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Originally Posted by Steve Cohen
Originally Posted by laguna_greg
Ed, this is absolutely true. And I generally find that the rebuilt S&Ss sound better than the new ones, so it's a great value all the way around!

A great value for everyone....except Steinway!

That comment was no doubt in jest, but in fact it is highly debatable. One could argue convincingly that the demand for new Steinways would fall if there were no ready market for used ones.



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Originally Posted by michaelh
OK, nevermind. I guess I'll just buy a mutual fund at T.Rowe Price.


Wise choice. grin

This discussion of what set of wacky notions might allow us to generate a "Steinway Platinum Fund" of warehoused instruments is theater of the absurd.


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It's just a matter of time until you can buy "Steinway Piano Futures" on the commodities markets. Personally I would hedge any "quality risk" with a straddle of a Steinway Piano Future Call Option and a Steinway Piano Future Put Option ensuring my self of either making money or getting hold of the underlyer which might be of resale value for investors from emerging markets. I would also hedge the inflation risk. Furthermore, if I were Steinway, I would sue any other big piano maker because they also use strings which (if you consider it) must be a Steinway invention anyway...

And by the time I was done investing, hedging and suing I would be too old and either mentally or physically unable to play..

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Originally Posted by Thrill Science

It's odd that Steinway's primary pitch is investment and prestige value, and not as a musical instrument.


Really? Are you sure about that?


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Originally Posted by Withindale
That comment was no doubt in jest, but in fact it is highly debatable. One could argue convincingly that the demand for new Steinways would fall if there were no ready market for used ones.

Ian,

I'm not so sure it was in jest. Steve has taken shots at S&S in a number of previous threads, most notably the use of the term "All Steinway School." I read the exclamation point to be an expression of 'Goody, Steinway won't benefit.'

The thing that concerns me is his position with "Piano Buyer" and that he often makes statements as facts, or personal opinion which runs contrary to the purpose of "PB". Everything he states carries the weight of the publication unless he states a disclaimer. Such a disclaimer is not contained in his signature line, as I pointed out. In fact, it is prominently omitted.

Mr. Fine works to provide information which is fair and balanced. For that reason, his publication is consistently recommended to piano shoppers and piano lovers alike. The statements of Mr. Cohen often are of a very different tone or viewpoint than that of the publication. It is the juxtaposition of opinion which, I believe, is not clear to the readers of Piano Forum.

It is easy for those of us who are regulars to react with, "Oh, that's just Steve ... " However, to the new member, and new members show up daily with questions, a contradiction often arises. "Piano Buyer" is recommended, yet its most prominent representative on this forum publically opines in very different directions.

I hold a great deal of respect for Steve. He is well respected in the industry and has a wealth of experience. However, it is often unclear if his viewpoint is personal opinion, or if he is making statements as an employee and representative of the publication. The implication of his association with "Piano Buyer" is always a factor in any of his postings.

The owner of Piano World is very clear in the requirement that professionals in the industry clearly state their affiliation and/or position. This allows all readers to make their own assessment, and draw their own conclusions, about what, and how, information and opinion is presented. When there is a dual affiliation, a unique situation is created and that situation raises questions of conflict of interest. Clarity of viewpoint becomes important.

Sincerely,


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Gary: That was certainly the basis on which a Steinway dealer tried to sell me one some years ago. Essentially, according to this dealer, there were four reasons to buy a Steinway, in the following order of importance:

1. Investment value
2. Prestige factor
3. Because no other piano is worth owning and no other dealership can be trusted, it follows that Steinway is the one to buy (from this dealership, of course).
4. Steinways are the best pianos.

I think that the very unhappy time I spent at the particular Steinway dealership played an important role in my view of the brand. It would have been one thing if I had fallen in love with a Steinway piano, but I did not.

One helpful aspect of the Piano Forum has been reporting by others who were shopping for pianos and who were reading Steinway dealership websites that caused me to conclude that my experience at the particular dealership was not unique. I might otherwise have written it off as an unfortunate peculiarity of the particular dealership. As it stands, however, I am inclined to the view that Steinway itself must bear some responsibility, given how widespread the sales pitch seems to be.

