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Steinway is the legendary producer of the world’s finest pianos and is scheduled to IPO this summer time at an estimated valuation of $1 to $1.5 Billion.
Steinway was established in 1853 in Manhattan by Heinrich Engelhard Steinweg (later often called Henry E. Steinway). After we discuss model recognition, it might be tough to get higher than Steinway. It’s in a world of its personal, and you’ll hope so with its name-brand pianos costing between $60,000 and $340,000. However this price ticket is supposedly justified by its superior craftsmanship, high-quality supplies, and centuries of fine-tuning.
In the present day, 97% of live performance pianists use Steinways, together with massive names everyone knows and love like Billy Joel, Elton John, Taylor Swift, and Cole Porter.
That being stated, the corporate solely produces about 3,500 Steinway pianos a yr, with the remainder of its gross sales being generated by its subsidiary manufacturers. For pianos, this consists of the Boston and Essex manufacturers that are inbuilt Asia to scale back prices, and are focused on the upper-middle and center market phase. These manufacturers symbolize about 31% of Steinway’s piano gross sales.
Past pianos, Steinway additionally controls the Conn-Selmer household of manufacturers, a producer of band devices.
Nevertheless, I don’t need you to suppose that Steinway is all about economical choices. Probably the most latest improvements which have helped it develop income and bolster margins is the Spirio piano. It solves the age-old query: “How do you promote a piano to somebody who can’t play the piano?”