I am an artist putting together a bookstore tour. My question is, if the bookstore gives me shelf space and possibly a spot in one of their listening stations, and I am selling my CD for $10.00, how much should I be giving to the bookstore? Please answer based on the bookstore giving me shelf space one month prior to and one month after my performance date. I would appreciate hearing from anyone that has experience in with this. Thank you.

Couple of things to consider. One, your price may be a little low at the bookstores. Look at the price ranges of their other CDs and price yours at the bottom-end of that range. Probably looking at a range from 18.98 down to 11.99. When pricing in a traditional retail enviroment, have found that it is best to fit within existing pricing models rather than stand-out on the top or low-end. Also believe that if a CD is priced too cheap in relation to others offered, the consumer will instinctively feel it may be defective, i.e. poor music.

Second, bookstores are usually on pretty thin margins due to the nature of their distribution channels. You can get their attention with a fairly robust share like 25 - 30% of sales. Also, if there is no cost to be part of the listening station program, then you could be justified in a higher margin share. If there are costs or an investment to be in the stations, then lower the share to the bookstore to no more than 15%.

Hope this help! Glenn Gomez // cdstreet.com

Thank you Glenn Gomez, for not only answering in depth and with very useful information, but for answering so quickly! It does indeed help very much. Frank Porter
www.mp3.com/frankportersorig

CD pricing is best described by : LESS equals MORE. Your a struggling musician but, you don't want to be a greedy one. If you give a little you will get a lot. Good luck!

Wholesale on a 19.99 CD is $11. So record stores are used to getting 50% off list price, however they generally SELL CD's for as little as $11.99 and usually $12.99 or $14.99.

The artist, by the way, gets their royalties based on what the record label gets, which is between $4 and $5 per CD gross (in other words Warner Record Distribution gets something $11 and Warner/Reprise Record label gets something $4.50 from that [60/40 split], your contract is with Reprise not Warner Distribution). The artist share is 12-15% of what Reprise gets or about 40 to 50 cents per disk, AFTER the label recoups costs (generally $500,000+ per album, distributions of first money is 2 years behind first sale, less returns and allowances).

Publisher gets 9 cents per song x the number of songs, half of which goes to the writers, except on record club selections which are on a flat rate license covering all titles and are either exempt or get 1 cent or less per CD (and, of course, with the 11 FREE you get from the record club there never is a profit on sales but SHIPPING is not in the agreements and the clubs ALWAYS charge $4 per disk in shipping even though they use Special 4th Class rates which are $1.55 per pound and a CD weighs a few ounces).

I'm assuming you are either buring CDs which cost you about $2 - $2.50 each with label and jewel case, no labor, or you pressed 1,000 and the cost is between $1 and $3 depending on who you went to for the pressing.

That leaves $7 in gross profits.

Split the difference[50/50]? 60/40?