Terry, Maybe the Forbes quote would have been more accurate if it said, "the retail price of a new Steinway concert grand is now 200% of what it was ten years ago." I could believe that. For what it's worth: A local school bought a new Steinway B (complete with Teflon bushings) in 1979 for $11,000 (list price was $14,000). The price in the Fall-Winter 2000-2001 issue of the Ancott subscription puts the current price at $53,900. As far as investments go, if one would have invested that $11,000 in the stock market 22 years ago (in 1979) and averaged 10% increase per year, s/he would now have $89,543 (taxes not figured in either example here). I can easily understand how one might buy a fine Steinway for its musical qualities. I also believe that a new Steinway will hold its value better than nearly all other new pianos. But strictly as an investment, I would put my money somewhere else. I'm glad you're feeling better. <G> Regards, Clyde Farrell wrote: > Be forewarned - an element of rant follows: > > I am truly confused. The marketing department at Steinway and Sons have an > interesting web page that "explains" the investment value of their pianos. > It can be found at: > > http://www.steinway.com/html/showroom/invest.html > > It seems they leave out a few details in their examples. I am simply trying > to understand what exactly they are saying. (Oh, OK, a little venting also!) > > "According to Forbes, over the past ten years, the retail value of a > Steinway concert grand has appreciated nearly 200%." > > What does THAT mean? The price of a D has doubled? What did a D cost in > 1986? If I bought a new D in 1986 for $70,000 I should expect to get > $140,000 for the same piano in 1996? (I don't think so.) Would it be OK to > have played it over the last ten years? What on earth does this mean? I know > it is the American way to mislead, but is it OK to outright lie in Marketing > material? > > "The fact is, the appreciation of Steinway pianos is even more impressive > when you look past the previous ten years - and take an historical look at > appreciation over the past few decades. The numbers are nothing less than > remarkable: Today, if the owner of a vintage Steinway grand decided to gauge > the value of his or her piano on the open market, it is likely that the > piano would command a price 4.3 times higher than the original retail cost." > > The little chart provided indicates that a S&S made before 1900 is worth > 13.6 times what it was worth when it was made. Are they just taking into > account inflation? Are they talking about values in real dollars? What did a > B cost in 1895? About $4,800? (I just divided $65,000 by 13.6) I would guess > that might be a bit high. Is this all they are pointing out - that there has > been inflation over the last 100 years? Or are they trying to say that a new > B bought in 1895 (let's see - salvage value for a B - let's be generous > here - $10,000 divided by 13.6 equals $735.29), used for 106 years only cost > $735.29 when new. That may be about right. Well big deal! What did a B (or > whatever model) cost at the turn-of-the-Century (the one before last). > > "By way of comparison, a Steinway piano outperforms such symbols of luxury > as a Mercedes Benz." > > What kind of crap is this? I own a Mercedes. It cost about $35,000 when it > was new in 1983. It has been lovingly care for. I am the second owner. It is > likely worth $5,000 now (might even be a tad less). La-dee-da. A Steinway is > a better investment than a Mercedes? Is this not akin to saying that a > loving marriage is better than a sharp stick in the eye? > > Feeling a tad better - but I would appreciate any level of explanation from > someone - especially numbers. > > Terry Farrell
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