MARKETPLACE
NEWSLETTER
PAGE 6, MAY 30, 1973
Higher Priced Music
in Prof it Bind!
When "Marketplace" originated and first proposed that automatic music be priced at
" 2-Pla ys 2-Bits" plus the "Big Music Bargain" of "5 to 7 Plays 50¢ 11 and "12 to 15 Plays
$1" to capture double, triple, even quadruple the number of overplays for greater prof-
it some seven years ago, opposition to this hike in play pricing from what this same
writer had urged years ago, 10¢, 3/25¢ play, was very much evident.
Yet , as prices of juke boxes, parts, supplies and accessories escalated to new, his-
torically high marks, plus the fact salaries, repair costs, in fact, all costs to do
business zoomed just as "Marketplace" had predicted, more and more music operators
turned to 11 2-Plays 2-Bits" pricing. Today automatic music has attained to a standard
pricing package:
" 2- Plays 2-Bits"
" 5 Plays 50¢"
"1 2 Plays $1"
Galloping inflation plus dollar devaluation have created a new cost-price problem
for the nation's music operators. With today's dollar worth but 20¢ in actual purchas-
ing power value, compared to the basic money economist's dollar of 1939, music opera-
tors are actually selling their higher cost recordings at 11 2 Plays 5¢". This low pur-
chasing power value pricing plus record high costs for new phonos, for servicing, for
all necessities, has created a profit bind for many, many music operators.
Of course, there are operators who, today, claim it's their "1-Play 2-Bits" games
that are keeping their music operating profitable. "It's the games that pay for the
music", they state. Why any businessman should want to continue to support an unprofit-
able business with a profitable one will always remain a mystery to the logical minded
businessman.
Automatic music is profitable at "2-Plays 2-Bits" when antique and outworn operating
methods are pushed aside. Most especially, the completely rediculous 50/50 commission
basis. Very few music operators want to price up to "1-Play 2-Bits". Therefore, the
profit factor must be enhanced by new and modern business procedure.
The time is long overdue for complaining music operators to put into being a "ser-
vice charge" off the top of the gross collection of an absolute minimum of $10 plus
the more equitable 70/30 commission basis, 7CJ% to the operator. This should be done
this very day by music operators who can foresee the time when they shall have to pay
royalty tribute to the copyrighted music owners. And this, in and of itself, this new
modern operating procedure will, once again, assure automatic music profitability.
Perhaps even boom times for music again.