market value

[Jonathan Finger]

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As Wim said, most pianos double in price every ten years.

But in terms of ROI, no piano is a good investment.  A dealer, who is
able to get them at their best price, should get the best return on the
instrument.  But after the cost of doing business, even with his own
money put into it, he's only getting about 5% ROI.  A dealer would do
much better purchasing real estate, or investing in mutual funds
(Blech!).

 

My point is, many salespeople sell pianos as "an investment".   Sure if
your child learns to appreciate music, you've gained something from your
piano.  But in financial terms, you don't make money on a piano, and if
you do, the rate of return is horrible.  

 

The guy should've been happy that he was able to get out of his piano
what he had paid for it 10 years earlier!  I would be ecstatic if I
could buy a BMW 760i now, and sell it in 10 years for the same price I
purchased it.  

 

And before someone mentions it, yes there IS a 760 BMW :-)  it's even
sold here in the U.S. ..   430 HP of pure joy  ..  And if you wait 10
years, they'll probably only cost as much as a German piano! :-)

 

Jonathan Finger RPT

 

-----Original Message-----
From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org] On
Behalf Of Wimblees@aol.com
Sent: Sunday, April 20, 2003 2:34 PM
To: pianotech@ptg.org
Subject: Re: market value

 

In a message dated 4/19/03 8:03:39 PM Central Daylight Time,
mfarrel2@tampabay.rr.com writes:




I was under the impression that Steinways appreciated in value. What did
the D cost in 1970?

Terry Farrell



If you look at Steinway's web site, they say it is a good investment,
arguing that the value of a D, (or any model), bought now is 2 times
more than it cost 10 years ago. Well, that might sound like they pianos
appreciate in value, but if you look in the Ascot Book from 10 years
ago, and compare the MSRP of all the pianos to what the MSRP's are now,
and you'll discover that ALL pianos are twice as expensive today as they
were 10 years ago. It's a sales ploy that quite frankly, as much as I
like Steinways, stinks. It is very misleading, and to some customers,
very confusing Case in point.

About 3 years ago I was asked to appraise a 10 year old S&S S for a
customer. When I told him it was wroth at most $20,000, he was shocked.
He had bought it 10 years earlier for $20,000, and were selling new for
about $36,000. He was lead to believe by the salesman that Steinways
appreciate 100 percent in 10 years. So he plunked down $20,000, in the
hopes of doubling his money in 10 years. He was mad at me for telling
him he had been mislead. 

Wim 


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