Web directories Web Analytics Learning Guitar-Making Your Own Music Learning Guitar-Making Your Own Music: Jul 24, 2011Learning Guitar-Making Your Own Music

Sunday, July 24, 2011

Making Your Own Music-Mid Price And Budget Records

Mid-Price Records

Budget Records

When making your own music, you should know about record pricing. After a record/album has had an initial run in there current release, it is known as what is called a catalog item, meaning it's listed in the company's catalog of available titles, but isn't being currently being promoting to the public. Some catalog items are issued at mid-price, meaning a reduction in price that's designed to encourage consumers to buy older titles. Today, a typical mid-price for a CD originally released at $12.05 would be $7.75 to around $8.00. The contractual definition of a mid-price record is one with a PPD between 65% and 80% of the price for newly released top-line records. Some companies go as high as 85% for a mid-price.


The royalty for mid-price is usually 75% of the U.S. basic rate. It is 7.5% if you have a rate of 10%. This sucks because the royalty rate is lower and the PPD is also lower. The record label can justify this because their wholesale price is less, and accordingly so is their profit margin. Their thinking is that a lower price will generate extra sales to more than make up the lost revenue. As you gain clout, you can get negotiate a period of time after initial release before a record can be sold at mid-price usually between 12 and 18 months. This provision use to be easier to get than in today's music industry. In recent years it's become routine to issue catalog items at mid-price, and also because of the developing artist. If you do get restrictions, it will be for the U.S. This is because in some foreign territories, mid-price is customary for the first release. Presumably, your interests and the record company's are the same, since they want to maximize their profits in that territory. Thus they won't put something out at mid-price unless they believe the reduced price will promote enough sales to justify the lower profit margin.

Budget Records

The next step down from mid-price is budget, which means the company doesn't think it can sell the stuff unless it knocks the price way down. these are records that are stuck in the bins of stores saying "Big Savings", or "Reduced Price." These are records sold around 8 dollars or less. The contractual definition of budget records is one with a price of less than 65% of the top-line price, but sometimes there is no mid-price definition and contract says everything under 80% of the top-line price is a budget record.


The royalty on budget records is 50% of the top-line royalty rate, or 5% in our 10% rate. If you have any clout as an artist, you can hold back budget record prices for a period after initial release.

Music Software

Home Recording Software
To make music beats of your own, I recommend this product.
After you buy this software please send me your email in the comments box below for a chance to win $500 in music equipment!