RE: average loop music CD price

[buzzard@world.std.com (Sean T Barrett)]

>In order to make something, you must sell your product with a profit.
>Assuming that the raw cost of making copies is $2, plus to cover the 
>expense
>of studio time, mastering, etc., let's say it is $2.  Since you want to 
>make
>a profit, you would normally charge twice what it cost you.  This used to 
>be
>standard, but is being eroded in the equipment manufacturing industry, but
>not the software industry.  That makes it $6 to the retailer, who also 
>wants
>to mark up 100 per cent to cover his overhead.  Now you have $12 at 
>retail,
>assuming everybody gets "fair" markup.

Great logic, but clearly the numbers are wrong, as CDs
are supposed to be cheaper to manufacture than vinyl LPs
were.  As you should recall, it was claimed when CDs were
introduced that their significantly higher cost was a
temporary measure until they became popular.

Apparently, though, they determined that the market would
bear the higher price, so they didn't bother lowering it.

It's basically the law of supply and demand when there's
no competition.  (Sure, there's plenty of competition for
your generic music dollar, but if you want to buy an album
from musician Z, you pay a price determined by the sole
manufacturer of that music.)

Sean