Tag Archives: distribution

Response Part 2

After I posted here the other day about my comment at the J.W. Pepper blog, there was a fun and lively conversation on Twitter about self-publishing. Those that were involved generally seemed to be of the opinion that they’d much rather go the route of self-publishing because of the level of control that it affords them, as well as the higher royalty rate and the fact that they keep all of their rights.

The next morning, my comment was approved, and the composer/blogger who wrote the original post responded. Unfortunately, his response didn’t really address any of the points that I made, and instead continued to plug the legacy publishing system without offering any support for why he thinks it’s a good idea. Here is his response (which you can also find here):

Dear Dennis,
Thanks for your response to my article. I’m not surprised by your comments, and I can see where you’re coming from. No question, great music deserves to be published, recognized, and performed, and I know it can be extremely difficult, or impossible, to find an established publisher that considers the work to be a profitable investment. But, when I see self-published music that does have the attributes of a profitable publishing investment, I like to encourage the writers of those works to go the route of commercial publishing. I realize that in some cases self-publishing might be the composer’s only reasonable alternative.

And here is my lengthy response:

I still completely fail to see the benefits of going the route of legacy publishing (if you want to know why I use the word “legacy”, Google the phrase “legacy system“).

First, I have to give up *all* rights to my creative efforts. I give away my copyright, and all claim I have to the piece I just spent days, weeks, or months writing, to a corporate entity with no real stake in its success or failure.

I can’t even write an arrangement of that piece anymore without asking the permission of my publisher. I wrote it, and they own it now. In exchange for what? I have absolutely no say in cover design, pricing, distribution or marketing methods, or whether or not my piece actually makes it to print. A publisher has zero obligation to actually put the piece into print once the contract is signed – they own it, they can do with it what they will. And unless it’s stipulated in the contract, they don’t have to create parts (another horror visited upon one of my friends – he wrote a piano trio, which was published by one of the big houses, yet they never made parts; instead, the score is sold in sets of three for over $100 – it’s never been bought, ever, and it’s been sitting in a warehouse since the mid-’80s). If a particular piece turns out to have been a “bad investment”, then it’s just left on the shelf, and no further effort is put into promotion. And if they decide to license the work for a cause that I find completely abhorrent – oh, well – they own it, and can do with it what they will.

So: I lose all claims to the piece, and have no control over its uses. Fun!

Editorially, there’s not much benefit. Publishers are now requiring composers to engrave their works themselves or at their own expense.

Monetarily, I’m entitled to royalties, but royalties are net of all expenses incurred by the publisher. But what expenses exactly? That’s a good question, and one you’ll never get a publisher to answer with any level of specificity. Salaries of the marketing / legal / art / editorial staff? Rent for their offices? Pencils / paper / office supplies? All are needed to sell my piece, but not all are direct expenses, especially once the piece is printed and on the shelf of some warehouse. However, the accounting departments of publishing houses are quite creative places, and any expense can be used to justify keeping a little more of the pie. Generally, though, in the end I’m left with a royalty of around 10%. Plus, if the piece is ever commercially recorded, the publisher banks the bulk of the recording royalties, as well. Good luck paying your mortgage with that!

And the fun continues! Brick and mortar music stores are essentially off-limits to concert music composers. Patelson’s shut down years ago; the two music shops in my hometown don’t stock concert music, except the Czerny exercises and some beginner piano stuff; and the music shop in the town where I went to college – there were two big schools in town that both had good music programs – didn’t stock anything written after “Mikrokosmos”. Brick and mortar stores are mostly around for instrument sales and rentals, or to peddle the Glee songbook.

Promotion is one of your big reasons for working with a legacy publisher, but again I have to ask: what can a big publisher do that I can’t? I’ve not seen much of this promotional muscle you mentioned, and I do enjoy buying scores and looking for new works to perform – both for myself as a vocalist, and as a concert presenter. In fact, I couldn’t tell you a single new thing that any of the major publishers have picked up in the past few years. I know that Boosey represents Du Yun, but only because I read it on Twitter. Beyond that, I, as a consumer of concert music, have not been marketed to. At all.

And if Twitter is the best promotional tool at the disposal of the big publishing houses, then I should point out that it’s one of the promotional tools at my disposal, too. I have slightly over a quarter of the number of followers that Boosey has, half of Schott, nearly as many as G Schirmer and Peters, and almost two and a half times as many as Subito. If this is the future of concert music promotion, then I’m playing with the big boys.

Ok, yes, the publishers have an easier time going to conventions, and have more clout with the major orchestras. But what’s to stop me from banding together with some of my composer friends, renting a booth at one of these conventions, and marketing our works directly? Just by being there, we’ve gained some name recognition, and we can market our works directly to performers and directors – much more passionately and personally than a publisher could do.

