As The World Tunes
What Is Distribution?
by Steve Bussey
GeoSynchronous Records
Did you ever wonder how a compact disc or cassette tape gets on the shelf in a record store? Does your band have a CD or tape you want to sell in a store? What can you do and what is involved? Well, hold on to your wallet and get ready for the wild and dizzy ride of record distribution!
Distribution is the process of getting a record into the record store. Distribution includes warehousing, a sales force, inventory control, shipping, billing, and all the other things involved in wholesaling a product to individual stores and chains. It is a lot of hard work, and it is very difficult for a local band or small independent record label to get a distribution deal.
A few definitions are necessary at this point. A major distributor is a huge organization owned by major label. There are six of these in the USA, including BMG, CEMA, MCA, Polygram, Sony Music, and WEA. These companies distribute the major label releases of big stars that you hear on the radio and that sell millions. They have no interest what so ever in a local band's release.
An independent distributor handles records by independent record labels, which means anyone not associated with the majors. Except it really is not everyone, because few of them are willing to distribute an individual band or small label. They do not want to take up space in their warehouse, and spend time entering a new release in their system unless they feel certain they can sell a lot of them.
A one stop is similar to a distributor. They buy from major and independent distributors, and then sell to stores that can't buy direct from a distributor. This enables stores to buy records released from many different distributors all at "one stop". It is easier for the small store to meet minimum orders and only have one account to pay instead of dozens. They usually stock the best sellers, and know where to get the occasional sellers, too. One stops rarely buy from a local band, but they will if people start asking for it.
When a new record is released, the record company will send out free promotional copies to its distributors' sales force. They will also send along a "one sheet", which is a one page description of the release, along with the barcode number and ordering information, formats available (CD, cassette, etc.), anticipated advertising, radio airplay, and other things to entice the store to stock the release. The sales force then gives the one sheets and free records to the stores and solicits for sales. The record company at this point will have sent out a thousand or more free CDs and one sheets, and hopefully orders will then start to come in.
The distributor takes orders from the stores and issues purchase orders to the label for the release. The record company ships the product and bills the distributor for the product plus shipping. The distributor ships the record to the stores and one stops, which they put on the retail shelves. The store can return the product if it doesn't sell, and the distributor can return it to the label for a full refund. The distributor will track shipment and payment of their retail accounts, and will pay the label for all product that sells, although it may be a year or more before the checks start coming in!
All of this assumes a buzz and demand for the product created by the band, label, manager, publisher, agent, and others involved. Being in the store will not necessarily sell the record. A friend of mine at another indie label told of a CD that shipped 1000, only to have 999 returned a year later! The distributor usually does little towards promoting the release, other than show the stores the product, along with favorable reviews, tour schedules, and other news about the band that the label provides. But with the current 800 to 1000 new releases each month, the competition is fierce and stores mostly focus on product with a proven track record, or that customers are requesting and ordering. It can be very frustrating for a band to hear fans complain that they could not find their CD in their favorite store, but this is the first step in the right direction: you need people walking into the store and asking for the CD before the store will stock it!
The distributor will also assist you in advertising in the stores, at the label's (your) expense. Those advertisements you see in the newspapers and magazines are paid for by the record labels involved. Even the in-store displays, listening booths, and special pricing are charged to the record company. Renting the wall space of each of several hundred stores at a large nationwide chain can cost up to $14,000 per week! This sells records for some releases, and just wastes money on others. It depends on what other things are going on.
GeoSynchronous Records (my label) was fortunate in negotiating distribution of our records by Les Dudek, Mike Pachelli, Bong Water Taffy, and Big Red & The Bus with three independent distributors, MS Distributing in Chicago, the oldest independent distributor in the USA; Select-O-Hits in Memphis, started by Sam Phillips (the man who discovered Elvis Presley), and Creative Musicians Coalition in Peoria, an aggressive Internet/mail order marketing company. We also have distribution in Romania and Germany, as well as export sales to other countries thru several one stops.
This is just a brief description of record distribution in the USA. And yes, it is pessimistic about a local band getting distribution. It can be done, and try it if you wish, but the best thing to do is to work on creating a buzz for your band, selling the records yourself, and letting a distributor or label find you. And when you start selling a respectable quantity, they will look for you. There are many other options to sell records as well as changes on the horizon, including direct downloading of music over the Internet, mail order and telephone ordering systems, consignment sales (be your own distributor), sales at gigs, and non-traditional retail outlets to mention just a few. Good luck!
About the author: Steve Bussey is a singer/songwriter/guitarist and is currently the owner and general manager of GeoSynchronous Records (http://www.pan.com/geosync, Listening Line 800 235 9193, ask for a free catalog), an indie label handling artists such as Les Dudek, Mike Pachelli, Bong Water Taffy, and Big Red & The Bus. Prior to this, Steve earned Bachelor's and Master's degrees in Electrical Engineering and Acoustics from Georgia Tech, designed sound equipment and guitar amps for Fender, and supervised design of communication systems for the Space Shuttle at Kennedy Space Center.
