04-04-2009, 07:35 PM
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Confirmed User
Join Date: Aug 2003
Posts: 7,082
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Quote:
Originally Posted by AmeliaG
Keep in mind that most hard goods have to discount 60% off gross retail price to get wholesale distribution. Then, for the big chains, there may be deeper discounts or costs like buying rack space for featured acts like Radiohead. When you see a big display near a checkout stand, the company paid for that. And, of course, there are manufacturing costs.
That is all before thing one has been done for the promotional push that all bands want from their label.
Basically, it is not like the record companies keep 90% of the dough. Most bands can't break themselves big on their own, any more than most super hot girls can build their own massively successful web sites and DVD lines on their own.
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actually they do
Quote:
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The second thing to keep in mind, and this is a big one, is that the band does not get $1.50 for each CD sold. This discrepancy comes from the fact that the retail price of an album is different from the wholesale price, and many recording contracts pay based on wholesale rather than retail prices. These different calculations have a big impact on the amount of money a band can make.
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