On Wed, 23 May 2001 14:45:35 -0400, you wrote:
>> That's right, but to begin with, half of it goes to the retailer. You
>> can start calculating CD "profits" at more like $7.50 per.
>
>This is incorrect, at least in the US. Retail markup on CDs is typically between
>15% and 30%, depending on the release, the quantity ordered, and the discount
>structure. It's been a few years since I've worked in record/CD retailing, but I
>don't imagine that the situation has improved for the retailer. Typically, a CD
>that retails for $14.99 costs the retailer about $12.00 (sometimes more,
>sometimes less). This is for retailers that don't sell at the list price; for
>those that do the margin is, obviously, somewhat more.
Your'e right, Craig, by and large - I was trasnferring print music
margins. I got hyperbolic becuase somebody suggested CD prices were
high because artists were making $40 miilion. No doubt the "record"
marketing industry exploits the market like every other industry. I
think there's a large amount of variation, though, as CD's are almost
all bought by the retailers through jobbers, whereas the majority - at
least in my experience - of print is direct. With return priviledges
in the case of bookstores, which certainly offsets the small margins.
Do CD retailers have that option?
Ken
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