This situation reminds me of something that happened to a friend who owned a bar in a disreputable section of Newark, NJ.

One day he walked in and saw a rack of potato chips on the bar. They had not been there when he left. He asked his partner how they got there and was told:

"I bought them so we could have something extra to sell."
"How much did you pay for them?"
"Fifty cents a bag. The rack was thrown in."
"How much will we sell them for?"
"Fifty cents."
"How will we make a profit?"
"We'll make it on volume."

There is a limited market for any album, especially a folk album. If you sell a bunch at a discount and make x sales, that means that you will make x times the discount less than you would have otherwise.

Get out of LaLa.