Inflation cuts into merch and vinyl profits, even as sales skyrocket
U.S. inflation hit 7.5% in January, the highest level in 40 years, according to numbers that the Bureau of Labor Statistics released Feb. 10. A crucial component of overall inflation is the price of gas, which is baked into product prices and, for musicians, is a major cost of touring. U.S. retail gas prices averaged $3.41 in January, up 41% year over year, according to the U.S. Energy Information Administration. That was about 27% higher than the average $2.69 per gallon Americans paid in 2019.
Record labels face the same set of factors as merch companies. Freight in particular “is a huge factor” in labels’ decision to raise their vinyl wholesale costs, says, president of Beggars Group’s U.S. operations. “So much of what we make is manufactured in Europe. Even if we ship via boat, which takes four to six weeks, it still costs a lot.”, production manager at Thirty Tigers, a Nashville-based labels services company, agrees. “If we have to airfreight, it can be as much as $2 a unit.
Higher vinyl wholesale costs have translated to higher prices at retail. “Our prices are rising — but it’s not us,” says, CFO of Bull Moose, an 11-store chain in Maine and New Hampshire. “We can’t dictate what we pay for things.” Rather than adjust its margins to compensate for higher wholesale and operating costs, Bull Moose put extra emphasis on higher-margin used goods through in-store banners, radio spots and social media ads.
Norge Siste Nytt, Norge Overskrifter
Similar News:Du kan også lese nyheter som ligner på denne som vi har samlet inn fra andre nyhetskilder.
iQiyi Cuts Losses to $968 Million as Subscriber Numbers SlipChinese video streamer iQiyi cut its losses in 2021 to RMB6.2 billion ($968 million), compared to RMB7.0 billion in 2020 and said that recent cost cutting measures were quickly bearing fruit. But i…
Les mer »
Met Opera Opens With Emotional Ukrainian Anthem, Cuts Ties With Pro-Putin PerformersMonday marked an emotional night at the Metropolitan Opera, as the cast of Don Carlos lined up on stage before opening night to sing the Ukrainian national anthem.
Les mer »
Pregnancy risk tool cuts baby loss in black and Asian womenA study suggests it works far better than the current system at detecting high-risk pregnancies.
Les mer »
Met Opera Cuts Ties With Pro-Putin Artists Over UkraineThe policy will be in effect “until the invasion and killing has been stopped, order has been restored, and restitutions have been made.”
Les mer »
Europe proposes drastic cuts of BPA, a hormone disruptor found in plastics and foodIn a move that could signal a new approach to regulating potentially hazardous compounds, European health experts are recommending a drastic cut in the allowable human consumption of BPA.
Les mer »
Jonathan Rhys Meyers cuts plea deal in DUI caseThe former “Tudors” star will not spend any time behind bars and instead will serve a one-year probation after being arrested in November 2020.
Les mer »