Consumer's Guide to Purchasing Musical Instruments

CONSUMER'S GUIDE TO BUYING
A MUSICAL INSTRUMENT

THE PREMISE
The following information is presented only as a general guide when purchasing a new or pre-owned musical instrument. In it I attempt to isolate the most common scenarios with which today's shopper might be faced, and offer some suggestions how one might approach the transaction more intelligently. In the following discussion I have specifically used a student clarinet as the single example, and all values and dollar amounts are applicable to this instrument only. To apply my formula to other instruments, you will be required to do some specific research to verify new and used prices for good quality known brands of the instrument you desire. AVOID FOREIGN AND DOMESTICALLY JUNK.

The following of course, is only one man's opinion, and may not specifically cover all the bases, all the time. So, be sure to approach each transaction prudently.

NEW INSTRUMENTS
When buying new instruments today's consumer is faced with any number of pertinent considerations. After you have settled on a specific type and grade of instrument, you will want to begin researching those resources able to provide you with your instrument. Your choices will be limited essentially to two purchasing venues, those being through a physical brick-and-mortar retail music store, or sales through an internet music company. Today, it is common for brick-and-mortar stores to have an internet sales division, and your experience with those companies will depend entirely upon your respective locations. In either case, you will either be purchasing an instrument from a faceless internet company, or, from an established physical business location. The immediate advantage to you when dealing with a brick-and-mortar business is that you will be able to visit their showroom, ask questions from a real live person, and actually see, hold, and test your prospective instrument. In the case of an internet transaction, you will have to handle your negotiations totally by way of email or telephone. Either condition could be consequential to any number of your future needs. For example, if you were to deal with a local business, you would be able to take advantage of your service and warranty needs more easily, thus avoiding the shipping and handling expenses when maintenance or repair is required. Remember, you WILL eventually require maintenance and repair, and a brick-and-mortar business is more likely to have a resident service department; internet businesses usually do not. Additionally, with a local business, you would be able to take advantage of the store's technical staff and other unique services when the need presents itself. These services would be difficult, if not impossible, to secure when dealing with some faceless and distant internet business. Once they have your money and they have shipped you the instrument, it is unlikely they will ever have to deal with you again. This is, after all, why they are able to offer you rock-bottom discount prices. And this may not be a consideration, of course, if you are in a position to obtain these benefits locally. I am compelled to remind you at this point, that all local public services that we all enjoy daily (i.e. police and fire protection, street maintenance, medical emergency response, etc. etc.) are funded totally by the taxes collected by local business taxes and local sales taxes. Internet purchases, at this time, unfortunately do not contribute to our local tax base. There are Bills being presented in Congress attempting to remedy this problem, where all internet sales will be taxed to support the relative local communities, but this provision may or may not ever come to pass. If taxes were part of each internet sale, this would put brick-and-mortar stores on a fair and equal competitive base with the internet business.

Internet companies often make the claim that the instruments they sell are identical to those purchased from your local retail music stores. This is not necessarily true. Your local retail music dealers routinely process each newly received instrument through their service department prior to releasing that instrument to a customer. This practice is necessary for dealers, as the consistency of manufacturers quality-control standards have become less predictable over the years. Retail music stores also routinely inspect each instrument very carefully when they receive their shipments, in the event a damage claim might be required. Internet companies, on the other hand, are usually unable to provide these important quality-control precautions. In the case of internet sales, an instrument is usually not removed from its shipping container prior to shipping it out to a buyer. In fact, many internet businesses don't even take possession of the instruments they sell. Instead, they will, drop-ship their product directly from the manufacturer, and don't have the opportunity to examine the merchandise. I do believe that internet companies, on the whole, make reasonable efforts to provide their customers with top-quality instruments, however, they are by their very nature, unable to enforce the levels of quality-control over the products they sell that is routinely provided at brick-and-mortar retail music stores.

Both retail and internet businesses have their place in the music business, and often, because of the savage competition between these two entities, the purchase price of your new instrument may be driven-down substantially, that is, for the consumer who wishes to pay cash for their instrument up-front. On the other hand, the customer who rents, rents-to-own, or purchases their instrument on an installment loan basis, will likely end-up spending substantially more money in the final analysis.

