grey market?

Mark Bolsius markbolsius@optusnet.com.au
Tue, 04 May 1999 22:45:29 +1000


John posted a great FAQ list on grey pianos.

If you're out there John, what was the source? There are some fairly big
assumptions  and statements made, if they are accurate, I'd like to use and
quote them, knowing the source will help me justify the statement I intend
to make.

We have a similar market here in Australia, the gradings seem to all be A+
though despite huge variations in quality.

Thanks 
Mark Bolsius
----------
From: JCCORDOGAN@AOL.COM
To: pianotech@ptg.org
Subject: Re: grey market?
Date: Tue, 4 May 1999 5:33 PM


This is the most thorough and accurate explanation of bootleg/gray market 
pianos I've ever seen.  --John

FAQ'S ABOUT "GRAY  MARKET" OR "BOOTLEG"
JAPANESE PIANOS

Q: "What are bootleg pianos?"

A: Bootleg pianos are pianos that are transshipped into a geographic 
region other than the one for which the piano was specifically designed and 
manufactured.

Q: "Why are they in the United States?"

A: Because there is a great demand in this country for used, 
Japanese-made pianos, while there is an almost non- existent availability of

legitimate, U.S.-used Japanese pianos.

Q: "How do they get here?"

A: It started about 10-12 years ago as an experiment in getting rid of 
excess inventories in Japan.  Most of them are shipped in by companies that 
had previously been in the business of importing other Japanese products.  
Bootlegging has gained in popularity as the Kawai and Yamaha names have 
become the brands of choice.

Q: "Why are there so many of them available overseas when I can't find 
any here?"

A: Well, first of all it is important to understand that "overseas" 
refers specifically to Japan.  This distinction is made because for many, 
many decades, Kawai and Yamaha have dominated the Japanese market with 
virtually no competition from competing nations or manufacturers.  
Conversely, Kawai and Yamaha pianos have only been sold in the U.S. since
the 
early sixties with a tremendous amount domestic and foreign competition.  It

stands to reason that far more Kawai and Yamaha pianos are bound to become 
available in Japan with the kinds of numbers they have produced through the 
years in Japan..  Other contributors to the glut of used Kawai and Yamaha 
pianos available in Japan include:
  1) . . . the resistance to buying a used piano in Japan 
by Japanese families.  Unlike in other areas, the selection and purchase of
a 
family piano is one of the most vital purchases a Japanese family makes -- 
far too important to condescend to buying a used one.
  2) . . . damaged pianos.  If selling a used piano to a 
Japanese family is difficult, try selling a damaged one.  While Americans 
might welcome these discounts, Japanese families often don't consider it an 
option.
  3) . . . trading up.  Their success with and dedication 
to musical studies as a country is far greater than almost anywhere in the 
world which leads to more trade ups, even if it requires dedicating more 
space in their small homes than most Americans would ever consider
allocating 
in their living rooms.
  4) . . . universities.  Unlike in the U.S., practice 
rooms in Japanese conservatories are open 24 hours a day, seven days a week.
 
The fierce competition amongst the students along with the limited number of

practice rooms available require the practice pianos to be used up to 24 
hours a day, seven days a week.  This kind of wear is exponentially greater 
than a residentially-used piano.  These pianos get traded in every five to 
ten years for identical new ones.  This process keeps the university's 
maintenance down and also helps in the recruiting of new students (with the 
promise of there being new pianos in the practice rooms).
 There are few takers for these pianos in Japan, despite the efforts 
to sell them by reducing their costs to a fraction of a new one.  So they
get 
a makeover and get shipped to a market where they can be sold more easily --

the U.S.

Q: "Who buys them?"

A: Most often it is the piano stores who are not Kawai or Yamaha 
dealers.  Kawai and Yamaha are powerful names in the marketplace who 
represent a large portion of all new pianos sold in the U.S.  The standards 
by which Kawai and Yamaha use to determine who is granted a dealership
limits 
the number of candidates out there.  Since it is difficult for a piano store

to attract customers into their showroom without the promise of having one
of 
 these brands available, bootlegged pianos become attractive to these 
dealers.  Compounding this, the availability of legitimate, used Kawai and 
Yamaha pianos is so scarce that competing dealers are almost forced to carry

bootleg pianos -- even if their business ethics might have encouraged 
otherwise.

Q: "Why don't I want one?"

A: It is important to realize that by purchasing a bootlegged piano, you 
are not buying the same quality instrument that a new Kawai or Yamaha would 
offer, for half the price.  Technological advancements and dedication to 
quality have continued to improve Japanese pianos to reach new levels in 
musicality and durability.  You are also not buying the same quality 
instrument as if you would have purchased a legitimate, U.S.-destined Kawai 
or Yamaha, on account of construction differences and due to the likelihood 
of greater wear and tear, depending on the environment from which the 
instrument came.

Q: How are they different?"

A: For starters, the pianos that are coming in from Japan were 
specifically designed and manufactured for use in Japan's  own domestic 
market/climate.  Pianos are extremely environmentally-sensitive instruments 
and in many cases are not capable providing trouble-free service once
shipped 
into a geographic region other than the one for which it was designed.

