Chapter 8 - RETAIL

1 Chapter 8 - RETAIL ? History ? Mail Order ? phonorecord parlors ? monopolies ? Retail ? one last chance to influence purchase ? POP display ? demos ? lost leaders

2 Independent Promoters ? cause of many problems during payola scandals ? record companies had little control ? in late 1980's - independents largely discontinued ? TODAY ? STREET TEAMS ? Create buzz ? Lobby Radio, etc.

3 Early days ? songs needed public exposure ? Pop Radio (1960's) ? jocks supplement incomes ? public illusion of genuine popularity ? promote sale of records

4 (Valuable) Consideration ? Entertainment (Theatre / restaurants / concerts)??? ? mugs, hats, t-shirts??? ? Trips / cars / TV's ? Monthly checks ? drugs / prostitution

5 Price Differential ? discriminatory pricing ? create monopoly ? injure / destroy / prevent competition ? bars both secret & open agreements ? bars direct or indirect rebates, refunds, discounts credits, freebees ? must be for goods of like grade quality and quantity

6 RACK JOBERS ? Buy wholesale / sell retail ? Mass distribution ? Expanded scope of record companies ? Shipped out platinum/came back gold) ? Discount bins ?

7 The CHAIN GANG ? Mom & Pop record Stores ? Local / Regional Chains ? National Chains ? WALL ? Sam Goodies

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? Sam Goodies ? Competition hits the CHAINS

? sales leveled out ? used CD's ? 8 USED CD's ? Market bad until advent of CD ? Rental of sound recordings prohibited ? Record Rental Amendment 1984 ? Why Buy Used? ? New CD $ high ? Profit Margin better ? return policy of labels ? giveaways (Promotional copies) 9 Record Clubs ? Retail $ 14.99 ? Wholesale $ 11.00 ? ? Record Club ? Free $1.50 ? Sale $3.20 ($15.98 list) ? buy 1 / get 2 free ( approx. $10 profit + shipping) 10 Sources of Information ? Billboard ? CMJ (College Music Journal - New Music Report) ? College, non-commercial, alternative outlets ? R & R (Radio & Records) ? weekly providing info on current music programming ? subscription services (Hits, Gavin Report, Rockpool) ? 11 NOW and the FUTURE ?

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