Record Business and Distribution

The Music Telegraph | Text 2019/09/30 [10:38]

Record Business and Distribution

The Music Telegraph| 입력 : 2019/09/30 [10:38]


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Record Business and Distribution




One-Stop is a small wholesasle cash and carry warehouse business, providing the convenience of small quantity (record/music video) purchase. Especially product from cutting-edge and foreign Indie labels. The primary clients are small and/or independent record stores, rack jobbers, and Grocery stores, etc. Because of the low volume of sales per customer, one-stops cannot offer as good discounts as a full line distributor. Their customers pay higher prices because they appreciate the convenience of a one-stop operation.



Rack Jobbers

Rack jobbers are the individuals and companies who contract with retailers - department stores, discount stores, etc., for the rental of space to set up display racks of records which are intended to attract retail sales from shoppers who pass by.



Record Clubs

In 1955, Columbia Records got the idea that records could be sold directly through the mail. The Columbia Record Club has been running well ever since. Shortly after CBS got started in thefield, RCA, then Capitol Records, followed in establishing its own record clubs (Capitol has since discontinued this kind of promotion). When record clubs began, retailers threatened court action, arguing that a big company pushing sales of only its own label through the mail constituted unfair competition and restaint of trade. Columbia responded by expanding its club offerings to include products from other labels. Record clubs now offer for sale any record that provessufficiently popular to earn a listing in their advertisements. Club memberships are developed,  as we know, through full-page ads in trade and consumer publications, plus TV and radio commercials.



Indie Distributors

Indie Distributors make quantities of records, on a consignment basis, then deliver them to retail record stores. They provide either a local, regional, national, or semi-international service. Their primary clients are Indie and foreign labels, from whom they acquire the records, at wholesale price (about 50% of retail). The distributors add between $1.50 to $2 per record unit as their profit margin. 






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