In any event, I did not fall in love with a Steinway piano--to the contrary, I did not even like the new ones I tried all that much.


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As a consumer shopping for a grand, I have never understood the "investment" angle.

An object that has "investment" value needs intrinsic value that appreciates over time. Gold, precious jewels and stones, arts, certain antiques, items that are rare and unique and are generally valued by everyone to be something worthy of acquisition.

A piano made in gold? Studded with diamonds or precious jewels? Played and owned by Bernstein? Rubinstein? Horowitz? Stern? Beethoven himself?

A standard piano does NOT appreciate over time. Every single person buying a used piano is looking to pay less for it. Base on our analysis, purchasing and then owning a piano actually incurs significant and non-trivial ongoing costs.

If a loan is used for the purchase, there is interest cost. Environmental control adds cost, insuring a piano adds cost, changing the fire-sprinklers to something not water costs a bundle, regular tuning adds cost, periodic regulation service adds cost, piano cover, string cover, key cover and bench are all costs. Inflation itself is a form of cost in resale price. Moving it also can incur costs.

The actual purchase price itself has long-term cost because it can no longer be invested in something else that can actually appreciate; like stocks? other forms or securities? What would I get in 10 years if I invest $X dollars in Google or Apple or Microsoft versus sinking that amount into a piano? Especially when some stocks pay dividends?

We have heard salespeople using this "investment" pitch and we just politely ignore them. A standard piano does not appreciate in value and has no intrinsic monetary value worthy of being an "investment" target.

What is truly valuable are the intangibles. We may love the sound. The kids may enjoy learning and improve rapidly. I may start taking lessons and discover the inner musician. The ability to bring wonderfully played live music into the house. The opportunities to spend quality and memorable times together as a family. All those are much more important when considering a purchase.

Just my two dollars :-). Two cents ain't worth much these days :-).

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Originally Posted by Minnesota Marty
Originally Posted by Withindale
That comment was no doubt in jest, but in fact it is highly debatable. One could argue convincingly that the demand for new Steinways would fall if there were no ready market for used ones.

Ian,

I'm not so sure it was in jest. Steve has taken shots at S&S in a number of previous threads, most notably the use of the term "All Steinway School." I read the exclamation point to be an expression of 'Goody, Steinway won't benefit.'

The thing that concerns me is his position with "Piano Buyer" and that he often makes statements as facts, or personal opinion which runs contrary to the purpose of "PB". Everything he states carries the weight of the publication unless he states a disclaimer. Such a disclaimer is not contained in his signature line, as I pointed out. In fact, it is prominently omitted.

Mr. Fine works to provide information which is fair and balanced. For that reason, his publication is consistently recommended to piano shoppers and piano lovers alike. The statements of Mr. Cohen often are of a very different tone or viewpoint than that of the publication. It is the juxtaposition of opinion which, I believe, is not clear to the readers of Piano Forum.

It is easy for those of us who are regulars to react with, "Oh, that's just Steve ... " However, to the new member, and new members show up daily with questions, a contradiction often arises. "Piano Buyer" is recommended, yet its most prominent representative on this forum publically opines in very different directions.

I hold a great deal of respect for Steve. He is well respected in the industry and has a wealth of experience. However, it is often unclear if his viewpoint is personal opinion, or if he is making statements as an employee and representative of the publication. The implication of his association with "Piano Buyer" is always a factor in any of his postings.

The owner of Piano World is very clear in the requirement that professionals in the industry clearly state their affiliation and/or position. This allows all readers to make their own assessment, and draw their own conclusions, about what, and how, information and opinion is presented. When there is a dual affiliation, a unique situation is created and that situation raises questions of conflict of interest. Clarity of viewpoint becomes important.

Sincerely,


Marty,

First, ever since my relationship with Piano Buyer began, a disclaimer has been a part of my signature line. While I AM authorized to post on Piano World officially for PB and Larry, in those rare posts I always state that I am posting for them.

