Is Music Overpriced?

[Anderton]

Think about it...maybe that's what Napster is all about. When my first CD (as opposed to vinyl) out in 1989, I signed a contract that specified a fairly standard royalty rate, even though CDs were expensive, because the companies were "certain" that like other aspects of technology, the price would come down. They didn't want to be stuck paying a $1.75 royalty on a product that cost $9.95.

 

But the prices didn't come down. Now CDs are cheaper to manufacture than every before, but prices are creeping up! What's the hell's the story with that?!?

 

If you keep raising the prices on commodities, fewer people can afford them. That's Economics 101. If record companies are truly concerned about sales, they'd make the hot-selling CDs list for $9.95, not $18.95.

 

So we'd all like to think that our music is worth something, that it has value. But is a CD really worth what we're paying for them?

 

Tangentially, I just finished my new CD, "The Naval Escort Remixes." I'm debating whether to get it duplicated, fancy printing job, etc. and selling it for $14.95, or just running them off as a CD-R on demand, printing up my own labels, and charging $9.95. Which do you think is a better way to go?

 

Have record companies gone to far from the consumer's standpoint? Is most music actually worth $18.95 a CD?

[alphajerk]

where are you buying you cds??? i get all of mine for $10.99-$12.99. you could be like dischord records and sell them manufactured for $10ppd. after all there is so much profit in these buggers.

 

besides your topic shoud really be is music equipment overpriced. i mean $500k for a freakin mixer!?! $5k for a mic!?! a HOUSE costs $500k [and a very nice house i might add], at least mic's dont cost as much as a car [although some of the top ones cost as much as a civic, id rather have the mic]

 

craig, seriously i have thought about this a lot lately as i have some releases due up soon. the problem with manufacturing cd's is the 1k minimum to get it at a decent price. who wants that much stock? i've seriously been thinking of going the self made route at 100 a pressing. the other route i have been looking at is the 12"'s, $0.81 140gram vinyl with a 100 minimum. sans setup fees thats ONLY $81 per hundred, of course only diecut sleeves. even with the CHEAPEST cdr DIY you looking with a full color label [preferably high gloss] your still looking at $0.30 without the jewel case, with full color insert and traycard it brings each unit to @$1.50 [the jewel case, cd, full color insert, full color tray, full color high gloss label, ink cartridges, time], its the same as manufacturing without the minimum and its PROFESSIONAL. i mean i use glossy photopaper for inserts and high gloss label and it still doesnt compete aesthetically with manufactured even with some great design [its unbelievable for comps! to have all this power at my fingertips is something]. now i have die cut sleeves in B/W that make the CD's look like little records which bring the cost back down to $0.40 but...

 

the other thing i am thinking of doing is setting up my screenpress and silkscreen the CDR's, i dont think the manufacturers bulk rate would be as low as that route, take care of the inserts professionally with a printer, assemble yoself [or a hot intern], etc. sell it for $12.99.

[Uh Clem]

Craig, if they were $10 in '89 (I don't remember), then with inflation, the $10-$14 I pay these days seems about right. The only thing I've paid more for is doubles, imports, or "special" edition stuff.

 

I'm pretty sure the marketing guys are in tune with econ 101 and then some - if the demand dips below supply, consumers will know soon enough as the bargain bins fill up.

 

Frankly, I wish I had more time than money WRT music access. I even have CDs that are still in the wrap, stacks that friends have "given" me to listen to, and my old favs I'd love to get back to as well.

 

What I'd really like is a plethora of new material to come out so exciting and compelling to buy that I would worry about the price.

 

Alpha - FWIW, I checked into screening - seems like a huge pain and lots of expensive equip (what would that be like?), but let me know what you find out. I went with a Rimage Color about a yr ago. It is fine for demos, small "personal" runs, etc. and I've even seen some small acts selling stuff like that at gigs. It doesn't look anything like a great screen job though. I think it is fine until you need around 300 or more - then you move up to Discmakers or similar.

