Physical music releases

How to Price Vinyl, CDs and Cassettes

Bradley J Simons
Bradley J Simons
4x Juno-nominated producer · founder of Velveteen
The short answer

Price vinyl, CDs, and cassettes from the complete delivered offer: landed inventory, platform and payment fees, pick and pack, packing materials, postage subsidy, replacement and refund reserve, channel discount, taxes or duties the seller absorbs, and campaign allocation. Calculate a price floor for each sales channel, then test buyer value and contribution without hiding shipping inside optimistic margin.

Lead visual

The useful number is net

Revenue

streams, merch, fans, grants

+

Costs

production, ads, team, tax

-

Net

what the project keeps

=

A money-stack image for direct-to-fan, taxes, grants, and revenue planning guides.

Direct-to-fan · Manufacturing

Business model map

Use this for

Separate revenue, margin, cash timing, and ownership before calling something profitable.

Watch for

Top-line income can hide a model that does not leave enough money or time for the artist.

Check

Price, platform fees, fulfillment cost, tax, collaborator splits, and repeat-purchase behavior.

Result

A sharper view of which money path is worth building next.

Part of the Physical music cluster.
10%

current Bandcamp physical-goods share

4-6%

current typical Bandcamp processing range

3channels

direct, show, and wholesale ledgers

1floor

minimum sustainable price per channel

What belongs in the physical-format price floor?

Velveteen full-cost pricing model

Nine inputs before buyer-value testing

Item

Landed usable-unit cost after manufacturing, inbound freight, tax/duties, and preparation.

Replaces the incomplete factory unit line with received inventory cost.

Channel

Platform, payment, marketplace, retailer, distributor, or consignment costs and timing.

Prevents one direct-store margin from being reused for every channel.

Handling

Pick/pack labour, packing materials, inserts, labels, and order-system cost.

Prices the work required to turn stock into an accurate shipment.

Shipping

Buyer charge, seller subsidy, destination/weight variance, tracking, and combined-order rule.

Shows when a simple buyer offer transfers postage risk to the seller.

Exceptions

Defect, replacement, loss, damage, refund, chargeback, and customer-support reserve.

Keeps normal failure costs from appearing as a surprise loss.

Tax

Tax collected, remitted, included, or absorbed, plus duties under the actual selling model.

Separates collected money from revenue the artist can keep.

Campaign

Allocated photography, store setup, advertising, launch materials, and promotion.

Connects product contribution to the cost of creating the demand.

Contribution

Net amount per sold unit after every variable cost, not gross markup.

Creates the amount that can actually recover fixed launch cost.

Value

Edition, packaging, scarcity claim, bundle, experience, and evidence buyers accept the offer.

Tests whether the sustainable floor is also a credible buyer price.

How should one format be stress-tested across channels?

Separate channel ledgers
Add to the modelFailure to avoid
Direct storePlatform/payment fees, packing, postage, support, tax, and returnsCalling item price minus factory cost the margin
Live showPayment fee, tax, transport, venue cut where applicable, and shrinkageTreating cash sales as costless inventory
WholesaleDiscount, outbound freight, minimum, payment timing, returns, and bad debtUsing the direct retail contribution after a retailer discount
BundleEvery component, extra weight, packing time, split shipment, and replacement pathPricing the bundle from the headline value of its parts

Keep item price and shipping visible

A separate shipping charge improves cost visibility but can affect conversion. A bundled or free-shipping offer simplifies the buyer view but transfers variance to the seller. Test the commercial choice without erasing the underlying postage ledger.

turn the chosen channel price into release-level cash and break-even

Which sources support the pricing controls?

Frequently asked questions

How much should an artist charge for vinyl?+

There is no universal price. Calculate the direct-store, show, and wholesale floors from the specific edition's landed inventory and channel costs, then compare the complete offer with what its buyers value. Premium packaging can support a higher price only if the audience wants it; a high retail price does not repair an oversized pressing.

How should CDs and cassettes be priced?+

Use the same full-cost method as vinyl, with format-specific landed cost, packaging, handling, shipping, defects, channel fees, and buyer value. Do not apply one markup percentage to every format. A compact item may cost less to mail, while a small custom run can still have significant setup and per-unit cost.

Should music artists offer free shipping?+

Only as an explicit pricing choice. Free shipping moves the expected postage and part of its variance into item margin or campaign cost. Model destination mix, package weight and dimensions, tracking policy, remote surcharges, international exclusions, combined orders, and replacement exposure before advertising it. Review actual shipping variance after launch.

How do wholesale prices affect physical music margins?+

Wholesale introduces a retailer or distributor discount and may add freight, returns, payment timing, or consignment risk. Build a separate channel ledger rather than subtracting the discount from a direct-sale margin. Set minimum quantities and terms, and confirm that the wholesale contribution still supports production cash, operations, and replacements.

What fees apply to physical music on Bandcamp?+

Bandcamp's current revenue share is 10% on physical goods, with shipping and tax excluded from that fee base. Payment processing is separate and typically 4% to 6%. Treat those as current Bandcamp inputs only, verify the live account and fee page, and model other storefronts or payment methods independently.

Bradley J Simons

About the author

Bradley J Simons

Bradley J Simons is a 4x Juno-nominated producer who makes music as Babbage and founded Velveteen. A former touring musician, he writes about releasing, pitching, and getting paid for music from the artist's side of the desk.

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