HOW TO CALCULATE PRICING YOUR MUSIC CORRECTLY: PART 1
In any industry, businesses have to price their goods. Many choose to follow the industry standards of pricing by following the supply and demand market. As the creators of the music industry, It is hard to value on your products. However, many already have but you don’t have to abide by this.
Since the music industry has been going through its transition, other components have not been taken into consideration. This is because the old guards created concepts that have become procedural ideals that have been passed down through time. The present state of the old guard’s ideology is in jeopardy. Awaiting, the independent market to pull a rabbit out its hat. The rabbit and the hat is yours now. Change the concepts of pricing and create your own ideologies.
SOB (Standard Order of Business)
What is your Standard Order of Business? What will you accept as payment? Do you have different pay scales for different services? How valuable is your product? This and many other questions should come to mind as you grow and develop in the music industry. Your SOB dictates how you will do business and how others will do business with you.
How do we price our products?
First, you must know what it is you are spending to make those products. These costs are based on the following:
Your time is valuable. It is important to have a record of how much time you have and how you want to charge for it. I addressed in my article Create Your Business Plan To Inspire Future Profits how to calculate the desired income you want for the year or for a project. After you created a goal, let’s calculate your time. This is easily done with HOFA 4U has a free plugin called ProjecTime you can add to your daw that will calculate how much time you spend on a project.
CONTINUED IN ARTICLE - HOW TO CALCULATE PRICING YOUR MUSIC CORRECTLY: 2