Do I Want to Buy Your CDR?

Today’s post is inspired by the conversations I’ve had with friends of mine who are also long-time customers of A Different Drum and rabid music collectors.  I’ve written a few of my thoughts on collectors  in other blog postings before, and this time I mention them in the context of CDR’s.    There is absolutely no denying that CD sales have been plummeting over the last few years and that the music industry (particularly the smaller, independent market in which I and my associates work) is hurting as a result.    I’ve explained how digital sales, though they have gone up, have not compensated for the losses in revenue from CD sales.   So, I won’t go over that stuff again.   Let’s talk about something that some labels and bands are doing to avoid losses when releasing new music.   Let’s talk about CDR’s.

I understand the motivations of releasing new albums on CDR’s (otherwise known as duplication or “short-run” manufacturing).  The band or small label looks at the sales in the current market and thinks, “Well, we have this album we want to release, but it’s too hard to sell even 300 or 400 of these things to make back the cost of manufacturing!”   So, they investigate and find out that they can do a short-run of 100 or 200 duplicated  CD’s, complete with color artwork and disc label, for a low price.  They may be able to spend less than $500 to get the album out and sell as many as possible with little risk.   Financially, it is indeed less risky.

For those who don’t know, when we talk about factory replicated CD’s, it’s a completely different process than a CDR.  If you are getting your CD’s DUPLICATED in a short-run situation, the company you hire is going to use equipment to burn CDR’s, basically copying your information on discs one at a time.   Then for the artwork, they are going to print color laser prints like you could do at home if you owned a nice color laser printer and then insert those into the jewel case.   Yes, they may even shrink-wrap them for you.     But it is NOT a factory replicated CD, like the music you’ve been buying since the CD format was created.  It’s not what you’ve been buying in the store all these years.  It’s more like the blank CDR that you burn in your home computer, just with some snazzy packaging.

If you plan on doing factory replication, then the minimum run is 500 units.   A factory just won’t make real CD’s for you unless you’re doing 500 of them, and even then, they’ll most likely print 1000 of the booklets and dispose of the extras, since real off-set printers prefer minimum runs of 1000.   YES, replication is completely different, and much higher quality than burning CDR’s, just like off-set printing (they way all professional books, packaging, etc. it done) is better than simply running a color laser printer.

There are several demonstrations on Youtube that explain the difference.   Here is one— yes, it is an advertisement for a business, but they explain the difference very simply:

Here is another one which shows the true replication process, which you will see, is MUCH different than burning CDR’s:

Now that we’re finished with that little tutorial, let me get back to my point.  More and more of the CD’s I buy from independent labels and bands arrive after I’ve made my initial order, and I find out that the release is a duplicated CDR.   How do I know?  Well, I almost instantly can tell by the cover if it looks like that kind of wet, shiny laser printer appearance on standard paper.  Then I open the case and pull out the disc, flip it over to the play surface, and there it is, a color-tinged CDR (CDR’s are rarely the silver color of replicated CD’s).  Plus, you don’t see a factory code in the center ring of the disc.   Why does it matter?

Here is the most simple reason I think it matters– it isn’t going to sell nearly as much as a replicated factory CD.   When I first started receiving CDR’s and shipping them in orders to certain customers and collectors, I started getting emails asking if they could return that particular item for a “real CD” or a refund.   You see, they instantly appear to be something “unofficial” or “pirated” or simply “cheap”.   Heck, if a customer can pull out a 50 cent blank CDR, pop it in their computer and rip illegally downloaded tracks and never spend more than a dollar, then why would they want to pay $10 or $15 for the same finished product from a store?  For the extra packaging?  Well, let’s throw in another 50 cents for a color printout of the artwork you snagged off the band’s homepage, and you basically DO have the exact same thing.   Yes, it just feels like a ripoff to some of these people.

So, as a service to those collectors who don’t want CDR’s, and to protect myself as a vendor, I now clearly indicate if a release on my homepage is a CDR instead of a CD.   Since I’ve started doing that, I don’t get as many upset customers. I don’t get as many sales either.

Now I know what many bands are thinking as they read this.   You’re thinking, “But, I can’t afford a run of 500 replicated CD’s!  I have no option but to release a CDR!”   I’m not trying to force you to do anything.  If you only want to release a CDR, then that’s fine.  Do it.  I’ll sell as many as I can to people who are willing to buy.  But I hope you realize that you’re turning your own predictions of low sales into a reality.  You certainly won’t sell more than 500 units.  You’ll make those 100 duplicates and maybe sell them all, or fall a few short.  Yep, you saved money, and you got a few dozen copies of your albums to fans or friends who will buy whatever you do.   That’s as far as it will ever go, and if you’re OK with that, then just keep doing it.

If you just want to get your music “out there” then the CDR may be a viable option, just like a digital-only release.  In fact, if you put your album out only as a digital release, then you don’t even have to invest more than about $50 in that release.   That’s less than the CDR!

I’ve been saying over and over that the majority of customers still buying CD’s these days are collectors and super-fans who will never be content to “own” an Mp3 file.   Since they are collectors, they want the physical product on their shelf.   Well…if the only people buying are collectors, and you’re putting out a product that collectors don’t like, then you’re shooting yourself in the foot, at least in terms of physical sales.  If the collector doesn’t want your CDR, then why are you bothering to make a physical release in the first place?

