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INDUSTRY
SCAMS:
As adopted and published by members of NAMM:
WARNING!
University, College, Concert Centre/Hall;
Conference Centre …. Piano Liquidation...or
is it?
Piano sales have been experiencing recent
resurgence of sorts. However, during the
past decade or more, piano sales ARE NOT
SURGING. The sale numbers are steady, and
modest. Our Industry is rather small. This
has forced piano manufacturers and retailers
to come up with more aggressive and
"innovative?" methods to market pianos. One
might think this would work to the
customer's advantage. WRONG! Rather, what
has happened is a nationwide epidemic of
piano sales scams and promotions that are
grossly misleading and deceptive! These
"sales events" combine deceptive
advertising, inflated pricing and high
pressure selling tactics, teetering on the
edge of legality in many states!
Some piano manufacturers, along with
their local dealers, are promoting "piano
sales" off premises under the guise of what
are called University, College, Concert Hall
or Conference Centre - Piano Liquidation
Sales.
It Happens Right Here at Home – an example
from Wisconsin:
You need not look any further than our own
local market for examples of these events.
For number of years, annual "piano sales" at
the Dane County Coliseum were conducted by a
major American piano company, in conjunction
with their local Madison dealer. Advertising
for these events made it appear as though
major manufacturers were represented,
including Baldwin, Steinway, Yamaha, Kawai,
Kimball, Wurlitzer and others. Huge
selections were supposed to be available. At
two of these functions, we found one used
Kimball and one used Yamaha, along with
approximately 150 new Baldwins! No other
manufacturers were present! Only Baldwin and
the sales staff of the local dealer.
Furthermore, local dealer identification did
not appear in any of the advertising as
required by Wisconsin State law. Price
savings claims were based on nonexistent,
grossly inflated retails.
Sales of Many Faces
College and University "Liquidation
Sales" are the latest in what many consider
to be the most deceptive and misleading
promotions plaguing the piano industry!
Here's how they work:
A major Japanese
piano company, along with their local
dealership in a specific area, loan a few
new pianos to the resident College or
University. This is done for little or no
fee, other than perhaps a small charge to
cover moving costs. A "memorandum of
understanding" is signed. "PC" terminology
for a contract. This contract gives the
manufacturer and their local dealer the
right to use the institution's name in its
advertising. The campus grounds and
buildings are used to conduct the actual
sale and house the additional inventory of
pianos trucked in for the promotion.
The advertising for
these events clearly suggests that the
College or University is selling off their
pianos at low, discounted prices. Again, in
most instances, no dealer ID is used. If the
dealer name does appear, it may say
something like, "sale conducted by..." in
small print buried somewhere within the body
of the advertisement. This suggests that the
dealer is there only as a liaison to assist
in the sale and delivery of the
institution's pianos. The ads also imply
availability of a number of well known brand
names, when in fact only one or two used
pianos of the brands listed may be
available.
As far as the
number of pianos actually on loan to the
College or University as practice or concert
pianos? It may be as few as two or three.
Indeed, the piano company and their dealers
are using the respected name of both public
and private institutions to entice piano
shoppers and increase profits by selling
their own inventory of new and used pianos,
not the institution's!
What's really happening here is not a
College or University piano sale at all but
rather an elaborate dealer promotion in
disguise. Upon closer examination, you will
find that the "fantastic savings" claimed at
these events are nonexistent. "Sale" prices
may actually be higher than the price
offered at a typical sale in the music
store!
Don't Be Fooled!
Making a
promotion appear as though there is no
dealer involvement may give the false
impression of a "once in a lifetime"
opportunity. Selling off premises and
keeping the dealer name as inconspicuous as
possible are means by which to accomplish
this deception. If there is no intent to
deceive, would it not be easier for the
dealer to pick up the institution's pianos
and sell them as school pianos off their
sales floor? Would the effect be the same?
So what actually takes place at these sales?
How do they work?
Pressure!
To experience one of these sales first hand
is to have the meaning of "hard sell"
defined. At larger events, a team of "in
your face" marketing "sharks"
are flown in to assist the local sales
staff. You will not be permitted to browse.
You will be met at the door and asked to
sign in with arrival time, name, address and
telephone number. These, and a host other
questions are to be completed before being
escorted to the "viewing area". Once inside,
the real pressure begins. An atmosphere
of urgency is created. Grab that piano
"today" or "...you'll never get a deal like
this again". From on the spot financing
to delivery trucks waiting at the front
door, every attempt is made to discourage
further shopping and get you to sign the
dotted line! Some have described feeling
like a "mackerel in a school of hungry
sharks". Others are able to brush it off
as a "learning experience", wisely deciding
on another time and another dealer to make
their piano purchase.
What Can be Done? Example from the State of
Kansas, USA
The State of Kansas Attorney
General's Office found advertisements for a
"College Piano Sale" misleading, agreeing
with a consumer complaint. The customer
stated "... the newspaper ad led me to
believe that the college music department
was liquidating its' pianos in order to
replace them with new instruments." The
Better Business Bureau of Ohio found that
many of the ads did not comply with BBB
standards. Regional offices nationwide have
been alerted to watch for this type of
advertising.
After numerous deceptive piano sales were
held at the Dane County Coliseum and one at
Edgewood College, the Wisconsin Department
of Justice: Consumer Protection Division
took action against one of Madison's local
piano dealers for apparent violations of
Wisconsin's Fraudulent Representations Law.
Any future violations of Wisconsin law may
result in prosecution.
It is unfortunate
that these tactics are
used to sell pianos. They do nothing but
damage the integrity of the piano business
and make it more difficult for honest,
ethical piano dealers to be successful.
Because of the relatively small size of the
piano industry, these types of misleading
and deceptive promotions can go on largely
unnoticed by the authorities put in place to
keep such deception in check. Whatever
happened to the age old method of selling
that emphasizes product quality, dealer
service and customer satisfaction?
Since making
Industry scams part of our web presence
we
received numerous comments from public
regarding these promotions. When combated by
fore knowledge of how these scams work,
along with the powers of common sense, piano
sales of this type are destined to failure.
A savvy, well informed consumer will see
through the deception and elect to buy their
piano from a company that exudes honesty and
integrity.
We hope you find the points written to be
of value to you and invite you to contact us
@
info@pianoteam.com
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