STRAIGHT DISTRIBUTION!!!!!!!!!!!!!!!!!!!!!
The days of ALL the FRINGE benefits are OVER.
With the INCORRECT notion that your distributor is your LABEL, we as independent distributors have to pull back on the P&D deals. Some distributors have inadvertently fucked up the game by giving budgets that became commonplace to undeserving companies.
I’m not saying that some labels aren’t deserving of pressing and promotional money to get their cha-cha started, but to give EVERYONE a deal like that was incomprehensible. And, I’m guilty of it too!
I know that we can’t afford to keep doing that.
Labels have to participate in the RISK FACTOR.
Let me give you guys a brief example of what happens: (LOW NUMBERS)
We give the label, 50% of let’s say $6,000. The label immediately pockets $3,000. That pays for the first 1,000 units.
Say we ship the whole 1,000 units and we have to press another 1,000. So we pay the labels an additional $3,000 for the next 1,000 CDs. Now we owe the label $6,000 because we already paid $6,000 on a $12,000 invoice.
OK, now we start getting jive talked that the label is advertising and has street teams from here to Kalamazoo.
We check Sound Scan and the label has only sold a dismal 32 units.
That means we’re over inventoried by 1,968 units. Or $11,808.
Six months later we have the same pathetic numbers. But, guess what?! The label now wants to get paid for what we shipped. THAT’S NOT GOING TO HAPPEN.
Now we want to close out on that account. Do you honestly believe that a label is going to want to pay back $11,808? NO WAY! That would be the honest thing to do, but it never happens. The label just goes to another distributor.
Now add pressing and shipping if we give a P&D on top of the front money.
That’s why we as independent distributors are now offering straight distribution.
Don’t get it twisted though, if something tight comes across my desk we can always negotiate something nice.
Get at me or send me packages to 3803 N. 36th Ave. Phoenix, AZ 85019
SERVING THE NATION! ALL MAJOR ACCOUNTS AND ONE-STOPS!
Cuda Ramey
Associated Distributors, Inc
Director Of Urban Operations
Phone: 602.278.5584
FAX: 602.269.6356
E-mail: [email protected]
The days of ALL the FRINGE benefits are OVER.
With the INCORRECT notion that your distributor is your LABEL, we as independent distributors have to pull back on the P&D deals. Some distributors have inadvertently fucked up the game by giving budgets that became commonplace to undeserving companies.
I’m not saying that some labels aren’t deserving of pressing and promotional money to get their cha-cha started, but to give EVERYONE a deal like that was incomprehensible. And, I’m guilty of it too!
I know that we can’t afford to keep doing that.
Labels have to participate in the RISK FACTOR.
Let me give you guys a brief example of what happens: (LOW NUMBERS)
We give the label, 50% of let’s say $6,000. The label immediately pockets $3,000. That pays for the first 1,000 units.
Say we ship the whole 1,000 units and we have to press another 1,000. So we pay the labels an additional $3,000 for the next 1,000 CDs. Now we owe the label $6,000 because we already paid $6,000 on a $12,000 invoice.
OK, now we start getting jive talked that the label is advertising and has street teams from here to Kalamazoo.
We check Sound Scan and the label has only sold a dismal 32 units.
That means we’re over inventoried by 1,968 units. Or $11,808.
Six months later we have the same pathetic numbers. But, guess what?! The label now wants to get paid for what we shipped. THAT’S NOT GOING TO HAPPEN.
Now we want to close out on that account. Do you honestly believe that a label is going to want to pay back $11,808? NO WAY! That would be the honest thing to do, but it never happens. The label just goes to another distributor.
Now add pressing and shipping if we give a P&D on top of the front money.
That’s why we as independent distributors are now offering straight distribution.
Don’t get it twisted though, if something tight comes across my desk we can always negotiate something nice.
Get at me or send me packages to 3803 N. 36th Ave. Phoenix, AZ 85019
SERVING THE NATION! ALL MAJOR ACCOUNTS AND ONE-STOPS!
Cuda Ramey
Associated Distributors, Inc
Director Of Urban Operations
Phone: 602.278.5584
FAX: 602.269.6356
E-mail: [email protected]