[Curve Dominant]

The extra $5 or so that you pay for a CD at a commercial chain store such as Tower Records or HMV goes to overhead: the hired help (and minimum wage has been rising over the years), storage costs, billing, rent on those prime locations they count on for traffic, corporate infrastructure, etc. The "hot-selling" CD's will always be priced higher, based on the principle of supply-and-demand.

 

The record companies are not the only factor in the client-side cost equation: the retailers are actually a stronger influence, because they are on the front-line of the economy. Yes, the record labels will inexorably pad their expenses, as will any profit-motivated business. It is incumbant upon artists who enter into business arrangements with these companies to voice their concerns regarding cost efficiency, and then follow up with pro-active solutions to reducing the end-expense. These savings can be passed on to the retailers, who would gladly embrace the opportunity to increase traffic due to the added value of lower retail prices. The key here is co-operation: the artists, the labels, and the retailers must work together to arrive at solutions that gradually whittle-away at the end-cost. Continuous improvement towards this objective will eventually bring the price of CD's into equillibriam at the retail level.

[alphajerk]

dont forget about the distributors cut.

[Philip OKeefe]

Craig Anderton said:

 

>>When my first CD (as opposed to vinyl) out in 1989, I signed a contract that specified a fairly standard royalty rate, even though CDs were expensive, because the companies were "certain" that like other aspects of technology, the price would come down. They didn't want to be stuck paying a $1.75 royalty on a product that cost $9.95.<<

 

 

That was very common. Some artists even got stuck with royalties that were less than standard on CD sales because of the initial high costs of manufacturing. Of course, now that the manufacturing costs are lower, they'll still get the same rate regardless.

 

 

>>But the prices didn't come down. Now CDs are cheaper to manufacture than every before, but prices are creeping up! What's the hell's the story with that?!?<<

 

 

Can you say *greed*? http://www.musicplayer.com/ubb/wink.gif

 

>>If you keep raising the prices on commodities, fewer people can afford them. That's Economics 101. If record companies are truly concerned about sales, they'd make the hot-selling CDs list for $9.95, not $18.95.<<

 

 

Record companies are concerned with profits, not just sales. Manufacturing costs and total amount of records that they can sell are issues when calculating profit margins, but there's lots of other concerns. How much are they paying for recording budgets? IMO, it's been too much. Sorry, but I can't see where mid six figure budgets are making the music itself all that much better on a cost vs. benefit basis. How much are they paying in mechanical royalties? That's been going up a bit, but that's still peanuts. Artist's royalties? Artists usually still get a disproportionate share of the wholesale price IMHO. Marketing budgets? huge, and getting worse. (BTW, this is the one thing a major label has to offer an artist that is difficult for them to obtain on their own - massive exposure). Wholesale price to distributors? Well, since the record companies usually have their own distribution company under the same "corporate unbrella", this is funny money and so I'm not even going to count it. Sure, transportation costs have gone up, so you might have to consider that. Retail price? Well, in the end, the retailers set that based on their costs and what the market will bear. We've been in pretty good ecconomic times for the past few years, so the market has been less begrudging about paying the higher prices.

 

So, even after taking all that into consideration, I'd agree with you. CD's are overpriced. One thing that has slipped the notice of a lot of people is that music isn't the only game in town (pardon the pun) when it comes to entertainment dollars. Kids today (and they're the biggest record buying demographic) spend a lot of their disposable funds on things like movies and videogames. Who's to say which is the more engaging entertainment (I'd vote for music, but I'm an old fogey) but when you consider that video games sell for anywhere from $20 - $60 each, CD's start to look like a better bargain. Since CD's have to compete not only with other CD's but also with other things like the gaming industry, then you'd think that the record industry would wise up and LOWER retail prices in an effort to maintain or expand their percentage of the money being spent on entertainment.

 

 

>>Tangentially, I just finished my new CD, "The Naval Escort Remixes." I'm debating whether to get it duplicated, fancy printing job, etc. and selling it for $14.95, or just running them off as a CD-R on demand, printing up my own labels, and charging $9.95. Which do you think is a better way to go?<<

 

 

Congratulations Craig! Well, either way you'll be acting as your own record company, so you'll be in a better position than a lot of people. You'll have all the responsibility and work, but you'll also have all the control and profits.

