NEW PROFITS FOR YOUR BUSINESS

You Mean You Even Sell Music ??

I guess the bottom line to all of this is:

What's in it for us?

The profits in a CD or a Cassette are stagering when the middle man is removed. The typical deal made by the majors is 10% paid to artist on 90 % of sales after cost for promotional copies are excluded and generally record club royalties are reduced even below the standard schedule.

In the old days a million records was a big record but with todays population a hit record sells astonomical figures.

Lets be realistic and say that one million copies of a tape were sold at an average price of $10.00 that comes to 10 million dollars in retail sales. That would result in a royalty of $900,000.00 to the artist. On a magnitude of scale the estimated costs of manufacturing, promo and production would be in the range of say $2,100.000.00 . The remaining $7,000,000.00 goes to the record company,distributors, and retailers less shipping and handling, etc.

Let’s say that our group of 100 cafes takes the position of the record company and the distributors. In other words one million record sales at retail would generate $70,000.00 in pre-tax profit to each associate.

If we were fortunate to share such an experience I feel certain we could rapidly expand our distribution to hundreds of other cafes. When the potential rewards are weighed against the risk of a few bucks per album the attraction is overwhelming.