Sunday 20 January 2013

SCAMS AND SCHEMES


I am not going to apologize for the following expose.  The music instrument market is not regulated as such anyone can charge what they deem to be fit and make dubious claims.  We believe that such tactics are to the detriment of customers and business that conduct fair trade. This article is posted to authenticate the honor of our profession and trade. There are various methods and scams on the market whereby a dishonest individual or business owner will make certain claims. The methodology I document is for the general benefit of consumers

SCAM 1 - THE INSTRUMENT HAS BEEN USED BY A PROMINENT MUSICIAN OR INDVIDUAL.

On the assumption that this is true, is it not incumbent on the seller to provide a letter from the musician, stating when and how long the instrument was in his/her possession.

SCAM 2 - THE INSTRUMENT IS MADE IN GERMANY AND DISPATCHED TO ITALY FOR VARNISHING, SENT BACK TO GERMANY TO BE EXPORTED TO THE BUSINESS ENTITY IN MALAYSIA. THIS INSTRUMENT IS DEEMED TO BE ITALIAN.

This is one of the most ludicrous scam that lacks common sense. Let us conduct a simple analysis as follows:

Retail Price of an Italian  Violin                                 RM 15,000/-

-         German Manufacturers cost is RM 1,000/- for manufacturing a blank violin.
-         It is expressed that the Instrument is  dispatch to Italy for varnishing and sent back to Germany for final fitment and export.
-         Our internal calculations taking into account overland double trucking charges , application of varnish and fitment of instruments would be about RM 3450/-
-         The manufacturer sell the instrument for RM 5,500/-
-         Air Freight charge is 25 percent, taxes are 10 percent and local clearing charges are approximately 5% of instrument value
-         The landed cost of instrument to local business entity is RM 7940/- if one were to add stocking and management cost overheads the final cost is about RM8,895/-

The Malaysian business entity would pay commissions for the instrument to whoever sells it and this is about RM 3,000/-. This could be a higher figure.

The value of the instrument is RM 12,000/-.  The Malaysia business entity make about RM 3,105/-

What makes this bizarre, strange and unbelievable are the following rational that does not lend any credibility to such claims:

-         A credible German manufacturers does everything themselves. The well known German adage ‘The German knows best’ has epitomized their culture and trade for centuries.
-         Traditional manufacturers can replicate Italian varnishing methods, the Chinese and Koreans have been doing it for years. Is it conceivably more difficult for the Germans to copy the Italian varnishing methods?
-         Would a good manufacturer address an additional process of export, import and export for any instrument? Isn’t this mind boggling?
-         Finally can this instrument be categorized as an Italian Instrument based on one work process?
-         Considering that anyone can fit their own labels one has to investigate the brand name of the violin and if it is traceable.
-         The seller must be able to substantiate his claims by mean of documenting and allowing that you are able to direct to the makers.
-         The other known glaring fact is that the Italian Violin makers have not commercialized their trade, usually one make to a Violin is a known fact at the most they would have workshops with three to five persons working. This is the nature of the industry.


SCAM 3- THERE ARE GIFTED AND TALENTED INDVIDUALS WHO CAN PERFORM ON A RM300/- INSTRUMENT AND MAKE IT SOUND LIKE IT IS RM30,000/-

-                     It is always better to have a credible individual with no vested interest or gain to try out an instrument.
-                     Trying an instrument under various conditions will reveal the consistency and nature of the instrument.

SCAM 5 - THERE ARE OTHER BUYERS WAITING TO PURCHASE THE INSTRUMENT.

-                     This is one of the oldest tricks in the book; if one is patient one will find a good violin.

SCAM 6 - THE INSTRUMENT HAS GOOD INVESTMENT VALUE AND WILL APPRECIATE OVER THE YEARS.

-                     The general yardstick for instrument that appreciate in value are instruments that are in excess of USD 100,000/- in value. Such instruments are usually authenticated by experts in this field.

SCAM 7- A GOOD VIOLIN IS REQUIRED FOR A PERSON TO PASS AN EXAM OR THE PERSON IS TOUTED AS A PRODIGY BY SOME TEACHER.

-                     Exams do not justify paying an exorbitant price anything below RM 15,000/- would do fine. Any good and decent teacher would be able to guide a student through his or her exams without the most important consideration being the instrument. The prodigies are usually persons who are about 6-7 years of age and performing major works.


