Product Retail Price Service Fee Essay

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Suggested Product Retail Price
Service Fee
CD Record $8.99 - 18.99 per CD
Single Digital Download $0.99 - 1.29 per download
Album Digital Download $0.99 - 12.99 per download
Artist Brand T-Shirt $6.00 - 30 per t-shirt
Concert Ticket $10 - 45 per ticket

Record Production Cost
Costs Percentage* Cost Per Dollar*
Musicians Union 1% $0.16
Manufacturing/Printing/Packaging 5% $0.80
Publishing Royalties 5% $0.80
Retail Profit 5% $0.80
Distribution/Transportation 6% $0.96
Artist Royalty 10% $1.60
Label Profit 15% $2.39
Marketing Promotion 10% $1.59
Label Overhead 18% $2.88
Retail Overhead 24% $3.84
Total = 100% $15.99
(*) costs and percentages based on industry standards, are subject to negotiations with the artist, manufacture, distributor and retailer.

Service Fees
Devotion competes for quality, customer service and commitment. Fees are based on industry acceptance or hourly rates being offered lower than competitor prices; all others are subject to negotiations.
Service Fee
Booking 20% of gross income
CD Replication $0.65 per hour
Concert Promotion
Domestic Publishing
International Publishing
Live Sound Management $75-120 per hour
Mastering*
Media Printing
Music Video Production
Recording and Engineering* $25-60 per hour
Personal Artist Management
Personal Business Management
Song Production
Song Writing
T-Shirt Merchandising* $2.70 per t-shirt (*) Devotion intends to provide the service in the future.

7.3 Company Sales and Purchasing Policies
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