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Re: [ARSCLIST] Good idea, dumb business model so far -- soapbox

At 02:37 PM 2/12/2009, Bob O wrote:
Put a $5 DVD in front of them and a $12 CD, and they will take the DVD every time. Same thing happened when VHS tapes were selling for $10 and CDs $15-plus

How do you explain the fact that Walmart was paying around $6 for those CDs that they were selling for $15 and not reducing the price until people started buying?

You'd have to ask Wal-Mart. I only know what I'm seeing, and I see the audio CDs aren't moving.

Something new I noticed this last trip were three CD sets selling for $16 in a decorative tin of the various oldie compilations. In a few months, I'll be able to tell you if they are moving. If they are covered in dust, I'll notice it.

What's real is that people aren't buying music. There is no evidence that this is a question of price. My personal belief is that it's most likely a question of quality. A lot of people in both the tech sector and the record business don't want to hear that.

What if it's both a question of price *and* quality? If shops are able to sell best-buy oldies for $1 over list, doesn't that mean the perceived value of those CDs is higher? China proved to us that you can sell useless junk if it is priced cheaply enough. Perhaps that which passes for new music from the major labels needs to sell for $2/unit? (what was it Mrs. Sinatra said when told her son stuffed two dollars in a certain author's wine glass?)

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