Who loses out?

Hey i was just wondering about music stores that sell CD's cheaper than others ie The Warehouse,Who actually benefits from the speical or higher price? Does the band lose out in anyway? or is there a set price that everyone pays for them so the band actually benefits by selling more.
Where do you go? Price ok? Would you pay more to support the bands?

Forums: NZ Music,

I think the Warehouse sell lots of old fuddy-duddy albums at really cheap prices, but in my experience the newer stuff they supply is not that much cheaper than you'd get in Sounds or Real Groovy. I assume the price difference is just because Warehouse overheads are lower.

However; I'm in London and I order all my CDs online from soundsnz or smokecds - online I'd pay NZ$25 for the latest from Blur or Radiohead but the CD stores in London I'd pay between NZ$42 and NZ$60! This price difference would be partly overheads - the rent in London is astronomical - but I'm sure it doesn't make up for me paying more than double for a new release or a US import.

...so the debate continues. Where the hell does our money go??

In nz we Pay $26 at the warehouse at real groovy/sounds we pay $35.
But you say up to $65 bloody hell!! Come back to nz.....Fast.....

in very simple terms: anything over NZ$24 is profit* for the store, and anything less is a 'loss' for the store. The artist makes the money before the CD gets to the store.

*profit from which overheads like rent staff etc are paid for...

sweet as...

Ok I'm no expert on this but I know it's a little more complicated. As I understand it record stores buy all their stock in advance, so how ever much they sell it for is up to them. I don't think there's a standard price for a CD wholesale although I'm guessing $24 is a good average. Bulk buys/ limited runs - international/ local - EP / Double albums - they're all costed differently.

So when you find an album on sale for $10 or so, it's not that the artist is getting less $$ than if you had paid $30 for it - this is just the record store re-coupuing some cash on excess or old stock. Which is also why the singles sales charts can be a little inaccurate as they can be based on record store's anticipated sales rather than actual sales figures (am I right on this? anyone know for sure?)
that's for labels but then there's the odd independent who get the record stores to sell their CD's on their behalf, that $$ split probably comes down to whatever they agree to individually.

There was a trend in the NZ music stores before I left to advertise big $25-for-all-CDs sales all the time - this went on for so long (maybe a couple of years, at every major CD store in Wellington) that I'd assumed that the general price of CDs had lowered permanently, and the stores were just using the "Sale" thing to capitalise on it. Evidently not.