[archosman]

No... you are buying intellectual property. Most of the cost is for the music.

 

[hero zero]

Quote:

Originally posted by Old Pa Does that include GST and PST? Can you get mailorder/internet pricing in the Northern Workers' Paradise (A/K/A Canada) without GST and PST? Because when I've been up North, the sticker shock of more than 10% sales tax at the register has been like maybe I misread the price on the product. I am getting all my CDs for $7.99 to $13.00 USD gross; no shipping, no handling, and no sales tax. And there's no cost of getting the car out to drive somewhere. How does that gross compare with yours?

depends on where you're getting it from....and whether there's a sale....usually the local chains sell them cheaper [ie. FutureShop, A&B Sound]...I don't know anything about online ordering, much less ordering into another country....the GST is ~7%...PST varies from province to province....the PST for British Columbia is about 7-8%...don't remember...but it makes about 14-15% in taxes

....it's not that bad with something that's C$13.99... that goes to about C$15.00-C$16.00.....

Where the taxes really hurt is with more expensive products....import CD's are expensive all the time and they're hard to find here....and then there are the headphones.....7506's cost $185 here, WITHOUT tax

 

[bundee1]

check this out:

http://www.usatoday.com/money/media/...cdprices_x.htm


ohhhh yeahhhh!!

 

[archosman]

Time to burst the bubble...


It's a brilliant scam!

- They get a bunch of good publicity for supposedly "lowering the price of
music."
- But the new pricing scheme is only basically equivalent to a constant 15%
discount on all Superstar, Frontline and Midline CDs.
- In order for the retailers to be eligible for the new list price they
force the retailers to agree to give them 25% of all of their "record bin"
space and 30% of all merchandising space WITHOUT the record companies having
to pay for it.
- The record companies DON'T have to spend a dime on price and
positioning... which means that the label actually MAKE MORE per unit
because they don't have that expense.
- Supposedly, the record label will then quadruple its "consumer direct"
advertising campaigns for radio/tv/internet.

So basically, they are ****ing the retailers by limiting the discount to 15%
max and NO co-op advertising dollars in exchange for 30% merchandising space
and 25% bin space!

The distribution company makes less per unit income... but the record
companies get more per unit income AND both may ultimately get rid of a
whole lot of administrative hassles. The music group will end up making the
same amount of income for less hassle.

So, the consumer ultimately wins because of the lower price,
and the music group wins because it basically makes the same amount of $$$
unless it overspends on the consumer advertising... but that is an element
that they have control of... so they might spend it, or they might not.

But the retailers get ****ed because they HAVE to sell more... their MARGIN
is now substantially less per unit so they HAVE to make it up in quantity.
And they have to GUARANTEE bin space and POSITIONING to the music group
under the assumption that the music group will quadruple consumer
advertising.

It's going to be REAL interesting to see where this goes...

 

[penvzila]

Quote:

Originally posted by grinch that article looks like total ******** to me. they can announce all they want, but i seriously doubt best buy is just going to drop $2 off the price of every cd by universal. oh well, i suppose in a warped *****-footing sort of way it's a step in the right direction. hey look! somebody in the record industry with a brain! i'm going to go feint now.

Best Buy already sells a lot of cds at a loss. It's more of a device to get you in the store for them.