 

I haven't heard your music, so I can't say how *commercial* it is. (Insert a VERY sheepish grin of embarrassment here. I'd like to buy a copy of the new CD though, so add me to the list). However, being as well known as you are, I'd imagine you have a pretty good "ready made market" for your stuff. If that's the case, I'd suggest that you consider doing the CD-R route. Get a good on disk printer (tax write off) and use that instead of stick on labels. Alpha's right - you can do pretty darn good inserts nowdays at home, so that's the route I'd take. Personally I don't care for shrinkwrap (not earth friendly stuff) so I'd forgo that. The audience I imagine you have is probably going to be less interested in super frilly packaging and more interested in the music, or at least interested in hearing it just to see "what kind of music this smart guy who writes these columns I read every month" puts out. http://www.musicplayer.com/ubb/smile.gif

 

Let me know when you've made up your mind and have units ready for sale. No matter HOW you package it, I'll buy one. As long as you don't want $30 for it http://www.musicplayer.com/ubb/biggrin.gif

 

 

Phil O'Keefe

Sound Sanctuary Recording

Riverside CA

http://members.aol.com/ssanctuary/index.html

email: pokeefe777@msn.com

 

This message has been edited by pokeefe777@msn.com on 02-06-2001 at 02:35 AM

[jraffertyuswest.net]

I would keep it inexpensive. what is more gratifying? More people having your music at $10.00 a pop? Or less for $18.00. (I am assuming you have plenty of gigs to generate income)

 

Money can only buy so much. Sharing your ideas and expression with as many people as possible can give you something money can't. Sounds corny but I think it is true.

 

Maybe have them duplicated for speed and reliability sake say 200 at a time. But keep the graphics down and still sell on a as needed basis. I think dupes are down to like 2.00 a cd now for everything if graphics are simple.

 

My .02,

-Josh.

[Philip OKeefe]

Jrafferty said:

 

>>I would keep it inexpensive. what is more gratifying? More people having your music at $10.00 a pop? Or less for $18.00. (I am assuming you have plenty of gigs to generate income)<<

 

I'd agree - this is why I'd keep it simple too. Get it out there to as many people as possible. Frilly packaging is good for inducing "impulse buying" at retail outlets, but probably not as big a deal for what you do Craig. You'll make less per unit (I can't see you spending the ENTIRE extra $5 on the duplication and packaging) but you'll make it up on increased volume of sales. People are more likely to order something they've never heard if the price is $10 instead of $15.

 

 

Phil O'Keefe

Sound Sanctuary Recording

Riverside CA

http://members.aol.com/ssanctuary/index.html

email: pokeefe777@msn.com

[alphajerk]

steve, actually screenprinting equipment isnt all that expensive. then again, ive been screen printing for many many years so its all second nature and wouldnt take me as long as somebody who hadnt done it. once you buy the initial setup [which is easily under $50], build your template, and go... its a lot cheaper than labels, ink/toner. it would only be 1 color instead of full color capability but it also wouldnt have a sticker for a label.

[Philip OKeefe]

Hey Alpha:

 

A question came up in Chris Stone's area ("introducing Mr/ Ms...") Do you ever sleep? I thought *I* spent a lot of time posting here, but my goodness, you've got 10 times as many posts on here as I do! How DO you do it? And run a studio? And another business? And eat? http://www.musicplayer.com/ubb/smile.gif

 

 

Phil O'Keefe

Sound Sanctuary Recording

Riverside CA

http://members.aol.com/ssanctuary/index.html

email: pokeefe777@msn.com

[alphajerk]

sleep is for the dead. but i tell you, lately i have been burning the short end of a stick of dynamite. its the art of scheduling, balance, and multitasking. i can do up to 5 things at once easily. its funny too. i work with this one guy who when hes patching a cable or setting something up cant be talked to, im standing there setting up something, chewing gum, talking, and walking around. i dont post during the day much due to my son or a recording session and at night i post taking breaks from animation [TEDIOUS! hence the posting] not to mention ive been posting for almost a year.

