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Titles that list for $18.98 would usually wholesale for $12.04. Under the program, the 15% discount would bring the wholesale price down to $10.23. But if you figure in a new release 5% buy-in discount, the price would come down to $9.63 during the first few weeks of release.
Thursday, August 5, 2004

BMG LAUNCHES CATALIST PRICING INITATIVE

New Program is Aimed at Discounting Midlevel Sellers Between 100,000-500,000
After being in the works for months, BMG EVP/GM Jordan Katz has taken the wraps off a pricing program aimed at helping mid-level acts with initial ships of between 100,000 and 500,000 units.

The program, along with any existing buy-in incentive discounts, will offer the ability for retailers to opt for an additional discount of 15% and forego any co-op dollars. At any given time there will be a limited amount of titles in the program and each title will continue to be offered at that discount for anywhere between 30 to 60 days as decided by each individual label.

This gives retailers a choice to participate or not on any of the chosen titles and therefore choose between co-op dollars or the lower price. Titles that list for $18.98 would usually wholesale for $12.04. Under the program, the 15% discount would bring the wholesale price down to $10.23. But if you figure in a new release 5% buy-in discount, the price would come down to $9.63 during the first few weeks of release.

The hope is obviously that BMG will be able to goose sales on second-tier releases in an attempt to take them to the next level. A vendor letter with specific titles included in the launch is slated to go out early next week.

The move follows similar pricing intiatives like UMVD’s controversial JUMPstart program (see hitsdailydouble.com, 4/16/04).

 
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