Product Retail Price Service Fee Essay

923 WordsJan 19, 20164 Pages
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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