Saturday, 3 August 2013

MUSIC ETHICS

I keep wandering about business ethics in the face of competition. The year 2011 was a defining year where I drew a clear and definite demarcation line about how business ought to be conducted. We have in the past 11 years collaborated with a good number of music teachers and also other music establishments. On the face of it we appeared to have managed quite well especially with the music teachers and establishments. Over the years the sinister side of the business ethics revealed itself in various forms and some of these are really very insidious and sickening. I am listing down a clear example of the obvious to raise awareness among the general public.
We were requested to provide a young cellist an opportunity to earn a living. The person who made the request did it in good faith and is musician and man of good standing. There was a sequence of events that opened my eyes  to the mechanism or progress of how  essentially good persons are drawn towards the dark side. Now the Cellist in question is quite a good teacher going by the local standards, but there were obvious areas where development was lacking, his lack of punctuality was a recipe for disaster, there was a lack of patience with students. He had something like eleven students in our music establishment which is virtually unheard of in any music establishment in the industry. I also decided that we will not work on any commission with regard to usage of our premises. In this respect he collected full fees and I decided that my company should receive nothing. The thought at that time was that  we should just develop  good teachers for the music industry. Now over the months we had students drop out and complain. I attributed the cello teachers shortcomings to a lack of experience and maturity. During this period the Cello Teacher decided to purchase a European Case and we accorded him the best possible terms with long term repayment facility with no interest applied. We also had a Luthier (Violin Maker/restorer) coming in from Italy. Now this violin maker brought along an excellent handmade cello for us to sell. We advertised the Cello for sale. Now this Cello Teacher requested for the Cello and we made it possible for him to secure the Cello. One would expect some amount of gratefulness with regard to reciprocating good deeds. I started receiving calls from other musicians who were known to me stating that he had spoken about our services in a disparaging manner and also  expressed that we were denying him the opportunity to own a good Instrument. I had no hesitation in setting the record straight by means of a documented letter. This letter was shown to person who recommended him to us who is also a Cello Teacher of many years and was also this persons teacher. During the discussion we were heard him speak over the phone to his old teacher, breaking down in tears claiming it was a misunderstanding. His Cello teacher then expressed to us that he has glaring weaknesses of punctuality, unable to keep his word, shoots his mouth off at the wrong time, and again immaturity was a key word. Now taking this into account I had a discussion with him and gave him our letter in privacy, the tears just flowed freely and he apologised. Despite his apology I was still very sceptical and wondered about his nature. I was advised to give it the benefit of the doubt. We have had a long term standing business relationship with two Luthiers who are coming in from Italy. Now we must state that there is no profit for our company when a luthier come in. The labour hours we spent just designated to this task and other elements involved just makes it non-profitable. We have one room just for repairs. The income does not cover the cost. The only stated advantage that is if one were to term it as such is that we have business exposure. To get back to the main theme, we find complaints about our products being over priced and we wonder who is disseminating such incorrect or damaging information? We knew from our internal costing exercise that we were making something between five to thirty percent profit. Later it is expressed to me by a group of musicians that it was a whisper campaign akin to what one would find in politics is targeted against us. The well used adage of a lie repeated often enough becoming eventual reality was perpetrated very successfully against us, even potential customers who had not come in to our place bought the lie, hook, line and sinker. We showed some of the regular customers and musicians our costing and the realization that they were taken for a ride sunk in very deep.
The other technique that is effectively used is the one where it is again whispered as apparently confidential information, that a certain music establishment has German Instruments which are made in China. This is spread about and customer actually believes and buy this gossip without any sort of verification.  The other tactic is to express with supreme confidence ‘ that sounds like a Chinese instrument’ – yes sir! Pray, can anyone tell me if an instrument has a racial nature? This is proverbial verbal equivalent of written claptrap and gobbledygook, the stupidity of which is equivalent to just seeing the buttocks outline of Ms.Universe from USA and Germany and expressing that the protuberance and curvature makes it looks very much like a Chinese buttocks. This is the amazing level of stupidity that we sometimes have to contend and live with.
The other technique used is to discredit a person and express by means of personal attacks, “ I have worked with the owner before and taught in his place, he is simply the kind of person you can’t negotiate with or he is very hot tempered.” The most obvious deception is when the person will not recommend or suggest that an opinion is to be sought from two other establishments or that one ought to try a few instruments.
There was also the case where this same Cello Teacher would be the first one in well before any customer would come in and he would leave instruments in our place for the Luthier to restore or set up and this seemed to happen every time. He knew the flight details of the luthier, and despite the procedure of having a rest day before one starts work, he would be there as soon as the luthier is around. There would always be the assurances that he is doing his students a favour, or he is terribly concerned about the Luithier not having enough work and very often in jest he would express  in a very subtle and inappropriate manner a demeaning statement that he is he paying for the Luthiers airfare. We thinking nothing of it at that time supported special prices that the Luthier recommended. Eventually we were very surprised when the Luthier started to bring in instruments for this Cello teacher to sell when we already had a prior agreement. It was very disappointing and extremely dishonest conduct. The Luthier himself who is a very Nobel and principled person realized this when I spoke to him and he realized that he had been totally duped or misled. At about the same time I had a discussion with the Luthier, the luthier expressed to me that this Cello Teacher was bad mouthing another musicians who had provided him housing in the early years. Even with this worst case scenario we attributed that his personal insecurity with his family financial problems may be the root cause. How very wrong we were!   Later on I met a group of parents in August 2011 at the home of an orchestra conductor; they had their instruments sent through this Cello Teacher to our place for repair. I was subsequently informed that the parents were charged exorbitant rates in excess of what we charge. This does not end here in August  2011 my staff had mentioned some defamatory remarks that were made against the orchestra conductor who was my friend and also a teacher in my establishment. What really got me really angry was that the conductor was seriously ill with pancreatic cancer with no hope of recovery. The detrimental, cruel, vicious and vindictive comments were as follows:
-                He(the conductor) deserves to die of Cancer, it is a punishment from God for cheating people.
-                He has made so much money despite stating he has none.
I was nauseated, disgusted and revolted by the venomous and vile statements, I expressed it to the conductor and he told me that he had already known about it before but did not know what to do, he also expressed that others knew about it as well. I assured my friend of full support, he called the Cello Teacher who responded by swearing to the highest heavens and professed his love and loyalty for my friend, with a measure of tears thrown over the phone. The orchestra conductor did not buy any of this persons lies.  I immediately helped to prepare a letter with the consultation of lawyers with the specific intention of suing the Cello Teacher, and his girlfriend who is a violinist for defamation. A letter was sent out whereby no response was forthcoming. In the interim the Cello Teacher had done the following:
-                     He called my staff and instructed him not to express anything to me. ( If one is not guilty, one does not need to do this) It was a very stupid move on his part and revealed the slithering, slimy snake of a character that we were dealing with.
-                     He called my friend the conductor in my presence and I could hear the denials.
Sometimes evil takes root because of a silent majority. I was totally shocked when the majority of musicians I spoke to about this matter expressed that it was no secret, he had apparently been doing this for many months to various groups of musicians and he was well supported by his violinist fiancĂ© and her mother. This was certainly a most ill conceived plan of action against a helpless individual. I was given to understand that this act was addressed to specifically be ‘ so called top dog’ as a teacher and also there was this matter of instrument sales. The theory is that this person wanted the conductors students after the conductor dies, there were others who advocated that he became like that because of the aggressive and avaricious nature of his girlfriend. I have expressed that this individual was already selfish and self serving, all he needed was a compatible partner. The conductor who incidentally was the mentor, friend and supported the Cello Teacher’s during trying times in life was deemed as a friend in excess who was disposable and dispensable. This is despicable and disgusting action that was committed on the premise that in the past not one individual stood up to any of this persons ill conceived actions, this is precisely the reason that the person with such confidence, intention and arrogance could perpetrate such foul deeds on the premise that immunity in the past accorded him the right to act with impunity. 
The diarrhoea of insidious thoughts and motives is slowly manifesting itself, according to well placed sources who have taught in the school they operate and some of these underhand methods are as follows:
-                     Offer a student an instrument and qualify with great certainty why one has to buy it. The tired and tested lines of flattery are as follows:
·       Your child is a prodigy
·        Your child is at a great disadvantage when he does grade five with such an instrument.
·       He has a great future ahead of him.
Now the person would express that the instrument is RM 75,000/-  and parent not being able to afford a lump sum payment would naturally say no and the good Cello teacher and his girlfriend would offer that a down payment of RM20,000/- is sufficient and a balance payment can be addressed with three monthly payments.
What is not realized is that the payment on the first deposit has already secured the profits. The in far as we know does not have proper authentication, information or justification of pricing. What would eventually happen is that the customer who has been seduced to purchase the instrument would naturally show or expose it to others. People being kiasu as we commonly say would think the hawkers son can have an instrument for RM75,000/- with our status we can afford more.
-         The perennial boasting of having the best teachers and best methods with a lot of name dropping is a common occurrence, the desecration of  the reputation of other good teachers names and schools are wantonly expressed.
-         The other method is to buy good will through so called charity concerts which are just advertisements disguised and coated to expose and promote oneself.
The encouraging fact in this ugly episode is that this person has lost many good friends who have disassociated themselves from his despicable and deplorable conduct. Perhaps this would serve as a lesson to the music fraternity at large to stand and be counted where there is an injustice.
There is one principal reason for this terrible behaviour and  prostitution of character - it is plain greed to make an additional dollar! If one has the audacity to sell a friend, if one would defame a friend, if one does not respect person who gave him shelter, if one cannot appreciate receiving free lessons, if one values money in excess, that is a person who can never teach. A teacher with performance skills and teaching technique is not exceptional if he/she lacks that which we call the steel of character, discipline, dignity, honour and goodwill. The question that one should also ask what are the values that Children and others will pick up from such a teacher?  The nobility of the profession demands that we develop our character to the highest order to serve other. The sincere disposition to always be at the service of young lives is an unwritten law that is unconditional and crosses the boundary of legalisation and profits.
With regard to instruments, take it from me a good German instrument, bow and case that can be used up to one’s first diploma’s is not going to exceed RM 10,000/- and this with proper testing, warranties and authentication. There are establishments that have good instruments and are of more than ten years in the business. I will be quite happy to forward details to any party who would like to receive this.

I advocate that competition in business is a platform for excellence if one were to use better products, pricing, branding, integrity and service complimented with a genuine desire to ensure that everything is to the comfort and convenience of the customer. There must also be human respect for ones competitors. If we encompass values that resonate and have this disposition then the business is dignified and everyone is a winner.  

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.