[pianotech] video interview Ronald Losby, President of Steinway

[tnrwim at aol.com]

Now where is the Steinway that cost $40,000 in 1990 that sold for $120,000 and more, as the President of Steinway clearly states?  How do they get away with stating this, or what am I not understanding?




Jurgen Goering




I my opinion, there is no way Steinway can substantiate their claim. But who is going to refute it, and why should they? People who bought an instrument, like my customer, with the intent of making a profit, are too embarrassed to admit they made a mistake. Like all investment opportunities, you're advised to read the perspectives carefully, and are told that there is a certain amount of risk involved with any investment. But perhaps someone will come along one of these days and sue Steinway for this claim, just like the lady who beat Honda on the fuel consumption claim. 

Wim


 



-----Original Message-----
From: Jurgen Goering <pianoforte at pianofortesupply.com>
To: pianotech <pianotech at ptg.org>
Sent: Wed, Feb 15, 2012 7:00 am
Subject: [pianotech] video interview Ronald Losby, President of Steinway


A Steinway bought for $4500 in 1965 is "worth" about $12K - $16K in today's market (William Monroe).  Original price  was about a year's salary for someone.  45 - 50 years later (today) it is worth about half a year's salary.  
A new Steinway depreciates $7000 in the first five year (Wim Blees)
Rebuilt B: 26K (1993) to 45K in 2012, "their value doesn't drop like a stone" (Dale Erwin)


while these are mere examples, they do reflect the reality of the appreciation or depreciation that these instruments have.  None of these are examples of a "fine [financial] investment" .  I would say a fine investment would start at 5% above inflation.  At that rate, in 20 years an asset would indeed go up 3 - 4 times in value.


Now where is the Steinway that cost $40,000 in 1990 that sold for $120,000 and more, as the President of Steinway clearly states?  How do they get away with stating this, or what am I not understanding?




Jurgen Goering







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