How do you guys feel about companies raising their prices for a release as stock dwindles down?

I buy from a lot of boutique blu-ray distributors (smaller companies that issue rare movies as high quality blurays, often with special packaging or bonuses).

When stock levels of a product they released starts running low, the price doesn't change.

However, in the Christian music realm, some companies start elevating their price for their releases as stock levels get low. Even though it was their own release to begin with.

I find this very odd.

Is this common in the secular music scene also?

Eh we live in a capitalistic country where supply/demand reigns.  As a consumer, I'd rather them not do that... but I certainly can't blame 'em or fault 'em for it.  That being said, if I know Distro A doesn't do that but Distro B does... I might find myself buying from Distro A - even for products that are similarly priced at Distro B.

Kerrick wrote:Eh we live in a capitalistic country where supply/demand reigns.  As a consumer, I'd rather them not do that... but I certainly can't blame 'em or fault 'em for it.  That being said, if I know Distro A doesn't do that but Distro B does... I might find myself buying from Distro A - even for products that are similarly priced at Distro B.

Funny you say that, that is exactly something I just went through...and like you stated, I did indeed wind up placing an order with Distro A for that very reason

It makes perfect sense.  And if no one buys it then it is likely that the price will fall.

Temple of Blood wrote:It makes perfect sense.  And if no one buys it then it is likely that the price will fall.

Even if you don't have an issue with it, I'm not sure how it makes "perfect sense".

Remember, I am not talking about a company distributing another label's release, I'm talking about when they distribute their own.

So for example...I'll use a fictitious label/distro named Christian Metal 4 U...they sell direct to the public.
Temple of Blood signs on with Christian Metal 4 U to release a new album....limited to 1,000 copies.
Two years later, the label/distro has sold 900 copies, and has decided to raise the price by 200% for the remaining 100.
ToB doesn't get paid more....and all it does is make it harder for the fans to get your album.

Christian Metal 4 U didn't pay anything more for those last 100 than they did the first 900...they all cost the same and were done at the same time.

How is that not price gouging?


(and I'm just trying to get a friendly debate going, not trying to force my will.....that comes later    )

It's called supply and demand and it's a beautiful thing. If they price it too high, they have to deal with the consequences.

Bought4Life wrote:

Temple of Blood wrote:It makes perfect sense.  And if no one buys it then it is likely that the price will fall.

Even if you don't have an issue with it, I'm not sure how it makes "perfect sense".

Remember, I am not talking about a company distributing another label's release, I'm talking about when they distribute their own.

So for example...I'll use a fictitious label/distro named Christian Metal 4 U...they sell direct to the public.
Temple of Blood signs on with Christian Metal 4 U to release a new album....limited to 1,000 copies.
Two years later, the label/distro has sold 900 copies, and has decided to raise the price by 200% for the remaining 100.
ToB doesn't get paid more....and all it does is make it harder for the fans to get your album.

Christian Metal 4 U didn't pay anything more for those last 100 than they did the first 900...they all cost the same and were done at the same time.

How is that not price gouging?


(and I'm just trying to get a friendly debate going, not trying to force my will.....that comes later    )

Do you know much about economics or have read any books on it?

Respectfully, there is no such thing as "price gouging". 

Temple of Blood signs on with Christian Metal 4 U to release a new album....limited to 1,000 copies.
Two years later, the label/distro has sold 900 copies, and has decided to raise the price by 200% for the remaining 100.
ToB doesn't get paid more....and all it does is make it harder for the fans to get your album.

Christian Metal 4 U didn't pay anything more for those last 100 than they did the first 900...they all cost the same and were done at the same time.

You're assuming MANY things here:
1.  The band will never make it available digitally, and that no fans will settle for digital copies no matter how high the CD costs
2.  There is only one distro in the world who has ever held copies of this CD.  What band/label has ever done this?
3.  That the artist cannot press the CD themselves if things got too insane. 

Not long ago our first album was totally sold out, except for insane discogs/Amazon prices.  They were priced too high to sell, and I don't know if anyone actually bought them at those prices.  Seeing this online and hearing that many people wanted a copy of this motivated me to do a reissue with Alone Records, who were also motivated to help press it when the prices indicated a high demand for the CD.  Most people who owned a copy of the CD apparently didn't want to sell them to undercut the insane prices offered by others, and that indicates a demand based on want and rarity. 

I received copies of this CD reissue myself to sell at whatever price I want, and I can press more CDs myself if I so choose to.  Like, for example, if Alone charged $1000 per CD or something.  They wouldn't sell any.  People would email me and ask what's up with that.  My copies (reasonably priced) would sell out.  Then I would tell everyone hang tight that I'll press more on my own.  The label would end up not selling any and losing all that money they invested.

