If this post made it over the server last week then please disregard. Everyone, The subject of "loans" of pianos by manufacturers to universities has been an ongoing topic of discussion for some time. While talking with a factory sales rep recently I received some further news which I feel should be passed on to those assisting in the decision making process. The instruments which manufacturers loan to the institutions must be sold at the end of the rotation period. (Usually nine months.) The reason for this is that the manufacturer is paying the interest no these instruments for this period of time. At the end of the period, the instruments must be liquidated to provide cash flow for the manufacturer and the dealer. This liquidation process is carried out by holding a "University Piano Sale." While this format has been sucessful for several years, the effectiveness of the drawing card seems to be diminishing. The interest of the public in this particular gimic and their willingness to part with their money has been dropping dramatically in several major markets (as was reported to me.) Quite simply, from a business standpoint, the manufacturers can not afford to continue providing huge numbers of instruments if they receive no return on their investment. I'm sure we can all appreciate this from a cash flow perspective. In the mean time, several institutions have been opting for purchase or lease plans rather than loan programs. The University of South Carolina, for example, has just recently purchased close to $1million worth of instruments after getting out of a loan program. These were some eye opening pieces of information to me which do not require a lot of interpretation to see the direction in which things are heading. I hope that this info is of use to some of you out there. Sincerely, Allan Gilreath Gilreath Piano & Organ Co. Berry College Gilreath@aol.com
This PTG archive page provided courtesy of Moy Piano Service, LLC