Piano Finder Fee

[David Love]

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On the surface that seems a bit harsh.  Having a finder's fee which is
split between buyer and seller would not be an unusual arrangement and
would defer costs slightly from each party.  As long as there wasn't a
conflict of interest driving the sale.  I obviously don't know the
specifics surrounding the deal but I certainly see guild members doing
things that seem less ethical-maybe just more incompetent-than that and
are members in good standing.  It appears that the tech simply asked for
a fee after the fact.  No harm in asking.  If the dealer wanted to give
a "spiff" (never heard that word before), then that's up to the dealer,
it seems to me.  I wouldn't do it that way myself, but barring him from
membership in the guild?  Maybe a discussion of what is considered
ethical conduct in the guild would have been more appropriate.    
 
More typically, a "finders" fee is paid by the customer who wishes to
employ your services and is separate from a "commission" paid by the
seller.  Finder's fees or commissions can either be a flat fee or a
percentage of the sale.  Commissions from the seller vary from dealer to
dealer and party to party and, like all such fees, are best negotiated
in advance.  This is separate yet from a fee for inspection in which you
are hired to go inspect a piano and might amount to a fee similar to a
service call.  Commissions for independent techs (different from a
commission if you are a dealer taking in a piano on consignment)
typically range between 3% and 15% probably averaging around 10%.    
 
David Love
davidlovepianos@comcast.net 
-----Original Message-----
From: pianotech-bounces@ptg.org [mailto:pianotech-bounces@ptg.org] On
Behalf Of Paul McCloud
Sent: Friday, December 24, 2004 7:46 AM
To: Pianotech
Subject: Re: Piano Finder Fee
 
A few years ago, I had invited a technician to join the local Guild
chapter.  The following incident caused him to be barred from entrance
into the Guild.  
The tech was hired to look at a S&S grand at our store.  We don't sell
new Steinways, but had several used ones for sale.  The customer didn't
like any of them, so they went to the Steinway dealer to look at new
ones.  He was asked to evaluate one of the pianos there.  Without
removing the action, he looked it over and declared it suitable for his
customer.  The customer paid him for his services.  Later, he approached
the salesperson and asked if there might be some spiff for bringing in
his customer.  His reasoning was that our store (not Steinway franchise
dealer) was going to give him one, so would they offer him one as well?
It wasn't arm twisting, but he did get a spiff from the dealer.  Another
tech (Guild member) was present for the sale at the dealer.  When he
found that this tech had received pay from both dealer and customer, he
used his influence to have this tech barred from membership.
Paul McCloud
San Diego
 
 
----- Original Message ----- 
From: Sarah <mailto:sarah@graphic-fusion.com>  Fox 
To: Pianotech <mailto:pianotech@ptg.org> 
Sent: 12/24/2004 7:29:21 AM 
Subject: Re: Piano Finder Fee
 
Hi Terry,
 
My Wissner was located through a third party who supposedly wanted a 10%
finder's fee.  It turns out that the "real" fee he was trying to swing
for himself (by lying to both buyer and seller) was much, much higher --
something like 50% over the seller's price.  (In the end, the deal
didn't happen the way he had hoped.)  Anyway, 10% was considered fair in
NYC for a deal in which the finder didn't really have to do any more
than to put two parties in contact.  If you are doing other things for
the buyer (e.g. evaluating the pianos), then I would think you should
ask more.  Perhaps you could charge a fee per piano that you evaluate,
plus 10% of the sale?
 
Peace,
Sarah
 
----- Original Message ----- 
From: Terry <mailto:terry@farrellpiano.com>  
To: pianotech@ptg.org 
Sent: Friday, December 24, 2004 8:15 AM
Subject: Piano Finder Fee
 
I have been asked by a client of mine to find a good used piano for
their daughter. I am always happy to work with folks to get rid of the
junk and get a nice piano. The guy is willing to spend up to the $3K to
$4K range (maybe a nice used Yamy upright). He appears to be the type of
guy that simply doesn't have the time to do it himself, but wants it to
happen. He said "find me a nice piano and I'll take care of you".
 
We didn't talk about any specifics.
 
So it seems apparent to me that he is willing to pay a finder's fee if I
find him a nice piano. I am aware that some dealers will sell a piano
for a private owner on consignment. I don't know what percentage is
typical. I sold two bicycles at two different stores for a 25%
consignment fee. I have a third at another store that will charge a 15%
consignment fee. What kind of consignment fees do stores charge for a
piano sold on consignment. Is that any basis for a finder's fee?
 
Has anyone done this sort of thing for a third party? How did it work.
What were the financial arrangements?
 
Thanks.
 
Terry Farrell

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