A publisher is interested in making sales. Any sales. They have no interest in the individual welfare of their composers. Individuals who work for a publisher may take an interest, but the corporation itself is interested in one thing only: maximizing profits and minimizing risk/loss. And to romanticize the role of the publisher is, frankly, silly. A publisher is a business partner, not a friend, and should not be a source of artistic validation. The gatekeeperism inherent in the system has been romanticized to a degree that has crippled countless composers’ careers. My works are only valid or good if some faceless corporation says they are? I’m sorry, no, my works are valid and good because I stand behind them, because performers enjoy presenting them, and because audiences enjoy hearing them.

While you didn’t really address any of my points in your response, this idea seems to be at the center of it: composers who are good enough should get a publisher (*snap*, get one, just like that), and those that aren’t good enough, well, self-publishing is a reasonable alternative whose relative obscurity won’t get in the way of works that have been vetted by the sales department of X Publishing.

There are a lot of composers who are very successful, and who self-publish their works. Most notably, of course, is Jennifer Higdon, who I think it’s safe to say is good enough to get a publisher if she wanted. And she has some pretty interesting things to say on the nature of publishing and self-publishing at the NewMusicBox. That a composer as successful and respected as Ms. Higdon should consider the idea of giving her rights to a legacy publisher to be “absurd”, I think is very telling.

Meanwhile, I’m making sales this week and pocketing 92% of the cover price (these are digital sales). That’s a royalty rate that no publisher could ever offer. And while my score sales aren’t going to be paying my rent (yet), I’ve covered my web hosting fees for the month (read: I’ve recouped my marketing expenses). I made those sales the way that composers have been making sales for ages: one person heard me perform one of my own song cycles with the American Opera Projects recently, and the other is filling out a series of recitals and found me by Googling a phrase that is particularly pertinent to me and my music.

And unlike with a legacy publisher, I’m creating a personal relationship with both – I’m thankful for their support and for the fact that they enjoy my music; and in creating this relationship, I’m hopefully paving the way for new collaborations or commissions or score sales. With a legacy publisher, there’s a monolithic wall between the composer and the score buyer that discourages such a personal connection. Had either person I mentioned bought my music through a legacy publisher, I wouldn’t know it, they wouldn’t know me, and there would be no way to know that there are already plans to perform those song cycles in various parts of the country.

One final point, and then I’ll stop typing for now.

Author Kristine Kathryn Rusch (www.kriswrites.com) has been making some great arguments in favor of self-publishing for writers (as have Dean Wesley Smith and Joe Konrath, whose blogs I encourage everyone to check out), and while there are some qualitative and quantitative differences between the book publishing world and the concert music publishing world, certain tenets hold true across the board. I’m not completely against legacy publishing, but I don’t think it’s a very good *business* decision at this point in time. (As I said before, I’m much more interested distribution at this point, which doesn’t require a publisher.) And that’s the heart of my argument – every decision a composer makes regarding her scores and their uses should be sound business decisions. I’m not speaking of artistic choices, which are entirely separate – it’s after the artistic choices have been made, we must be savvy in the way we approach our careers. So I’ll end with a quote from Ms. Rusch’s blog, substituting “Composer” for “Writer”:

Composers Are Responsible For Their Own Careers.
Composers Are Professionals.
Composers Are In Business, And Should Behave Like Business People.

As always, thoughts and responses are welcome in the comments section!

Pricing: A Practical Approach

This post originally appeared on the NewMusicShelf blog on June 10, 2011.

In an effort to make pricing my scores easier and less subjective, I’ve been tinkering with a series of formulas to tell me what I should charge, and I think I’ve come up with some good stuff.

However, before I get into the math of it, I want to quickly paraphrase my post Pricing: The Goldilocks Zone where I talk about my philosophy on setting prices. Until now, I’ve set mine by asking myself two questions: 1) “If I were buying an identical score by another composer, what price would be most attractive to me?” and 2) “Is that price something I’m willing to accept for my own work?” It’s worked well so far, but is hardly objective.

I actually designed a whole Excel spreadsheet that does double duty as my catalog and a price calculator. All I have to do is plug in what it costs to print one copy of the score, and it spits out what I should charge for print scores on one sheet, and what I should charge for electronic scores on another. It took me an afternoon to create, and is a lot of fun to play with.

Let’s walk through an example of how the formulas work with a bit of math. For this example, I’m going to assume that the score costs exactly $5.00 to print and bind, and that there are no other costs associated with the production of the score itself. Your score will cost more or less depending on the number of pages and the quality of the materials. But for right now, we’re going to take $5.00 as our starting point.

The other assumption we’re going to make, aside from the starting cost, is that we want our works picked up by distributors like J.W. Pepper or Theodore Front; so we’re going to figure in the discount that distributors take, which is typically around 40%.

