Condemnation and obtaining for personal gain

[Topperpiano@aol.com]

Here's my formula: wholesale value of piano is price of completed piano minus 
rebuilding/ repair costs divided by half.  Example: 
Rebuilt and refinished piano   sells for  $20,000
 - cost of rebuild and any finishing         10,000
                                                          10,000 /2=$5000
This is how I tell my clients what their piano is worth as an unrebuilt 
piano, purchased from a home for a wholesale price.  Retail prices are double in a 
store.  This formula works for any make.  For instance a Steinway 6'4" A that 
sells for $32,000 rebuilt with a cost of $16,000 for rebuilding and 
refinishing would be worth about $8000 sold at wholesale out of their home.  The 
finished piano is sold at about a 40% margin when you consider the profit on the 
rebuilding as well as the profit in the sale. All this changes slightly by region. 
That same Steinway if sold for only $26,000 would be worth only $5000 at 
wholesale. For instance if you have a No Name grand that will sell for $8000 
rebuilt and the rebuild cost is $10,000 then clearly the piano has no value and the 
rebuilder should think twice about it. A Baldwin grand that will sell for 
$15,000 rebuilt with a $12,000 rebuild cost is worth $1,500. A Baldwin grand that 
will sell for $9500 in used condition that needs $1,200 in repairs to get it 
there is worth $4150 in a home. You can go on and on and every piano can be 
more or less fit into this formula.  The wild cards are the bizarre problems, 
major case repairs and school pianos, but even these will work out to be pretty 
close. One way that you can eliminate some guilt is to ask the client what 
they want for the piano and figure with the formula what you can afford to offer. 
I'm not saying that the smart business person shouldn't try to bargain for a 
rock bottom price, but this way you know how much you can offer and remain 
profitable in the transaction.  In this way if the client asks considerably more 
than you can offer you have a way to show them your line of thinking.  In the 
case of Phil's client with the M&H, they were not aware of the value of the 
piano and had no way of really marketing an untunable piano.  You don't have to 
feel guilty when you have treated the customer fairly. TP