NEW PROFITS FOR YOUR BUSINESS

You Mean You Even Sell Music ??

Hi fellow operators... I guess by now we have all discovered that unless we are located across the street from the highest traffic area on campus that the coffee shop business is not a bed of roses. I am surfing the www for helpful hints and likewise have a new profit center to offer.

The concept fills a void and fits well into the laid-back cyber / Cafe/ entertainment bag. Many of us due to the nature of our coffee house environment see some unique talents developing. New discoveries with obvious potential, but no place to turn.

One of the common problems is to get the talent into the studio, produce a record, tie together the packaging and finally to distribute the finished product. There are costs associated with each of these aspects.

C@fe AuL@it is in a unique position due to our in-house recording studio,publishing and production company to provide a forum for new and developing talent.

At present we have 12 albums of assorted genre ready for release and bands prepared to set up promotional tours to associated coffee houses

The obvious incentive to release records is the risk / reward ratio at retail levels. Exclusive of production the record or CD has possibly the highest rate of direct profit than any other commodity excluding coffee. The key to success in the record industry is distribution.

The Idea is to enter into mutually profitable distribution treaties where by the member is involved in the entire profit system and has exclusive distribution and stocking rights in his region or area. The cost and risk of distribution and production is spread over the network and the individual risk comes down to stocking a few copies of the current releases for resale. In terms of sheer numbers a coalition of coffee shops would be a distribution system that would be the envy of every major label.

Releasing a record is the culmination of a multi-faceted decision making process. The first and most important process is selecting the right combination of artist and song, the record company has an A & R group that presumably reflects the views of the buying public.

If however you had a critical critique committee, composed of a broad cross section of actual buyers, like our customers, with an interest in the financial out come to review selections, the risk would be significantly diminished. Each member reviews the tape. If the committee feels strong about a record it would enhance the likelihood of a break out artist.

When the creative process is complete the gamble begins. If you make no sales then you loose your investment.

Our concept is simple and offers a sort of insurance to "DIY" producers, bands and distributors.

1. First you must have a product that is of acceptable quality for re-sale. Then you need to package and duplicate the album. Then you need a marketing & promotion program.
2. Next you need a band with an album. The band reproduces 300 initial copies, at their expense, for the association. The band pays out aprox. $750 for reproduction of 300 tapes.
3. Then we have an association of 100 Cafes. The association purchases 200 Hand signed copies (100 Cafes x 2 copies). Each member subscribes to 2 copies at $4.00 each to reimburse the band for duplication and royalties. The band / artist keeps 100 copies as their royalty payment on the initial release.
4. The risk is nominal to all involved and all of the participating cafes will be the exclusive distributors and retailers of the products with first choice of participating in band bookings in their area, at their venue.
5. It takes limited rack space to display the tapes. Attractive hang up display racks could be provided. The pricing structure is not in place but I anticipate that since the risk is shared that the decision will be shared by all participating coffeehouses.