[the stranger]

Have record companies gone to far from the consumer's standpoint? Is most music actually worth $18.95 a CD?

 

Most music? No.

 

But I wouldn't hesitate to pay a lot more than that for any of the classics. (Examples would be opinion, so... http://www.musicplayer.com/ubb/smile.gif)

 

Yes I do think CD's are way overpriced. I think this is the single most important issue, when it comes to the Napster debate.

Not to mention, what are they thinking??? The key to profit in todays world is quantity. Less profit margin per item, but WAY more units sold.

Volume. This is the key. Wal-Mart didn't get to be the biggest retail store in the world buy overpricing.

 

What pisses me off, is that I pay these inflated prices, but I'm feeding the business side of things infinitely more than supporting the artist.

IMO, I think the artist should get, at the least, 20% of the sale of every CD. And if the stupid record industry would get a clue and work from a volume standpoint, the artist could possibly get even more.

I believe this would work because CD's would be flying off the shelves. They would probably be having a hard time keeping up with the demand. Every involved party would stand to make a lot more money.

I really think if CD's were 7.50, sales would probably be four (or more) times what they are now.

So, if they sold twice as many units (at 7.50) as they do now, they would be making almost (2x manufacturing cost+increased artist royalty) the same money. If they were selling 4x the units, they would be almost making twice as much as they are now.

Plus, if royalties were 20% of each unit sold, wouldn't this equal more artists willing to stick it out and get in the business? Meaning more product? Meaning more music to sell?

[Tusker]

Originally posted by Anderton:

Have record companies gone to far from the consumer's standpoint? Is most music actually worth $18.95 a CD?

 

I think the problem with most cd's these days is that price is independent of quality. If you go to a restaurant, you can order a steak, or you order a milkshake. With music, you would be paying the same price for either. Also, you don't always know what you bought till after you paid for it. Or what the quality is.

 

If you think of me as a john q. public... I would be willing to pay a higher price for a) hard to get music (distribution) such as south indian tabla, b) quality of playing and recordings (I'll pay extra for a good pianist with Berlin Philharmonic on deutche gramaphone even though I also have cheap, eastern european orchestra CD's as well) or c) I would be willing to pay for an extra experience.......

 

Craig, if your music can provide an additional experience (characters, plot, mood, poetry, art, imagery) through the packaging process I would go for the higher priced option. If the music on this CD stands on its own and should stand on it's own... I wouldn't.

 

I suspect that the one price model will break and is breaking in a sense. The channels are setting the prices not the producers, and the channels are organizing by values other than music content (lifestyle, image, demography, etc.) Producers should use some of the same theory, in order to secure and distribute the value that these other characteristics provide.

 

(Hah, here I am offering advice to the gentleman who should be advising me.)

 

Hope this helps,

 

Jerry

[MusicMan]

I think going your own route with duplication is the answer for now... if demand increases to the point that you can't handle the orders, then have them duplicated professionally.

[gearmike]

Hey Alpha,

 

Do you know of anyplace you could point me to get info on DIY Screen Pressing? I recently got set up for doing Iron On type transfers and am interested in printing some shirts in house. Let me know how the screening on disks comes out...

 

Mike

[Chip McDonald]

Originally posted by Anderton:

selling it for $14.95, or just running them off as a CD-R on demand, printing up my own labels, and charging $9.95. Which do you think is a better way to go?

 

I think you need to use your lofty position as "Recognized Industry Media Figure" to pull some strings over at MP3.com to allow uploads of 16/44.1 files. Having the ability to make very small runs of CD's made with nicely printed inserts/cover is very convenient at $6.00 the way they do it; if some company were to offer a similar service but with CD quality it would be even better... a nice intermediate step between burning copies on your PC and having to order a run of 500 from some cheapo company and hoping for the best.

