OT

[Jeff Tanner]

>FYI
>One of my customers tells me that there is an article in May 2003 issue of
>Smartmoney Magazine on pianos as investments, Renner action parts, etc.
>
>Lance Lafargue, RPT


I went and found a copy of the magazine and purchased it so I could read
the article.  I found the information there shallow and non comprehensive.
It is more really, of a slanted buyer's guide than an article on pianos as
an investment.  The writer apparently visited a New York dealership and
took advice from the owner - who was no less than selling his piano brands.
The article made no mention of American piano makers other than Steinway,
nor was there any mention the Korean (or Chinese) corner of the market, and
only mentioned two European makes: Petrof and Fazioli.  Obviously, the
dealer the writer used as his reference was a dealer of Yamaha, Kawai,
Petrof and Fazioli, and the information was slanted somewhat against his
competitors.

The article repeatedly mentioned that the Steinway piano was not
necessarily the best investment, but did not bring out that an investment
in a Steinway grand (and other high-end makes) has historically rivaled
that of real estate investments.  It stated that pianos will generally
depreciate, "apart from some Steinways".  It has been my experience that
this is not so true.  Steinway pianos which sold new for $5000 or less
30-35 years ago are now worth about 3 times that in an unrefurbished
condition, and perhaps 5 to 7 times if rebuilt.  (the article even pointed
out that a "refurbished 1917 5-foot 7inch Steinway grand might cost you
$35,000" but failed to relate that to the investment value that piano
produced.

Now, I'm first to admit that I am not involved in the current piano market,
but I try to stay somewhat abreast of the value of instruments.  That said,
even my limited exposure over the years has revealed to me that most good
quality grands will at worse hold their original purchase price value, even
in a relatively unkept state.  Agreed, the time value of money contributes
to a very slow real depreciation of average makes - but nothing compared to
that of automobiles or manufactured housing (mobile homes).

The article goes on to use an example that "a 10-year-old Yamaha 48-inch
upright, for instance, might retail for 65 percent of its new market value.
So if the new piano costs $7,790, you might pay around $5000 for a used
one."  But they don't tell you that that 10-year-old Yamaha likely cost
less than $5000 10 years ago.

Surely, a vertical piano doesn't maintain the same investment value over
the long term as a grand, but over a 10-15 year period, should at worst
hold its value - at least long enough to learn whether or not Junior is
going to make it to Carnegie Hall.

One thing I was particularly disappointed in with the article, is that if
this is to be considered a buyer's guide, it did not point out that each of
the most well known manufacturers generally offers three grades of pianos.
And while Baldwin and Steinway stamp a different brand name on each grade,
Yamaha and Kawai do not.  So, an uninformed buyer might go into a Yamaha
dealership, for example, having been advised by the owner of a C5 that a
Yamaha is a good piano, and come out with a GP1, believing they have
purchased a piano of equal quality.

At least the PTG got a plug, however.  It mentioned that if shopping for a
piano on Ebay (or other internet sales sites), that it was a good idea to
have a piano "inspected" before you buy it, and that "the Piano Technicians
Guild provides a list of qualified inspectors, as well as links to other
sale sites" via its web site.

That's my review.
Jeff

>Mandeville, LA
>New Orleans Chapter, PTG
>lancelafargue@bellsouth.net
>985.72P.IANO
>
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