Highly cogent, if humbling. Thank you, Mike Wagner Acrylikey, in behalf of my beloved, but sadly deceased bro. > Steve > Brilliantly stated. Well done! > Tom Servinsky > ----- Original Message ----- > From: "Steve Brooks" <smbrooks at sprynet.com> > To: <pianotech at ptg.org> > Sent: Wednesday, February 13, 2008 6:37 PM > Subject: Why the plumber can charge more ... > > >>I can't help you guys with piano tuning or rebuilding, but perhaps I can >>lend some insight into the price of a piano tuning ...economic analysis >> is >>my beat. >> >> /For the average home-owner, piano tuning is not seen as a "vital" >> service, >> in the way that fixing a faulty domestic appliance or service is. If >> the >> gas or electric stove is bust, it has to be fixed, or no dinner that >> night. If a drain is blocked, it has to be unblocked. So the persons >> doing those jobs can afford to charge a hefty call-out fee and in >> addition >> a substantial hourly (or even quarter-hourly) rate - even though fixing >> the stove may mean a very low-skilled part replacement. - David >> >> /*It all boils down to supply and demand ...* >> >> Supply and demand for tuning will be equal at some market clearing price >> (your fee). David addresses the demand side of the supply/demand >> equality. >> All of the services he uses in his example are relatively unregulated, >> open markets and all are free to seek their efficient market clearing >> price (their fees). Without price fixing, unions, government regulation >> and other means of market coercion you can only charge what the market >> will bear. As piano techs, you aren't just competing among yourselves, >> you >> are competing with everything else the consumer can spend his money on. >> >> Demand for your services depends on a concept called marginal *utility*. >> Let's just call it utility. In each of David's examples the repair has >> high utility - the buyer wants uninterrupted access to food, sewer >> service, electricity or for that matter, television, weather protection, >> heat and air conditioning and so on. The consumer must allocate his >> limited funds according to the utility of each offering. For the average >> home owner, the utility of having his piano tuned falls well below that >> of >> David's competitive examples. (However, a well tuned piano has high >> utility for a concert, recording studio and for some private owners. So, >> no, pianos will not disappear from the music scene for lack of tuning.) >> >> *Urgency boosts utility.* Water has a certain utility in daily use for >> bathing, washing etc. but if your house is on fire the utility of water >> is >> worth rather more to you and one will pay considerably more per gallon >> for >> its use. For your services, there really is no urgency - an out of tune >> piano is an annoyance, not a problem in most cases. >> >> *Why there is a limit to what you can charge - *the supply of piano >> tuners. >> >> The supply side of the equation is rather more interesting, I think. It >> takes great skill to do what you folks do, so it is tempting to conclude >> that the skill should be compensated commensurate with the effort >> required >> to obtain it. But, in a free market ... that just ain't so. Given a >> certain level of demand, compensation depends on how many of you there >> are. How many musicians do you know who are extremely talented and >> skilled >> who are starving? How many of you crossed over from playing to tuning to >> improve your income? What do you have in common with most musicians, >> artists and writers? In a word, lifestyle. >> * >> The supply of piano tuners is ample* because of the attractiveness of >> the >> profession. The work is clean, often interesting, infinitely >> challenging, >> and for many provides the freedom of being in business for yourself >> (regardless how it seems at times). Most of you are well and broadly >> educated, interesting conversationalists and often social. Your >> profession >> provides association with other similar personalities. >> >> Most of you could choose to be almost anything you wanted. Many have >> given >> up better paying careers to become tuner/techs. In David's example - >> plumbers, appliance repair persons, electricians, auto mechanics or a >> host >> of other trades pay better (for the business owner at least) and are >> easier to practice (a plumber never has to explain why his services are >> needed). You don't choose to do that because that kind of work is dull, >> dirty, loses its challenge early and lacks prestige. Maybe you don't >> like >> punching a clock. >> >> *Lifestyle*, that's why you tune. There are always exceptions. From an >> economists point of view, you get a lot of your compensation in the form >> of intangibles ... lifestyle. Choosing this profession involves a lot >> more >> than maximizing your income, yes? >> >> To summarize: *You are in a profession whose product has low utility and >> the supply of piano tuners is ample*. So, the market clearing price of >> your services is lower than it would be in other professions for which a >> similar amount of effort is required to gain proficiency. That the >> average >> customer wouldn't know a good tuning from a rutabaga doesn't help and >> allows competitors with poorer skills to compete at a competitive price. >> This has to be the most galling aspect of the craft. >> **Bonus: **This same analysis can tell you whether or not you should >> invest in Yellow Page advertising. I've seen that come up on this list a >> few times. >> >> *Yellow Pages or Not?* The short answer is no, nothing beyond a one line >> listing. The investment of your resources will pay better dividends >> elsewhere - here's why: >> >> Back to consumer urgency. Unless you already have a service provider you >> like, you will quickly find yourself thumbing through the phone book >> under >> plumbers, electricians, sewer service or appliance repair. But, if >> things >> are less urgent, you'll shop a little longer and have more sources of >> information for roofers, painters, small engine repair - you get the >> picture. You might call your insurance agent, a friend or another >> tradesman for a recommendation. >> Unlike *searching for plumbers* when your toilet stopped tight, one can >> afford to leisurely shop for a piano tuner/tech. A broken string or >> howling unison can be tolerated if not enjoyed. You are likely to seek >> the >> advice of other pianists, distant tuners, music departments, music >> stores >> and music teachers. So, your time (which is money) is best spent >> building >> a network of referrers. >> >> Respectfully, >> >> Steve Lookerson >> >> -- >> "The masses have never thirsted after truth. Whoever can supply them >> with >> illusions is easily their master; whoever attempts to destroy their >> illusions is always their victim." Gustave Le Bon from his 1896 book >> "The >> Crowd" >> > >
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