BOUGHT AND SOLD? 
THE STRAD SEPTEMBER 2006

 

Violinist Stephen Clapp is dean of Juilliard School as well as a long‑time teacher and performer
 

A RECENT NEW YORK TIMES ARTICLE considered the costly relationship between doctors and medical device manufacturers:

'As she presented research results indicating that a new medical device was "an important breakthrough", the doctor's enthusiasm was clear. Less evident were some of the financial links between the researchers and the device's maker.'

The article implied that there's something wrong with supposedly objective evaluators being paid by the company that made the device. Is this any different from a music teacher persuading a student to buy an instrument from a dealer ‑ without revealing to the student that the teacher will get a commission on the sale?

What could be wrong with a perfectly legal practice that puts a few dollars into the wallet of an underpaid, undervalued fiddle teacher: In my view, such transactions are problematic and at stake is the trust between student and teacher.

In most cases the arrangement between dealer and teacher is secret. This lack of transparency strikes a severe blow to a relationship that should be based on mutual confidence and respect. The first time I was approached by a dealer to enter into this type of `business arrangement' was in my first years of college‑level teaching, before I knew about the practice. As my entry level salary was barely enough to live on, I thought it was a pretty good deal. I took the money and thereafter felt guilty ‑and do to this day ‑ whenever I saw the student.

The financial incentive of a commission is a powerful persuader against objectivity

The fact that the amount of a commission paid to the teacher is added to the price of the instrument is not revealed to the buyer. A student taking out loans to pay for education would certainly benefit from a lower price. However, I know from personal experience that the dealer is unlikely to pass on the savings to the buyer if the teacher doesn't accept the commission.

The second time I was approached by a dealer, I asked if my commission could be subtracted from the sale price if I did not accept it. He said `no'. So I accepted the commission and returned it in full to my student. When the dealer heard about what I'd done, he was irate! His reaction convinced me that I had done the right thing.

In the search for the right instrument, the financial incentive of a commission is a powerful persuader against objectivity. I tell students who are looking for an instrument to visit a dozen shops, see what's available and what seems right, and then to purchase on the basis of numerous criteria. Instruments become available at different times with different dealers, so the freedom to explore all sources is essential.

Teachers should certainly be involved in guiding students through these important investment decisions, helping them to avoid instruments that are overpriced or in poor physical condition. Yet sometimes students avoid asking teachers for help because they've heard about the commission game.

Should a teacher accept commissions from dealers when a student buys an instrument?  A Juilliard dean and a successful private teacher have very different views about this contentious subject.

The subject of teachers receiving a commission from the purchase of an instrument by a student was considered some years ago at Juilliard and led to the creation of the following policy for its faculty:  "To avoid misunderstanding, gifts which would include commission on the sale of musical instruments, cash or other valuable merchandise) should be returned upon receipt, with an explanation that acceptance is against Juilliard policy.'

In real‑estate transactions, the commission is announced up front and is paid by the seller. In instrument transactions, commissions are concealed and are paid by the buyer.

Somehow, this doesn't seem to be appropriate.

Mimi Butler teaches violin and viola privately in New Jersey and for of several guides on running a private music studio


WHEN ONE OF MY PRIVATE STUDENTS (and, usually, their family as well) asks for help finding and purchasing an instrument, or I feel it's time for them to buy an instru­ment rather than hire one, there are many steps involved before they hold the instru­ment in their hands.

 

I find that parents of most students do not have the expertise that I have and they need to be guided throughout the entire searching and buying process. First, I

I have never had a problem because I have always worked with a responsible and reputable dealer

typically spend about 30 minutes on the phone with the parents, who have many questions: where should we start looking? Can we afford an old instrument? Does the dealer offer trade‑ins? What do we do with the instrument the student is playing now: How much should we spend?

Next, I contact different instrument dealers, including one dealer that I have worked with on many occasions and trust completely. After that, I may drive to the dealer to pick up the instruments or I may have them shipped to my studio. This takes a great deal of time. If the instruments are shipped, I need to unpack them and inspect them. Then I explain to the student and parent how to take care of an instrument that they are borrowing for a week or two. The final stage of the process is to assist the student in choosing an instrument. Often I meet with them for an extra 30 minutes to perform an ‘instrument test’. During this session, the student and I play the different instruments while the parents help us decide.

The entire process of helping a student buy an instrument is time‑consuming and I do not charge the student for the time spent. Therefore, I gladly receive a commission from the instrument dealer. [I do not tell parents about the commissions: when I conduct seminars on the topic of how to run a private music studio, I tell studio teachers that their studio is a business and they don't need to explain finances to the parents.]

I help all of my private students with instrument purchases. I have never had a problem because I have always made sure that I work with a responsible and reputable dealer. I worked briefly with a dealer who often did not return phone calls and who did not offer trade‑ins. Now I work with a dealer who is quick to respond to phone calls and instrument orders, and who offers fair trade‑in prices.

If a teacher is worried about their choice of instrument for a student, they should ask the student to take the instrument to one of the teacher's colleagues. (The parent may have to give the colleague a lesson fee for their assistance.) Sometimes, I just ask one of my colleagues to play the instrument for a few minutes to tell me whether or not it is a good choice.

 

As a studio teacher, I consider it part of my job to assist my students with finding the right instrument. I know that I have the students' interest at heart, so I will send my students to other dealers to check out instruments, even though this means I may forego a commission. That way I know that I am not being biased towards the dealer who gives me a commission. I want the parents of my students to be charged a fair price and the students to be happy with the instrument. This comes first.