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From: rb@ccivax.UUCP (rex ballard)
Newsgroups: net.micro
Subject: Re: CD pricing
Message-ID: <295@ccivax.UUCP>
Date: Fri, 4-Oct-85 12:14:08 EDT
Article-I.D.: ccivax.295
Posted: Fri Oct  4 12:14:08 1985
Date-Received: Mon, 7-Oct-85 04:43:45 EDT
References: <1823@brl-tgr.ARPA>
Organization: CCI Telephony Systems Group,  Rochester NY
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> This is starting to get into the realm of INFO-AUDIO, but I think I
> can answer the question.  First note again that the typical cost for
> a CD is actually about $1.60, not less than a dollar.  Of course, this
> is not where the main price difference between CD's and vinyl appears.
> First of all, in major metro areas, the more typical cost for CD's is
> not $14 but is rather in the range of $10.95 to $12.95. 
> $11.95 is a very common price around L.A., for example.

That isn't that much different from cassettes is it?

>  Many record stores are unable to keep enough CURRENT releases
> on the shelves at any given time, due to the long lead times for production
> and distribution of popular CD's.
> --Lauren--

This last portion is the most important.  Any distributor, retailer, or
other middle-man takes a Gamble when he carries a new media.  Remember
4-channel LP's, stores were frequently stuck with inventory.  Shelf space
costs anywhere from $5-$25/sq ft/week when all costs are taken into
consideration.  A square foot of CD's sitting on the shelf for a month
because they are not the CURRENT TOP-20 can be very expensive!  The
higher price encourages the dealer to take the inital risk.  Prices
will come down as CD gets more popular.