 The wood that is used for the soundboards, rims, pin blocks, actions 
and other case parts is specifically dried down to 5% moisture content in
the 
pianos that are destined for anywhere outside Japan or Hawaii.  Pianos 
designated specifically for Japan or Hawaii are only dried down to 22% 
moisture content -- a significantly shorter kiln time, thus a great cost 
savings.  Japan and Hawaii are the only two markets where Kawai and Yamaha 
can be certain their pianos will exist in significant levels of year-round 
humidity, therefore they can forego the additional costly drying time that 
would be needed for all other markets.  The 5% moisture content pianos are 
suitable for all other regions including areas as dry as the Arizona
deserts.

 The effects of improperly seasoned wood are certainly not limited to 
pianos; however their effects are often far more profound and critical on 
pianos than on say, furniture.  Most wooden products don't have the need to 
be, nor the luxury of being, kiln dried.  There is no other product that is 
required to withstand 40-60,000 pounds of constant pressure while allowing 
many of its 10,000 parts to move within 1/1000ths of an inch to each other. 

When tolerances like these are disturbed, the problems can grow from 
ill-fitting and warped case parts, to intermittent buzzes, squeaks and 
rattles, to cracked or separated soundboards, bridges, pin blocks, and rims.

 You should also be aware that many of these pianos have been 
reconditioned or rebuilt and/or refinished or touched up.  

Q: "But the dealer said he will guarantee it for many years . . . "

A: Of course there will be a warranty offered, but you will never know 
the extent of the warranty until an expensive repair is needed -- a pretty 
risky endeavor for such a large purchase.  Any warranty offered is coming 
from the dealer, not the manufacturer, regardless of the age of the piano.  
The fact that the dealer knows the potential hazards of these pianos yet 
continues to offer them should be the first clue as to the extent of the 
warranty.  Furthermore, many of the repairs would constitute an entire 
rebuild or refinish job in order to match the standards of the original 
craftsmanship.  Cosmetic repairs such as repairing a bubbled or cracked 
veneer are especially challenging, considering that there are strict 
governmental regulations against the spraying of polyester in the U.S.  
(Polyester is the durable material responsible for the glass-like finish 
found on Japanese pianos -- much unlike the lacquers used on American 
products.)

Q: "The dealer said it was traded in to him . . . "

A: . . . or that it was bought from an estate sale or a little old lady 
. . . anything besides the less-appealing truth.  It is unlawful for the 
dealer to misrepresent where the piano came from, yet this frequently occurs

because the dealer certainly doesn't want to tell you it came from a
Japanese 
conservatory -- that is if he even knows where or how it was used in Japan. 

It is more likely that you will here a story about how the piano was traded 
in to the dealer for whatever reason or that they purchased it privately 
(thus limiting his liability to have known its prior history in case its 
origin is discovered ex post facto).  The idea of asking the dealer to 
produce a proof of origin is futile, because any dealer who is going to
carry 
these instruments, might not hesitate fabricating an invoice showing a 
favorable background.

Q: "How do I know if the piano I'm looking at is a bootleg?"

A: For starters, if the instrument in question is a two pedal piano, it 
is almost a dead giveaway it came from the Japanese domestic market, as 
Kawais and Yamahas sold in the U.S. for the past 30 thirty years have had 
three pedals.  That does not mean, however, that a three pedal piano is 
immune from being a bootleg.  The endless faxes and e-mails U.S. dealers 
receive listing the serial numbers of available bootleg pianos often show a 
column titled "number of pedals", geared toward the dealers whose customers 
erroneously believe that three pedal units are "safe".  Additionally, if the

piano in question is coming from a dealer who does not have the Kawai or 
Yamaha dealership in their area, that is also a sign of a bootleg, as these 
dealers have continuous access to "the real thing" and are less likely to 
jeopardize their reputation with these questionable products.

Final word of caution:

Bootlegged Japanese pianos are available to any dealer who wants them in the

U.S. at prices no different from one another.  Dealers with high standards 
typically stay far away from them for many reasons -- not just because of
the 
questionable longevity of the pianos.  The manner in which these pianos are 
gathered abroad, bought and sold, and distributed is undesirable to say the 
least.  One of the columns in the above-mentioned e-mails and faxes received

by dealers citing availability is titled "Grade", as in "B+", "A-" or worse 
yet "C" or "D".

Such whimsical lettering is the primary means by which tens of thousands of 
dollars change hands.  Importers and resellers of these pianos are often 
buying these instruments sight unseen, from this "grade" scale that has no 
international or common standard.  If you have any question as to the 
potential dilemmas and horrors that can be introduced by a wholesaler 
purchasing sight unseen from abroad, let alone a reseller and subsequent 
merchant and (heaven forbid) end- user purchasing the same piano sight 
unseen, please consult qualified piano technicians (preferably Piano 
Technician Guild certified) to gain some insight.  There is an adage in the 
piano world that "the more severe a problem, the less likely a layperson or 
even a player can detect it"..  If the price sounds too good to be true 
(meaning significantly under market value for other similar used pianos), it

probably is.




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