Another issue to consider is, the inherent variations between one retail music business when compared to another (business rating, customer recommendations, etc.). The same might be true of course, when comparing internet businesses. One can make no safe assumptions when dealing in any business transaction these days. There are honest dealers, and there are crooked dealers in the music business, it's no different than any other type of business. Caveat Emptor

PRE-OWNED INSTRUMENTS
When one purchases a pre-owned musical instrument, a number of additional considerations may be introduced into the picture. For example, we may be dealing with private owners, as opposed to registered businesses who have reputations to protect. This means of course, that we will be left to our own devices and knowledge of the specific instrument we wish to purchase. We may not expect an individual to be as open or honest as we would normally expect a business to be. After all, a business' reputation is critical to its ongoing success. An individual, on the other hand, may or may not feel an obligation to be totally honest and up-front with you. It definitely pays to be cautious.

In addition, when buying from an individual, we are investing in an item which will not usually come with any guarantee or warranty, so what we end up buying is what we get. Therefore, we have to acquire a better than average understanding of the common problems that often plague the particular brand and model of instrument we are purchasing. This being in the absense of a salesperson explaining things and pointing out the important aspects of our purchase.

Naturally, one of the first considerations will be to determine whether or not the price a person is asking for their instrument is a fair and reasonable one. This is where the waters may become a bit murky. For, on one hand, the asking price will be largely affected by the prevailing value of similar instruments having recently been sold in the marketplace. This factor, will be combined and weighed against the prevailing laws of supply and demand. These data may be obtained by checking Ebay's history of similar previous sales. Next, the price will be significantly affected by the perceived intrinsic value its owner places upon it. This is where the confusion, or difference of opinion, comes into play. The chances for a sale then becomes conditional upon: the closer and the sooner the owner's perceived value gets to the established market value, the more likely the instrument will attract a buyer. To ask an unreasonably high price for an instrument only means that the owner will continue to be the proud "keeper" of that instrument for a considerably long time. . . . . and what purpose does that serve?

In the music industry, the retail merchant is generally able to purchase instruments from manufacturers at a discount rate of between 50% of the retail price for student grade instruments, down to as little as 25% off the suggested retail price for professional grade instruments. Larger volume sellers are often able to get additional discounts added on because they purchase large quantities of inventory from manufacturers. Their final discount may be as high as 50% + 10% + 5% (50% off full suggested retail price, plus 10% off the first discount, plus 5% off the second discount, which is about 57.5 % total discount). This of course means, that if a large retailer purchases a student model clarinet from the manufacturer retailing for a suggested retail price of $700, and gets a 50-10-5 percent discount, they would be able to purchase one unit for about $313.25. A smaller volume retailer may only be allowed a 50% reduction off the suggested retail price, and have to pay about $350 for each unit. A large volume dealer would be able to double his price to $626.25 (getting a full 100% return on his money per unit) where the smaller store would have to sell that same unit for the full retail price of $700 to get this kind of return. Now the reality is that large volume dealers will often go beyond this formula and sell their student instruments for as much as 40% off suggested retail. Using the previous example, they would be able to sell each $700 student clarinet for $420 (resulting in a unit profit of $106.75). The small dealer offering a 40% discount would also be selling thier student instrument for $420, but only make a profit of $70 per unit. The difference between the two may not seem great, but remember each store will be selling multiple units; the large volume dealer will sell many more units at a considerably higher profit margin. This is why smaller dealerships cannot compete with the large retailers. And why you will more often be able to get a more attractive price by negotiating with a larger company. (Sorry smaller music businesses.)

RENTING TO OWN
If the parents of a young musician contract to rent that new clarinet with the intent to purchase it at a later time, they will likely be paying the full suggested retail price of $700, plus the legal interest and carrying charges for the term of their installment account. On a 24 month account at an interest rate of 18% the total cost of the clarinet would be about $838.80 ($34.95 per month), and on a similar 36 month contract the total cost would be a little over $911.16 ($25.31 per month)! Remember, the large volume retailer only paid $313.25 for that clarinet originally, giving them a gross profit of $555.55 on a 24 month contract per unit, and $597.91 on a 36 month contract. Is your rectum beginning to burn yet?

