RIN:7 CASH BUY-BACK VALUE

The 1994 Blue Book of musical instruments from Orion Research Corp. (Scottsdale, AZ) lists the RETAIL PRICE of one particular stringed instrument--in mint condition at $10,000 (see p.486). This instrument bears the !abel of an award-winning internationally renowned European master violin maker.

But the listed WHOLESALE PRICE--what a retailer would pay to repurchase the $10,000 instrument--is somewhere between a mere $991 and $1,700! Consider: this 80%-90% drop represents a far greater loss than the depreciation of a car on the day that you drive it out the door of your dealer's showroom.

How is this possible? Simple! As James Scoggan puts it: "Some shops have very high prices to cover commissions [i.e., kickbacks] to teachers" (American String Teacher, Summer, 1994). Quite simply, such "commissions"--paid by dealers to their collaborating teachers--have artificially sent the retail prices for instruments and bows to unbelievably high levels. These prices are not the result of supply and demand but of an almost perfect scam. And, today, clandestine kick-backs--fleecing the unwary buyer--are the norm rather than the exception. What's more, they go as high as 50% of the retail or sales price. Clearly, the collusion described here provides a nice "supplement" to what the teacher makes as a teacher--at the student's expense!

This is why most reputable violin maker-dealers issue their customers a written "Bill of Sale and Warranty". This document states the instrument's or bow's classification, the cash buy-back amount the dealer will pay, and the item's trade-in value. The same document also guarantees that no third party will receive a commission, finder's fee, or kick-back from the sale.

What about YOUR instrument and bow?

Do you know its actual CASH or repurchase value? Does it come close to even 10% or 20% of the retail/sales price you paid? Or is it worth the 50% to 80% of the retail price you can count on when you buy from a maker-dealer who issues a CASH/BUY-BACK warranty?

In this situation, ignorance is not bliss.

We like to share what we know

You can ask us about CASH/BUY-BACK policies, certificates of condition, certificates of authenticity, insurance appraisals, etc. We love stringed instruments, and we know the violin business and those in it. So, for further information, please call us.

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Violin Makers & Dealers * International Consultants * Expert Appraisers
Fritz Reuter I 1897-1944, Fritz Reuter II 1931, Gunther Reuter1934,
Michael F. Reuter 1961, Robert Reuter 1968