Re: Forced to withdraw with apologies and an important note about the economics of selling CD/DVDs Rick's advice

[doc rossi <docittern@gmail.com>]

No that it matters that much, but I did a gig in Corsica last month and 
completely sold out of CDs  - I think I had about 20 on hand - with about 
10 other people asking how they could get one. I still sell more CDs than 
downloads.

On Mar 18, 2010, at 5:58 PM, Rainer Straschill wrote:

> Rick Walker schrieb:
>> * For what it's worth, I have this gratuitous advice for the project:
>> 
>> In the past four years CD sales have almost ceased to exist for most 
>independent musicians.
>> I use to sell 20 - 50 CDs a show back in 2001-2003 and I don't even 
>take the CDs to shows any more.
>> 
>> Most artists I know who still put out CDs have gone to the model of 
>having them manufactured (at a higher but not by much
>> per CD basis) when they are sold (Krispen Hartung is a really good 
>resource for this method and has used it very successfully
>> for his releases).
>> 
>> One can even have 'one off' DVDs made that have the audio files for 
>playing in CD players and computers,
>> high and low quality MP3s for those who want iPod play, all the 
>graphics for booklets in a printable form (.pdf)
>> *
> On which I'd like to comment, as well as on David's business plan (in no 
>specific order):
> 
> I. There are more possible reasons to want to have a large number of 
>your CDs than to make profit selling them. Some people like to give them 
>away. Some are even able to generate profit out of that (using it as a 
>marketing tool; I'm too lazy to do the search myself, but there was a 
>lengthy post here some years ago by someone who gave away CDs simply to 
>generate a fan base).
> 
> II. If you decide on having physical CDs (for whatever reason), the 
>three methods available known to me for unsigned artists have their 
>different advantages and disadvantages:
> a) the do-it-yourself approach: I don't like it at all because it takes 
>a lot of work (by you) which I'd rather spend on other things (which 
>could be either making music or just getting drunk, whichever you prefer).
> Pros: manufactured on a just-in-time basis. You have full control over 
>the exact package (hey, if you want to make ten CDs in wooden cases and 
>with hand-written liner notes, you can do that as well).
> Cons: a lot of work. You need to run to a copyshop and keep track of 
>various logistics, and need to burn those CDs. You need to handel 
>everything regarding logistics (i.e. shipping it to the customer, or 
>itunes or similar online stuff) yourself. And you either have to use them 
>stupid labels (or actually pay more for printing it to disc at a 
>copyshop).
> Price example: using local (German) prices, you get for CDR, labels, 
>black jewel case and print job (2-sided booklet 4/4, 4 label and 0/4 
>insert) a cost of €1.24 ($1.69). This does NOT include burning the CDs 
>and everything you have to do yourself (including assembling the 
>products).
> 
> b) the just-in-time logistics approach - as with kunaki.
> You upload your stuff to them. You can order them from there, and you 
>got a page to sell it, and everything there (payment, shipping etc.) is 
>handled by them. You set a price, and they charge that (plus shipping) 
>from the customer, and give you your price-their price. Or you can order 
>from them at their price. You only get one option, which for CDs is 2s 
>4/4 booklet, 0/4 insert, 4 label, black jewel case. Printing is laser 
>printing, which in my eyes looks fine. 
>Example:http://kunaki.com/sales.asp?PID=PX00ZGZZXJ
> Pros: Takes everything of your back, fine product quality, good price, 
>you can order as many (or as few) items as required, and you have an 
>online store! No setup fee.
> Cons: Only one package option.
> Price example: for orders up to 10 pieces, it's always $1. For more, it 
>depends on how much "traffic" they just have - the price varies between 
>$0.75 and $1.75.
> 
> c) typical CD manufacturing place - traditional approach.
> "Traditional approach" here means glass master, and that only makes 
>sense for quantities of at least 300 CDs. Added are printing costs (and 
>again, due to setup costs, minimum quantity for offset print is 1000 most 
>of the time), and with all that, the per-piece-price starts to scale down 
>properly over 1000 pieces. Some do offer screen printing for smaller 
>quantities, but then again, this is on a quallity level equal to or lower 
>than the kunaki approach. However, depending on the place you're doing 
>it, you often have a lot of package options.
> With regard to the order handling, see a)
> Pros: Real glass-master-based CD (no CDR), professional printing options 
>available (for larger quantities), lots of package options, good prices 
>for large quantities.
> Cons: large minimum number, high prices for small quantities.
> Price example: take the place that David recommended - with the same 
>package options we've always considered and screen printing, it's $1.1/CD 
>for a 1000 CD run, but $2.7 for the minimum 300 CD run.
> 
> d) typical CD manufacturing place - low-volume approach.
> Similar to c), but using technologies fit for low volumes (CDR, laser 
>printing). With regard to package options, see c), with regard to to 
>handling, see a).
> Pros: allows for low volumes, lots of package options.
> Cons: high prices.
> Price example: too lazy now to do a proper research, but for our example 
>product, you're landing at around $3.90/CD for a 25 CD run.
> 
> Summary: for everything below, say, 800 CDs, kunaki is by far the 
>cheapest and easiest thing to do. If you want some fancy special 
>packaging, you'll either need to diy or get a big number of CDs.
> 
> III. Comments on David's example.
> With the prices of wonderdrugrecords, there's $1300 left in the estimate 
>for mastering and "everything else". As the plant does the prepress 
>themselves and David specifically asked for a volunteer for the cover 
>art, most of this (minus David's cut) can go into mastering - and I 
>firmly believe that with a goal towards high-quality work and the fact 
>that it's a compilation, this isn't necessarily too much - form my point 
>of view. On the other hand, I believe saving on the mastering might just 
>ruin the CD, but then again bring the price down by more than 50%...tough 
>call.
> 
> 
> The personal perspective:
> Yes, I'd like to have CDs to give to people. And just for the sake of 
>it, if someone (kunaki) offers a web shop service free of charge, I even 
>use it (and hey, look for the link above and buy the goddamn CD! the 
>cover art is stunning by my own standards! And I even like the music - 
>http://kunaki.com/sales.asp?PID=PX00ZGZZXJ ;).
> However, I would never need as many as 1000 (or even 500) CDs of the 
>same CD - it's just not the way my market position works.
> 
> Rainer
> 
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