The current market value of a used student model clarinet in good playing condition, is between $200 and $300 (when purchased from a retail dealer). This would be sad news for the owner who originally paid a total of $911.16 for that rent-to-own student model clarinet. Naturally, if they were trying to sell that same used clarinet on the open market, after their child had quit playing in the band, they would feel entitled to considerably more than, say $250. They would feel that they should be able to recoup much more of their total investment, and would be inclined to ask a much higher price for it. This example alone demonstrates the merits of purchasing a good used instrument, as an alternative to spending 4 or 5 times the cost for a new one! Your best investment is indeed in a good quality used instrument, from a local music retailer. (Sorry big-volume internet stores.) Furthermore, you will be happy to know that when you want to sell that same used clarinet, you will be able to recoup a much higher percentage of the original investment, that is, if it is still in good playing condition.

STRAIGHT RENT
Most parents of beginning school musicians are a bit hesitant about committing a large sum of money on the gamble that their child will continue to show an interest in playing music for the entire length of the purchase contract (usually 24 or 36 months). For those folks, I usually suggest committing only to a straight rent plan for a period of at least three months, after which, they will have a much better indication of whether or not their child is practicing diligently, and will continue to stay with the program. Choosing a three month option means that, at the worst, they are out only about 3 months rent. On the other hand, if the youngster wants to stay with it, this would be the time to commit to either purchase a good quality used instrument (your best choice), or pay cash for a new model (and avoid all the interest and carrying charges of a rent-to-own plan). I do not recommend that you rent-to-own, unless the business you are dealing with rents without interest or carrying charges. In other words, they will divide the full purchase price of the instrument into 12 or 24 equal payments, whereupon after those 12 or 24 months, you own the instrument. My own company engages in this type of rent-to-own plan. Now, if a renter just wanted to rent that same instrument for $20 per month, without an obligation to purchase it, or accruing any equity towards purchasing it later, then their monthly rental fee would eventually cover the merchant's original wholesale cost of the clarinet in a little more than one season (9 or 10 months). After that period of time, the monthly rental rate would be mostly profit for the dealer, excluding routine maintenance and indirect costs.

If a parent of a young musician comes into that same music store and offers to purchase that same instrument for cash, the dealer would usually offer them a much more attractive price, perhaps for as little as $420 for that same new student clarinet (40% off). The reason the dealer is often willing to discount a cash purchase to that degree is because in reality he is in direct competition with every other internet discounter, and is willing to sell that clarinet to anyone who has the cash. Of course, once you get the instrument from an internet source, and they get the cash, you are usually pretty much on your own.

ESTABLISHING THE FAIR MARKET VALUE OF PRE-OWNED INSTRUMENTS
Generally speaking, musical instruments are marketed in three basic categories: Student Models, Intermediate Models and Professional Models. The distinctions separating each of the levels is not always so easily identifiable, however, manufacturers will tend to offer similar, if not identical products, at prices which are generally priced similarly. This is a natural condition which is present in all competitive markets. The average consumer is usually not aware of the listed prices of musical instruments, at least not until they find a need to purchase one. This information is usually obtained after they visit the local retail music store as they begin the shopping phase of acquiring their instrument. It can be an eye-opening experience for the uninitiated. But, the average buyer will be surprised what a small amount of profit the manufacturer actually makes from each unit they sell to the retail music store. The only reason that it can be profitable for them, is because they are able to sell large quantities of product to dealers.

In establishing a realistic value of a pre-owned musical instrument, you are then governed, essentially, by the retail prices of new instruments similar to the used ones we are trying to sell. For example, if you are trying to sell that used student clarinet, you are able to place a range of value on your instrument somewhere between $1 and the retail cost of a new one. As it turns out, the average suggested retail cost of a new student clarinet currently happens to be about $700, and than the average dealer is able to purchase this new clarinet for approximately 50% of suggested retail price, or about $350.00. Earlier, I mentioned that you also could purchase a new student clarinet for about $400 from a internet discounter. You might wonder how the internet business can sell a new clarinet for nearly the same wholesale price that many small retailers must pay for the same instrument. As I mentioned earlier, the large musical instrument discount wholesaler buys and sells a lot of instruments, and is able to get additional discounts from the manufacturers based on quantity. So, knowing this, we are able to narrow our value range down to somewhere between $1 and $400 for a used clarinet. To further isolate the resale value of our clarinet we must determine its relative condition as compared to a similar new instrument. At best, if the clarinet we virtually undistinguishable from a new instrument, it still wouldn't be worth as much, simply because it is, after all, used. So, how much value would we have to give up simply because it is used? In my opinion, somewhere in the range of 25%, or about $100 on this particular clarinet, and that's only if you would be hard pressed to tell the difference between that used instrument and a new one (including the case and accessories). If you had a used student clarinet fitting this description, then I would place a market value of $300.

