
Contrary to the above, up in the
very northern part of New England a
dealer states that there has been a
slight resistance but not enough to re-
tard sales, that there has been little
shopping around but that he expects
to have considerable selling to do when
other commodities are plentiful.
No Trouble Moving Pianos in
$500 Bracket
Another Southern dealer finds that
he has no trouble moving pianos in the
$500 bracket.
"We have not found," he said, "that
the releasing by OPA of the music
business has hurt Our business at all.
It is a little harder to sell pianos at
the increased price in the higher brack-
et, but at around $500 we have not
been having any trouble moving the
pianos. I do not believe that the people
are holding off for a break in prices;
as we believe that they know that the
high prices will run on for a while
yet. There has been a little tendency
to hesitate and look around more than
during the war period.
"We do believe, however, that when
commodities become plentiful that it
will affect the sale of musical instru-
ments at the present prices."
Would Have Lost Sales if He Had Stock
Another Western dealer says that if
he had had plenty of pianos he would
have lost a number of sales on account
of the new prices.
"We have found," he said, "consid-
erable customer resistance to the new
prices which went in effect subsequent
to March 6th—to the extent that had
8
we had plenty of pianos we would have
lost a number of sales.
"Shoppers are active; scanning the
market for items that they think are
still reasonably priced and are spend-
ing their money for those things that
appear to them as still good values.
Before March 6th a good many felt
that pianos were a good buy; since the
raise subsequent to that time they
simply shake their heads and walk out.
I am speaking now of that customer
wfto had money to spend for household
furnishings and who is nut compelled
to buy a piano on account of his chil-
dren's study. This type of potential
buyer may never get into the mood
again to buy a piano—they have the
urge to buy something now; if it is
too high they don't buy.
"The piano and musical merchan-
dise manufacturers will have to mate-
rially reduce their prices or other lines
will step in and get the business. It
just isn't in the cards for a number
of relatively new and unknown makers
to continue to get the prices that they
are getting now after competition be-
gins to get in its work and the cus-
tomer who paid from $600 to $700 for a
medium grand isn't going to be too
happy when their neighbors buys the
same thing for around $350 to $400.
Personally I think the whole industry
would have been better off if OPA had
retained its controls, made them a little
more flexible so that both the manu-
facturer and dealer could have had a
fair profit rather than have them sky-
rocket as they did and take a nose dive
as they will."
Finds Prospects Antagonistic
Another Western dealer has found
an antagonistic attitude manifested
by customers.
"We have certainly found much con-
sumer resistance and enough to retard
sales. A number of our prospects al-
most appear to be antagonistic about
it and of course the blame is not put
on the factory with them, but on our-
selves.
"Your second question, 'Do you find
that people shop around more than
usual hoping to find more moderate
prices and if they do not find them
have a tendency to hold off hoping for
a break in prices?' This is emphati-
cally true with about two-thirds of our
customers during the past month and
has prompted a number of them to
buy used pianos to get along with until
our prices are reduced.
"The third question, 'Do you think
that with piano and musical instru-
ment prices as high as they are today,
that when other outside competition
becomes acute and these commodities
are plentiful it will materially affect
the sales of musical instruments?' I
feel this so strongly that I think the
retail trade on the higher priced in-
struments will have to cut down quite
considerably or lose the sales with
about two-thirds of the prospective buy-
ers. We were hoping it would not be
necessary to resort to this procedure
as it was much overdone to be neces-
sary, that is my personal opinion. Of
course we deal in used pianos as well
as new and build MirrApianos and
refinish practically everything we sell
and do a good job, having high-pres-
sure guns and several employees in
that particular department.
"I think the fact that the govern-
ment is putting a lot of pressure to
bear in inflation and warning people
not to buy and pay exorbitant prices
for merchandise has had a good deal
to do with curtailing sales at the high
figure they must be sold at today. We
got along quite well during the war
with what we had because people ex-
pected to pay a good price for a spinet
or nice grand piano, but now they
seem to be waiting until prices are
more reasonable, even though we tell
them they are waiting in vain."
Still Taking Deposits
Another dealer manifests his confi-
dence in the future as follows:
"We have not found much consu-
mers' resistance to the new prices. We
are taking deposits on pianos on the
same basis—the Post-War Priority
Purchasing Plan—as we have used in
selling Hammond Organs in the past
year and a half to the amount of over
$130,000. (Hammond Organ business).
People that want our Pianos want our
pianos and we find that they are will-
ing to wait for them rather than ac-
cept a make with which they are not as
familiar.
"In regard to outside competition,
the American dollar regardless of its
value, can only go so far. Merchandise
such as frigidaires and stoves are
eventually going to have to be con-
sidered before pianos—but where any
commodities are not necessarily con-
tributory to the health and existence of
the human element I think the pianos
^will hold their own definitely.
Of
course the industry will have to use
intelligence in pricing, and I feel that
competition there will do the trick. No
piano can sell for 15' ..'< more than other
pianos in its class. Competitors will
take care of that.
As THE REVIEW goes to press a hasty
re-survey of the Metropolitan area
around New York discloses that a per-
ceptible falling off in business has been
experienced since the first of May, at-
tributed by many to the appearance
of many other commodities long waited
for.
THE MUSIC TRADE REVIEW, MAY, 1946
ABOUT NEW PRICES
(Continued from page 6/
orders for pianos as long as one year
ago, and expected to get delivery ot the
'old price.' We have refunded $100
cash deposits to about 50 customers for
this reason—a cancellation of approxi-
mately $25,000 worth of business. These
people want pianos, but feel that pres-
ent prices will drop with the increase
of production and natural competition
between manufacturers.