 

http://www.mp3.com/chipmcdonald

[Chip McDonald]

Originally posted by alphajerk:

buy the initial setup [which is easily under $50], build your template, and go... its a lot cheaper than labels, ink/toner. it would only be 1 color instead of full color capability but it also wouldnt have a sticker for a label.

 

Less than $50? EQ should get you to write an article on how to go about this....

 

What kind of ink do you use? Is it safe for CDs? How many prints can you get from one screen? How do you manage registration?

 

http://www.mp3.com/chipmcdonald

[Archer]

I think there may be a direct relationship between high prices and pirating. When VHS was first introduced, they cost upwords of $150, everybody was copying them, for some time now you could buy a movie for as low as $5, why buy a good blank tape for $10 when you can buy the original for cheaper?! All this talk of watermarking and copy protection makes no sense to me, the ONLY way to stop someone from copying something is to 1.make the penalty so high and enforcable no one is willing to take the risk, or 2. make it so it's not worth it! If the powers that be would stop and think, they would see that nobody would be copying or downloading songs if they just lowered prices.

[digitalia]

what bugs me is how some bigwig dufus - i think it was Paul McCartney, correct me if im wrong (and my apologies to Paul if i am...) - recently sold his "album" thru the internet ONLY as mp3s, but FOR THE PRICE OF A CD! here they were cutting out reproduction, packaging and shipping costs, but still asking like $17.99 for it. the worse part is im sure people were dumb enough to buy it...

 

record companies need to get a grip. if they would realize the potential of distributing music online (which some have, the others just need to wake up and smell the technology) we could be a happier race. the idea of squashing the mp3 format altogether was apparently batted around too. how much would THAT suck for us up and coming musicians?

 

just imagine what the record companies would do if radio was just coming into play about now...

 

peace

diGitaLia

http://www.mp3.com/011001

 

ps: Craig - where can i get your new CD? i'd buy it direct off you, just dont tell me i need a credit card....

[jimmyripphotmail.com]

Y'all,

 

My personal experience says that 'cheaper CDs sell better'. I know that if I go into a national chain like Tower, and buy music at $15.99 a cd, I only buy one or maybe two. However, whenever I step into a Best Buy and all of the CD's are $12.99, I walk out with an armfull. The $3 less seems to make a big difference, although I end up spending more money in the end.. Doh!

 

 

 

------------------

Rob Miller

Philadelphia, PA

www.bklounge.net

[alphajerk]

maybe i shouldnt have mentioned the screenprinting technique. but since yall asked, ill post a quick guide later when i have some time. quick answers, you can use the screen and many times as you like, even take off the emulsion and do another job on the same screen [although its better toget a new screen perjob if you are going to be reprinting for the same job over and over]

 

i will add that screenprinting like anything takes a little time to learn so its not for the beginner really. will post a quick guide later.

[trick fall]

One thing I've noticed lately is that some older titles are finally coming down in price. I've personally all ways like sifting through the 10 dollar rack at Tower.

 

It's also helped me turn my fifteen year old nephew and his friends to some cool stuff. It's funny they're all punks who've never heard of The Clash, Sex Pistols, Dead Kennedys, Circle Jerks etc. If the discs were 18-19 bucks I prolly wouldn't get em, but when I can get this kind of stuff for em for ten I'm like hell yeah.

[Chip McDonald]

Originally posted by alphajerk:

the emulsion and do another job on the same screen [although its better toget a new screen perjob if you are going to be reprinting for the same job over and over]

 

So you're probably talking about using photoemulsion, right?

 

The only thing I'm really curious about is how you handle registration: you can't put something up the middle without pushing up on the screen, and you can't make a square frame for the CD because you couldn't pull the squeegee across it fully, unless you made a really thin box?

 

 

http://www.mp3.com/chipmcdonald

[Guest]

The record companies are not the only factor in the client-side cost equation: the retailers are actually a stronger influence, because they are on the front-line of the economy.

 

Actually didn't someone sue the record companies recently because record labels were trying to force retailers to charge higher prices.

 

I might be wrong but I'm sure I read that somewhere.

