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durr286 · 08-20-2003, 12:10 AM

The reason the record companies are raising prices is because they will make the same amount of money as they did when they were selling a lot of cds. Additionally, they need less manpower, maintenance, promotion costs, ect, so they will save a little money. It's much similar to the gas station in town that charges 20 cents higher than the rest of the pack. Hardly anyone goes there, but a few do. Therefore, less overhead, same profit, and the owner buys a house the same size, or bigger, as the guys who sell gas cheap and sell a lot of it.

It's no doubt that cds aren't as in demand as they used to be. Business isn't brisk anymore, everyone is demanding a new media, and record stores aren't what they used to be. As it is, they aren't going to sell a lot of cds anyway. Why not make the same amount of cash as when they were selling lots of cds? Pretty much what they're doing is raising the demand of their cds by producing less and, therefore, raising the demand of their product. In a capitalist society customers' decide the demand, not the industry. This is what we call a cartel, and as said above, it is illegal. It is the same thing OPEC is doing with oil right now. Getting multiple oil companies together and deciding where the prices will fall to maximize profit. It is unfair to customers; therefore, we don't do this in America. How is this different from the gas station that charges more for their gas? Customers have a choice, they can buy their gas elsewhere if they don't like it. However, if every gas station in your town got together and decided prices, you wouldn't have much of a choice. This is essentially what the music labels are doing: raising or lowering the prices to maximize profit. Meanwhile, customers are getting ripped off and have little alternatives.

Can this be helped? Yes. Write your congressman. Big business will roll over to government, but government can't read your mind. Furthermore, you'll see lower cd prices, the record companies will stop controlling prices, be competitive, and actually work for your business. Not having a band in particular that you like will no longer be an excuse for pirating music. I believe if the record companies started running their business like every other business in America we would want to buy their products even if you could pirate them. For example, what do you get with a cd today? A cd and a small cd insert are about all you get for your money. What did you get with your records back in the 70s? You would get a record, extensive cover art, big inserts with more art, and sometimes a nice big poster to hang on your wall. Rarely do you get such things with cds today. When the record companies start competing with each other we will get all this and more, plus lower prices. Customers' want more bang for their buck and when they find it, they will pull their hard earned money out of their wallets.

08-20-2003, 12:10 AM	#34 (permalink)
durr286 Upright Location: Northwest (the dry desert part)	The reason the record companies are raising prices is because they will make the same amount of money as they did when they were selling a lot of cds. Additionally, they need less manpower, maintenance, promotion costs, ect, so they will save a little money. It's much similar to the gas station in town that charges 20 cents higher than the rest of the pack. Hardly anyone goes there, but a few do. Therefore, less overhead, same profit, and the owner buys a house the same size, or bigger, as the guys who sell gas cheap and sell a lot of it. It's no doubt that cds aren't as in demand as they used to be. Business isn't brisk anymore, everyone is demanding a new media, and record stores aren't what they used to be. As it is, they aren't going to sell a lot of cds anyway. Why not make the same amount of cash as when they were selling lots of cds? Pretty much what they're doing is raising the demand of their cds by producing less and, therefore, raising the demand of their product. In a capitalist society customers' decide the demand, not the industry. This is what we call a cartel, and as said above, it is illegal. It is the same thing OPEC is doing with oil right now. Getting multiple oil companies together and deciding where the prices will fall to maximize profit. It is unfair to customers; therefore, we don't do this in America. How is this different from the gas station that charges more for their gas? Customers have a choice, they can buy their gas elsewhere if they don't like it. However, if every gas station in your town got together and decided prices, you wouldn't have much of a choice. This is essentially what the music labels are doing: raising or lowering the prices to maximize profit. Meanwhile, customers are getting ripped off and have little alternatives. Can this be helped? Yes. Write your congressman. Big business will roll over to government, but government can't read your mind. Furthermore, you'll see lower cd prices, the record companies will stop controlling prices, be competitive, and actually work for your business. Not having a band in particular that you like will no longer be an excuse for pirating music. I believe if the record companies started running their business like every other business in America we would want to buy their products even if you could pirate them. For example, what do you get with a cd today? A cd and a small cd insert are about all you get for your money. What did you get with your records back in the 70s? You would get a record, extensive cover art, big inserts with more art, and sometimes a nice big poster to hang on your wall. Rarely do you get such things with cds today. When the record companies start competing with each other we will get all this and more, plus lower prices. Customers' want more bang for their buck and when they find it, they will pull their hard earned money out of their wallets.