Originally Posted by Mediocrefunkybeat
I consider a fair price to be one that covers both the artists and the record company's cost with a profit substantial enough to encourage and develop the artists signed to the company and to further interest in the artists in order to obtain a sustainable market and the companies' self-perpetuation as a result whilst still being affordable to the consumer at which it is aimed - teenagers being the baseline. It's also in the interest of the record companies to lower their own prices, but this won't happen with the current market - luckily it's in a state of revolution. Independent labels CAN lower the prices if you understand the general business model of independent as opposed to major labels and this influx of independent labels will hopefully not only cheapen the production of records (using smaller studios rather than those owned by the record companies - which are cheaper but of equal quality) but also the promotion with the use of the Internet.
Unfortunately, the record companies are charging far too much due to the fact that they have to pay a lot of salaried middlemen which have nothing to do with music. Not the case with independent labels. Read my post and this is all explained; I like a good debate and I firmly believe in a more direct financial lines from record sales to the artist, rather than the convoluted system we have now.
The experience I have with taking a recording project to the completion level is only that of my bands experience.
Here is a shameless plug: www.codered.ws
We are as indie as you can get. We own the studio allowing us to take as much time as needed and as many takes as wanted to record. There was no charge for the guest artists (friends of band) There was no charge for the original producer and engineer (friends of band) and a small fee for the final editing and mastering. I don't know what those costs were as they were all handled by the leader of the band. I don't know what the actual costs for the pressing were but I can now buy my CD from me for $10 each. That is how much, according to the leader of our band, they each cost him for pressing 500 of them. We sell them at our gigs for $15. I regulary purchase CD's of 'legit artists' from the $12- $18 range.
We don't have any distritution deals so the CD is only available at a few local stores and on the internet site of Baja Records (friends).
We don't have an advertisemet budget so no one outside our playing schedule will know about us.
We aren't about to go on tour to promote the record (and recoup some of our costs)
In today's world I can't see the argument that CD's are way to expensive or that Indie
labels have an financial advantage over Big Label's. Just the opposite, I believe the Indie labels would love to grow into a major label.