May 6, 2003
I frequently rant about record
I frequently rant about record store chains that seem to be in the real estate business. They rent space and sell pricing to record labels. When you break down these proposals for a little label like ours, it comes to some outlandish cost per sale, sometimes well beyond the retail price for the CD. Naturally we pass. We are a label that makes what little money we do by selling records, unlike the majors who are divisions of ponzi schemes, I mean, publicly traded corporations. Every day I get proposals for ways for us to transfer money to chains that would never normally carry our stuff. Why, if we send $1,200 to Big Brother Record Chain they will buy 20 (!) copies of whatever title we are sending them! And, seeing as how they will do diddly-squat to actually sell those (why would they, when they clear a margin like that without trying?), in three months they will return 15 of them (two of which will be too shopworn to ship to another store)! Wow, a cost per sale ratio of $240! I would be crazy to pass up an opportunity like that.
The moral of the story? Support your local independent record store. If your local independent record store has been driven out of business by major chains who obviously don't care what they are charging, because they make their money from extorting from labels, then try Down Home Music for all of your folk, jazz, world and country needs or The Musical Offering for your classical needs.
When I started this Blog, I went and got one of those accounts at Amazon that rewards me with a few pennies when I refer readers to Amazon. I decided this weekend that I am not going to link to them. Amazon.com is a good, honest merchant, but the situation for the local independents is dire. They need your support. So, if I recommend a book or record, I will not be posting an Amazon link. Sorry for the inconvenience, but in the long run you will be doing yourself a favor by keeping money in your local community.
Posted by erik at May 6, 2003 11:02 AM | TrackBack