SCAM 8- THE INSTRUMENT HAS BEEN SELECTED ESPECIALLY FOR YOU AND YOU CAN PAY BY MEANS OF INSTALLMENT AFTER PLACING A DEPOSIT.

-                     The deposit would have covered the cost of the instrument with profits and the installments are profits. The fact is that most parents want the best of their children and the end result is entrapment.

SCAM 9 - A VERY COMMON SCAM IS RUNNING DOWN A COMPETITOR OR THEIR INSTRUMENTS  AND PLANTING FALSE INFORMATION ABOUT THE COMPETITORS INSTRUMENT. THIS ALSO INCLUDES A SO CALLED EXPOSE ON THEIR HIGH PRICES AS OPPOSED TO THE INSTRUMENT THE SELLER IS MARKETING.

-         If one’s products are so good and one is confident, there is no reason to run down a competitor!
-         If one were to place simple enquiries and request for details including contact details, it could be established beyond doubt that the ‘expose’ is  a fabrication of  fictions statements on events that never occurred.
-         If one has obviously too much information about a competitor’s instrument and speaks more about the competitor’s instruments, then one can be sure it is based on pure speculation or heresy.

SCAM 10 - THERE ARE ESTABLISHMENTS, MUSIC SCHOOLS, TEACHERS, CONDUCTORS OR MUSICIANS WITH A SIEGE MENTALITY WHEREBY THEY WILL EXPECT A STUDENT TO PURCHASE AN INSTRUMENT FROM THEM OR THROUGH THEM.  THERE WILL BE THE IMPLIED AND SINISTER THREATS THAT THE STUDENT WILL NOT HAVE LESSONS OR HAVE A PLACE IN THE ORCHESTRA, OR STRING ENSEMBLE.

-                     If you feel that your freedom of choices are restricted by any party or individual, leave immediately. This sort of conduct should never be tolerated or accepted. Many thrive on so called reputations or service.
-                     If an establishment or an individual are really that good and secure, they would never have to resort to such unhealthy sales tactics.  The other fact is that it is incumbent that unconditional service  by music establishments and individuals is to be sensitive to a customer or student and ensure their needs precede that of the music establishment or individual.

SCAM 11- THE SELLER HAS A RARE, OLD INSTRUMENT THAT IS  PRECIOUS TO THE SELLER AND THERE HAS BEEN A LINE OF STEADY OR PROMINENT BUYERS WHO HAVE NATRUALLY BEEN REFUSED THE OPPORTUNITY OR PRIVELEGE TO PURCHASE THE INSTRUMENT. BUT DUE TO THE PROXIMITY TO YOU THE SELLER WOULD AGREE TO SELL YOU THE INSTRUMENT.

-                     This cheap trick can easily be torn to shreds if one were to enquire on the list of people who wanted to purchase the instrument. If the individual or music establishments were authentic or genuine they would never express that it is confidential.

SCAM 12- SOME ESTABLISHMENTS OR INDVIDUALS WOULD CLAIM THAT THEY HAVE WORKSHOP OR REPAIR FACILITIES THAT ADDRESS AFTER SALES SERVICE ON INSTRUMENTS. THEY EVEN TAKE STAGED PHOTOS AND DISPLAY ON THEIR WEBSITES SHOWING THE INSTRUMENT REPAIRS THEY HAVE ADDRESSED.

-                     We have two such claims that we verified, either the parties have nothing to offer by means  of service or tools or repair work, nor do they have the credentials and even if they do some work it is shabby and of such dubious quality. If you come across such claimants we will give you an impartial  and private assessment of what we believe it to be. We expect the reaction to be one of frothing and salivating screams of ‘bloody murder’ . Our contention is that honesty has nothing to fear and if your really do good work, one would be able to substantiate it.  

We are sure there are many more scams than the common ones recorded here, if you have been subject to such deception by a method that is not registered let us know and we will ensure it is registered for the benefit of other consumers.
All matters being fair and equal, we are also open to scrutiny, if you feel or have heard from any party that our  company has in any way been involved, we invite any party to provide us a fair challenge. We are very confident that our integrity has been intact.
One can quite easily tell if an individual seller or an establishment has secure knowledge of their instruments. 

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