Economics of rebuilding grands

[Brian Trout]

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Hi List,

Wim got me to thinking about this one.  In a post he wrote regarding the =
rebuilding (or perhaps reconditioning would be a better word, depending =
upon your perspective) of a Lester grand he wrote:

...if you are going to do this to "make" money, you're wasting your =
time.=20
You'll never be able to sell a Lester grand for the amount of time =
you've put=20
into it. You'll be lucky to recoup the materials you've used.=20


I'm curious as to what might be going on in other markets.  And I would =
suppose a lot would depend on how you would define "making money".

Let me give a couple of examples from my local area.  (Please bear in =
mind that these weren't 'learning experiences' per say, we were in it =
for the profit.  But here goes...)

Last year, I took a 5'2 no name grand, (picked up for disposal) new =
pinblock, new hammers, new dampers, new keytops/fronts, restrung, and =
refinished, and it sold about 2 months after being done for $8500+.  (I =
did a wholesale deal with a dealer.  He got the piano as it was for =
$5000, and I had no further obligation whatsoever.  He received the rest =
for a sales commission, and his obligations to the customer (warranty, a =
couple of tunings, etc.).  I kept records of my expenses.  I spent =
$761.30.  Which means if I spent 175 hours to do it, (which I didn't, =
but I'm illustrating,) for $4238.70, I earned $24.22 per hour for my =
time.  Perhaps it could be construed as not being as profitable as the =
same time spent tuning, but I'd hardly call it a waste of time.  There's =
a lot of people working at Burger King that'll never see $24.22 per =
hour.  (And I AM under-stating here.)

Also last year, the shop I work for took a Mason & Hamlin 5'8" grand =
that they picked up for disposal, gave it 'the works', as in complete =
rebuild, (new board included), and sold it for about $18,000.  They put =
in about $1600 in parts and materials, plus about 275 man hours.  That's =
a $2650 profit above and beyond the customary charge of shop labor at =
$50.00 per hour.  Again, I'd hardly call that not making any money.

Right now, also in the shop I'm working for, is a 5'8" Baldwin grand.  =
We're not finished with it yet, but the materials are estimated around =
$1500.  We're guessing it will come in at around 235 hours.  The price =
tag is somewhere in the $16,000 range (completely rebuilt), and again, =
I'd hardly call that 'not making any money'.  You can do the math.

I don't recite these examples out of hostility or vengeance, but I =
believe that telling someone that they 'can't make any money' doing =
rebuilds can be a little misleading.  I'm not saying anyone and everyone =
can do what I've been fortunate enough to do.  Some may not do as well.  =
Some may do much better.  Yes, they can be a lot of work.  Yes, your =
profits won't be so great on pianos you've spent a lot more time =
learning on, if you're considering your time at a full $40 or $50 or $60 =
per hour.  But with some experience, which you get when you do them, =
your skills improve, your efficiency improves, and your bottom line =
hopefully improves as well.

I realize that different geographic and demographic areas can be =
radically different.  This is but a sample.  It just makes me squirm a =
little when someone says there's no money to be made in...(fill in any =
subject).  Much can depend upon perspective and the approach used in =
your individual situation. =20

Just some food for thought.  No offence intended.

Brian Trout
Quarryville, PA
btrout@desupernet.net


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