Klarinet Archive - Posting 000410.txt from 1999/07

From: Jack Kissinger <kissingerjn@-----.EDU>
Subj: Re: [kl] Buffet E 11
Date: Thu, 15 Jul 1999 01:14:27 -0400

Bill Hausmann wrote:

> Just jumping in to defend us music stores. We SELL instruments at
> substantial discounts, but our rentals are based upon list price, although
> with no interest over the three year contract, and discounts for early
> payoff. You have to make some money SOMEWHERE! Our rental contracts
> include maintenance coverage (also available on purchased instruments).
> The tenon rebuild WOULD be covered on a rental or maintenance contract. On
> any purchase, we probably would replace that loose pad or cork at no
> charge. But, unless you bought the maintenance contract, the tenon is not
> our responsibility. Would you expect your car dealer to fix your car free
> if you wrecked it after a month?

IMHO, there is no need to defend stores that provide service concomitant with the
price they charge and I tried, in my previous message, to indicate that such
stores do exist. As I think about it, I think you are right that the list price
figure I originally quoted was a one-year rent-to-own price. (The term of
contracts around here.) If my memory serves, the discount for paying cash was
somewhere in the vicinity of 10% - 12% (the cash price was around $575 - $585).
That means the effective implicit interest rate was between 11% and 13%. While
this might seem high as a straight interest rate, because (as Bill points out) it
includes insurance, I actually think that our stores are actually reasonable in
their finance charges.

The fact is, however, that their cash purchase price is still more than $200 over
the mail-order price and I haven't seen anything to convince me that, for people
who want to purchase an instrument, there is any service provided beyond that
provided by the mail-order places. This is my perception of the state of
affairs in St. Louis. I know, however, that it is not a universal condition. I
have lived other places where the situation was quite different. The point I was
trying to make was that, probably 99 times out of 100, a parent in our school
district would be better off economically to buy from a mail-order house and put
the savings in the bank to use for any repairs that may become necessary. I did
not intend to imply that I thought a store should be responsible for replacing
the broken tenon in my example. After all, the store didn't drop the
instrument. The point I was trying to make was that, someone who saved $200 on
the purchase price of their instrument could pay for such a repair and still be
ahead of the game. (And this would still be true even if the store WOULD replace
the tenon for their customers at no cost.)

In this thread, the primary rationale I am seeing for paying higher, prices at a
local music store is the additional service such a store can and does provide.
That service can include setup work, "free" repair, the ability to play-test a
variety of equipment before making a choice, an outstanding repair facility and
perhaps other services I am overlooking. Around St. Louis, I'm hard-pressed to
see what those services are. Set-up work appears nonexistent (unless the buyer
knows enough to demand it before making the purchase), the variety of equipment
at our local stores is quite limited and the repair shops are average. I can't
comment on the extent of "free" repair work because I have not observed it but I
doubt it extends beyond fixing problems the instrument had prior to the sale and
the occasional odd minor repair/adjustment. About the only thing I can come up
with (again for our area) is that buying from one of the local stores saves the
parent from the need to take time to find out that the mail-order stores exist.
Maybe that's worth $200 to some people. (In which case, perhaps I should offer
to educate them for $100. Let's see, at band instrument night, I could set up a
table with a sign that says, "Before you rent/buy your instrument, see me. I
will tell you how to save $200." Then, for $100, I could give them the phone
number of the Woodwind and Brasswind -- or whatever mail-order house offered to
pay me the highest commission. Now THAT would be service. ;^) )

Best regards,
Jack Kissinger
St. Louis

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