We have now brought our value range down to somewhere between $1 and $300 for our used student clarinet. Next, we have to decide how much to discount the value of a used instrument based on it relative condition, if less than As New. I have developed a rating system where I place the instrument's relative condition into 6 categories: AS NEW, EXCELLENT, GOOD, FAIR, POOR, and SALVAGE. Let's begin by establishing a bottom value for a student clarinet, in other words what is the value of a clarinet in the worst possible condition (the instrument is complete, but it's beat-to-heck). As a technician, I would pay $10 for any old junker horn, just to be able to cannibalize it later for parts. So that will be our bottom range - $10, and with our top range of $300, we will divide the difference by 5 to account for the five levels of reduced value. This will give us a reduction in value by $58 for each level in condition we must go down. So, the possible values we might have for a student model clarinet would be:

$300 --- AS NEW (could not be distinguished from a new instrument)
$242 --- EXCELLENT (no scratches or dents - plays perfectly)
$184 --- GOOD (slight blemishes - the it plays well, and is in good adjustment)
$126 --- FAIR (shows some wear and may need some routine servicing)
$ 68 --- POOR (significant wear and requires major servicing)
$ 10 --- SALVAGE (it is ready for some tech's bone pile)

Please note that there are MANY extremely inexpensive new and used instruments advertised for sale on the Internet; some under $100. Do not be deceived by these "wall hangings". You cannot get a quality instrument for these ridiculously low prices; YOU GET WHAT YOU PAY FOR. If you make the mistake and purchase one of these pieces of junk for your child, you will only discourage them from staying in music, and, unfortunately, make them believe that it is their lack of talent that forced them to quit. . . . not the piece of junk instrument that you purchased out of total ignorance. YOU HAVE BEEN WARNED

GUIDES FOR CHECKING PRE-OWNED WOODWINDS:

CLARINET VISUAL INSPECTION

CHECK:

For missing or damaged (worn) pads
That all pads are covering (seating) properly
That all mechanical combinations operate properly
For missing, unhooked, or maladjusted springs
For missing or damaged adjustment corks and felts
For lateral key movement between posts or adjacent keys (requiring swaging)
For missing or maladjusted pivot screws (backed out?)
For missing or maladjusted adjustment screws (backed out?)
For sluggish key action due to loose or binding posts
For sluggish keys due to bent screws, pivot screw pilots, or key hinge tubing
For corroded steels (long screws) or pivot screws
For oil and dirty accumulations on the body and key mechanism
Body sections for cracks or checks (wood-bodied instruments)
For loose body or bell rings (dehydration)
For chipped, cracked or porous tone holes
For damaged or improperly fit tenons and tenon corks
Key alignment
For sticky pads or corks
For correct key opening (travel)
That all bearing surfaces (pivot points and hinge tubes) are lubricated
For the accumulation of residue in the bore
For the accumulation of residue in the tone holes (esp. ring key tone holes)
For the accumulation of residue in the register pip
The instrument's case for insecure blocking
The instrument's case for broken or malfunctioning latches or hinges
The instrument's case for loose articles which may damage the instrument

SAXOPHONE VISUAL INSPECTION

CHECK:

For missing or damaged (worn) pads
That all pads are covering (seating) properly
That all mechanical combinations operate properly
For excessive key noise when the key mechanism is operated rapidly
For missing, unhooked, or maladjusted springs
For missing or damaged adjustment corks and felts
For lateral key movement between posts or adjacent keys (requiring swaging)
For missing or maladjusted pivot screws (backed out?)
For missing or maladjusted adjustment screws (if present)
For corroded steels (long screws) or pivot screws
For oil and dirty accumulations on the body and key mechanism
For sluggish keys due to bent screws, pivot screw pilots, or key hinge tubing
For sluggish key action due to mis-aligned posts
For bent or damaged tone holes
For significant body dents
For body alignment (esp. Bari Sax's)
For un-soldered tone holes (i.e. old Martins)
For damaged or improperly fit neckpiece tenon
Key alignment
That all key rollers are free and lubricated
For sticky pads or corks
For correct key opening (travel)
For "lost motion" in the key action
That all bearing surfaces (pivot points and hinge tubes) are well lubricated
For the accumulation of residue in the bore and tone holes
For the accumulation of residue inside the neckpiece
For the accumulation of residue in the octave pips
The instrument's case for insecure blocking
The instrument's case for broken or malfunctioning latches or hinges
The instrument's case for loose articles which may damage the instrument

