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I heard on KBAQ this morning, that Steinway would not be making any changes, but did consider selling the building and took some offers from other potential buyers. But, decided that the offers would not improve Steinway's position.
Also,Steinway looks for a good 2013.
I look forward to a better 2013 also as my team lost a bowl game last night, but it was still fun.
Happy new year to all at PW.

But from several threads at PW and the from the Piano Buyer it seems that there has been great improvement in the consistency and quality of Steinways in recent years.

Steinway has indeed improved their product over the last several years. New tooling is everywhere in the factory. I don't think any brand can build without some variation, at least while pianos are still made of wood.

Yes, a lot of computer aided manufacturing where appropriate. But also more portable. Easier to relocate machinery that skilled staff.

By way of a response to Furtwangler: if a business is owned and run by a specific person or group of people, they can make whatever decisions they want about running it, because their only obligation is to themselves. Thus, they can make decisions based on principle and pursue goals in addition to (or even instead of) generating profits.

Once a company is publicly traded, however, that changes, because those in charge of running it now owe an obligation to shareholders, who are the real owners of the company. There are of course companies that are publicly traded that adhere to principles, but stock prices are kept high (and go higher) when the company generates profits, not when the company takes a principled stance that actually costs it money. It is my understanding that Steinway is publicly-traded; thus, its priorities may well not be the same as those in an ownership that is willing to put principle ahead of profits.

My two cents.

Gee thanks.

I did not know that (to borrow a phrase from the late Johnny Carson).

So let me get this straight - there are actually some publicly owned companies that adhere to principles? Gosh. What a country.


My three cents.

Now I'm confused. I thought that the Steinway Hall deal was finalized, with the exception of a balance to be paid to Steinway when they vacated the building.

I thought the issue that was deemed not in the best interests of stockholders revolved around selling the Selmer/Conn decision to two executives.

If Steinway wants to build a new factory in Gallatin then they better start saving money now for the new TN employee workers comp trust or just consider hiring temps. They will never have a sustainable qualified workforce in Gallatin. Not many people will work 10 years for a 30 cent raise to 8.30 an hour. 48 % of their revenue will go straight to the comp trust for the first 2 years.

They would be better off in a more business friendly state like Delaware or South Carolina, Maybe Georgia.

Would a Steinway made in Tennessee still qualify as a New York Steinway?

That's an interesting observation. Steinway has tied its branding in with its location so leaving NY could be a terrible move in terms of continuity of a beloved line of products. It's quite possible they might have left NY long ago if it weren't for the "Steinway New York" factor. On the other hand, NY has been good to them and they might not have lasted this long without the heritage in NY. I don't know - just thinking out loud...

If they were to produce a piano of similar quality in Gallatin, marketing could handle the rest.

And I see no reason why, after a "break-in period", pianos produced in Gallatin could not equal those madein NY. In fact, with a new factory things might improve.

If their performance standard was maintained, through good marketing it would not be hard to maintain sales. And Steinway is an excellect company when it comes to marketing.

It would take a lot of capital, and it seems that they are raising a lot through the sale of Steinway Hall, the reduction in debt made possible by Mr. Kim, as well as other factors.

The question is not whether the pianos would be of similar quality. The question is whether they would still be New York Steinways. Tennessee Steinway just doesn't have the same ring to it, does it?

tho it's probably proprietary info, i'd be curious to know sales by state. my guess is that there's a non-trivial cache associated with S&S in NY, and that sales there (& neighboring new england states) represent the greater percentage of sales in the US. if true, they would have to take possible lost sales into consideration along with presumed cost savings by making a move of this kind.

as RPA suggests, TN S&S just doesn't have the same ring to it.

I think you people have all lost your collective minds.

Lots of people buy cars and other goods manufactured in Tennessee and other states, without bemoaning the fact that they aren't made in NYC.

"New York Steinway" is a term largely employed to identify Steinways not made in Hamburg. "US Steinway" would work just as well.

Greetings,
American Steinways, German Steinways; lots of people like to say "Hamburg" to appear knowledgable.
These pianos have, in the past, been distinctly different instruments. It seems that there is some homogenization going on, these days, and it may start with the hammers.


Neither is perfect, there are no perfect pianos. However, I have seen a marked difference in the pianos coming out of the two different Steinway factories.
I don't see Steinway moving out of New York, but if so, Tennessee wouldn't likely be the destination.

"I don't see Steinway moving out of New York, but if so, Tennessee wouldn't likely be the destination."




Why do you say that, Ed?

I think that is what I heard, I could have gotten it wrong, I was listening to the radio in my home and my ears perked up when I heard them talking about steinway.
Kind Regards,
Brian
Just a thought, if they did move maybe they would be a little more affordable?

The fact of the matter is that NY Steinway has become uncompetitive in the most basic of the definition. You can buy a brand new a Bösendorfer 185CS for ~$60K, or a NY Steinway Model A for ~$75K. I recently tried a very amazing NY Model A that is beautiful shinny black with satin black inside rim, and neutral shinny wood color belly, almost looking exactly like a Hamburg except with square shoulders, and the action is excellent with excellent dynamics, though the treble lacks a little something, not quite as good as my Yamaha C3X, and sustain is a little less. I would never imagine I would ever say that about a Steinway, but while NY Steinway is not completely standing still with quality, neither is Yamaha. In any case, this almost Hamburg NY Steinway A had a price of $85K and while Steinway was willing to pay my sales tax, I really cannot understand why I wouldn't just walk across the street and buy the Bosie 185CS for less, which I believe is at least equal (even though my wife would not approve as she's never heard of it), or the Yammie C3X for a lot less. Is it $25K better than the Bosie 185CS? Is it $55K better than my Yamaha C3X?

I have all the respect for Steinway and what they have accomplished, but they did not evolve sufficiently in an ever changing world. They now make a product that only the 1% could afford, and you don't have to be an economist to know that is not sustainable.

their 2011 annual report is here; interesting info:

http://www.steinwaymusical.com/dlreport.php