[Punchmo]

Yeh, I think we are paying too much for commercial cd product.

 

I also think the issue of needing to get 1000 cd's for an independent release to keep the price down has gone away. Ok, they are in the $2.00 + range now. You can now get 100 cd's at $3.00 to $3.50 each depending on how many colors/pages for the artwork and what you supply as artwork. I recommend to all my clients to go easy on the quantity and pay a buck or 2 more and charge $10 to $15 depending on whether it's a 6 or 10 song product. Too many acts go for 1000 cd's and a year later have more than half left in inventory. This is easy math! And. re-orders will be less. Cd duplication competition has created this scenario. Glad I didn't get into it.

 

Craig's release may well be a different story.

 

I hear too often that a group recording their first project wantin to get a 1000 cd's. NO NEED.

IMHO, sp

[alphajerk]

"The only thing I'm really curious about is how you handle registration: you can't put something up the middle without pushing up on the screen, and you can't make a square frame for the CD because you couldn't pull the squeegee across it fully, unless you made a really thin box? "

 

im not sure what you are referring to here. the one downside to cheap silkscreening of a cd is only one color [of course most manufacturers for the low price is only 1 maybe 2 colors]

 

see if any of this answers your ?.

 

first of all, you need a frame [usually wooden, the metal are more expensive but very easy to build and stretch screens. much more accurate tension] and some screen. i cant remember the thread count from last time i did this but im looking into it in the next week so i will know [somewhere between 130-200tpi im guessing]. a squeegee and some water soluable ink [laquer based eats right through the top of the cd and will destroy your screen, i speak from experience]. with the wooden screen you simply stretch the screen over the frame using cord in the groove of the frame or a staplegun.

 

 

there are two kinds of emulsion [well more but for sake of lazyness] 1.] liquid emulsion that comes in two parts that you mix and spread on the screen and let dry in a dark place until you burn. and 2.] film based emulsion [what you really want to use] that you simply place on the wet screen and dry in a dark place then peel off the clear backing when you are ready to burn a screen.

 

you will need a "press" and in the simplest solution a wooden board bigger than the screen by a couple inches on each side. some hinges which you will mount at the top of the board and attach the screen to.

 

and some posterboard to cut a hole the size of a cd so it holds the cd in place and lets the screen release off the cd after pulling the ink. if you are really smooth with wood, then you can route a circle out of the board but then you have to deal with proper registration at screen burning time. the posterboard will allow you to move the circle around until it registers with the screen and then tape it in place. it also give you the chance to pull multiple cd's at once depending on how many you burn on the screen.

 

basically you set this all up and when working properly you throw a cd in the hole, pull the ink and then take out and let dry. in fact with multiple screens you can actually do as many colors as you have screens for with the one stipulation that you have to place each successive pass exactly right in the posterboard template, you can actually overlap this type of screenprinting so when doing your films, make for liberal trapping on the seps [if you dont really know what im talking about here you can find it in most libraries dealing with graphic design and prepress techniques].

 

i know that was pretty lame directions but most books can tell you this WITH pictures. its not difficult nor is it expensive [not printing tshirts is another story, that can cost a bit to initially setup and you gotta have the space for the equipment]

[Uh Clem]

paste this: +CD +silk +screen +equipment

 

into altavista and party down on the info...

 

and this tip...

 

"...you can buy equipment for silk screening the CD-Rs yourself. You need to use a UV curable ink if you are going to silk screen, so that the ink colors will not run together. You also need to be sure that the UV curable inks do not contain any chemically active components that can affect the disc after the curing process. Likewise make sure there are no abrasive particles in the ink pigments that can damage the protective layer of the CD-R disc."

[artnoiser]

I have pretty much stopped buying any music that costs more than $13. I know that artists get hurt by this, but if I am to grow musically, emotionally, and I want to buy 5 cd's, instead of paying a whopping total of $65 plus tax, I can just as well walk into a used cd store and find cd's for around $9 each (lately only purchased thruogh the internet). For 5 cd's, the difference is around $20, and that, my friends, is two more cd's that cost $9 and some change, instead of just one cd and a burger.

