bizarre_eye@Cult Labs | 22nd February 2015 08:40 PM | Quote:
Originally Posted by Demdike@Cult Labs
(Post 436773)
I always thought the retailer ordered X amount of discs at a set fee payable to the distributor, say £5 a disc, then sell them for whatever they wanted.
I can find out as i know someone who ran an indie record shop for several years before he was sold the business. | This is how I believed it worked too (I actually used to be a buyer myself so know a little about it).
Obviously the price point with the supplier can generally be negotiated depending on how many units you take and this will therefore effect your profit per unit sold. I'm also guessing that the 'big boys' such as Amazon have a lot of sway in determining a distributors own selling price, as if you are under-cutting them they will simply turn around and state they won't be ordering as many units or ask for them at a lower price. I think this is a reason why Arrow stopped undercutting Amazon's pre-order prices because at the end of the day, Amazon control the market in terms of e-sales and probably have a massive sway over the prices that these niche indie distributors charge - at least at the pre-order level. |