View Full Version : question about record prices
Moksha
10-07-2003, 06:21 AM
Why do hip-hop 12-inches (from majors and underground indies) cost nearly $2 less than house 12-inches? Where does the extra money for house music go?
Moksha
10-07-2003, 06:21 AM
FYI—many hip-hop indies are moving about the same number of units as house indies.
Moksha
10-07-2003, 11:13 AM
bump
My guess is that the prices for House records are higher because of the smaller market and demand for them compared to hip-hop.
jsd540
10-07-2003, 11:32 AM
My guess is that hip hop labels look at it as a form of promotion so they are willing to absorb the difference. graemlins/conf44.gif
drilla
10-07-2003, 11:41 AM
that's easy!
hiphop is better than house!!!
Moksha
10-08-2003, 01:29 PM
Originally posted by Albert Diaz:
My guess is that the prices for House records are higher because of the smaller market and demand for them compared to hip-hop. But there is plenty of indie hip-hop with the same kinda demand and market. . .and they are also cheaper. Someone in the house music chain is getting more than they're counterpart in the hip-hop chain. Is it the artists, labels, distributors or retailers?
dj c-los
10-08-2003, 01:42 PM
Originally posted by matthew j:
that's easy!
hiphop is better than house!!! ???
hip hop cheaper than house music is like
Sanyo vs Sony,
They may both be competitors but you get what you pay for.
graemlins/grinyes.gif
[ October 08, 2003, 02:46 PM: Message edited by: clos7 ]
BigPoppa
10-08-2003, 04:38 PM
Originally posted by jsd540:
My guess is that hip hop labels look at it as a form of promotion so they are willing to absorb the difference. graemlins/conf44.gif Hip hop still has the ability to write off the promo singles they send out to the club jocks to the artists too...ie., they can get better exposure. House has to make every single penny it can because we are losing so much money.
beaniboy67
10-08-2003, 04:47 PM
Originally posted by kara:
house tracks are longer? graemlins/rofl.gif
Thats a good point ive never thought about before! smile.gif
hahaha get out! well, i don't know much if anything about hiphop. i am interested though
you think house prices are really that much?
selecta
10-08-2003, 04:56 PM
Wholesales prices for most house titles via a distributor like Downtown 161 usually cost around 4.29 to $4.79 for domestics. On the other hand hiph-hop singles range between $3.75-$4.09. So, that roughl dollar difference in cost makes up for the price difference. You will see most house titles prices @ $6.99, is anyone experiencing higher prices? I also think the average house consumer is willing to pay more. Hip-Hop heads usually by doubles and are normally broke as hell. Just the opinion of your friendly neighborhod record shop owner. Check out the site!
Moksha
10-09-2003, 10:21 AM
Originally posted by selecta:
Wholesales prices for most house titles via a distributor like Downtown 161 usually cost around 4.29 to $4.79 for domestics. On the other hand hiph-hop singles range between $3.75-$4.09. So, that roughl dollar difference in cost makes up for the price difference. You will see most house titles prices @ $6.99, is anyone experiencing higher prices? I also think the average house consumer is willing to pay more. Hip-Hop heads usually by doubles and are normally broke as hell. Just the opinion of your friendly neighborhod record shop owner. Check out the site! Interesting. . .
The price of hip-hop singles at Fat Beats is $4.99
The price of house singles at Dance Tracks is $6.99
That's a 2 dollar difference at retail. If your wholesale prices are correct, that means that Dance Tracks profits $2.20-$2.70 per single, while Fat Beats profits $0.90-$1.24 per single. That's quite a difference! Especially considering that I usually see about the same number of customers in each store. Why does house retail really need to be so much more expensive on the retail end?
These numbers also mean that before retail, hip-hop singles are priced up to $1.04 more than house—about 25% more. Who is getting this?
If house records cost $4.99, wouldn't we all buy more of them?
Jamie 3:26
10-09-2003, 10:25 AM
Hey,singles here in Chicago are 6.99-7.99.
Moksha
10-09-2003, 10:34 AM
Originally posted by JAMIE 3:26:
Hey,singles here in Chicago are 6.99-7.99. Since they come from the same distributors, that means that house is being marked up as high as $3.70 in Chi, compared to hip-hop's retail NY markup of $0.90-$1.24.
darrow
10-09-2003, 10:34 AM
Originally posted by Orion : Konbit:
If house records cost $4.99, wouldn't we all buy more of them? YES.
When I buy online especially, I find myself monitoring my shopping cart as the total cost of the order goes up and up and up and I even start removing things from my cart if the total gets higher than I budgeted for.
julian_kelly
10-09-2003, 10:39 AM
Maybe Fat Beats can afford to charge less because they move more volume in other areas. Fat Beats probably makes a kiling with instore and online sales on big artist like Jay Z, 50 Cents, Neptunes and other large commercial hip hop acts; this may compensate for charging less on underground titles. Not sure about this, just a guess.
julian kelly
Originally posted by Orion : Konbit:
...The price of hip-hop singles at Fat Beats is $4.99
The price of house singles at Dance Tracks is $6.99
That's a 2 dollar difference at retail. If your wholesale prices are correct, that means that Dance Tracks profits $2.20-$2.70 per single, while Fat Beats profits $0.90-$1.24 per single. That's quite a difference! Especially considering that I usually see about the same number of customers in each store. Why does house retail really need to be so much more expensive on the retail end?
These numbers also mean that before retail, hip-hop singles are priced up to $1.04 more than house—about 25% more. Who is getting this?
