[Dixielandjazz] CD Costs & Profit

[Rorel at aol.com]

In a message dated 2/28/2007 4:31:30 PM Eastern Standard Time,  
barbonestreet at earthlink.net writes:

"Robert  S. Ringwald" <robert at ringwald.com> wrote (polite snip)

> Ray,  one flaw in your figures is not figuring in the cost of recording,
>  mixing, mastering, art work, type setting.  Also, payment to your  
musicians.
> 
> This can run into thousands of  dollars.

Amen Bob. I pay the sidemen $1 for each CD sold in lieu of a  performance fee
up front. Thus on 900 CDs sold, the 5 sidemen get a total  of $4500. Plus out
of every 1000 CDs made, at least 100 are given away as  promos, or used as
marketing tools, etc., which lowers the gross by another  $1500. That's $6000
less in profit assuming Ray's original calculations  were right.
 
Not exactly, Bob.  I did leave an amount in my numbers for  sidemen.  You are 
very generous with your sidemen and I dare say that a  regular band of a 
bunch of cronies who play together all the time could bring it  in for less.  As 
to promos, well, you elect to give those away and could  just as easily sell 
them.  For guys like us, I think ALL the CDs  manufactured are basically promo 
CDs because, While our figures may differ  somewhat and we do turn a marginal 
profit, that is not really the  point.  you and I and others out there know 
that we aren;t going to get  rich selling self-produced CDs off the bandstand.  
We sell them for people  to take home and hopefully, play and enjoy and tell 
their friends so they lead  to more bookings.  They are more for marketing than 
sales.
 
FYI - you do not have to pay Mechanical Royalties to the Harry Fox Agency  on 
Promo copies, if you pay at all, and that increases your profit on those 100  
by about a buck a record.
 
The key is to make a budget and stick to it.  There is no reason in  the 
world why a self-produced CD should cost as much as Mr. Metz' Bob Cats  record or 
my David 'Fathead' Newman record.  If it does, something's  wrong. 



Not to mention that at legitimate charity events (where we get  paid to
perform) we rebate $5 per CD sold back to the charity as a  contribution.

Again, that is your decision, and a laudable one too.  It is not  required.
 


And  if you sell CDs on  certain cruise gigs, or at certain jazz  festivals,
the cruise line, or cruise booking agent, or festival producer  with their
greed driven mindset often charges anywhere from 10 to 25%  commission.

Agreed!  Wholeheartedly.  Many clubs in New York City do the same  thing.  
When my wife and I go to hear Vince Giordano at the Iridium, we  drop $150 a 
couple and i am sure the club is still taking a cut from  Vince.  That just ain't 
right.


Who  gets screwed? The performing artist. But then, what's new about  that?

But, to harken back to my original post, who gets screwed by not paying to  
use a protected tune?  The composer.  It is no justification to break  the law 
because the composer is dead.  Their estate gets the money.   (I am referring 
to other posts, not Steve's quoted herein).  A song is a  product just like a 
car, a toaster or a blackhead eradicator.  Nobody would  think they could go 
into a store and leave with a blackhead eradicator without  paying for it so 
why all this hub-bub about paying on a song?  
 
RECAP: Yes, it is difficult, but not impossible, to turn a profit on a  
self-produced CD.  Careful budgeting can leave you with some cash at the  end of 
the day.   But if your budget approaches that of Nagel Heyer  you are doomed to 
failure.
 
Yes, it seems that a lot of people want a piece of our pie.  The only  ones 
are really entitled to it are the composers of the protected tunes we use  and 
their estates.
 
I'd love to hear one of your CDs Steve.  Contact me off-list if you'd  like 
to arrange a sale.
 
Ray Osnato
 
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