Print Scores
So we start out with our $5.00 cost to produce the score.

Step one is just about the only subjective step in the print pricing process: figuring out our base profit per score. This can be a set dollar amount, or a percentage of the sale. I prefer the latter because it’s flexible, and it helps keep the final price more reasonable.

For myself, I’ve chosen a 20% base profit*. Meaning: 20% of the price after adding the base profit to the printing costs. Not 20% of the printing price.

So: “Cost with Profit” = $5.00 + (20% of “Cost with Profit”).

The easiest way to figure this is to subtract your percentage from 100% and turn it into a decimal: 100% – 20% = 80% or 0.8.

Then divide your cost by this new number: $5.00 / 0.8 = $6.25.

I may have lost some of you already. Let’s do it backward to show you what just happened. 20% of $6.25 is $1.25. So we have our $5.00 printing cost plus our 20% ($1.25) base profit.

Cost with Profit = $5.00 + (20% of Cost with Profit)
$6.25 = $5.00 + $1.25

Good? Good.

Step two: we add the distributor discount, which is typically 40%. We add this into our price because we have to price our scores the same as the distributor sells them. The discount they take is their incentive for buying scores from you, as well as their profit. Why is theirs twice what mine is? Because they have a staff and I don’t.

So, we do the same trick to calculate the distributor price that we used to get our Cost with Profit.

$6.25 / (100% – 40%) = $10.42

C w/ P & Disc = $6.25 + (40% of C w/ P & Disc)
$10.42 = $6.25 + $4.17

One final step, just for the sake of aesthetics. Let’s round up to $10.50. It’s just a prettier number.

So there’s your print price for a score that cost you $5.00 to print.

If a distributor wants to sell this score, you sell it to them for $6.25 per copy (or $6.30 since we rounded up, and that counts for something), and they sell it for $10.50. Of the $6.30 you got from the distributor, you paid $5.00 to print it, and end up earning $1.30 – your Base Profit!

To sell it on your site, you sell it for $10.50 and make $5.50 after your production costs. Awesome.

A quick recap:

Printing Costs: $5.00
Base Profit (20% of Price net of distributor discount, or 12% of Gross) $1.25
Discount (40% of Gross) $4.17
Final Gross $10.42
Rounded Gross $10.50

* The base profit here is not 20% of the gross price, but 20% of the price net of the distributor’s discount. I figure it this way to keep the price more affordable. See “Another Approach” below for an example of how calculating the base profit against gross affects the gross price.

Electronic Scores
So let’s start with our final Print price of $10.50 and go from there to find the price for our Electronic score.

We have a few options of how we want to deal with this. You’re entitled to keep the same price, but I don’t particularly approve of that since you have no printing/binding costs for an electronic score.

I prefer to just subtract out the printing costs, so $10.50 – $5.00, leaving you with $5.50, which is pretty damned good for a product with no overhead costs.

Some other composers take half of the print price, which in this case would be $5.25. A negligible difference between this and what I do.

Assuming you sell the electronic scores on your own site and use PayPal as your payment solution, you’re going to pay $0.46 on $5.50, leaving you with a net of $5.04.

Or you can set your price taking the PayPal fee into account. If you want to net $5.50, you can set your price at $6.00 and net $5.53.

If you were to use NewMusicShelf as your distributor, the fee is 14% of the gross price plus the PayPal transaction fee (2.9% + $0.30). So if you want to end up with $5.50, you’ll set your price at $7.00 to account for the $0.98 NewMusicShelf distribution fee and $0.50 PayPal transaction fee, and you’ll net $5.52. (To start at $5.50, you’ll have a total of $1.23 in fees and net $4.27.)

Obviously there are lots of choices here, and a lot of wiggle room. There’s no overhead to take into account, although there are various transaction fees that you might pay, depending on where and how you sell your electronic scores.

Another approach
Another approach that can be taken is to calculate the base profit and the distributor discount together. This changes the price because the profit in the example above is not calculated against the final gross price. Instead, it is only calculated taking into account the overhead costs. Calculating the profit and discount together looks like this:

Gross = $5.00 + (20% Gross) + (40% Gross)

Or

Gross = $5.00 + (60% Gross)

$5.00 / 0.4 = Gross

$5.00 / 0.4 = $12.50

Cost $5.00
Base Profit $2.50
Distributor Discount $5.00
Gross Price $12.50

I prefer not to do it this way because it actually raises the price more than I’m comfortable with. Because I don’t expect to have a print distributor for a while, and because I anticipate selling the bulk of my scores through my own website anyway once I do get one, I’m content for the time being to have a profit of $1.25 on this example score sold through a distributor. After all, I’ll be making a $5.50 profit when it’s sold on my own website.