 

I do love walking into the store, grabbing the brand new cd (even better when it's a new release), thinking "this is the best cd I am buying this month/semester/year, walking out of the store, gettin' in the car, taking it out of the bag, patiently take the plastic off, open the cd and...uh, I smell it! I like the way new cd's smell. But the thrill comes when I put it in, and give it my first listen...so many arrangements and sounds I didn't expect (if it was a good buy), so many things I would have done differently (but that's the reason I bought the cd, because it's someone else's music).

 

Uh...what just happened..., where am I...("you eediot!" kind of moment with dramatic orchestra and silence)

 

(Soft classical music) I also wanted to say that I agree with pricing cd's aroudn 10$ (if I haven't already). I have forfeited buying cd from cool indie acts that I was hearing the first time in the club just because they were 15$. It's not THAT much money, but on the other hand, yes it is.

 

And there it is, my opinion.

 

artnoiser

"What doo you meen you don't agree with mee! Doo you know who you're deeling weeth!"

[Chip McDonald]

Originally posted by alphajerk:

board but then you have to deal with proper registration at screen burning time. the posterboard will allow you to move the circle around until it registers with the screen and then tape it in place. it also give

 

That's what I as looking for, thanks... Seems a bit more time intensive than I want to commit to, though.

 

http://www.mp3.com/chipmcdonald

[michael saulnier]

Craig,

 

I wonder whether you would see a significant difference in the sales of your CD at the different price points.

 

Elasticity of demand works best in a setting where there is a commodity product that most consumers want and where buying decisions are based primarily on price. In other words, you offer decent bread for $.75 while everyone else is selling their similar quality bread for $1.25 you'll see your bread flying off the shelves.

 

On the other hand if you've spent the marketing $'s to built the "value" of "Craig's Bread" brand in the mind of certain consumers over regular old bread, you might be able to charge $2.50 for it and still sell a lot.

 

Craig, I believe your music is not a commodity, rather it is a "brand" based product.

 

In your case, the "potential buyer" of your CD is most likely to be influenced to buy because of your name recognition, (the "brand" from your publishing career), not hypnotized into wanting it solely by constant daily air-play.

 

If they want "Craig's CD", based on their recognition of your "brand", they are probably willing to pay "market value" (regular prices) for it. If they don't know your "brand" I'm not sure if you will attract them at any price without significant additional marketing expense and probably some airplay rotation.

 

No offense, but your music is probably not an alternative for the "music commodity marketplace", (the latest Brittany, Backstreet, N'Sync, Mandy Moore CD's, and so on...), in the mind of the main market, the teen "consumer". Even within those consumers who "know" your brand, you'd have to sell 50% more CD's at $9.99 than at $14.99 to make the same gross revenue... I'd be wary of betting on this.

 

Most CD's are sold on "brand". Notice there is little in the way of "price wars" in the music industry. Especially with major label artists, the prices only vary by a buck or so between releases regardless of genre, artist reputation, prior success or other factors. New major label artists typically charge as much for their CD's as established artists, and so on... Also notice this is not a "cost" based price structure. There's no direct price link to the variances in artist royalties, or recording, distribution, marketing, and other costs...

 

One of the few examples of "breaking" the pricing rules goes back to the success of the "Frampton Comes Alive" album in the 70's. For those that don't remember, this was a double album, but priced at the level of a single LP. ($5.99 or something?) Anyway, this broke the "rules" for charging "double" for a double album, and combined with the heavy airplay rotation... it became the biggest selling album of its day. Considering its success, it's funny that there haven't been many other examples of "price-based marketing" like this.

 

So... my advice is... stick to your guns, charge the going rate, use promotion if you want to discount... AND... send out a few freebie's to "influencers" who can "seed" your CD with other buyers. You know like those great "influencers" who post on your forum! http://www.musicplayer.com/ubb/biggrin.gif

 

Good Luck and let us know what you decide!

 

guitplayer