Here is another reason the collectors don’t want your CDR.   Remember what I said about MP3’s and their true “collectible” value?  They aren’t worth anything because:  A) they can be infinitely duplicated, which means there is no limit to the product, and thus no increase in value, and B) they are only worth the average price of what people will pay, and since more people get MP3’s for free than those who buy them, the average value is close to zero in the first place.    This very nearly applies to CDR’s as well.   They CAN be infinitely produced.  If the band sells those first 100 CDR’s and thinks, “Wow, that went well, I’m going to make another 100,” then they certainly will.  They can keep making 100 at a time until they don’t think there’s anybody left who wants them.   Thus there is no real limit in terms of quantity, and to a collector, that means something.   Sure, I’ve sold CDR’s that were “limited to 100 units worldwide” as advertised by the band, but we count on the band to REALLY put that thing out-of-print like they say, because it would be very easy to make just a few more, as long as people want them.   And I’ve already mentioned the “average value” of CDR’s.  No matter how pretty, the consumer knows they can buy a pile of 50 blank CDR’s at Walmart for about $20.  So, in their minds, it’s just a dolled-up product worth less than a buck.

I know, I know.  It feels good to spend $300 to make 100 CDR’s, then sell them for $10 each and make a $700 profit on your mini release.  That’s good economics, no doubt!  I have plenty of experience replicating 500 factory CD’s at a cost closer to $1500, then barely breaking even or losing money because I can only sell 200 of them.   Yeah, I’ve taking the risk over and over again and have lost before.  But you know what?  I consider that part of being a real label.

Let me explain that opinion, which I’m sure many small labels and bands will find insulting (sorry).   I still believe that if you are a band and you believe in your music enough to try to sell it, then you need to act like a real band so that you’ll always be perceived as a real player, and not just a wanna-be.   If you put out those homemade or CDR duplicates you ordered from a short-run manufacturer, then you won’t be giving off the signal that you’re legit.  You’ll in effect be admitting openly that you are a less important, lesser known band, and that you have low expectations.   You don’t even believe yourself that you can sell more than a couple hundred units in this big, wide world.   Now, even if that is true, like with my own music I’ve released as Saudade, do you really want to shout that message to the world?  Do you want to advertise to everybody that you don’t expect more than a few dozen people to want your product, simply by the form of delivery you choose?

When I say these things, I’m just being honest with you.  I know it’s the truth, not only because of my own feelings, but also because of those expressed to me by my customers.   I can’t tell you how many times I’ve talked on the phone to customers who are bummed about CDR’s.   I talked to two just yesterday.   One customer called up and said something like this, “Look, I really want this import CD by Band X because I like their sound, but I can’t believe they want to charge this kind of price for a CDR!  I’ll take it this time, but I’d prefer not to!”   Well, he did buy it, but hated the idea of buying it even if he liked the music.  That’s a bad vibe sent to a would-be fan, if they only buy your item out of a sense of obligation, rather than excitement.  The other guy who called yesterday is another long-time customer who has made it clear to me that he will never, under any circumstances, buy a CDR.   He just called again to say something like, “I see that more of the items in your weekly updates are CDR’s.  This must indeed mean the death of our music scene…”

CDR’s have their place. They are a great way to circulate promos.  By “promos” I mean the stuff you plan to give away as advertising so that people can hear new music.   For example, I received a batch of promo CDR compilations from Ninthwave Records last week.  They cranked out a couple hundred of these, put them in paper sleeves, and circulate them quickly to music buyers so they can hear new music by new artists.  It’s a great advertising tool!   People don’t pay for promos and they love getting the chance to hear new music, even if it is a CDR.  They don’t feel like they got ripped off.   Also, some bands have put out “promo only ” or “extremely limited” CDR’s that have extra remixes on them which they’d like to circulate to DJ’s or to fans as extra material, even at a small price.   They contain tracks that aren’t on the “regular” releases and that can be collected by whoever gets them.   Even though they are CDR’s they can be treasured, usually because it’s just extra stuff that supplements material that is released officially to the broader audience.  Even Depeche Mode did that with extra remixes of their latest singles, sent to DJ’s on CDR’s just to get the tracks out there.

I’ve seen the band Red Flag use CDR’s successfully.  Recently, Chris of Red Flag went through a very creative and productive period of time where he was cranking out a new song, complete with four or five remixes, every week or two.   He wanted to put out the music as it was finished, a piece at a time.   So he used CDR’s as a way to keep a constant flow of new music coming out in a physical format.  After all, he wasn’t going to spend the money to factory replicated 500 units of each single every couple of weeks.    But he did make sure that the packaging for these singles was interesting and that each was autographed and included bonus stickers, etc.   That way the people who bought the CDR’s would feel like they still got something special.   I do have to say though, this is Red Flag who has been around since the late 80’s and they had a major-label kick-off back in their beginning, so they have a larger fan base.   If you’re a new band and you want to put out a new single every couple of weeks, you’re going to have a hard time selling CDR’s.

In summary…  If you’re in a band and you’ve spent a couple years of your life putting together this album that shares your heart and soul with the world, then release it in a way that shows how much you believe in yourself.   Save up your money, get a nice CD cover (not just your band name printed on a color background), order a minimum of 500 replicated factory CD’s, and tell the world you have a finished product that is worth buying.  Sell it for $10 or $15, or whatever, but as soon as the customer gets it, they will know that they bought something legit, and it was worth the money.

As my final comment, I’ll just say that I personally don’t like buying CDR’s either.  I have less than 20 of them in my entire collection, and those are usually demos that were not meant to be sold.  They were given to me as early works of bands I enjoy, or they contain extra mixes, as I mentioned.  Like so many other people, I can’t find that motivation to spend $10 on a CDR unless the music is something that I absolutely must have, and even then I buy it grudgingly.   I know…I’m messed up.  I don’t buy MP3’s either.  I’d rather buy a pizza than an album on CDR or MP3…

-Todd