Setting Up In-House Retail Sales

Now, that you are familiar and likely connected with online music sales sites, such as CD Baby, or combination online/offline retail sites, such as The Orchard, you are probably comfortable in having your music distribution and sales fairly covered.

But, what if you could get even more music sales, and even more profitable income?

I'm speaking of consigning your product to retail stores, but, with one exception...consigning your product nationally, or even internationally.

For all concerned, "consignment" means placing your music in retail stores on a trial basis, then collecting payments when it sells, with the retailer keeping a portion of your sale.

You see, as consignment goes, most musicians who consign their music to retailers, usually limit their consignment territory to only local retailers, or on a regional level at most. Their reasoning is that any larger area will be too difficult to manage.

But, that is simply not so, and they are losing a fantastic amount of money by limiting themselves to their local regions.

So, I am going to show you how you can easily consign your music to retailers and be able to collect payments for sales every thirty days (or so) via a "step-by-step" process.

It is important to note that the consignment process will be most successful if you are already receiving some degree of promotion and publicity results, such as radio airplay, press coverage, video airplay or through your music being played in nightclubs via record pools, of which I have addressed in a previous article.

Otherwise, you may find your ability to move your product from retailers' shelves almost as difficult as if you did not have product on them. And, if you do not have some degree of promotion or publicity, whether you have hired such a service, or you choose to conduct it yourself, practically, the only way that you will experience sales is purely by retail customers' accidental discoveries of your music.

So, ready?

1. Concentrating on retailers (both major chains and independents) in areas where you are getting radio airplay, video airplay, press coverage or any other form of promotion or publicity, contact retailers in these areas who your distributors may not service. One of the best up-to-date online sources to use, particularly, for the U. S. is http://www.yellow.com

This is the online version of the Yellow Pages, and you should look in such categories as "Compact Discs," "Compact Disc Retailers," "Music Retailers" or similar categories.

2. You may prefer to visit local retailers in person, introduce yourself and make them a consignment offer, such as the amount that you will need from each unit sale, etc., and how often you will need to collect payment for any sales (usually every thirty days is the normal time frame). Retailers will also expect you to make a written agreement available to them that spells out the terms of the consignment.

3. As for retailers outside of your local area where you are already getting promotion or publicity, you can simply contact them via telephone and relay the same information that you do with local retailers in person.

In both cases, you should direct them to your website, whereby hopefully, you have your music streaming for them to listen, as well as have a bio and other important information regarding you and your project.

You are also free to utilize the retail consignment form that I have already created, and which you can download, customize with your own information, then upload to your own website, that is freely available at http://www.MuBiz.com/CnsnmtFrm.html

4. Once you have uploaded your customized version to your website, your retail accounts can then simply download it from your site, or you can fax a copy to them if they prefer.

You will also note that I have included discounts for retailers within this 1-page form that are designed to dramatically reduce the number of returns that are a commonality with retail consignment and distribution. The less returns, the more money you make (and keep).

Additionally, you will see where I have limited the number of units to five (5) at any given time. This is to ensure that there are just enough copies that should sell with no problem within a 30-day period, especially, if you already have promotion and publicity occurring in the retailer's area. This limit also ensures that you have enough product to reasonably service enough retailers.

Also, with this limit, re-orders are more likely to occur before the end of your 30-day periods. This type of retail activity looks really great to traditional distributors who, after seeing your product's retail track record, may contact you to inquire about carrying your product. This will give you stronger bargaining power with them, as well as wider distribution, than if you did not have retail product available and moving.

And, even if distributors do not call, this will allow you to approach them with an attractive sales history and track record.

Also, be sure to provide local retailers with two copies of the consignment form to sign (carbon paper between two original copies still works) so that both you and the retailer have copies.

5. As for retailers outside your area, or local retailers that prefer to use the online consignment form, be sure that they download, sign and either fax or mail the form to you *BEFORE* you send them product. This creates an initial record and verification of a purchase request. You then, in turn, sign the form then return a copy to the retailer along with his order.

6. When sending retailers product, be sure to *ALWAYS* send your product via some shipping/tracking method. I would, personally, use the Certified/Return receipt service with the U. S. postal service, and I believe that the U. S. postal service also now has tracking for 2nd Day Air/Priority mailings as well.

These particular services are probably the least expensive services on the market, but they will ensure that your product doesn't get lost or stolen en route to the retailer. They also ensure a record of the retailer having received your product for those few unscrupulous retailers that may not wish to pay for your product if they received it by first class mail, but would sell it and keep its profits.

7. At 30-day intervals, contact your retailers, whether in person or via telephone, to inquire of any sales that have occurred. While you can pick up payments locally, you should have distant retailers forward you a check for payment that corresponds with the number of unit sales.

