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| From | "Michael Adelsheim" <madelsheim@adelsheimvineyard.com> |
| Subject | Re: Years late, Universal cuts CD prices to combat poor sales |
| Date | Fri, 19 Mar 2010 12:52:41 -0700 |
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Twice in a row now - when I've tried to respond to a thread - I get told
that my entry is to long (somebody fix this please!!!), here's what I
added to the discussion a few minutes ago,=.
Having heard the report on NPR this morning, here's a response I just
made 30 seconds ago.
"As a music lover who also has friends working at what we used to call
record stores, I would like to provide a bit of context to the report
that Linda Wertheimer read this morning about Universal Music's decision
to run a test on what a $10 price tag will do for sales of its cds.
Linda closed by saying, "they'll be available at major retail outlets".
I'm told they'll also be available at indie stores as well, but here's
the rub.
Universal plans to print the list price of $10 on the spine of the
package. Then, they'll sell it cheaply enough to the "major retailers"
for them to make a normal markup.
For the Indies - you know, the folks that actually love music and give
their customers real service - the wholesale price will be high enough
that making a profit at the $10 retail will prove impossible. Thus,
you'll probably see them selling the same discs at $10.99 or something.
Universal has every legal right to prefer selling to the big box stores,
but why do they want to embarrass the indie stores in the process?"
Adelsheim
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