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Manufacturers Should Aid in Eliminating
Trade Practice Abuses Says Emert Rice
"All over the country, piano tuners,
music teachers, and others, are shipped
pianos or other instruments by manu-
facturers and jobbers who have been
cautioned again and again about the
unbusinesslike methods these retailers
use to sell. Many such dealerships have
been opened by our most prominent
manufacturers.
Usually whenever complaints are
made about such retailers, the manufac-
turer or the jobber replies that "they
have not had an opportunity to send
a representative to check." May I sug-
gest that the time to check such opera-
tions and their possibilities of success
in business would be before they are
shipped merchandise.
"Personally, I believe that piano
teachers, tuners, or anyone else have
just as much right to sell pianos or
musical instruments as I have. I have
absolutely no quarrel with those who
are in business or who wish to be. But
is it fair to them or the other dealers in
the community or to the community
itself to let them start into business
with no qualifications whatever for suc-
cess in business?
"Surely all musical instrument manu-
facturers desire to be represented by
the best and most able dealers every-
where, in every community. There are
not enough such outlets in most com-
munities to serve every manufacturer's
needs. Yet it seems particularly un-
fortunate that many manufacturers and
jobbers will, in order to be represented
in a community, often accept any avail-
able outlet regardless of ability, ethics,
experience or other qualifications. As
an example, I understand that at this
time one of our prominent piano manu-
facturers is represented in a city of
some 160,000 population by a person
who keeps two or three instruments in
his home. I further understand that
various unethical methods of selling
are used together with the fact that the
local dealers recognize that the party
apparently knows practically nothing
about a piano, being unable even to
correctly describe the major parts of the
instrument.
No Standard Price 1 ! List
"Recently a manufacturer's repre-
sentative called to solicit our business.
He stated very frankly that his factory
had no retail list price for the merchan-
dise and that we could sell it at any
16
(Continued from the April Issue
price we wished. I told him very frank-
ly that I had no respect whatever for
such a selling plan and asked him how
as a respectable dealer I could afford
to set just any price on their pianos
with the possibility that adjacent or at
least nearby dealers might choose some
entirely different price. The representa-
tive then did say that he had a suggested
price list, but it was very obvious that
no one would be expected to follow it.
Just a few week later I was talking
with a dealer from a city in Florida
where two local dealers were apparent-
ly having some rather keen competitive
problems. In addition, just before
Christmas, a music teacher moved into
the small town who also intended to go
into the piano business using the home
as a salesroom. Two lines were repre-
sented, one of them being the above
mentioned "no standard price" line.
Business was not too good with three
dealers to share it now, and the teacher
had on hand twd or three pianos, the
prices of which began to drop until
finally they were being offered at $450
each.
Surely the records do not show that
we have any advantage over our fellow
local merchants. In checking such fig-
ures I find that in the drug business the
national average profit before taxes in
1949 was 5.9%, (after taxes probably
4%+).
In the furniture business for
the same year the average profit after
taxes ranged from 4.09% to 4.92%. In
the mens wear business the average be-
fore taxes was 4.3%. In our own music
business in the year 1949 the average
profit after taxes was 2.9% for the
whole United States.
Time for Manufacturers to Act
In my opinion, now is the time for
the manufacturers and jobbers to join
in to help curb the various unfair trade
practices of our industry.
We are always ready to voice our
complaints about the many government
regulations that are and may be im-
posed upon us. Yet, let us remember
that, aside from wartime controls, gov-
ernment regulations are, in one sense,
the voice of the people requesting a
change. It seems to me well worth our
time and effort to make the changes our-
selves in our own way before we are
required to do so.
Again referring to the Federal Trade
Commission meeting of February 2.
1944. it may be interesting to report
that at that time the several manufac-
turers groups, except the Piano Manu-
facturers Association, did participate as
members of the committee.
During that meeting, the federal trade
commission pressed inclusion of a rule
to declare unethical the payment of
commissions to teachers (when the buy-
er does not have knowledge that the
teacher is acting as a salesman.) The
various rerpesentatives refused to in-
clude this rule stating that the payment
of commissions to teachers was an in-
herent part of the music business.
I believe that then or today, most of
the dealers in the country would like to
see commissions to teachers declared an
unethical trade practice for the best in-
terests of all concerned.
It is of further interest to know that
again today the Federal Trade Commis-
sion is asking for a meeting to discuss
making the payment of commissions to
teachers an unfair trade practice.
Joan Gelled Is Married
To Lieutenant E. T. Krug
Miss Joan Marie Gettell daughter of
Mr. and Mrs. John Howes Getlell of
Orienta Point Apartments. Mamaro-
neck, was married recently to Lt. Ed-
ward Thatcher Krug, USAF. son of
Mrs. Henry Annable of Scotia, N. Y.
and the late George Krug of Troy.
The 2:30 p.m. ceremony took place
in St. Thomas's Church with the Rev.
Arnold A. Fenton, officiating, and a re-
ception followed at the Larchmont
Shore Club.
Given in marriage by her father, who
is vice president and salesmanager of
Winter & Co. New York, the bride was
attended by the Misses Barbara Deverill
of Tarrytown and Audrey Latu of Ten-
afly, N. J. Mr. Annable was best man
for Lt. Krug.
The couple will reside temporarily in
Kinston, N. C. where the bridegroom is
stationed. Mrs. Krug, an alumna of the
Barnard School for Girls in New York
and Cazenovia Junior College, is a sen-
ior in the Physical Therapy Department
of the College of Physicians and Sur-
geons of Columbia University.
Her husband was graduated from
Colgate University in 1951, receiving
his commission as second lieutenant as
a member of the ROTC.
THE MUSIC TRADE REVIEW, MAY, 1952