If house records cost $4.99, wouldn't we all buy more of them?
jsd540
10-09-2003, 10:43 AM
Originally posted by BigPoppa:
</font><blockquote>quote:</font><hr />Originally posted by jsd540:
My guess is that hip hop labels look at it as a form of promotion so they are willing to absorb the difference. graemlins/conf44.gif Hip hop still has the ability to write off the promo singles they send out to the club jocks to the artists too...ie., they can get better exposure. House has to make every single penny it can because we are losing so much money. </font>[/QUOTE]I think it's a very bad cycle though, If we don't spend on promotion then we can't rake in sales. Around and around... :(
Moksha
10-09-2003, 10:50 AM
Originally posted by julian_kelly:
Maybe Fat Beats can afford to charge less because they move more volume in other areas. Fat Beats probably makes a kiling with instore and online sales on big artist like Jay Z, 50 Cents, Neptunes and other large commercial hip hop acts; this may compensate for charging less on underground titles. Not sure about this, just a guess.
julian kelly
I doubt it. . .the price difference was the same before the internet record store thing took off. It seems to me that retailers are hiking prices too much for house peeps. Perhaps the dying state of our music is partially due to the fact that customers have been put off by the cost of buying recs.
This is all speculation. . .I'm just trying to make sense of these numbers.
Originally posted by BigPoppa:
</font><blockquote>quote:</font><hr />Originally posted by jsd540:
My guess is that hip hop labels look at it as a form of promotion so they are willing to absorb the difference. graemlins/conf44.gif Hip hop still has the ability to write off the promo singles they send out to the club jocks to the artists too...ie., they can get better exposure. House has to make every single penny it can because we are losing so much money. </font>[/QUOTE]I don't believe that to be true with alot of the independant releases.
darrow
10-09-2003, 10:54 AM
I checked out Fat Beats site. They seem to have higher prices on some other items. Maybe they can afford to keep prices low on some things (and get them out of inventory) since their customers are willing to pay higher prices on other things?
For instance, Dancetracks sells a Shure SC35C cartridge for 24.99. Fat Beat sells it for $39.
What about stuff like rent, employee wages, etc. They play a part also.
I didn't realize hip hop singles sold for $4.99. I need to get into hip hop!
Originally posted by darrow:
I checked out Fat Beats site. They seem to have higher prices on some other items. Maybe they can afford to keep prices low on some things (and get them out of inventory) since their customers are willing to pay higher prices on other things?
For instance, Dancetracks sells a Shure SC35C cartridge for 24.99. Fat Beat sells it for $39.
What about stuff like rent, employee wages, etc. They play a part also.
I didn't realize hip hop singles sold for $4.99. I need to get into hip hop! The difference in prices could also be that they're getting the same product from two different distributors.
Fat Beats the store also doubles up as Fat Beats the distributor (cut out the middle man), so records are generally a little cheaper from them.
Great question, Orion.
Bill Blake
10-09-2003, 11:23 AM
Lots of variables metnioned that may have an impact....
One thing to consider....all other things being equal are increasing marginal returns, meaning the more one produes the cheaper overall production cost become....
Its why Walmarts can out compete local businesses with lower price and make money hand over fists.
This should work for the majors producing hip hop but for independant hip hop production maybe more similar to house??????
Also consider that when you go the store whether it be lp's or singles the CD price for house or hip hop is gonna be about the same...which means its pretty much a different market almost altogether than vinyl?
Tricky little problem I that would be interesting to study I guess.
JMNYC
10-09-2003, 07:33 PM
could very well be that the labels have poor pricing models, but IMHO, I don't think your assumption that hip hop records sell the same number as house is a fair assumption. Where did you get that info?
I doubt that if a hip hop record was gonna sell 2,000 or less copies, most indie hip hop labels would bother putting it out, since they have such a huge market to tap into. The same record for a house label would be considered "mildly successful".
It also depends on the stores - I know for a fact that some stores mark up records 100% or more. PLUS, the label's distribution - if you sell direct to the store AND to one-stop distributors like Downtown 161, and the store buys from the distributor, by the time they get the record, the price has already been raised because there's yet another middle man.
[ October 09, 2003, 08:45 PM: Message edited by: JMNYC ]
Rodney Ransom
10-10-2003, 02:24 AM
Originally posted by Orion : Konbit:
</font><blockquote>quote:</font><hr />Originally posted by selecta:
Wholesales prices for most house titles via a distributor like Downtown 161 usually cost around 4.29 to $4.79 for domestics. On the other hand hiph-hop singles range between $3.75-$4.09. So, that roughl dollar difference in cost makes up for the price difference. You will see most house titles prices @ $6.99, is anyone experiencing higher prices? I also think the average house consumer is willing to pay more. Hip-Hop heads usually by doubles and are normally broke as hell. Just the opinion of your friendly neighborhod record shop owner. Check out the site! Interesting. . .
The price of hip-hop singles at Fat Beats is $4.99
The price of house singles at Dance Tracks is $6.99
That's a 2 dollar difference at retail. If your wholesale prices are correct, that means that Dance Tracks profits $2.20-$2.70 per single, while Fat Beats profits $0.90-$1.24 per single. That's quite a difference! Especially considering that I usually see about the same number of customers in each store. Why does house retail really need to be so much more expensive on the retail end?
These numbers also mean that before retail, hip-hop singles are priced up to $1.04 more than house—about 25% more. Who is getting this?
If house records cost $4.99, wouldn't we all buy more of them? </font>[/QUOTE]Good point I never understood why the price of
housemusic keeps going up. How does the record
labels, record stores, And the distributors expect
us to keep buy these records? help ... graemlins/mecry.gif ......
[ October 10, 2003, 03:26 AM: Message edited by: RodneyRansom ]
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