MUSC 108 - All You Need To Know - Chapter 24

MUSC 108 - All You Need To Know - Chapter 24 - MUSC 108 All...

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MUSC 108: All You Need to Know About the Music Business Chapter 24: Tour Merchandising Merchandising Selling products (posters, T-shirts, bumper stickers, etc.) with your name or likeness on it. Two Basic Kinds of Merchandising 1. Tour Merchandising a. Products sold at concert venues, for prices you would never pay anywhere else,  so you can prove you were there. 2. Retail Merchandising a. The same products, but without tour names and dates, but it is sold everywhere  except  concerts, like retail stores, Internet, mail order, through fan clubs, etc. Tour merchandise makes more money. Retail merchandise is more visible, but doesn’t have the sale frenzy. Merchandisers Manufacture goods, oversee the sales at your concerts, and pay you a royalty for each sale. Royalties Just a percentage of the gross sales These gross sales are the selling price to the public, less only credit card fees and taxes  o Sales tax o Value Added Tax o Excise Value Added Taxes (VAT): not in the United States, but very common in other countries.  It is  a tax on goods at each stage of creation, based on the “value added” at that point. The tax gets bigger at each stage, but through a system of crediting back, each guy gets  a credit for the tax paid by the previous guy. The range of royalties (for sales at concerts in the United States and Canada) is 30-40% of gross 
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This note was uploaded on 04/11/2008 for the course MUSC 108 taught by Professor Scafide during the Fall '07 term at SUNY Oneonta.

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MUSC 108 - All You Need To Know - Chapter 24 - MUSC 108 All...

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