need help on an appraisal

[Kdivad@aol.com]

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In a message dated 10/9/02 11:11:33 AM Central Daylight Time, 
Wimblees@aol.com writes:


> David 
> 
> This gets back to a discussion this list had several years ago. You buy a 
> piano for $10,000, and put $8000 worth of supplies into it, and sell it for 
> $25,000. That gives you $7000 "profit." Ask yourself this question. If you 
> were to rebuild an M for a private customer, would you do it for $15,000?  
> If you are willing to do that, then you are coming out the same, but not 
> making a profit. 

I'm not sure what you mean by not making a profit, but the bottom line is you 
will make the same profit in both deals but speculating with your own money 
on one.  I try to make money however I can and as I stated earlier the cost 
of wholesale Steinway's has risen to the point where it's almost not worth 
restoring and retailing.

> 
> The money you have tied up in that M did not make you any money. You would 
> have been better off putting that money into a savings account, and letting 
> it earn 2.5% interest.

Making $7,000 on a $18,000 investment in one year is certainly better than 
the bank. 
> 
> 
> But if you charge a customer more than $15,000 to rebuild the piano, you 
> are loosing money. Yes, you're talking about your labor, but instead of 
> working on your own piano, you could be working for a customer and making 
> this money. If you had nothing else to do, that would be fine. But if you 
> are busy, it becomes a drain. 

Of course!

> 
> >> 
>> 
> The insurance company wants to know the value of the piano as it sits. Not 
> what it cost to replace. And that value is what the piano will bring in a 
> quick sale. Not what it will sell for in a store, or if the customer has a 
> year to sell it.  That is why you need replacement value insurance.

Again, of course and in my opinion it will bring $12 to $15k, depending on 
the condition and that is the value of the piano as it sits. 
> 
> 
> I don't know, I've been out of the wholesale purchasing business for over a 
> year. Are older M's bringing $10 - 12,000 these days? That sounds awfully 
> high to me. 
> 
> Wim 

We all know of that rare Steinway that went for $5k somewhere but that is the 
exception and can't be counted.  The fact is all of the wholesalers I know 
are trading in the $10k range and the retail market for a reasonable playable 
"M" in this area is in the $12k to $15k range.
David Koelzer
Vintage Pianos
DFW

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