You could also have them pay you online via a credit card through PayPal, or another such online service. This would eliminate lost/stolen checks through the mail, while guaranteeing your payment quicker.

8. If, for example, within a 30-day period, you have three sales, with two unsold units with a retailer, you have the choice of either waiting for the remaining two units to sell prior to forwarding more product to the retailer, or you can offer to forward three more units to the retailer. However, it is probably best to wait until the two remaining units sell.

9. In either above case, once all five units have sold at any given retailer, begin the complete process over, starting with the retailer signing or faxing another copy of the consignment form in order to ensure accurate sales records and sales continuity for your project.

Note: Should your project begin to experience a large sales volume, you may wish to hire someone, i.e., a student or intern, to work this aspect of your project, and whom you can pay a commission for each sale. This will eliminate your need to pay hourly wages or salaries, and will further save you money.

Kenny Love is president of MuBiz.com, a radio promotion and publicity service that also provides business and career services to musicians. See the corresponding website at http://www.MuBiz.com

---

Review: Audioslave - Out of Exile

Every once in a while a band comes along that... Read More

Tips for a Great Recording Session

You know your songs are great (and so does your... Read More

The History Of Drums - A Journey Of Sound

Music and musical instruments are an extremely important part of... Read More

Piano Chords and New Age Music

There are basically two ways you can compose a piece... Read More

Thomas Jefferson and the Chinese Gong

While Richard Nixon's diplomatic visit to China may have created... Read More

Open Position Piano Chords - Perfect for the New Age Style

The Open Position Chord (OPC) allows you to create a... Read More

Automatic Control of Chords

CORRECT PRACTICE IS INDISPENSABLE!Your success or failure at the keyboard... Read More

How To Change Your Guitar Strings

Changing your guitar strings might make you feel a litte... Read More

How to Remove DRM from WMA - Is It Legal and Worth the Effort?

Technically, it's illegal to remove DRM from WMA protected music.... Read More

Suzuki Violin Vs Traditional Violin

The Suzuki violin method has come to dominate the way... Read More

Interview With Josh Epstein of Vision Music USA

Vision Music USA is a proactive and progressive music service... Read More

Story of 50 Cent

G-Units 50 Cent , was born 6th of July 1976... Read More

Writing Hit Songs

There are a lot of factors to writing a hit... Read More

A Brief History of Fender Guitars

Perhaps no other guitar maker has touched the hearts of... Read More

Avoid These 3 Common Mistakes - When Improvising

Mistake #1 - Thinking about what you're going to playA... Read More

New Age Piano Playing and the Sustain Pedal

There are 3 pedals on most pianos. The one on... Read More

Canadian Stars: The Marble Index and the Waking Eyes

Canadian Indie bands are dominating the music scene and it... Read More

Sheet Music ? Violin and Other String Instruments

The violin is a bowed stringed instrument and is the... Read More

How to Find Musical Ideas

The Russian Composer Igor Stravinsky once said: " A good... Read More

How Piano Lessons Benefit Young Children

Piano lessons provide a wide range of benefits to young... Read More

Music & Intelligence: Will Listening to Music Make You Smarter?

Will listening to music make you smarter? Will learning to... Read More

Top 7 Donts for Successful Improvisation

1. Don't try and make something happen. Trying blocks the... Read More

?Who Else Wants to Get Screwed When Signing a Recording or Songwriting Deal?!?!?

You've got your recording (or songwriting) contract in hand and... Read More

Celtic Music: The Japanese Connection

My friend, guitarist Brian Hughes, toured with the Chieftain's in... Read More

The Music Industry and Its Lack of Talent

So it has come to this... what we see overrides... Read More

Piano Playing and Performance Anxiety

I'll never forget the first time I played the piano... Read More

Can You Really Learn To Play a Musical Instrument From an Online Course?

Out of the 250 million people in the United States,... Read More

Music Mini Course: Learn The Basics Of Reading Music On A Keyboard Instrument

Welcome to the wonderful world of music. As you begin... Read More

Managing Your Time, when Music isnt Your Day Job

You CAN do everything.Repeat.You CAN do everything. What you cannot... Read More

The Future for Independent Record Labels

Small independent record labels are facing a different fight today... Read More

How to Create Backing Tracks If You Dont Play All the Instruments... or Any

Congratulations! Your singing has become amazing, and it's time the... Read More

How to Play Piano Using a Few Chords

How many chords do you need to create a piece... Read More

Guitar Players...Learn About The Point Of Discipline

Have you ever started learning a lick or exercise and... Read More