FLUTE VISUAL INSPECTION

CHECK:

For missing or damaged (worn) pads
That all pads are covering (seating) properly
That all mechanical combinations operate properly
For missing, unhooked, or maladjusted springs
For missing or damaged adjustment corks and felts
For lateral key movement between posts or adjacent keys (requiring swaging)
For missing or maladjusted pivot screws (backed out?)
For missing or maladjusted adjustment screws (combinations)
For corroded steels (long screws) or pivot screws
For sluggish key action due to misalignment body posts
For oil and dirty accumulations on the body and key mechanism
For sluggish keys due to bent screws, pivot screw pilots, or key hinge tubing
Body sections for cracks or checks (wood bodied instruments)
For bent or damaged tone holes
Continuity on soldered or brazed tone holes
For significant body dents
Key alignment
For body alignment
For damaged or improperly fit tenons (especially the foot joint)
For lost motion in the key mechanism
That the rollers are free and operational
For sticky pads
For correct key opening (travel)
That all bearing surfaces (pivot points and hinge tubes) are well lubricated
For the accumulation of residue in the bore
For the accumulation of residue in the tone holes
The embouchure hole for blemishes, dents, or accumulation of residue
For a loose or missing head joint crown
The head joint cork adjustment
The instrument's case for insecure blocking
The instrument's case for broken or malfunctioning latches or hinges
The instrument's case for loose articles which may damage the instrument

OBOE - ENGLISH HORN VISUAL INSPECTION

CHECK:

For missing or damaged (worn) pads
That all pads are covering (seating) properly
That all mechanical combinations operate properly
For missing, unhooked, or maladjusted springs
For missing or damaged adjustment corks and felts
For key movement between posts or adjacent keys (requiring swaging)
For missing or maladjusted pivot screws (backed out?)
For missing or maladjusted adjustment screws (backed out?)
For corroded steels (long screws) or pivot screws
For sluggish key action due to loose or binding posts
For oil and dirty accumulations on the body and key mechanism
For sluggish keys due to bent screws, pivot screw pilots, or key hinge tubing
Body sections for cracks or checks (wood-bodied instruments)
For loose body or bell rings (dehydration)
For chipped, cracked or porous tone holes
For damaged or improperly fit tenons (joints)
Key alignment
For sticky pads or corks
For correct key opening (travel)
That all bearing surfaces (pivot points and hinge tubes) are well lubricated
For the accumulation of residue in the bore
For the accumulation of residue in the tone holes
For the accumulation of residue in the register pips
The instrument's case for insecure blocking
The instrument's case for broken or malfunctioning latches or hinges
The instrument's case for loose articles which may damage the instrument

BASSOON VISUAL INSPECTION

CHECK:

For missing or damaged (worn) pads
That all pads are covering (seating) properly
That all mechanical combinations operate properly
For excessive key noise when the key mechanism is operated rapidly
For missing, unhooked, or maladjusted springs
For missing or damaged adjustment corks and felts
For key movement between posts or adjacent keys (requiring swaging)
For missing or maladjusted pivot screws (backed out?)
For missing or maladjusted adjustment screws (backed out?)
For corroded steels (long screws) or pivot screws
For sluggish key action due to loose or binding posts
For oil and dirty accumulations on the body and key mechanism
For sluggish keys due to bent screws, hinge pins, pivot screw pilots, or key hinge tubing
Body sections for cracks or checks (wood-bodied instruments)
For loose body or bell rings (dehydration)
For chipped, cracked or porous tone holes
For damaged or improperly fit tenons (joints)
The boot gasket for deterioration
For dry-rot in tone holes near boot crook area (wood-bodied ins's)
Key alignment
For sticky pads or corks
For correct key opening (travel)
That all bearing surfaces (pivot points and hinge tubes) are well lubricated
For the accumulation of residue in the bore
For the accumulation of residue in the tone holes
For the accumulation of residue in small lined tone holes (trills)
Condition of bocal(s) (bent? cork fit OK?, etc.)
The instrument's case for insecure blocking
The instrument's case for broken or malfunctioning latches or hinges
The instrument's case for loose articles which may damage the instrument

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Last modified:
September 2010
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