Can
You Afford Distribution?
By Chris Standring -
A&R
Online - Updated April 2010
Back to The
Academy
"We Need Distribution"
I
get many e-mails from artists and groups asking me
about distribution. They say "We have a band and we're playing locally and
getting good crowds and we sell our CD at gigs. We started our own label and
need to get distribution so we can get our CDs in the stores. How can we do
that?"
The odds are that you cannot afford distribution. Let me
explain why...
Most inexperienced folks believe that a distributor is the
pipeline to the people. In theory it is, but in practice it is not. A
distribution company is only as good as the record companies promotional power.
Yes it is important to get your CD in the store, but it is much more important
to get your CD OUT of that store. It's as much the record companies job to do
that as it is the retailers. A distributor can only try its hardest to convince a
retail store to take your CD. To secure shelf space a record company needs to
present all its marketing commitments (and honor them) so retail stays confident
that it can shift units.
Let's face it, record stores are saturated with
product. Why on earth would a store take a CD if it isn't sure it will get sold.
What that retailer needs to see if it is to readily accept your
product is:
-
Radio Play - If a single is being worked
at radio (through an independent radio promoter) and getting spins, this might
be enough to convince a store in that neighborhood to take your record. The
amount of demand for the record will determine the amount of units the store
takes.
-
Retail Price And Positioning
- Visibility in a record store is everything! If you were to buy an "end cap"
(those displays at the end of an aisle), or a month on a listening station, or
rack display, this is enough to attract the attention of a store. However, it
has become increasingly competetive even when you pay for this!
-
Touring - Playing live shows can help
create a demand for a CD and this of course is key.
All labels have what they call a "one sheet" - a hand out sheet with bullet
points outlining their marketing strategies and promotional commitments. This is
the first step, but then those commitments have to be met. These commitments are
extremely expensive.
If a label refuses to spend promotional money on
their act a number of things can result;
-
The CDs remain in the store
buried amongst the thousands of others waiting to be found.
-
The CDs after a matter of weeks, get returned to the record label.
-
The record store takes less units from the same artist's next CD, often refusing to stock
it altogether.
The last point is interesting. A brand new artist can generate much more excitement in the retail marketplace than an artist with a
failed record. The label with the new artist, providing they stump up their
promotional dollars and have a good several weeks at radio before they go to
retail, can distribute a good amount of units in the marketplace. The artist
with a previous record that "bombed" however, will need to do a good deal more
convincing in order to get the stores to take more product.
So my big
question is; "Can you afford distribution?". To get a record in every
store via a reputable distributor immediately puts you in competition with major
labels who have gobs of promotional money they can drop if they need to.
Localize - DIY - Build Relationships
My advice for independent artists is to localise. By all means try to
get your CD in retail stores, but do it yourself. Strike up a relationship with
the store buyer and offer your CDs on consignment. Don't give them any risk.
When you do gigs in that neighborhood make a point of telling your audience that
they can buy your CD in such and such store (even if you sell CDs at your gigs!)
Do what you can to get some radio play in that area too. This, along
with your live shows, might create a certain amount of demand to shift enough
units for each retail store to take you seriously and want to continue to
support you. From time to time record stores will do "in store appearances" with
independent artists and this will allow you to build a stronger relationship
with a store, and sell a few units. In a perfect world that store may even add
your disc to a listening station for a month to help generate some business. I
have seen this happen many, many times. They understand that it costs labels
thousands of dollars to do this and that indies are operating on a shoestring.
They very often want to help if they believe in a band.
Having said this,
retail pretty much wants to deal only with distributors and labels. However,
they will support a new artist if they like them. Walk into your local store and
ask to speak to the buyer. Give him your CD, be nice and see what happens.
Remember, don't just think about getting your CD IN the store,
think about how you might get it OUT!.
-----
Chris Standring is the CEO and founder of A&R Online.
He is also a contemporary jazz guitarist presently signed to Mesa/Bluemoon Records. The music is marketed at NAC
and Urban AC radio. For more info on Chris' recording career go to his personal website.
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