The Mudcat Café TM
Thread #36281 Message #501077
Posted By: John P
08-Jul-01 - 10:04 AM
Thread Name: STIFFED BY RECORD COMPANIES ?
Subject: RE: STIFFED BY RECORD COMPANIES ?
Liz the Squeak, The reason that CDs cost so much is because of the number of people who need to get paid from each one. Starting with the retail store, which needs to mark the price up by 40% - 50% in order to pay the bills. If you think that is a lot, try renting space in a retail zone, hiring employees, buying inventory, and paying all the bills. Then there is the destributor, who usually marks the CD up 20% or so. They have all the same concerns as the retailer, except they have to pay a lot less per square foot for a lot more space to have a warehouse instead of a retail shop.
So, if you pay 15.00 for a CD, you can assume the retail shop paid 9.00 for it. The distributor paid about 7.00 for it. If it was recorded through a record company, they have to pay their employees out of that. And the studio costs. And the printing. And then the musicians need to get a few pennies as well . . .
It would be nice to have all the sales come over the internet from home-produced CDs. But can hear the difference very quickly between a home done CD and a professionally recorded one. And that wouldn't really affect the price anyway. Anyone who produces any product and sells it themselves for less than the retailer can sell it for soon finds themselves with no retail distribution. And as great as the internet is, it still hasn't replaced the music store.
We're talking about folk music here. No one is getting rich, which is what I assume you think when you talk about getting stiffed on the price. Please believe that if it were possible to deliver a quality product in an ethical way for less money, we'd be doing it.