Economics is all about people making independent decisions.  The fallacy that most fall for is that they assume people are static and can't react to prices/competition/outside forces.

Keep in mind:
1.  If the label has sold 900 copies and they feel they can still sell more even while raising the price, then they are very happy with me.  I want to make the label happy, because then they will want to work with me in the future and maybe even offer me a better deal.  Maybe they will offer a small run of vinyl.  Maybe they will choose to press my next CD.  Maybe they'll even help invest some money into it.  Artists should want to make the label happy, and want to make them money for all these reasons.  It is a symbiotic relationship.  So I do benefit if the label makes a lot of money, even if the cost is the same, because my relationship with the label has improved and allows me to do a lot more with them in the future with a more lucrative deal. 

TL;DR

Do you know much about economics or have read any books on it?

I'm not stupid..I understand economics, thank you very much.
I also understand supply and demand. Again, I don't see non-Christian labels I deal with (again, boutique br) do this type of thing, which is why I was originally asking my question.

Temple of Blood wrote:
Respectfully, there is no such thing as "price gouging". 

Are you referring to this particular topic?
If you are saying THIS isn't price gouging, then that is fine...that is what I am asking for...opinions on whether it is or not. Just trying to do a friendly debate

Or are you saying there is no such thing as price gouging in general? 
If you are saying there is no such thing as price gouging ever, in any industry or sector, then I adamantly disagree with you and there are even laws about it.

Temple of Blood wrote:So I do benefit if the label makes a lot of money, even if the cost is the same, because my relationship with the label has improved and allows me to do a lot more with them in the future with a more lucrative deal.

If the label priced it right at the beginning, and sold off their run, why would that not be enough on its own for them to want to deal with you in the future?


As for the rest of your comments, thank you.....this is why I was asking for opinions

I'm not trying to say/imply that you are stupid at all.  I just happen to be interested in economics and didn't assume that everyone else would be.

I'm saying that there is no such thing as price gouging, in general.  Making a law about something doesn't mean anything at all about reality.  That has more to do with showmanship/populism than economic reality.

There is no such thing as "pricing it right" either.  It is a negotiation between the buyer and seller.  If it's not going the way either party likes then they are motivated to change course.  It's not up to a lawmaker or anyone else to say what the "right" price is.

why would that not be enough on its own for them to want to deal with you in the future?

It's not up for me to dictate to them what "enough" is.  I try to give them as much value as I can and hope it is enough.  If it is, great.  If it's not, I take my value elsewhere to another label or start my own.  It's in my best interest to make them as much money as possible so it helps my standing in negotiation.

Assuming limited supply, there's going to be some factor that dictates who acquires and who doesn't.  When that factor is price, obviously people of lesser means will have a harder time acquiring, if all other variables are controlled for.  But people who want the product enough will benefit by having supply available, and the seller will benefit in the form of increased profits, so two parties win.  If prices remain stagnant, then what determines who acquires and who doesn't?  Whoever has the opportunity to click first, or stand at the head of the line, or whatever else?  In that case they would win, but the seller doesn't.  So I'm very good with letting whoever cares enough/can find or create enough disposable cash being the deciding factor.  Why not?  is there a better alternative?

Just my thoughts and opinions, of course.  We've all been priced out of things, and of course it's frustrating when it happens to you.

I think if the retailer wants to see themselves as a ministry, then this is a definite no-go. But Christian or not, if they see themselves as just a business, then it’s simple capitalism.

Seems fine to me, especially if the label isn't planning on making more.  If you have the last few existing copies of something, or at least of that pressing, then it makes sense to raise the price a little if there's still demand.  More often, I've seen the opposite happen, though...prices drop as demand dwindles and a label wants to unload the last of the stock so they aren't stuck with it.

I understand economics.

I understand, too, that raising the price like that is just an artificial way of making people "hurry up and buy before you never see this again" tactic.  It works, but not for all of us.

To me, it leaves a bad taste in my mouth especially when Christian owned & operated companies do it.  But, since I don't run one of those businesses, I don't have to really concern myself as I am not paying that much for any music ever.

Simple law of economics. A vacation resort is gonna have lower prices on weekdays or during their off season because they realize it’s not gonna be as busy. So they lower their prices to drum up business. However during their regular season,weekends and/or holidays they raise the prices because they know it will be busy and they want to be as profitable as possible.  Not wrong, like everyone else they need to make a living and they’d be foolish to not take full advantage of their busy season. That being said, you as the consumer have the right to look for the bargains.  Same concept applied to selling records