Second, you are mistaken in your interpretation of my comment that used Steinway sales benefit all parties "except Steinway". Many used Steinway sales are made to shoppers who otherwise would buy a new Steinway. In fact, I think most Steinway dealers (and likely the company itself) would agree that Steinway's biggest competition is the used/rebuilt Steinway market.

I have a great deal of respect for Steinway even though I have serious reservations about the "All Steinway School" designation being used by schools that have significant numbers of Boston and Essex pianos.


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Steve,

I may have misinterpreted your use of "except Steinway!" I was pointing out how it can also be misinterpreted by others and especially newcomers.

You do display your association with PB and it is quite prominent. Your disclaimer covers you and your clients, and you are not a client of PB, you are an employee or affiliate. The lack of PB in your disclaimer of opinion makes the inference that you are always speaking on behalf of PB, as opposed to your other professional entities with which you are affiliated.

You maintain that your statements are clear and well defined. I am merely pointing out to you, and other readers of your posts, that what you are stating carries a totally different weight because of your affiliation. Often it becomes unclear of the viewpoint from which you speak.


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Marty, Steve

Assuming you would like Steinway to prosper and succeed in the next decade and into the future, what advice would you give Mr Paulson were he to ask?


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Originally Posted by Minnesota Marty
You do display your association with PB and it is quite prominent. Your disclaimer covers you and your clients, and you are not a client of PB, you are an employee or affiliate. The lack of PB in your disclaimer of opinion makes the inference that you are always speaking on behalf of PB, as opposed to your other professional entities with which you are affiliated.

Here is the first Google definition of client: "A person or organization using the services of a lawyer or other professional person or company." This would seem to indicate PB is one of Steve's clients. I think it's clear to almost everyone except you that Steve's posts are his own ideas and not those of PB or any other of his clients. I think his signature explains everything very clearly.

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Hi Ian,

I would suggest to Mr. Paulson to stress manufacturing consistency and insure that all pianos are produced to fall within very narrow mechanical tolerances. Even through the use of "hand built" there is a wide range from sloppy to immaculate. Steinway needs to always be as close to perfection as is possible in its craftsmanship.

Craftsmanship leads to artistry. Steinway does this very well. The "Steinway Sound" needs to be retained and promoted. It is the sound of the Steinway which is the biggest selling point, as long as manufacturing standards are at the very highest level.

I believe that best thing that Mr. Paulson can do is to listen to his builders and staff, of all instrument lines, to put quality and excellence first. He knows how to develop and grow the SMI companies from a marketing standpoint, and he has the resources to accomplish his goals. He should not, however, meddle with the concept of what makes a Steinway a Steinway. He should insist that all products under his purview be of the highest quality in any given price range.

I have had the chance to play several new S&S-O and put them through their paces. They were exceptional instruments and at least from my inspection, they were as carefully built, fit and finish, as any on the market. The tonal structure of these instruments was exceptional. Each with their own voice, yet all sounding like a Steinway.

Something that I would personally like to see would be the re-introduction of the 'C' built in Astoria. To my ear, it has the tonal structure and personality of the 'D,' but does not have the sheer power needed for concerto performance. For the serious pianist, it is a remarkable instrument and is very different than the 'B.' From what I have been told, the action geometry is identical to the 'D' and I sense that from my own experience.

There is a marked tonal difference between Hamburg and Astoria. That difference should be maintained but the NY versions need to be at the same level, with regard to fit and finish, as their German cousins. From what I have played recently, they are well on their way.


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PLU,

"Using the services of" indicates the engagement of an independent contractor. I certainly don't know Mr. Cohen's contractual agreement with Mr. Fine, but by all appearances he is not an independent contractor, but rather a full time employee and representative.

He would be in the position, I surmise, to select and engage an independent contractor to submit and article to the publication. This is not at all uncommon at PW, however those authors are independent contractors and their work product is not categorized as employment. They act as consultants to the publication.

Mr. Cohen is not a "client of" PW, he is "part of" PW. This is exactly the ambiguity contained within his disclaimer.


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I concur with much of the above - I celebrate the fact the NY and Hamburg instruments have different tonal qualities, and I hope it stays this way for the benefit of choice for players around the world.

