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Chapter 10. Methods of Selling Instruments

This chapter describes the two very different methods used in selling violins. Prospective buyers will be able to judge the merits of each.

A. Method #1 -- "Let the Buyer Beware"

Since the ordinary buyer has no way to assess the value of a violin and, also, is mislead by the myths created and nurtured by dealers, the violin is a perfect example of a "blind item." Method #1 is the prevailing, most common sales method used today. I have called it "Let the Buyer Beware" because -- once a buyer is caught up in the world of Method #1 -- normal professional and business standards disappear; such a buyer has good reason to suspect the price he is asked to pay, and the real quality of the instrument he is getting.

Looking at the major players in, and components of, Method #1 will clarify the way it works:

The Set-up

1. The seller is the individual violin teacher, the music store, the violin maker, or the dealer. Their interest in music consists mainly in hearing the bell (or electronic beep!) of their cash registers.

2. The pusher is any third party in what most people take to be a two-party (seller-buyer) transaction. In other words, the buyer does not know that the pusher is pushing -- that he or she has a financial stake in, and expects to profit from, the sale. In addition to those listed under the heading "Basic Fact 4" (in our introductory Chapter 1) pushers can be amateur musicians, influential and prominent musicians holding positions in civic orchestras and ensembles, or professional musicians. Most professional musicians sometimes operate as pushers.

3. In most cases, the buyer is a student or amateur musician. Understandably, the buyer -- respecting the modest level of his or her own knowledge -- tends to seek advice from his teacher, or from any other "authority" who seems to know: what to buy, where to buy it, and what price is reasonable.

The Catch

In the orchestral instrument business generally, and in the violin business most especially, the "catch" is the so-called professional discount, or commission, these being dressed-up terms for the more common -- and clearer! -- words: kickback, bribe, etc. But where does this professional discount fit into the picture? and how? Consider the following:

1. Catalog prices of new trade name or National brand-name instruments, bows, strings, and accessories (the items in this category are all mass produced) include a "professional discount" which can go as high as 25%.

2. Catalog prices of new trade-name (House brand), commercially mass-produced instruments, bows, strings, and accessories . . . these prices have a built-in "professional discount" of up to 40%.

3. Sale prices of OLD trade-name, as well as NEW AND OLD master-shop and master instruments and bows, shoot to an even higher level. That is, if the sales description of the item is indeed accurate, the sale price will include a "professional discount" that can be as much as 50%.

4. The sale price of a master-shop or master instrument (new or old) -- whose sales description is not authentic! -- will also include a "professional discount" as high as 50%. In other words, the so-called professional discount may equal the instrument or bow's collector's value and/or artistic value -- making the purchase a temporarily disguised but heavy loss for the unwary buyer.

The Mode of Operation

Very often, an instrumental music educator, a violin teacher, band/orchestra director, administrator, amateur/professional violin player knows the inside workings of the music business -- and knows them well. Knowing the "inside dope," this very individual will guide a student, friend, or acquaintance to a specified dealer. When the student, friend, or acquaintance needs to purchase an instrument, bow, accessory, or repair, he's now primed to think first of the recommended dealer or seller. And, with his money, that's where he goes -- quite unaware that he has been "pushed." But, in return for the "guidance" of the musician or musical administrator, the dealer/seller credits the private account of the pusher with funds equal to the "professional discount." The scheme works effectively -- and silently. That any of this is going on, the buyer is utterly unaware.

B. Method #2 -- "Let the SELLER Beware"

This method is used exclusively by a limited number -- a very limited number -- of professional violin makers who deal in violins and bows. Of all the violins sold today, only a small number is sold by this method. While it is true that this entire volume has attempted to present objective, unbiased information, it is probably obvious that its author commends this -- method #2 -- as far superior to its opposite. Many reasons inform this judgment. However, two matters are of critical importance -- both having to do with fair play and honesty. Where the motto is "Let the Seller Beware," buyers can be sure that the purchase of a violin involves absolutely no pay-offs or bribes to third parties (and therefore no artificially inflated prices). They can be sure of something else as well. In the form of a written guarantee, this method includes an assurance to the buyer of the cash value and/or trade-in value that the instrument has to the seller.

The Method

1. The seller is almost always a violin maker and dealer. He is a maker and dealer who, for sound personal and professional reasons, will not conform to the standards of selling instruments and services which dominate method #1.

2. For these makers and dealers, advertising takes two forms. Of course they sometimes place display ads in appropriate publications, concert programs, and so on. But it is their word-of-mouth advertising that separates them most radically from method #1 practitioners. When it comes to telling others of instruments available for sale, method #2 sellers deal only with those violin teachers who are not employed by instrument vendors who provide kickbacks. Such an honorable dealer uses no pushers or secret salesmen. As a result, such a dealer often enjoys considerable "free advertising" when satisfied players -- amateur and professional -- speak glowingly to their musician friends about the above-board, honorable treatment they have been accorded.

3. The buyer who returns, again and again, to such a dealer is a quality and price conscious individual. He may be a teacher, a student, an amateur or professional musician, or even a collector. But he trusts -- and has good reason to trust -- the professional violin maker and dealer when it comes to the quality of both products and services. He finds assurance in knowing (because the method #2 dealer conceals neither facts nor judgments) exactly what value his purchased violin or bow has in the eyes of the seller.

The Warranty

The warrantees (written guarantees) vary in their contents. But a written warranty will specify some or all of the following:

1. the warranty's length (normally five years)

2. the instrument or bow's name (or, in lieu of a name, a description of the item) and the registration number of the seller, this being visible on the instrument or bow

3. the price paid for the instrument or bow

4. the instrument or bow's classification (vis-a-vis the distinctions set forth in our second chapter); the warranty will, for example, designate the object as trade-name, master-shop, or master.

5. trade-in value. The warranty states the minimum amount which the seller would allow the buyer if, for instance, the instrument or bow were given in trade against a higher priced one. In other words, the seller makes specific commitments. He obligates himself, to give an example, to allow --

-- for Trade-name instruments and bows: 67% of the original price paid
-- for Master-shop instruments and bows: 75% of the original price paid
-- for Master instruments and bows: 100% of the original price paid.

6. the instrument's cash value. The warranty will state the minimum amount that the seller would pay the buyer if the instrument or bow were, for any reason, to be returned to the seller. Master instruments and bows should bring at least 50% of the amount originally paid by the buyer.

The warranty may also state that no third party has or will receive any remuneration, commission, or finder's fee because of the sale. And it may also pledge the continuing availability, on a preferential basis, of repair-maintenance service, etc. Such a written warranty is, for obvious enough reasons, terribly important to any prudent buyer (although it is not to be confused with a certificate of authenticity or condition).

Advice to the buyer: The honorable establishments which practice method #2 may also sell National Brand-name instruments -- as well as bows, strings, and accessories -- at very favorable prices. That is, they will probably sell them to any buyer for less than catalog price. In effect, they're passing on the "professional discount" to all -- rather than reserving it as a "benefit" for hidden third parties (pushers). The method #2 businesses tend to be the best place to go for the full range of a string player's needs.

Emphatically, however, old or new master instruments and bows should be purchased from dealers committed to method #2. For only a written guarantee or warranty certifies a seller's legal obligation to allow a definite amount of money -- in cash or trade-in application -- should the buyer return the instrument.

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