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- Newsgroups: misc.entrepreneurs
- Path: sparky!uunet!darwin.sura.net!uvaarpa!cv3.cv.nrao.edu!heineken.tuc.nrao.edu!lmiller
- From: lmiller@heineken.tuc.nrao.edu (Luther Miller)
- Subject: Re: Compact Disc Wholesalers
- Message-ID: <1992Jul29.190353.5109@nrao.edu>
- Sender: news@nrao.edu
- Organization: National Radio Astronomy Observatory, Tucson Az.
- References: <1992Jul29.001707.518@megatek.uucp> <1992Jul28.215204.24547@jarvis.csri.toronto.edu> <59297@mimsy.umd.edu>
- Date: Wed, 29 Jul 1992 19:03:53 GMT
- Lines: 32
-
- In article <59297@mimsy.umd.edu> biow@cs.umd.edu (chris biow) writes:
- >In article <1992Jul28.215204.24547@jarvis.csri.toronto.edu> ematias@dgp.toronto.edu (Edgar Matias) writes:
- >
- >>I don't know if what I'm about to say has been raised in this
- >>discussion yet, but you all be pleased <sarcasm> to hear that CD's
- >>cost less to manufacture than cassettes, yet they sell for more.
- >...
- >But I would expect to see a category of second tier record companies
- >selling a (percieved to be) lower quality product for much less.
- >Yet I can't say that I've seen that.
-
- I have-- in CD clubs such as BMG and Columbia House. With the BMG deal,
- usually 8 CDs for the price of one plus shipping and handling, the
- deal comes out to about $5 a CD. Columbia's deal is (I think) 10 for the
- price of 6, plus shipping. Comes out to regular prices. Also, these
- clubs manufacture "lower quality" CDs.. I can't tell the difference, but
- you can't sell them for as much to used CD dealer. Also, these clubs
- (especially BMG) sometimes have trouble picking the hottest new stuff.
-
- >Anybody got a good explanation for why we haven't. If not, there might
- >be a great niche here for new record companies. Certainly there are
- >dozens of pop bands that, rounded out with studio musicians, are every
- >bit as good as the product sold by the big labels. And such no-name
- >bands and studio musicians are dirt cheap. Now you just have to
- >convince the record stores and their customers that your bands are
- >really at least half as good as the ones on name CDs.
-
- Not a bad idea, although you'll still be competing with the larger labels.
- Also, I would imagine that manufacturing on a smaller scale is more costly.
-
- -Luther
-
-