I also share Mary's sentiments regarding wanting to see consistently great instruments out of the NY factory, every time.

One brainstorm (if any of the Steinway "brass" were reading this) that might be interesting to ponder: if Steinway NY is able to finish a piano as well as the Hamburg one, why not offer the customer a choice of "European voicing" with whatever materials are different in the Hamburg pianos and "American voicing" with the stuff that already goes in the NY piano? Both could be offered at the same price (it would be built in NY), eliminating the arbitrary Hamburg "tax" you have to pay to buy a new German Steinway in the US.

To some extent, I know this already occurs with rebuilders, but why not for new production at the factory?


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Marty

Thank you for an excellent response.

I was not going to comment because I have said enough already, but you mention the C.

There must surely be a golden opportunity to introduce a superlative new version of that model.


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Originally Posted by Minnesota Marty
PLU,

"Using the services of" indicates the engagement of an independent contractor. I certainly don't know Mr. Cohen's contractual agreement with Mr. Fine, but by all appearances he is not an independent contractor, but rather a full time employee and representative.

He would be in the position, I surmise, to select and engage an independent contractor to submit and article to the publication. This is not at all uncommon at PW, however those authors are independent contractors and their work product is not categorized as employment. They act as consultants to the publication.

Mr. Cohen is not a "client of" PW, he is "part of" PW. This is exactly the ambiguity contained within his disclaimer.
I'm not at all sure your idea of the meaning of client is correct. It's definitely not how I'd interpret it. But even if your take is correct, I doubt anyone other than a lawyer or a pedant gave this distinction a second's thought or found Steve's disclaimer ambiguous. His signature has been the same for more than a year and no one said a word about it before this thread.

If you are really trying to offer him advice rather than just criticize(as it appears in this thread where you began by misinterpreting his post), you should do this in a PM.

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Originally Posted by Minnesota Marty
Hi Ian,

I would suggest to Mr. Paulson to stress manufacturing consistency and insure that all pianos are produced to fall within very narrow mechanical tolerances. Even through the use of "hand built" there is a wide range from sloppy to immaculate. Steinway needs to always be as close to perfection as is possible in its craftsmanship.

Craftsmanship leads to artistry. Steinway does this very well. The "Steinway Sound" needs to be retained and promoted. It is the sound of the Steinway which is the biggest selling point, as long as manufacturing standards are at the very highest level.

I believe that best thing that Mr. Paulson can do is to listen to his builders and staff, of all instrument lines, to put quality and excellence first. He knows how to develop and grow the SMI companies from a marketing standpoint, and he has the resources to accomplish his goals. He should not, however, meddle with the concept of what makes a Steinway a Steinway. He should insist that all products under his purview be of the highest quality in any given price range.

I have had the chance to play several new S&S-O and put them through their paces. They were exceptional instruments and at least from my inspection, they were as carefully built, fit and finish, as any on the market. The tonal structure of these instruments was exceptional. Each with their own voice, yet all sounding like a Steinway.

Something that I would personally like to see would be the re-introduction of the 'C' built in Astoria. To my ear, it has the tonal structure and personality of the 'D,' but does not have the sheer power needed for concerto performance. For the serious pianist, it is a remarkable instrument and is very different than the 'B.' From what I have been told, the action geometry is identical to the 'D' and I sense that from my own experience.

There is a marked tonal difference between Hamburg and Astoria. That difference should be maintained but the NY versions need to be at the same level, with regard to fit and finish, as their German cousins. From what I have played recently, they are well on their way.


Great response, Marty. I would add to this consistent preparation at the factory rather than at the dealer level to ensure that the instruments are presented as far as is possible at their best to the consumer.

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sophial - I completely agree.

Mr. Paulson - Take Note!


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I would like to add to the advice that Mr. Paulson exercise some oversight of Steinway dealer tactics. We have seen plenty of evidence here both in individual stories (admittedly anecdotal) and on dealer websites that are linked here that such oversight might be a good idea.

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I'd suggest getting rid of that investment stuff-anyone who knows just a little bit about the piano market (or the economy in general) knows it's all baloney :P


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