Fighting the "Race to the Bottom"

[Pat]

I agree that composes should sell for whatever price they want to sell at.
But just playing devil’s advocate here,what would happen to the rest of the airline industries profits over time if one airline decided to sell all their seats tickets for $50?

[Art Munson]

But just playing devil’s advocate here,what would happen to the rest of the airline industries profits over time if one airline decided to sell all their seats tickets for $50?

They would charge more for baggage! 🙂

[MuscoSound]

I’d like to point out that people do not shop solely on price. People shop for value. So take this example for what it is worth. You have two pieces of music both similar. One selling for $25 one priced at $30, or whatever. The lowest priced track does not ensure a sale just cause it is cheaper. If the $30 track has better quality, or it sync’s better with the project it will have a better overall value.

It’s an old lesson that is chapter one in economics or business class. Value is what people buy, and people look for the best value at the best price. As musicians we can build value into our music and charge more. At the same time there is a market at many levels of the licensing game. Some musicians target one market with a particular “comfort zone” of pricing maybe between $25-100. Some target lower priced projects monetized youtube, webisodes, podcasts, super low budget stuff where music between $5-25 dollars might be more comfortable. Others focus on the high end market where the sky’s the limit.

It really just depends on what type of projects your targeting with your music, and then pricing based on the the “comfort zone” of that market. If your in a library where it’s between the 25-100 zone, if you build enough value into your music you can be successful with a price somewhere in that zone.

Think of it kind of like the car market. You have the super high end cars thing Lamborghini, Ferrari, ect. Those cars can go for 6 figures or more. Now why can they charge that because they build value into their product. Those high end cars are not competing with the Chevy and Fords of the world. It’s all about market, and value.

[Author]

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