Kawai's University program

[Michael Wathen 556-9565]

Here is a copy of something I sent a while ago to someone who was
attempting to improve there inventory through a loan program.

    University
       of      I N T E R O F F I C E   M E M O R A N D U M
    Cincinnati
                              Date:     17-Jan-1995 01:11pm EST
                              From:     Michael Wathen
                                        WATHENMJ
                              Dept:     College Conservatory of Music
                              Tel No:     556-9565

TO:  Remote Addressee                     ( pterry@bgnet.bgsu.edu@external )

Subject: RE:Kawai Loan

The Downside-

1).  There is a possibility that the institution would have too
high a ratio of loaned instruments to owned instruments. Were the
retailer or the manufacturer to decide to end the agreement
because of bankruptcy or greener marketing fields elsewhere then
you wouldn't want to get caught in an over dependent situation.
Our ratio is 25/250 or 10%.  We are currently negotiating a
purchase of some larger grands and professional uprights which
will change this ratio to 20/255.  The feeling is that we want
them to loan us the larger better quality instruments. The
retailer grunts because these instruments are harder to sell in
the sale so we purchase some of these higher end items from time
to time then ask for an upgrade of the loaners.  Along these same
lines we try not have loaner pianos in critical spaces such as
recital areas and Piano Performance Teaching Studios.  We are not
always successful.  We have had loaners in recital areas but
there was always a second instrument.

Our agreement originally was with Kawai America and when the
contract came up for renewal the Dealer convinced us to have the
contract with them.  Kawai was asking for a annual rental charge
for the loaned inventory.  The Dealer was willing to front the
inventory himself in exchange for a gentleman's agreement that we
would continue to purchase instruments at a reasonable rate.

The local dealer relationship was a key factor in the ongoing
success of the program.  They are extremely cooperative.

Finally, a good technician that can provide stable tunings is a
must.  These instruments need to be tuned at least four times a
year solely because they are new.  There are also service
problems that must be attended to on a as needed basis, such as
sticking keys and dampers.  This situation is unavoidable.  My
suggestion is that the technician you employ should be held on a
retainer rather than priced out per tuning.  You need to be able
to call this person as needed and get quick response to a
problem.

Michael Wathen
College-Conservatory of Music
University of Cincinnati