"The question regarding these can-
celled deals is whether or not these
same people will purchase 'lower priced'
pianos later on, or if they will spend
this money on some other desired mer-
chandise such as—a new car, refrig-
erator, etc.
"I do not think that present prices
for pianos and musical instruments
will be maintained when the factories
regain their normal production sched-
ules and their raw materials are back
to pre-war levels—American business
competition will adjust the price sched-
ules when the supply equals and tends
to exceed the demand."
Contrary to the above, up in the
very northern part of New England a
dealer states that there has been a
slight resistance but not enough to re-
tard sales, that there has been little
shopping around but that he expects
to have considerable selling to do when
other commodities are plentiful.
No Trouble Moving Pianos in
$500 Bracket
Another Southern dealer finds that
he has no trouble moving pianos in the
$500 bracket.
"We have not found," he said, "that
the releasing by OPA of the music
business has hurt Our business at all.
It is a little harder to sell pianos at
the increased price in the higher brack-
et, but at around $500 we have not
been having any trouble moving the
pianos. I do not believe that the people
are holding off for a break in prices;
as we believe that they know that the
high prices will run on for a while
yet. There has been a little tendency
to hesitate and look around more than
during the war period.
"We do believe, however, that when
commodities become plentiful that it
will affect the sale of musical instru-
ments at the present prices."
Would Have Lost Sales if He Had Stock
Another Western dealer says that if
he had had plenty of pianos he would
have lost a number of sales on account
of the new prices.
"We have found," he said, "consid-
erable customer resistance to the new
prices which went in effect subsequent
to March 6th—to the extent that had
8
we had plenty of pianos we would have
lost a number of sales.
"Shoppers are active; scanning the
market for items that they think are
still reasonably priced and are spend-
ing their money for those things that
appear to them as still good values.
Before March 6th a good many felt
that pianos were a good buy; since the
raise subsequent to that time they
simply shake their heads and walk out.
I am speaking now of that customer
wfto had money to spend for household
furnishings and who is nut compelled
to buy a piano on account of his chil-
dren's study. This type of potential
buyer may never get into the mood
again to buy a piano—they have the
urge to buy something now; if it is
too high they don't buy.
"The piano and musical merchan-
dise manufacturers will have to mate-
rially reduce their prices or other lines
will step in and get the business. It
just isn't in the cards for a number
of relatively new and unknown makers
to continue to get the prices that they
are getting now after competition be-
gins to get in its work and the cus-
tomer who paid from $600 to $700 for a
medium grand isn't going to be too
happy when their neighbors buys the
same thing for around $350 to $400.
Personally I think the whole industry
would have been better off if OPA had
retained its controls, made them a little
more flexible so that both the manu-
facturer and dealer could have had a
fair profit rather than have them sky-
rocket as they did and take a nose dive
as they will."
Finds Prospects Antagonistic
Another Western dealer has found
an antagonistic attitude manifested
by customers.
"We have certainly found much con-
sumer resistance and enough to retard
sales. A number of our prospects al-
most appear to be antagonistic about
it and of course the blame is not put
on the factory with them, but on our-
selves.
"Your second question, 'Do you find
that people shop around more than
usual hoping to find more moderate
prices and if they do not find them
have a tendency to hold off hoping for
a break in prices?' This is emphati-
cally true with about two-thirds of our
customers during the past month and
has prompted a number of them to
buy used pianos to get along with until
our prices are reduced.
"The third question, 'Do you think
that with piano and musical instru-
ment prices as high as they are today,
that when other outside competition
becomes acute and these commodities
are plentiful it will materially affect
the sales of musical instruments?' I
feel this so strongly that I think the
retail trade on the higher priced in-
struments will have to cut down quite
considerably or lose the sales with
about two-thirds of the prospective buy-
ers. We were hoping it would not be
necessary to resort to this procedure
as it was much overdone to be neces-
sary, that is my personal opinion. Of
course we deal in used pianos as well
as new and build MirrApianos and
refinish practically everything we sell
and do a good job, having high-pres-
sure guns and several employees in
that particular department.
"I think the fact that the govern-
ment is putting a lot of pressure to
bear in inflation and warning people
not to buy and pay exorbitant prices
for merchandise has had a good deal
to do with curtailing sales at the high
figure they must be sold at today. We
got along quite well during the war
with what we had because people ex-
pected to pay a good price for a spinet
or nice grand piano, but now they
seem to be waiting until prices are
more reasonable, even though we tell
them they are waiting in vain."
Still Taking Deposits
Another dealer manifests his confi-
dence in the future as follows:
"We have not found much consu-
mers' resistance to the new prices. We
are taking deposits on pianos on the
same basis—the Post-War Priority
Purchasing Plan—as we have used in
selling Hammond Organs in the past
year and a half to the amount of over
$130,000. (Hammond Organ business).
People that want our Pianos want our
pianos and we find that they are will-
ing to wait for them rather than ac-
cept a make with which they are not as
familiar.
"In regard to outside competition,
the American dollar regardless of its
value, can only go so far. Merchandise
such as frigidaires and stoves are
eventually going to have to be con-
sidered before pianos—but where any
commodities are not necessarily con-
tributory to the health and existence of
the human element I think the pianos
^will hold their own definitely.
Of
course the industry will have to use
intelligence in pricing, and I feel that
competition there will do the trick. No
piano can sell for 15' ..'< more than other
pianos in its class. Competitors will
take care of that.
As THE REVIEW goes to press a hasty
re-survey of the Metropolitan area
around New York discloses that a per-
ceptible falling off in business has been
experienced since the first of May, at-
tributed by many to the appearance
of many other commodities long waited
for.
THE MUSIC TRADE REVIEW, MAY, 1946
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